By Wolens                                             H.B. No. 2812
         77R959 DWS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to nonsubstantive additions to and corrections in enacted
 1-3     codes, to the nonsubstantive codification or disposition of various
 1-4     laws omitted from enacted codes, and to conforming codifications
 1-5     enacted by the 76th Legislature to other Acts of that legislature.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7                       ARTICLE 1.  GENERAL PROVISIONS
 1-8           SECTION 1.001. This Act is enacted as part of the state's
 1-9     continuing statutory revision program under Chapter 323, Government
1-10     Code.  This Act is a revision for purposes of Section 43, Article
1-11     III, Texas Constitution, and has the purposes of:
1-12                 (1)  codifying without substantive change various
1-13     statutes that were omitted from enacted codes;
1-14                 (2)  conforming codifications enacted by the 76th
1-15     Legislature to other Acts of that legislature that amended the laws
1-16     codified or added new law to subject matter codified;
1-17                 (3)  making necessary corrections to enacted
1-18     codifications; and
1-19                 (4)  renumbering titles, chapters, and sections of
1-20     codes that duplicate title, chapter, or section numbers.
1-21           SECTION 1.002. (a)  The repeal of a statute by this Act does
1-22     not affect an amendment, revision, or reenactment of the statute by
1-23     the 77th Legislature, Regular Session, 2001.  The amendment,
1-24     revision, or reenactment is preserved and given effect as part of
 2-1     the code provision that revised the statute so amended, revised, or
 2-2     reenacted.
 2-3           (b)  If any provision of this Act conflicts with a statute
 2-4     enacted by the 77th Legislature, Regular Session, 2001, the statute
 2-5     controls.
 2-6           SECTION 1.003. (a)  A transition or saving provision of a law
 2-7     codified by this Act applies to the codified law to the same extent
 2-8     as it applied to the original law.
 2-9           (b)  The repeal of a transition or saving provision by this
2-10     Act does not affect the application of the provision to the
2-11     codified law.
2-12           (c)  In this section, "transition provision" includes any
2-13     temporary provision providing for a special situation in the
2-14     transition period between the existing law and the establishment or
2-15     implementation of the new law.
2-16                       ARTICLE 2.  CHANGES RELATING TO
2-17                          BUSINESS & COMMERCE CODE
2-18           SECTION 2.001. (a)  Subchapter E, Chapter 3, Business &
2-19     Commerce Code, is amended to codify Section 1, Chapter 617, Acts of
2-20     the 68th Legislature, Regular Session, 1983 (Article 9022, Vernon's
2-21     Texas Civil Statutes), by adding Section 3.506 to read as follows:
2-22           Sec. 3.506.  PROCESSING FEE BY HOLDER OF DISHONORED CHECK.
2-23     (a)  On return of a check to the holder following dishonor of the
2-24     check by a payor, the holder, the holder's assignee, agent,  or
2-25     representative, or any other person retained by the holder to seek
2-26     collection of the face value of the dishonored check may charge the
2-27     drawer or endorser a reasonable processing fee of not more than
 3-1     $25.
 3-2           (b)  A person may not charge a processing fee to a drawer or
 3-3     endorser under this section if the fee has been collected under
 3-4     Article 102.007(e) or  102.0071, Code of Criminal Procedure.  If a
 3-5     processing fee has been collected under this section and the holder
 3-6     subsequently receives a fee collected under Article 102.007(e) or
 3-7     102.0071, Code of Criminal Procedure, the holder shall immediately
 3-8     refund the fee previously collected from the drawer or endorser.
 3-9           (c)  Notwithstanding any other law, a loan agreement made
3-10     under Chapter 342, Finance Code, may provide that on return of a
3-11     dishonored check given in payment under the agreement, the holder
3-12     may charge the obligor under the agreement the processing fee
3-13     authorized by this section, and the fee may be added to the unpaid
3-14     balance owed under the agreement. Interest may not be charged on
3-15     the fee during the term of the agreement.
3-16           (d)  This section does not affect any right or remedy to
3-17     which the holder of a check may be entitled under any rule, written
3-18     contract, judicial decision, or other statute.
3-19           (b)  Subsection (e), Article 102.007, Code of Criminal
3-20     Procedure, is amended to read as follows:
3-21           (e)  In addition to the collection fee specified in
3-22     Subsection (c) of this article, the county attorney, district
3-23     attorney, or criminal district attorney may collect the fee
3-24     authorized by Section 3.506, Business & Commerce Code [Article
3-25     9022, Vernon's Texas Civil Statutes], for the benefit of the holder
3-26     of a check or its assignee, agent, representative, or any other
3-27     person retained by the holder to seek collection of the check.
 4-1           (c)  Article 102.0071, Code of Criminal Procedure, is amended
 4-2     to read as follows:
 4-3           Art. 102.0071.  JUSTICE COURT DISHONORED CHECK. On conviction
 4-4     in justice court of an offense under Section 32.41, Penal Code, or
 4-5     an offense under Section 31.03 or 31.04, Penal Code, in which it is
 4-6     shown that the defendant committed the offense by issuing or
 4-7     passing a check that was subsequently dishonored, the court may
 4-8     collect from the defendant and pay to the holder of the check the
 4-9     fee permitted by Section 3.506, Business & Commerce Code [Article
4-10     9022, Vernon's Texas Civil Statutes].
4-11           (d)  Section 151.0036(c), Tax Code, is amended to read as
4-12     follows:
4-13           (c)  "Debt collection service" includes the service performed
4-14     for which a fee is collected under Section 3.506, Business &
4-15     Commerce Code [Chapter 617, Acts of the 68th Legislature, Regular
4-16     Session, 1983 (Article 9022, Vernon's Texas Civil Statutes)].  The
4-17     person collecting the check shall add the amount of the tax to the
4-18     fee in accordance with Section 151.052 and shall collect the fee
4-19     from the drawer or endorser of the check.
4-20           (e)  Section 1, Chapter 617, Acts of the 68th Legislature,
4-21     Regular Session, 1983 (Article 9022, Vernon's Texas Civil
4-22     Statutes), is repealed.
4-23           SECTION 2.002. (a)  Subchapter D, Chapter 35, Business &
4-24     Commerce Code, is amended to codify Article 9004, Revised Statutes,
4-25     by adding Section 35.49 to read as follows:
4-26           Sec. 35.49.  SHIPPING ARTICLES WITHOUT INSPECTION.  (a)  A
4-27     person commits an offense if the person:
 5-1                 (1)  exports from this state, or ships for the purpose
 5-2     of exportation to a state other than this state or to a foreign
 5-3     port, an article of commerce that by law of this state is required
 5-4     to be inspected by a public inspector; and
 5-5                 (2)  does not have the article inspected as provided by
 5-6     law.
 5-7           (b)  An offense under this section is a misdemeanor
 5-8     punishable by a fine of not more than $100.
 5-9           (b)  Article 9004, Revised Statutes, is repealed.
5-10                    ARTICLE 3.  CHANGES RELATING TO CODE
5-11                            OF CRIMINAL PROCEDURE
5-12           SECTION 3.001. Article 2.12, Code of Criminal Procedure, as
5-13     amended by Chapters 90, 322, 882, and 974, Acts of the 76th
5-14     Legislature, Regular Session, 1999, is amended to correct
5-15     cross-references and renumber duplicate provisions to read as
5-16     follows:
5-17           Art. 2.12.  WHO ARE PEACE OFFICERS.  The following are peace
5-18     officers:
5-19                 (1)  sheriffs, their deputies, and those reserve
5-20     deputies who hold a permanent peace officer license issued under
5-21     Chapter 1701, Occupations [415, Government] Code;
5-22                 (2)  constables, deputy constables, and those reserve
5-23     deputy constables who hold a permanent peace officer license issued
5-24     under Chapter 1701, Occupations [415, Government] Code;
5-25                 (3)  marshals or police officers of an incorporated
5-26     city, town, or village, and those reserve municipal police officers
5-27     who hold a permanent peace officer license issued under Chapter
 6-1     1701, Occupations [415, Government] Code;
 6-2                 (4)  rangers and officers commissioned by the Public
 6-3     Safety Commission and the Director of the Department of Public
 6-4     Safety;
 6-5                 (5)  investigators of the district attorneys', criminal
 6-6     district attorneys', and county attorneys' offices;
 6-7                 (6)  law enforcement agents of the Texas Alcoholic
 6-8     Beverage Commission;
 6-9                 (7)  each member of an arson investigating unit
6-10     commissioned by a city, a county, or the state;
6-11                 (8)  officers commissioned under  Section 37.081,
6-12     Education Code, or Subchapter E, Chapter 51, Education Code;
6-13                 (9)  officers commissioned by the General Services
6-14     Commission;
6-15                 (10)  law enforcement officers commissioned by the
6-16     Parks and Wildlife Commission;
6-17                 (11)  airport police officers commissioned by a city
6-18     with a population of more than one million[, according to the most
6-19     recent federal census,] that operates an airport that serves
6-20     commercial air carriers;
6-21                 (12)  airport security personnel commissioned as peace
6-22     officers by the governing body of any political subdivision of this
6-23     state, other than a city described by Subdivision (11), that
6-24     operates an airport that serves commercial air carriers;
6-25                 (13)  municipal park and recreational patrolmen and
6-26     security officers;
6-27                 (14)  security officers commissioned as peace officers
 7-1     by the comptroller;
 7-2                 (15)  officers commissioned by a water control and
 7-3     improvement district under Section 49.216, Water Code;
 7-4                 (16)  officers commissioned by a board of trustees
 7-5     under Chapter 54, Transportation Code [341, Acts of the 57th
 7-6     Legislature, Regular Session, 1961 (Article 1187f, Vernon's Texas
 7-7     Civil Statutes)];
 7-8                 (17)  investigators commissioned by the Texas State
 7-9     Board of Medical Examiners;
7-10                 (18)  officers commissioned by the board of managers of
7-11     the Dallas County Hospital District, the Tarrant County Hospital
7-12     District, or the Bexar County Hospital District under Section
7-13     281.057, Health and Safety Code;
7-14                 (19)  county park rangers commissioned under Subchapter
7-15     E, Chapter 351, Local Government Code;
7-16                 (20)  investigators employed by the Texas Racing
7-17     Commission;
7-18                 (21)  officers commissioned under Chapter 554,
7-19     Occupations Code [by the State Board of Pharmacy];
7-20                 (22)  officers commissioned by the governing body of a
7-21     metropolitan rapid transit authority under Section 451.108,
7-22     Transportation Code, or by a regional transportation authority
7-23     under Section 452.110, Transportation Code;
7-24                 (23)  investigators commissioned by the attorney
7-25     general under Section 402.009, Government Code;
7-26                 (24)  security officers and investigators commissioned
7-27     as peace officers under Chapter 466, Government Code;
 8-1                 (25)  an officer employed by the Texas Department of
 8-2     Health under Section 431.2471, Health and Safety Code;
 8-3                 (26)  officers appointed by an appellate court under
 8-4     Subchapter F, Chapter 53, Government Code;
 8-5                 (27)  officers commissioned by the state fire marshal
 8-6     under Chapter 417, Government Code;
 8-7                 (28)  an investigator commissioned by the commissioner
 8-8     of insurance under Article 1.10D, Insurance Code;
 8-9                 (29)  apprehension specialists commissioned by the
8-10     Texas Youth Commission as officers under Section 61.0931, Human
8-11     Resources Code; [and]
8-12                 (30)  officers appointed by the executive director of
8-13     the Texas Department of Criminal Justice under Section 493.019,
8-14     Government Code; [.]
8-15                 (31) [(30)]  investigators commissioned by the
8-16     Commission on Law Enforcement Officer Standards and Education under
8-17     Section 1701.160, Occupations [415.016, Government] Code; and [.]
8-18                 (32)  commission [(30) board] investigators
8-19     commissioned by the Texas Commission on Private Security under
8-20     Section 1702.061(f), Occupations Code [10(f), Private Investigators
8-21     and Private Security Agencies Act (Article 4413(29bb), Vernon's
8-22     Texas Civil Statutes)].
8-23           SECTION 3.002.  Article 45.051, Code of Criminal Procedure
8-24     (formerly Article 45.54, Code of Criminal Procedure, redesignated
8-25     as Article 45.051 by Chapter 1545, Acts of the 76th Legislature,
8-26     Regular Session, 1999), as amended by Chapters 532, 1387, and 1545,
8-27     Acts of the 76th Legislature, Regular Session, 1999, is reenacted
 9-1     to read as follows:
 9-2           Art. 45.051.  SUSPENSION OF SENTENCE AND DEFERRAL OF FINAL
 9-3     DISPOSITION.  (a)  On a plea of guilty or nolo contendere by a
 9-4     defendant or on a finding of guilt in a misdemeanor case punishable
 9-5     by fine only and payment of all court costs, the justice may defer
 9-6     further proceedings without entering an adjudication of guilt and
 9-7     place the defendant on probation for a period not to exceed 180
 9-8     days.
 9-9           (b)  During the deferral period, the justice may require the
9-10     defendant to:
9-11                 (1)  post a bond in the amount of the fine assessed to
9-12     secure payment of the fine;
9-13                 (2)  pay restitution to the victim of the offense in an
9-14     amount not to exceed the fine assessed;
9-15                 (3)  submit to professional counseling;
9-16                 (4)  submit to diagnostic testing for alcohol or a
9-17     controlled substance or drug;
9-18                 (5)  submit to a psychosocial assessment;
9-19                 (6)  participate in an alcohol or drug  abuse treatment
9-20     or education program;
9-21                 (7)  pay the costs of any diagnostic testing,
9-22     psychosocial assessment, or participation in a treatment or
9-23     education program either directly or through the court as court
9-24     costs; and
9-25                 (8)  comply with any other reasonable condition.
9-26           (c)  At the conclusion of the deferral period, if the
9-27     defendant presents satisfactory evidence that he has complied with
 10-1    the requirements imposed, the justice shall dismiss the complaint,
 10-2    and it shall be clearly noted in the docket that the complaint is
 10-3    dismissed and that there is not a final conviction.  Otherwise, the
 10-4    justice may proceed with an adjudication of guilt.  After an
 10-5    adjudication of guilt, the justice may reduce the fine assessed or
 10-6    may then impose the fine assessed, less any portion of the assessed
 10-7    fine that has been paid.  If the complaint is dismissed, a special
 10-8    expense not to exceed the amount of the fine assessed may be
 10-9    imposed.
10-10          (d)  If at the conclusion of the deferral period the
10-11    defendant does not present satisfactory evidence that the defendant
10-12    complied with the requirements imposed, the justice may impose the
10-13    fine assessed or impose a lesser fine.  The imposition of the fine
10-14    or lesser fine constitutes a final conviction of the defendant.
10-15          (e)  Records relating to a complaint dismissed as provided by
10-16    this article may be expunged under Article 55.01 of this code.  If
10-17    a complaint is dismissed under this article, there is not a final
10-18    conviction and the complaint may not be used against the person for
10-19    any purpose.
10-20          SECTION 3.0021.  (a)  Article 45.0511, Code of Criminal
10-21    Procedure, as added by Chapter 1545, Acts of the 76th Legislature,
10-22    Regular Session, 1999, is reenacted and amended to read as follows:
10-23          Art. 45.0511.  DEFERRED DISPOSITION PROCEDURES APPLICABLE TO
10-24    TRAFFIC OFFENSES.  (a)  This article applies to an alleged offense
10-25    involving the operation of a motor vehicle other than a commercial
10-26    motor vehicle, as defined by Section 522.003, Transportation Code,
10-27    and supplements Article 45.051.
 11-1          (b)  During the deferral period under Article 45.051, the
 11-2    justice:
 11-3                (1)  shall require the defendant to successfully
 11-4    complete a driving safety course approved by the Texas Education
 11-5    Agency if the defendant elects deferred disposition and the
 11-6    defendant has not completed an approved driving safety course or
 11-7    motorcycle operator training course, as appropriate, within the
 11-8    preceding 12 months; and
 11-9                (2)  may require the defendant to successfully complete
11-10    a driving safety course approved by the Texas Education Agency if
11-11    the defendant has completed an approved driving safety course
11-12    within the preceding 12 months.
11-13          (c)  Subsection (b)(1) applies only if:
11-14                (1)  the person enters a plea in person or in writing
11-15    of no contest or guilty and, before the answer date on the notice
11-16    to appear:
11-17                      (A)  presents in person to the court an oral or
11-18    written request to take a course; or
11-19                      (B)  sends to the court by certified mail, return
11-20    receipt requested, postmarked on or before the answer date on the
11-21    notice to appear, a written request to take a course;
11-22                (2)  the court enters judgment on the person's plea of
11-23    no contest or guilty at the time the plea is made but defers
11-24    imposition of the judgment for 180 days;
11-25                (3)  the person has a Texas driver's license or permit;
11-26                (4)  the person is charged with an offense to which
11-27    this article applies, other than speeding 25 miles per hour or more
 12-1    over the posted speed limit;
 12-2                (5)  the person provides evidence of financial
 12-3    responsibility as required by Chapter 601, Transportation Code;
 12-4                (6)  the defendant's driving record as maintained by
 12-5    the Texas Department of Public Safety shows the defendant has not
 12-6    completed an approved driving safety course or motorcycle operator
 12-7    training course, as appropriate, within the 12 months preceding the
 12-8    date of the offense; and
 12-9                (7)  the defendant files an affidavit with the court
12-10    stating that the person is not taking a course under this section
12-11    and has not completed a course that is not shown on the person's
12-12    driving record within the 12 months preceding the date of the
12-13    offense.
12-14          (d)  Notwithstanding Subsection (c)(1), on a written motion
12-15    submitted to the court before the final disposition of the case,
12-16    the court may grant a request to take a driving safety course or a
12-17    motorcycle operator training course under this article.
12-18          (e)  A request to take a driving safety course made at or
12-19    before the time and at the place at which a person is required to
12-20    appear in court is an appearance in compliance with the person's
12-21    promise to appear.
12-22          (f)  The court may require a person requesting a driving
12-23    safety course to pay a fee set by the court at an amount of not
12-24    more than $10, including any other fee authorized by statute or
12-25    municipal ordinance, to cover the cost of administering this
12-26    article.
12-27          (g)  A person who requests but does not take a course is not
 13-1    entitled to a refund of the fee.
 13-2          (h)  Fees collected by a municipal court shall be deposited
 13-3    in the municipal treasury.  Fees collected by another court shall
 13-4    be deposited in the county treasury of the county in which the
 13-5    court is located.
 13-6          (i)  If a person requesting a driving safety course fails to
 13-7    furnish evidence of the successful completion of the course to the
 13-8    court, the court shall:
 13-9                (1)  notify the person in writing, mailed to the
13-10    address appearing on the notice to appear, of that failure; and
13-11                (2)  require the person to appear at the time and place
13-12    stated in the notice to show cause why the evidence was not timely
13-13    submitted to the court.
13-14          (j)  A person who fails to appear at the time and place
13-15    stated in the notice commits a misdemeanor punishable as provided
13-16    by Section 543.009, Transportation Code.
13-17          (k)  On a person's showing of good cause for failure to
13-18    furnish evidence to the court, the court may allow an extension of
13-19    time during which the person may present a uniform certificate of
13-20    course completion as evidence that the person successfully
13-21    completed the driving safety course.
13-22          (l)  When a person complies with Subsection (b) and a uniform
13-23    certificate of course completion is accepted by the court, the
13-24    court shall:
13-25                (1)  remove the judgment and dismiss the charge;
13-26                (2)  report the fact that the person successfully
13-27    completed a driving safety course and the date of completion to the
 14-1    Texas Department of Public Safety for inclusion in the person's
 14-2    driving record; and
 14-3                (3)  state in this report whether the course was taken
 14-4    under the procedure provided by this article to provide information
 14-5    necessary to determine eligibility to take a subsequent course
 14-6    under Subsection (b).
 14-7          (m)  The court may dismiss only one charge for each
 14-8    completion of a course.
 14-9          (n)  A charge that is dismissed under this article may not be
14-10    part of a person's driving record or used for any purpose.
14-11          (o)  An insurer delivering or issuing for delivery a motor
14-12    vehicle insurance policy in this state may not cancel or increase
14-13    the premium charged an insured under the policy because the insured
14-14    completed a driving safety course or had a charge dismissed under
14-15    this article.
14-16          (p)  The court shall advise a person charged with a
14-17    misdemeanor under Subtitle C, Title 7, Transportation Code,
14-18    committed while operating a motor vehicle of the person's right
14-19    under this article to successfully complete a driving safety course
14-20    or, if the offense was committed while operating a motorcycle, a
14-21    motorcycle operator training course.  The right to complete a
14-22    course does not apply to a person charged with a violation of
14-23    Section 545.066, 545.401, 545.421, 550.022, or 550.023,
14-24    Transportation Code, or serious traffic violation as defined by
14-25    Section 522.003, Transportation Code.
14-26          (q)  Nothing in this article shall prevent a court from
14-27    assessing a special expense for deferred disposition in the same
 15-1    manner as provided by Article 45.051.  For a deferred disposition
 15-2    under Subsection (b)(1), the court may only collect a fee of not
 15-3    more than $10 in addition to any applicable court cost.
 15-4          (b)  Article 45.541, Code of Criminal Procedure, as added by
 15-5    Chapter 1387, Acts of the 76th Legislature, Regular Session, 1999,
 15-6    is repealed.
 15-7          SECTION 3.003. Article 62.03(f), Code of Criminal Procedure,
 15-8    as amended by Chapters 1415 and 1557, Acts of the 76th Legislature,
 15-9    Regular Session, 1999, is amended to properly number subdivisions
15-10    to read as follows:
15-11          (f)  The local law enforcement authority shall include in the
15-12    notice by publication in a newspaper the following information
15-13    only:
15-14                (1)  the person's full name, age, and gender;
15-15                (2)  a brief description of the offense for which the
15-16    person is subject to registration;
15-17                (3)  the municipality, numeric street address or
15-18    physical address, if a numeric street address is not available, and
15-19    zip code number where the person intends to reside; [and]
15-20                (4)  either a recent photograph of the person or the
15-21    Internet address of a website on which the person's photograph is
15-22    accessible free of charge; and [.]
15-23                (5) [(4)]  the person's numeric risk level assigned
15-24    under this chapter and the guidelines used to determine a person's
15-25    risk level generally.
15-26          SECTION 3.004. Article 62.04(g), Code of Criminal Procedure,
15-27    as amended by Chapters 1415 and 1557, Acts of the 76th Legislature,
 16-1    Regular Session, 1999, is amended to properly number subdivisions
 16-2    to read as follows:
 16-3          (g)  The local law enforcement authority shall include in the
 16-4    notice by publication in a newspaper the following information
 16-5    only:
 16-6                (1)  the person's full name, age, and gender;
 16-7                (2)  a brief description of the offense for which the
 16-8    person is subject to registration;
 16-9                (3)  the municipality, numeric street address or
16-10    physical address, if a numeric street address is not available, and
16-11    zip code number where the person intends to reside; [and]
16-12                (4)  either a recent photograph of the person or the
16-13    Internet address of a website on which the person's photograph is
16-14    accessible free of charge; and [.]
16-15                (5) [(4)]  the person's numeric risk level assigned
16-16    under this chapter and the guidelines used to determine a person's
16-17    risk level generally.
16-18          SECTION 3.005. Article 63.009(g), Code of Criminal Procedure,
16-19    is amended to conform to Chapter 685, Acts of the 76th Legislature,
16-20    Regular Session, 1999, to read as follows:
16-21          (g)  On determining the location of a child under Subsection
16-22    (a)(1) or (2), other than a child who is subject to the continuing
16-23    jurisdiction of a district court, an officer shall [may] take
16-24    possession of the child and shall deliver or arrange for the
16-25    delivery of the child to a person entitled to possession of the
16-26    child.  If the person entitled to possession of the child is not
16-27    immediately available, the law enforcement officer shall deliver
 17-1    the child to the Department of Protective and Regulatory Services.
 17-2          SECTION 3.006. (a)  Chapter 103, Code of Criminal Procedure,
 17-3    is amended to codify Article 6701d-28, Revised Statutes, by adding
 17-4    Article 103.013 to read as follows:
 17-5          Art. 103.013.  COLLECTION FEES FOR DELINQUENT TRAFFIC FINES.
 17-6    (a)  In this article:
 17-7                (1)  "Delinquent fine" means a fine that:
 17-8                      (A)  was imposed by judgment of a court; and
 17-9                      (B)  has not been paid before the 31st day after
17-10    the date on which the court:
17-11                            (i)  found that the fine was due and owed
17-12    to a municipality or county; and
17-13                            (ii)  ordered the payment.
17-14                (2)  "Motor vehicle misdemeanor" means a misdemeanor
17-15    violation of a statute or municipal ordinance that regulates:
17-16                      (A)  the parking or stopping of a motor vehicle;
17-17                      (B)  a driver's conduct or condition while
17-18    operating a motor vehicle; or
17-19                      (C)  the condition of a motor vehicle while it is
17-20    being operated.
17-21          (b)  A court may collect or authorize a fee related to the
17-22    collection of a delinquent fine for a motor vehicle misdemeanor
17-23    from a person who owes the fine, in an amount equal to the lesser
17-24    of:
17-25                (1)  20 percent of the amount of the fine; or
17-26                (2)  $50.
17-27          (c)  This article does not apply to a delinquent fine for
 18-1    parking or stopping a motor vehicle in a municipality that:
 18-2                (1)  has disannexed territory previously annexed for
 18-3    limited purposes; and
 18-4                (2)  employs the practice of immobilization of motor
 18-5    vehicles with a mechanical device, unless each parking meter in the
 18-6    municipality accepts any coin minted by the United States that has
 18-7    a value between 5 cents and 25 cents.
 18-8          (d)  This article does not prohibit a court, municipality, or
 18-9    county from using any other lawful means to enforce a judgment.
18-10          (b)  Article 6701d-28, Revised Statutes, is repealed.
18-11                      ARTICLE 4.  CHANGES RELATING TO
18-12                              EDUCATION CODE
18-13          SECTION 4.001. (a)  Section 7.055(b), Education Code, is
18-14    amended to properly place a provision amended by Chapter 1482, Acts
18-15    of the 76th Legislature, Regular Session, 1999, by adding
18-16    Subdivision (41) to read as follows:
18-17                (41)  The commissioner shall adopt rules relating to
18-18    extracurricular activities under Section 33.081 and approve or
18-19    disapprove University Interscholastic League rules and procedures
18-20    under Section 33.083.
18-21          (b)  Section 7.102(c)(27), Education Code, is repealed.
18-22          SECTION 4.002. Section 7.111(a), Education Code, as amended
18-23    by Chapters 76 and 1282, Acts of the 76th Legislature, Regular
18-24    Session, 1999, is reenacted to read as follows:
18-25          (a)  The board shall provide for the administration of high
18-26    school equivalency examinations.  A person who does not have a high
18-27    school diploma may take the examination in accordance with rules
 19-1    adopted by the board if the person is:
 19-2                (1)  over 17 years of age;
 19-3                (2)  16 years of age or older and:
 19-4                      (A)  is enrolled in a Job Corps training program
 19-5    under the Job Training Partnership Act (29 U.S.C. Section 1501 et
 19-6    seq.), and its subsequent amendments; or
 19-7                      (B)  a public agency providing supervision of the
 19-8    person or having custody of the person under a court order
 19-9    recommends that the person take the examination; or
19-10                (3)  required to take the examination under a justice
19-11    or municipal court order issued under Section 54.021(d)(1)(B),
19-12    Family Code.
19-13          SECTION 4.003. Section 11.253(d), Education Code, as amended
19-14    by Chapters 510, 1202, and 1365, Acts of the 76th Legislature,
19-15    Regular Session, 1999, is amended to properly number subdivisions
19-16    to read as follows:
19-17          (d)  Each campus improvement plan must:
19-18                (1)  assess the academic achievement for each student
19-19    in the school using the academic excellence indicator system as
19-20    described by Section 39.051;
19-21                (2)  set the campus performance objectives based on the
19-22    academic excellence indicator system, including objectives for
19-23    special needs populations, including students in special education
19-24    programs under Subchapter A, Chapter 29;
19-25                (3)  identify how the campus goals will be met for each
19-26    student;
19-27                (4)  determine the resources needed to implement the
 20-1    plan;
 20-2                (5)  identify staff needed to implement the plan;
 20-3                (6)  set timelines for reaching the goals;
 20-4                (7)  measure progress toward the performance objectives
 20-5    periodically to ensure that the plan is resulting in academic
 20-6    improvement; [and]
 20-7                (8)  include goals and methods for violence prevention
 20-8    and intervention on campus; and [.]
 20-9                (9) [(8)]  provide for a program to encourage parental
20-10    involvement at the campus.
20-11          SECTION 4.004. Sections 38.001-38.010, Education Code,
20-12    Section 38.011, Education Code, as added by Chapter 1086, Acts of
20-13    the 76th Legislature, Regular Session, 1999, and Section 38.012,
20-14    Education Code, are redesignated as Subchapter A, Chapter 38,
20-15    Education Code, and a heading is added to that subchapter to read
20-16    as follows:
20-17                     SUBCHAPTER A.  GENERAL PROVISIONS
20-18          SECTION 4.005. Section 38.011, Education Code, as added by
20-19    Chapter 1418, Acts of the 76th Legislature, Regular Session, 1999,
20-20    is redesignated as Subchapter B, Chapter 38, Education Code, and
20-21    amended to read as follows:
20-22                SUBCHAPTER B.  SCHOOL-BASED HEALTH CENTERS
20-23          Sec. 38.051 [38.011].  ESTABLISHMENT OF SCHOOL-BASED HEALTH
20-24    CENTERS. (a)  A school district in this state may, if the district
20-25    identifies the need, design a model in accordance with this
20-26    subchapter [section] for the delivery of cooperative health care
20-27    programs for students and their families and may compete for grants
 21-1    awarded under this subchapter [section].  The model may provide for
 21-2    the delivery of conventional health services and disease prevention
 21-3    of emerging health threats that are specific to the district.
 21-4          (b)  On the recommendation of an advisory council established
 21-5    under Section 38.058 [Subsection (g)], a school district may
 21-6    establish a school-based health center at one or more campuses in
 21-7    the district to meet the health care needs of students and their
 21-8    families.
 21-9          Sec. 38.052.  CONTRACT FOR SERVICES.  A district may contract
21-10    with a person to provide services at a school-based health center.
21-11          Sec. 38.053.  PARENTAL CONSENT REQUIRED. (a) [(c)]  A
21-12    school-based health center may provide services to a student only
21-13    if the district or the provider with whom the district contracts
21-14    obtains the written consent of the student's parent or[,]
21-15    guardian[,] or another [other] person having legal control of the
21-16    student on a consent form developed by the district or provider.
21-17    The student's parent or[,] guardian[,] or another [other] person
21-18    having legal control of the student may give consent for a student
21-19    to receive ongoing services or may limit consent to one or more
21-20    services provided on a single occasion.
21-21          (b)  The consent form must list every service the
21-22    school-based health center delivers in a format that complies with
21-23    all applicable state and federal laws and allows a person to
21-24    consent to one or more categories of services.
21-25          Sec. 38.054.  CATEGORIES OF SERVICES.  The permissible
21-26    categories of services are:
21-27                (1)  family and home support;
 22-1                (2)  health care, including immunizations;
 22-2                (3)  dental health care;
 22-3                (4)  health education; and
 22-4                (5)  preventive health strategies.
 22-5          Sec. 38.055.  USE OF GRANT FUNDS FOR REPRODUCTIVE SERVICES
 22-6    PROHIBITED.  [(d)]  Reproductive services, counseling, or referrals
 22-7    may not be provided through a school-based health center using
 22-8    grant funds awarded under this subchapter [section].
 22-9          Sec. 38.056.  PROVISION OF CERTAIN SERVICES BY LICENSED
22-10    HEALTH CARE PROVIDER REQUIRED.  Any service provided using grant
22-11    funds awarded under this subchapter must be provided by an
22-12    appropriate professional who is properly licensed, certified, or
22-13    otherwise authorized under state law to provide the service.
22-14          Sec. 38.057.  IDENTIFICATION OF HEALTH-RELATED CONCERNS.
22-15    (a) [(e)]  The staff of a school-based health center and the person
22-16    whose consent is obtained under Section 38.053 [Subsection (c)]
22-17    shall jointly identify any health-related concerns of a student
22-18    that may be interfering with the student's well-being or ability to
22-19    succeed in school.
22-20          (b) [(f)]  If it is determined that a student is in need of a
22-21    referral for mental health services, the staff of the center shall
22-22    notify the person whose consent is required under Section 38.053
22-23    [Subsection (c)] verbally and in writing of the basis for the
22-24    referral.  The referral may not be provided unless the person
22-25    provides written consent for the type of service to be provided and
22-26    provides specific written consent for each treatment occasion.
22-27          Sec. 38.058.  HEALTH EDUCATION AND HEALTH CARE ADVISORY
 23-1    COUNCIL. (a) [(g)]  The board of trustees of a school district may
 23-2    establish and appoint members to a local health education and
 23-3    health care advisory council to make recommendations to the
 23-4    district on the establishment of school-based health centers and to
 23-5    assist the district in ensuring that local community values are
 23-6    reflected in the operation of each center and in the provision of
 23-7    health education.
 23-8          (b)  A majority of the members of the council must be parents
 23-9    of students enrolled in the district.  In addition to the
23-10    appointees who are parents of students, the board of trustees shall
23-11    also appoint at least one person from each of the following groups:
23-12                (1)  teachers;
23-13                (2)  school administrators;
23-14                (3)  licensed health care professionals;
23-15                (4)  the clergy;
23-16                (5)  law enforcement;
23-17                (6)  the business community;
23-18                (7)  senior citizens; and
23-19                (8)  students.
23-20          Sec. 38.059.  ASSISTANCE OF PUBLIC HEALTH AGENCY.
23-21    (a) [(h)]  A school district may seek assistance in establishing
23-22    and operating a school-based health center from any public health
23-23    agency in the community.  On request, a public health agency shall
23-24    cooperate with a district and to the extent practicable,
23-25    considering the resources of the agency, may provide assistance.
23-26          (b)  A district and a public health agency may, by agreement,
23-27    jointly establish, operate, and fund a school-based health center.
 24-1          Sec. 38.060.  COORDINATION WITH EXISTING PROVIDERS IN CERTAIN
 24-2    AREAS. (a)  This section applies only to a school-based health
 24-3    center serving an area that:
 24-4                (1)  is located in a county with a population not
 24-5    greater than 50,000; or
 24-6                (2)  has been designated under state or federal law as:
 24-7                      (A)  a health professional shortage area;
 24-8                      (B)  a medically underserved area; or
 24-9                      (C)  a medically underserved community by the
24-10    Center for Rural Health Initiatives.
24-11          (b) [(i)]  If a school-based health center is located in an
24-12    area described by Subsection (a) [(j)], the school district and the
24-13    advisory council established under Section 38.058 [Subsection (g)]
24-14    shall make a good faith effort to identify and coordinate with
24-15    existing providers to preserve and protect existing health care
24-16    systems and medical relationships in the area.
24-17          (c)  The council shall keep a record of efforts made to
24-18    coordinate with existing providers.
24-19          Sec. 38.061.  COMMUNICATION WITH PRIMARY CARE PHYSICIAN.
24-20    (a) [(j)  The requirements prescribed by Subsection (i) apply only
24-21    to a school-based health center serving an area that:]
24-22                [(1)  is located in a county with a population not
24-23    greater than 50,000; or]
24-24                [(2)  has been designated under state or federal law
24-25    as:]
24-26                      [(A)  a health professional shortage area;]
24-27                      [(B)  a medically underserved area; or]
 25-1                      [(C)  a medically underserved community by the
 25-2    Center for Rural Health Initiatives.]
 25-3          [(k)]  If a person receiving a medical service from a
 25-4    school-based health center has a primary care physician, the staff
 25-5    of the center shall provide notice of the service the person
 25-6    received to the primary care physician in order to allow the
 25-7    physician to maintain a complete medical history of the person.
 25-8          (b) [(l)]  The staff of a school-based health center shall,
 25-9    before delivering a medical service to a person with a primary care
25-10    physician under the state Medicaid program, a state children's
25-11    health plan program, or a private health insurance or health
25-12    benefit plan, notify the physician for the purpose of sharing
25-13    medical information and obtaining authorization for delivering the
25-14    medical service.
25-15          Sec. 38.062.  FUNDING FOR PROVISION OF SERVICES.  [(m)]  A
25-16    school district or the provider with whom the district contracts
25-17    shall seek all available sources of funding to compensate the
25-18    district or provider for services provided by a school-based health
25-19    center, including money available under the state Medicaid program,
25-20    a state children's health plan program, or private health insurance
25-21    or health benefit plans[,] or available from [the ability of] those
25-22    persons using a school-based health center who have the ability
25-23    [clinic] to pay for the services.
25-24          Sec. 38.063.  GRANTS. (a) [(n)]  Subject to the availability
25-25    of federal or state appropriated funds, the commissioner of public
25-26    health shall administer a program under which grants are awarded to
25-27    assist school districts with the costs of operating school-based
 26-1    health centers in accordance with this section.
 26-2          (b)  The commissioner of public health, by rules adopted in
 26-3    accordance with this section, shall establish procedures for
 26-4    awarding grants.  The rules must provide that:
 26-5                (1)  grants are awarded to school districts on an
 26-6    annual basis through a competitive process; and
 26-7                (2)  a preference is given to school districts that are
 26-8    located in rural areas or that have low property wealth per
 26-9    student.
26-10          (c)  All health care programs should be designed to meet the
26-11    following goals:
26-12                (1)  reducing student absenteeism;
26-13                (2)  increasing a student's ability to meet the
26-14    student's academic potential; and
26-15                (3)  stabilizing the physical well-being of a student. 
26-16          (d) [(o)]  A school district may not receive more than
26-17    $250,000 per biennium through grants awarded under this section.
26-18          (e)  To be eligible to receive a grant, a district must
26-19    provide matching funds in accordance with rules adopted under
26-20    Subsection (b) [(n)].  The matching funds may be obtained from any
26-21    source available to the district, including in-kind contributions,
26-22    community or foundation grants, individual contributions, and local
26-23    governmental agency operating funds.
26-24          (f) [(p)  The rules adopted under Subsection (n) must provide
26-25    that:]
26-26                [(1)  grants are awarded to school districts on an
26-27    annual basis through a competitive process; and]
 27-1                [(2)  a preference is given to school districts that
 27-2    are located in rural areas or that have low property wealth per
 27-3    student.]
 27-4          [(q)]  The commissioner of public health shall adopt rules
 27-5    establishing standards for health care centers funded through
 27-6    grants that place primary emphasis on delivery of health services
 27-7    and secondary emphasis on population-based models that prevent
 27-8    emerging health threats.
 27-9          (g)  The commissioner of public health shall require client
27-10    surveys to be conducted in school-based health centers funded
27-11    through grants awarded under this section, and the results of those
27-12    surveys must be included in the annual report required under
27-13    Section 38.064.
27-14          Sec. 38.064.  REPORT TO LEGISLATURE. (a)  [(r)  All programs
27-15    should be designed to meet the following goals:]
27-16                [(1)  reducing student absenteeism;]
27-17                [(2)  increasing a student's ability to meet the
27-18    student's academic potential; and]
27-19                [(3)  stabilizing the physical well-being of a student.]
27-20          [(s)]  Based on statistics obtained from every school-based
27-21    health center in this state, the commissioner of public health
27-22    shall issue an annual report to the legislature about the relative
27-23    efficacy of services delivered by school-based health centers and
27-24    any increased academic success of students at campuses served by
27-25    those centers, with special emphasis on any:
27-26                (1)  increased attendance;[,]
27-27                (2)  decreased drop-out rates;[,]
 28-1                (3)  improved student health;[,] and
 28-2                (4)  improved performance on student assessment
 28-3    instruments administered under Subchapter B, Chapter 39.
 28-4          (b)  In obtaining statistics for preparation of the report
 28-5    required by this section [subsection], the commissioner of public
 28-6    health shall ensure that data is collected for each county and
 28-7    aggregated appropriately according to geographical region.
 28-8          [(t)  The commissioner of public health shall require client
 28-9    surveys to be conducted in school-based health centers funded
28-10    through grants provided under this section, and the results of
28-11    those surveys must be included in the annual report required under
28-12    Subsection (s).]
28-13          SECTION 4.006. Section 39.024(b), Education Code, as amended
28-14    by Chapters 396 and 397, Acts of the 76th Legislature, Regular
28-15    Session, 1999, is reenacted to read as follows:
28-16          (b)  Each school district shall offer an intensive program of
28-17    instruction for students who did not perform satisfactorily on an
28-18    assessment instrument administered under this subchapter.  The
28-19    intensive programs for students who did not perform satisfactorily
28-20    on an assessment instrument under Section 39.023(a), (c), or (l)
28-21    shall be designed to enable those students to be performing at
28-22    grade level at the conclusion of the next regular school term or to
28-23    attain a standard of annual growth specified by the agency and, if
28-24    applicable, to carry out the purposes of Section 28.0211.  The
28-25    intensive programs for students who did not perform satisfactorily
28-26    on an assessment instrument under Section 39.023(b) shall be
28-27    designed by each student's admission, review, and dismissal
 29-1    committee to enable the student to attain a standard of annual
 29-2    growth on the basis of the student's individualized education
 29-3    program and, if applicable, to carry out the purposes of Section
 29-4    28.0211.
 29-5          SECTION 4.007.  Section 39.051(b), Education Code, as amended
 29-6    by Chapters 396, 397, and 1422, Acts of the 76th Legislature,
 29-7    Regular Session, 1999, is reenacted to read as follows:
 29-8          (b)  Performance on the indicators adopted under this section
 29-9    shall be compared to state-established standards.  The degree of
29-10    change from one school year to the next in performance on each
29-11    indicator adopted under this section shall also be considered.  The
29-12    indicators must be based on information that is disaggregated with
29-13    respect to race, ethnicity, sex, and socioeconomic status and must
29-14    include:
29-15                (1)  the results of assessment instruments required
29-16    under Sections 39.023(a), (c), and (l), aggregated by grade level
29-17    and subject area;
29-18                (2)  dropout rates;
29-19                (3)  student attendance rates;
29-20                (4)  the percentage of graduating students who attain
29-21    scores on the secondary exit-level assessment instruments required
29-22    under Subchapter B that are equivalent to a passing score on the
29-23    test instrument required under Section 51.306;
29-24                (5)  the percentage of graduating students who meet the
29-25    course requirements established for the recommended high school
29-26    program by State Board of Education rule;
29-27                (6)  the results of the Scholastic Assessment Test
 30-1    (SAT), the American College Test, articulated postsecondary degree
 30-2    programs described by Section 61.852, and certified workforce
 30-3    training programs described by Chapter 311, Labor Code;
 30-4                (7)  the number of students, aggregated by grade level,
 30-5    provided accelerated instruction under Section 28.0211(c), the
 30-6    results of assessments administered under that section, the number
 30-7    of students promoted through the grade placement committee process
 30-8    under Section 28.0211, the subject of the assessment instrument on
 30-9    which each student failed to perform satisfactorily, and the
30-10    performance of those students in the school year following that
30-11    promotion on the assessment instruments required under Section
30-12    39.023;
30-13                (8)  for students who have failed to perform
30-14    satisfactorily on an assessment instrument required under Section
30-15    39.023(a) or (c), the numerical progress of those students on
30-16    subsequent assessment instruments required under those sections,
30-17    aggregated by grade level and subject area;
30-18                (9)  the percentage of students exempted, by exemption
30-19    category, from the assessment program generally applicable under
30-20    this subchapter; and
30-21                (10)  any other indicator the State Board of Education
30-22    adopts.
30-23          SECTION 4.008.  Section 39.051(d), Education Code, as amended
30-24    by Chapters 396 and 397, Acts of the 76th Legislature, Regular
30-25    Session, 1999, is reenacted to read as follows:
30-26          (d)  Annually, the commissioner shall define exemplary,
30-27    recognized, and unacceptable performance for each academic
 31-1    excellence indicator included under Subsections (b)(1) through (6)
 31-2    and shall project the standards for each of those levels of
 31-3    performance for succeeding years.  For the indicator under
 31-4    Subsection (b)(7), the commissioner shall define exemplary,
 31-5    recognized, and unacceptable performance based on student
 31-6    performance for the period covering both the current and preceding
 31-7    academic years.  In defining exemplary, recognized, and
 31-8    unacceptable performance for the indicators under Subsections
 31-9    (b)(2) and (3), the commissioner may not consider as a dropout or
31-10    as a student who has failed to attend school a student whose
31-11    failure to attend school results from:
31-12                (1)  the student's expulsion under Section 37.007; and
31-13                (2)  as applicable:
31-14                      (A)  adjudication as having engaged in delinquent
31-15    conduct or conduct indicating a need for supervision, as defined by
31-16    Section 51.03, Family Code; or
31-17                      (B)  conviction of and sentencing for an offense
31-18    under the Penal Code.
31-19          SECTION 4.009.  Section 39.052(b), Education Code, as amended
31-20    by Chapters 396 and 1514, Acts of the 76th Legislature, Regular
31-21    Session, 1999, is reenacted to read as follows:
31-22          (b)  The report card shall include the following information
31-23    where applicable:
31-24                (1)  the academic excellence indicators adopted under
31-25    Sections 39.051(b)(1) through (9);
31-26                (2)  average class size by grade level and subject; and
31-27                (3)  administrative and instructional costs per
 32-1    student.
 32-2          SECTION 4.010. Section 39.053, Education Code, as amended by
 32-3    Chapters 510 and 1417, Acts of the 76th Legislature, Regular
 32-4    Session, 1999, is reenacted and amended to read as follows:
 32-5          Sec. 39.053.  PERFORMANCE REPORT. (a)  Each board of trustees
 32-6    shall publish an annual report describing the educational
 32-7    performance of the district and of each campus in the district that
 32-8    includes uniform student performance and descriptive information as
 32-9    determined under rules adopted by the commissioner.  The annual
32-10    report must also include:
32-11                (1)  campus performance objectives established under
32-12    Section 11.253 and the progress of each campus toward those
32-13    objectives, which shall be available to the public;
32-14                (2)  the performance rating for the district as
32-15    provided under Section 39.072(a) and the performance rating of each
32-16    campus in the district as provided under Section 39.072(c); [and]
32-17                (3)  the district's current special education
32-18    compliance status with the agency;
32-19                (4)  [.  In addition, the annual report must include] a
32-20    statement of the number, rate, and type of violent or criminal
32-21    incidents that occurred on each district campus, to the extent
32-22    permitted under the Family Educational Rights and Privacy Act of
32-23    1974 (20 U.S.C. Section 1232g);
32-24                (5)  [,] information concerning school violence
32-25    prevention and violence intervention policies and procedures that
32-26    the district is using to protect students; [,] and
32-27                (6)  the findings that result from evaluations
 33-1    conducted under the Safe and Drug-Free Schools and Communities Act
 33-2    of 1994 (20 U.S.C. Section 7101 et seq.)  and its subsequent
 33-3    amendments.
 33-4          (b)  Supplemental information to be included in the reports
 33-5    shall be determined by the board of trustees.  Performance
 33-6    information in the annual reports on the indicators established
 33-7    under Section 39.051 and descriptive information required by this
 33-8    section shall be provided by the agency.
 33-9          (c) [(b)]  The board of trustees shall hold a hearing for
33-10    public discussion of the report.  The board of trustees shall give
33-11    notice of the hearing to property owners in the district and
33-12    parents, guardians, conservators, and other persons having lawful
33-13    control of a district student.  The notification must include
33-14    notice to a newspaper of general circulation in the district and
33-15    notice to electronic media serving the district.  After the hearing
33-16    the report shall be widely disseminated within the district in a
33-17    manner to be determined under rules adopted by the commissioner.
33-18          (d) [(c)]  The report must also include a comparison provided
33-19    by the agency of:
33-20                (1)  the performance of each campus to its previous
33-21    performance and to state-established standards;
33-22                (2)  the performance of each district to its previous
33-23    performance and to state-established standards; and
33-24                (3)  the performance of each campus or district to
33-25    comparable improvement.
33-26          (e) [(d)]  The report may include the following information:
33-27                (1)  student information, including total enrollment,
 34-1    enrollment by ethnicity, economic status, and grade groupings and
 34-2    retention rates;
 34-3                (2)  financial information, including revenues and
 34-4    expenditures;
 34-5                (3)  staff information, including number and type of
 34-6    staff by sex, ethnicity, years of experience, and highest degree
 34-7    held, teacher and administrator salaries, and teacher turnover;
 34-8                (4)  program information, including student enrollment
 34-9    by program, teachers by program, and instructional operating
34-10    expenditures by program; and
34-11                (5)  the number of students placed in an alternative
34-12    education program under Chapter 37.
34-13          (f) [(e)]  The State Board of Education by rule shall
34-14    authorize the combination of this report with other reports and
34-15    financial statements and shall restrict the number and length of
34-16    reports that school districts, school district employees, and
34-17    school campuses are required to prepare.
34-18          (g) [(f)]  The report must include a statement of the amount,
34-19    if any, of the school district's unencumbered surplus fund balance
34-20    as of the last day of the preceding fiscal year and the percentage
34-21    of the preceding year's budget that the surplus represents.
34-22          SECTION 4.011. Section 39.072(b), Education Code, as amended
34-23    by Chapters 396 and 1417, Acts of the 76th Legislature, Regular
34-24    Session, 1999, is reenacted to read as follows:
34-25          (b)  The academic excellence indicators adopted under
34-26    Sections 39.051(b)(1) through (7) and the district's current
34-27    special education compliance status with the agency shall be the
 35-1    main considerations of the agency in the rating of the district
 35-2    under this section. Additional criteria in the rules may include
 35-3    consideration of:
 35-4                (1)  compliance with statutory requirements and
 35-5    requirements imposed by rule of the State Board of Education under
 35-6    specific statutory authority that relate to:
 35-7                      (A)  reporting data through the Public Education
 35-8    Information Management System (PEIMS);
 35-9                      (B)  the high school graduation requirements
35-10    under Section 28.025; or
35-11                      (C)  an item listed in Sections
35-12    7.056(e)(3)(C)-(I) that applies to the district; and
35-13                (2)  the effectiveness of the district's programs for
35-14    special populations.
35-15          SECTION 4.012.  Section 61.785, Education Code, as added by
35-16    Chapter 174, Acts of the 74th Legislature, Regular Session, 1995,
35-17    is transferred to Subchapter F, Chapter 51, Education Code, and
35-18    renumbered as Section 51.309 of that subchapter.
35-19          SECTION 4.013. Section 107.66, Education Code, is amended to
35-20    correct a reference to the State Board of Control to read as
35-21    follows:
35-22          Sec. 107.66.  REQUISITION OF FURNISHINGS, EQUIPMENT, ETC.
35-23    The board may make requisition to the General Services Commission
35-24    [State Board of Control] for furniture, furnishings, equipment, and
35-25    appointments required for the proper use and enjoyment of
35-26    improvements erected by the board, and the General Services
35-27    Commission [State Board of Control] may purchase and pay for the
 36-1    furnishings, equipment, and appointments.
 36-2              ARTICLE 4A.  CHANGES RELATING TO ELECTION CODE
 36-3          SECTION 4A.001. Section 254.041(c), Election Code, is amended
 36-4    to correct a reference to read as follows:
 36-5          (c)  A violation of Subsection (a)(3) [(a)(2)] by a candidate
 36-6    or officeholder is a Class A misdemeanor if the report fails to
 36-7    include information required by Section 254.061(3) or Section
 36-8    254.091(2), as applicable.
 36-9                ARTICLE 5.  CHANGES RELATING TO FAMILY CODE
36-10          SECTION 5.001. Section 54.04, Family Code, as amended by
36-11    Chapters 1193, 1415, 1448, and 1477, Acts of the 76th Legislature,
36-12    Regular Session, 1999, is reenacted and amended to read as follows:
36-13          Sec. 54.04.  DISPOSITION HEARING.  (a)  The disposition
36-14    hearing shall be separate, distinct, and subsequent to the
36-15    adjudication hearing.  There is no right to a jury at the
36-16    disposition hearing unless the child is in jeopardy of a
36-17    determinate sentence under Subsection (d)(3) or (m) of this
36-18    section, in which case, the child is entitled to a jury of 12
36-19    persons to determine the sentence.
36-20          (b)  At the disposition hearing, the juvenile court may
36-21    consider written reports from probation officers, professional
36-22    court employees, or professional consultants in addition to the
36-23    testimony of witnesses.  Prior to the disposition hearing, the
36-24    court shall provide the attorney for the child with access to all
36-25    written matter to be considered in disposition.  The court may
36-26    order counsel not to reveal items to the child or his parent,
36-27    guardian, or guardian ad litem if such disclosure would materially
 37-1    harm the treatment and rehabilitation of the child or would
 37-2    substantially decrease the likelihood of receiving information from
 37-3    the same or similar sources in the future.
 37-4          (c)  No disposition may be made under this section unless the
 37-5    child is in need of rehabilitation or the protection of the public
 37-6    or the child requires that disposition be made.  If the court or
 37-7    jury does not so find, the court shall dismiss the child and enter
 37-8    a final judgment without any disposition.  No disposition placing
 37-9    the child on probation outside the child's home may be made under
37-10    this section unless the court or jury finds that the child, in the
37-11    child's home, cannot be provided the quality of care and level of
37-12    support and supervision that the child needs to meet the conditions
37-13    of the probation.
37-14          (d)  If the court or jury makes the finding specified in
37-15    Subsection (c) allowing the court to make a disposition in the
37-16    case:
37-17                (1)  the court or jury may, in addition to any order
37-18    required or authorized under Section 54.041 or 54.042, place the
37-19    child on probation on such reasonable and lawful terms as the court
37-20    may determine:
37-21                      (A)  in his own home or in the custody of a
37-22    relative or other fit person; or
37-23                      (B)  subject to the finding under Subsection (c)
37-24    on the placement of the child outside the child's home, in:
37-25                            (i)  a suitable foster home; or
37-26                            (ii)  a suitable public or private
37-27    institution or agency, except the Texas Youth Commission;
 38-1                (2)  if the court or jury found at the conclusion of
 38-2    the adjudication hearing that the child engaged in delinquent
 38-3    conduct that violates a penal law of this state or the United
 38-4    States of the grade of felony or, if the requirements of Subsection
 38-5    (s) [(q)] are met, of the grade of misdemeanor, and if the petition
 38-6    was not approved by the grand jury under Section 53.045, the court
 38-7    may commit the child to the Texas Youth Commission without a
 38-8    determinate sentence;
 38-9                (3)  if the court or jury found at the conclusion of
38-10    the adjudication hearing that the child engaged in delinquent
38-11    conduct that included a violation of a penal law listed in Section
38-12    53.045(a) and if the petition was approved by the grand jury under
38-13    Section 53.045, the court or jury may sentence the child to
38-14    commitment in the Texas Youth Commission with a possible transfer
38-15    to the institutional division or the pardons and paroles division
38-16    of the Texas Department of Criminal Justice for a term of:
38-17                      (A)  not more than 40 years if the conduct
38-18    constitutes:
38-19                            (i)  a capital felony;
38-20                            (ii)  a felony of the first degree; or
38-21                            (iii)  an aggravated controlled substance
38-22    felony;
38-23                      (B)  not more than 20 years if the conduct
38-24    constitutes a felony of the second degree; or
38-25                      (C)  not more than 10 years if the conduct
38-26    constitutes a felony of the third degree;
38-27                (4)  the court may assign the child an appropriate
 39-1    sanction level and sanctions as provided by the assignment
 39-2    guidelines in Section 59.003; or
 39-3                (5)  if applicable, the court or jury may make a
 39-4    disposition under Subsection (m).
 39-5          (e)  The Texas Youth Commission shall accept a person
 39-6    properly committed to it by a juvenile court even though the person
 39-7    may be 17 years of age or older at the time of commitment.
 39-8          (f)  The court shall state specifically in the order its
 39-9    reasons for the disposition and shall furnish a copy of the order
39-10    to the child.  If the child is placed on probation, the terms of
39-11    probation shall be written in the order.
39-12          (g)  If the court orders a disposition under Subsection
39-13    (d)(3) or (m) of this section and there is an affirmative finding
39-14    that the defendant used or exhibited a deadly weapon during the
39-15    commission of the conduct or during immediate flight from
39-16    commission of the conduct, the court shall enter the finding in the
39-17    order.  If there is an affirmative finding that the deadly weapon
39-18    was a firearm, the court shall enter that finding in the order.
39-19          (h)  At the conclusion of the dispositional hearing, the
39-20    court shall inform the child of:
39-21                (1)  the child's right to appeal, as required by
39-22    Section 56.01 of this code; and
39-23                (2)  the procedures for the sealing of the child's
39-24    records under Section 58.003 of this code.
39-25          (i)  If the court places the child on probation outside the
39-26    child's home or commits the child to the Texas Youth Commission,
39-27    the court shall include in its order its determination that:
 40-1                (1)  it is in the child's best interests to be placed
 40-2    outside the child's home;
 40-3                (2)  reasonable efforts were made to prevent or
 40-4    eliminate the need for the child's removal from the home and to
 40-5    make it possible for the child to return to the child's home; and
 40-6                (3)  the child, in the child's home, cannot be provided
 40-7    the quality of care and level of support and supervision that the
 40-8    child needs to meet the conditions of probation.
 40-9          (j)  If the court or jury found that the child engaged in
40-10    delinquent conduct that included a violation of a penal law of the
40-11    grade of felony, the court:
40-12                (1)  shall require that the child's thumbprint be
40-13    affixed to the order; and
40-14                (2)  may require that a photograph of the child be
40-15    attached to the order.
40-16          (k)  Except as provided by Subsection (m), the period to
40-17    which a court or jury may sentence a person to commitment to the
40-18    Texas Youth Commission with a transfer to the Texas Department of
40-19    Criminal Justice under Subsection (d)(3) of this section applies
40-20    without regard to whether the person has previously been
40-21    adjudicated as having engaged in delinquent conduct.
40-22          (l)  Except as provided by Subsection (q), a court or jury
40-23    may place a child on probation under Subsection (d)(1) for any
40-24    period, except that probation may not continue on or after the
40-25    child's 18th birthday.  Except as provided by Subsection (q), the
40-26    court may, before the period of probation ends, extend the
40-27    probation for any period, except that the probation may not extend
 41-1    to or after the child's 18th birthday.
 41-2          (m)  The court or jury may sentence a child adjudicated for
 41-3    habitual felony conduct as described by Section 51.031 to a term
 41-4    prescribed by Subsection (d)(3) and applicable to the conduct
 41-5    adjudicated in the pending case if:
 41-6                (1)  a petition was filed and approved by a grand jury
 41-7    under Section 53.045 alleging that the child engaged in habitual
 41-8    felony conduct; and
 41-9                (2)  the court or jury finds beyond a reasonable doubt
41-10    that the allegation described by Subdivision (1) in the grand jury
41-11    petition is true.
41-12          (n)  A court may order a disposition of secure confinement of
41-13    a status offender adjudicated for violating a valid court order
41-14    only if:
41-15                (1)  before the order is issued, the child received the
41-16    full due process rights guaranteed by the Constitution of the
41-17    United States or the Texas Constitution; and
41-18                (2)  the juvenile probation department in a report
41-19    authorized by Subsection (b):
41-20                      (A)  reviewed the behavior of the child and the
41-21    circumstances under which the child was brought before the court;
41-22                      (B)  determined the reasons for the behavior that
41-23    caused the child to be brought before the court; and
41-24                      (C)  determined that all dispositions, including
41-25    treatment, other than placement in a secure detention facility or
41-26    secure correctional facility, have been exhausted or are clearly
41-27    inappropriate.
 42-1          (o)  A status offender may not, under any circumstances, be
 42-2    committed to the Texas Youth Commission for engaging in conduct
 42-3    that would not, under state or local law, be a crime if committed
 42-4    by an adult.
 42-5          (p)  Except as provided by Subsection (l), a court that
 42-6    places a child on probation under Subsection (d)(1) for conduct
 42-7    described by Section 54.0405(b) and punishable as a felony shall
 42-8    specify a minimum probation period of two years.
 42-9          (q)  If a court or jury sentences a child to commitment in
42-10    the Texas Youth Commission under Subsection (d)(3) for a term of
42-11    not more than 10 years, the court or jury may place the child on
42-12    probation under Subsection (d)(1) as an alternative to making the
42-13    disposition under Subsection (d)(3).  The court shall prescribe the
42-14    period of probation ordered under this subsection for a term of not
42-15    more than 10 years.  The court may, before the sentence of
42-16    probation expires, extend the probationary period under Section
42-17    54.05, except that the sentence of probation and any extension may
42-18    not exceed 10 years.  The court may, before the child's 18th
42-19    birthday, discharge the child from the sentence of probation.  If a
42-20    sentence of probation ordered under this subsection and any
42-21    extension of probation ordered under Section 54.05 will continue
42-22    after the child's 18th birthday, the court shall discharge the
42-23    child from the sentence of probation on the child's 18th birthday
42-24    unless the court transfers the child to an appropriate district
42-25    court under Section 54.051.
42-26          (r) [(q)]  If the judge orders a disposition under this
42-27    section and there is an affirmative finding that the victim or
 43-1    intended victim was younger than 17 years of age at the time of the
 43-2    conduct, the judge shall enter the finding in the order.
 43-3          (s) [(q)]  The court may make a disposition under Subsection
 43-4    (d)(2) for delinquent conduct that violates a penal law of the
 43-5    grade of misdemeanor if:
 43-6                (1)  the child has been adjudicated as having engaged
 43-7    in delinquent conduct violating a penal law of the grade of felony
 43-8    or misdemeanor on at least two previous occasions;
 43-9                (2)  of the previous adjudications, the conduct that
43-10    was the basis for one of the adjudications occurred after the date
43-11    of another previous adjudication; and
43-12                (3)  the conduct that is the basis of the current
43-13    adjudication occurred after the date of at least two previous
43-14    adjudications.
43-15          SECTION 5.002. (a)  Section 54.05(j), Family Code, as added
43-16    by Chapter 1448, Acts of the 76th Legislature, Regular Session,
43-17    1999, is redesignated as Section 54.05(k), Family Code.
43-18          (b)  Section 54.05(f), Family Code, as amended by Chapters
43-19    1448 and 1477, Acts of the 76th Legislature, Regular Session, 1999,
43-20    is reenacted and amended to read as follows:
43-21          (f)  Except as provided by Subsection (j), a disposition
43-22    based on a finding that the child engaged in delinquent conduct
43-23    that violates a penal law of this state or the United States of the
43-24    grade of felony or, if the requirements of Subsection (k) [(j)] are
43-25    met, of the grade of misdemeanor, may be modified so as to commit
43-26    the child to the Texas Youth Commission if the court after a
43-27    hearing to modify disposition finds by a preponderance of the
 44-1    evidence that the child violated a reasonable and lawful order of
 44-2    the court.  A disposition based on a finding that the child engaged
 44-3    in habitual felony conduct as described by Section 51.031 or in
 44-4    delinquent conduct that included a violation of a penal law listed
 44-5    in Section 53.045(a) may be modified to commit the child to the
 44-6    Texas Youth Commission with a possible transfer to the
 44-7    institutional division or the pardons and paroles division of the
 44-8    Texas Department of Criminal Justice for a definite term prescribed
 44-9    by Section 54.04(d)(3) if the original petition was approved by the
44-10    grand jury under Section 53.045 and if after a hearing to modify
44-11    the disposition the court finds that the child violated a
44-12    reasonable and lawful order of the court.
44-13          (c)  Section 54.05(g), Family Code, as amended by Chapters
44-14    1448 and 1477, Acts of the 76th Legislature, Regular Session, 1999,
44-15    is reenacted to read as follows:
44-16          (g)  Except as provided by Subsection (j), a disposition
44-17    based solely on a finding that the child engaged in conduct
44-18    indicating a need for supervision may not be modified to commit the
44-19    child to the Texas Youth Commission.  A new finding in compliance
44-20    with Section 54.03 must be made that the child engaged in
44-21    delinquent conduct that meets the requirements for commitment under
44-22    Section 54.04.
44-23          SECTION 5.0025. Section 109.003(a), Family Code, is amended
44-24    to correct a reference to read as follows:
44-25          (a)  If the party requesting a statement of facts in an
44-26    appeal of a suit has filed an affidavit stating the party's
44-27    inability to pay costs as provided by Rule 20 [40], Texas Rules of
 45-1    Appellate Procedure, and the affidavit is approved by the trial
 45-2    court, the trial court may order the county in which the trial was
 45-3    held to pay the costs of preparing the statement of facts.
 45-4          SECTION 5.0026. Section 159.611(e), Family Code, is repealed
 45-5    because it duplicates Section 159.614, Family Code.
 45-6          SECTION 5.003. Section 261.101(b), Family Code, as amended by
 45-7    Section 6.29, Chapter 62, Acts of the 76th Legislature, Regular
 45-8    Session, 1999, is reenacted to conform with the intent of Section
 45-9    1, Chapter 162, and Section 65, Chapter 1022, Acts of the 75th
45-10    Legislature, Regular Session, 1997, to read as follows:
45-11          (b)  If a professional has cause to believe that a child has
45-12    been abused or neglected or may be abused or neglected, or that a
45-13    child is a victim of an offense under Section 21.11, Penal Code,
45-14    and the professional has cause to believe that the child has been
45-15    abused as defined by Section 261.001, the professional shall make a
45-16    report not later than the 48th hour after the hour the professional
45-17    first suspects that the child has been or may be abused or
45-18    neglected or is a victim of an offense under Section 21.11, Penal
45-19    Code.  A professional may not delegate to or rely on another person
45-20    to make the report.  In this subsection, "professional" means an
45-21    individual who is licensed or certified by the state or who is an
45-22    employee of a facility licensed, certified, or operated by the
45-23    state and who, in the normal course of official duties or duties
45-24    for which a license or certification is required, has direct
45-25    contact with children.  The term includes teachers, nurses,
45-26    doctors, day-care employees, employees of a clinic or health care
45-27    facility that provides reproductive services, juvenile probation
 46-1    officers, and juvenile detention or correctional officers.
 46-2                      ARTICLE 6.  CHANGES RELATING TO
 46-3                               FINANCE CODE
 46-4                  PART 1. CHANGES RELATING TO MULTISTATE
 46-5                              TRUST BUSINESS
 46-6          SECTION 6.001. (a)  Subtitle F, Title 3, Finance Code, is
 46-7    amended to codify Chapter 9, Texas Trust Company Act (Article
 46-8    342a-9.001 et seq., Vernon's Texas Civil Statutes), by adding
 46-9    Chapter 187 to read as follows:
46-10                  CHAPTER 187.  MULTISTATE TRUST BUSINESS
46-11                     SUBCHAPTER A.  GENERAL PROVISIONS
46-12          Sec. 187.001.  DEFINITIONS. (a)  In this chapter:
46-13                (1)  "Acquire" means an act that results in direct or
46-14    indirect control by an out-of-state trust company of a state trust
46-15    institution, including an act that causes the company to:
46-16                      (A)  merge with the state trust institution;
46-17                      (B)  assume direct or indirect ownership of a
46-18    controlling interest in any class of voting shares of the state
46-19    trust institution; or
46-20                      (C)  assume direct ownership or control of all or
46-21    substantially all of the accounts of a state trust institution.
46-22                (2)  "Bank" means:
46-23                      (A)  a state bank chartered under Chapter 32 or
46-24    the laws of another state;
46-25                      (B)  a national bank chartered under federal law;
46-26    or
46-27                      (C)  a foreign bank that is organized under the
 47-1    laws of a territory of the United States, Puerto Rico, Guam,
 47-2    American Samoa, or the Virgin Islands and that has its deposits
 47-3    insured by the Federal Deposit Insurance Corporation.
 47-4                (3)  "Branch" has the meaning assigned by Section
 47-5    31.002(a).
 47-6                (4)  "Credit union" means a credit union chartered
 47-7    under Chapter 122, the laws of another state, or federal law.
 47-8                (5)  "De novo trust office" means a trust office
 47-9    located in a host state that:
47-10                      (A)  is originally established by a trust company
47-11    as a trust office; and
47-12                      (B)  does not become a trust office of the trust
47-13    company as a result of an acquisition or conversion of another
47-14    trust institution.
47-15                (6)  "Foreign bank" has the meaning assigned by Section
47-16    1(b)(7), International Banking Act (12 U.S.C. Section 3101(7)), as
47-17    amended.
47-18                (7)  "Home state" means:
47-19                      (A)  with respect to a federally chartered trust
47-20    institution or a foreign bank, the state in which the institution
47-21    maintains its principal office; and
47-22                      (B)  with respect to another trust institution,
47-23    the state that chartered the institution.
47-24                (8)  "Home state regulator" means the supervisory
47-25    agency with primary responsibility for chartering and supervising a
47-26    trust company.
47-27                (9)  "Host state" means a state, other than the home
 48-1    state of a trust company, or a foreign country in which the trust
 48-2    company maintains or seeks to acquire or establish an office.
 48-3                (10)  "Office" means, with respect to a trust company,
 48-4    the principal office, a trust office, or a representative trust
 48-5    office.
 48-6                (11)  "Out-of-state trust company" means a trust
 48-7    company:
 48-8                      (A)  whose home state is another state; or
 48-9                      (B)  that is chartered under the laws of a
48-10    foreign country.
48-11                (12)  "Principal office" means:
48-12                      (A)  with respect to a state trust company, its
48-13    home office as defined by Section 181.002(a); and
48-14                      (B)  with respect to a bank, savings bank,
48-15    savings association, foreign bank, or out-of-state trust company,
48-16    its main office or principal place of business in the United
48-17    States.
48-18                (13)  "Representative trust office" means an office at
48-19    which a trust company has been authorized by the banking
48-20    commissioner to engage in activities other than acting as a
48-21    fiduciary as provided by Subchapter C.
48-22                (14)  "Savings association" means a savings and loan
48-23    association chartered under Chapter 62, the laws of another state,
48-24    or federal law.
48-25                (15)  "Savings bank" means a savings bank chartered
48-26    under Chapter 92, the laws of another state, or federal law.
48-27                (16)  "State" means any state of the United States, the
 49-1    District of Columbia, any territory of the United States, Puerto
 49-2    Rico, Guam, American Samoa, the Trust Territory of the Pacific
 49-3    Islands, the Virgin Islands, and the Northern Mariana Islands.
 49-4                (17)  "State trust institution" means a trust
 49-5    institution whose home state is this state.
 49-6                (18)  "Supervisory agency" means:
 49-7                      (A)  an agency of another state or a foreign
 49-8    country with primary responsibility for chartering and supervising
 49-9    a trust institution; and
49-10                      (B)  with respect to a federally chartered trust
49-11    institution or foreign bank, the Office of the Comptroller of the
49-12    Currency, the Federal Deposit Insurance Corporation, the Board of
49-13    Governors of the Federal Reserve System, the Office of Thrift
49-14    Supervision, or the National Credit Union Administration, as
49-15    applicable.
49-16                (19)  "Trust company" means a state trust company or a
49-17    company chartered under the laws of another state or a foreign
49-18    country to conduct a trust business that is not a bank, credit
49-19    union, savings association, savings bank, or foreign bank.
49-20                (20)  "Trust institution" means a bank, credit union,
49-21    foreign bank, savings association, savings bank, or trust company
49-22    that is authorized by its charter to conduct a trust business.
49-23                (21)  "Trust office" means an office, other than the
49-24    principal office, at which a trust company is licensed by the
49-25    banking commissioner to conduct a trust business.
49-26          (b)  The definitions provided by Section 181.002(a) apply to
49-27    this chapter to the extent not inconsistent with this chapter.
 50-1          (c)  The definitions shall be liberally construed to
 50-2    accomplish the purposes of this chapter.
 50-3          (d)  The finance commission by rule may adopt other
 50-4    definitions to accomplish the purposes of this chapter.
 50-5          Sec. 187.002.  COMPANIES AUTHORIZED TO CONDUCT A TRUST
 50-6    BUSINESS. (a)  A company may not conduct a trust business in this
 50-7    state unless the company is a trust institution and is:
 50-8                (1)  a state trust company chartered pursuant to this
 50-9    subtitle;
50-10                (2)  a bank, savings association, savings bank, or
50-11    credit union that maintains its principal office or a branch in
50-12    this state in accordance with governing law, or another office in
50-13    this state with the power to conduct a trust business to the extent
50-14    permitted by rule;
50-15                (3)  a trust company chartered under the laws of
50-16    another state or a foreign country that has a trust office in this
50-17    state licensed by the banking commissioner pursuant to this
50-18    chapter; or
50-19                (4)  a foreign bank with an office in this state that
50-20    is authorized to act as a fiduciary pursuant to Section 204.106.
50-21          (b)  Notwithstanding Subsection (a), a trust institution that
50-22    does not maintain a principal office, branch, or trust office in
50-23    this state may act as a fiduciary in this state to the extent
50-24    permitted by Section 105A, Probate Code.
50-25          (c)  A company does not engage in the trust business in this
50-26    state in a manner requiring a charter or license under this
50-27    subtitle by engaging in an activity identified in Section 182.021,
 51-1    except that the registration requirements of Section 187.202 may
 51-2    apply to a trust representative office engaging in the activity.
 51-3          Sec. 187.003.  INTERSTATE TRUST BUSINESS OF STATE TRUST
 51-4    COMPANY. Subject to the approval of the banking commissioner
 51-5    pursuant to Section 182.203, a state trust company may engage in
 51-6    the trust business in another state or a foreign country at a trust
 51-7    office or a trust representative office to the extent permitted by
 51-8    and subject to applicable laws of the state or foreign country.
 51-9          Sec. 187.004.  TRUST BUSINESS OF OUT-OF-STATE TRUST COMPANY.
51-10    (a)  An out-of-state trust company that establishes or maintains an
51-11    office in this state under this chapter may conduct any activity at
51-12    the office that would be authorized under the laws of this state
51-13    for a state trust company to conduct at the office.
51-14          (b)  Before establishing an office in this state, an
51-15    out-of-state trust company must comply with Section 201.102.
51-16          Sec. 187.005.  DESIGNATION OF TRUSTEE AND GOVERNING LAW. (a)
51-17    Unless another law restricts the designation of trustee, a person
51-18    residing in this state may designate a trust institution to act as
51-19    a fiduciary on behalf of the person.
51-20          (b)  Unless another law specifies governing law and except as
51-21    provided in Subsection (c), if a trust or its subject matter bears
51-22    a reasonable relation to this state and also to another state or a
51-23    foreign country, a trust institution and its affected client may
51-24    agree that the law of this state or of the other state or country
51-25    governs their rights and duties, including the law of a state or a
51-26    foreign country where the affected client resides or where the
51-27    trust institution has its principal office.
 52-1          (c)  Notwithstanding Subsection (b), a trust institution is
 52-2    subject to Sections 113.052 and 113.053, Property Code, with
 52-3    respect to a trust if the trust is established by a client that
 52-4    resides in this state and is solicited from or accepted by an
 52-5    office of the trust institution in this state.
 52-6          Sec. 187.006.  TAXATION. An out-of-state trust institution
 52-7    doing business in this state is subject to the franchise tax to the
 52-8    extent provided by Chapter 171, Tax Code.
 52-9          Sec. 187.007.  SEVERABILITY. The provisions of this chapter
52-10    or applications of those provisions are severable as provided by
52-11    Section 312.013, Government Code.
52-12             (Sections 187.008-187.100 reserved for expansion
52-13          SUBCHAPTER B.  OUT-OF-STATE TRUST COMPANY TRUST OFFICE
52-14          Sec. 187.101.  TRUST OFFICES IN THIS STATE. An out-of-state
52-15    trust company may engage in a trust business at an office in this
52-16    state only if it establishes and maintains a trust office in this
52-17    state as permitted by this subchapter.
52-18          Sec. 187.102.  ESTABLISHING AN INTERSTATE TRUST OFFICE. (a)
52-19    An out-of-state trust company that does not operate a trust office
52-20    in this state may not establish and maintain a de novo trust office
52-21    in this state unless:
52-22                (1)  a state trust company would be permitted to
52-23    establish a de novo trust office in the home state or foreign
52-24    country of the out-of-state trust company; and
52-25                (2)  a bank whose home state is this state would be
52-26    permitted to establish a de novo branch in the home state or
52-27    foreign country of the out-of-state trust company.
 53-1          (b)  Subject to Subsection (a), a de novo trust office may be
 53-2    established in this state under this section through the
 53-3    acquisition of a trust office in this state of an existing trust
 53-4    institution.
 53-5          Sec. 187.103.  ACQUIRING AN INTERSTATE TRUST OFFICE. (a)  An
 53-6    out-of-state trust company that does not operate a trust office in
 53-7    this state and that meets the requirements of this subchapter may
 53-8    acquire an existing trust institution in this state and after the
 53-9    acquisition operate and maintain the acquired institution as a
53-10    trust office in this state, subject to Subchapter A, Chapter 183,
53-11    or Subchapter A, Chapter 33, if applicable.  If the institution to
53-12    be acquired is a bank or a state savings bank, Section 203.005
53-13    applies to the transaction.
53-14          (b)  An out-of-state trust institution that does not operate
53-15    a trust office in this state may not establish and maintain a trust
53-16    office in this state through the acquisition of a trust office of
53-17    an existing trust institution except as provided by Section
53-18    187.102.  This section does not affect or prohibit a trust
53-19    institution or other person from chartering a state trust company
53-20    pursuant to Section 182.001.
53-21          Sec. 187.104.  REQUIREMENT OF NOTICE. An out-of-state trust
53-22    company desiring to establish and maintain a de novo trust office
53-23    or acquire an existing trust institution in this state and to
53-24    operate and maintain the acquired institution as a trust office
53-25    pursuant to this subchapter shall provide written notice of the
53-26    proposed transaction to the banking commissioner on or after the
53-27    date on which the out-of-state trust company applies to the home
 54-1    state regulator for approval to establish and maintain or acquire
 54-2    the trust office.  The filing of the notice shall be preceded or
 54-3    accompanied by a copy of the resolution adopted by the board
 54-4    authorizing the additional office and the filing fee, if any,
 54-5    prescribed by law.  The written notice must contain sufficient
 54-6    information to enable an informed decision under Section 187.105.
 54-7          Sec. 187.105.  CONDITIONS FOR APPROVAL. (a)  A trust office
 54-8    of an out-of-state trust company may be acquired or established in
 54-9    this state under this subchapter if:
54-10                (1)  the out-of-state trust company confirms in writing
54-11    to the banking commissioner that while it maintains a trust office
54-12    in this state, it will comply with all applicable laws of this
54-13    state;
54-14                (2)  the out-of-state trust company provides
54-15    satisfactory evidence to the banking commissioner of compliance
54-16    with Section 201.102 and the applicable requirements of its home
54-17    state regulator for acquiring or establishing and maintaining the
54-18    office;
54-19                (3)  all filing fees have been paid as required by law;
54-20    and
54-21                (4)  the banking commissioner finds that:
54-22                      (A)  applicable conditions of Section 187.102 or
54-23    187.103 have been met;
54-24                      (B)  if a state bank is being acquired, the
54-25    applicable requirements of Subchapter A, Chapter 33, and Section
54-26    203.005 have been met, or if a state trust company is being
54-27    acquired, the applicable requirements of Subchapter A, Chapter 183
 55-1    have been met; and
 55-2                      (C)  any conditions imposed by the banking
 55-3    commissioner pursuant to Subsection (b) have been satisfied.
 55-4          (b)  The banking commissioner may condition approval of a
 55-5    trust office on compliance by the out-of-state trust company with
 55-6    any requirement applicable to formation of a state trust company
 55-7    pursuant to Sections 182.003(b) and 182.007.
 55-8          (c)  If all requirements of Subsection (a)  have been met,
 55-9    the out-of-state trust company may commence business at the trust
55-10    office on the 61st day after the date the banking commissioner
55-11    notifies the company that the notice required by Section 187.104
55-12    has been accepted for filing, unless the banking commissioner
55-13    specifies an earlier or later date.
55-14          (d)  The 60-day period of review may be extended by the
55-15    banking commissioner on a determination that the written notice
55-16    raises issues that require additional information or additional
55-17    time for analysis.  If the period of review is extended, the
55-18    out-of-state trust company may establish the office only on prior
55-19    written approval by the banking commissioner.
55-20          (e)  If all requirements of Subsection (a)  have been met,
55-21    the banking commissioner may otherwise deny approval of the office
55-22    if the banking commissioner finds that the out-of-state trust
55-23    company lacks sufficient financial resources to undertake the
55-24    proposed expansion without adversely affecting its safety or
55-25    soundness or that the proposed office is contrary to the public
55-26    interest.  In acting on the notice, the banking commissioner shall
55-27    consider the views of the appropriate supervisory agencies.
 56-1          Sec. 187.106.  ADDITIONAL TRUST OFFICES. An out-of-state
 56-2    trust company that maintains a trust office in this state under
 56-3    this subchapter may establish or acquire additional trust offices
 56-4    or representative trust offices in this state to the same extent
 56-5    that a state trust company may establish or acquire additional
 56-6    offices in this state pursuant to the procedures for establishing
 56-7    or acquiring the offices set forth in Section 182.203.
 56-8             (Sections 187.107-187.200 reserved for expansion
 56-9               SUBCHAPTER C.  OUT-OF-STATE TRUST INSTITUTION
56-10                        REPRESENTATIVE TRUST OFFICE
56-11          Sec. 187.201.  REPRESENTATIVE TRUST OFFICE BUSINESS. (a)  An
56-12    out-of-state trust institution may establish a representative trust
56-13    office as permitted by this subchapter to:
56-14                (1)  solicit, but not accept, fiduciary appointments;
56-15                (2)  act as a fiduciary in this state to the extent
56-16    permitted for a foreign corporate fiduciary by Section 105A,
56-17    Probate Code;
56-18                (3)  perform ministerial duties with respect to
56-19    existing clients and accounts of the trust institution;
56-20                (4)  engage in an activity permitted by Section
56-21    182.021; and
56-22                (5)  to the extent the office is not acting as a
56-23    fiduciary:
56-24                      (A)  receive for safekeeping personal property of
56-25    every description;
56-26                      (B)  act as assignee, bailee, conservator,
56-27    custodian, escrow agent, registrar, receiver, or transfer agent;
 57-1    and
 57-2                      (C)  act as financial advisor, investment advisor
 57-3    or manager, agent, or attorney-in-fact in any agreed capacity.
 57-4          (b)  Except as provided by Subsection (a), a trust
 57-5    representative office may not act as a fiduciary or otherwise
 57-6    engage in the trust business in this state.
 57-7          (c)  Subject to the requirements of this subchapter, an
 57-8    out-of-state trust institution may establish and maintain
 57-9    representative trust offices anywhere in this state.
57-10          Sec. 187.202.  REGISTRATION OF REPRESENTATIVE TRUST OFFICE.
57-11    (a)  Except as provided by Subsection (e) with respect to a credit
57-12    union, a savings association, or a savings bank, an out-of-state
57-13    trust institution that does not maintain a branch or trust office
57-14    in this state and that desires to establish or acquire and maintain
57-15    a representative trust office shall:
57-16                (1)  file a notice on a form prescribed by the banking
57-17    commissioner, setting forth:
57-18                      (A)  the name of the out-of-state trust
57-19    institution;
57-20                      (B)  the location of the proposed office; and
57-21                      (C)  satisfactory evidence that the notificant is
57-22    a trust institution;
57-23                (2)  pay the filing fee, if any, prescribed by law; and
57-24                (3)  submit a copy of the resolution adopted by the
57-25    board authorizing the representative trust office and a copy of the
57-26    trust institution's registration filed with the secretary of state
57-27    pursuant to Section 201.102.
 58-1          (b)  The notificant may commence business at the
 58-2    representative trust office on the 31st day after the date the
 58-3    banking commissioner receives the notice unless the banking
 58-4    commissioner specifies an earlier or later date.
 58-5          (c)  The 30-day period of review may be extended by the
 58-6    banking commissioner on a determination that the written notice
 58-7    raises issues that require additional information or additional
 58-8    time for analysis.  If the period of review is extended, the
 58-9    out-of-state trust institution may establish the representative
58-10    trust office only on prior written approval by the banking
58-11    commissioner.
58-12          (d)  The banking commissioner may deny approval of the
58-13    representative trust office if the banking commissioner finds that
58-14    the notificant lacks sufficient financial resources to undertake
58-15    the proposed expansion without adversely affecting its safety or
58-16    soundness or that the proposed office would be contrary to the
58-17    public interests. In acting on the notice, the banking commissioner
58-18    shall consider the views of the appropriate supervisory agencies.
58-19          (e)  A credit union, savings association, or savings bank
58-20    that does not maintain a branch in this state and desires to
58-21    establish or acquire and maintain a representative trust office
58-22    shall comply with this section, except that the notice required by
58-23    Subsection (a) must be filed with, and the duties and
58-24    responsibilities of the banking commissioner under Subsections
58-25    (b)-(d) shall be performed by:
58-26                (1)  the Texas credit union commissioner, with respect
58-27    to a credit union; or
 59-1                (2)  the Texas savings and loan commissioner, with
 59-2    respect to a savings association or savings bank.
 59-3          (f)  An out-of-state trust institution that fails to register
 59-4    as required by this section is subject to Subchapter C, Chapter
 59-5    185.
 59-6             (Sections 187.203-187.300 reserved for expansion
 59-7         SUBCHAPTER D.  SUPERVISION OF OUT-OF-STATE TRUST COMPANY
 59-8          Sec. 187.301.  COOPERATIVE AGREEMENTS; FEES. (a)  To carry
 59-9    out the purposes of this subtitle, the banking commissioner may:
59-10                (1)  enter into cooperative, coordinating, or
59-11    information sharing agreements with another supervisory agency or
59-12    an organization affiliated with or representing one or more
59-13    supervisory agencies;
59-14                (2)  with respect to periodic examination or other
59-15    supervision or investigation, accept reports of examination or
59-16    investigation by, and reports submitted to, another supervisory
59-17    agency in lieu of conducting examinations or investigations or
59-18    receiving reports as might otherwise be required or permissible
59-19    under this subtitle;
59-20                (3)  enter into contracts with another supervisory
59-21    agency having concurrent regulatory or supervisory jurisdiction to
59-22    engage the services of the agency for reasonable compensation to
59-23    assist with the banking commissioner's performance of official
59-24    duties under this subtitle or other law, or to provide services to
59-25    the agency for reasonable compensation in connection with the
59-26    agency's performance of official duties under law, except that
59-27    Chapter 2254, Government Code, does not apply to those contracts;
 60-1                (4)  enter into joint examinations or joint enforcement
 60-2    actions with another supervisory agency having concurrent
 60-3    regulatory or supervisory jurisdiction, except that the banking
 60-4    commissioner may independently take action under Section 187.305 if
 60-5    the banking commissioner determines that the action is necessary to
 60-6    carry out the banking commissioner's responsibilities under this
 60-7    subtitle or to enforce compliance with the laws of this state; and
 60-8                (5)  assess supervisory and examination fees to be paid
 60-9    by an out-of-state trust company that maintains one or more offices
60-10    in this state in connection with the banking commissioner's
60-11    performance of duties under this subtitle.
60-12          (b)  Supervisory or examination fees assessed by the banking
60-13    commissioner in accordance with this subtitle may be shared with
60-14    another supervisory agency or an organization affiliated with or
60-15    representing one or more supervisory agencies in accordance with an
60-16    agreement between the banking commissioner and the agency or
60-17    organization.  The banking commissioner may also receive a portion
60-18    of supervisory or examination fees assessed by another supervisory
60-19    agency in accordance with an agreement between the banking
60-20    commissioner and the agency.
60-21          Sec. 187.302.  EXAMINATIONS; PERIODIC REPORTS. (a)  To the
60-22    extent consistent with Section 187.301, the banking commissioner
60-23    may make examinations of a trust office or trust representative
60-24    office established and maintained in this state by an out-of-state
60-25    trust company pursuant to this chapter as the banking commissioner
60-26    considers necessary to determine whether the office is being
60-27    operated in compliance with the laws of this state and in
 61-1    accordance with safe and sound fiduciary practices. Sections
 61-2    181.104-181.106 apply to the examinations.
 61-3          (b)  The finance commission may by rule prescribe
 61-4    requirements for periodic reports regarding a trust office or trust
 61-5    representative office in this state.  The required reports must be
 61-6    provided by the trust institution maintaining the office. Reporting
 61-7    requirements under this subsection must be appropriate for the
 61-8    purpose of enabling the banking commissioner to discharge the
 61-9    responsibilities of the banking commissioner under this chapter.
61-10          Sec. 187.303.  INTERPRETIVE STATEMENTS AND OPINIONS. (a)
61-11    Subject to Subsection (b), to encourage the effective coordination
61-12    and implementation of home state laws and host state laws with
61-13    respect to interstate trust business, the banking commissioner,
61-14    directly or through the deputy banking commissioner or a department
61-15    attorney in the manner provided by Sections 181.101 and 181.102,
61-16    and with the effect provided by Section 181.103, may issue:
61-17                (1)  an interpretive statement for the general guidance
61-18    of trust institutions in this state and the public; or
61-19                (2)  an opinion interpreting or determining the
61-20    applicability of the laws of this state to the trust business and
61-21    the operation of a branch, trust office, or another office in this
61-22    state of an out-of-state trust institution, or in other states by
61-23    state trust companies.
61-24          (b)  With respect to the trust business of a credit union,
61-25    savings association, or savings bank, the duties and
61-26    responsibilities of the banking commissioner under Subsection (a)
61-27    shall be performed by:
 62-1                (1)  the Texas credit union commissioner, with respect
 62-2    to a credit union; or
 62-3                (2)  the Texas savings and loan commissioner, with
 62-4    respect to a savings association or savings bank.
 62-5          Sec. 187.304.  CONFIDENTIAL INFORMATION. Information obtained
 62-6    directly or indirectly by the banking commissioner relative to the
 62-7    financial condition or business affairs of a trust institution,
 62-8    other than the public portions of a report of condition or income
 62-9    statement, or a present, former, or prospective shareholder,
62-10    participant, officer, director, manager, affiliate, or service
62-11    provider of the trust institution, whether obtained through
62-12    application, examination, or otherwise, and each related file or
62-13    record of the department is confidential and may not be disclosed
62-14    by the banking commissioner or an employee of the department except
62-15    as expressly provided by Subchapter D, Chapter 181.
62-16          Sec. 187.305.  ENFORCEMENT; APPEALS. (a)  If the banking
62-17    commissioner determines that an out-of-state trust company has
62-18    violated this subtitle or other applicable law of this state, the
62-19    banking commissioner may take all enforcement actions the banking
62-20    commissioner would be empowered to take if the out-of-state trust
62-21    company were a state trust company, except that the banking
62-22    commissioner shall promptly give notice to the home state regulator
62-23    of each enforcement action to be taken against an out-of-state
62-24    trust company and, to the extent practicable, shall consult and
62-25    cooperate with the home state regulator in pursuing and resolving
62-26    the enforcement action.  An out-of-state trust company may appeal a
62-27    final order or other decision of the banking commissioner under
 63-1    this subtitle as provided by Sections 181.202-181.204.
 63-2          (b)  Notwithstanding Subsection (a), the banking commissioner
 63-3    may enforce this subtitle against a trust institution by
 63-4    appropriate action in the courts, including an action for
 63-5    injunctive relief, if the banking commissioner concludes the action
 63-6    is necessary or desirable.
 63-7          Sec. 187.306.  NOTICE OF SUBSEQUENT EVENT.  Each out-of-state
 63-8    trust company that has established and maintains an office in this
 63-9    state pursuant to this subtitle shall give written notice, at least
63-10    30 days before the effective date of the event, or, in the case of
63-11    an emergency transaction, a shorter period before the effective
63-12    date consistent with applicable state or federal law, to the
63-13    banking commissioner of:
63-14                (1)  a merger or other transaction that would cause a
63-15    change of control with respect to the trust company, with the
63-16    result that an application would be required to be filed with the
63-17    home state regulator or a federal supervisory agency;
63-18                (2)  a transfer of all or substantially all of the
63-19    trust accounts or trust assets of the out-of-state trust company to
63-20    another person; or
63-21                (3)  the closing or disposition of an office in this
63-22    state.
63-23          (b)  Chapter 9, Texas Trust Company Act (Article 342a-9.001
63-24    et seq., Vernon's Texas Civil Statutes), is repealed.
63-25          SECTION 6.002. (a)  Sections 181.002(a)(11), (45), and
63-26    (51)-(53), Finance Code, are amended to conform to Section 4.001,
63-27    Chapter 344, Acts of the 76th Legislature, Regular Session, 1999,
 64-1    to read as follows:
 64-2                (11)  "Company" means a [includes a bank, trust
 64-3    company,] corporation, a partnership, an association, a business
 64-4    trust, [or] another trust, or a similar organization, including a
 64-5    trust institution.
 64-6                (45)  "State trust company" or "trust company" means a
 64-7    trust association or limited trust association organized or
 64-8    reorganized under this subtitle, including an association organized
 64-9    under the laws of this state before September 1, 1997. If the
64-10    context or circumstances require, the term includes a trust company
64-11    organized under the laws of another state that lawfully maintains a
64-12    trust office in this state in accordance with Chapter 187.
64-13                (51)  "Trust institution" means a bank, credit union,
64-14    foreign bank, savings association, savings bank, or trust company
64-15    that is authorized by its charter to conduct a trust business.
64-16                (52)  "Unauthorized trust activity" means an act or
64-17    practice within this state by a company [person] without a charter,
64-18    license, permit, registration, or other authority issued or granted
64-19    by the banking commissioner or other appropriate regulatory
64-20    authority for which such a charter, license, permit, registration,
64-21    or other authority is required to conduct trust business.
64-22                (53) [(52)]  "Undivided profits" means the part of
64-23    equity capital of a state trust company equal to the balance of its
64-24    net profits, income, gains, and losses since the date of its
64-25    formation minus subsequent distributions to shareholders or
64-26    participants and transfers to surplus or capital under share
64-27    dividends or appropriate board resolutions.  The term includes
 65-1    amounts allocated to undivided profits as a result of a merger.
 65-2                (54) [(53)]  "Voting security" means a share,
 65-3    participation share, or other evidence of proprietary interest in a
 65-4    state trust company or other company that has as an attribute the
 65-5    right to vote or participate in the election of the board of the
 65-6    trust company or other company, regardless of whether the right is
 65-7    limited to the election of fewer than all of the board members. The
 65-8    term includes a security that is convertible or exchangeable into a
 65-9    voting security and a nonvoting participation share of a managing
65-10    participant.
65-11          (b)  Section 4.001, Chapter 344, Acts of the 76th
65-12    Legislature, Regular Session, 1999, is repealed.
65-13          SECTION 6.003. (a)  Section 181.003(a), Finance Code, is
65-14    amended to conform to Section 4.002, Chapter 344, Acts of the 76th
65-15    Legislature, Regular Session, 1999, to read as follows:
65-16          (a)  The finance commission may adopt rules to accomplish the
65-17    purposes of this subtitle, including rules necessary or reasonable
65-18    to:
65-19                (1)  implement and clarify this subtitle;
65-20                (2)  preserve or protect the safety and soundness of
65-21    state trust companies;
65-22                (3)  grant the same rights and privileges to state
65-23    trust companies with respect to the exercise of fiduciary powers
65-24    that are or may be granted to a trust institution that maintains
65-25    its principal office or a branch or trust office [state or national
65-26    bank that is domiciled] in this state [and exercising fiduciary
65-27    powers];
 66-1                (4)  provide for recovery of the cost of maintenance
 66-2    and operation of the department and the cost of enforcing this
 66-3    subtitle through the imposition and collection of ratable and
 66-4    equitable fees for notices, applications, and examinations; and
 66-5                (5)  facilitate the fair hearing and adjudication of
 66-6    matters before the banking commissioner and the finance commission.
 66-7          (b)  Section 4.002, Chapter 344, Acts of the 76th
 66-8    Legislature, Regular Session, 1999, is repealed.
 66-9          SECTION 6.004. (a)  Section 181.004(b), Finance Code, is
66-10    amended to conform to Section 4.014, Chapter 344, Acts of the 76th
66-11    Legislature, Regular Session, 1999, to read as follows:
66-12          (b)  Subsection (a)  does not apply to:
66-13                (1)  a [state or national bank, a state or federal
66-14    savings bank, a state or federal savings association, a state or
66-15    federal credit union, or a depository or] trust [company]
66-16    institution authorized under this subtitle to conduct a trust
66-17    business in this state; or
66-18                (2)  another entity organized under the laws of this
66-19    state, another state, the United States, or a foreign sovereign
66-20    state to the extent that:
66-21                      (A)  the entity is authorized under its charter
66-22    or the laws of this state or the United States to use a term, word,
66-23    character, ideogram, phonogram, or phrase prohibited by Subsection
66-24    (a); and
66-25                      (B)  the entity is authorized by the laws of this
66-26    state or the United States to conduct the activities in which the
66-27    entity is engaged in this state.
 67-1          (b)  Section 4.014, Chapter 344, Acts of the 76th
 67-2    Legislature, Regular Session, 1999, is repealed.
 67-3          SECTION 6.005. (a)  Section 181.006, Finance Code, is amended
 67-4    to conform to Section 4.021, Chapter 344, Acts of the 76th
 67-5    Legislature, Regular Session, 1999, to read as follows:
 67-6          Sec. 181.006.  EXEMPTION OF TRUST INSTITUTION [COMPANY]
 67-7    DIRECTORS AND PERSONNEL FROM SECURITIES LAW. An officer, director,
 67-8    manager, managing participant, or employee of a [state] trust
 67-9    institution [company] with fewer than 500 shareholders or
67-10    participants, including a state trust company or a trust
67-11    institution organized under the laws of another state that lawfully
67-12    maintains an office in this state, or a holding company with fewer
67-13    than 500 shareholders or participants that controls a [state] trust
67-14    institution [company] is exempt from the registration and licensing
67-15    provisions of The Securities Act (Article 581-1 et seq., Vernon's
67-16    Texas Civil Statutes) with respect to that person's participation
67-17    in a transaction, including a sale, involving securities issued by
67-18    the [state] trust institution [company] or the holding company of
67-19    which that person is an officer, director, manager, managing
67-20    participant, or employee if the person is not compensated for the
67-21    person's participation in the transaction.
67-22          (b)  Section 4.021, Chapter 344, Acts of the 76th
67-23    Legislature, Regular Session, 1999, is repealed.
67-24          SECTION 6.006.  (a)  Section 181.007, Finance Code, is
67-25    amended to conform to Section 4.019, Chapter 344, Acts of the 76th
67-26    Legislature, Regular Session, 1999, to read as follows:
67-27          Sec. 181.007.  ATTACHMENT, INJUNCTION, OR EXECUTION. [(a)] An
 68-1    attachment, injunction, or execution [may not be issued against a
 68-2    state trust company located in this state] to collect a money
 68-3    judgment or secure a prospective money judgment against a trust
 68-4    institution, including a [the] state trust company or a trust
 68-5    institution organized under the laws of another state that lawfully
 68-6    maintains an office in this state, or against a client of or client
 68-7    account in the trust institution, is governed by Sections 59.007
 68-8    and 59.008 [before the judgment is final and all appeals have been
 68-9    exhausted or foreclosed by law.]
68-10          [(b)  This section does not affect an attachment, injunction,
68-11    execution, or writ of garnishment issued to or served on a state
68-12    trust company for the purpose of collecting a money judgment or
68-13    securing a prospective money judgment against a client of or client
68-14    account in the state trust company].
68-15          (b)  Section 4.019, Chapter 344, Acts of the 76th
68-16    Legislature, Regular Session, 1999, is repealed.
68-17          SECTION 6.007.  (a)  Sections 181.101 and 181.102, Finance
68-18    Code, are amended to conform to Section 4.003, Chapter 344, Acts of
68-19    the 76th Legislature, Regular Session, 1999, to read as follows:
68-20          Sec. 181.101.  ISSUANCE OF INTERPRETIVE STATEMENTS. (a)  The
68-21    banking commissioner:
68-22                (1)  may issue interpretive statements containing
68-23    matters of general policy for the guidance of the public and state
68-24    trust companies; and
68-25                (2)  [shall file the statements for publication in the
68-26    Texas Register; and]
68-27                [(3)]  may amend or repeal a published interpretive
 69-1    statement by issuing an amended statement or notice of repeal of a
 69-2    statement [and filing the statement or notice for publication in
 69-3    the Texas Register].
 69-4          (b)  An interpretive statement may be disseminated by
 69-5    newsletter, via an electronic medium such as the Internet, in a
 69-6    volume of statutes or related materials published by the banking
 69-7    commissioner or others, or by other means reasonably calculated to
 69-8    notify persons affected by the interpretive statement.  Notice of
 69-9    an amended or withdrawn statement must be published in a
69-10    substantially similar manner as the affected statement was
69-11    originally published.  [The secretary of state shall publish the
69-12    filed statements and notices in the Texas Register and in a
69-13    designated chapter of the Texas Administrative Code.]
69-14          Sec. 181.102.  ISSUANCE OF OPINION. (a)  In response to a
69-15    specific request from a member of the public or [the state trust
69-16    company] industry, the banking commissioner may issue an opinion
69-17    directly or through the deputy banking commissioner or the
69-18    department's attorneys.
69-19          (b)  If the banking commissioner determines that the opinion
69-20    is useful for the general guidance of trust companies and the
69-21    public, the banking commissioner may disseminate [file] the opinion
69-22    by newsletter, via an electronic medium such as the Internet, in a
69-23    volume of statutes or related materials published by the banking
69-24    commissioner or others, or by other means reasonably calculated to
69-25    notify persons affected by the opinion [for publication in the
69-26    Texas Register].  A published opinion must be redacted to preserve
69-27    the confidentiality of the requesting party unless the requesting
 70-1    party consents to be identified in the published opinion.
 70-2          (c)  The banking commissioner may amend or repeal a published
 70-3    opinion by issuing an amended opinion or notice of repeal of an
 70-4    opinion and disseminating [filing] the opinion or notice in a
 70-5    substantially similar manner as the affected statement or opinion
 70-6    was originally published [for publication in the Texas Register].
 70-7    The requesting party, however, may rely on the original opinion if:
 70-8                (1)  all material facts were originally disclosed to
 70-9    the banking commissioner;
70-10                (2)  the safety and soundness of the affected trust
70-11    companies will not be affected by further reliance on the original
70-12    opinion; and
70-13                (3)  the text and interpretation of relevant governing
70-14    provisions of this subtitle have not been changed by legislative or
70-15    judicial action.
70-16          [(d)  The secretary of state shall publish the filed opinions
70-17    and notices in the Texas Register and a designated chapter of the
70-18    Texas Administrative Code.]
70-19          (b)  Section 4.003, Chapter 344, Acts of the 76th
70-20    Legislature, Regular Session, 1999, is repealed.
70-21          SECTION 6.008.  (a)  Section 182.001(b), Finance Code, is
70-22    amended to conform to Section 4.004, Chapter 344, Acts of the 76th
70-23    Legislature, Regular Session, 1999, to read as follows:
70-24          (b)  A state trust company may engage in the trust business
70-25    by [perform any act as a fiduciary that a state bank or national
70-26    bank exclusively exercising trust powers may perform under the laws
70-27    of this state, including]:
 71-1                (1)  acting as trustee under a written agreement;
 71-2                (2)  receiving money and other property in its capacity
 71-3    as trustee for investment in real or personal property;
 71-4                (3)  acting as trustee and performing the fiduciary
 71-5    duties committed or transferred to it by order of a court;
 71-6                (4)  acting as executor, administrator, or trustee of
 71-7    the estate of a deceased person;
 71-8                (5)  acting as a custodian, guardian, conservator, or
 71-9    trustee for a minor or incapacitated person;
71-10                (6)  acting as a successor fiduciary to a trust
71-11    [depository] institution or other fiduciary;
71-12                (7)  receiving for safekeeping personal property;
71-13                (8)  acting as custodian, assignee, transfer agent,
71-14    escrow agent, registrar, or receiver;
71-15                (9)  acting as investment advisor, agent, or attorney
71-16    in fact according to an applicable agreement;
71-17                (10)  exercising additional powers expressly conferred
71-18    by rule of the finance commission; and
71-19                (11)  exercising any incidental power that is
71-20    reasonably necessary to enable it to fully exercise the powers
71-21    expressly conferred according to commonly accepted fiduciary
71-22    customs and usages.
71-23          (b)  Section 4.004, Chapter 344, Acts of the 76th
71-24    Legislature, Regular Session, 1999, is repealed.
71-25          SECTION 6.009.  (a)  Section 182.005(f), Finance Code, is
71-26    amended to conform to Section 4.005, Chapter 344, Acts of the 76th
71-27    Legislature, Regular Session, 1999, to read as follows:
 72-1          (f)  Chapter 2001, Government Code, does not apply to a
 72-2    charter application filed for the purpose of assuming all or any
 72-3    portion of the assets, liabilities, and accounts of a trust [any
 72-4    depository] institution [or state trust company] considered by the
 72-5    banking commissioner to be in hazardous condition.
 72-6          (b)  Section 4.005, Chapter 344, Acts of the 76th
 72-7    Legislature, Regular Session, 1999, is repealed.
 72-8          SECTION 6.010.  (a)  Sections 182.010(a), (b), and (e),
 72-9    Finance Code, are amended to conform to Section 4.025, Chapter 344,
72-10    Acts of the 76th Legislature, Regular Session, 1999, to read as
72-11    follows:
72-12          (a)  A state trust company has the same rights and privileges
72-13    with respect to the exercise of fiduciary powers that are or may be
72-14    granted to a trust institution [state or national bank] that
72-15    maintains its principal office or a branch or trust office [is
72-16    domiciled] in this state, except that this section may not be used
72-17    by a state trust company to:
72-18                (1)  diminish its otherwise applicable fiduciary duties
72-19    to a client under the laws of this state; or
72-20                (2)  avoid otherwise applicable consumer protection
72-21    laws of this state [and exercising fiduciary powers].
72-22          (b)  A state trust company that intends to exercise a right
72-23    or privilege with respect to the exercise of fiduciary powers
72-24    granted to a trust [regulated financial] institution described in
72-25    Subsection (a) that is not authorized for state trust companies
72-26    under the statutes and rules of this state other than under this
72-27    section shall submit a letter to the banking commissioner,
 73-1    describing in detail the activity in which the state trust company
 73-2    intends to engage and the specific authority for the trust
 73-3    [regulated financial] institution described in Subsection (a) to
 73-4    undertake the proposed activity.  The state trust company shall
 73-5    attach copies, if available, of relevant state and federal law,
 73-6    including regulations and interpretive letters.  The state trust
 73-7    company may begin to perform the proposed activity after the 30th
 73-8    day after the date the banking commissioner receives the state
 73-9    trust company's letter unless the banking commissioner specifies an
73-10    earlier or later date or prohibits the activity. The banking
73-11    commissioner may prohibit the state trust company from performing
73-12    the activity only if the banking commissioner finds that:
73-13                (1)  a trust [regulated financial] institution
73-14    described in Subsection (a) [that is domiciled in this state] does
73-15    not possess the specific right or privilege to perform the activity
73-16    the state trust company seeks to perform; or
73-17                (2)  the performance of the activity by the state trust
73-18    company would adversely affect the safety and soundness of the
73-19    requesting state trust company.
73-20          (e)  The finance commission may adopt rules implementing the
73-21    method or manner in which a state trust company exercises specific
73-22    rights and privileges, including rules regarding the exercise of
73-23    rights and privileges that would be prohibited to state trust
73-24    companies under state law except as provided by this section.  The
73-25    finance commission may not adopt rules under this subsection unless
73-26    it finds that:
73-27                (1)  trust [regulated financial] institutions described
 74-1    in Subsection (a) [that are domiciled in this state] possess the
 74-2    rights or privileges to perform activities the rules would permit
 74-3    state trust companies to perform; and
 74-4                (2)  if the rights and privileges would be prohibited
 74-5    to state trust companies under other state law, the rules contain
 74-6    adequate safeguards and controls, consistent with safety and
 74-7    soundness, to address the concern of the legislature evidenced by
 74-8    the state law the rules would impact.
 74-9          (b)  Section 4.025, Chapter 344, Acts of the 76th
74-10    Legislature, Regular Session, 1999, is repealed.
74-11          SECTION 6.011.  (a)  Section 182.021, Finance Code, is
74-12    amended to conform to Section 4.006, Chapter 344, Acts of the 76th
74-13    Legislature, Regular Session, 1999, to read as follows:
74-14          Sec. 182.021.  ACTIVITIES NOT REQUIRING CHARTER.  Subject to
74-15    Subchapter C, Chapter 187, a [A] company does not engage in the
74-16    trust business in a manner requiring a state charter by:
74-17                (1)  acting in a manner authorized by law and in the
74-18    scope of authority as an agent of a [state] trust institution
74-19    [company];
74-20                (2)  rendering a service customarily performed as an
74-21    attorney in a manner approved and authorized by the Supreme Court
74-22    of Texas or State Bar of Texas;
74-23                (3)  acting as trustee under a deed of trust made only
74-24    as security for the payment of money or for the performance of
74-25    another act;
74-26                (4)  conducting [a trust] business as a trust
74-27    institution [under a charter that authorizes the exercise of trust
 75-1    powers as a depository institution,] if the exercise of fiduciary
 75-2    [trust] powers in this state by the trust [depository] institution
 75-3    is not otherwise prohibited by law;
 75-4                (5)  engaging in a business regulated by the Office of
 75-5    Consumer Credit Commissioner, except as limited by rules adopted by
 75-6    the finance commission;
 75-7                (6)  receiving and distributing rents and proceeds of
 75-8    sale as a licensed real estate broker on behalf of a principal in a
 75-9    manner authorized by the Texas Real Estate Commission;
75-10                (7)  engaging in a securities transaction or providing
75-11    an investment advisory service as a licensed and registered dealer,
75-12    salesman, or advisor to the extent that the activity is regulated
75-13    by the State Securities Board or the Securities and Exchange
75-14    Commission;
75-15                (8)  engaging in the sale and administration of an
75-16    insurance product by an insurance company or agent licensed by the
75-17    Texas Department of Insurance to the extent that the activity is
75-18    regulated by the Texas Department of Insurance;
75-19                (9)  engaging in the lawful sale of prepaid funeral
75-20    benefits under a permit issued by the banking commissioner under
75-21    Chapter 154;
75-22                (10)  engaging in the lawful business of a perpetual
75-23    care cemetery corporation under Chapter 712, Health and Safety
75-24    Code;
75-25                (11)  engaging as a principal or agent in the lawful
75-26    sale of checks under a license issued by the banking commissioner
75-27    under Chapter 152;
 76-1                (12)  acting as trustee under a voting trust as
 76-2    provided by Article 2.30, Texas Business Corporation Act;
 76-3                (13)  acting as trustee by a public, private, or
 76-4    independent institution of higher education or a university system,
 76-5    as defined by Section 61.003, Education Code, including an
 76-6    affiliated foundation or corporation of such an institution or
 76-7    system acting as trustee as provided by the Education Code;
 76-8                (14)  engaging in another activity expressly excluded
 76-9    from the application of this subtitle by rule of the finance
76-10    commission;
76-11                (15)  rendering services customarily performed by a
76-12    certified accountant in a manner authorized by the Texas State
76-13    Board of Public Accountancy;
76-14                (16)  serving as trustee of a charitable trust as
76-15    provided by Article 2.31, Texas Non-Profit Corporation Act (Article
76-16    1396-2.31, Vernon's Texas Civil Statutes);
76-17                (17)  performing escrow or settlement services if
76-18    licensed under Chapter 9, Insurance Code; [or]
76-19                (18)  acting as a qualified intermediary in a tax
76-20    deferred exchange under Section 1031, Internal Revenue Code of
76-21    1986, and applicable regulations; or
76-22                (19)  providing permitted services at a trust
76-23    representative office established in this state pursuant to
76-24    Subchapter C, Chapter 187.
76-25          (b)  Section 4.006, Chapter 344, Acts of the 76th
76-26    Legislature, Regular Session, 1999, is repealed.
76-27          SECTION 6.012.  (a)  Section 182.203(a), Finance Code, is
 77-1    amended to conform to Section 4.007, Chapter 344, Acts of the 76th
 77-2    Legislature, Regular Session, 1999, to read as follows:
 77-3          (a)  A state trust company may establish and maintain
 77-4    additional offices [anywhere in this state].  To establish an
 77-5    additional office, the state trust company must file a written
 77-6    notice with the banking commissioner setting forth the name of the
 77-7    state trust company, the street address of the proposed additional
 77-8    office, a description of the activities proposed to be conducted at
 77-9    the additional office, and a copy of the resolution adopted by the
77-10    board authorizing the additional office.
77-11          (b)  Section 4.007, Chapter 344, Acts of the 76th
77-12    Legislature, Regular Session, 1999, is repealed.
77-13          SECTION 6.013.  (a)  Section 182.302(c), Finance Code, is
77-14    amended to conform to Section 4.008, Chapter 344, Acts of the 76th
77-15    Legislature, Regular Session, 1999, to read as follows:
77-16          (c)  The banking commissioner may approve the merger if:
77-17                (1)  each resulting state trust company:
77-18                      (A)  has complied with the statutes and rules
77-19    relating to the organization of a state trust company; and
77-20                      (B)  will be solvent and have adequate
77-21    capitalization for its business and location;
77-22                (2)  all obligations and liabilities of each trust
77-23    company that is a party to the merger have been properly discharged
77-24    or otherwise lawfully assumed or retained by a trust institution
77-25    [company] or other fiduciary;
77-26                (3)  each surviving, new, or acquiring person that is
77-27    not authorized to engage in the trust business will not engage in
 78-1    the trust business and has complied with the laws of this state;
 78-2    and
 78-3                (4)  all conditions imposed by the banking commissioner
 78-4    have been satisfied or otherwise resolved.
 78-5          (b)  Section 4.008, Chapter 344, Acts of the 76th
 78-6    Legislature, Regular Session, 1999, is repealed.
 78-7          SECTION 6.014.  (a)  Section 182.401, Finance Code, is
 78-8    amended to conform to Section 4.009, Chapter 344, Acts of the 76th
 78-9    Legislature, Regular Session, 1999, to read as follows:
78-10          Sec. 182.401.  AUTHORITY TO PURCHASE ASSETS OF ANOTHER TRUST
78-11    [FINANCIAL] INSTITUTION.  (a)  A state trust company with the prior
78-12    written approval of the banking commissioner may purchase all or
78-13    substantially all of the assets of another trust [regulated
78-14    financial] institution, including the right to control accounts
78-15    established with the [state] trust institution [company].
78-16          (b)  Except as otherwise expressly provided by this section
78-17    or another statute, the purchase of all or part of the assets of
78-18    the selling trust institution does not make the purchasing state
78-19    trust company responsible for any liability or obligation of the
78-20    selling trust institution that the purchasing state trust company
78-21    does not expressly assume.
78-22          (c)  Except as otherwise provided by this subtitle, this
78-23    subchapter does not govern or prohibit the purchase by a state
78-24    trust company of all or part of the assets of a corporation or
78-25    other entity that is not a [state] trust institution [company].
78-26          (d)  To make a purchase under this section, an application in
78-27    the form required by the banking commissioner must be filed with
 79-1    the banking commissioner.  The banking commissioner shall
 79-2    investigate the condition of the purchaser and seller and may
 79-3    require the submission of additional information as considered
 79-4    necessary to make an informed decision.
 79-5          (e)  The banking commissioner shall approve the purchase if:
 79-6                (1)  the purchasing state trust company:
 79-7                      (A)  has complied with all applicable statutes
 79-8    and rules; and
 79-9                      (B)  will be solvent and have sufficient
79-10    capitalization for its business and location;
79-11                (2)  all obligations and liabilities of each trust
79-12    institution [company] that is a party to the purchase or sale of
79-13    assets have been properly discharged or otherwise lawfully assumed
79-14    or retained by a trust institution [company] or other fiduciary;
79-15                (3)  all conditions imposed by the banking commissioner
79-16    have been satisfied or otherwise resolved; and
79-17                (4)  all fees and costs have been paid.
79-18          (f)  A purchase is effective on the date of approval unless
79-19    the purchase agreement provides for and the banking commissioner
79-20    consents to a different effective date.
79-21          (g)  The acquiring state trust company shall succeed by
79-22    operation of law to all of the rights, privileges, and obligations
79-23    of the selling trust institution under each account included in the
79-24    assets acquired.
79-25          (b)  Section 4.009, Chapter 344, Acts of the 76th
79-26    Legislature, Regular Session, 1999, is repealed.
79-27          SECTION 6.015.  (a)  Section 182.405, Finance Code, is
 80-1    amended to conform to Section 4.010, Chapter 344, Acts of the 76th
 80-2    Legislature, Regular Session, 1999, by adding Subsection (e) to
 80-3    read as follows:
 80-4          (e)  The acquiring trust institution shall succeed by
 80-5    operation of law to all of the rights, privileges, and obligations
 80-6    of the selling state trust company under each account included in
 80-7    the assets acquired.
 80-8          (b)  Section 4.010, Chapter 344, Acts of the 76th
 80-9    Legislature, Regular Session, 1999, is repealed.
80-10          SECTION 6.016.  (a)  Subchapter F, Chapter 182, Finance Code,
80-11    is amended to conform to Section 4.011, Chapter 344, Acts of the
80-12    76th Legislature, Regular Session, 1999, to read as follows:
80-13            SUBCHAPTER F. EXIT OF STATE TRUST COMPANY OR ENTRY
80-14              OF ANOTHER TRUST INSTITUTION [CERTAIN MERGERS,
80-15            REORGANIZATIONS, OR CONVERSIONS INTO NATIONAL BANK]
80-16          Sec. 182.501.  MERGER[, REORGANIZATION,] OR CONVERSION OF
80-17    STATE TRUST COMPANY INTO ANOTHER TRUST INSTITUTION [NATIONAL BANK]
80-18    EXERCISING FIDUCIARY POWERS.  (a)  Subject to Chapter 187, a [A]
80-19    state trust company may act as necessary and to the extent
80-20    permitted by [under] the laws of the United States, [or] this
80-21    state, another state, or another country to merge[, reorganize,] or
80-22    convert into another form of trust institution [a national bank
80-23    exercising fiduciary powers].
80-24          (b)  The merger[, reorganization,] or conversion must be made
80-25    and approval of the state trust company's board, shareholders, or
80-26    participants must be obtained in accordance with the Texas Business
80-27    Corporation Act as if the state trust company were a domestic
 81-1    corporation and all other parties to the transaction, if any, were
 81-2    foreign corporations or other entities, except as may be otherwise
 81-3    provided by rule.  For purposes of this subsection, a conversion is
 81-4    considered a merger into the successor trust institution [national
 81-5    bank exercising fiduciary powers].
 81-6          (c)  The state trust company does not cease to be a state
 81-7    trust company subject to the supervision of the banking
 81-8    commissioner unless:
 81-9                (1)  the banking commissioner has been given written
81-10    notice of the intention to merge[, reorganize,] or convert before
81-11    the 31st day before the date of the proposed transaction;
81-12                (2)  the state trust company has published notice of
81-13    the transaction, in the form and frequency specified by the banking
81-14    commissioner, in:
81-15                      (A)  a newspaper of general circulation published
81-16    in the county of its home office or, if such a newspaper is not
81-17    published in the county, in an adjacent county; and
81-18                      (B)  other locations that the banking
81-19    commissioner considers appropriate;
81-20                (3)  the state trust company has filed with the banking
81-21    commissioner:
81-22                      (A)  a copy of the application filed with the
81-23    successor regulatory authority, including a copy of each contract
81-24    evidencing or implementing the merger[, reorganization,] or
81-25    conversion, or other documents sufficient to show compliance with
81-26    applicable law;
81-27                      (B)  a certified copy of all minutes of board
 82-1    meetings and shareholder or participant meetings at which action
 82-2    was taken regarding the merger[, reorganization,] or conversion;
 82-3    and
 82-4                      (C)  a publisher's certificate showing
 82-5    publication of the required notice;
 82-6                (4)  the banking commissioner determines that:
 82-7                      (A)  all accounts and liabilities of the state
 82-8    trust company are fully discharged, assumed, or otherwise retained
 82-9    by the successor trust institution [national bank exercising
82-10    fiduciary powers];
82-11                      (B)  any conditions imposed by the banking
82-12    commissioner for the protection of clients and creditors have been
82-13    met or otherwise resolved; and
82-14                      (C)  any required filing fees have been paid; and
82-15                (5)  the state trust company has received a certificate
82-16    of authority to do business as the successor trust institution [a
82-17    national bank exercising fiduciary powers].
82-18          Sec. 182.502.  CONVERSION OF TRUST INSTITUTION INTO STATE
82-19    TRUST COMPANY.  (a)  A trust institution may apply to the banking
82-20    commissioner for conversion into a state trust company on a form
82-21    prescribed by the banking commissioner and accompanied by any
82-22    required fee if the trust institution follows the procedures
82-23    prescribed by the laws of the United States, this state, another
82-24    state, or another country governing the exit of the trust
82-25    institution for the purpose of conversion into a state trust
82-26    company from the regulatory system applicable before the
82-27    conversion.  A trust association or limited trust association may
 83-1    convert its organizational form under this section.
 83-2          (b)  A trust institution applying to convert into a state
 83-3    trust company may receive a certificate of authority to do business
 83-4    as a state trust company if the banking commissioner finds that:
 83-5                (1)  the trust institution is not engaging in a pattern
 83-6    or practice of unsafe and unsound fiduciary or banking practices;
 83-7                (2)  the trust institution has adequate capitalization
 83-8    for a state trust company to act as a fiduciary at the same
 83-9    locations as the trust institution is acting as a fiduciary before
83-10    the conversion;
83-11                (3)  the trust institution can be expected to operate
83-12    profitably after the conversion;
83-13                (4)  the officers and directors of the trust
83-14    institution as a group have sufficient banking experience, ability,
83-15    standing, competence, trustworthiness, and integrity to justify a
83-16    belief that the trust institution will operate as a state trust
83-17    company in compliance with law; and
83-18                (5)  each principal shareholder has sufficient
83-19    experience, ability, standing, competence, trustworthiness, and
83-20    integrity to justify a belief that the trust institution will be
83-21    free from improper or unlawful influence or interference with
83-22    respect to the trust institution's operation as a state trust
83-23    company in compliance with law.
83-24          (c)  The banking commissioner may:
83-25                (1)  request additional information considered
83-26    necessary to make an informed decision under this section;
83-27                (2)  perform an examination of the converting trust
 84-1    institution at the expense of the converting trust institution; and
 84-2                (3)  require that examination fees be paid before a
 84-3    certificate of authority is issued.
 84-4          (d)  In connection with the application, the converting trust
 84-5    institution must:
 84-6                (1)  submit a statement of the law governing the exit
 84-7    of the trust institution from the regulatory system applicable
 84-8    before the conversion and the terms of the transition into a state
 84-9    trust company; and
84-10                (2)  demonstrate that all applicable law has been fully
84-11    satisfied.
84-12          (b)  Section 4.011, Chapter 344, Acts of the 76th
84-13    Legislature, Regular Session, 1999, is repealed.
84-14          SECTION 6.017.  (a)  Section 185.003(a), Finance Code, is
84-15    amended to conform to Section 4.012, Chapter 344, Acts of the 76th
84-16    Legislature, Regular Session, 1999, to read as follows:
84-17          (a)  The banking commissioner has grounds to remove a present
84-18    or former officer, director, manager, managing participant, or
84-19    employee of a state trust company from office or employment in, or
84-20    to prohibit a controlling shareholder or participant or other
84-21    person [participating in the affairs of the state trust company]
84-22    from participation in the affairs of, the state trust company [or a
84-23    state bank or other entity chartered or licensed by the banking
84-24    commissioner under the laws of this state] if the banking
84-25    commissioner determines from examination or other credible evidence
84-26    that:
84-27                (1)  the person:
 85-1                      (A)  intentionally committed or participated in
 85-2    the commission of an act described by Section 185.002(a) with
 85-3    regard to the affairs of the state trust company; or
 85-4                      (B)  violated a final cease and desist order
 85-5    issued in response to the same or a similar act;
 85-6                (2)  because of that action by the person:
 85-7                      (A)  the state trust company has suffered or will
 85-8    probably suffer financial loss or other damage;
 85-9                      (B)  the interests of the trust company's clients
85-10    have been or could be prejudiced; or
85-11                      (C)  the person has received financial gain or
85-12    other benefit by reason of the violation; and
85-13                (3)  that action by the person:
85-14                      (A)  involves personal dishonesty on the part of
85-15    the person; or
85-16                      (B)  demonstrates wilful or continuing disregard
85-17    for the safety or soundness of the state trust company.
85-18          (b)  Section 4.012, Chapter 344, Acts of the 76th
85-19    Legislature, Regular Session, 1999, is repealed.
85-20          SECTION 6.018.  (a)  Section 185.007(a), Finance Code, is
85-21    amended to conform to Section 4.013, Chapter 344, Acts of the 76th
85-22    Legislature, Regular Session, 1999, to read as follows:
85-23          (a)  Without the prior written approval of the banking
85-24    commissioner, a person subject to a final and enforceable removal
85-25    or prohibition order issued by the banking commissioner under this
85-26    subchapter may not:
85-27                (1)  serve as a director, officer, or employee of a
 86-1    [any] state trust company, state bank, or other entity chartered or
 86-2    licensed by the banking commissioner under the laws of this state
 86-3    while the order is in effect, including an interstate branch, trust
 86-4    office, or representative office in this state of an out-of-state
 86-5    bank, trust company, or foreign bank;
 86-6                (2)  directly or indirectly participate in any manner
 86-7    in the management of such an entity;
 86-8                (3)  directly or indirectly vote for a director of such
 86-9    an entity; or
86-10                (4)  solicit, procure, transfer, attempt to transfer,
86-11    vote, or attempt to vote a proxy, consent, or authorization with
86-12    respect to voting rights in such an entity.
86-13          (b)  Section 4.013, Chapter 344, Acts of the 76th
86-14    Legislature, Regular Session, 1999, is repealed.
86-15          SECTION 6.019.  (a)  Section 186.104(a), Finance Code, is
86-16    amended to conform to Section 4.016, Chapter 344, Acts of the 76th
86-17    Legislature, Regular Session, 1999, to read as follows:
86-18          (a)  A state trust company shall publish notice of its
86-19    pending dissolution in a newspaper of general circulation in each
86-20    community where its home office or an additional trust office [a
86-21    branch] is located:
86-22                (1)  at least once each week for eight consecutive
86-23    weeks; or
86-24                (2)  at other times specified by the banking
86-25    commissioner or rules adopted under this subtitle.
86-26          (b)  Section 4.016, Chapter 344, Acts of the 76th
86-27    Legislature, Regular Session, 1999, is repealed.
 87-1          SECTION 6.020.  (a)  Section 186.106, Finance Code, is
 87-2    amended to conform to Section 4.015, Chapter 344, Acts of the 76th
 87-3    Legislature, Regular Session, 1999, to read as follows:
 87-4          Sec. 186.106.  OFFICES TO REMAIN OPEN.  Unless the banking
 87-5    commissioner directs or consents otherwise, the home office and all
 87-6    additional trust [branch] offices of a state trust company
 87-7    initiating voluntary dissolution shall remain open for business
 87-8    during normal business hours until the last date specified in
 87-9    published notices for presentation of claims, withdrawal of
87-10    accounts, and redemption of property.
87-11          (b)  Section 4.015, Chapter 344, Acts of the 76th
87-12    Legislature, Regular Session, 1999, is repealed.
87-13          SECTION 6.021.  (a)  Section 186.108(d), Finance Code, is
87-14    amended to conform to Section 4.017, Chapter 344, Acts of the 76th
87-15    Legislature, Regular Session, 1999, to read as follows:
87-16          (d)  After distribution of all remaining assets under
87-17    Subsection (c), the state trust company shall file with the
87-18    department:
87-19                (1)  an affidavit and schedules sworn to or affirmed by
87-20    a majority of the board or managing participants, showing the
87-21    distribution to each shareholder, participant, or
87-22    participant-transferee;
87-23                (2)  all copies of reports of examination of the state
87-24    trust company in its possession;
87-25                (3)  its original charter or an affidavit stating that
87-26    the original charter is lost; and
87-27                (4)  any [branch] certificates of authority for
 88-1    additional trust offices.
 88-2          (b)  Section 4.017, Chapter 344, Acts of the 76th
 88-3    Legislature, Regular Session, 1999, is repealed.
 88-4          SECTION 6.022.  (a)  Section 186.205(a), Finance Code, is
 88-5    amended to conform to Section 4.018, Chapter 344, Acts of the 76th
 88-6    Legislature, Regular Session, 1999, to read as follows:
 88-7          (a)  As soon as reasonably practicable after initiation of
 88-8    the receivership proceeding, the receiver shall publish notice, in
 88-9    a newspaper of general circulation in each community where the
88-10    state trust company's home office or any additional trust office [a
88-11    branch] is located.  The notice must state that:
88-12                (1)  the state trust company has been closed for
88-13    liquidation;
88-14                (2)  clients and creditors must present their claims
88-15    for payment on or before a specific date; and
88-16                (3)  all safe deposit box holders and bailors of
88-17    property left with the state trust company should remove their
88-18    property not later than a specified date.
88-19          (b)  Section 4.018, Chapter 344, Acts of the 76th
88-20    Legislature, Regular Session, 1999, is repealed.
88-21          SECTION 6.023.  (a)  Section 199.002, Finance Code, is
88-22    amended to conform to Section 4.020, Chapter 344, Acts of the 76th
88-23    Legislature, Regular Session, 1999, to read as follows:
88-24          Sec. 199.002.  AUTHORITY TO ACT AS NOTARY PUBLIC.  A notary
88-25    public is not disqualified from taking an acknowledgment or proof
88-26    of a written instrument as provided by Section 406.016, Government
88-27    Code, solely because of the person's ownership of stock or
 89-1    participation interest in or employment by a [state] trust
 89-2    institution [company] that is an interested party in the underlying
 89-3    transaction, including a state trust company or a trust institution
 89-4    organized under the laws of another state that lawfully maintains
 89-5    an office in this state.
 89-6          (b)  Section 4.020, Chapter 344, Acts of the 76th
 89-7    Legislature, Regular Session, 1999, is repealed.
 89-8          SECTION 6.024.  (a)  Section 199.003, Finance Code, is
 89-9    amended to conform to Section 4.022, Chapter 344, Acts of the 76th
89-10    Legislature, Regular Session, 1999, to read as follows:
89-11          Sec. 199.003.  SUCCESSION OF TRUST POWERS.  (a)  If, at the
89-12    time of a merger, reorganization, conversion, [or] sale of
89-13    substantially all of its assets under Chapter 182 or 187 or other
89-14    applicable law, or sale of substantially all of its trust accounts
89-15    and related activities at a separate branch or trust office, a
89-16    reorganizing or selling state trust company is acting as trustee,
89-17    guardian, executor, or administrator, or in another fiduciary
89-18    capacity, a [the] successor or purchasing trust institution with
89-19    sufficient fiduciary authority may [entity with fiduciary powers
89-20    may, without the necessity of judicial action or action by the
89-21    creator of the trust,] continue the office, trust, or fiduciary
89-22    relationship:
89-23                (1)  without the necessity of judicial action or action
89-24    by the creator of the office, trust, or fiduciary relationship; and
89-25                (2)  without regard to whether the successor or
89-26    purchasing trust institution meets qualification requirements
89-27    specified in an instrument creating the office, trust, or fiduciary
 90-1    relationship other than a requirement related to geographic locale
 90-2    of account administration, including requirements as to
 90-3    jurisdiction of incorporation, location of principal office, or
 90-4    type of financial institution.
 90-5          (b)  The successor or purchasing trust institution [entity]
 90-6    may perform all the duties and exercise all the powers connected
 90-7    with or incidental to the fiduciary relationship in the same manner
 90-8    as if the successor or purchasing trust institution [entity] had
 90-9    been originally designated as the fiduciary.
90-10          (b)  Section 4.022, Chapter 344, Acts of the 76th
90-11    Legislature, Regular Session, 1999, is repealed.
90-12          SECTION 6.025.  (a)  Section 199.004, Finance Code, is
90-13    amended to conform to Section 4.023, Chapter 344, Acts of the 76th
90-14    Legislature, Regular Session, 1999, to read as follows:
90-15          Sec. 199.004.  DISCOVERY OF CLIENT RECORDS.  Civil discovery
90-16    of a client record maintained by a trust institution, including a
90-17    state trust company or a trust institution organized under the laws
90-18    of another state that lawfully maintains an office in this state,
90-19    is governed by Section 59.006 [30.007, Civil Practice and Remedies
90-20    Code].
90-21          (b)  Section 4.023, Chapter 344, Acts of the 76th
90-22    Legislature, Regular Session, 1999, is repealed.
90-23          SECTION 6.026.  (a)  Section 199.005, Finance Code, is
90-24    amended to conform to Section 4.024, Chapter 344, Acts of the 76th
90-25    Legislature, Regular Session, 1999, to read as follows:
90-26          Sec. 199.005.  COMPLIANCE REVIEW COMMITTEE.  A trust company
90-27    may establish a compliance review committee as provided by Section
 91-1    59.009. [(a)  A state trust company or an affiliate of a state
 91-2    trust company, including its holding company, may establish a
 91-3    compliance review committee to test, review, or evaluate the
 91-4    institution's conduct, transactions, or potential transactions for
 91-5    the purpose of monitoring and improving or enforcing compliance
 91-6    with:]
 91-7                [(1)  a statutory or regulatory requirement;]
 91-8                [(2)  financial reporting to a governmental agency;]
 91-9                [(3)  the policies and procedures of the state trust
91-10    company or its affiliates; or]
91-11                [(4)  safe, sound, and fair lending practices.]
91-12          [(b)  Except as provided by Subsection (c):]
91-13                [(1)  a compliance review document is confidential and
91-14    is not discoverable or admissible in evidence in a civil action;]
91-15                [(2)  an individual serving on a compliance review
91-16    committee or acting under the direction of a compliance review
91-17    committee may not be required to testify in a civil action as to:]
91-18                      [(A)  the contents or conclusions of a compliance
91-19    review document; or]
91-20                      [(B)  an action taken or discussions conducted by
91-21    or for a compliance review committee; and]
91-22                [(3)  a compliance review document or an action taken
91-23    or discussion conducted by or for a compliance review committee
91-24    that is disclosed to a governmental agency remains confidential and
91-25    is not discoverable or admissible in a civil action.]
91-26          [(c)  Subsection (b)(2) does not apply to an individual who
91-27    has management responsibility for the operations, records,
 92-1    employees, or activities being examined or evaluated by the
 92-2    compliance review committee.]
 92-3          [(d)  This section does not limit the discovery or
 92-4    admissibility in a civil action of a document that is not a
 92-5    compliance review document.]
 92-6          [(e)  In this section:]
 92-7                [(1)  "Civil action" means a civil proceeding pending
 92-8    in a court or other adjudicatory tribunal with jurisdiction to
 92-9    issue a request or subpoena for records, including a voluntary or
92-10    required alternative dispute resolution mechanism under which a
92-11    party may compel the production of records.  The term does not
92-12    include an examination or enforcement proceeding initiated by the
92-13    Federal Deposit Insurance Corporation or its successor and the
92-14    board of governors of the Federal Reserve System or its successor,
92-15    in exercise of their jurisdiction.]
92-16                [(2)  "Compliance review document" means a document
92-17    prepared for or created by a compliance review committee.]
92-18          (b)  Section 4.024, Chapter 344, Acts of the 76th
92-19    Legislature, Regular Session, 1999, is repealed.
92-20          SECTION 6.027.  Sections 181.002(a)(3), (6), (16), and (20),
92-21    Finance Code, are repealed to conform to Section 9.002(b)(1),
92-22    Chapter 344, Acts of the 76th Legislature, Regular Session, 1999.
92-23          SECTION 6.028.  Section 154.258(a), Finance Code, is amended
92-24    to correct a reference to read as follows:
92-25          (a)  Money in a prepaid funeral benefits trust may be
92-26    invested only in:
92-27                (1)  demand deposits, savings accounts, certificates of
 93-1    deposit, or other accounts issued by financial institutions if the
 93-2    amounts deposited in those accounts are fully covered by federal
 93-3    deposit insurance or otherwise fully secured by a separate fund of
 93-4    securities in the manner provided by Section 184.301, Finance Code
 93-5    [5.401, Texas Trust Company Act (Article 342a-5.401, Vernon's Texas
 93-6    Civil Statutes)], and rules adopted under that section;
 93-7                (2)  bonds, evidences of indebtedness, or obligations
 93-8    of the United States or an instrumentality of the United States;
 93-9                (3)  bonds, evidences of indebtedness, or obligations
93-10    the principal and interest of which are guaranteed by the full
93-11    faith and credit of the United States;
93-12                (4)  bonds of a state or local government that are
93-13    exempt from federal income taxation and that are rated:
93-14                      (A)  "Aa" or better by Moody's bond rating
93-15    service; or
93-16                      (B)  "AA" or better by Standard and Poor's bond
93-17    rating service;
93-18                (5)  bonds, evidences of indebtedness, or obligations
93-19    of corporations organized under state or federal law and that are
93-20    rated:
93-21                      (A)  "A" or better by Moody's bond rating
93-22    service; or
93-23                      (B)  "A" or better by Standard and Poor's bond
93-24    rating service;
93-25                (6)  notes, evidences of indebtedness, or participation
93-26    in notes or evidences of indebtedness, secured by a first lien on
93-27    real property located in the United States, if the amount of each
 94-1    obligation does not exceed 90 percent of the value of the real
 94-2    property securing that obligation;
 94-3                (7)  common stock of a corporation that is organized
 94-4    under state or federal law and:
 94-5                      (A)  has a net worth of at least $1 million; or
 94-6                      (B)  will have a net worth of at least $1 million
 94-7    after completion of a securities offering to which the trust is
 94-8    subscribing;
 94-9                (8)  preferred stock of a corporation organized under
94-10    state or federal law and that is rated:
94-11                      (A)  "Baa" or better by Moody's bond rating
94-12    service; or
94-13                      (B)  "BBB" or better by Standard and Poor's bond
94-14    rating service;
94-15                (9)  investments not covered by this subsection,
94-16    including real property, oil and gas interests, and limited
94-17    partnerships;
94-18                (10)  mutual funds, collective investment funds, or
94-19    similar participative investment funds, the assets of which are
94-20    invested only in investments that are permitted under this section
94-21    and that, if aggregated with other investments, meet the percentage
94-22    limitations specified by this section; and
94-23                (11)  other investments the department approves in
94-24    writing.
94-25          SECTION 6.029.  Section 105A(d), Texas Probate Code, is
94-26    amended to correct a reference to read as follows:
94-27          (d)  The provisions hereof are in addition to, and not a
 95-1    limitation on, the provisions of Subtitle F or G, Title 3, Finance
 95-2    Code[, and the Texas Trust Company Act (Article 342a-1.001 et seq.,
 95-3    Vernon's Texas Civil Statutes)].
 95-4          SECTION 6.030.  Section B, Article 2.31, Texas Non-Profit
 95-5    Corporation Act (Article 1396-2.31, Vernon's Texas Civil Statutes),
 95-6    is amended to correct a reference to read as follows:
 95-7          B.  Any corporation (or person or entity assisting such
 95-8    corporation) described in this article shall have immunity from
 95-9    suit (including both a defense to liability and the right not to
95-10    bear the cost, burden, and risk of discovery and trial) as to any
95-11    claim alleging that the corporation's role as trustee of a trust
95-12    described in this article constitutes engaging in the trust
95-13    business in a manner requiring a state charter as defined in
95-14    Section 181.002(a)(9), Finance Code [1.002(a)(9), Texas Trust
95-15    Company Act (Article 342a-1.002, Vernon's Texas Civil Statutes)].
95-16    An interlocutory appeal may be taken if a court denies or otherwise
95-17    fails to grant a motion for summary judgment that is based on an
95-18    assertion of the immunity provided in this subsection.
95-19                    PART 2.  OTHER CHANGES RELATING TO
95-20                               FINANCE CODE
95-21          SECTION 6.101. (a)  Section 61.002(9), Finance Code, is
95-22    amended to conform to Section 3, Chapter 994, Acts of the 75th
95-23    Legislature, Regular Session, 1997, to read as follows:
95-24                (9)  "Federal association" means a savings and loan
95-25    association incorporated under the Home Owners' Loan Act (12 U.S.C.
95-26    Section 1461 et seq.)[, the principal business office of which is
95-27    located in this state].
 96-1          (b)  Section 3, Chapter 994, Acts of the 75th Legislature,
 96-2    Regular Session, 1997, is repealed.
 96-3          SECTION 6.102. Section 153.117(a), Finance Code, as amended
 96-4    by Chapters 62, 344, and 356, Acts of the 76th Legislature, Regular
 96-5    Session, 1999, is reenacted and amended to read as follows:
 96-6          (a)  The following persons are not required to be licensed
 96-7    under this chapter:
 96-8                (1)  a federally insured financial institution, as that
 96-9    term is defined by Section 201.101 [as that term is defined by
96-10    state law governing bank holding companies and interstate bank
96-11    operations], that is organized under the laws of this state,
96-12    another state, or the United States;
96-13                (2)  a foreign bank branch or agency in the United
96-14    States established under the federal International Banking Act of
96-15    1978 (12 U.S.C. Section 3101 et seq.), as amended;
96-16                (3) [(2)]  a license holder under Chapter 152, except
96-17    that the license holder is required to comply with the other
96-18    provisions of this chapter to the extent the license holder engages
96-19    in currency exchange, transportation, or transmission transactions;
96-20                (4)  a person registered as a securities dealer under
96-21    The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
96-22    Statutes);
96-23                (5)  an attorney or title company that in connection
96-24    with a real property transaction receives and disburses only
96-25    domestic currency on behalf of a party to the transaction;
96-26                (6)  a Federal Reserve bank;
96-27                (7)  a clearinghouse exercising bank payment,
 97-1    collection, and clearing functions; or
 97-2                (8)  another person that the commissioner may exempt by
 97-3    rule if the commissioner finds that the licensing of the person is
 97-4    not necessary or appropriate to achieve the objectives of this
 97-5    chapter.
 97-6          SECTION 6.103. (a)  The amendments made by this section are
 97-7    to correct references to Section 30.007, Civil Practice and
 97-8    Remedies Code.
 97-9          (b)  Section 35.203(g), Finance Code, is amended to read as
97-10    follows:
97-11          (g)  A subpoena issued under this section to a financial
97-12    institution is not subject to Section 59.006 [30.007, Civil
97-13    Practice and Remedies Code].
97-14          (c)  Section 36.214(f), Finance Code, is amended to read as
97-15    follows:
97-16          (f)  A subpoena issued under this section to a financial
97-17    institution is not subject to Section 59.006 [30.007, Civil
97-18    Practice and Remedies Code, as added by Chapter 914, Acts of the
97-19    74th Legislature, Regular Session, 1995].
97-20          (d)  Section 36.224(d), Finance Code, is amended to read as
97-21    follows:
97-22          (d)  Records of a liquidated bank are not government records
97-23    for any purpose, including Chapter 552, Government Code, but shall
97-24    be preserved and disposed of as if they were records of the
97-25    department under Chapter 441, Government Code. Those records are
97-26    confidential as provided by:
97-27                (1)  Subchapter D, Chapter 31;
 98-1                (2)  Section 59.006; and
 98-2                (3)  rules adopted under this subtitle[; and]
 98-3                [(3)  Section 30.007, Civil Practice and Remedies Code,
 98-4    as added by Chapter 914, Acts of the 74th Legislature, Regular
 98-5    Session, 1995].
 98-6          (e)  Section 185.202(g), Finance Code, is amended to read as
 98-7    follows:
 98-8          (g)  A subpoena issued under this section to a financial
 98-9    institution is not subject to Section 59.006 [30.007, Civil
98-10    Practice and Remedies Code].
98-11          (f)  Section 186.214(f), Finance Code, is amended to read as
98-12    follows:
98-13          (f)  A subpoena issued under this section to a financial
98-14    institution is not subject to Section 59.006 [30.007, Civil
98-15    Practice and Remedies Code].
98-16          (g)  Section 186.224(d), Finance Code, is amended to read as
98-17    follows:
98-18          (d)  Records of a liquidated state trust company are not
98-19    government records for any purpose, including Chapter 552,
98-20    Government Code, but shall be preserved and disposed of as if they
98-21    were records of the department under Chapter 441, Government Code.
98-22    Those records are confidential as provided by:
98-23                (1)  Section 59.006;
98-24                (2)  Subchapter D, Chapter 181; and
98-25                (3) [(2)]  rules adopted under this subtitle[; and]
98-26                [(3)  Section 30.007, Civil Practice and Remedies
98-27    Code].
 99-1             ARTICLE 7.  CHANGES RELATING TO GOVERNMENT CODE:
 99-2                           ADOPTION OF TITLE 11
 99-3                 PART 1.  TITLE 11 OF THE GOVERNMENT CODE
 99-4          SECTION 7.001. The Government Code is amended by adding Title
 99-5    11 to read as follows:
 99-6             TITLE 11.  STATE SYMBOLS AND HONORS; PRESERVATION
 99-7                   SUBTITLE A.  STATE SYMBOLS AND HONORS
 99-8                         CHAPTER 3100.  STATE FLAG
 99-9                     SUBCHAPTER A.  GENERAL PROVISIONS
99-10          Sec. 3100.001.  STATE FLAG.  The state flag is the 1839
99-11    national flag of the Republic of Texas.
99-12          Sec. 3100.002.  DESCRIPTION:  IN GENERAL.  (a)  The state
99-13    flag is a rectangle that:
99-14                (1)  has a width to length ratio of two to three; and
99-15                (2)  contains:
99-16                      (A)  one blue vertical stripe that has a width
99-17    equal to one-third the length of the flag;
99-18                      (B)  two equal horizontal stripes, the upper
99-19    stripe white, the lower stripe red, each having a length equal to
99-20    two-thirds the length of the flag; and
99-21                      (C)  one white, regular five-pointed star:
99-22                            (i)  located in the center of the blue
99-23    stripe;
99-24                            (ii)  oriented so that one point faces
99-25    upward; and
99-26                            (iii)  sized so that the diameter of a
99-27    circle passing through the five points of the star is equal to
 100-1   three-fourths the width of the blue stripe.
 100-2         (b)  The red and blue of the state flag are:
 100-3               (1)  the same colors used in the United States flag;
 100-4   and
 100-5               (2)  defined as numbers 193 (red) and 281 (dark blue)
 100-6   of the Pantone Matching System.
 100-7         (c)  The red, white, and blue of the state flag represent,
 100-8   respectively, bravery, purity, and loyalty.
 100-9         Sec. 3100.003.  DESCRIPTION UNDER GOVERNOR'S RULES.  In
100-10   addition to each requirement prescribed by Section 3100.002, the
100-11   governor by executive order published in the Texas Register may
100-12   prescribe changes or other rules relating to the description of the
100-13   state flag.
100-14         Sec. 3100.004.  STATE FLAG MOUNTED ON FLAGSTAFF.  (a)  If the
100-15   state flag is mounted on a flagstaff:
100-16               (1)  the flag should be attached at the peak of the
100-17   staff;
100-18               (2)  the staff should be at least 2-1/2 times as long
100-19   as the flag's hoist; and
100-20               (3)  if the staff has a finial, the finial should be a
100-21   star or a spearhead.
100-22         (b)  If the state flag is permanently mounted on a flagstaff:
100-23               (1)  the flag may be decorated with gold fringe; and
100-24               (2)  the staff may be decorated with gold cord or
100-25   tassels.
100-26           (Sections 3100.005-3100.050 reserved for expansion)
100-27                  SUBCHAPTER B.  DISPLAY OF STATE FLAG
 101-1         Sec. 3100.051.  DISPLAY:  IN GENERAL.  The state flag should
 101-2   be displayed:
 101-3               (1)  on each state or national holiday and on any
 101-4   special occasion of historical significance; and
 101-5               (2)  daily on or near the main administration building
 101-6   of each state institution.
 101-7         Sec. 3100.052.  DISPLAY OUTDOORS.  (a)  The state flag should
 101-8   not normally be displayed outdoors before sunrise or after sunset. 
 101-9         (b)  For patriotic effect, the state flag may be displayed
101-10   outdoors:
101-11               (1)  24 hours a day, if properly illuminated during
101-12   darkness; or
101-13               (2)  in the same circumstances that the flag of the
101-14   United States may be displayed.
101-15         (c)  The state flag should not be displayed outdoors during
101-16   inclement weather unless the flag is a weatherproof flag.
101-17         Sec. 3100.053.  ORIENTATION ON FLAGPOLE OR FLAGSTAFF.  If the
101-18   state flag is displayed on a flagpole or flagstaff, the white
101-19   stripe should be at the top of the flag, except as a signal of dire
101-20   distress in an instance of extreme danger to life or property.
101-21         Sec. 3100.054.  DISPLAY ON FLAGPOLE OR FLAGSTAFF WITH OTHER
101-22   FLAG:  IN GENERAL.  A flag or pennant, other than the flag of the
101-23   United States, displayed with the state flag:
101-24               (1)  should not be above the state flag; or
101-25               (2)  if the other flag or pennant is at the same height
101-26   as the state flag, should not be, from the perspective of an
101-27   observer, to the left of the state flag.
 102-1         Sec. 3100.055.  DISPLAY ON FLAGPOLE OR FLAGSTAFF WITH FLAG OF
 102-2   UNITED STATES.  (a)  If it is necessary for the state flag and the
 102-3   flag of the United States to be displayed on the same flagpole or
 102-4   flagstaff, the United States flag should be above the state flag.
 102-5         (b)  If the state flag and the flag of the United States are
 102-6   displayed on flagpoles or flagstaffs at the same location:
 102-7               (1)  the flags should be displayed on flagpoles or
 102-8   flagstaffs of the same height;
 102-9               (2)  the flags should be of approximately equal size;
102-10               (3)  the flag of the United States should be, from the
102-11   perspective of an observer, to the left of the state flag;
102-12               (4)  the flag of the United States should be hoisted
102-13   before the state flag is hoisted; and
102-14               (5)  the state flag should be lowered before the flag
102-15   of the United States is lowered.
102-16         Sec. 3100.056.  DISPLAY ON FLAGPOLE OR FLAGSTAFF WITH FLAGS
102-17   OF MUNICIPALITIES, LOCALITIES, OR ORGANIZATIONS. (a)  If the state
102-18   flag is displayed on a flagpole or flagstaff with a group of flags
102-19   or pennants of municipalities, localities, or organizations that
102-20   are displayed on flagpoles or flagstaffs, the state flag should be
102-21   at the center and at the highest point of the group.
102-22         (b)  If the state flag is displayed on the same halyard as a
102-23   flag or pennant of a municipality, locality, or organization, the
102-24   the state flag should be at the peak.
102-25         (c)  If the state flag and the flag or pennant of a
102-26   municipality, locality, or organization are displayed on adjacent
102-27   flagpoles or flagstaffs:
 103-1               (1)  the state flag should be hoisted before the flag
 103-2   or pennant of the municipality, locality, or organization is
 103-3   hoisted; and
 103-4               (2)  the flag or pennant of the municipality, locality,
 103-5   or organization should be lowered before the state flag is lowered.
 103-6         Sec. 3100.057.  DISPLAY ON FLAGPOLE OR FLAGSTAFF WITH FLAGS
 103-7   OF OTHER STATES, OTHER NATIONS, OR INTERNATIONAL ORGANIZATIONS. (a)
 103-8   If the state flag is displayed with the flag of another state of
 103-9   the United States, of a nation other than the United States, or of
103-10   an international organization, the state flag:
103-11               (1)  should be, from the perspective of an observer, to
103-12   the left of the other flag on a separate flagpole or flagstaff; and
103-13               (2)  should not be above the other flag on the same
103-14   flagpole or flagstaff or on a taller flagpole or flagstaff than the
103-15   flagpole or flagstaff on which the other flag is displayed.
103-16         (b)  This section does not apply to the United States,
103-17   including the armed services, if federal custom or practice
103-18   requires another manner of display.
103-19         Sec. 3100.058.  DISPLAY WITH OTHER FLAG ON CROSSED
103-20   FLAGSTAFFS. (a)  If the state flag is displayed with another flag,
103-21   other than the flag of the United States, against a wall on crossed
103-22   flagstaffs, the state flag should:
103-23               (1)  be, from the perspective of an observer, to the
103-24   left of the other flag; and
103-25               (2)  have its flagstaff in front of the flagstaff of
103-26   the other flag.
103-27         (b)  If the state flag and the flag of the United States are
 104-1   displayed against a wall on crossed flagstaffs, the state flag
 104-2   should:
 104-3               (1)  be, from the perspective of an observer, to the
 104-4   right of the flag of the United States; and
 104-5               (2)  have its flagstaff behind the flagstaff of the
 104-6   United States flag.
 104-7         Sec. 3100.059.  HORIZONTAL AND VERTICAL DISPLAY. (a)  If the
 104-8   state flag is displayed horizontally, the white stripe should be
 104-9   above the red stripe and, from the perspective of an observer, to
104-10   the right of the blue stripe.
104-11         (b)  If the state flag is displayed vertically:
104-12               (1)  the blue stripe should be above the white and red
104-13   stripes; and
104-14               (2)  the white stripe should be, from the perspective
104-15   of an observer, to the left of the red stripe.
104-16         Sec. 3100.060.  DISPLAY FROM OR IN BUILDING. (a)  If the
104-17   state flag is displayed from a flagstaff that projects horizontally
104-18   or at an angle from a building, the top of the flag should be
104-19   placed at the peak of the staff unless the flag is at half-staff.
104-20         (b)  If the state flag is suspended over a sidewalk from a
104-21   rope that extends from a building to a pole at the edge of a
104-22   sidewalk, the flag should be hoisted from the building so that the
104-23   white stripe is nearest the pole.
104-24         (c)  If the state flag is suspended across a corridor or
104-25   lobby in a building that has only one main entrance, the flag
104-26   should be suspended vertically so that the white stripe is, from
104-27   the perspective of an observer who is entering the building, to the
 105-1   left of the red stripe. If the building has more than one main
 105-2   entrance, the state flag should be suspended vertically near the
 105-3   center of the corridor or lobby.  If the entrances are on the east
 105-4   and west faces of the building, the white stripe should be to the
 105-5   north.  If the entrances are on the north and south faces of the
 105-6   building, the white stripe should be to the east. If there are
 105-7   entrances on more than two faces of the building, the white stripe
 105-8   should be to the east.
 105-9         (d)  If the state flag is displayed in a window, the white
105-10   stripe should be above the red stripe and, from the perspective of
105-11   an observer who is outside the window, to the right of the blue
105-12   stripe.
105-13         Sec. 3100.061.  DISPLAY OVER STREET. If the state flag is
105-14   displayed over a street, the flag should be suspended vertically
105-15   with the blue stripe above the white and red stripes.  If the
105-16   street is an east-west street, the white stripe should be to the
105-17   north.  If the street is a north-south street, the white stripe
105-18   should be to the east.
105-19         Sec. 3100.062.  DISPLAY ON SPEAKER'S PLATFORM. (a)  If the
105-20   state flag is displayed flat on a speaker's platform, the flag
105-21   should be displayed above and behind the speaker.
105-22         (b)  If the state flag and the flag of the United States are
105-23   displayed on a speaker's platform, the state flag should be, from
105-24   the perspective of an observer, to the right of the United States
105-25   flag.
105-26         (c)  The use of the state flag to drape the front of a
105-27   platform is governed by Section 3100.070(c).
 106-1         Sec. 3100.063.  DISPLAY ON CASKET. (a)  If the state flag is
 106-2   used to cover a casket, the flag should be placed so that:
 106-3               (1)  the blue stripe is at the head of the casket; and
 106-4               (2)  the white stripe is over the left shoulder of the
 106-5   casket.
 106-6         (b)  The state flag should not be lowered in the grave or
 106-7   allowed to touch the ground.
 106-8         Sec. 3100.064.  DISPLAY ON FLAGSTAFF ON MOTOR VEHICLE. If the
 106-9   state flag is displayed on a flagstaff on a motor vehicle, the
106-10   staff should be attached firmly to the chassis or clamped to the
106-11   right fender.  If the flag of the United States and the state flag
106-12   are displayed on flagstaffs on a motor vehicle:
106-13               (1)  the staff of the flag of the United States should
106-14   be clamped to the right fender of the vehicle; and
106-15               (2)  the staff of the state flag should be clamped to
106-16   the left fender of the vehicle.
106-17         Sec. 3100.065.  DISPLAY AT HALF-STAFF. (a)  If the state flag
106-18   is to be displayed at half-staff, the flag should be hoisted to the
106-19   peak of the flagpole for an instant and then lowered to the
106-20   half-staff position.
106-21         (b)  Before the state flag is lowered for the day, it should
106-22   first be raised to the peak of the flagpole.
106-23         (c)  On Memorial Day, the state flag should be displayed at
106-24   half-staff until noon and at that time raised to the peak of the
106-25   flagpole.
106-26         (d)  The state flag should be displayed at half-staff on
106-27   Peace Officers Memorial Day, May 15, unless that date is also Armed
 107-1   Forces Day.
 107-2         (e)  By order of the governor, the state flag shall be
 107-3   displayed at half-staff on a person's death as a mark of respect to
 107-4   the memory of that person.
 107-5         Sec. 3100.066.  CARRYING OF STATE FLAG: IN GENERAL. The state
 107-6   flag should, when practicable, be carried aloft and free, not flat
 107-7   or horizontally.
 107-8         Sec. 3100.067.  CARRYING IN PROCESSION WITH OTHER FLAGS. (a)
 107-9   If the state flag is carried in a procession with another flag,
107-10   other than the flag of the United States, the state flag should be
107-11   on the marching right.  If there is a line of other flags in the
107-12   procession, the state flag should be in front of the center of that
107-13   line.
107-14         (b)  If the flag of the United States is carried in a
107-15   procession with the state flag, the flag of the United States
107-16   should be on the marching right.
107-17         Sec. 3100.068.  HOISTING AND LOWERING; PASSING IN PARADE OR
107-18   REVIEW. (a)  The state flag should be hoisted briskly and lowered
107-19   ceremoniously.
107-20         (b)  During the ceremony of hoisting or lowering the state
107-21   flag or if the flag is passing in a parade or in review:
107-22               (1)  each citizen of this state who is present and not
107-23   in uniform should:
107-24                     (A)  face the state flag and stand at attention
107-25   with the person's right hand over the heart; and
107-26                     (B)  if wearing a head covering that is easy to
107-27   remove, remove the head covering with the right hand and hold it at
 108-1   the person's left shoulder, with the person's hand over the heart;
 108-2               (2)  each person who is present and in uniform should
 108-3   make the military salute; and
 108-4               (3)  each person who is present but not a citizen of
 108-5   this state should stand at attention.
 108-6         (c)  The salute to the state flag in a moving column shall be
 108-7   made at the moment the state flag passes that person.
 108-8         Sec. 3100.069.  STATE FLAG AS FEATURE OF UNVEILING CEREMONY.
 108-9   (a)  The state flag should form a distinctive feature of the
108-10   ceremony of unveiling a statue or monument.
108-11         (b)  The state flag should not be used as the covering for
108-12   the statue or monument.
108-13         Sec. 3100.070.  LIMITATIONS ON DISPLAY. (a)  The state flag
108-14   should not:
108-15               (1)  touch anything beneath it, including the ground or
108-16   floor;
108-17               (2)  be dipped to any person or thing, except as a mark
108-18   of honor for the United States flag;
108-19               (3)  trail in water;
108-20               (4)  have placed on any part of it, or attached to it,
108-21   any mark, word, figure, design, picture, or drawing;
108-22               (5)  be used or stored in a manner in which it can
108-23   easily be soiled or damaged;
108-24               (6)  be used as a receptacle for receiving, holding,
108-25   carrying, or delivering anything;
108-26               (7)  be displayed on a float in a parade, except from a
108-27   staff or in the manner provided by Section 3100.059;
 109-1               (8)  be draped over the hood, top, side, or back of any
 109-2   vehicle, train, boat, or aircraft;
 109-3               (9)  be used as bedding or drapery;
 109-4               (10)  be festooned or drawn back or up in folds, but
 109-5   instead allowed to fall free; or
 109-6               (11)  be used as a covering for a ceiling.
 109-7         (b)  Advertising should not be fastened to a flagpole,
 109-8   flagstaff, or halyard on which the state flag is displayed.
 109-9         (c)  Bunting of blue, white, and red, arranged with the blue
109-10   above, the white in the middle, and the red below, should be used
109-11   instead of the state flag to cover a speaker's desk or to drape the
109-12   front of a platform and for decoration in general.
109-13         Sec. 3100.071.  AUTHORITY OF GOVERNOR. By executive order
109-14   published in the Texas Register, the governor may:
109-15               (1)  change or repeal any requirement relating to the
109-16   display of the state flag provided by Sections 3100.051-3100.070;
109-17   or
109-18               (2)  prescribe additional requirements concerning the
109-19   display of the state flag.
109-20         Sec. 3100.072.  LIMITATIONS ON GOVERNMENTAL SUBDIVISION OR
109-21   AGENCY. (a)  A governmental subdivision or agency may not enact or
109-22   enforce a law that prohibits:
109-23               (1)  the display of:
109-24                     (A)  a municipal flag;
109-25                     (B)  the state flag;
109-26                     (C)  the flag of another state of the United
109-27   States;
 110-1                     (D)  the United States flag; or
 110-2                     (E)  the flag of a nation other than the United
 110-3   States; or
 110-4               (2)  any conduct covered by this subchapter.
 110-5         (b)  This section does not prohibit a governmental
 110-6   subdivision or agency from enacting or enforcing a law to protect
 110-7   the public health or safety.
 110-8           (Sections 3100.073-3100.100 reserved for expansion
 110-9            SUBCHAPTER C. PLEDGE OF ALLEGIANCE TO STATE FLAG
110-10         Sec. 3100.101.  PLEDGE. The pledge of allegiance to the state
110-11   flag is:  "Honor the Texas flag; I pledge allegiance to thee,
110-12   Texas, one and indivisible."
110-13         Sec. 3100.102.  OCCASIONS AT WHICH PLEDGE MAY BE RECITED. The
110-14   pledge of allegiance to the state flag may be recited at any:
110-15               (1)  public or private meeting at which the pledge of
110-16   allegiance to the United States flag is recited; and
110-17               (2)  state historical event or celebration.
110-18         Sec. 3100.103.  ORDER OF RECITATION. The pledge of allegiance
110-19   to the flag of the United States should be recited before the
110-20   pledge of allegiance to the state flag if both are recited.
110-21         Sec. 3100.104.  RECITING PLEDGE. If the pledge to the state
110-22   flag is recited, each person who is present and:
110-23               (1)  not in uniform should:
110-24                     (A)  face the state flag and stand at attention
110-25   with the person's right hand over the heart;
110-26                     (B)  if wearing a head covering that is easy to
110-27   remove, remove that head covering with the right hand and hold it
 111-1   at the person's left shoulder, with the person's hand over the
 111-2   heart; and
 111-3                     (C)  recite the pledge; or
 111-4               (2)  in uniform should remain silent, face the flag,
 111-5   and make the military salute.
 111-6           (Sections 3100.105-3100.150 reserved for expansion
 111-7                 SUBCHAPTER D.  RETIREMENT OF STATE FLAG
 111-8         Sec. 3100.151.  MANNER OF RETIREMENT. (a)  If a state flag is
 111-9   no longer used or useful as an emblem for display, it should be
111-10   destroyed, preferably by burning, in a ceremony or another
111-11   dignified way that emphasizes its honor as a fitting emblem for
111-12   this state.
111-13         (b)  It is encouraged that retirement of the state flag be a
111-14   public ceremony under the direction of uniformed personnel
111-15   representing a state or national military service or a patriotic
111-16   society, but the state flag may be retired in a private ceremony.
111-17         Sec. 3100.152.  CONDUCT OF RETIREMENT CEREMONY. (a)  A
111-18   retirement ceremony for a state flag should be conducted with the
111-19   honor and respect inherent in the traditions of this state.
111-20         (b)  During a retirement ceremony:
111-21               (1)  each citizen of this state who is present and not
111-22   in uniform should:
111-23                     (A)  stand at attention with the person's right
111-24   hand over the heart; and
111-25                     (B)  if wearing a head covering that is easy to
111-26   remove, remove the head covering with the person's right hand and
111-27   hold it at the person's left shoulder, with the right hand over the
 112-1   heart;
 112-2               (2)  each person who is present and in uniform should
 112-3   make the military salute at the appropriate time as designated by
 112-4   the ceremony; and
 112-5               (3)  each person who is present but not a citizen of
 112-6   this state should stand at attention.
 112-7         (c)  In a retirement ceremony in which the flag is to be
 112-8   burned or buried, the flag may be retired as a whole or the colors
 112-9   of the flag may be separated for individual dedication, with the
112-10   separation taking place immediately before the retirement and
112-11   dedication ceremony.
112-12         (d)  The official retirement ceremony for the state flag
112-13   encouraged for public use is:
112-14         I am your Texas flag!
112-15         I was born January 25, 1839.
112-16         I am one of only two flags of an American state that has also
112-17         served as the symbol of an independent nation--The Republic
112-18         of Texas.
112-19         While you may honor me in retirement, the spirit I represent
112-20         will never retire!
112-21         I represent the spirit of Texas--Yesterday, Today, and
112-22         Tomorrow!
112-23         I represent the bravery of the Alamo and the Victory at San
112-24         Jacinto.
112-25         My spirit rode with the Texas Rangers over the Forts Trail of
112-26         the Big Country and herded cattle through the Fort Worth
112-27         stockyards.  I have sailed up Galveston Bay and kept a
 113-1         watchful eye over our El Paso del Norte.
 113-2         My colors are in the waters of the Red River and in the
 113-3         Bluebonnets of the Texas Hill Country.
 113-4         You'll find my spirit at the Light House of Palo Duro and in
 113-5         the sands of Padre Island;
 113-6         I am in the space station at Houston and atop the oil wells
 113-7         of West Texas.
 113-8         From the expanse of the Big Bend to the Riverwalk of San
 113-9         Antone--all of Texas is my home!
113-10         I wave over the cotton and grain fields of the High Plains,
113-11         and I am deep in the rich soil of the Rio Grande Valley.
113-12         I am proudly displayed under the Capitol Dome, and I fly high
113-13         above the concrete canyons of downtown Dallas.
113-14         You'll find my spirit in the East Texas piney woods and along
113-15         the Grandeur of the Rio Grande.
113-16         I represent Texas--every Child, Woman, and Man!
113-17         The blue field in me stands for the valor of our ancestors in
113-18         the battles for our country.
113-19         Let us retire the blue--Salute!
113-20         My white field stands for the purity in all our Texas hearts!
113-21         It represents the honor that each of us should pay to our
113-22         state each day.
113-23         Let us retire the white--Salute!
113-24         The red is for all of the men and women who have died in
113-25         service of our state--whether as members of the armed
113-26         services or as citizen Samaritans.
113-27         Let us retire the red--Salute!
 114-1         My lone, independent star is recognized worldwide because it
 114-2         represents ALL of Texas and stands for our unity as one for
 114-3         God, State, and Country.
 114-4         Let us retire the lone star--Salute!
 114-5         Join in the pledge to the Texas flag:
 114-6         "Honor the Texas flag; I pledge allegiance to thee, Texas,
 114-7         one  and  indivisible."
 114-8                      CHAPTER 3101.  STATE SYMBOLS
 114-9         Sec. 3101.001.  STATE SEAL. (a)  The state seal is as
114-10   provided by Section 19, Article IV, Texas Constitution.
114-11         (b)  The reverse side of the state seal contains a shield
114-12   displaying a depiction of:
114-13               (1)  the Alamo;
114-14               (2)  the cannon of the Battle of Gonzales; and
114-15               (3)  Vince's Bridge.
114-16         (c)  The shield on the reverse side of the state seal is
114-17   encircled by:
114-18               (1)  live oak and olive branches; and
114-19               (2)  the unfurled flags of:
114-20                     (A)  the Kingdom of France;
114-21                     (B)  the Kingdom of Spain;
114-22                     (C)  the United Mexican States;
114-23                     (D)  the Republic of Texas;
114-24                     (E)  the Confederate States of America; and
114-25                     (F)  the United States of America.
114-26         (d)  Above the shield is emblazoned the motto, "REMEMBER THE
114-27   ALAMO," and beneath the shield are the words, "TEXAS ONE AND
 115-1   INDIVISIBLE."
 115-2         (e)  A white five-pointed star hangs over the shield,
 115-3   centered between the flags.
 115-4         (f)  The secretary of state by rule shall adopt the standard
 115-5   design for the state seal, including the reverse side of the seal.
 115-6         Sec. 3101.002.  STATE ARMS. (a)  The state arms are a
 115-7   five-pointed white star, on an azure background, encircled by olive
 115-8   and live oak branches.
 115-9         (b)  The secretary of state by rule shall adopt the standard
115-10   design for the state arms.
115-11         Sec. 3101.003.  USE OF STATE SEAL. A law that requires the
115-12   use of the state seal does not require the use of the reverse of
115-13   the state seal or the state arms.
115-14         Sec. 3101.004.  STATE MOTTO. The state motto is "Friendship."
115-15         Sec. 3101.005.  STATE SONG. The state song, "Texas, Our
115-16   Texas" by William J. Marsh and Gladys Yoakum Wright, is as follows:
115-17         Texas, our Texas!  All hail the mighty State!
115-18         Texas, our Texas!  So wonderful so great!
115-19         Boldest and grandest, Withstanding ev'ry test;
115-20         O Empire wide and glorious, You stand supremely blest. 
115-21         Refrain:
115-22         God bless you Texas! And keep you brave and strong,
115-23         That you may grow in power and worth,
115-24         Thro'out the ages long.
115-25         Texas, O Texas!  Your freeborn single star,
115-26         Sends out its radiance to nations near and far.
115-27         Emblem of freedom!  It sets our hearts aglow,
 116-1         With thoughts of San Jacinto and glorious Alamo.
 116-2                              Refrain
 116-3         Texas, dear Texas!  From tyrant grip now free,
 116-4         Shines forth in splendor your star of destiny!
 116-5         Mother of heroes!  We come your children true,
 116-6         Proclaiming our allegiance, our faith, our love for
 116-7         you.
 116-8                              Refrain
 116-9         Sec. 3101.006.  PERFORMANCE OF STATE SONG. (a)  During the
116-10   performance of the state song:
116-11               (1)  when the state flag is displayed:
116-12                     (A)  each citizen of this state who is present
116-13   and not in uniform should:
116-14                           (i)  face the flag and stand at attention
116-15   with the person's right hand over the heart; and
116-16                           (ii)  if wearing a head covering that is
116-17   easy to remove, remove the head covering with the right hand and
116-18   hold it at the person's left shoulder, with the person's right hand
116-19   over the heart;
116-20                     (B)  each person who is present and in uniform
116-21   should make the military salute at the first note of the state song
116-22   and retain that position until the last note; and
116-23                     (C)  each person who is present but not a citizen
116-24   of this state should stand at attention; and
116-25               (2)  when the state flag is not displayed, each person
116-26   present should face toward the music and act in the same manner as
116-27   the person would if the state flag were displayed there.
 117-1         (b)  The state song should be performed after the national
 117-2   anthem if both are performed.
 117-3         Sec. 3101.007.  STATE BIRD. The state bird is the
 117-4   mockingbird.
 117-5         Sec. 3101.008.  STATE FLOWER. The state flower is the
 117-6   bluebonnet.
 117-7         Sec. 3101.009.  STATE TREE. The state tree is the pecan tree.
 117-8         Sec. 3101.010.  THRASHING PECANS; PENALTY. (a)  A person
 117-9   commits an offense if the person causes pecans to fall from a pecan
117-10   tree by any means, including by thrashing, unless the tree is
117-11   located on:
117-12               (1)  land owned by the person causing the pecans to
117-13   fall;
117-14               (2)  privately owned land, and the person causing the
117-15   pecans to fall has the written consent of the owner, lessee, or
117-16   authorized agent of the owner or lessee;
117-17               (3)  land owned by the state or a political subdivision
117-18   of the state and in the boundaries of a municipality, and the
117-19   person causing the pecans to fall has written consent from an
117-20   officer or agent of the agency or political subdivision controlling
117-21   the land or from the mayor of the municipality; or
117-22               (4)  land owned by the state or a political subdivision
117-23   of the state and outside the boundaries of a municipality, and the
117-24   person causing the pecans to fall has written consent from an
117-25   officer or agent of the agency or political subdivision controlling
117-26   the property or from the county judge of the county.
117-27         (b)  An offense under this section is a misdemeanor and on
 118-1   conviction is punishable by:
 118-2               (1)  a fine of not less than $5 or more than $300;
 118-3               (2)  confinement in the county jail for a term not to
 118-4   exceed three months; or
 118-5               (3)  both a fine and confinement.
 118-6         Sec. 3101.011.  STATE PLAYS. The following plays are official
 118-7   state plays of Texas:
 118-8               (1)  The Lone Star presented in Galveston Island State
 118-9   Park;
118-10               (2)  Texas presented in the Palo Duro Canyon State
118-11   Park;
118-12               (3)  Beyond the Sundown presented at the
118-13   Alabama-Coushatta Indian Reservation; and
118-14               (4)  Fandangle presented in Shackelford County.
118-15            CHAPTER 3102.  TEXAS DISTINGUISHED SERVICE MEDAL
118-16         Sec. 3102.001.  TEXAS DISTINGUISHED SERVICE MEDAL. The Texas
118-17   Distinguished Service Medal may be awarded to recognize persons who
118-18   reside in this state and who have achieved such conspicuous success
118-19   while performing outstanding service to the state and its citizens
118-20   as to reflect great credit on themselves, their professions, and
118-21   the state.
118-22         Sec. 3102.002.  TEXAS DISTINGUISHED SERVICE AWARDS
118-23   COMMITTEE:  DUTIES. The Texas Distinguished Service Awards
118-24   Committee shall consider and approve or reject, by majority vote,
118-25   recommendations for the award of the medal.
118-26         Sec. 3102.003.  AWARDS COMMITTEE: MEMBERSHIP; TERMS;
118-27   PRESIDING OFFICER; REIMBURSEMENT. (a)  The committee consists of
 119-1   six members appointed by the governor with the advice and consent
 119-2   of the senate.
 119-3         (b)  Committee members serve staggered six-year terms with
 119-4   the terms of two members expiring each odd-numbered year.
 119-5         (c)  The committee shall select one of its members to act as
 119-6   presiding officer of the committee for a term of one year, or until
 119-7   a successor is selected and has qualified.
 119-8         (d)  Members of the committee serve without pay but are
 119-9   entitled to reimbursement for actual and necessary expenses
119-10   incurred in the performance of their duties.
119-11         Sec. 3102.004.  RECOMMENDATIONS FOR AWARDS. Any person who
119-12   has personal knowledge of an achievement or service believed to
119-13   merit the award of the medal may submit a letter of recommendation
119-14   to the committee.  The letter must give an account of that
119-15   achievement or service and be accompanied by statements,
119-16   affidavits, records, photographs, or other material as may be
119-17   required to support and amplify the facts stated.
119-18         Sec. 3102.005.  LIMITATION ON AWARDS. (a)  Not more than five
119-19   persons may receive the medal in a calendar year, except that, in
119-20   exceptional circumstances, the governor may award one or more
119-21   additional medals if authorized by concurrent resolution of the
119-22   legislature.
119-23         (b)  Not more than 10 awards of the medal may be made for
119-24   achievement attained or service provided before May 1, 1969.
119-25         Sec. 3102.006.  PRESENTATION. The governor shall present the
119-26   medal to each recipient in an appropriate ceremony.
119-27         Sec. 3102.007.  DESIGN AND MANUFACTURE. (a)  The medal shall:
 120-1               (1)  display the state seal with the words
 120-2   "Distinguished Service Medal" engraved in a circle; and
 120-3               (2)  be suspended from a bar of red, white, and blue.
 120-4         (b)  The governor shall approve the design and authorize the
 120-5   casting of the medal in any manner the governor considers proper.
 120-6         (c)  The cost of acquiring the medal shall be paid from funds
 120-7   appropriated by the legislature to the governor's office.
 120-8               (Chapters 3103-3150 reserved for expansion
 120-9                        SUBTITLE B.  PRESERVATION
120-10          CHAPTER 3151.  PRESERVATION OF VIEW OF STATE CAPITOL
120-11                    SUBCHAPTER A.  GENERAL PROVISIONS
120-12         Sec. 3151.001.  DEFINITIONS. In this chapter:
120-13               (1)  "Center of the Capitol dome" means the point at
120-14   653 feet above sea level at Texas Plane Coordinate X-2818555.07,
120-15   Y-230595.65.
120-16               (2)  "Texas Plane Coordinate" means the central zone of
120-17   the Texas State Coordinate Systems as defined by the U.S. Coast and
120-18   Geodetic Survey, dated 1945 and revised in March 1978.
120-19         Sec. 3151.002.  DEFINITION OF CAPITOL VIEW CORRIDOR. In this
120-20   chapter, "Capitol view corridor" means:
120-21               (1)  the South Mall of The University of Texas
120-22   Corridor, which encompasses all of the area between two lines:
120-23                     (A)  one of which begins at an elevation of 594
120-24   feet above sea level at Texas Plane Coordinate X-2818794.86,
120-25   Y-234376.98, and extends along a bearing of S 2 7 0.0 W for a
120-26   distance of 3790.248 feet to a point 100 feet from the center of
120-27   the Capitol dome, this point being located at Texas Plane
 121-1   Coordinate X-2818654.87, Y-230589.32; and
 121-2                     (B)  the second of which begins at an elevation
 121-3   of 594 feet above sea level at Texas Plane Coordinate X-2818628.71,
 121-4   Y-234341.64, and extends along a bearing of S 2 39 17.7 W for a
 121-5   distance of 3748.053 feet to a point 100 feet from the center of
 121-6   the Capitol dome, this point being located at Texas Plane
 121-7   Coordinate X-2818455.09, Y-230597.61.
 121-8               (2)  the Waterloo Park Corridor, which encompasses all
 121-9   of the area between two lines:
121-10                     (A)  one of which begins at an elevation of 496
121-11   feet above sea level at Texas Plane Coordinate X-2820189.70,
121-12   Y-230799.91, and extends along a bearing of S 86 21 3.1 W for a
121-13   distance of 1650.373 feet to a point 100 feet from the center of
121-14   the Capitol dome, this point being located at Texas Plane
121-15   Coordinate X-2818542.67, Y-230694.87; and
121-16                     (B)  the second of which begins at an elevation
121-17   of 480 feet above sea level at Texas Plane Coordinate X-2820300.13,
121-18   Y-229756.25, and extends along a bearing of N 67 16 4.1 W for a
121-19   distance of 1939.019 feet to a point 100 feet from the center of
121-20   the Capitol dome, this point being located at Texas Plane
121-21   Coordinate X-2818511.73, Y-230505.53.
121-22               (3)  the Wooldridge Park Corridor, which encompasses
121-23   all of the area between two lines:
121-24                     (A)  one of which begins at an elevation of 515
121-25   feet above sea level at Texas Plane Coordinate X-2816727.54,
121-26   Y-229659.96, and extends along a bearing of N 60 5 58.0 E for a
121-27   distance of 2055.569 feet to a point 100 feet from the center of
 122-1   the Capitol dome, this point being located at Texas Plane
 122-2   Coordinate X-2818509.50, Y-230684.66; and
 122-3                     (B)  the second of which begins at an elevation
 122-4   of 536 feet above sea level at Texas Plane Coordinate X-2816925.57,
 122-5   Y-229291.91, and extends along a bearing of N 54 4 50.4 E for a
 122-6   distance of 2089.263 feet to a point 100 feet from the center of
 122-7   the Capitol dome, this point being located at Texas Plane
 122-8   Coordinate X-2818617.55, Y-230517.56.
 122-9               (4)  the French Legation Corridor, which encompasses
122-10   all of the area between two lines:
122-11                     (A)  one of which begins at an elevation of 539
122-12   feet above sea level at Texas Plane Coordinate X-2821177.01,
122-13   Y-227894.81, and extends along a bearing of N 42 37 44.3 W for a
122-14   distance of 3765.605 feet to a point 100 feet from the center of
122-15   the Capitol dome, this point being located at Texas Plane
122-16   Coordinate X-2818626.83, Y-230665.30; and
122-17                     (B)  the second of which begins at an elevation
122-18   of 539 feet above sea level at Texas Plane Coordinate X-2821144.99,
122-19   Y-227833.18, and extends along a bearing of N 44 39 68.5 W for a
122-20   distance of 3787.992 feet to a point 100 feet from the center of
122-21   the Capitol dome, this point being located at Texas Plane
122-22   Coordinate X-2818482.12, Y-230527.25.
122-23               (5)  the Lamar Bridge Corridor, which encompasses all
122-24   of the area between two lines:
122-25                     (A)  one of which begins at an elevation of 460
122-26   feet above sea level at Texas Plane Coordinate X-2813589.52,
122-27   Y-227457.92, and extends along a bearing of N 56 44 9.5 E for a
 123-1   distance of 5874.699 feet to a point 100 feet from the center of
 123-2   the Capitol dome, this point being located at Texas Plane
 123-3   Coordinate X-2818596.90, Y-230686.48; and
 123-4                     (B)  the second of which begins at an elevation
 123-5   of 460 feet above sea level at Texas Plane Coordinate X-2813419.55,
 123-6   Y-226934.03, and extends along a bearing of N 55 25 10.4 E for a
 123-7   distance of 6308.017 feet to a point 100 feet from the center of
 123-8   the Capitol dome, this point being located at Texas Plane
 123-9   Coordinate X-2818613.13, Y-230514.22.
123-10               (6)  the South Congress at East Live Oak Corridor,
123-11   which encompasses all of the area between two lines:
123-12                     (A)  one of which begins at an elevation of 574
123-13   feet above sea level at Texas Plane Coordinate X-2814945.42,
123-14   Y-218622.48, and extends along a bearing of N 16 19 7.6 E for a
123-15   distance of 12505.861 feet to a point 100 feet from the center of
123-16   the Capitol dome, this point being located at Texas Plane
123-17   Coordinate X-2818459.33, Y-230624.51; and
123-18                     (B)  the second of which begins at an elevation
123-19   of 574 feet above sea level at Texas Plane Coordinate X-2815051.19,
123-20   Y-218649.13, and extends along a bearing of N 16 48 23.4 E for a
123-21   distance of 12450.162 feet to a point 100 feet from the center of
123-22   the Capitol dome, this point being located at Texas Plane
123-23   Coordinate X-2818651.03, Y-230567.50.
123-24               (7)  the Mopac Bridge Corridor, which encompasses all
123-25   of the area between two lines:
123-26                     (A)  one of which begins at an elevation of 498
123-27   feet above sea level at Texas Plane Coordinate X-2808292.26,
 124-1   Y-229412.05, and extends along a bearing of N 83 58 33.0 E for a
 124-2   distance of 10331.327 feet to a point 100 feet from the center of
 124-3   the Capitol dome, this point being located at Texas Plane
 124-4   Coordinate X-2818566.53, Y-230496.30; and
 124-5                     (B)  the second of which begins at an elevation
 124-6   of 485 feet above sea level at Texas Plane Coordinate X-2808930.31,
 124-7   Y-230333.64, and extends along a bearing of N 87 50 44.3 E for a
 124-8   distance of 9628.852 feet to a point 100 feet from the center of
 124-9   the Capitol dome, this point being located at Texas Plane
124-10   Coordinate X-2818552.35, Y-230695.61.
124-11               (8)  the South Lamar at La Casa Drive Corridor, which
124-12   encompasses all of the area between two lines:
124-13                     (A)  one of which begins at an elevation of 656
124-14   feet above sea level at Texas Plane Coordinate X-2806422.18,
124-15   Y-219725.23, and extends along a bearing of N 47 47 22.8 E for a
124-16   distance of 16290.678 feet to a point 100 feet from the center of
124-17   the Capitol dome, this point being located at Texas Plane
124-18   Coordinate X-2818488.35, Y-230670.13; and
124-19                     (B)  the second of which begins at an elevation
124-20   of 656 feet above sea level at Texas Plane Coordinate X-2806443.28,
124-21   Y-219708.55, and extends along a bearing of N 48 24 0.0 E for a
124-22   distance of 16286.017 feet to a point 100 feet from the center of
124-23   the Capitol dome, this point being located at Texas Plane
124-24   Coordinate X-2818621.93, Y-230521.28.
124-25               (9)  the Barton Creek Pedestrian Bridge Corridor, which
124-26   encompasses all of the area between two lines:
124-27                     (A)  one of which begins at an elevation of 445
 125-1   feet above sea level at Texas Plane Coordinate X-2811033.87,
 125-2   Y-227139.69, and extends along a bearing of N 64 37 45.5 E for a
 125-3   distance of 8277.813 feet to a point 100 feet from the center of
 125-4   the Capitol dome, this point being located at Texas Plane
 125-5   Coordinate X-2818513.32, Y-230686.51; and
 125-6                     (B)  the second of which begins at an elevation
 125-7   of 460 feet above sea level at Texas Plane Coordinate X-2812177.38,
 125-8   Y-227545.58, and extends along a bearing of N 65 15 5.2 E for a
 125-9   distance of 7070.209 feet to a point 100 feet from the center of
125-10   the Capitol dome, this point being located at Texas Plane
125-11   Coordinate X-2818598.22, Y-230505.43.
125-12               (10)  the Pleasant Valley Road at Lakeshore Drive
125-13   Corridor, which encompasses all of the area between two lines:
125-14                     (A)  one of which begins at an elevation of 450
125-15   feet above sea level at Texas Plane Coordinate X-2826332.31,
125-16   Y-219396.73, and extends along a bearing of N 34 21 30.0 W for a
125-17   distance of 13634.929 feet to a point 100 feet from the center of
125-18   the Capitol dome, this point being located at Texas Plane
125-19   Coordinate X-2818637.21, Y-230652.69; and
125-20                     (B)  the second of which begins at an elevation
125-21   of 450 feet above sea level at Texas Plane Coordinate X-2826129.04,
125-22   Y-218986.86, and extends along a bearing of N 33 32 6.6 W for a
125-23   distance of 13861.422 feet to a point 100 feet from the center of
125-24   the Capitol dome, this point being located at Texas Plane
125-25   Coordinate X-2818471.32, Y-230541.00.
125-26               (11)  the East Eleventh Street Threshold Corridor,
125-27   which encompasses all of the area between two lines:
 126-1                     (A)  one of which begins at an elevation of 517
 126-2   feet above sea level at Texas Plane Coordinate X-2821382.21,
 126-3   Y-228956.12, and extends along a bearing of N 61 38 31.4 W for a
 126-4   distance of 3269.672 feet to a point 100 feet from the center of
 126-5   the Capitol dome, this point being located at Texas Plane
 126-6   Coordinate X-2818504.91, Y-230509.14; and
 126-7                     (B)  the second of which begins at an elevation
 126-8   of 517 feet above sea level at Texas Plane Coordinate X-2821418.78,
 126-9   Y-228980.65, and extends along a bearing of N 58 60 12.7 W for a
126-10   distance of 3289.227 feet to a point 100 feet from the center of
126-11   the Capitol dome, this point being located at Texas Plane
126-12   Coordinate X-2818604.20, Y-230682.75.
126-13               (12)  the North-Bound Lanes of Interstate Highway 35
126-14   Between the Municipal Police and Courts Building and West Tenth
126-15   Street Corridor, which encompasses all of the area between two
126-16   lines:
126-17                     (A)  one of which begins at an elevation of 501
126-18   feet above sea level at Texas Plane Coordinate X-2820624.99,
126-19   Y-227858.68, and extends along a bearing of N 38 46 6.5 W for a
126-20   distance of 3433.34 feet to a point 100 feet from the center of the
126-21   Capitol dome, this point being located at Texas Plane Coordinate
126-22   X-2818475.11, Y-230535.59; and
126-23                     (B)  the second of which begins at an elevation
126-24   of 491 feet above sea level at Texas Plane Coordinate X-2820883.74,
126-25   Y-228742.33, and extends along a bearing of N 49 33 37.2 W for a
126-26   distance of 2977.840 feet to a point 100 feet from the center of
126-27   the Capitol dome, this point begin located at Texas Plane
 127-1   Coordinate X-2818617.34, Y-230673.89.
 127-2               (13)  the South-Bound Lanes of the Upper Deck of
 127-3   Interstate Highway 35 Between Concordia College and the Martin
 127-4   Luther King Boulevard Overpass Corridor, which encompasses all of
 127-5   the area between two lines:
 127-6                     (A)  one of which begins at an elevation of 648
 127-7   feet above sea level at Texas Plane Coordinate X-2822432.77,
 127-8   Y-233117.96, and extends along a bearing of S 55 43 8.2 W for a
 127-9   distance of 4627.079 feet to a point 100 feet from the center of
127-10   the Capitol dome, this point being located at Texas Plane
127-11   Coordinate X-2818609.48, Y-230511.74; and
127-12                     (B)  the second of which begins at an elevation
127-13   of 618 feet above sea level at Texas Plane Coordinate X-2823639.09,
127-14   Y-235471.26, and extends along a bearing of S 47 0 43.0 W for a
127-15   distance of 7045.415 feet to a point 100 feet from the center of
127-16   the Capitol dome, this point being located at Texas Plane
127-17   Coordinate X-2818485.40, Y-230667.38.
127-18               (14)  the North-Bound Lanes of Interstate Highway 35
127-19   Between Waller Creek Plaza and the Municipal Police and Court
127-20   Building Corridor, which encompasses all of the area between two
127-21   lines:
127-22                     (A)  one of which begins at an elevation of 498
127-23   feet above sea level at Texas Plane Coordinate X-2820389.72,
127-24   Y-226977.21, and extends along a bearing of N 28 17 53.1 W for a
127-25   distance of 4058.419 feet to a point 100 feet from the center of
127-26   the Capitol dome, this point being located at Texas Plane
127-27   Coordinate X-2818465.79, Y-230550.62; and
 128-1                     (B)  the second of which begins at an elevation
 128-2   of 498 feet above sea level at Texas Plane Coordinate X-2820450.80,
 128-3   Y-227277.98, and extends along a bearing of N 28 14 42.1 W for a
 128-4   distance of 3823.132 feet to a point 100 feet from the center of
 128-5   the Capitol dome, this point being located at Texas Plane
 128-6   Coordinate X-2818641.53, Y-230645.90.
 128-7               (15)  the North-Bound Lanes of Interstate Highway 35
 128-8   Between Third Street and the Waller Creek Plaza Corridor, which
 128-9   encompasses all of the area between two lines:
128-10                     (A)  one of which begins at an elevation of 482
128-11   feet above sea level at Texas Plane Coordinate X-2820010.77,
128-12   Y-225710.94, and extends along a bearing of N 17 43 6.5 W for a
128-13   distance of 5098.378 feet to a point 100 feet from the center of
128-14   the Capitol dome, this point being located at Texas Plane
128-15   Coordinate X-2818459.13, Y-230567.46; and
128-16                     (B)  the second of which begins at an elevation
128-17   of 495 feet above sea level at Texas Plane Coordinate X-2820205.46,
128-18   Y-226432.65, and extends along a bearing of N 20 20 46.9 W for a
128-19   distance of 4479.853 feet to a point 100 feet from the center of
128-20   the Capitol dome, this point being located at Texas Plane
128-21   Coordinate X-2818647.84, Y-230632.99.
128-22               (16)  the East Seventh Street Bridge Over the Texas-New
128-23   Orleans Railroad Corridor, which encompasses all of the area
128-24   between two lines:
128-25                     (A)  one of which begins at an elevation of 476
128-26   feet above sea level at Texas Plane Coordinate X-2829646.58,
128-27   Y-224957.77, and extends along a bearing of N 62 35 42.1 W for a
 129-1   distance of 12442.553 feet to a point 100 feet from the center of
 129-2   the Capitol dome, this point being located at Texas Plane
 129-3   Coordinate X-2818600.39, Y-230684.79; and
 129-4                     (B)  the second of which begins at an elevation
 129-5   of 476 feet above sea level at Texas Plane Coordinate X-2829633.60,
 129-6   Y-224932.05, and extends along a bearing of N 63 23 0.0 W for a
 129-7   distance of 12442.674 feet to a point 100 feet from the center of
 129-8   the Capitol dome, this point being located at Texas Plane
 129-9   Coordinate X-2818509.56, Y-230506.61.
129-10               (17)  the Longhorn Shores Corridor, which encompasses
129-11   all of the area between two lines:
129-12                     (A)  one of which begins at an elevation of 435
129-13   feet above sea level at Texas Plane Coordinate X-2823252.67,
129-14   Y-220131.43, and extends along a bearing of N 23 40 36.4 W for a
129-15   distance of 11470.713 feet to a point 100 feet from the center of
129-16   the Capitol dome, this point being located at Texas Plane
129-17   Coordinate X-2818646.30, Y-230636.60; and
129-18                     (B)  the second of which begins at an elevation
129-19   of 435 feet above sea level at Texas Plane Coordinate X-2822788.44,
129-20   Y-220147.97, and extends along a bearing of N 22 33 57.2 W for a
129-21   distance of 11273.211 feet to a point 100 feet from the center of
129-22   the Capitol dome, this point being located at Texas Plane
129-23   Coordinate X-2818462.39, Y-230558.09.
129-24               (18)  the Zilker Clubhouse Corridor, which encompasses
129-25   all of the area between two lines:
129-26                     (A)  one of which begins at an elevation of 561
129-27   feet above sea level at Texas Plane Coordinate X-2807259.05,
 130-1   Y-230056.68, and extends along a bearing of N 86 45 42.0 E for a
 130-2   distance of 11309.321 feet to a point 100 feet from the center of
 130-3   the Capitol dome, this point being located at Texas Plane
 130-4   Coordinate X-2818550.31, Y-230695.53; and
 130-5                     (B)  the second of which begins at an elevation
 130-6   of 561 feet above sea level at Texas Plane Coordinate X-2807248.18,
 130-7   Y-229969.74, and extends along a bearing of N 87 20 15.0 E for a
 130-8   distance of 11324.650 feet to a point 100 feet from the center of
 130-9   the Capitol dome, this point being located at Texas Plane
130-10   Coordinate X-2818560.60, Y-230495.80.
130-11               (19)  the Red Bud Trail Corridor, which encompasses all
130-12   of the area between two lines:
130-13                     (A)  one of which begins at an elevation of 684
130-14   feet above sea level at Texas Plane Coordinate X-2801662.96,
130-15   Y-236155.75, and extends along a bearing of S 72 6 10.9 E for a
130-16   distance of 17783.936 feet to a point 100 feet from the center of
130-17   the Capitol dome, this point being located at Texas Plane
130-18   Coordinate X-2818586.34, Y-230690.63; and
130-19                     (B)  the second of which begins at an elevation
130-20   of 684 feet above sea level at Texas Plane Coordinate X-2801887.25,
130-21   Y-236038.78, and extends along a bearing of S 71 35 16.8 E for a
130-22   distance of 17534.371 feet to a point 100 feet from the center of
130-23   the Capitol dome, this point being located at Texas Plane
130-24   Coordinate X-2818524.03, Y-230500.59.
130-25               (20)  the Enfield Road Corridor, which encompasses all
130-26   of the area between two lines:
130-27                     (A)  one of which begins at an elevation of 534
 131-1   feet above sea level at Texas Plane Coordinate X-2814317.00,
 131-2   Y-232540.28, and extends along a bearing of S 64 7 24.8 E for a
 131-3   distance of 4664.000 feet to a point 100 feet from the center of
 131-4   the Capitol dome, this point being located at Texas Plane
 131-5   Coordinate X-2818513.37, Y-230504.76; and
 131-6                     (B)  the second of which begins at an elevation
 131-7   of 534 feet above sea level at Texas Plane Coordinate X-2814166.24,
 131-8   Y-232616.36, and extends along a bearing of S 66 27 47.8 E for a
 131-9   distance of 4832.718 feet to a point 100 feet from the center of
131-10   the Capitol dome, this point being located at Texas Plane
131-11   Coordinate X-2818596.90, Y-230686.48.
131-12               (21)  the Capital of Texas Highway Corridor, which
131-13   encompasses all of the area between two lines:
131-14                     (A)  one of which begins at an elevation of 850
131-15   feet above sea level at Texas Plane Coordinate X-2793153.22,
131-16   Y-246055.75, and extends along a bearing of S 58 62 1.6 E for a
131-17   distance of 29736.832 feet to a point 100 feet from the center of
131-18   the Capitol dome, this point being located at Texas Plane
131-19   Coordinate X-2818607.06, Y-230681.07; and
131-20                     (B)  the second of which begins at an elevation
131-21   of 850 feet above sea level at Texas Plane Coordinate X-2792663.44,
131-22   Y-245928.13, and extends along a bearing of S 59 10 35.3 E for a
131-23   distance of 30091.057 feet to a point 100 feet from the center of
131-24   the Capitol dome, this point being located at Texas Plane
131-25   Coordinate X-2818504.12, Y-230509.60.
131-26               (22)  the 38th Street at Red River Corridor, which
131-27   encompasses all of the area between two lines:
 132-1                     (A)  one of which begins at an elevation of 609
 132-2   feet above sea level at Texas Plane Coordinate X-2823695.84,
 132-3   Y-238333.37, and extends along a bearing of S 34 12 57.2 W for a
 132-4   distance of 9290.302 feet to a point 100 feet from the center of
 132-5   the Capitol dome, this point being located at Texas Plane
 132-6   Coordinate X-2818471.78, Y-230650.98; and
 132-7                     (B)  the second of which begins at an elevation
 132-8   of 609 feet above sea level at Texas Plane Coordinate X-2823785.05,
 132-9   Y-238418.94, and extends along a bearing of S 33 9 15.9 W for a
132-10   distance of 9410.983 feet to a point 100 feet from the center of
132-11   the Capitol dome, this point being located at Texas Plane
132-12   Coordinate X-2818638.21, Y-230540.07.
132-13               (23)  the Robert Mueller Airport Corridor, which
132-14   encompasses all of the area between two lines:
132-15                     (A)  one of which begins at an elevation of 603
132-16   feet above sea level at Texas Plane Coordinate X-2831475.74,
132-17   Y-237087.29, and extends along a bearing of S 62 55 39.9 W for a
132-18   distance of 14460.117 feet to a point 100 feet from the center of
132-19   the Capitol dome, this point being located at Texas Plane
132-20   Coordinate X-2818599.97, Y-230506.29; and
132-21                     (B)  the second of which begins at an elevation
132-22   of 603 feet above sea level at Texas Plane Coordinate X-2831203.80,
132-23   Y-237067.65, and extends along a bearing of S 63 18 20.5 W for a
132-24   distance of 14208.702 feet to a point 100 feet from the center of
132-25   the Capitol dome, this point being located at Texas Plane
132-26   Coordinate X-2818509.52, Y-230684.67.
132-27               (24)  the Martin Luther King Boulevard at IH-35
 133-1   Corridor, which encompasses all of the area between two lines:
 133-2                     (A)  one of which begins at an elevation of 570
 133-3   feet above sea level at Texas Plane Coordinate X-2821823.12,
 133-4   Y-232059.98, and extends along a bearing of S 64 15 51.7 W for a
 133-5   distance of 3582.510 feet to a point 100 feet from the center of
 133-6   the Capitol dome, this point being located at Texas Plane
 133-7   Coordinate X-2818595.97, Y-230504.39; and
 133-8                     (B)  the second of which begins at an elevation
 133-9   of 570 feet above sea level at Texas Plane Coordinate X-2821665.89,
133-10   Y-232039.68, and extends along a bearing of S 66 46 10.3 W for a
133-11   distance of 3431.091 feet to a point 100 feet from the center of
133-12   the Capitol dome, this point being located at Texas Plane
133-13   Coordinate X-2818512.97, Y-230686.35.
133-14               (25)  the Oakwood Cemetery Corridor, which encompasses
133-15   all of the area between two lines:
133-16                     (A)  one of which begins at an elevation of 662
133-17   feet above sea level at Texas Plane Coordinate X-2823518.05,
133-18   Y-231483.66, and extends along a bearing of S 78 43 9.6 W for a
133-19   distance of 5042.788 feet to a point 100 feet from the center of
133-20   the Capitol dome, this point being located at Texas Plane
133-21   Coordinate X-2818572.69, Y-230497.21; and
133-22                     (B)  the second of which begins at an elevation
133-23   of 662 feet above sea level at Texas Plane Coordinate X-2823496.42,
133-24   Y-231576.82, and extends along a bearing of S 79 54 22.8 W for a
133-25   distance of 5038.813 feet to a point 100 feet from the center of
133-26   the Capitol dome, this point being located at Texas Plane
133-27   Coordinate X-2818535.60, Y-230693.73.
 134-1               (26)  the East 12th Street at IH-35 Corridor, which
 134-2   encompasses all of the area between two lines:
 134-3                     (A)  one of which begins at an elevation of 525
 134-4   feet above sea level at Texas Plane Coordinate X-2821503.64,
 134-5   Y-229689.85, and extends along a bearing of N 74 46 47.6 W for a
 134-6   distance of 3086.184 feet to a point 100 feet from the center of
 134-7   the Capitol dome, this point being located at Texas Plane
 134-8   Coordinate X-2818525.71, Y-230500.05; and
 134-9                     (B)  the second of which begins at an elevation
134-10   of 523 feet above sea level at Texas Plane Coordinate X-2821304.47,
134-11   Y-229769.21, and extends along a bearing of N 71 16 29.8 W for a
134-12   distance of 2872.654 feet to a point 100 feet from the center of
134-13   the Capitol dome, this point being located at Texas Plane
134-14   Coordinate X-2818583.86, Y-230691.41.
134-15               (27)  the Lyndon Baines Johnson Library Corridor, which
134-16   encompasses all of the area between two lines:
134-17                     (A)  one of which begins at an elevation of 596
134-18   feet above sea level at Texas Plane Coordinate X-2821830.47,
134-19   Y-234589.86, and extends along a bearing of S 40 20 57.3 W for a
134-20   distance of 5162.945 feet to a point 100 feet from the center of
134-21   the Capitol dome, this point being located at Texas Plane
134-22   Coordinate X-2818477.75, Y-230659.06; and
134-23                     (B)  the second of which begins at an elevation
134-24   of 596 feet above sea level at Texas Plane Coordinate X-2821938.69,
134-25   Y-233990.42, and extends along a bearing of S 43 38 37.1 W for a
134-26   distance of 4790.234 feet to a point 100 feet from the center of
134-27   the Capitol dome, this point being located at Texas Plane
 135-1   Coordinate X-2818625.90, Y-230525.05.
 135-2               (28)  the North Congress Avenue at Martin Luther King
 135-3   Boulevard Corridor, which encompasses all of the area between two
 135-4   lines:
 135-5                     (A)  one of which begins at an elevation of 531
 135-6   feet above sea level at Texas Plane Coordinate X-2819238.03,
 135-7   Y-232793.53, and extends along a bearing of N 14 46 25.5 E for a
 135-8   distance of 2303.720 feet to a point 100 feet from the center of
 135-9   the Capitol dome, this point being located at Texas Plane
135-10   Coordinate X-2818650.57, Y-230565.97; and
135-11                     (B)  the second of which begins at an elevation
135-12   of 531 feet above sea level at Texas Plane Coordinate X-2819171.57,
135-13   Y-232814.96, and extends along a bearing of N 16 0 38.0 E for a
135-14   distance of 2305.521 feet to a point 100 feet from the center of
135-15   the Capitol dome, this point being located at Texas Plane
135-16   Coordinate X-2818458.72, Y-230622.41.
135-17               (29)  the field level of the Memorial Stadium Practice
135-18   Center Corridor, which encompasses all of the area between two
135-19   lines:
135-20                     (A)  one of which begins at an elevation of 550
135-21   feet above sea level at Texas Plane Coordinate X-2820995.40,
135-22   Y-233291.51, and extends along a bearing of N 40 34 35.4 E for a
135-23   distance of 3637.696 feet to a point 100 feet from the center of
135-24   the Capitol dome, this point being located at Texas Plane
135-25   Coordinate X-2818629.21, Y-230528.54; and
135-26                     (B)  the second of which begins at an elevation
135-27   of 550 feet above sea level at Texas Plane Coordinate X-2820805.43,
 136-1   Y-233307.74, and extends along a bearing of N 41 18 34.5 E for a
 136-2   distance of 3525.556 feet to a point 100 feet from the center of
 136-3   the Capitol dome, this point being located at Texas Plane
 136-4   Coordinate X-2818478.12, Y-230659.50.
 136-5               (30)  the entrance terrace to the University of Texas
 136-6   Swim Center Corridor, which encompasses all of the area between two
 136-7   lines:
 136-8                     (A)  one of which begins at an elevation of 540
 136-9   feet above sea level at Texas Plane Coordinate X-2821029.40,
136-10   Y-232523.71, and extends along a bearing of N 50 14 50.5 E for a
136-11   distance of 3138.424 feet to a point 100 feet from the center of
136-12   the Capitol dome, this point being located at Texas Plane
136-13   Coordinate X-2818616.54, Y-230516.77; and
136-14                     (B)  the second of which begins at an elevation
136-15   of 540 feet above sea level at Texas Plane Coordinate X-2820873.01,
136-16   Y-232433.33, and extends along a bearing of N 53 31 42.3 E for a
136-17   distance of 2959.714 feet to a point 100 feet from the center of
136-18   the Capitol dome, this point being located at Texas Plane
136-19   Coordinate X-2818492.95, Y-230674.01.
136-20         Sec. 3151.003.  APPLICABILITY. This chapter does not apply
136-21   to:
136-22               (1)  the construction, renovation, or equipment of the
136-23   Darrell K Royal-Texas Memorial Stadium or to improvements related
136-24   to the stadium, except that the height of the stadium or a related
136-25   improvement may not exceed 666 feet above sea level; or
136-26               (2)  the construction, redevelopment, or improvement of
136-27   11th Street pursuant to the East 11th and 12th Streets
 137-1   Redevelopment Program, except that the height of an improvement may
 137-2   not exceed 600 feet above sea level.
 137-3           (Sections 3151.004-3151.050 reserved for expansion
 137-4     SUBCHAPTER B.  PROHIBITED ACTIVITIES; CONFLICTING REQUIREMENTS
 137-5         Sec. 3151.051.  PROHIBITED CONSTRUCTION. A person may not
 137-6   begin, in a Capitol view corridor, construction of a structure that
 137-7   would exceed the maximum permissible height computed in accordance
 137-8   with the following formula:
 137-9         h = (((653' - eVP) x (b'))/b) - (eS - eVP)
137-10   where:
137-11         h is the maximum permissible height of the structure;
137-12         b is the distance between the selected view point and the
137-13   center of the Capitol dome;
137-14         b' is the distance between the view point and the structure;
137-15         eS is the elevation of the structure; and
137-16         eVP is the elevation of the view point.
137-17         Sec. 3151.052.  TRANSFERABLE CONSTRUCTION RIGHTS PROHIBITED.
137-18   The governing body of a municipality affected by this chapter may
137-19   not grant transferable construction rights to mitigate the impact
137-20   of this chapter in a Capitol view corridor.
137-21         Sec. 3151.053.  CONFLICT WITH LOCAL REQUIREMENTS. If a
137-22   requirement of this chapter conflicts with a requirement enacted by
137-23   a municipality, the stricter requirement prevails.
137-24           (Sections 3151.054-3151.100 reserved for expansion
137-25                       SUBCHAPTER C.  ENFORCEMENT
137-26         Sec. 3151.101.  INJUNCTION. (a)  A person may file an action
137-27   to enjoin a violation or threatened violation of Section 3151.051.
 138-1         (b)  The court may grant appropriate relief.
 138-2                     PART 2.  CONFORMING AMENDMENTS
 138-3         SECTION 7.101. Subchapter C, Chapter 401, Government Code, as
 138-4   added by Chapter 952, Acts of the 73rd Legislature, Regular
 138-5   Session, 1993, and redesignated by this Act as Subchapter F,
 138-6   Chapter 401, Government Code, is amended by adding Section 401.104
 138-7   to read as follows:
 138-8         Sec. 401.104.  GOVERNOR'S FLAG. (a)  The governor may adopt a
 138-9   flag for the governor's official use.
138-10         (b)  By executive order published in the Texas Register, the
138-11   governor shall provide a description of a flag adopted under this
138-12   section.
138-13         SECTION 7.102. Chapter 442, Government Code, is amended by
138-14   adding Section 442.0072 to read as follows:
138-15         Sec. 442.0072.  PRESERVATION AND MAINTENANCE OF GETHSEMANE
138-16   CHURCH AND CARRINGTON-COVERT HOUSE. (a)  In this section:
138-17               (1)  The Gethsemane Church includes the adjoining
138-18   grounds of the church.
138-19               (2)  The Carrington-Covert House includes the adjoining
138-20   grounds of the house.
138-21         (b)  The State of Texas owns the Gethsemane Church and the
138-22   Carrington-Covert House.
138-23         (c)  The church and the house are located at Congress Avenue
138-24   and 16th Street on Lots 5, 6, 7, and 8, Outlot 46, Division "E" of
138-25   the original City of Austin, Travis County, Texas.
138-26         (d)  The commission shall preserve, maintain in a state of
138-27   suitable repair, and develop the church and the house, in the
 139-1   manner determined by the commission, for the beautification and
 139-2   cultural enhancement of the properties as a significant Texas
 139-3   historical site and in a manner consistent with development of the
 139-4   Capitol Complex.
 139-5         (e)  The commission shall spend the money the legislature
 139-6   appropriates for purposes of this section to accomplish those
 139-7   purposes.
 139-8         (f)  The commission may:
 139-9               (1)  accept gifts and donations for the church and the
139-10   house; and
139-11               (2)  use the gifts and donations in accordance with the
139-12   donor's conditions and instructions that are consistent with this
139-13   section.
139-14         SECTION 7.103. Subchapter C, Chapter 662, Government Code, is
139-15   amended by adding Section 662.048 to read as follows:
139-16         Sec. 662.048.  TEXAS FLAG DAY. Texas Flag Day shall be
139-17   celebrated each March 2, Texas Independence Day.
139-18                            PART 3.  REPEALER
139-19         SECTION 7.201. The following articles as compiled in Vernon's
139-20   Texas Civil Statutes are repealed:  6139a, 6139b, 6139c, 6139d,
139-21   6139e, 6139f, 6139g, 6139h, 6139i, 6139j, 6143.1, 6143a, 6143b,
139-22   6143c, 6143d, 6144h, 6145-5, and 6145-13.
139-23        ARTICLE 8.  CHANGES RELATING TO TITLE 9, GOVERNMENT CODE
139-24          PART 1.  GENERAL CHANGES TO TITLE 9, GOVERNMENT CODE
139-25         SECTION 8.001. Section 1201.025(a), Government Code, is
139-26   amended to more accurately reflect the law from which it was
139-27   derived to read as follows:
 140-1         (a)  An interest rate on a public security that bears
 140-2   [accrues] interest may be fixed, variable, floating, adjustable, or
 140-3   computed by another method.
 140-4         SECTION 8.002.    Section 1202.007, Government Code, is
 140-5   amended to conform to the repeal of the law from which Subsection
 140-6   (b) of that section was derived by Section 1, Chapter 350, Acts of
 140-7   the 76th Legislature, Regular Session, 1999, to read as follows:
 140-8         Sec. 1202.007.  EXEMPTIONS; CONSTRUCTION OF EXEMPTIONS. (a)
 140-9   The following are exempt from the approval and registration
140-10   requirements of this chapter:
140-11               (1)  a public security that is:
140-12                     (A)  not subject to mandatory renewal or renewal
140-13   at the option of any person, including the issuer, a holder, or a
140-14   bearer; and
140-15                     (B)  payable only out of:
140-16                           (i)  current revenues or taxes collected in
140-17   the year the public security is issued; or
140-18                           (ii)  the proceeds of other public
140-19   securities;
140-20               (2)  a certificate in evidence of benefit assessments;
140-21               (3)  a certificate of obligation, including a claim or
140-22   account that represents an undivided interest in a certificate of
140-23   obligation, that under Subchapter C, Chapter 271, Local Government
140-24   Code, an issuer is authorized to deliver to a contractor;
140-25               (4)  a time warrant issued under Chapter 252 or 262,
140-26   Local Government Code;
140-27               (5)  a public security authorized by Chapter 1371;
 141-1               (6)  a lease, lease-purchase, or installment sale
 141-2   obligation, except as provided [by Subsection (b) or] by other law;
 141-3   and
 141-4               (7)  a public security that by rule the attorney
 141-5   general exempts because it is not practical to require approval
 141-6   before the public security's issuance.
 141-7         (b)  [A municipality with a population of less than 50,000
 141-8   may not for any purpose issue or have issued on its behalf an
 141-9   installment sale obligation or lease-purchase obligation with a
141-10   principal amount of $1 million or more without complying with this
141-11   chapter, regardless of whether the obligation:]
141-12               [(1)  is issued individually or in a series of related
141-13   transactions; or]
141-14               [(2)  is issued without recourse to the municipality.]
141-15         [(c)]  The exemptions provided by Subsection (a)  shall be
141-16   narrowly construed.
141-17         (c) [(d)]  An issuer that issues a public security that is
141-18   exempt under Subsection (a) may submit the public security to the
141-19   attorney general as provided by this chapter.
141-20         SECTION 8.003. Chapter 1207, Government Code, is amended to
141-21   more accurately reflect the law from which it was derived by
141-22   amending Section 1207.005 and adding Section 1207.0621 to
141-23   Subchapter C to read as follows:
141-24         Sec. 1207.005.  SOURCES AVAILABLE FOR PAYMENT. Except as
141-25   provided by Section 1207.0621, a [A] refunding bond may be secured
141-26   by and made payable from taxes, revenue, or both, another source,
141-27   or a combination of sources[, including surplus income to be earned
 142-1   from the investment of a deposit made under Subchapter C,] to the
 142-2   extent the issuer is otherwise authorized to secure or pay any type
 142-3   of bond by or from that source or those sources.
 142-4         Sec. 1207.0621.  SOURCES AVAILABLE FOR PAYMENT. An issuer may
 142-5   pledge to the payment of a refunding bond issued to make a deposit
 142-6   under this subchapter:
 142-7               (1)  any surplus income to be earned from the
 142-8   investment of a deposit made under this subchapter;
 142-9               (2)  any other available revenue, income, or resource;
142-10   or
142-11               (3)  both surplus income described by Subdivision (1)
142-12   and any other available revenue, income, or resource.
142-13         SECTION 8.004. Section 1231.061(b), Government Code, is
142-14   amended to more accurately reflect the law from which it was
142-15   derived to read as follows:
142-16         (b)  Not later than October 31 of each even-numbered year,
142-17   the board shall submit to the legislature a report that recommends
142-18   whether the authorization for a state security should [shall] be
142-19   revoked.
142-20         SECTION 8.005. (a)  Section 1232.056, Government Code, is
142-21   amended to conform to Section 1, Chapter 341, Acts of the 76th
142-22   Legislature, Regular Session, 1999, by adding Subsection (c) to
142-23   read as follows:
142-24         (c)  A subcommittee of the board, appointed by the board as
142-25   provided by Section 1371.053(c)(2), is not subject to Chapter 551
142-26   when it is acting to price and sell the obligations of the
142-27   authority in accordance with parameters for the issuance
 143-1   established by the board.
 143-2         (b)  Section 1, Chapter 341, Acts of the 76th Legislature,
 143-3   Regular Session, 1999, is repealed.
 143-4         SECTION 8.006. (a)  Section 1232.066(a), Government Code, is
 143-5   amended to conform to Section 60, Chapter 405, Acts of the 76th
 143-6   Legislature, Regular Session, 1999, to read as follows:
 143-7         (a)  The board's authority under this chapter is limited to
 143-8   the financing of:
 143-9               (1)  the acquisition or construction of a building;
143-10               (2)  [or] the purchase or lease of equipment; or
143-11               (3)  stranded costs of a municipal power agency.
143-12         (b)  Section 60, Chapter 405, Acts of the 76th Legislature,
143-13   Regular Session, 1999, is repealed.
143-14         SECTION 8.007. (a)  Subchapter C, Chapter 1232, Government
143-15   Code, is amended to conform to Section 59, Chapter 405, Acts of the
143-16   76th Legislature, Regular Session, 1999, by adding Section
143-17   1232.1071 to read as follows:
143-18         Sec. 1232.1071.  ISSUANCE OF OBLIGATIONS FOR FINANCING
143-19   STRANDED COSTS OF MUNICIPAL POWER AGENCY. (a)  The authority may,
143-20   either directly or by means of a trust or trusts established by it,
143-21   issue obligations or other evidences of indebtedness for financing
143-22   stranded costs of a municipal power agency created by concurrent
143-23   resolution by its member cities on or before November 1, 1979,
143-24   pursuant to Chapter 163, Utilities Code, or a predecessor statute
143-25   to that chapter.  The stranded costs of the municipal power agency
143-26   are set forth as allocated to the member cities in the "Potentially
143-27   Strandable Investment (ECOM) Report:  1998 Update" issued by the
 144-1   Public Utility Commission of Texas.
 144-2         (b)  At the request of any member city of a municipal power
 144-3   agency, the authority shall issue obligations or other evidences of
 144-4   indebtedness in the amount of the requesting member city's stranded
 144-5   costs, plus the sum of the costs described in Subdivision (1) and
 144-6   the issuance costs, and shall make a grant of the proceeds of the
 144-7   obligations or evidences of indebtedness to the municipal power
 144-8   agency.  A member city's request under this subsection must include
 144-9   a statement of the payment terms for recovering stranded costs.  A
144-10   grant of the proceeds of obligations or evidences of indebtedness
144-11   is subject to the following conditions:
144-12               (1)  the municipal power agency shall use the grant to
144-13   reduce the outstanding principal of the agency's debts allocable to
144-14   stranded costs of the requesting member city for federal income tax
144-15   purposes, whether by redemption, defeasance, or tender offer,
144-16   together with any interest expenses, call premium, tender premium,
144-17   or administrative expenses associated with the principal payment;
144-18   and
144-19               (2)  the municipal power agency shall reduce the amount
144-20   payable by the requesting member city under its power sales
144-21   contract with the agency to reflect the reduced debt service on the
144-22   agency's debt as a result of the payments made under Subdivision
144-23   (1).
144-24         (c)  Obligations or evidences of indebtedness issued by the
144-25   authority under this section must be secured by nonbypassable
144-26   charges imposed by the authority on retail customers receiving
144-27   transmission and distribution services provided by the requesting
 145-1   member city, which must be consistent with the stranded cost
 145-2   recovery terms stated in the member city's request unless otherwise
 145-3   approved by the member city.  Obligations or evidences of
 145-4   indebtedness issued by the authority under this section are not a
 145-5   debt of this state, the municipal power agency, or any member of
 145-6   the municipal power agency.
 145-7         (d)  The Public Utility Commission of Texas shall provide
 145-8   necessary assistance to the authority to ensure the collection and
 145-9   enforcement of the nonbypassable charges, whether directly or by
145-10   using the assistance and powers of the requesting member city.
145-11         (e)  The authority and the Public Utility Commission of Texas
145-12   have all powers necessary to perform the duties and
145-13   responsibilities described by this section.  This section shall be
145-14   interpreted broadly in a manner consistent with the most
145-15   cost-effective financing of stranded costs.  To the extent
145-16   possible, obligations or evidences of indebtedness issued by the
145-17   authority under this section must be structured so that any
145-18   interest on the obligations or evidences of indebtedness is
145-19   excluded from gross income for federal income tax purposes.  Any
145-20   interest on the obligations or evidences of indebtedness is not
145-21   subject to taxation by and may not be included as part of the
145-22   measurement of a tax by this state or a political subdivision of
145-23   this state.
145-24         (b)  Section 59, Chapter 405, Acts of the 76th Legislature,
145-25   Regular Session, 1999, is repealed.
145-26         SECTION 8.008. Section 1232.115(d), Government Code, is
145-27   amended to more accurately reflect the law from which it was
 146-1   derived to read as follows:
 146-2         (d)  Costs and expenses authorized by this section may not be
 146-3   included in the principal amount unless the board finds that those
 146-4   costs and expenses are necessary and reasonable at the time the
 146-5   obligations are issued.
 146-6         SECTION 8.009. (a)  Subchapter C, Chapter 1232, Government
 146-7   Code, is amended to conform to Section 4, Chapter 341, Acts of the
 146-8   76th Legislature, Regular Session, 1999, by adding Section
 146-9   1232.1191 to read as follows:
146-10         Sec. 1232.1191.  DELEGATION OF AUTHORITY. (a)  The board may
146-11   delegate authority to negotiate contracts required for issuance of
146-12   obligations to one or more of its employees or members.
146-13         (b)  The negotiation of a contract described by Subsection
146-14   (a), including oral discussions with contractors, is not considered
146-15   to be a meeting or a deliberation.
146-16         (b)  Section 4, Chapter 341, Acts of the 76th Legislature,
146-17   Regular Session, 1999, is repealed.
146-18         SECTION 8.010. (a)  Section 1232.122, Government Code, is
146-19   amended to conform to Section 2, Chapter 341, Acts of the 76th
146-20   Legislature, Regular Session, 1999, to read as follows:
146-21         Sec. 1232.122.  COMMENCEMENT OF CONSTRUCTION, PURCHASE, OR
146-22   LEASE. The acquisition or construction of a building or the
146-23   purchase or lease of equipment may begin after:
146-24               (1)  the authority has certified that obligations in an
146-25   amount sufficient to pay the construction or purchase price of the
146-26   project have been authorized for issuance by the authority and
146-27   approved by the Bond Review Board [under an interim construction
 147-1   finance agreement established by the authority in accordance with
 147-2   Chapter 1371]; or
 147-3               (2)  the proceeds have been deposited into the state
 147-4   treasury and:
 147-5                     (A)  the comptroller has certified that the
 147-6   proceeds are available;
 147-7                     (B)  the reserve funds and capitalized interest,
 147-8   as certified by the authority as reasonably required, have been
 147-9   paid; and
147-10                     (C)  the costs of issuing the obligations, as
147-11   certified by the authority, have been paid.
147-12         (b)  Section 2, Chapter 341, Acts of the 76th Legislature,
147-13   Regular Session, 1999, is repealed.
147-14         SECTION 8.011. (a)  Section 1371.001(4), Government Code, is
147-15   amended to conform to Section 1, Chapter 378, Acts of the 76th
147-16   Legislature, Regular Session, 1999, to read as follows:
147-17               (4)  "Issuer" means:
147-18                     (A)  a home-rule municipality that:
147-19                           (i)  adopted its charter under Section 5,
147-20   Article XI, Texas Constitution;
147-21                           (ii)  has a population of 50,000 or more;
147-22   and
147-23                           (iii)  has outstanding long-term
147-24   indebtedness that is rated by a nationally recognized rating agency
147-25   for municipal securities in one of the four highest rating
147-26   categories for a long-term obligation;
147-27                     (B)  a conservation and reclamation district
 148-1   created and organized as a river authority under Section 52,
 148-2   Article III, or Section 59, Article XVI, Texas Constitution;
 148-3                     (C)  a joint powers agency organized and
 148-4   operating under Chapter 163, Utilities Code;
 148-5                     (D)  a metropolitan rapid transit authority or
 148-6   regional transportation authority created, organized, and operating
 148-7   under Chapter 451 or 452, Transportation Code;
 148-8                     (E)  a conservation and reclamation district
 148-9   organized or operating as a navigation district under Section 52,
148-10   Article III, or Section 59, Article XVI, Texas Constitution;
148-11                     (F)  a district organized or operating under
148-12   Section 59, Article XVI, Texas Constitution, that has all or part
148-13   of two or more municipalities within its boundaries;
148-14                     (G)  a state agency, including a state
148-15   institution of higher education;
148-16                     (H)  a hospital authority created or operating
148-17   under Chapter 262 or 264, Health and Safety Code, in a county that:
148-18                           (i)  has a population of more than two
148-19   million; or
148-20                           (ii)  is included, in whole or in part, in
148-21   a standard metropolitan statistical area of this state that
148-22   includes a county with a population of more than 1.8 million;
148-23                     (I)  a hospital district in a county that has a
148-24   population of more than two million;
148-25                     (J)  a nonprofit corporation organized to
148-26   exercise the powers of a higher education authority under Section
148-27   53.47(e), Education Code; or
 149-1                     (K) [(J)]  a county with a population of two
 149-2   million or more.
 149-3         (b)  Section 1, Chapter 378, Acts of the 76th Legislature,
 149-4   Regular Session, 1999, is repealed.
 149-5         SECTION 8.012. (a)  Section 1372.006, Government Code, is
 149-6   amended to conform to Section 5, Chapter 131, Acts of the 76th
 149-7   Legislature, Regular Session, 1999, by adding Subsections (e) and
 149-8   (f) to read as follows:
 149-9         (e)  An issuer receiving a carryforward designation shall
149-10   submit to the board a fee in an amount that is equal to the greater
149-11   of:
149-12               (1)  $1,000; or
149-13               (2)  0.025 percent of the amount of the carryforward
149-14   designation.
149-15         (f)  A fee required by Subsection (e) must be submitted not
149-16   later than the fifth business day following the date of receipt of
149-17   the carryforward designation.
149-18         (b)  Section 5, Chapter 131, Acts of the 76th Legislature,
149-19   Regular Session, 1999, is repealed.
149-20         SECTION 8.013. (a)  Section 1372.022, Government Code, is
149-21   amended to conform to Section 1, Chapter 131, Acts of the 76th
149-22   Legislature, Regular Session, 1999, to read as follows:
149-23         Sec. 1372.022.  AVAILABILITY OF STATE CEILING TO ISSUERS.
149-24   (a)  Before August 15 [September 1] of each year:
149-25               (1)  25 [31.5] percent of the state ceiling is
149-26   available exclusively for reservations by issuers of qualified
149-27   mortgage bonds;
 150-1               (2)  11 [13] percent of the state ceiling is available
 150-2   exclusively for reservations by issuers of state-voted issues;
 150-3               (3)  7.5 percent of the state ceiling is available
 150-4   exclusively for reservations by issuers of qualified small issue
 150-5   bonds and enterprise zone facility bonds;
 150-6               (4)  16.5 [7.5] percent of the state ceiling is
 150-7   available exclusively for reservations by issuers of qualified
 150-8   residential rental project bonds;
 150-9               (5)  10.5 [11] percent of the state ceiling is
150-10   available exclusively for reservations by issuers of qualified
150-11   student loan bonds authorized by Section 53.47, Education Code; and
150-12               (6)  29.5 percent of the state ceiling is available
150-13   exclusively for reservations by any other issuer of bonds that
150-14   require an allocation.
150-15         (b)  On and after August 15 but before September 1, that
150-16   portion of the state ceiling available for reservations becomes
150-17   available for qualified residential rental project issues in the
150-18   manner described by Section 1372.0321.  On and after September 1,
150-19   that portion of the state ceiling available for reservations
150-20   becomes available to any issuer for any bonds that require an
150-21   allocation, subject to the provisions of this subchapter.
150-22         (b)  Section 1, Chapter 131, Acts of the 76th Legislature,
150-23   Regular Session, 1999, is repealed.
150-24         SECTION 8.014. (a)  Sections 1372.028(c) and (d), Government
150-25   Code, are amended to conform to Section 3, Chapter 131, Acts of the
150-26   76th Legislature, Regular Session, 1999, to read as follows:
150-27         (c)  The application must:
 151-1               (1)  be on a form prescribed by the board;
 151-2               (2)  be signed by a member or officer of the issuer;
 151-3   and
 151-4               (3)  state:
 151-5                     (A)  the maximum amount of the bonds in the issue
 151-6   that require an allocation under Section 146, Internal Revenue Code
 151-7   (26 U.S.C. Section 146);
 151-8                     (B)  the project or, with respect to an eligible
 151-9   facility, a functional description of the project to be financed by
151-10   the proceeds, including the identification of the user of the
151-11   proceeds or project;
151-12                     (C)  whether the bonds are qualified bonds;
151-13                     (D)  if the bonds are qualified bonds:
151-14                           (i)  the subparagraph of Section 141(e)(1),
151-15   Internal Revenue Code (26 U.S.C. Section 141(e)(1)), that applies;
151-16   and
151-17                           (ii)  if Section 141(e)(1)(A) of that code
151-18   (26 U.S.C. Section 141(e)(1)(A)) applies, the paragraph of Section
151-19   142(a) of that code (26 U.S.C. Section 142(a)) that applies;
151-20                     (E)  if the bonds are not qualified bonds:
151-21                           (i)  that Section 141(b)(5), Internal
151-22   Revenue Code (26 U.S.C. Section 141(b)(5)), applies; or
151-23                           (ii)  for a transition rule project, the
151-24   paragraph of the Tax Reform Act of 1986 that applies;
151-25                     (F)  that bonds are not being issued for the same
151-26   stated project for which the issuer has received sufficient
151-27   carryforward during a previous year or for which there exists
 152-1   unexpended proceeds from, including transferred proceeds
 152-2   representing unexpended proceeds from, one or more prior issues of
 152-3   bonds issued by the same issuer or based on the issuer's
 152-4   population; and
 152-5                     (G)  other information that the board may
 152-6   require.
 152-7         (d)  An issuer is not required to provide the statement
 152-8   required by Subsection (c)(3)(F) if the issuer:
 152-9               (1)  is an issuer of a state-voted issue;
152-10               (2)  is the Texas Department of Housing and Community
152-11   Affairs; or
152-12               (3)  provides evidence that one or more binding
152-13   contracts have been entered into, or other evidence acceptable to
152-14   the board as described by program rule, to spend the unexpended
152-15   proceeds by the later of:
152-16                     (A)  [within] 12 months after the date the board
152-17   receives the application; or
152-18                     (B)  December 31 of the program year for which
152-19   the application is filed.
152-20         (b)  Section 3, Chapter 131, Acts of the 76th Legislature,
152-21   Regular Session, 1999, is repealed.
152-22         SECTION 8.015. (a)  Section 1372.031, Government Code, is
152-23   amended to conform to Section 2, Chapter 131, Acts of the 76th
152-24   Legislature, Regular Session, 1999, to read as follows:
152-25         Sec. 1372.031.  PRIORITIES FOR RESERVATIONS AMONG CERTAIN
152-26   ISSUERS. Subject to Section 1372.0321, if [If], on or before
152-27   October 20, more than one issuer in a category described by Section
 153-1   1372.022(a)(2), (3), (4), or (6) applies for a reservation of the
 153-2   state ceiling for the next program year, the board shall grant
 153-3   reservations in that category in the order determined by the board
 153-4   by lot.
 153-5         (b)  Subchapter B, Chapter 1372, Government Code, is amended
 153-6   to conform to Section 2, Chapter 131, Acts of the 76th Legislature,
 153-7   Regular Session, 1999, by adding Section 1372.0321 to read as
 153-8   follows:
 153-9         Sec. 1372.0321.  PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
153-10   QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a)  In granting
153-11   reservations to issuers of qualified residential rental project
153-12   issues, the board shall:
153-13               (1)  give first priority to projects in which 100
153-14   percent of the residential units in the projects are under the
153-15   restriction that the maximum allowable rents are an amount equal to
153-16   30 percent of 50 percent of the area median family income minus an
153-17   allowance for utility costs authorized under the federal low-income
153-18   housing tax credit program;
153-19               (2)  give second priority to projects in which 100
153-20   percent of the residential units in the projects are under the
153-21   restriction that the maximum allowable rents are an amount equal to
153-22   30 percent of 60 percent of the area median family income minus an
153-23   allowance for utility costs authorized under the federal low-income
153-24   housing tax credit program; and
153-25               (3)  give third priority to any other qualified
153-26   residential rental project.
153-27         (b)  The board may not reserve a portion of the state ceiling
 154-1   for a first or second priority project described by Subsection (a)
 154-2   unless the board receives evidence that an application has been
 154-3   filed with the Texas Department of Housing and Community Affairs
 154-4   for the low-income housing tax credit that is available for
 154-5   multifamily transactions that are at least 51 percent financed by
 154-6   tax-exempt private activity bonds.
 154-7         (c)  Section 2, Chapter 131, Acts of the 76th Legislature,
 154-8   Regular Session, 1999, is repealed.
 154-9         SECTION 8.016. (a)  Section 1372.042(d), Government Code, is
154-10   amended to conform to Section 4, Chapter 131, Acts of the 76th
154-11   Legislature, Regular Session, 1999, to read as follows:
154-12         (d)  Not later than the fifth business day after the date on
154-13   which the bonds are closed, the issuer shall submit to the board:
154-14               (1)  a written notice stating the delivery date of the
154-15   bonds and the principal amount of the bonds issued; [and]
154-16               (2)  if the project is a project entitled to first or
154-17   second priority under Section 1372.0321, evidence from the Texas
154-18   Department of Housing and Community Affairs that an award of
154-19   low-income housing tax credits has been approved for the project;
154-20   and
154-21               (3)  a certified copy of the document authorizing the
154-22   bonds and any other document relating to the issuance of the bonds,
154-23   including a statement of the bonds':
154-24                     (A)  principal amount;
154-25                     (B)  interest rate or formula by which the
154-26   interest rate is computed;
154-27                     (C)  maturity schedule; and
 155-1                     (D)  purchaser or purchasers.
 155-2         (b)  Section 4, Chapter 131, Acts of the 76th Legislature,
 155-3   Regular Session, 1999, is repealed.
 155-4         SECTION 8.017. Section 1401.041, Government Code, is amended
 155-5   to conform to the amendment of Section 49-h, Article III, Texas
 155-6   Constitution, by the constitutional amendment proposed by H.J.R.
 155-7   No. 62, Acts of the 76th Legislature, Regular Session, 1999, to
 155-8   read as follows:
 155-9         Sec. 1401.041.  GENERAL OBLIGATION BONDS. (a)  As provided by
155-10   Section 49-h(a), Article III, Texas Constitution, as that section
155-11   existed September 1, 1999, the authority may:
155-12               (1)  issue general obligation bonds in an amount not to
155-13   exceed $500 million; and
155-14               (2)  distribute the bond proceeds as provided by that
155-15   section.
155-16         (b)  As provided by Section 49-h(c), Article III, Texas
155-17   Constitution, as that section existed September 1, 1999, the
155-18   authority may:
155-19               (1)  issue general obligation bonds in an amount not to
155-20   exceed $400 million; and
155-21               (2)  distribute the bond proceeds to any appropriate
155-22   agency to:
155-23                     (A)  acquire, construct, or equip a new facility;
155-24   or
155-25                     (B)  make a major repair of or renovate a
155-26   facility, corrections institution, youth corrections institution,
155-27   or mental health and mental retardation institution.
 156-1         (c)  As provided by Section 49-h(d), Article III, Texas
 156-2   Constitution, as that section existed September 1, 1999, the
 156-3   authority may:
 156-4               (1)  issue general obligation bonds in an amount not to
 156-5   exceed $1.055 billion and distribute the bond proceeds to any
 156-6   appropriate agency to:
 156-7                     (A)  acquire, construct, or equip a:
 156-8                           (i)  new prison or substance abuse felony
 156-9   punishment facility to confine criminals; or
156-10                           (ii)  youth corrections institution;
156-11                     (B)  make a major repair of or renovate a prison
156-12   facility or youth corrections institution; or
156-13                     (C)  acquire, make a major repair of, or renovate
156-14   a facility for use as a state prison, a substance abuse felony
156-15   punishment facility, or a facility in which a pilot program
156-16   established as provided by Section 614.011, Health and Safety Code,
156-17   is conducted;
156-18               (2)  issue general obligation bonds in an amount not to
156-19   exceed $45 million and distribute the bond proceeds to any
156-20   appropriate agency to:
156-21                     (A)  acquire, construct, or equip a new mental
156-22   health or mental retardation facility, including a community-based
156-23   mental health or mental retardation facility; or
156-24                     (B)  make a major repair of or renovate a mental
156-25   health or mental retardation facility; and
156-26               (3)  issue general obligation bonds in an amount not to
156-27   exceed $50 million and distribute the bond proceeds to any
 157-1   appropriate agency to:
 157-2                     (A)  acquire, construct, or equip a new youth
 157-3   corrections facility; or
 157-4                     (B)  make a major repair of or renovate a youth
 157-5   corrections facility.
 157-6         (d)  As provided by Section 49-h(e), Article III, Texas
 157-7   Constitution, as that section existed September 1, 1999, the
 157-8   authority may:
 157-9               (1)  issue general obligation bonds in an amount not to
157-10   exceed $1 billion; and
157-11               (2)  distribute the bond proceeds as provided by that
157-12   section.
157-13         SECTION 8.018. (a)  Section 1431.001, Government Code, is
157-14   amended to conform to Sections 3 and 4, Chapter 984, Acts of the
157-15   76th Legislature, Regular Session, 1999, to read as follows:
157-16         Sec. 1431.001.  DEFINITIONS. In this chapter:
157-17               (1)  "Anticipation note" means a note issued under this
157-18   chapter.
157-19               (2)  "Eligible school district" means an independent
157-20   school district that has an average daily attendance of 190,000 or
157-21   more as determined under Section 42.005, Education Code.
157-22               (3)  "Governing body" means the commissioners court of
157-23   a county or the governing body of a municipality or eligible school
157-24   district authorized to issue anticipation notes on behalf of an
157-25   issuer.
157-26               (4) [(3)]  "Issuer" means a  county, [or] municipality,
157-27   or eligible school district issuing an anticipation note.
 158-1         (b)  Section 3, Chapter 984, Acts of the 76th Legislature,
 158-2   Regular Session, 1999, is repealed.
 158-3         SECTION 8.019. (a)  Section 1431.002, Government Code, is
 158-4   amended to conform to Sections 4 and 6, Chapter 984, Acts of the
 158-5   76th Legislature, Regular Session, 1999, by adding Subsection (c)
 158-6   to read as follows:
 158-7         (c)  The governing body of an eligible school district by
 158-8   order may authorize the issuance of an anticipation note.
 158-9         (b)  Section 1431.004, Government Code, is amended to conform
158-10   to Section 4, Chapter 984, Acts of the 76th Legislature, Regular
158-11   Session, 1999, to read as follows:
158-12         Sec. 1431.004.  USES OF ANTICIPATION NOTE PROCEEDS. (a)  An
158-13   issuer may use the proceeds of an anticipation note to pay:
158-14               (1)  a contractual obligation incurred or to be
158-15   incurred for:
158-16                     (A)  the construction of a public work;
158-17                     (B)  the purchase of materials, supplies,
158-18   equipment, machinery, buildings, lands, and rights-of-way for the
158-19   issuer's authorized needs and purposes; or
158-20                     (C)  a professional service, including a service
158-21   by a tax appraisal engineer, engineer, architect, attorney,
158-22   mapmaker, auditor, financial advisor, or fiscal agent;
158-23               (2)  operating or current expenses; or
158-24               (3)  the issuer's cumulative cash flow deficit.
158-25         (b)  The governing body of an eligible school district may
158-26   use the proceeds of an anticipation note to pay an obligation
158-27   incurred or to be incurred for:
 159-1               (1)  a purpose described by Subsection (a)(1)(C), (2),
 159-2   or (3); or
 159-3               (2)  the purchase of materials, supplies, equipment, or
 159-4   machinery for the district's authorized needs and purposes.
 159-5         (c)  For the purposes of this section, the cumulative cash
 159-6   flow deficit is the amount by which the sum of an issuer's
 159-7   anticipated expenditures and cash reserve reasonably required to
 159-8   pay unanticipated expenditures exceeds the amount of the issuer's
 159-9   cash, marketable securities, and money in an account that may be
159-10   used to pay an issuer's anticipated expenditures, other than:
159-11               (1)  money in an account the use of which is subject to
159-12   legislative or judicial action or that is subject to a legislative,
159-13   judicial, or contractual requirement that the account be
159-14   reimbursed; or
159-15               (2)  the proceeds of an anticipation note.
159-16         (d) [(c)]  For the purposes of Subsection (c) [(b)], an
159-17   amount equal to one month's anticipated expenditures is presumed to
159-18   be reasonably required as a cash reserve.
159-19         (c)  Sections 4 and 6, Chapter 984, Acts of the 76th
159-20   Legislature, Regular Session, 1999, are repealed.
159-21         SECTION 8.020. (a)  Section 1431.003(a), Government Code, is
159-22   amended to conform to Section 5, Chapter 984, Acts of the 76th
159-23   Legislature, Regular Session, 1999, to read as follows:
159-24         (a)  This section applies only to an issuer that is:
159-25               (1)  a county; [or]
159-26               (2)  a municipality with a population of 80,000 or
159-27   more; or
 160-1               (3)  an eligible school district.
 160-2         (b)  Section 5, Chapter 984, Acts of the 76th Legislature,
 160-3   Regular Session, 1999, is repealed.
 160-4         SECTION 8.021. (a)  Section 1431.006, Government Code, is
 160-5   amended to conform to Section 7, Chapter 984, Acts of the 76th
 160-6   Legislature, Regular Session, 1999, to read as follows:
 160-7         Sec. 1431.006.  LIMITATION ON NOTES TO PAY EXPENSES.
 160-8   Anticipation notes issued under Section 1431.004(a)(2) may not, in
 160-9   the fiscal year in which the attorney general approves the notes:
160-10               (1)  for a municipality, exceed 75 percent of the
160-11   revenue or taxes anticipated to be collected in that year; [or]
160-12               (2)  for a county, exceed 50 percent of the revenue or
160-13   taxes anticipated to be collected in that year; or
160-14               (3)  for an eligible school district, exceed 75 percent
160-15   of the income of the district for the fiscal year preceding that
160-16   year.
160-17         (b)  Section 1431.009(a), Government Code, is amended to
160-18   conform to Section 7, Chapter 984, Acts of the 76th Legislature,
160-19   Regular Session, 1999, to read as follows:
160-20         (a)  An anticipation note issued for a purpose described by
160-21   Section 1431.004(a)(1) or (b)(2) must mature before the seventh
160-22   anniversary of the date that the attorney general approves the
160-23   note.
160-24         (c)  Section 7, Chapter 984, Acts of the 76th Legislature,
160-25   Regular Session, 1999, is repealed.
160-26         SECTION 8.0211. (a)  Subtitle I, Title 9, Government Code, is
160-27   amended to codify Chapter 237, Acts of the 54th Legislature,
 161-1   Regular Session, 1955 (Article 6079c-1, Vernon's Texas Civil
 161-2   Statutes), by adding Chapter 1478 to read as follows:
 161-3             CHAPTER 1478.  ADDITIONAL AUTHORITY FOR CERTAIN
 161-4                  COASTAL COUNTIES TO ISSUE ROAD BONDS
 161-5         Sec. 1478.001.  APPLICABILITY OF CHAPTER. This chapter
 161-6   applies only to a county that:
 161-7               (1)  is located on the Gulf of Mexico; and
 161-8               (2)  has within its boundaries an island susceptible to
 161-9   development for recreational purposes for the use and benefit of
161-10   the residents of the county.
161-11         Sec. 1478.002.  AUTHORITY TO ISSUE ROAD BONDS. A county may
161-12   issue and secure bonds in the manner provided by Chapter 284,
161-13   Transportation Code, to construct, improve, and operate roads on an
161-14   island described by Section 1478.001(2).
161-15         Sec. 1478.003.  BOND PAYMENTS FROM REVENUE AND TAXES. Bonds
161-16   issued as provided by this chapter may be payable from:
161-17               (1)  tolls charged for use of the road;
161-18               (2)  taxes; or
161-19               (3)  a combination of tolls and taxes.
161-20         Sec. 1478.004.  ELECTION. Unless the action is authorized by
161-21   an election at which the question is submitted to the voters, a
161-22   county may not:
161-23               (1)  issue bonds under this chapter, whether payable
161-24   from taxes or revenue; or
161-25               (2)  spend county money in any manner in connection
161-26   with or on a road project under this chapter.
161-27         Sec. 1478.005.  LIMITATION ON DECLARING CERTAIN FACILITIES
 162-1   PART OF STATE HIGHWAY SYSTEM. (a)  Except as provided by Subsection
 162-2   (b), the Texas Transportation Commission may not declare to be a
 162-3   part of the state highway system and maintain and operate free of
 162-4   tolls a facility as to which a county has:
 162-5               (1)  issued bonds under Chapter 284, Transportation
 162-6   Code, for a purpose authorized by that chapter and has secured the
 162-7   payment of those bonds by:
 162-8                     (A)  a pledge of the revenue to be derived from
 162-9   the operation of the facility; and
162-10                     (B)  the levy of ad valorem taxes authorized by
162-11   Section 52, Article III, Texas Constitution; and
162-12               (2)  issued bonds under this chapter for a purpose
162-13   authorized by Section 1478.002 that are payable in whole or part
162-14   from revenue.
162-15         (b)  Subsection (a) does not apply if:
162-16               (1)  the bonds issued under this chapter have been
162-17   paid; or
162-18               (2)  an amount sufficient to pay the bonds issued under
162-19   this chapter and interest on those bonds to maturity has been set
162-20   aside for that purpose in a trust fund for the benefit of the
162-21   bondholders.
162-22         (b)  Chapter 237, Acts of the 54th Legislature, Regular
162-23   Session, 1955 (Article 6079c-1, Vernon's Texas Civil Statutes), is
162-24   repealed.
162-25         SECTION 8.022. Section 1501.255(b), Government Code, is
162-26   amended to more accurately reflect the law from which it was
162-27   derived to read as follows:
 163-1         (b)  The notice must be published in at least two issues of a
 163-2   newspaper of general circulation in the municipality, with the
 163-3   first publication being not less than 14 days before the [14th day
 163-4   before the] date the governing body proposes to adopt the
 163-5   ordinance.
 163-6         SECTION 8.023. Section 1503.154, Government Code, is amended
 163-7   to more accurately reflect the law from which it was derived to
 163-8   read as follows:
 163-9         Sec. 1503.154.  GRANT OF FRANCHISE. As additional security
163-10   for the encumbrance, a municipality that encumbers an airport under
163-11   Section 1503.153 may provide in the encumbrance for a grant, to the
163-12   purchaser under sale or foreclosure,  of a franchise to operate the
163-13   airport and the improvements situated on the airport for a term not
163-14   to exceed 30 years from the date of the purchase, subject to all
163-15   laws regulating same then in force.
163-16         SECTION 8.024. (a)  Sections 1504.001 and 1504.002,
163-17   Government Code, are amended to conform to Section 3, Chapter 1004,
163-18   Acts of the 76th Legislature, Regular Session, 1999, and to more
163-19   accurately reflect the law from which they were derived to read as
163-20   follows:
163-21         Sec. 1504.001.  AUTHORITY FOR CERTAIN FACILITIES. (a)  A
163-22   municipality may establish, acquire, lease as lessee or lessor,
163-23   construct, improve, enlarge, equip, repair, operate, or maintain a
163-24   facility such as:
163-25               (1)  a civic center, auditorium, opera house, music
163-26   hall, exhibition hall, coliseum, museum, library, or other
163-27   municipal building;
 164-1               (2)  a golf course, tennis court, or other similar
 164-2   recreational facility;
 164-3               (3)  a hotel owned by a municipality or a nonprofit
 164-4   municipally sponsored local government corporation created under
 164-5   Chapter 431, Transportation Code, that is located not more than
 164-6   1,000 feet from a convention center owned by a municipality with a
 164-7   population of 1,500,000 or more;
 164-8               (4)  a historic hotel owned by a municipality or a
 164-9   nonprofit municipally sponsored local government corporation
164-10   created under Chapter 431, Transportation Code, that is located not
164-11   more than one mile from a convention center owned by a municipality
164-12   with a population of 1,500,000 or more; or
164-13               (5)  a parking facility at or in the immediate vicinity
164-14   of a [cultural or athletic] facility described by Subdivisions
164-15   (1)-(4) for use in connection with that facility for off-street
164-16   parking or storage of motor vehicles or other conveyances.
164-17         (b)  An eligible central municipality, as defined by Section
164-18   351.001, Tax Code, may establish, acquire, lease as lessee or
164-19   lessor, construct, improve, enlarge, equip, repair, operate, or
164-20   maintain a hotel, and any facilities ancillary to the hotel,
164-21   including shops and parking facilities, that are owned by or
164-22   located on land owned by the municipality or by a nonprofit
164-23   corporation acting on behalf of the municipality, and that is
164-24   located within 1,000 feet of a convention center facility owned by
164-25   the municipality.
164-26         Sec. 1504.002.  AUTHORITY TO ISSUE REVENUE BONDS. (a)  The
164-27   governing body of a municipality  by ordinance may issue revenue
 165-1   bonds to provide all or part of the money to establish, acquire,
 165-2   construct, improve, enlarge, equip, or repair a facility described
 165-3   by Section 1504.001(a) [1504.001].
 165-4         (b)  An eligible central municipality, as defined by Section
 165-5   351.001, Tax Code, by ordinance may issue bonds or incur other
 165-6   obligations to acquire, lease, construct, or equip a facility
 165-7   described by Section 1504.001(b).
 165-8         (b)  Section 3, Chapter 1004, Acts of the 76th Legislature,
 165-9   Regular Session, 1999, is repealed.
165-10         SECTION 8.025. Section 1505.068, Government Code, is amended
165-11   to more accurately reflect the law from which it was derived to
165-12   read as follows:
165-13         Sec. 1505.068.  OPERATING EXPENSES AS FIRST LIEN. The
165-14   reasonable costs of administering and operating and the reasonable
165-15   expense of maintaining the project are a first lien against the
165-16   revenue and income from the operation of a project, superior to the
165-17   lien of any encumbrance on the project.  From the revenue and
165-18   income of a project, the municipality shall, monthly or more
165-19   frequently if necessary, first deposit to the credit of the
165-20   operation and maintenance account an amount sufficient to pay those
165-21   expenses.
165-22         SECTION 8.026. Section 1505.209(b), Government Code, is
165-23   amended to more accurately reflect the law from which it was
165-24   derived to read as follows:
165-25         (b)  The governing body of the municipality shall hold the
165-26   election in the manner provided for the issuance of other bonds of
165-27   the municipality.
 166-1           PART 2.  GENERAL CHANGES TO OTHER TITLES AND CODES
 166-2         SECTION 8.101.  Section 286.129(b), Health and Safety Code,
 166-3   is amended to read as follows:
 166-4         (b)  The board may invest operating, depreciation, or
 166-5   building reserves only in:
 166-6               (1)  bonds of the United States;
 166-7               (2)  certificates of indebtedness issued by the United
 166-8   States secretary of the treasury;
 166-9               (3)  bonds of this state or a county, municipality, or
166-10   school district of this state; or
166-11               (4)  shares or share accounts of savings and loan
166-12   associations organized under the laws of this state or federal
166-13   savings and loan associations domiciled in this state, if the
166-14   shares or share accounts are insured by the Federal Deposit
166-15   Insurance Corporation [funds or securities specified by Article 836
166-16   or 837, Revised Statutes].
166-17         SECTION 8.102.  Section 287.129(b), Health and Safety Code,
166-18   is amended to read as follows:
166-19         (b)  The board may invest operating, depreciation, or
166-20   building reserves only in:
166-21               (1)  bonds of the United States;
166-22               (2)  certificates of indebtedness issued by the United
166-23   States secretary of the treasury;
166-24               (3)  bonds of this state or a county, municipality, or
166-25   school district of this state; or
166-26               (4)  shares or share accounts of savings and loan
166-27   associations organized under the laws of this state or federal
 167-1   savings and loan associations domiciled in this state, if the
 167-2   shares or share accounts are insured by the Federal Deposit
 167-3   Insurance Corporation [funds or securities specified by Article 836
 167-4   or 837, Revised Statutes].
 167-5         SECTION 8.103.  (a)  Section 303.035, Local Government Code,
 167-6   is amended to conform to Section 1, Chapter 900, Acts of the 76th
 167-7   Legislature, Regular Session, 1999, by adding Subsection (f) to
 167-8   read as follows:
 167-9         (f)  A director has the same immunity from liability as is
167-10   granted under the laws of this state to a member of the sponsor's
167-11   governing body if the director was acting in good faith and in the
167-12   course and scope of the duties or functions within the corporation.
167-13         (b)  Section 1, Chapter 900, Acts of the 76th Legislature,
167-14   Regular Session, 1999, is repealed.
167-15         SECTION 8.104.  (a)  Section 303.077(b), Local Government
167-16   Code, is amended to conform to Section 2.43, Chapter 414, Acts of
167-17   the 76th Legislature, Regular Session, 1999, to read as follows:
167-18         (b)  Notwithstanding Section 9.109(d) [9.104], Business &
167-19   Commerce Code, and without any other filing, a security interest is
167-20   perfected until payment of the bonds and credit agreement, with the
167-21   effect specified by Chapter 9, Business & Commerce Code, when the
167-22   bonds are registered by the comptroller and the proceedings
167-23   authorizing the bonds are filed with the comptroller.
167-24         (b)  Section 2.43, Chapter 414, Acts of the 76th Legislature,
167-25   Regular Session, 1999, is repealed.
167-26         SECTION 8.105.  Section 363.206(c), Local Government Code, is
167-27   amended to read as follows:
 168-1         (c)  The board may not invest district funds in funds or
 168-2   securities other than:
 168-3               (1)  bonds of the United States;
 168-4               (2)  certificates of indebtedness issued by the United
 168-5   States secretary of the treasury;
 168-6               (3)  bonds of this state or a county, municipality, or
 168-7   school district of this state;
 168-8               (4)  shares or share accounts of savings and loan
 168-9   associations organized under the laws of this state or federal
168-10   savings and loan associations domiciled in this state, if the
168-11   shares or share accounts are insured by the Federal Deposit
168-12   Insurance Corporation; or
168-13               (5)  investments [those] specified [by Article 836 or
168-14   837, Revised Statutes, or] by Chapter 2256, Government Code.
168-15         SECTION 8.106.  (a)  Sections 402.121-402.123, Local
168-16   Government Code, are amended to conform to Section 53, Chapter 405,
168-17   Acts of the 76th Legislature, Regular Session, 1999, to read as
168-18   follows:
168-19         Sec. 402.121.  APPLICABILITY OF SUBCHAPTER.  This subchapter
168-20   applies only to a home-rule municipality that owns an electric
168-21   utility system, that by ordinance or charter elects to have the
168-22   management and control of the utility system governed by a board of
168-23   trustees [this subchapter], and that:
168-24               (1)  has outstanding obligations payable in whole or in
168-25   part [solely] from and secured by a lien on and pledge of the net
168-26   revenue of the system; or
168-27               (2)  issues obligations that:
 169-1                     (A)  are payable in whole or in part [solely]
 169-2   from and secured by a lien on and pledge of the net revenue of the
 169-3   system; and
 169-4                     (B)  are approved by the attorney general.
 169-5         Sec. 402.122.  TRANSFER OF MANAGEMENT AND CONTROL OF ELECTRIC
 169-6   UTILITY SYSTEM.  (a)  A municipality by ordinance may transfer
 169-7   management and control of the municipality's electric utility
 169-8   system to a [five-member] board of trustees appointed by the
 169-9   municipality's governing body.
169-10         (b)  The municipality by ordinance shall prescribe:
169-11               (1)  the number of members; and
169-12               (2)  the qualifications for appointment to the board.
169-13         Sec. 402.123.  AUTHORITY OF BOARD OF TRUSTEES.  (a)  The
169-14   municipality by ordinance may vest in the board the power to
169-15   establish rates and related terms for its municipally owned
169-16   electric utility system.
169-17         (b)  The municipality may delegate to the board of trustees
169-18   all or part of the municipality's authority to:
169-19               (1)  [establish rates and charges for use of the
169-20   utility system's facilities;]
169-21               [(2)]  exercise the power of eminent domain with
169-22   respect to property that will be used by, useful to, or required by
169-23   the utility system; and
169-24               (2) [(3)]  issue obligations in the name of the
169-25   municipality to acquire or construct an improvement to or extension
169-26   of the utility system or to repair the system.
169-27         (c) [(b)]  The municipality may authorize the board of
 170-1   trustees to issue obligations under Subsection (b)(2) [(a)(3)]
 170-2   without the prior approval of the municipality.  The obligations
 170-3   must be payable solely from the net revenue of the utility system. 
 170-4         (d) [(c)]  The municipality may not delegate to the board of
 170-5   trustees the authority to:
 170-6               (1)  levy or collect ad valorem taxes; or
 170-7               (2)  issue obligations that are payable in whole or in
 170-8   part from ad valorem taxes.
 170-9         (e) [(d)]  The municipality and the board of trustees may
170-10   jointly provide for the issuance of obligations payable from ad
170-11   valorem taxes and the utility system's net revenue by adopting
170-12   identical provisions in an ordinance or resolution, as appropriate.
170-13         (b)  Section 53, Chapter 405, Acts of the 76th Legislature,
170-14   Regular Session, 1999, is repealed.
170-15         SECTION 8.107.  Section 111.053, Natural Resources Code, is
170-16   amended to read as follows:
170-17         Sec. 111.053.  BOND OF PUBLIC UTILITY.  (a)  Before engaging
170-18   in business as a public utility, a person, association, or
170-19   corporation that is to engage in business as a public utility shall
170-20   file a bond in an amount not to exceed $25,000 that is properly
170-21   executed and made payable to the State of Texas with the amount of
170-22   the bond and the sureties on the bond subject to the approval of
170-23   the commission.
170-24         (b)  In lieu of a bond as required by Subsection (a), a
170-25   person, association, or corporation may deposit with the
170-26   commission:
170-27               (1)  bonds of the United States;
 171-1               (2)  certificates of indebtedness issued by the United
 171-2   States secretary of the treasury;
 171-3               (3)  bonds of this state or a county, municipality, or
 171-4   school district of this state; or
 171-5               (4)  shares or share accounts of savings and loan
 171-6   associations organized under the laws of this state or federal
 171-7   savings and loan associations domiciled in this state, if the
 171-8   shares or share accounts are insured by the Federal Deposit
 171-9   Insurance Corporation.
171-10         (c)  The bond or securities in lieu of the bond as provided
171-11   by Subsection (b) [in Article 836, Revised Civil Statutes of Texas,
171-12   1925, as amended,] shall be approved by the commission before the
171-13   bond [it] is filed or the securities deposited.
171-14         (d) [(c)]  After proper notice and hearing as provided by
171-15   law, the amount of the bond may be changed from time to time by
171-16   order of the commission, according to the volume of business done
171-17   or to be done by the public utility.
171-18         (e) [(d)]  The bond shall be conditioned that the public
171-19   utility will observe the applicable provisions of this subchapter
171-20   and chapter and the rules of the commission insofar as its business
171-21   is regulated and controlled by the commission and that the public
171-22   utility will exercise ordinary care in the storage, preservation,
171-23   handling, and delivery of petroleum products entrusted to it and
171-24   shall guarantee the classification, measurements, and grades made
171-25   by it under its authority and in conformity herewith.
171-26         (f) [(e)]  The bond shall be for the benefit of the patrons
171-27   of the public utility and their assignees as though they were named
 172-1   obligees in the bond and they shall severally have the right of
 172-2   suit on the bond.
 172-3         SECTION 8.108.  (a)  Sections 152.301 and 152.302, Water
 172-4   Code, are amended to conform to Section 52, Chapter 405, Acts of
 172-5   the 76th Legislature, Regular Session, 1999, to read as follows:
 172-6         Sec. 152.301.  ELECTRIC TRANSMISSION SERVICES AND FACILITIES.
 172-7   Notwithstanding any other law, a [A] river authority may:
 172-8               (1)  provide transmission services, as defined by the
 172-9   [Section 31.002,] Utilities Code or the Public Utility Commission
172-10   of Texas, on a regional basis to any eligible transmission customer
172-11   at any location within or outside the boundaries of the river
172-12   authority; and
172-13               (2)  acquire, including by lease-purchase, lease from
172-14   or to any person, finance, [lease,] construct, rebuild, operate, or
172-15   sell electric transmission facilities at any location within or
172-16   outside the boundaries of the river authority.
172-17         Sec. 152.302.  LIMITATION ON ELECTRIC TRANSMISSION
172-18   FACILITIES.  This subchapter does not:
172-19               (1)  authorize a river authority to construct electric
172-20   transmission facilities for an ultimate consumer of electricity to
172-21   enable that consumer to bypass the transmission or distribution
172-22   facilities of its existing provider; or
172-23               (2)  relieve a river authority from an obligation to
172-24   comply with each provision of the Utilities Code concerning a
172-25   certificate of convenience and necessity for a transmission
172-26   facility.
172-27         (b)  Section 52, Chapter 405, Acts of the 76th Legislature,
 173-1   Regular Session, 1999, is repealed.
 173-2                    PART 3.  CROSS-REFERENCE CHANGES
 173-3         SECTION 8.201.  Section 43.007(b), Agriculture Code, is
 173-4   amended to read as follows:
 173-5         (b)  If approved at an election conducted under Chapter 1251,
 173-6   Government Code [Chapters 1 and 2 of Title 22, Revised Civil
 173-7   Statutes of Texas, 1925, as amended], the commissioners court may
 173-8   issue bonds or warrants for the purpose of acquiring land and
 173-9   constructing buildings and improvements for an experiment station.
173-10   The commissioners court may levy and collect a tax sufficient to
173-11   pay the annual interest and to provide a sinking fund for the
173-12   payment of principal on the bonds or warrants at maturity.
173-13         SECTION 8.202.  Sections 58.034(a) and (d), Agriculture Code,
173-14   are amended to read as follows:
173-15         (a)  The authority's bonds may be issued from time to time in
173-16   one or more series or issues, in bearer, registered, or any other
173-17   form, which may include registered uncertified obligations not
173-18   represented by written instruments and commonly known as book-entry
173-19   obligations, the registration of ownership and transfer of which
173-20   shall be provided for by the authority under a system of books and
173-21   records maintained by the authority or by an agent appointed by the
173-22   authority in resolution providing for issuance of its bonds.  Bonds
173-23   may mature serially or otherwise not more than 40 years from their
173-24   date.  Bonds may bear no interest or may bear interest at any rate
173-25   or rates, fixed, variable, floating, or otherwise, determined by
173-26   the board or determined pursuant to any contractual arrangements
173-27   approved by the board, not to exceed the maximum net effective
 174-1   interest rate allowed by Chapter 1204, Government Code [3, Acts of
 174-2   the 61st Legislature, Regular Session, 1969 (Article 717k-2,
 174-3   Vernon's Texas Civil Statutes)].  Interest on the bonds may be
 174-4   payable at any time, and the rate of interest on the bonds may be
 174-5   adjusted at such time as may be determined by the board or as may
 174-6   be determined pursuant to any contractual arrangement approved by
 174-7   the board.  In connection with the issuance of its bonds, the board
 174-8   may exercise the powers granted to the governing body of an issuer
 174-9   in connection with the issuance of obligations under Chapter 1371,
174-10   Government Code [656, Acts of the 68th Legislature, Regular
174-11   Session, 1983 (Article 717q, Vernon's Texas Civil Statutes)], to
174-12   the extent not inconsistent with this chapter.
174-13         (d)  All bonds issued by the authority are subject to review
174-14   and approval by the attorney general in the same manner and with
174-15   the same effect as is provided by Chapter 1371, Government Code
174-16   [656, Acts of the 68th Legislature, Regular Session, 1983 (Article
174-17   717q, Vernon's Texas Civil Statutes)].
174-18         SECTION 8.203.  Section 58.035, Agriculture Code, is amended
174-19   to read as follows:
174-20         Sec. 58.035.  REFUNDING BONDS.  The authority may issue,
174-21   sell, and deliver bonds to refund all or any part of its
174-22   outstanding bonds, including the payment of any redemption premium
174-23   and interest accrued, under such terms, conditions, and details as
174-24   determined by the board.  Bonds issued by the authority may be
174-25   refunded in the manner provided by any other applicable statute,
174-26   including Chapter 1207, Government Code [503, Acts of the 54th
174-27   Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
 175-1   Civil Statutes), and Chapter 784, Acts of the 61st Legislature,
 175-2   Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
 175-3   Statutes)].  Bonds, the provision for the payment of all interest
 175-4   and applicable premiums on which and the principal of which has
 175-5   been made through the irrevocable deposit of money with the
 175-6   comptroller in accordance with the provisions of such an applicable
 175-7   statute, shall no longer be charged against the issuing authority
 175-8   of the authority, and on the making of such provision such issuing
 175-9   authority shall, to the extent of the principal amount of such
175-10   bonds, be restored.
175-11         SECTION 8.204.  Section 16.061(a), Civil Practice and
175-12   Remedies Code, is amended to read as follows:
175-13         (a)  A right of action of this state or a political
175-14   subdivision of the state, including a county, an incorporated city
175-15   or town, a navigation district, a municipal utility district, a
175-16   port authority, an entity acting under Chapter 54, Transportation
175-17   Code [341, Acts of the 57th Legislature, Regular Session, 1961
175-18   (Article 1187f, Vernon's Texas Civil Statutes)], a school district,
175-19   or an entity created under Section 52, Article III, or Section 59,
175-20   Article XVI, Texas Constitution, is not barred by any of the
175-21   following sections:  16.001-16.004, 16.006, 16.007, 16.021-16.028,
175-22   16.030-16.032, 16.035-16.037, 16.051, 16.062, 16.063,
175-23   16.065-16.067, 16.070, 16.071, 31.006, or 71.021.
175-24         SECTION 8.205.  Section 34.005(b), Education Code, is amended
175-25   to read as follows:
175-26         (b)  The warrants must mature in serial installments not
175-27   later than the fifth anniversary of the date of issue and bear
 176-1   interest at a rate not to exceed the maximum rate provided by
 176-2   Section 1204.006, Government Code [2(a), Chapter 3, Acts of the
 176-3   61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
 176-4   Texas Civil Statutes)].  The warrants shall be issued and sold at
 176-5   not less than their face value.
 176-6         SECTION 8.206.  Section 34.009(d), Education Code, is amended
 176-7   to read as follows:
 176-8         (d)  Termination penalties may not be included in any
 176-9   contract under this section.  The net effective interest rate on
176-10   any contract must comply with Chapter 1204, Government Code [3,
176-11   Acts of the 61st Legislature, Regular Session, 1969 (Article
176-12   717k-2, Vernon's Texas Civil Statutes)].
176-13         SECTION 8.207.  Sections 45.0011(b) and (f), Education Code,
176-14   are amended to read as follows:
176-15         (b)  A district to which this section applies may, in the
176-16   issuance of bonds as provided by Sections 45.001 and 45.003(b)(1),
176-17   exercise the powers granted to the governing body of an issuer with
176-18   regard to the issuance of obligations and execution of credit
176-19   agreements under Chapter 1371, Government Code [656, Acts of the
176-20   68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
176-21   Texas Civil Statutes)].
176-22         (f)  Sections 1371.057 and 1371.059, Government Code, govern
176-23   [Section 6, Chapter 656, Acts of the 68th Legislature, Regular
176-24   Session, 1983 (Article 717q, Vernon's Texas Civil Statutes),
176-25   governs] approval by the attorney general of obligations issued
176-26   under the authority of this section.
176-27         SECTION 8.208.  Section 45.004(j), Education Code, is amended
 177-1   to read as follows:
 177-2         (j)  Refunding bonds may be issued under this section to
 177-3   refund any bonds that are scheduled to mature or that are subject
 177-4   to redemption before maturity, not more than 20 years from the date
 177-5   of the refunding bonds.  The refunding bonds may be sold at public
 177-6   or private sale under the procedures, at the price, and on the
 177-7   terms determined by the governing board or commissioners court.  In
 177-8   addition, the bonds may be sold bearing interest at the rate
 177-9   determined by the governing board or commissioners court, but not
177-10   to exceed the maximum rate prescribed by Chapter 1204, Government
177-11   Code [3, Acts of the 61st Legislature, Regular Session, 1969
177-12   (Article 717k-2, Vernon's Texas Civil Statutes)]. The governing
177-13   board or commissioners court may pledge to the payment of any
177-14   refunding bonds any surplus income to be available from the
177-15   investment or reinvestment of any deposit made as authorized by
177-16   this section or any other available revenues, income, or resources.
177-17         SECTION 8.209.  Section 45.054, Education Code, is amended to
177-18   read as follows:
177-19         Sec. 45.054.  ELIGIBILITY.  To be eligible for approval by
177-20   the commissioner, bonds must be issued under Subchapter A of this
177-21   chapter or under Subchapter A, Chapter 1207, Government Code, to
177-22   make a deposit under Subchapter B or C of that chapter [Chapter
177-23   503, Acts of the 54th Legislature, 1955 (Article 717k, Vernon's
177-24   Texas Civil Statutes)], by an accredited school district.
177-25         SECTION 8.210.  Section 45.082(c), Education Code, is amended
177-26   to read as follows:
177-27         (c)  The board is not required to comply with this section if
 178-1   the sale is:
 178-2               (1)  to a corporation established by the district under
 178-3   Chapter 303, Local Government Code [Article 717s, Revised
 178-4   Statutes]; and
 178-5               (2)  subject to a lease-purchase agreement under which
 178-6   the district will acquire the real property.
 178-7         SECTION 8.211.  Section 45.085(h), Education Code, is amended
 178-8   to read as follows:
 178-9         (h)  Chapter 1201, Chapter 1204, and Subchapters A-C, Chapter
178-10   1207, Government Code [Chapter 503, Acts of the 54th Legislature,
178-11   1955 (Article 717k, Vernon's Texas Civil Statutes), Chapter 3, Acts
178-12   of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
178-13   Vernon's Texas Civil Statutes), and the Bond Procedures Act of 1981
178-14   (Article 717k-6, Vernon's Texas Civil Statutes)], apply to bonds
178-15   issued pursuant to this subchapter.
178-16         SECTION 8.212.  Section 45.104(d), Education Code, is amended
178-17   to read as follows:
178-18         (d)  A loan secured by delinquent taxes may bear interest at
178-19   a rate not to exceed the maximum rate provided by Section 1204.006,
178-20   Government Code [2(a), Chapter 3, Acts of the 61st Legislature,
178-21   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
178-22   Statutes)].
178-23         SECTION 8.213.  Section 45.111(i), Education Code, is amended
178-24   to read as follows:
178-25         (i)  Each governing body may refund or refinance outstanding
178-26   certificates by issuing new interest-bearing certificates within
178-27   the limitations and conditions provided in this section.  The new
 179-1   certificates shall be issued and delivered in lieu of and on
 179-2   surrender to the comptroller and the cancellation of the
 179-3   obligations being refunded, and the comptroller shall register the
 179-4   new certificates and deliver them in accordance with the order
 179-5   authorizing their issuance.  The new certificates may be issued in
 179-6   accordance with Subchapter A, Chapter 1207, Government Code, and
 179-7   delivered in accordance with Subchapter B or C of that chapter
 179-8   [Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k,
 179-9   Vernon's Texas Civil Statutes)].
179-10         SECTION 8.214.  Section 52.17(f), Education Code, is amended
179-11   to read as follows:
179-12         (f)  With respect to loans granted under this chapter, the
179-13   board shall file semiannually with the Bond Review Board [bond
179-14   review board established under Chapter 1078, Acts of the 70th
179-15   Legislature, Regular Session, 1987 (Article 717k-7, Vernon's Texas
179-16   Civil Statutes),] a report on the performance of the loans, the
179-17   Texas college interest and sinking fund, and each board interest
179-18   and sinking fund.  The Bond Review Board [bond review board] shall
179-19   review the reports filed by the board under this subsection to
179-20   assess the performance of the loans under this chapter, the Texas
179-21   college interest and sinking fund, and each board interest and
179-22   sinking fund.  The filing dates and the contents of the reports
179-23   must comply with any rules adopted by the Bond Review Board [bond
179-24   review board].
179-25         SECTION 8.215.  Section 52.82(b), Education Code, is amended
179-26   to read as follows:
179-27         (b)  Before the board may issue bonds under this subchapter,
 180-1   the Bond Review Board [bond review board] must review and approve
 180-2   the bonds under Chapter 1231, Government Code [1078, Acts of the
 180-3   70th Legislature, Regular Session, 1987 (Article 717k-7, Vernon's
 180-4   Texas Civil Statutes)].
 180-5         SECTION 8.216.  Section 53.35(a), Education Code, is amended
 180-6   to read as follows:
 180-7         (a)  The bonds shall be authorized by resolution adopted by a
 180-8   majority vote of a quorum of the board.  Bonds authorized under
 180-9   this section shall be issued in accordance with Chapter 1201,
180-10   Government Code [845, Acts of the 67th Legislature, Regular
180-11   Session, 1981 (Article 717k-6, Vernon's Texas Civil Statutes)].
180-12   The bonds shall mature serially or otherwise in not to exceed 50
180-13   years.  The rate of interest to be borne by the bonds shall not
180-14   exceed the maximum rate prescribed by Chapter 1204, Government Code
180-15   [3, Acts of the 61st Legislature, Regular Session, 1969 (Article
180-16   717k-2, Vernon's Texas Civil Statutes)].
180-17         SECTION 8.217.  Section 53.36(b), Education Code, is amended
180-18   to read as follows:
180-19         (b)  If, prior to the day set for the adoption of the bond
180-20   resolution, there is presented to the secretary or president of the
180-21   board a petition signed by not less than 10 percent of the
180-22   qualified voters residing in the city or cities comprising the
180-23   authority, who own taxable property in the authority and who have
180-24   duly rendered it for taxation to the city in which such property is
180-25   located or situated, requesting an election on the proposition for
180-26   the issuance of the bonds, the bonds shall not be issued unless an
180-27   election is held and a majority vote is in favor of the bonds.  The
 181-1   election shall be called and held in accordance with the procedure
 181-2   prescribed in Chapter 1251, Government Code [1, Title 22, Revised
 181-3   Civil Statutes of Texas, 1925, as amended], with the board and the
 181-4   president and secretary performing the functions there assigned to
 181-5   the governing body of the city, the mayor and city secretary,
 181-6   respectively.  If no such petition is filed, the bonds may be
 181-7   issued without an election.  However, the board may call an
 181-8   election on its own motion without the filing of the petition.
 181-9         SECTION 8.218.  Section 53.39, Education Code, is amended to
181-10   read as follows:
181-11         Sec. 53.39.  REFUNDING BONDS.  Bonds may be issued for the
181-12   purpose of refunding outstanding bonds in the manner provided in
181-13   this chapter for other bonds, and may be exchanged by the
181-14   comptroller [of public accounts] or sold and the proceeds applied
181-15   in accordance with the procedure prescribed by Subchapter B or C,
181-16   Chapter 1207, Government Code [Chapter 503, Acts of the 54th
181-17   Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes)].
181-18         SECTION 8.219.  Section 53.47(a), Education Code, is amended
181-19   to read as follows:
181-20         (a)  An authority may, upon approval of the city or cities
181-21   which created the same, issue revenue bonds or otherwise borrow
181-22   money to obtain funds to purchase or to make student or parent loan
181-23   notes which are guaranteed under the provisions of the Higher
181-24   Education Act of 1965 (Public Law 89-329).  Revenue bonds issued
181-25   for such purpose shall be issued in accordance with and with the
181-26   effect provided in this chapter, except Section 53.36 shall not
181-27   apply, as this [said] chapter has been modified by Chapter 1204,
 182-1   Government Code, and Subchapters A and D, Chapter 1207, Government
 182-2   Code [3, Acts of the 61st Legislature, Regular Session, 1969, as
 182-3   amended (Article 717k-2, Vernon's Texas Civil Statutes), and by
 182-4   Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
 182-5   (Article 717k-3, Vernon's Texas Civil Statutes)].  Such bonds shall
 182-6   be payable from and secured by a pledge of revenues derived from or
 182-7   by reason of the ownership of student or parent loan notes and
 182-8   investment income after deduction of such expenses or operating the
 182-9   loan program as may be specified by the bond resolution or trust
182-10   indenture.
182-11         SECTION 8.220.  Section 55.25, Education Code, is amended to
182-12   read as follows:
182-13         Sec. 55.25.  APPLICABILITY OF OTHER LAW; CONFLICTS.  Chapters
182-14   1201, 1202, 1204, and 1371, Government Code [Chapter 656, Acts of
182-15   the 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
182-16   Texas Civil Statutes), Chapter 3, Acts of the 61st Legislature,
182-17   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
182-18   Statutes), the Bond Procedures Act of 1981 (Article 717k-6,
182-19   Vernon's Texas Civil Statutes), and Chapter 53, Acts of the 70th
182-20   Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
182-21   Texas Civil Statutes)], apply to all bonds issued pursuant to this
182-22   chapter; provided, however, that in the event of any conflict
182-23   between such laws and this chapter, the provisions of this chapter
182-24   prevail.
182-25         SECTION 8.221.  Section 56.126(c), Education Code, is amended
182-26   to read as follows:
182-27         (c)  The board must issue the bonds in the manner provided by
 183-1   Chapter 1201, Government Code [the Bond Procedures Act of 1981
 183-2   (Article 717k-6, Vernon's Texas Civil Statutes)].
 183-3         SECTION 8.222.  Section 56.129, Education Code, is amended to
 183-4   read as follows:
 183-5         Sec. 56.129.  INTEREST RATE.  The revenue bonds or refunding
 183-6   bonds must bear interest at a rate not to exceed the rate provided
 183-7   by Chapter 1204, Government Code [3, Acts of the 61st Legislature,
 183-8   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
 183-9   Statutes)].
183-10         SECTION 8.223.  Section 65.46(d), Education Code, is amended
183-11   to read as follows:
183-12         (d)  The board may enter into financing programs under which
183-13   the board may issue notes for any lawful purpose for which bonds or
183-14   notes may be issued and may make provision for the notes initially
183-15   issued under the programs to be refinanced, renewed, or refunded
183-16   throughout the period of the programs by the issuance, sale, and
183-17   delivery of additional notes.  The notes may be secured in any
183-18   manner provided by law for securing notes or bonds, and also may be
183-19   secured by the proceeds of the sale of notes, the proceeds of the
183-20   sale of bonds, or credit agreements, all as the board provides in
183-21   the resolution authorizing the financing program and the issuance
183-22   of notes under the program.  The board may:
183-23               (1)  provide in the resolution authorizing the
183-24   financing program for the maximum principal amount of notes to be
183-25   outstanding at any time under the financing program;
183-26               (2)  provide for the authorization of one or more
183-27   officers or employees of the board to act on behalf of the board in
 184-1   selling and delivering notes and fixing their dates, prices,
 184-2   interest rates, terms of payment, and other procedures relating to
 184-3   the notes as specified in the resolution;
 184-4               (3)  contract for the future sale of notes under which
 184-5   designated purchasers are committed to purchase notes from time to
 184-6   time on the terms and conditions stated in the contract, including
 184-7   a credit agreement executed in connection with the notes;
 184-8               (4)  provide for the payment of consideration that the
 184-9   board considers proper for the purchase commitments, and provide
184-10   for the payment of the consideration out of proceeds from the sale
184-11   of notes or from any other source that is available for the purpose
184-12   of paying the notes or that may otherwise be legally available to
184-13   make the payments; and
184-14               (5)  exercise any other rights and powers that are
184-15   granted to issuers of [short term] obligations under Chapter 1371,
184-16   Government Code [656, Acts of the 68th Legislature, Regular
184-17   Session, 1983 (Article 717q, Vernon's Texas Civil Statutes)], which
184-18   also governs the approval by the attorney general of the notes,
184-19   related credit agreements, and other contracts or instruments and
184-20   the registration of the notes by the comptroller [of public
184-21   accounts].
184-22         SECTION 8.224.  Sections 130.1221(b) and (e), Education Code,
184-23   are amended to read as follows:
184-24         (b)  A district to which this section applies may, in the
184-25   issuance of bonds as provided by Section 130.122, exercise the
184-26   powers granted to the governing body of an issuer with regard to
184-27   the issuance of obligations and execution of credit agreements
 185-1   under Chapter 1371, Government Code [656, Acts of the 68th
 185-2   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
 185-3   Civil Statutes)].
 185-4         (e)  Sections 1371.057 and 1371.059, Government Code, govern
 185-5   [Section 6, Chapter 656, Acts of the 68th Legislature, Regular
 185-6   Session, 1983 (Article 717q, Vernon's Texas Civil Statutes),
 185-7   governs] approval by the attorney general of obligations issued
 185-8   under the authority of this section.
 185-9         SECTION 8.225.  Section 130.125(a)(5), Education Code, is
185-10   amended to read as follows:
185-11               (5)  "Obligations" means notes, warrants, or other
185-12   special obligations authorized to be issued by an issuer under the
185-13   provisions of this section and all "public securities" ["bonds"] as
185-14   defined by Section 1201.002, Government Code [in the Bond
185-15   Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
185-16   Statutes)], which prior to the delivery thereof, have been rated by
185-17   a nationally recognized rating agency for municipal securities in
185-18   either one of the three highest ranking categories for short-term
185-19   obligations or one of the four highest ranking categories for
185-20   long-term obligations.  It is provided, however, that the term
185-21   "obligations" does not mean or include any obligations payable from
185-22   ad valorem taxes.
185-23         SECTION 8.226.  Section 130.125(c), Education Code, is
185-24   amended to read as follows:
185-25         (c)  The issuance of obligations shall be authorized by
185-26   resolution or order of the governing body of an issuer, which
185-27   resolution or order shall fix the maximum amount of obligations to
 186-1   be issued or, if applicable, the maximum principal amount which may
 186-2   be outstanding at any time, the maximum term obligations issued and
 186-3   delivered pursuant to such authorization shall be outstanding, the
 186-4   maximum interest rate to be borne by the obligations (within the
 186-5   limitations of Chapter 1204, Government Code) [3, Acts of the 61st
 186-6   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
 186-7   Civil Statutes))], the manner of sale (which may be by either
 186-8   public or private sale), price, form, terms, conditions, and
 186-9   covenants thereof.  The resolution or order authorizing the
186-10   issuance of obligations may provide for the designation of a paying
186-11   agent and registrar for the obligations and may authorize one or
186-12   more designated officers or employers of the issuer to act on
186-13   behalf of the issuer from time to time in the selling and
186-14   delivering of obligations authorized and fixing the dates, price,
186-15   interest rates, interest payment periods, and other procedures as
186-16   may be specified in the resolution or order.  Obligations may be
186-17   issued in such form or such denomination, payable at such time or
186-18   times, in such amount or amounts or installments, at such place or
186-19   places, in such form, under such terms, conditions, and details, in
186-20   such manner, redeemable prior to maturity at any time or times,
186-21   bearing no interest, or bearing interest at any rate or rates
186-22   (either fixed, variable, floating, adjustable, or otherwise, all as
186-23   determined in accordance with the resolution or order providing for
186-24   the issuance of the obligations, which resolution or order may
186-25   provide a formula, index, contract, or any other arrangement for
186-26   the periodic determination of interest rates), not to exceed the
186-27   maximum net effective interest rate allowed by law and may be
 187-1   signed or otherwise executed in such manner, with manual or
 187-2   facsimile signatures, and with or without a seal, all as shall be
 187-3   specified by the governing body of the issuer in the resolution or
 187-4   order authorizing the issuance of the obligations.  The proceeds
 187-5   received from the sale of obligations may be deposited or invested
 187-6   in any manner and in such obligations as may be specified in the
 187-7   resolution or order or other proceedings authorizing the
 187-8   obligations.  In the event any officer or officers whose signatures
 187-9   are on any obligations cease to be such officer or officers before
187-10   the delivery thereof to the purchaser, such signature or signatures
187-11   shall nevertheless be valid and sufficient for all purposes and the
187-12   successor or successors in office of any such officers shall be
187-13   fully authorized to complete the execution, authentication, or
187-14   delivery of said obligations to the purchaser or purchasers
187-15   thereof.
187-16         SECTION 8.227.  Section 130.126(d), Education Code, is
187-17   amended to read as follows:
187-18         (d)  Except as provided by Subsection (b) of this section,
187-19   the governing board of a public junior college district or regional
187-20   college district must issue the notes in the manner provided by
187-21   Chapter 1201, Government Code [the Bond Procedures Act of 1981
187-22   (Article 717k-6, Vernon's Texas Civil Statutes)].
187-23         SECTION 8.228.  Sections 130.127 and 130.129, Education Code,
187-24   are amended to read as follows:
187-25         Sec. 130.127.  REFUNDING NOTES.  The governing board of a
187-26   public junior college district or regional college district may
187-27   issue refunding notes to refund notes issued under Section 130.126
 188-1   of this code in the manner and for the purposes provided by
 188-2   Subchapter A, Chapter 1207, Government Code, to make a deposit
 188-3   under Subchapter B or C of that chapter [Chapter 503, Acts of the
 188-4   54th Legislature, 1955 (Article 717k, Vernon's Texas Civil
 188-5   Statutes)].
 188-6         Sec. 130.129.  INTEREST RATE.  Notes and refunding notes
 188-7   issued under this subchapter must bear interest at a rate not to
 188-8   exceed the rate provided by Chapter 1204, Government Code [3, Acts
 188-9   of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
188-10   Vernon's Texas Civil Statutes)].
188-11         SECTION 8.229.  Section 41.012, Government Code, is amended
188-12   to read as follows:
188-13         Sec. 41.012.  LIABILITY INSURANCE.  A county or district
188-14   attorney may purchase, for himself and for his staff members,
188-15   liability insurance, or similar coverage from a governmental pool
188-16   operating under Chapter 119, Local Government Code, or a
188-17   self-insurance fund or risk retention group operating under Chapter
188-18   2259 [1084, Acts of the 70th Legislature, Regular Session, 1987
188-19   (Article 715c, Vernon's Texas Civil Statutes)], to insure against
188-20   claims arising from the performance of his official duties from
188-21   state or county funds appropriated or allocated for the expenses of
188-22   his office or from accounts maintained by the county or district
188-23   attorney, including but not limited to the fund created by charges
188-24   assessed by the county or district attorney in connection with the
188-25   collection of "insufficient fund" negotiable instruments.
188-26         SECTION 8.230.  Section 404.027(c), Government Code, is
188-27   amended to read as follows:
 189-1         (c)  In this section:
 189-2               (1)  "Credit agreement" has the meaning assigned by
 189-3   Section 1371.001. [1(6), Chapter 656, Acts of the 68th Legislature,
 189-4   Regular Session, 1983 (Article 717q, Vernon's Texas Civil
 189-5   Statutes); and]
 189-6               (2)  "Obligations" include commercial paper, variable
 189-7   rate demand obligations, and "public securities" ["bonds"] as
 189-8   defined by Section 1201.002 [(1)(b), Chapter 845, Acts of the 67th
 189-9   Legislature, Regular Session, 1981 (Article 717k-6, Vernon's Texas
189-10   Civil Statutes)].
189-11         SECTION 8.231.  Section 404.103(d), Government Code, is
189-12   amended to read as follows:
189-13         (d)  The trust company may act as escrow agent for refunding
189-14   bonds issued under Subchapter A, Chapter 1207, to make a deposit
189-15   under Subchapter B or C of that chapter [Chapter 503, Acts of the
189-16   54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
189-17   Texas Civil Statutes)].
189-18         SECTION 8.232.  Section 404.123(e), Government Code, is
189-19   amended to read as follows:
189-20         (e)  The notes are not subject to review by the Bond Review
189-21   Board [bond review board created by Senate Bill 1027, Acts of the
189-22   70th Legislature, Regular Session, 1987].
189-23         SECTION 8.233.  Sections 404.125(c) and (d), Government Code,
189-24   are amended to read as follows:
189-25         (c)  In connection with the issuance of the notes, the
189-26   comptroller may exercise the powers granted to the governing body
189-27   of an issuer in connection with the issuance of obligations under
 190-1   Chapter 1371 [656, Acts of the 68th Legislature, Regular Session,
 190-2   1983 (Article 717q, Vernon's Texas Civil Statutes),] to the extent
 190-3   not inconsistent with this section.  The notes are subject to
 190-4   review and approval by the attorney general in the same manner and
 190-5   with the same effect as is provided by that chapter [Act].
 190-6         (d)  The comptroller is an authorized issuer under Chapter
 190-7   1201 [the Bond Procedures Act of 1981 (Article 717k-6, Vernon's
 190-8   Texas Civil Statutes)], and [the procedures, terms, and provisions
 190-9   of] that chapter applies [Act apply] to the tax and revenue
190-10   anticipation notes authorized in this subchapter.
190-11         SECTION 8.234.  Sections 465.025(b) and (c), Government Code,
190-12   are amended to read as follows:
190-13         (b)  Bonds may bear no interest or may bear interest at a
190-14   rate or rates, fixed, variable, floating, or otherwise, determined
190-15   by the commission or a financing corporation, as applicable, or
190-16   determined pursuant to any contractual arrangements approved by the
190-17   commission or the financing corporation, as applicable, not to
190-18   exceed the maximum net effective interest rate allowed by Chapter
190-19   1204 [3, Acts of the 61st Legislature, Regular Session, 1969
190-20   (Article 717k-2, Vernon's Texas Civil Statutes)].  Interest on the
190-21   bonds may be payable at any time and the rate of interest on the
190-22   bonds may be adjusted at a time determined by the commission or the
190-23   financing corporation, as applicable, or as determined by
190-24   contractual arrangement approved by the commission or the financing
190-25   corporation, as applicable.
190-26         (c)  In connection with the issuance of its bonds, the
190-27   commission and any financing corporation may exercise the powers
 191-1   granted to the governing body of an issuer in connection with the
 191-2   issuance of obligations under Chapter 1371 [656, Acts of the 68th
 191-3   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
 191-4   Civil Statutes),] to the extent not inconsistent with this section.
 191-5         SECTION 8.235.  Section 465.030, Government Code, is amended
 191-6   to read as follows:
 191-7         Sec. 465.030.  REFUNDING.  The commission and any financing
 191-8   corporation may issue bonds to refund all or part of the
 191-9   outstanding bonds of the commission or the financing corporation,
191-10   including matured but unpaid interest, in whole or in part, in the
191-11   manner provided by other applicable statutes, including Chapter
191-12   1207 [503, Acts of the 54th Legislature, Regular Session, 1955
191-13   (Article 717k, Vernon's Texas Civil Statutes), and Chapter 784,
191-14   Acts of the 61st Legislature, Regular Session, 1969 (Article
191-15   717k-3, Vernon's Texas Civil Statutes)].  If the provision for the
191-16   payment of all interest and applicable premiums on and principal of
191-17   revenue bonds issued under this subchapter has been made through
191-18   the irrevocable deposit of money with the comptroller as provided
191-19   by an applicable statute, the amount of the revenue bonds may no
191-20   longer be charged against the issuing authority of the commission
191-21   and the financing corporations, and on the making of that provision
191-22   the issuing authority is restored to the extent of the principal
191-23   amount of the revenue bonds.
191-24         SECTION 8.236.  Section 481.023(a), Government Code, is
191-25   amended to read as follows:
191-26         (a)  The department shall perform the administrative duties
191-27   prescribed under:
 192-1               (1)  Chapter 1433 [the Act for Development of
 192-2   Employment, Industrial and Health Resources of 1971 (Article
 192-3   5190.1, Vernon's Texas Civil Statutes)]; and
 192-4               (2)  the Development Corporation Act of 1979 (Article
 192-5   5190.6, Vernon's Texas Civil Statutes).
 192-6         SECTION 8.237.  Section 495.021(b), Government Code, is
 192-7   amended to read as follows:
 192-8         (b)  A contract under this section is subject to review and
 192-9   approval by the Bond Review Board [bond review board] under the
192-10   provisions of Chapter 1231 [1078, Acts of the 70th Legislature,
192-11   Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil
192-12   Statutes),] without regard to the amount or the duration of the
192-13   contract.
192-14         SECTION 8.238.  Section 531.191(f), Government Code, is
192-15   amended to read as follows:
192-16         (f)  The design, development, and operation of an automated
192-17   data processing system to support the plan required by Subsection
192-18   (a) may be financed through the issuance of bonds or other
192-19   obligations under Chapter 1232 [the Texas Public Finance Authority
192-20   Act (Article 601d, Vernon's Texas Civil Statutes)].
192-21         SECTION 8.239.  Section 612.005(d), Government Code, is
192-22   amended to read as follows:
192-23         (d)  A political subdivision may satisfy this section by:
192-24               (1)  electing to be self-insured under Chapter 2259
192-25   [1084, Acts of the 70th Legislature, Regular Session, 1987 (Article
192-26   715c, Vernon's Texas Civil Statutes)];
192-27               (2)  entering into a risk retention group, risk
 193-1   management pool, or interlocal contract with other political
 193-2   subdivisions under [Chapter 1084, Acts of the 70th Legislature,
 193-3   Regular Session, 1987 (Article 715c, Vernon's Texas Civil
 193-4   Statutes),] Chapter 119, Local Government Code, or Chapter 791 or
 193-5   2259; or
 193-6               (3)  providing for coverage by an insurance company
 193-7   authorized to write motor vehicle liability insurance coverage.
 193-8         SECTION 8.240.  Section 2165.005(a), Government Code, is
 193-9   amended to read as follows:
193-10         (a)  This section prescribes the procedure for naming a
193-11   building owned by this [the] state, including a building financed
193-12   under Chapter 1232 [the Texas Public Finance Authority Act (Article
193-13   601d, Vernon's Texas Civil Statutes)].
193-14         SECTION 8.241.  Sections 2166.453(d), (e), (g), and (h),
193-15   Government Code, are amended to read as follows:
193-16         (d)  If the commission makes the necessary determination
193-17   under Subsection (c) and the purchase or construction is approved
193-18   under Subsection (b), the Texas Public Finance Authority shall
193-19   issue and sell bonds to finance the purchase or construction under
193-20   Chapter 1232 [the Texas Public Finance Authority Act (Article 601d,
193-21   Vernon's Texas Civil Statutes)], and the commission may purchase or
193-22   construct the building under that chapter [Act] and other
193-23   applicable law.
193-24         (e)  The limitation prescribed by Section 1232.102 [9, Texas
193-25   Public Finance Authority Act (Article 601d, Vernon's Texas Civil
193-26   Statutes),] relating to the location of a building for which bonds
193-27   may be issued and sold does not apply to financing the purchase or
 194-1   construction of a building under this section.
 194-2         (g)  If a state agency vacates leased space to move into
 194-3   space in a building purchased or constructed under this section or
 194-4   if the leased space itself is purchased under this section, the
 194-5   money specifically appropriated by the legislature or the money
 194-6   available to and budgeted by the agency for lease payments for the
 194-7   leased space for the remainder of the biennium may be used only for
 194-8   rental or installment payments for the purchased or constructed
 194-9   space under Section 1232.116(b) [12(b), Texas Public Finance
194-10   Authority Act (Article 601d, Vernon's Texas Civil Statutes),] and
194-11   for the payment of operating expenses for the purchased or
194-12   constructed space that are incurred by the commission.  The
194-13   comptroller may adopt rules for the administration of this
194-14   subsection.
194-15         (h)  In this section, "total space occupancy costs" include:
194-16               (1)  for leased space, the direct cost of the lease
194-17   payments for the space;
194-18               (2)  for purchased or constructed space, the direct
194-19   cost of rental or installment payments for the space under Section
194-20   1232.116(b) [12(b), Texas Public Finance Authority Act (Article
194-21   601d, Vernon's Texas Civil Statutes)];
194-22               (3)  the cost of necessary renovations;
194-23               (4)  operating costs, including janitorial and utility
194-24   costs; and
194-25               (5)  for purchased or constructed space, the cost of
194-26   maintaining a cash replacement reserve sufficient to service
194-27   structural maintenance requirements reflecting the expected
 195-1   performance life of the major capital expense items of the building
 195-2   for the term of the bonded indebtedness.
 195-3         SECTION 8.242.  Section 2166.553, Government Code, is amended
 195-4   to read as follows:
 195-5         Sec. 2166.553.  ACQUISITION AND CONSTRUCTION OF BUILDINGS FOR
 195-6   HEALTH AND HUMAN SERVICES AGENCIES.  (a)  The commission may not
 195-7   acquire or approve construction of a building, including a building
 195-8   the acquisition or construction of which is financed under Chapter
 195-9   1232 [the Texas Public Finance Authority Act (Article 601d,
195-10   Vernon's Texas Civil Statutes)], to serve the needs of a single
195-11   health and human services agency unless the agency can provide a
195-12   reason to the commission for not sharing space in the building with
195-13   one or more other health and human services agencies.
195-14         (b)  In this section, "health and human services agency"
195-15   means the:
195-16               (1)  Interagency Council on Early Childhood
195-17   Intervention Services;
195-18               (2)  Texas Department on Aging;
195-19               (3)  Texas Commission on Alcohol and Drug Abuse;
195-20               (4)  Texas Commission for the Blind;
195-21               (5)  Texas Commission for the Deaf and Hard of Hearing
195-22   [Impaired];
195-23               (6)  Texas Department of Health;
195-24               (7)  Texas Department of Human Services;
195-25               (8)  Texas Juvenile Probation Commission;
195-26               (9)  Texas Department of Mental Health and Mental
195-27   Retardation;
 196-1               (10)  Texas Rehabilitation Commission; and
 196-2               (11)  Department of Protective and Regulatory Services.
 196-3         SECTION 8.243.  Section 2301.035, Government Code, is amended
 196-4   to read as follows:
 196-5         Sec. 2301.035.  FUNDS.  An authority may:
 196-6               (1)  make loans to public or private entities to fund
 196-7   eligible projects;
 196-8               (2)  issue bonds to fund eligible projects; and
 196-9               (3)  encumber its property, pledge its revenues, and
196-10   enter credit agreements, as defined by Section 1371.001 [Chapter
196-11   656, Acts of the 68th Legislature, Regular Session, 1983 (Article
196-12   717q, Vernon's Texas Civil Statutes)], to secure its bonds.
196-13         SECTION 8.244.  Section 2301.091(d), Government Code, is
196-14   amended to read as follows:
196-15         (d)  In issuing bonds, an authority may exercise the powers
196-16   granted to the governing body of an issuer relating to the issuance
196-17   of obligations under Chapter 1371 [656, Acts of the 68th
196-18   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
196-19   Civil Statutes)].
196-20         SECTION 8.245.  Sections 2301.092(e) and (g), Government
196-21   Code, are amended to read as follows:
196-22         (e)  The bonds may bear no interest or a rate of interest
196-23   determined by the authority or by a contractual agreement approved
196-24   by the authority, but may not exceed the maximum net effective
196-25   interest rate allowed by Chapter 1204 [3, Acts of the 61st
196-26   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
196-27   Civil Statutes)].
 197-1         (g)  The bonds are subject to review and approval by the
 197-2   attorney general in the same manner and with the same effect as is
 197-3   provided by Chapter 1371 [656, Acts of the 68th Legislature,
 197-4   Regular Session, 1983 (Article 717q, Vernon's Texas Civil
 197-5   Statutes)].
 197-6         SECTION 8.246.  Section 2303.509, Government Code, is amended
 197-7   to read as follows:
 197-8         Sec. 2303.509.  DEVELOPMENT BONDS.  To finance a project in
 197-9   an enterprise zone, bonds may be issued under:
197-10               (1)  Chapter 1433 [the Act for Development of
197-11   Employment, Industrial and Health Resources of 1971 (Article
197-12   5190.1, Vernon's Texas Civil Statutes)]; or
197-13               (2)  the Development Corporation Act of 1979 (Article
197-14   5190.6, Vernon's Texas Civil Statutes).
197-15         SECTION 8.247.  Section 2306.354(d), Government Code, is
197-16   amended to read as follows:
197-17         (d)  The refunded  bonds or obligations may be refunded in
197-18   another manner permitted by this chapter or other state law,
197-19   including Chapter 1207 [503, Acts of the 54th Legislature, Regular
197-20   Session, 1955 (Article 717k, Vernon's Texas Civil Statutes), and
197-21   Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
197-22   (Article 717k-3, Vernon's Texas Civil Statutes)].
197-23         SECTION 8.248.  Section 2310.408, Government Code, is amended
197-24   to read as follows:
197-25         Sec. 2310.408.  DEVELOPMENT BONDS.  To finance a project in a
197-26   readjustment zone, bonds may be issued under:
197-27               (1)  Chapter 1433 [the Act for Development of
 198-1   Employment, Industrial and Health Resources of 1971 (Article
 198-2   5190.1, Vernon's Texas Civil Statutes)]; or
 198-3               (2)  the Development Corporation Act of 1979 (Article
 198-4   5190.6, Vernon's Texas Civil Statutes).
 198-5         SECTION 8.249.  Section 221.064(b), Health and Safety Code,
 198-6   is amended to read as follows:
 198-7         (b)  The net effective interest rate on the bonds, computed
 198-8   according to Chapter 1204, Government Code [3, Acts of the 61st
 198-9   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
198-10   Civil Statutes)], may not exceed the maximum annual interest rate
198-11   established for business loans of $250,000 or more in this state.
198-12         SECTION 8.250.  Section 223.016(b), Health and Safety Code,
198-13   is amended to read as follows:
198-14         (b)  Land previously acquired by eminent domain by an issuer
198-15   may be sold or leased under this chapter if the governing body of
198-16   the issuer determines that:
198-17               (1)  the use of the land will not interfere with the
198-18   purpose for which the land was originally acquired or that the land
198-19   is no longer needed for that purpose;
198-20               (2)  at least seven years have elapsed since the date
198-21   the land was acquired by eminent domain; and
198-22               (3)  the land was not acquired for park purposes or, if
198-23   the land was acquired for park purposes, the sale or lease of
198-24   parkland has been approved at an election held under Section
198-25   1502.055, Government Code [Article 1112, Revised Statutes].
198-26         SECTION 8.251.  Section 223.026(d), Health and Safety Code,
198-27   is amended to read as follows:
 199-1         (d)  The issuer may provide for execution of the bonds and
 199-2   any coupons using a facsimile signature under Chapter 618,
 199-3   Government Code [204, Acts of the 57th Legislature, Regular
 199-4   Session, 1961 (Article 717j-1, Vernon's Texas Civil Statutes)].  If
 199-5   the signature or a facsimile signature of a person who has been an
 199-6   officer appears on a bond or coupon, the signature or facsimile
 199-7   signature is valid and sufficient for all purposes, regardless of
 199-8   whether the person is an officer when the bonds are delivered.
 199-9         SECTION 8.252.  Section 262.043(b), Health and Safety Code,
199-10   is amended to read as follows:
199-11         (b)  Revenue bonds may:
199-12               (1)  be sold at a price and under terms that the board
199-13   considers the most advantageous reasonably obtainable, except that
199-14   the net effective interest rate computed according to [as defined
199-15   by] Chapter 1204, Government Code [3, Acts of the 61st Legislature,
199-16   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
199-17   Statutes)], may not exceed 10 percent a year;
199-18               (2)  be made callable before maturity at times and
199-19   prices prescribed in the resolution authorizing the bonds; and
199-20               (3)  be made registrable as to principal or as to
199-21   principal and interest.
199-22         SECTION 8.253.  Section 262.045(b), Health and Safety Code,
199-23   is amended to read as follows:
199-24         (b)  The election shall be ordered and held as provided by
199-25   Chapter 1251, Government Code [1, Title 22, Revised Statutes].  The
199-26   board, president, and secretary shall perform the functions
199-27   assigned under that chapter respectively to the municipality's
 200-1   governing body, mayor, and municipal secretary.
 200-2         SECTION 8.254.  Section 262.048(b), Health and Safety Code,
 200-3   is amended to read as follows:
 200-4         (b)  Bonds issued under this chapter may be exchanged by the
 200-5   comptroller or sold.  The proceeds shall be applied as provided by
 200-6   Subchapters B and C, Chapter 1207, Government Code [Chapter 503,
 200-7   Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas
 200-8   Civil Statutes)], or other applicable law.
 200-9         SECTION 8.255.  Section 264.043(b), Health and Safety Code,
200-10   is amended to read as follows:
200-11         (b)  Revenue bonds may:
200-12               (1)  be sold at a price and under terms that the board
200-13   considers the most advantageous reasonably obtainable, except that
200-14   the net effective interest rate computed according to [as defined
200-15   by] Chapter 1204, Government Code [3, Acts of the 61st Legislature,
200-16   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
200-17   Statutes)], may not exceed 10 percent a year;
200-18               (2)  be made callable before maturity at times and
200-19   prices prescribed in the resolution authorizing the bonds; and
200-20               (3)  be made registrable as to principal or as to
200-21   principal and interest.
200-22         SECTION 8.256.  Section 264.045(b), Health and Safety Code,
200-23   is amended to read as follows:
200-24         (b)  The election shall be ordered and held as provided by
200-25   Chapter 1251, Government Code [1, Title 22, Revised Statutes].  The
200-26   board, president, and secretary shall perform the functions
200-27   assigned under that chapter respectively to the commissioners
 201-1   court, county judge, and county clerk.
 201-2         SECTION 8.257.  Section 264.048(b), Health and Safety Code,
 201-3   is amended to read as follows:
 201-4         (b)  Bonds issued under this section may be exchanged by the
 201-5   comptroller or sold.  The proceeds shall be applied as provided by
 201-6   Subchapters B and C, Chapter 1207, Government Code [Chapter 503,
 201-7   Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas
 201-8   Civil Statutes)], or other applicable law.
 201-9         SECTION 8.258.  Section 265.041(a), Health and Safety Code,
201-10   is amended to read as follows:
201-11         (a)  The revenue bonds may mature serially or otherwise not
201-12   more than 40 years after they are issued.  The bonds may bear
201-13   interest at a rate not to exceed the maximum rate provided by
201-14   Chapter 1204, Government Code [3, Acts of the 61st Legislature,
201-15   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
201-16   Statutes)], and may be made redeemable prior to maturity.
201-17         SECTION 8.259.  Section 265.043(a), Health and Safety Code,
201-18   is amended to read as follows:
201-19         (a)  The revenue bonds may be sold at public or private sale
201-20   at a price and under terms determined by the directors.  The bonds
201-21   may bear interest at a rate not to exceed the maximum rate provided
201-22   by Chapter 1204, Government Code [3, Acts of the 61st Legislature,
201-23   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
201-24   Statutes)].
201-25         SECTION 8.260.  Section 265.045(d), Health and Safety Code,
201-26   is amended to read as follows:
201-27         (d)  The directors shall order an election requested under
 202-1   Subsection (c) in the county and any part of the municipality that
 202-2   is not in the county.  The election shall be held substantially as
 202-3   provided by Chapter 1251, Government Code [1, Title 22, Revised
 202-4   Statutes].  The board may issue the bonds if the issuance is
 202-5   approved at the election.
 202-6         SECTION 8.261.  Section 281.102(c), Health and Safety Code,
 202-7   is amended to read as follows:
 202-8         (c)  The election must be:
 202-9               (1)  called and held in accordance with Chapter 1251,
202-10   Government Code [1, Title 22, Revised Statutes]; and
202-11               (2)  conducted in the same manner as other countywide
202-12   elections.
202-13         SECTION 8.262.  Section 283.102(b), Health and Safety Code,
202-14   is amended to read as follows:
202-15         (b)  The election must be:
202-16               (1)  ordered and held in accordance with Chapter 1251,
202-17   Government Code [1, Title 22, Revised Statutes]; and
202-18               (2)  conducted in the same manner as other countywide
202-19   elections.
202-20         SECTION 8.263.  Section 285.025(b), Health and Safety Code,
202-21   is amended to read as follows:
202-22         (b)  The bonds may not bear interest at a rate greater than
202-23   that allowed by Chapter 1204, Government Code [3, Acts of the 61st
202-24   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
202-25   Civil Statutes)].
202-26         SECTION 8.264.  Section 286.143(c), Health and Safety Code,
202-27   is amended to read as follows:
 203-1         (c)  Notice of a bond election shall be given as provided by
 203-2   Section 1251.003, Government Code [Article 704, Revised Statutes]. 
 203-3         SECTION 8.265.  Sections 286.145(b) and (c), Health and
 203-4   Safety Code, are amended to read as follows:
 203-5         (b)  The bonds must be issued in the manner provided by
 203-6   Subchapter D, Chapter 1207, Government Code [Chapter 784, Acts of
 203-7   the 61st Legislature, Regular Session, 1969 (Article 717k-3,
 203-8   Vernon's Texas Civil Statutes)].
 203-9         (c)  The refunding bonds may be sold and the proceeds applied
203-10   to the payment of outstanding indebtedness or may be exchanged in
203-11   whole or in part for not less than a similar principal amount of
203-12   outstanding indebtedness.  If the refunding bonds are to be sold
203-13   and the proceeds applied to the payment of outstanding
203-14   indebtedness, the refunding bonds must be issued and payments made
203-15   in the manner provided by Subchapters A-C, Chapter 1207, Government
203-16   Code [Chapter 503, Acts of the 54th Legislature, Regular Session,
203-17   1955 (Article 717k, Vernon's Texas Civil Statutes)].
203-18         SECTION 8.266.  Sections 286.146 and 286.147, Health and
203-19   Safety Code, are amended to read as follows:
203-20         Sec. 286.146.  INTEREST AND MATURITY.  District bonds must
203-21   mature not later than the 50th anniversary of the date of their
203-22   issuance and must bear interest at a rate not to exceed that
203-23   provided by Chapter 1204, Government Code [3, Acts of the 61st
203-24   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
203-25   Civil Statutes)].
203-26         Sec. 286.147.  EXECUTION OF BONDS.  The president of the
203-27   board shall execute the bonds in the name of the district, and the
 204-1   secretary of the board shall countersign the bonds in the manner
 204-2   provided by Chapter 618, Government Code [the Texas Uniform
 204-3   Facsimile Signature of Public Officials Act (Article 717j-1,
 204-4   Vernon's Texas Civil Statutes)].
 204-5         SECTION 8.267.  Sections 287.143(b) and (c), Health and
 204-6   Safety Code, are amended to read as follows:
 204-7         (b)  The bonds must be issued in the manner provided by
 204-8   Subchapter D, Chapter 1207, Government Code [Chapter 784, Acts of
 204-9   the 61st Legislature, Regular Session, 1969 (Article 717k-3,
204-10   Vernon's Texas Civil Statutes)].
204-11         (c)  The refunding bonds may be sold and the proceeds applied
204-12   to the payment of outstanding indebtedness or may be exchanged in
204-13   whole or in part for not less than a similar principal amount of
204-14   outstanding indebtedness.  If the refunding bonds are to be sold
204-15   and the proceeds applied to the payment of outstanding
204-16   indebtedness, the refunding bonds must be issued and payments made
204-17   in the manner provided by Subchapters A-C, Chapter 1207, Government
204-18   Code [Chapter 503, Acts of the 54th Legislature, Regular Session,
204-19   1955 (Article 717k, Vernon's Texas Civil Statutes)].
204-20         SECTION 8.268.  Sections 287.144 and 287.145, Health and
204-21   Safety Code, are amended to read as follows:
204-22         Sec. 287.144.  INTEREST AND MATURITY.  District bonds must
204-23   mature not later than the 50th anniversary of the date of their
204-24   issuance and must bear interest at a rate not to exceed that
204-25   provided by Chapter 1204, Government Code [3, Acts of the 61st
204-26   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
204-27   Civil Statutes)].
 205-1         Sec. 287.145.  EXECUTION OF BONDS.  The president of the
 205-2   board shall execute the bonds in the name of the district, and the
 205-3   secretary of the board shall countersign the bonds in the manner
 205-4   provided by Chapter 618, Government Code [the Texas Uniform
 205-5   Facsimile Signature of Public Officials Act (Article 717j-1,
 205-6   Vernon's Texas Civil Statutes)].
 205-7         SECTION 8.269.  Section 362.016(c), Health and Safety Code,
 205-8   is amended to read as follows:
 205-9         (c)  A public agency that has taxing power may hold an
205-10   election substantially in accordance with Chapter 1251, Government
205-11   Code [1, Title 22, Revised Statutes], applicable to issuance of
205-12   bonds by a municipality to determine whether a contract may be an
205-13   obligation secured by the taxing power of the public agency to an
205-14   extent not permitted by Subsection (b).  If it is determined by a
205-15   favorable vote at the election that the public agency is authorized
205-16   to levy an ad valorem tax to make all or part of the payments under
205-17   the contract, and that the payments are to be made unconditionally
205-18   regardless of whether the contracting person is willing and able to
205-19   receive and dispose of solid waste as provided by the contract, the
205-20   contract is an obligation secured by the public agency's taxing
205-21   power to the extent provided.  The ballot proposition at the
205-22   election must plainly state that ad valorem tax funds may be used
205-23   to make contract payments if the contractor cannot receive or
205-24   dispose of solid waste because of mechanical failure of the
205-25   facility financed by the bonds or for other reasons.
205-26         SECTION 8.270.  Sections 364.033(a) and (c), Health and
205-27   Safety Code, are amended to read as follows:
 206-1         (a)  A contract between a public agency and a county that is
 206-2   authorized by the public agency's governing body is an obligation
 206-3   against the public agency's taxing power to the extent provided by
 206-4   the contract if:
 206-5               (1)  the public agency holds an election according to
 206-6   applicable procedure provided by Chapter 1251, Government Code [1,
 206-7   Title 22, Revised Statutes], relating to the issuance of bonds by a
 206-8   municipality; and
 206-9               (2)  at the election, it is determined that the public
206-10   agency's governing body may levy an ad valorem tax to make any
206-11   payments required of the public agency under the contract.
206-12         (c)  Only qualified voters of the public agency are entitled
206-13   to vote at an election held under this section, and except as
206-14   otherwise provided by this section and by Chapter 1251, Government
206-15   Code [1, Title 22, Revised Statutes], the Election Code governs an
206-16   election under this section.
206-17         SECTION 8.271.  Section 364.054(a), Health and Safety Code,
206-18   is amended to read as follows:
206-19         (a)  As an alternative for, or in addition to, the procedure
206-20   provided by Section 364.053, the board of directors of a district
206-21   may validate its bonds by filing suit under [in a district court in
206-22   the manner and with the effect provided by] Chapter 1205,
206-23   Government Code [400, Acts of the 66th Legislature, 1979 (Article
206-24   717m-1, Vernon's Texas Civil Statutes)].
206-25         SECTION 8.272.  Section 383.026(b), Health and Safety Code,
206-26   is amended to read as follows:
206-27         (b)  Before issuing bonds secured by other utility revenue,
 207-1   the governing body must order an election to determine whether the
 207-2   bonds may be issued.  The governing body shall set the date of the
 207-3   election in accordance with Section 41.001, Election Code.  The
 207-4   manner of holding the election is governed by Chapter 1251,
 207-5   Government Code [1, Title 22, Revised Statutes]. If the majority of
 207-6   voters who vote at the election approve the issuance of the bonds,
 207-7   the governing body may issue the bonds.
 207-8         SECTION 8.273.  Section 402.094(c), Health and Safety Code,
 207-9   is amended to read as follows:
207-10         (c)  The authority may lease property on terms and conditions
207-11   the board determines advantageous to the authority, but land that
207-12   is part of a licensed disposal site may be leased only from the
207-13   Texas Public Finance Authority as provided by Chapter 1232,
207-14   Government Code [the Texas Public Finance Authority Act (Article
207-15   601d, Vernon's Texas Civil Statutes)].
207-16         SECTION 8.274.  Section 402.292(b), Health and Safety Code,
207-17   is amended to read as follows:
207-18         (b)  In the resolution or order authorizing the bonds, the
207-19   board may provide for the bonds to:
207-20               (1)  be executed and delivered at any time as a single
207-21   issue or from time to time as several issues;
207-22               (2)  be in any denomination and form, including
207-23   registered uncertified obligations not represented by written
207-24   instruments and commonly known as book-entry obligations, the
207-25   registration of ownership and transfer of which the authority shall
207-26   provide for under a system of books and records maintained by a
207-27   bank serving as trustee, paying agent, or bond registrar;
 208-1               (3)  be in coupon or registered form;
 208-2               (4)  be payable in installments and have a maturity
 208-3   date not to exceed 30 years from date of issuance;
 208-4               (5)  be subject to terms of redemption prior to
 208-5   maturity;
 208-6               (6)  be payable at a place or places;
 208-7               (7)  bear no interest or bear interest at any rate or
 208-8   rates, fixed, variable, floating, or otherwise determined by the
 208-9   board, not to exceed the maximum net effective interest rate
208-10   allowed by Chapter 1204, Government Code [3, Acts of the 61st
208-11   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
208-12   Civil Statutes)]; and
208-13               (8)  contain other provisions not inconsistent with
208-14   this subchapter.
208-15         SECTION 8.275.  Sections 402.293 and 402.295, Health and
208-16   Safety Code, are amended to read as follows:
208-17         Sec. 402.293.  APPROVAL OF BONDS.  Authority bonds are
208-18   subject to approval by the attorney general and the Bond Review
208-19   Board [bond review board] and registration by the comptroller as
208-20   provided by Chapters 1202 and 1231, Government Code [Article 3,
208-21   Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987
208-22   (Article 717k-8, Vernon's Texas Civil Statutes), and Chapter 1078,
208-23   Acts of the 70th Legislature, Regular Session, 1987 (Article
208-24   717k-7, Vernon's Texas Civil Statutes)].
208-25         Sec. 402.295.  REFUNDING BONDS.  The authority may issue
208-26   bonds to refund all or part of its outstanding bonds, including
208-27   unpaid interest, in the same manner provided by law, including
 209-1   Chapter 1207, Government Code [503, Acts of the 54th Legislature,
 209-2   Regular Session, 1955 (Article 717k, Vernon's Texas Civil
 209-3   Statutes), and Chapter 784, Acts of the 61st Legislature, Regular
 209-4   Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes)].
 209-5         SECTION 8.276.  Section 534.001(c), Health and Safety Code,
 209-6   is amended to read as follows:
 209-7         (c)  A community center is:
 209-8               (1)  an agency of the state, a governmental unit, and a
 209-9   unit of local government, as defined and specified by Chapters 101
209-10   and 102, Civil Practice and Remedies Code;
209-11               (2)  a local government, as defined by Section 791.003,
209-12   Government Code;
209-13               (3)  a local government for the purposes of Chapter
209-14   2259, Government Code [1084, Acts of the 70th Legislature, Regular
209-15   Session, 1987 (Article 715c, Vernon's Texas Civil Statutes)]; and
209-16               (4)  a political subdivision for the purposes of
209-17   Chapter 172, Local Government Code.
209-18         SECTION 8.277.  Sections 534.022(b) and (e), Health and
209-19   Safety Code, are amended to read as follows:
209-20         (b)  The community center shall issue the bonds or notes in
209-21   accordance with Chapters 1201 and 1371, Government Code [the Bond
209-22   Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
209-23   Statutes), and Chapter 656, Acts of the 68th Legislature, Regular
209-24   Session, 1983 (Article 717q, Vernon's Texas Civil Statutes)]. The
209-25   attorney general must approve the bonds before issuance.
209-26         (e)  A county or municipality acting alone or two or more
209-27   counties or municipalities acting jointly pursuant to interlocal
 210-1   contract may create a public facility corporation to act on behalf
 210-2   of one or more community centers pursuant to Chapter 303, Local
 210-3   Government Code [the Public Facility Corporation Act (Article 717s,
 210-4   Revised Statutes)]. Such counties or municipalities may exercise
 210-5   the powers of a sponsor under that chapter [Act], and any such
 210-6   corporation may exercise the powers of a corporation under that
 210-7   chapter [Act] (including but not limited to the power to issue
 210-8   bonds).  The corporation may exercise its powers on behalf of
 210-9   community centers in such manner as may be prescribed by the
210-10   articles and bylaws of the corporation, provided that in no event
210-11   shall one community center ever be liable to pay the debts or
210-12   obligation or be liable for the acts, actions, or undertakings of
210-13   another community center.
210-14         SECTION 8.278.  Section 775.076(g), Health and Safety Code,
210-15   is amended to read as follows:
210-16         (g)  The bonds and notes bear interest at rates not to exceed
210-17   the maximum rate allowed by Chapter 1204, Government Code [3, Acts
210-18   of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
210-19   Vernon's Texas Civil Statutes)].
210-20         SECTION 8.279.  Section 776.076(g), Health and Safety Code,
210-21   is amended to read as follows:
210-22         (g)  The bonds and notes bear interest at rates not to exceed
210-23   the maximum rate allowed by Chapter 1204, Government Code [3, Acts
210-24   of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
210-25   Vernon's Texas Civil Statutes)].
210-26         SECTION 8.280.  Section 794.076(g), Health and Safety Code,
210-27   is amended to read as follows:
 211-1         (g)  The bonds and notes bear interest at rates not to exceed
 211-2   the maximum rate allowed by Chapter 1204, Government Code [3, Acts
 211-3   of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
 211-4   Vernon's Texas Civil Statutes)].
 211-5         SECTION 8.281.  Section 62.002(c), Human Resources Code, is
 211-6   amended to read as follows:
 211-7         (c)  In accordance with the terms of the cooperative
 211-8   agreement, each county which is a party to the agreement may issue
 211-9   the bonds of the county as provided by Chapter 1301, Government
211-10   Code [2, Title 22, Revised Civil Statutes of Texas, 1925, as
211-11   amended], for the purpose of acquiring, maintaining, and operating
211-12   the facilities for juveniles.
211-13         SECTION 8.282.  Section 504.015(a), Labor Code, is amended to
211-14   read as follows:
211-15         (a)  This section applies to a municipal utility operated by
211-16   a board of trustees established under Section 1502.070, Government
211-17   Code [Article 1115, Revised Statutes], or a similar law.
211-18         SECTION 8.283.  Section 504.017, Labor Code, is amended to
211-19   read as follows:
211-20         Sec. 504.017.  FEDERAL AND STATE FUNDED TRANSPORTATION
211-21   ENTITIES.  An entity is eligible to participate under Section
211-22   504.016[;  Chapter 1084, Acts of the 70th Legislature, Regular
211-23   Session, 1987 (Article 715c, Vernon's Texas Civil Statutes);]  or
211-24   Chapter 791 or 2259, Government Code, if the entity provides
211-25   transportation subsidized in whole or in part by and provided to
211-26   clients of:
211-27               (1)  the Texas Department on Aging;
 212-1               (2)  the Texas Commission on Alcohol and Drug Abuse;
 212-2               (3)  the Texas Commission for the Blind;
 212-3               (4)  the Texas Cancer Council;
 212-4               (5)  the Texas Commission for the Deaf and Hard of
 212-5   Hearing;
 212-6               (6)  the Texas Department of Housing and Community
 212-7   Affairs;
 212-8               (7)  the Texas Department of Human Services;
 212-9               (8)  the Texas Department of Mental Health and Mental
212-10   Retardation;
212-11               (9)  the Texas Rehabilitation Commission; or
212-12               (10)  the Texas Youth Commission.
212-13         SECTION 8.284.  Section 504.073(b), Labor Code, is amended to
212-14   read as follows:
212-15         (b)  In a proceeding involving workers' compensation for
212-16   employees of a municipal utility operated by a board of trustees
212-17   established under Section 1502.070, Government Code [Article 1115,
212-18   Revised Statutes], or a similar law, if the board of trustees is a
212-19   self-insurer, the municipality shall be represented by the
212-20   regularly employed attorney or outside counsel of the board of
212-21   trustees.
212-22         SECTION 8.285.  Section 43.075(l), Local Government Code, is
212-23   amended to read as follows:
212-24         (l)  The municipality may issue revenue refunding bonds in
212-25   its own name for the purpose of refunding outstanding district
212-26   revenue bonds, warrants, or other obligations, including unpaid
212-27   accrued interest on them, that are assumed by the municipality
 213-1   under this section.  The municipality may combine different issues
 213-2   of district and municipal revenue bonds, warrants, or other
 213-3   obligations into one series of revenue refunding bonds and may
 213-4   pledge the net revenues of the utility systems or property to the
 213-5   payment of the refunding bonds as the governing body considers
 213-6   proper.  Except as otherwise provided by this section, Chapter
 213-7   1502, Government Code, applies [Articles 1111-1118, Vernon's Texas
 213-8   Civil Statutes, apply] to the revenue refunding bonds, but an
 213-9   election for the issuance of the bonds is not required.  Refunding
213-10   bonds must bear interest at the same rate or at a lower rate than
213-11   that borne by the refunded obligations unless it is shown
213-12   mathematically that a different rate results in a savings in the
213-13   total amount of interest to be paid.
213-14         SECTION 8.286.  Section 154.010(a), Local Government Code, is
213-15   amended to read as follows:
213-16         (a)  A warrant may be drawn on either the general fund or
213-17   salary fund to pay any insurance premium or self-insurance pool
213-18   contribution for the purpose of providing insurance or other
213-19   coverage for the liabilities of an official or employee of the
213-20   county, a district attorney who has all or part of the county
213-21   within the district attorney's jurisdiction, or an official of any
213-22   special purpose district located, in whole or in part, in the
213-23   county arising from the performance of an official duty or a duty
213-24   of employment as authorized by Section 157.041 or Chapter 119[,
213-25   Local Government Code,] or by Chapter 791 or 2259, Government Code
213-26   [1084, Acts of the 70th Legislature, Regular Session, 1987 (Article
213-27   715c, Vernon's Texas Civil Statutes), or by the Interlocal
 214-1   Cooperation Act (Chapter 791, Government Code)].
 214-2         SECTION 8.287.  Section 157.041, Local Government Code, is
 214-3   amended to read as follows:
 214-4         Sec. 157.041.  GENERAL LIABILITY INSURANCE.  (a)  The
 214-5   commissioners court of a county may obtain insurance or similar
 214-6   coverage from a governmental pool operating under Chapter 119 or a
 214-7   self-insurance fund or risk retention group operating under Chapter
 214-8   2259, Government Code [1084, Acts of the 70th Legislature, Regular
 214-9   Session, 1987 (Article 715c, Vernon's Texas Civil Statutes)], for
214-10   an official or employee of the county including county and precinct
214-11   peace officers designated by the commissioners court, a district
214-12   attorney who has all or part of the county within the district
214-13   attorney's jurisdiction, or an official of any special purpose
214-14   district located, in whole or in part, in the county against
214-15   liability arising from the performance of official duties or duties
214-16   of employment.
214-17         (b)  Insurance provided under this section must be purchased
214-18   from an insurance company authorized to do business in this state
214-19   and must be on forms approved by the commissioner of insurance
214-20   [State Board of Insurance].
214-21         (c)  The commissioner of insurance [State Board of Insurance]
214-22   shall adopt rules and set rates to implement this section.
214-23         (d)  Coverage obtained from a pool operating under Chapter
214-24   119 or a self-insurance fund or risk retention group operating
214-25   under Chapter 2259, Government Code [1084, Acts of the 70th
214-26   Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas
214-27   Civil Statutes)], is not insurance and, except as provided by
 215-1   Subsections (b) and (c), is not subject to regulation by the
 215-2   commissioner of insurance [Texas Department of Insurance].
 215-3         SECTION 8.288.  Section 157.043(b), Local Government Code, is
 215-4   amended to read as follows:
 215-5         (b)  The commissioners court of a county may obtain insurance
 215-6   or similar coverage from a governmental pool operating under
 215-7   Chapter 119 or a self-insurance fund or risk retention group
 215-8   operating under Chapter 2259, Government Code [1084, Acts of the
 215-9   70th Legislature, Regular Session, 1987 (Article 715c, Vernon's
215-10   Texas Civil Statutes)], for a county officer or employee, insuring
215-11   the officer or employee from liability for losses arising from the
215-12   performance of official duties by the officer or duties of
215-13   employment by the employee, including losses resulting from errors
215-14   or omissions of the officer or employee or from crime, dishonesty,
215-15   or theft.
215-16         SECTION 8.289.  Section 212.102(2), Local Government Code, is
215-17   amended to read as follows:
215-18               (2)  "Assessment road district" means a road district
215-19   that has issued refunding bonds and that has imposed assessments on
215-20   each parcel of land under Subchapter C, Chapter 1471, Government
215-21   Code [Section 2.018, Article 726, Revised Statutes].
215-22         SECTION 8.290.  Section 252.022(b), Local Government Code, is
215-23   amended to read as follows:
215-24         (b)  This chapter does not apply to bonds or warrants issued
215-25   under Subchapter A, Chapter 421 [Title 118, Revised Statutes,
215-26   relating to seawalls].
215-27         SECTION 8.291.  Section 262.029, Local Government Code, is
 216-1   amended to read as follows:
 216-2         Sec. 262.029.  TIME WARRANT ELECTION.  If before the date
 216-3   tentatively set for the authorization of the issuance of time
 216-4   warrants applying to a contract covered by this subchapter or if
 216-5   before that authorization a petition signed by at least five
 216-6   percent of the registered voters of the county is filed with the
 216-7   county clerk protesting the issuance of the time warrants, the
 216-8   county may not issue the time warrants unless the issuance is
 216-9   approved at an election ordered and conducted in the manner
216-10   provided for county bond elections under Chapter 1251, Government
216-11   Code [1, Title 22, Revised Statutes].
216-12         SECTION 8.292.  Section 270.004(d), Local Government Code, is
216-13   amended to read as follows:
216-14         (d)  The commissioners court may issue negotiable bonds and
216-15   levy taxes for the interest and sinking funds of the bonds, in
216-16   accordance with Subtitles A and C, Title 9, Government Code
216-17   [Chapter 1, Title 22, Revised Statutes], to purchase or acquire in
216-18   another manner the land or housing and to improve, enlarge, extend,
216-19   or repair the land or housing.
216-20         SECTION 8.293.  Sections 271.005(a) and (c), Local Government
216-21   Code, are amended to read as follows:
216-22         (a)  The governing body of a governmental agency may execute,
216-23   perform, and make payments under a contract with any person for the
216-24   use or the purchase or other acquisition of any personal property,
216-25   or the financing thereof.  The contract is an obligation of the
216-26   governmental agency.  The contract may:
216-27               (1)  be on the terms considered appropriate by the
 217-1   governing body;
 217-2               (2)  be in the form of a lease, a lease with an option
 217-3   or options to purchase, an installment purchase, or any other form
 217-4   considered appropriate by the governing body including that of an
 217-5   instrument which would be required to be approved by the attorney
 217-6   general under [pursuant to] Chapter 1202, Government Code, [53,
 217-7   Acts of the 70th Legislature, 2nd Called Session, 1987 (Article
 217-8   717k-8, Vernon's Texas Civil Statutes)] provided that contracts in
 217-9   such form must be approved by the attorney general in accordance
217-10   with the terms of that chapter [article];
217-11               (3)  be for a term approved by the governing body and
217-12   contain an option or options to renew or extend the term; and
217-13               (4)  be made payable from a pledge of all or any part
217-14   of any revenues, funds, or taxes available to the governmental
217-15   agency for its public purposes.
217-16         (c)  A contract may provide for the payment of interest on
217-17   the unpaid amounts of the contract at a rate or rates and may
217-18   contain prepayment provisions, termination penalties, and other
217-19   provisions determined within the discretion of the governing body.
217-20   The net effective interest rate on the contract may not exceed the
217-21   net effective interest rate at which public securities may be
217-22   issued in accordance with Chapter 1204, Government Code [3, Acts of
217-23   the 61st Legislature, Regular Session, 1969 (Article 717k-2,
217-24   Vernon's Texas Civil Statutes)].  Interest on the unpaid amounts of
217-25   a contract shall be computed as simple interest.
217-26         SECTION 8.294.  Section 271.047(c), Local Government Code, is
217-27   amended to read as follows:
 218-1         (c)  A certificate may not mature over a period greater than
 218-2   40 years from the date of the certificate and may not bear interest
 218-3   at a rate greater than that allowed by Chapter 1204, Government
 218-4   Code [3, Acts of the 61st Legislature, Regular Session, 1969
 218-5   (Article 717k-2, Vernon's Texas Civil Statutes)].
 218-6         SECTION 8.295.  Section 271.049(c), Local Government Code, is
 218-7   amended to read as follows:
 218-8         (c)  If before the date tentatively set for the authorization
 218-9   of the issuance of the certificates or if before the authorization,
218-10   the municipal secretary or clerk if the issuer is a municipality,
218-11   or the county clerk if the issuer is a county, receives a petition
218-12   signed by at least five percent of the qualified voters of the
218-13   issuer protesting the issuance of the certificates, the issuer may
218-14   not authorize the issuance of the certificates unless the issuance
218-15   is approved at an election ordered, held, and conducted in the
218-16   manner provided for bond elections under Chapter 1251, Government
218-17   Code [1, Title 22, Revised Statutes].
218-18         SECTION 8.296.  Section 271.050(c), Local Government Code, is
218-19   amended to read as follows:
218-20         (c)  A certified copy of the proceedings relating to the
218-21   authorization of the certificates must be submitted to the attorney
218-22   general and must be approved by the attorney general as having been
218-23   authorized in accordance with this subchapter.  The attorney
218-24   general shall examine the proceedings relating to the authorization
218-25   of the certificates.  Subtitles A and C, Title 9, Government Code,
218-26   and Chapter 618, Government Code, [Articles 709 through 716,
218-27   Revised Statutes, and the Texas Uniform Facsimile Signature of
 219-1   Public Officials Act (Article 717j-1, Vernon's Texas Civil
 219-2   Statutes)] govern the execution, approval, registration, and
 219-3   validity of the certificates.  After registration of the
 219-4   certificates by the comptroller [of public accounts], the
 219-5   certificates are incontestable for any cause.
 219-6         SECTION 8.297.  Section 271.0525(b), Local Government Code,
 219-7   is amended to read as follows:
 219-8         (b)  If, before the date tentatively set for the
 219-9   authorization of refinancing certificates, the county clerk
219-10   receives a petition that meets the requirements of Subsection (c)
219-11   [of this section] protesting the issuance of the refinancing
219-12   certificates, the county may not authorize the issuance of the
219-13   refinancing certificates unless the issuance is approved at an
219-14   election ordered, held, and conducted in the manner provided for
219-15   bond elections under Chapter 1251, Government Code [1, Title 22,
219-16   Revised Statutes].
219-17         SECTION 8.298.  Sections 271.053 and 271.056, Local
219-18   Government Code, are amended to read as follows:
219-19         Sec. 271.053.  CERTIFICATES AS DEBT AND SECURITY.
219-20   Certificates are debts of the issuer within the meaning of Article
219-21   XI, Sections 5 and 7, of the Texas Constitution.  When delivered,
219-22   certificates are "security" within the meaning of Chapter 8,
219-23   Business & Commerce Code, and are general obligations of the issuer
219-24   within the meaning of Subchapters A and D, Chapter 1207, Government
219-25   Code [Chapter 784, Acts of the 61st Legislature, Regular Session,
219-26   1969 (Article 717k-3, Vernon's Texas Civil Statutes)].
219-27         Sec. 271.056.  EXEMPTIONS FROM ADVERTISEMENT REQUIREMENT.
 220-1   The provisions of this subchapter relating to the advertisement for
 220-2   competitive bids do not apply to:
 220-3               (1)  a case of public calamity if it is necessary to
 220-4   act promptly to relieve the necessity of the residents or to
 220-5   preserve the property of the issuer;
 220-6               (2)  a case in which it is necessary to preserve or
 220-7   protect the public health of the residents of the issuer;
 220-8               (3)  a case of unforeseen damage to public machinery,
 220-9   equipment, or other property;
220-10               (4)  a contract for personal or professional services;
220-11               (5)  work done by employees of the issuer and paid for
220-12   as the work progresses;
220-13               (6)  the purchase of any land, building, existing
220-14   utility system, or right-of-way for authorized needs and purposes;
220-15               (7)  expenditures for or relating to improvements in
220-16   municipal water systems, sewer systems, streets, or drainage, if at
220-17   least one-third of the cost of the improvements is to be paid by
220-18   special assessments levied against properties to be benefitted by
220-19   the improvements;
220-20               (8)  a case in which the entire contractual obligation
220-21   is to be paid from bond funds or current funds or in which an
220-22   advertisement for bids has previously been published in accordance
220-23   with this subchapter but the current funds or bond funds are not
220-24   adequate to permit the awarding of the contract and certificates
220-25   are to be awarded to provide for the deficiency;
220-26               (9)  the sale of a public security, as that term is
220-27   defined by Section 1204.001, Government Code [Chapter 3, Acts of
 221-1   the 61st Legislature, Regular Session, 1969 (Article 717k-2,
 221-2   Vernon's Texas Civil Statutes)];
 221-3               (10)  a municipal procurement of a kind that, under
 221-4   Chapter 252, is not required to be made in accordance with
 221-5   competitive bidding procedures like those prescribed by this
 221-6   subchapter; or
 221-7               (11)  a county contract that, under the County
 221-8   Purchasing Act (Subchapter C, Chapter 262), is not required to be
 221-9   made in accordance with competitive bidding procedures like those
221-10   prescribed by this subchapter.
221-11         SECTION 8.299.  Section 271.091(6), Local Government Code, is
221-12   amended to read as follows:
221-13               (6)  "Board" means the Bond Review Board [bond review
221-14   board created by Chapter 1078, Acts of the 70th Legislature,
221-15   Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil
221-16   Statutes)].
221-17         SECTION 8.300.  Section 272.004(a), Local Government Code, is
221-18   amended to read as follows:
221-19         (a)  In this section, "political subdivision" has the same
221-20   meaning as the term "issuer" under Section 1371.001, Government
221-21   Code [1(1), Chapter 656, Acts of the 68th Legislature, Regular
221-22   Session, 1983 (Article 717q, Vernon's Texas Civil Statutes)].
221-23         SECTION 8.301.  Section 281.071(c), Local Government Code, is
221-24   amended to read as follows:
221-25         (c)  The bonds shall bear interest at a rate that does not
221-26   exceed the maximum interest rate authorized by Chapter 1204,
221-27   Government Code [3, Acts of the 61st Legislature, Regular Session,
 222-1   1969 (Article 717k-2, Vernon's Texas Civil Statutes)].
 222-2         SECTION 8.302.  Section 281.077(a), Local Government Code, is
 222-3   amended to read as follows:
 222-4         (a)  By resolutions adopted by the board, an authority may
 222-5   issue bonds to refund all or any outstanding bonds, including
 222-6   matured but unpaid interest coupons.  Refunding bonds may mature
 222-7   serially or in any other manner.  The bonds may not mature later
 222-8   than 40 years after the date of the bonds.  The bonds shall bear
 222-9   interest at a rate that does not exceed the maximum interest rate
222-10   authorized by Chapter 1204, Government Code [3, Acts of the 61st
222-11   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
222-12   Civil Statutes)].
222-13         SECTION 8.303.  Section 281.092(b), Local Government Code, is
222-14   amended to read as follows:
222-15         (b)  To pledge property taxes as part or all of the required
222-16   payments under the contract, before it enters into a contract with
222-17   an authority a municipality must obtain voter approval at an
222-18   election conducted substantially according to the applicable
222-19   procedures in Chapter 1251, Government Code [1, Title 22, Revised
222-20   Statutes].  Each qualified voter in the municipality is entitled to
222-21   vote in the election.  If the voters authorize the payments from
222-22   property taxes, the contract may provide that the payments are
222-23   payable from and are obligations against only the taxing power of
222-24   the municipality or may provide that the payments are payable from
222-25   taxes and other funds and revenues specified in the contract.
222-26   After the election and concurrently with, or prior to, making the
222-27   contract, the municipality shall provide for the annual assessment
 223-1   and collection of an amount that is sufficient to make the contract
 223-2   payments and to create a sinking fund of at least two percent.
 223-3         SECTION 8.304.  Section 292.002(a), Local Government Code, is
 223-4   amended to read as follows:
 223-5         (a)  The commissioners court of a county may provide an
 223-6   office building or a jail facility at a location in the county
 223-7   outside the county seat in the same manner that is applicable to
 223-8   such a building or facility at the county seat.  The commissioners
 223-9   court may provide for the building or facility through the issuance
223-10   of bonds as provided by Subtitles A, C, and D, Title 9, Government
223-11   Code [Chapters 1 and 2, Title 22, Revised Statutes], or through the
223-12   issuance of other evidences of indebtedness in the same manner as
223-13   bonds or evidences of indebtedness applicable to a courthouse or
223-14   jail at the county seat.  The commissioners court may provide
223-15   office space in the building or facility for any county or precinct
223-16   office except a court required by law to sit at the county seat.
223-17   However, a county officer who is provided space in the building or
223-18   facility shall maintain an office at the county seat and shall keep
223-19   the original records of office at that office.
223-20         SECTION 8.305.  Section 292.003(a), Local Government Code, is
223-21   amended to read as follows:
223-22         (a)  The commissioners court of a county may provide,
223-23   maintain, and repair a branch office building or a branch jail in a
223-24   municipality with a population of 15,000 or more, other than the
223-25   county seat, in the same manner as the court may take those actions
223-26   at the county seat.  The commissioners court may finance those
223-27   actions through the issuance of bonds as provided by Subtitles A,
 224-1   C, and D, Title 9, Government Code [Chapters 1 and 2, Title 22,
 224-2   Revised Statutes], or through the issuance of evidences of
 224-3   indebtedness in the same manner as evidences of indebtedness
 224-4   applicable to a courthouse or jail at the county seat.  Taxes may
 224-5   be levied for the bonds or evidences of indebtedness in the same
 224-6   manner and subject to the same limitations applicable to a
 224-7   courthouse or jail at the county seat.  The cost of the facility
 224-8   may not exceed two percent of the taxable value of the property in
 224-9   the county in the previous year.  The commissioners court has
224-10   custody of and shall care for the facility.
224-11         SECTION 8.306.  Sections 292.022(d) and (e), Local Government
224-12   Code, are amended to read as follows:
224-13         (d)  Bonds and certificates of indebtedness issued under this
224-14   section must:
224-15               (1)  be authorized by order of the commissioners court;
224-16               (2)  be signed by the county judge, attested by the
224-17   county clerk, and registered by the county treasurer;
224-18               (3)  mature in 40 years or less;
224-19               (4)  bear interest at a rate not to exceed the interest
224-20   rate prescribed by Chapter 1204, Government Code [3, Acts of the
224-21   61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
224-22   Texas Civil Statutes)]; and
224-23               (5)  have attached coupons evidencing the interest.
224-24         (e)  Bonds under this section must be issued in compliance
224-25   with Subtitles A and C, Title 9, Government Code [Chapter 1, Title
224-26   22, Revised Statutes].
224-27         SECTION 8.307.  Section 292.025(b), Local Government Code, is
 225-1   amended to read as follows:
 225-2         (b)  The commissioners court of a county may construct,
 225-3   operate, and maintain a branch office building or a branch jail in
 225-4   a municipality other than the county seat in the same manner as the
 225-5   court may take those actions at the county seat. The commissioners
 225-6   court may finance those actions through the issuance of bonds as
 225-7   provided by Subtitles A, C, and D, Title 9, Government Code
 225-8   [Chapters 1 and 2, Title 22, Revised Statutes], or through the
 225-9   issuance of evidences of indebtedness in the same manner as
225-10   evidences of indebtedness applicable to a courthouse or jail at the
225-11   county seat.  Taxes may be levied for the bonds or evidences of
225-12   indebtedness in the same manner and subject to the same limitations
225-13   applicable to a courthouse or jail at the county seat.  The
225-14   commissioners court has custody of and shall care for the building.
225-15         SECTION 8.308.  Sections 293.051(b) and (c), Local Government
225-16   Code, are amended to read as follows:
225-17         (b)  The bonds must:
225-18               (1)  be authorized by a board resolution;
225-19               (2)  be authorized by an election that is:
225-20                     (A)  called by a resolution of the board;
225-21                     (B)  held throughout the authority; and
225-22                     (C)  called, held, and publicized in the manner
225-23   provided by Chapter 1251, Government Code [1, Title 22, Revised
225-24   Statutes];
225-25               (3)  be signed by the board president or vice-president
225-26   and countersigned by the board secretary, either by actual or
225-27   printed facsimile signature;
 226-1               (4)  include the authority seal;
 226-2               (5)  mature serially or otherwise in 40 years or less;
 226-3               (6)  be payable from and secured by a pledge of net
 226-4   revenues from ownership or operation of authority property; and
 226-5               (7)  be sold at a price and under terms that the board
 226-6   considers the most advantageous and the most reasonably obtainable.
 226-7         (c)  The bonds may:
 226-8               (1)  be secured, in addition to the security prescribed
 226-9   in Subsection (b)(6), by a mortgage or deed of trust on authority
226-10   real or personal property;
226-11               (2)  bear interest at a rate not to exceed the interest
226-12   rate prescribed by Chapter 1204, Government Code [3, Acts of the
226-13   61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
226-14   Texas Civil Statutes)];
226-15               (3)  be made callable before maturity at the times and
226-16   prices prescribed in the bond resolution; and
226-17               (4)  be made registrable as to principal, interest, or
226-18   both.
226-19         SECTION 8.309.  Section 293.055(b), Local Government Code, is
226-20   amended to read as follows:
226-21         (b)  The comptroller [of public accounts] may exchange the
226-22   refunding bonds for the outstanding bonds or the authority may sell
226-23   the refunding bonds and apply the proceeds according to Subchapter
226-24   B or C, Chapter 1207, Government Code [Chapter 503, Acts of the
226-25   54th Legislature, 1955 (Article 717k, Vernon's Texas Civil
226-26   Statutes)].
226-27         SECTION 8.310.  Section 305.014(c), Local Government Code, is
 227-1   amended to read as follows:
 227-2         (c)  The municipality and county may agree that the
 227-3   municipality shall issue a series of coliseum or stadium
 227-4   acquisition revenue bonds (or include such purpose as a part of a
 227-5   larger series of coliseum or stadium revenue bonds), which revenue
 227-6   bonds (or part of a larger series allocable to the purchase) shall
 227-7   be delivered to the county in payment of the purchase price for the
 227-8   stadium or coliseum.  The bonds must be at least payable at the
 227-9   times and in the same amounts as and bear not lower than the same
227-10   rates of interest borne by the county's outstanding coliseum or
227-11   stadium bonds so as to provide funds from the revenue bonds to the
227-12   county with which to pay the principal and interest when due on its
227-13   outstanding bonds.  The revenue bonds of the municipality may be on
227-14   other terms as the municipality and county agree and may include
227-15   any mortgage security authorized by Subchapter A, Chapter 1504,
227-16   Government Code [Chapter 63, Acts of the 59th Legislature, Regular
227-17   Session, 1965 (Article 1269j-4.1, Vernon's Texas Civil Statutes)].
227-18   On delivery of the bonds to the county, the county shall hold the
227-19   bonds for the account of the interest and sinking fund created in
227-20   connection with its outstanding coliseum or stadium bonds and shall
227-21   use the payments when received to pay the principal and interest on
227-22   its bonds when due.
227-23         SECTION 8.311.  Section 305.016, Local Government Code, is
227-24   amended to read as follows:
227-25         Sec. 305.016.  MUNICIPAL POWERS.  After the delivery of the
227-26   deed, the municipality is the complete and total owner of the
227-27   coliseum or stadium and the related land and facilities conveyed
 228-1   and may:
 228-2               (1)  exercise all the powers with respect to the
 228-3   property authorized and implied by Subchapter A, Chapter 1504,
 228-4   Government Code [Chapter 63, Acts of the 59th Legislature, Regular
 228-5   Session, 1965 (Article 1269j-4.1, Vernon's Texas Civil Statutes)],
 228-6   and any other laws applicable to the municipality, for the purpose
 228-7   of operating, maintaining, improving, or expanding the coliseum or
 228-8   stadium;
 228-9               (2)  in connection with the financing of the purchase,
228-10   include any indoor or outdoor recreational facilities, properties,
228-11   and entertainment attractions as may be considered by the
228-12   municipality to be appropriate in connection with the coliseum or
228-13   stadium; and
228-14               (3)  lease or make operating agreements with respect to
228-15   all or any part of the coliseum or stadium and related land and
228-16   facilities for the periods and on the terms as the municipality may
228-17   determine.
228-18         SECTION 8.312.  Section 306.051(h), Local Government Code, is
228-19   amended to read as follows:
228-20         (h)  Except as provided by this chapter, Chapter 1502,
228-21   Government Code, applies [Articles 1111-1118, Vernon's Texas Civil
228-22   Statutes, with all additions and amendments as found in Chapter 10,
228-23   Title 28, Vernon's Texas Civil Statutes, apply] to the bonds.
228-24         SECTION 8.313.  Section 307.041(b), Local Government Code, is
228-25   amended to read as follows:
228-26         (b)  The bonds shall be issued in accordance with Subtitles A
228-27   and C, Title 9, Government Code [Chapter 1, Title 22, Revised
 229-1   Statutes].  If bonds for the purposes described by this section
 229-2   have been authorized at a previous election in accordance with that
 229-3   chapter, the bonds may be issued without an additional election.
 229-4         SECTION 8.314.  Sections 307.043(c) and (k), Local Government
 229-5   Code, are amended to read as follows:
 229-6         (c)  The bonds shall bear interest at a rate not to exceed
 229-7   the maximum net effective interest rate provided by Chapter 1204,
 229-8   Government Code [3, Acts of the 61st Legislature, Regular Session,
 229-9   1969 (Article 717k-2, Vernon's Texas Civil Statutes)].
229-10         (k)  The nature of the pledge of income and encumbrance of
229-11   properties to secure the obligations and the control, management,
229-12   and operation of the properties while any of the obligations remain
229-13   unpaid is subject to and governed by Chapter 1502, Government Code
229-14   [Articles 1111-1118, Vernon's Texas Civil Statutes], in the same
229-15   manner as parks described in Section 1502.051 [Article 1111].  The
229-16   issuance of the bonds does not require an election.
229-17         SECTION 8.315.  Section 319.004(a), Local Government Code, is
229-18   amended to read as follows:
229-19         (a)  The commissioners court of a county may contract for the
229-20   complete management of, and for the conducting, maintenance, use,
229-21   and operation of, buildings, improvements, and exhibits authorized
229-22   by this chapter or by Subchapter B, Chapter 1473, Government Code
229-23   [Chapter 411, Acts of the 51st Legislature, Regular Session, 1949
229-24   (Article 2372d-2, Vernon's Texas Civil Statutes)].
229-25         SECTION 8.316.  Section 319.005, Local Government Code, is
229-26   amended to read as follows:
229-27         Sec. 319.005.  REVENUE.  The commissioners court of a county
 230-1   may use the net revenue derived from the use of a building,
 230-2   improvement, or exhibit authorized by this chapter or by Subchapter
 230-3   B, Chapter 1473, Government Code [Chapter 411, Acts of the 51st
 230-4   Legislature, Regular Session, 1949 (Article 2372d-2, Vernon's Texas
 230-5   Civil Statutes)], for the management, operation, maintenance,
 230-6   development, improvement, or promotion of activities authorized
 230-7   under this chapter or under Subchapter B, Chapter 1473, Government
 230-8   Code [Chapter 411, Acts of the 51st Legislature, Regular Session,
 230-9   1949 (Article 2372d-2, Vernon's Texas Civil Statutes)], or for any
230-10   other public purpose.
230-11         SECTION 8.317.  Section 320.071(f), Local Government Code, is
230-12   amended to read as follows:
230-13         (f)  Revenue bonds must mature serially or otherwise in not
230-14   more than 40 years from their date or dates and may be sold by the
230-15   commissioners court at a price and under terms determined by the
230-16   court to be the most advantageous reasonably obtainable.  The net
230-17   effective interest rate may not exceed the maximum rate provided by
230-18   Chapter 1204, Government Code [3, Acts of the 61st Legislature,
230-19   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
230-20   Statutes)].
230-21         SECTION 8.318.  Section 320.072(b), Local Government Code, is
230-22   amended to read as follows:
230-23         (b)  The election shall be ordered and held, and notice of
230-24   the election shall be given, as provided by Chapter 1251,
230-25   Government Code [1, Title 22, Revised Statutes], except that the
230-26   ballot shall be printed to provide for voting for or against the
230-27   proposition:  "The issuance of $___________ in park revenue bonds
 231-1   payable solely from revenues."
 231-2         SECTION 8.319.  Section 321.071(f), Local Government Code, is
 231-3   amended to read as follows:
 231-4         (f)  The bonds must mature serially or otherwise in not more
 231-5   than 40 years and may be sold at a price and under terms determined
 231-6   by the county to be the most advantageous reasonably obtainable.
 231-7   The net effective interest rate may not exceed the maximum rate
 231-8   provided by Chapter 1204, Government Code [3, Acts of the 61st
 231-9   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
231-10   Civil Statutes)].
231-11         SECTION 8.320.  Section 322.071(e), Local Government Code, is
231-12   amended to read as follows:
231-13         (e)  The bonds must mature serially or otherwise in not more
231-14   than 40 years and may be sold at a price and under terms determined
231-15   by the board to be the most advantageous reasonably obtainable.
231-16   The net effective interest rate may not exceed the maximum rate
231-17   provided by Chapter 1204, Government Code [3, Acts of the 61st
231-18   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
231-19   Civil Statutes)].
231-20         SECTION 8.321.  Section 324.094, Local Government Code, is
231-21   amended to read as follows:
231-22         Sec. 324.094.  REFUNDING BONDS.  The district may issue
231-23   refunding bonds under Chapter 1207, Government Code [503, Acts of
231-24   the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil
231-25   Statutes), or Chapter 784, Acts of the 61st Legislature, Regular
231-26   Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes)].
231-27         SECTION 8.322.  Section 324.098(a), Local Government Code, is
 232-1   amended to read as follows:
 232-2         (a)  If funds are not available to pay the principal of or
 232-3   interest on bonds issued by the district or to pay other
 232-4   obligations of the district, the board may declare an emergency and
 232-5   may issue negotiable bond anticipation notes to borrow the money
 232-6   needed.  The bond anticipation notes may bear interest at a rate
 232-7   that does not exceed the maximum rate provided by [provisions of]
 232-8   Chapter 1204, Government Code [3, Acts of the 61st Legislature,
 232-9   Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
232-10   Statutes)], and must mature within one year after their date of
232-11   issuance.
232-12         SECTION 8.323.  Section 325.090, Local Government Code, is
232-13   amended to read as follows:
232-14         Sec. 325.090.  APPLICATION OF OTHER LAWS.  Bonds of the
232-15   district are considered public securities [bonds] under Chapter
232-16   1201, Government Code [the Bond Procedures Act of 1981 (Article
232-17   717K-6, Vernon's Texas Civil Statutes)].
232-18         SECTION 8.324.  Section 331.004(b), Local Government Code, is
232-19   amended to read as follows:
232-20         (b)  The issuance of the bonds and the levy of the taxes
232-21   shall be in accordance with Subtitles A and C, Title 9, Government
232-22   Code [Chapter 1, Title 22, Revised Statutes].
232-23         SECTION 8.325.  Section 332.021(b), Local Government Code, is
232-24   amended to read as follows:
232-25         (b)  The political subdivisions acting jointly may issue
232-26   bonds and otherwise act under either Subchapter A, Chapter 1504,
232-27   Government Code, or Subchapter C, Chapter 1508, Government Code
 233-1   [Chapter 63, Acts of the 59th Legislature, Regular Session, 1965
 233-2   (Article 1269j-4.1, Vernon's Texas Civil Statutes), or Chapter 470,
 233-3   Acts of the 44th Legislature, 2nd Called Session, 1935 (Article
 233-4   1180b, Vernon's Texas Civil Statutes)], for the purposes authorized
 233-5   by this section.  The political subdivisions may issue the bonds
 233-6   and take other joint actions under their agreement by joint
 233-7   concurrent ordinances or resolutions.
 233-8         SECTION 8.326.  Section 334.043(b), Local Government Code, is
 233-9   amended to read as follows:
233-10         (b)  The bonds or other obligations and the proceedings
233-11   authorizing the bonds or other obligations shall be submitted to
233-12   the attorney general for review and approval as required by Chapter
233-13   1202, Government Code [Article 3, Chapter 53, Acts of the 70th
233-14   Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
233-15   Texas Civil Statutes)].
233-16         SECTION 8.327.  Sections 335.073(b) and (f), Local Government
233-17   Code, are amended to read as follows:
233-18         (b)  The bonds or other obligations and the proceedings
233-19   authorizing the bonds or other obligations shall be submitted to
233-20   the attorney general for review and approval as required by Chapter
233-21   1202, Government Code [Article 3, Chapter 53, Acts of the 70th
233-22   Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
233-23   Texas Civil Statutes)].
233-24         (f)  A district may issue [short term] obligations and enter
233-25   into credit agreements under Chapter 1371, Government Code [656,
233-26   Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
233-27   Vernon's Texas Civil Statutes)]. For purposes of that chapter
 234-1   [Act], a district is a "public utility" and an approved venue
 234-2   project is an "eligible project."
 234-3         SECTION 8.328.  Section 361.052(b), Local Government Code, is
 234-4   amended to read as follows:
 234-5         (b)  Money to be paid pursuant to a lease obligation and
 234-6   revenues derived by an entity from the operation of an eligible
 234-7   project constitute revenues to an entity that may be pledged to
 234-8   secure or pay any obligations, and the entity's obligations may be
 234-9   made payable from and secured by, in whole or in part, those
234-10   revenues.  An entity may apply the provisions of Chapter 1371,
234-11   Government Code, [(i) Sections 2 through 11 of Chapter 656, Acts of
234-12   the 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
234-13   Texas Civil Statutes), (ii)] Section 271.052 or [, (iii) Section]
234-14   361.053, or [(iv)] any combination of those laws [the foregoing] to
234-15   the issuance of obligations and the execution of credit agreements
234-16   to satisfy the purposes of this subchapter, except that an entity's
234-17   obligations may be refunded by the issuance of public securities
234-18   [bonds], as defined by Section 1201.002, Government Code [the Bond
234-19   Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
234-20   Statutes)], that are payable from a pledge of ad valorem tax
234-21   receipts only if the issuance of the public securities [bonds] is
234-22   approved by a majority of votes cast at an election conducted in
234-23   accordance with the bond election procedures established by Chapter
234-24   1251, Government Code [1, Title 22, Revised Statutes].
234-25         SECTION 8.329.  Sections 361.054(a), (b), (f), and (g), Local
234-26   Government Code, are amended to read as follows:
234-27         (a)  Obligations issued or lease obligations incurred
 235-1   hereunder shall be within the interest rate limitations of Chapter
 235-2   1204, Government Code [3, Acts of the 61st Legislature, Regular
 235-3   Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes)].
 235-4         (b)  From the proceeds from the sale of obligations an entity
 235-5   may set aside amounts for payments into the interest and sinking
 235-6   fund and reserve funds, and for interest and operating expenses
 235-7   during construction and development, as may be specified in the
 235-8   authorizing proceedings.  Proceeds of obligations and amounts on
 235-9   deposit in interest and sinking funds and reserve funds may be
235-10   invested pending their use for the purpose for which issued, in the
235-11   manner described in Chapter 1371, Government Code [656, Acts of the
235-12   68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
235-13   Texas Civil Statutes)].
235-14         (f)  Refunding bonds may be issued to refund obligations in
235-15   the manner now or hereafter provided by general law, including,
235-16   without limitation, Chapter 1207, Government Code [503, Acts of the
235-17   54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
235-18   Texas Civil Statutes), and Chapter 784, Acts of the 61st
235-19   Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas
235-20   Civil Statutes)].
235-21         (g)  The provisions of Chapter 1201, Government Code, [the
235-22   Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
235-23   Statutes)] apply to obligations issued or lease obligations
235-24   incurred hereunder, and such obligations shall constitute a
235-25   "security" within the meaning of Chapter 8, Business & Commerce
235-26   Code.
235-27         SECTION 8.330.  Section 372.024, Local Government Code, is
 236-1   amended to read as follows:
 236-2         Sec. 372.024.  GENERAL OBLIGATION AND REVENUE BONDS.  General
 236-3   obligation bonds issued to pay costs under Section 372.023(d) must
 236-4   be issued under the provisions of Subtitles A and C, Title 9,
 236-5   Government Code [Chapter 1, Title 22, Revised Statutes].  Revenue
 236-6   bonds issued to pay costs under that subsection may be issued from
 236-7   time to time in one or more series and are to be payable from and
 236-8   secured by liens on all or part of the revenue derived from
 236-9   improvements authorized under this subchapter, including revenue
236-10   derived from installment payments of special assessments.
236-11         SECTION 8.331.  Section 375.121(a), Local Government Code, is
236-12   amended to read as follows:
236-13         (a)  Assessments bear interest at a rate specified by the
236-14   board that may not exceed the interest rate permitted by Chapter
236-15   1204, Government Code [3, Acts of the 61st Legislature, Regular
236-16   Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes)].
236-17         SECTION 8.332.  Section 375.202(d), Local Government Code, is
236-18   amended to read as follows:
236-19         (d)  Bonds may bear interest and may be issued in accordance
236-20   with Chapters 1201, 1204, and 1371, Government Code, and
236-21   Subchapters A-C, Chapter 1207, Government Code [Chapter 503, Acts
236-22   of the 54th Legislature, Regular Session, 1955 (Article 717k,
236-23   Vernon's Texas Civil Statutes), Chapter 3, Acts of the 61st
236-24   Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
236-25   Civil Statutes), the Bond Procedures Act of 1981 (Article 717k-6,
236-26   Vernon's Texas Civil Statutes), and Chapter 656, Acts of the 68th
236-27   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
 237-1   Civil Statutes)].
 237-2         SECTION 8.333.  Section 376.019(e), Local Government Code, is
 237-3   amended to read as follows:
 237-4         (e)  Before the district issues bonds, the district shall
 237-5   submit the bonds and the record of proceedings of the district
 237-6   relating to authorization of the bonds to the attorney general for
 237-7   approval as provided by Chapter 1202, Government Code [53, Acts of
 237-8   the 70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
 237-9   Vernon's Texas Civil Statutes)].
237-10         SECTION 8.334.  Section 376.057(e), Local Government Code, is
237-11   amended to read as follows:
237-12         (e)  Before the district issues bonds, the district shall
237-13   submit the bonds and the record of proceedings of the district
237-14   relating to authorization of the bonds to the attorney general for
237-15   approval as provided by Chapter 1202, Government Code [53, Acts of
237-16   the 70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
237-17   Vernon's Texas Civil Statutes)].
237-18         SECTION 8.335.  Section 376.128(e), Local Government Code, is
237-19   amended to read as follows:
237-20         (e)  Before the district issues bonds, the district shall
237-21   submit the bonds and the record of proceedings of the district
237-22   relating to authorization of the bonds to the attorney general for
237-23   approval as provided by Chapter 1202, Government Code [53, Acts of
237-24   the 70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
237-25   Vernon's Texas Civil Statutes)].
237-26         SECTION 8.336.  Section 376.228(e), Local Government Code, is
237-27   amended to read as follows:
 238-1         (e)  Before the district issues bonds, the district shall
 238-2   submit the bonds and the record of proceedings of the district
 238-3   relating to authorization of the bonds to the attorney general for
 238-4   approval as provided by Chapter 1202, Government Code [53, Acts of
 238-5   the 70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
 238-6   Vernon's Texas Civil Statutes)].
 238-7         SECTION 8.337.  Section 376.278(e), Local Government Code, is
 238-8   amended to read as follows:
 238-9         (e)  Before the district issues bonds, the district shall
238-10   submit the bonds and the record of proceedings of the district
238-11   relating to authorization of the bonds to the attorney general for
238-12   approval as provided by Chapter 1202, Government Code [53, Acts of
238-13   the 70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
238-14   Vernon's Texas Civil Statutes)].
238-15         SECTION 8.338.  Section 376.318(e), Local Government Code, as
238-16   added by Section 1, Chapter 1493, Acts of the 76th Legislature,
238-17   Regular Session, 1999, is amended to read as follows:
238-18         (e)  Before the district issues bonds, the district shall
238-19   submit the bonds and the record of proceedings of the district
238-20   relating to authorization of the bonds to the attorney general for
238-21   approval as provided by Chapter 1202, Government Code [53, Acts of
238-22   the 70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
238-23   Vernon's Texas Civil Statutes)].
238-24         SECTION 8.339.  Section 377.073(b), Local Government Code, is
238-25   amended to read as follows:
238-26         (b)  The bonds or other obligations and the proceedings
238-27   authorizing the bonds or other obligations shall be submitted to
 239-1   the attorney general for review and approval as required by Chapter
 239-2   1202, Government Code [Article 3, Chapter 53, Acts of the 70th
 239-3   Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
 239-4   Texas Civil Statutes)].
 239-5         SECTION 8.340.  Section 384.102(a), Local Government Code, is
 239-6   amended to read as follows:
 239-7         (a)  The district may issue any type of bond for any district
 239-8   purpose.  A bond may be issued under Chapter 1371, Government Code
 239-9   [656, Acts of the 68th Legislature, Regular Session, 1983 (Article
239-10   717q, Vernon's Texas Civil Statutes)].
239-11         SECTION 8.341.  Sections 392.066(a) and (d), Local Government
239-12   Code, are amended to read as follows:
239-13         (a)  An authority that creates a public facility corporation
239-14   under Chapter 303 [the Public Facility Corporation Act (Article
239-15   717s, Revised Statutes)] may, with or without consideration, for
239-16   the purpose of providing affordable housing or housing assistance,
239-17   enter into an agreement with, make a contribution to, make an
239-18   investment in, enter into a lease or exchange with, or make a
239-19   mortgage or loan to the corporation to:
239-20               (1)  acquire, construct, rehabilitate, renovate,
239-21   repair, equip, furnish, or provide assistance to a residential
239-22   development described by Section 394.004 or a housing project; or
239-23               (2)  accomplish another public purpose authorized by
239-24   law.
239-25         (d)  The powers granted by this section do not affect the
239-26   powers of an authority granted under Chapter 303 [the Public
239-27   Facility Corporation Act (Article 717s, Revised Statutes)].
 240-1         SECTION 8.342.  Section 392.083(a), Local Government Code, is
 240-2   amended to read as follows:
 240-3         (a)  Bonds issued by an authority may be sold either at a
 240-4   public sale after notice is published in accordance with this
 240-5   section or at a private sale.  Bonds may be sold at the price or
 240-6   prices determined by the authority but may not be sold at a price
 240-7   that would cause the interest on the bonds to exceed the maximum
 240-8   net effective interest rate established by Chapter 1204, Government
 240-9   Code [3, Acts of the 61st Legislature, Regular Session, 1969
240-10   (Article 717k-2, Vernon's Texas Civil Statutes)].
240-11         SECTION 8.343.  Section 393.010(e), Local Government Code, is
240-12   amended to read as follows:
240-13         (e)  The laws relating to elections for the issuance of
240-14   municipal or county bonds as prescribed by Chapter 1251, Government
240-15   Code [Chapters 1 and 2, Title 22, Revised Statutes], apply to an
240-16   election covered by this section unless those laws are inconsistent
240-17   with this section or are superseded by the Election Code.
240-18         SECTION 8.344.  Section 394.012(h), Local Government Code, is
240-19   amended to read as follows:
240-20         (h)  For the purposes of determining the applicable
240-21   population for Section 1372.026, Government Code [3(b), Chapter
240-22   1092, Acts of the 70th Legislature, Regular Session, 1987 (Article
240-23   5190.9a, Vernon's Texas Civil Statutes)], the joint housing finance
240-24   corporation may only consider areas in its own state planning
240-25   region.
240-26         SECTION 8.345.  Section 394.051(a), Local Government Code, is
240-27   amended to read as follows:
 241-1         (a)  A housing finance corporation may issue its bonds by
 241-2   resolution of the board of directors for the purposes prescribed by
 241-3   this chapter.  The resolution takes effect immediately on adoption.
 241-4   The bonds bear interest at a rate authorized by Chapter 1204,
 241-5   Government Code [3, Acts of the 61st Legislature, Regular Session,
 241-6   1969 (Article 717k-2, Vernon's Texas Civil Statutes)], and are
 241-7   subject to the following terms provided by the resolution:
 241-8               (1)  the time at which the bonds are payable;
 241-9               (2)  the number of series in which the bonds are
241-10   issued;
241-11               (3)  the dates that the bonds bear;
241-12               (4)  the time of maturity of the bonds;
241-13               (5)  the medium of payment and the place of payment of
241-14   the bonds;
241-15               (6)  any registration privileges;
241-16               (7)  terms of redemption at certain premiums;
241-17               (8)  manner of execution of the bonds;
241-18               (9)  covenants and other terms of the bonds; and
241-19               (10)  the form of the bonds, either coupon or
241-20   registered.
241-21         SECTION 8.346.  Section 402.012(f), Local Government Code, is
241-22   amended to read as follows:
241-23         (f)  The governing body of a municipality providing water
241-24   treatment facilities under this section may:
241-25               (1)  issue negotiable municipal bonds or warrants for
241-26   that purpose and impose taxes to provide the interest and sinking
241-27   fund for those bonds or warrants in the manner provided by law for
 242-1   the issuance of tax supported bonds and warrants by the
 242-2   municipality; or
 242-3               (2)  issue revenue bonds supported by the revenues of
 242-4   one or more of the municipal utilities as provided by Chapter 1502,
 242-5   Government Code [Article 1111 et seq., Revised Statutes].
 242-6         SECTION 8.347.  Sections 402.018(c) and (f), Local Government
 242-7   Code, are amended to read as follows:
 242-8         (c)  Contractual payments required solely from municipal
 242-9   water system revenue are an operating expense of that system.  The
242-10   municipality shall set its rates and charges to users of the
242-11   municipal water system at a level sufficient to pay the maintenance
242-12   and operating expenses of that system as provided by Section
242-13   1502.057, Government Code [Article 1113, Revised Statutes], and to
242-14   provide for payment of principal of and interest on any revenue
242-15   bonds of the municipality payable from water revenue.
242-16         (f)  An election under this section shall be held to the
242-17   extent practicable in the same manner as an election for the
242-18   issuance of municipal bonds under Chapter 1251, Government Code [1,
242-19   Title 22, Revised Statutes].
242-20         SECTION 8.348.  Section 402.022(h), Local Government Code, is
242-21   amended to read as follows:
242-22         (h)  A municipality may pledge its taxing power in a contract
242-23   made under this section if a majority of the qualified voters of
242-24   the municipality who vote on the question at an election vote in
242-25   favor of the proposed contract and the levy of property taxes to
242-26   pay the municipality's obligations to the authority under the
242-27   contract.  The election shall be conducted in substantially the
 243-1   same manner as a municipal bond election held under Chapter 1251,
 243-2   Government Code [1, Title 22, Revised Statutes].  If the voters
 243-3   approve the contract and tax levy:
 243-4               (1)  the municipal governing body shall enact an
 243-5   ordinance prescribing the form and substance of the contract and
 243-6   directing the proper officers of the municipality to sign it; and
 243-7               (2)  once the contract has been executed, the
 243-8   municipality's obligations to the authority under the contract are
 243-9   an obligation of the municipality's taxing power, but may be paid,
243-10   as provided by the contract, from taxes and revenues from which
243-11   payments are required by Subsection (g).
243-12         SECTION 8.349.  Section 402.023(h), Local Government Code, is
243-13   amended to read as follows:
243-14         (h)  A municipality may pledge its taxing power in a contract
243-15   made under this section if a majority of the qualified voters of
243-16   the municipality who vote on the question at an election vote in
243-17   favor of the proposed contract and the levy of property taxes to
243-18   pay the municipality's obligations to the authority under the
243-19   contract.  The election shall be conducted in substantially the
243-20   same manner as a municipal bond election held under Chapter 1251,
243-21   Government Code [1, Title 22, Revised Statutes].  If the voters
243-22   approve the contract and tax levy:
243-23               (1)  the municipal governing body shall enact an
243-24   ordinance prescribing the form and substance of the contract and
243-25   directing the proper officers of the municipality to sign it; and
243-26               (2)  once the contract has been executed, the
243-27   municipality's obligations to the authority under the contract are
 244-1   an obligation of the municipality's taxing power, but may be paid
 244-2   as provided by the contract, from taxes and revenues from which
 244-3   payments are required by Subsection (f).
 244-4         SECTION 8.350.  Section 402.051, Local Government Code, is
 244-5   amended to read as follows:
 244-6         Sec. 402.051.  DRAINAGE REVENUE BONDS.  By majority vote of
 244-7   the governing body, the municipality may issue drainage revenue
 244-8   bonds.  The municipality may use Chapter 1201, Government Code [the
 244-9   Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
244-10   Statutes)]. In addition, the municipality may pledge income
244-11   received by contracts for the provision of drainage to other
244-12   governments or governmental subdivisions located inside or outside
244-13   the service area.
244-14         SECTION 8.351.  Section 402.903(c), Local Government Code, is
244-15   amended to read as follows:
244-16         (c)  If provided in the agreement or contract, the amounts
244-17   required to be paid by the municipality to the district under the
244-18   agreement or contract are an operating expense of the electric
244-19   system, or combined utility system of which the electric system is
244-20   a part, in the manner provided for other operating and maintenance
244-21   expenses of the electric system or combined utility system as
244-22   provided by Section 1502.056, Government Code [Article 1113,
244-23   Revised Statutes].
244-24         SECTION 8.352.  Section 51.121(e), Natural Resources Code, is
244-25   amended to read as follows:
244-26         (e)  Subject to the provisions of Title 2, Utilities Code,
244-27   any district created by [Article XVI,] Section 59, Article XVI, [of
 245-1   the] Texas Constitution, that leases unsold public school or asylum
 245-2   land for power generation through the use of renewable energy
 245-3   sources, such as wind, solar, or geothermal energy and other
 245-4   sustainable sources, or a district participating in a power
 245-5   generation project using renewable energy sources which is located
 245-6   on unsold public school or asylum lands may distribute and sell
 245-7   electric energy generated on public school or asylum lands within
 245-8   or without the boundaries of the district and may issue bonds to
 245-9   accomplish such purposes pursuant to Chapter 1371, Government Code
245-10   [656, Acts of the 68th Legislature, Regular Session, 1983 (Article
245-11   717q, Vernon's Texas Civil Statutes)], or other applicable law.
245-12   For any such power generation project which is located on both
245-13   public lands and private lands, the district may sell outside its
245-14   boundaries only the pro rata portion of the total amount as is
245-15   generated on the public lands.  All electric energy generated
245-16   pursuant to this section shall be sold for resale only to utilities
245-17   authorized to make retail sales under Title 2, Utilities Code, and
245-18   shall be subject to the solicitation process and integrated
245-19   resource planning process authorized by that title.
245-20         SECTION 8.353.  Section 62.013(b), Natural Resources Code, is
245-21   amended to read as follows:
245-22         (b)  Notice of the election shall be given in the manner
245-23   provided by Chapter 1251, Government Code [1, Title 22, Revised
245-24   Civil Statutes of Texas, 1925, as amended].
245-25         SECTION 8.354.  Section 161.074(c), Natural Resources Code,
245-26   is amended to read as follows:
245-27         (c)  Unless the board elects otherwise in its approval of a
 246-1   bond enhancement agreement, the bond enhancement agreement is not a
 246-2   credit agreement for purposes of Chapter 1371, Government Code
 246-3   [656, Acts of the 68th Legislature, Regular Session, 1983 (Article
 246-4   717q, Vernon's Texas Civil Statutes)], regardless of whether the
 246-5   bonds relating to the bond enhancement agreement were issued in
 246-6   part under that law.
 246-7         SECTION 8.355.  Section 161.2111, Natural Resources Code, is
 246-8   amended to read as follows:
 246-9         Sec. 161.2111.  REPORT TO BOND REVIEW BOARD.  With respect to
246-10   purchases made under this chapter, the Veterans' Land Board [board]
246-11   shall file semiannually with the Bond Review Board [bond review
246-12   board established under Chapter 1078, Acts of the 70th Legislature,
246-13   Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil
246-14   Statutes),] a report on the performance of loans made by the
246-15   Veterans' Land Board [board] in connection with the purchases.  The
246-16   Bond Review Board [bond review board] shall review the reports
246-17   filed by the Veterans' Land Board [board] under this section to
246-18   assess the performance of loans made under this chapter.  The
246-19   filing dates and the contents of the reports must comply with any
246-20   rules adopted by the Bond Review Board [bond review board].
246-21         SECTION 8.356.  Section 162.003(e), Natural Resources Code,
246-22   is amended to read as follows:
246-23         (e)  With respect to loans made under the program, the
246-24   Veterans' Land Board [board] shall file semiannually with the Bond
246-25   Review Board [bond review board established under Chapter 1078,
246-26   Acts of the 70th Legislature, Regular Session, 1987 (Article
246-27   717k-7, Vernon's Texas Civil Statutes),] a report on the
 247-1   performance of the loans.  The Bond Review Board [bond review
 247-2   board] shall review the reports filed by the Veterans' Land Board
 247-3   [board] under this subsection to assess the performance of loans
 247-4   made under the program.  The filing dates and the contents of the
 247-5   reports must comply with any rules adopted by the Bond Review Board
 247-6   [bond review board].
 247-7         SECTION 8.357.  Section 162.052(c), Natural Resources Code,
 247-8   is amended to read as follows:
 247-9         (c)  Unless the board elects otherwise in its approval of a
247-10   bond enhancement agreement, the bond enhancement agreement is not a
247-11   credit agreement for purposes of Chapter 1371, Government Code
247-12   [656, Acts of the 68th Legislature, Regular Session, 1983 (Article
247-13   717q, Vernon's Texas Civil Statutes)], regardless of whether the
247-14   bonds relating to the bond enhancement agreement were issued in
247-15   part under that law.
247-16         SECTION 8.358.  Section 164.006, Natural Resources Code, is
247-17   amended to read as follows:
247-18         Sec. 164.006.  ISSUANCE OF BONDS.  For the issuance of bonds
247-19   under this chapter, the board may exercise the authority granted to
247-20   the governing body of an issuer with regard to issuance of
247-21   obligations under Chapter 1371, Government Code [656, Acts of the
247-22   68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
247-23   Texas Civil Statutes)], to the extent that it is not inconsistent
247-24   with this chapter.
247-25         SECTION 8.359.  Section 164.010(c), Natural Resources Code,
247-26   is amended to read as follows:
247-27         (c)  Unless the board elects otherwise in its approval of a
 248-1   bond enhancement agreement, the bond enhancement agreement is not a
 248-2   credit agreement for purposes of Chapter 1371, Government Code
 248-3   [656, Acts of the 68th Legislature, Regular Session, 1983 (Article
 248-4   717q, Vernon's Texas Civil Statutes)], regardless of whether the
 248-5   bonds relating to the bond enhancement agreement were issued in
 248-6   part under that law.
 248-7         SECTION 8.360.  Section 164.014, Natural Resources Code, is
 248-8   amended to read as follows:
 248-9         Sec. 164.014.  APPROVAL OF THE ATTORNEY GENERAL.  Bonds
248-10   issued under this chapter are subject to review and approval by the
248-11   attorney general in the same manner and with the same effect as
248-12   provided by Chapter 1371, Government Code [656, Acts of the 68th
248-13   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
248-14   Civil Statutes)].
248-15         SECTION 8.361.  Section 221.047(e), Natural Resources Code,
248-16   is amended to read as follows:
248-17         (e)  The bond may bear interest and may be issued in
248-18   accordance with:
248-19               (1)  Chapters 1201, 1204, and 1371, Government Code; or
248-20               (2)  Subchapters A-C, Chapter 1207, Government Code
248-21   [Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k,
248-22   Vernon's Texas Civil Statutes);]
248-23               [(2)  Chapter 3, Acts of the 61st Legislature, Regular
248-24   Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes);]
248-25               [(3)  the Bond Procedures Act of 1981 (Article 717k-6,
248-26   Vernon's Texas Civil Statutes); or]
248-27               [(4)  Chapter 656, Acts of the 68th Legislature,
 249-1   Regular Session, 1983 (Article 717q, Vernon's Texas Civil
 249-2   Statutes)].
 249-3         SECTION 8.362.  Section 13.0045(b), Parks and Wildlife Code,
 249-4   is amended to read as follows:
 249-5         (b)  On receipt of the department's request, the authority
 249-6   shall promptly issue the bonds or other obligations under and in
 249-7   accordance with Chapter 1232, Government Code [the Texas Public
 249-8   Finance Authority Act (Article 601d, Vernon's Texas Civil
 249-9   Statutes)].
249-10         SECTION 8.363.  Section 21.1061, Parks and Wildlife Code, is
249-11   amended to read as follows:
249-12         Sec. 21.1061.  REPORT TO BOND REVIEW BOARD.  The commission
249-13   shall file with the Bond Review Board [bond review board
249-14   established under Chapter 1078, Acts of the 70th Legislature,
249-15   Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil
249-16   Statutes),] a report on the performance of the interest and sinking
249-17   fund and the development fund.  The [bond review] board shall
249-18   review the reports filed by the commission under this section to
249-19   assess the performance of the funds in repaying bonds issued under
249-20   this chapter.  The filing dates and the contents of the reports
249-21   must comply with any rules adopted by the [bond review] board.
249-22         SECTION 8.364.  Section 86.014(a), Parks and Wildlife Code,
249-23   is amended to read as follows:
249-24         (a)  The commission shall grant to any county, city, or town
249-25   that is authorized under Subchapter A, Chapter 421, Local
249-26   Government Code [Title 118, Revised Civil Statutes of Texas, 1925],
249-27   to build and maintain seawalls a permit for the taking of marl,
 250-1   sand, gravel, shell, or mudshell to be used for the building,
 250-2   extending, protecting, maintaining, or improving any seawall,
 250-3   breakwater, levee, dike, floodway, or drainway.
 250-4         SECTION 8.365.  Section 351.102(a), Tax Code, is amended to
 250-5   read as follows:
 250-6         (a)  Subject to the limitations provided by this subchapter,
 250-7   a municipality may pledge the revenue derived from the tax imposed
 250-8   under this chapter for the payment of bonds that are issued under
 250-9   Section 1504.002(a), Government Code [3, Chapter 63, Acts of the
250-10   59th Legislature, Regular Session, 1965 (Article 1269j-4.1,
250-11   Vernon's Texas Civil Statutes)], for one or more of the purposes
250-12   provided by Section 351.101 or, in the case of a municipality of
250-13   1,500,000 or more, for the payment of principal of or interest on
250-14   bonds or other obligations of a municipally sponsored local
250-15   government corporation created under Chapter 431, Transportation
250-16   Code, that were issued to pay the cost of the acquisition and
250-17   construction of a convention center hotel or the cost of
250-18   acquisition, remodeling, or rehabilitation of a historic hotel
250-19   structure;  provided, however, such pledge may only be that portion
250-20   of the tax collected at such hotel.
250-21         SECTION 8.366.  Section 351.104(a), Tax Code, is amended to
250-22   read as follows:
250-23         (a)  Subject to the limitation provided by Subsection (b) and
250-24   Section 351.102, an eligible municipality may pledge to the payment
250-25   of revenue bonds and revenue refunding bonds issued under
250-26   Subchapter A, Chapter 1504, Government Code [Chapter 63, Acts of
250-27   the 59th Legislature, Regular Session, 1965], all or any portion of
 251-1   the revenue derived from the municipal [municipality] hotel
 251-2   occupancy tax and all or any portion of any other revenue of the
 251-3   municipality as the governing body may determine in the ordinance
 251-4   authorizing the issuance of the bonds.
 251-5         SECTION 8.367.  Sections 351.105(a) and (g), Tax Code, are
 251-6   amended to read as follows:
 251-7         (a)  An eligible coastal municipality that levies and
 251-8   collects an occupancy tax authorized by this chapter at a rate of
 251-9   seven percent shall pledge a portion of the revenue equal to at
251-10   least one percent of the cost of a room to either or both of the
251-11   following purposes:
251-12               (1)  the payment of the bonds that the municipality or
251-13   a park board of trustees may issue under Section 1504.002(a),
251-14   Government Code [3, Chapter 63, Acts of the 59th Legislature,
251-15   Regular Session, 1965 (Article 1269j-4.1, Vernon's Texas Civil
251-16   Statutes)], or under Chapter 306, Local Government Code, in order
251-17   to provide all or part of the funds for the establishment,
251-18   acquisition, purchase, construction, improvement, enlargement,
251-19   equipment, or repair of public improvements, including parks, civic
251-20   centers, civic center buildings, auditoriums, exhibition halls,
251-21   coliseums, marinas, cruise ship terminal facilities, hotels,
251-22   motels, parking facilities, golf courses, trolley or trolley
251-23   transportation systems, and other facilities as may be considered
251-24   advisable in connection with these facilities that serve the
251-25   purpose of attracting visitors and tourists to the municipality; or
251-26               (2)  the maintenance, improvement, or operation of the
251-27   parks, civic centers, civic center buildings, auditoriums,
 252-1   exhibition halls, coliseums, marinas, cruise ship terminal
 252-2   facilities, hotels, motels, parking facilities, golf courses,
 252-3   trolley or trolley transportation systems, and other facilities as
 252-4   may be considered advisable in connection with these facilities
 252-5   that serve the purpose of attracting visitors and tourists to the
 252-6   municipality.
 252-7         (g)  The following statutes prevail over any conflicting
 252-8   provision in the charter of an eligible coastal municipality:
 252-9               (1)  this section;
252-10               (2)  Chapter 306, Local Government Code; and
252-11               (3)  Subchapter A, Chapter 1504, Government Code
252-12   [Chapter 63, Acts of the 59th Legislature, Regular Session, 1965
252-13   (Article 1269j-4.1, Vernon's Texas Civil Statutes)].
252-14         SECTION 8.368.  Section 351.106(a), Tax Code, is amended to
252-15   read as follows:
252-16         (a)  A municipality that has a population of one million or
252-17   more and that has adopted a council-manager form of government
252-18   shall use the amount of revenue from the tax that is derived from
252-19   the application of the tax at a rate of more than four percent of
252-20   the cost of a room as follows:
252-21               (1)  no more than 55 percent to:
252-22                     (A)  constructing, improving, enlarging,
252-23   equipping, and repairing the municipality's convention center
252-24   complex; or
252-25                     (B)  pledging payment of revenue bonds and
252-26   revenue refunding bonds issued under Subchapter A, Chapter 1504,
252-27   Government Code [Chapter 63, Acts of the 59th Legislature, Regular
 253-1   Session, 1965 (Article 1269j-4.1, Vernon's Texas Civil Statutes)],
 253-2   for the municipality's convention center complex; and
 253-3               (2)  at least 45 percent for the purposes provided by
 253-4   Section 351.101(a)(3).
 253-5         SECTION 8.369.  Section 351.1065(a), Tax Code, is amended to
 253-6   read as follows:
 253-7         (a)  An eligible central municipality shall use the amount of
 253-8   revenue from the tax that is derived from the application of the
 253-9   tax at a rate of more than seven percent of the cost of a room only
253-10   for:
253-11               (1)  the construction of an expansion of an existing
253-12   convention center facility; and
253-13               (2)  pledging payment of revenue bonds and revenue
253-14   refunding bonds issued under Subchapter A, Chapter 1504, Government
253-15   Code [Chapter 63, Acts of the 59th Legislature, Regular Session,
253-16   1965 (Article 1269j-4.1, Vernon's Texas Civil Statutes)], for the
253-17   construction of the expansion.
253-18         SECTION 8.370.  Section 352.104, Tax Code, is amended to read
253-19   as follows:
253-20         Sec. 352.104.  PLEDGE FOR BONDS.  A county may pledge the
253-21   revenue derived from the tax imposed under this chapter for the
253-22   payment of bonds that are issued by the county under Section
253-23   1477.303, Government Code [3, Article I, Chapter 796, Acts of the
253-24   67th Legislature, Regular Session, 1981 (Article 2372d-8, Vernon's
253-25   Texas Civil Statutes)], for one or more of the purposes provided by
253-26   Section 352.101.
253-27         SECTION 8.371.  Section 22.052(b), Transportation Code, is
 254-1   amended to read as follows:
 254-2         (b)  For a purpose described by Subsection (a), a local
 254-3   government, in the manner provided by Subtitles A, C, D, and E,
 254-4   Title 9, Government Code [Title 22, Revised Statutes], may:
 254-5               (1)  issue any form of secured or unsecured bonds,
 254-6   including general or special obligation bonds, revenue bonds, or
 254-7   refunding bonds; and
 254-8               (2)  impose taxes to provide for the interest and
 254-9   sinking funds of any bonds issued.
254-10         SECTION 8.372.  Section 22.0781(d), Transportation Code, is
254-11   amended to read as follows:
254-12         (d)  A constituent agency may use revenue received under an
254-13   agreement under this section for one or more of the following:
254-14               (1)  the acquisition, construction, improvement, and
254-15   renovation of any public work, including land, buildings,
254-16   materials, supplies, equipment, furnishings, and machinery;
254-17               (2)  to secure and pledge in support of the payment of
254-18   bonds or other obligations issued by or on behalf of the
254-19   constituent agency after the effective date of the agreement for
254-20   any purpose for which the constituent agency, or an entity created
254-21   by the constituent agency to act on its behalf, may issue bonds or
254-22   obligations; and
254-23               (3)  to pay the cost of a credit agreement, as defined
254-24   by Section 1371.001, Government Code [1, Chapter 656, Acts of the
254-25   68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
254-26   Texas Civil Statutes)].
254-27         SECTION 8.373.  Section 222.075(c), Transportation Code, is
 255-1   amended to read as follows:
 255-2         (c)  Notwithstanding any other provision of this section, the
 255-3   following laws apply to bonds issued by the commission:
 255-4               (1)  Chapters 1201, 1202, 1204, 1231, and 1371,
 255-5   Government Code; and
 255-6               (2)  Subchapters A-C, Chapter 1207, Government Code
 255-7   [Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k,
 255-8   Vernon's Texas Civil Statutes);]
 255-9               [(2)  Chapter 3, Acts of the 61st Legislature, Regular
255-10   Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes);]
255-11               [(3)  the Bond Procedures Act of 1981 (Article 717k-6,
255-12   Vernon's Texas Civil Statutes);]
255-13               [(4)  Chapter 1078, Acts of the 70th Legislature,
255-14   Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil
255-15   Statutes);]
255-16               [(5)  Article 3, Chapter 53, Acts of the 70th
255-17   Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
255-18   Texas Civil Statutes); and]
255-19               [(6)  Chapter 656, Acts of the 68th Legislature,
255-20   Regular Session, 1983 (Article 717q, Vernon's Texas Civil
255-21   Statutes)].
255-22         SECTION 8.374.  Sections 256.051(a) and (b), Transportation
255-23   Code, are amended to read as follows:
255-24         (a)  In each year in which bonds issued under Chapter 1471,
255-25   Government Code [Article 726, Revised Statutes], are outstanding,
255-26   the county, precinct, or road district that issued the bonds shall
255-27   impose taxes in an amount sufficient to pay the principal of and
 256-1   interest on the bonds.
 256-2         (b)  The taxes shall be imposed in the manner provided by
 256-3   Sections 51.502 through 51.506, Water Code.  A reference in Chapter
 256-4   257 [of this code] or in Chapter 1471, Government Code [Article
 256-5   726, Revised Statutes], to ad valorem taxes applies to a tax levied
 256-6   by the commissioners court under this section on a basis other than
 256-7   the ad valorem basis.
 256-8         SECTION 8.375.  Section 256.054(g), Transportation Code, is
 256-9   amended to read as follows:
256-10         (g)  The commissioners court of a county that adopts a tax as
256-11   provided by this section may issue negotiable county bonds or
256-12   county time warrants for the construction or improvement of
256-13   farm-to-market and lateral roads or the construction of permanent
256-14   improvements for flood control purposes if the bonds or warrants
256-15   are authorized by a majority of the votes received in an election
256-16   ordered by the commissioners court.  The commissioners court shall
256-17   submit each proposition separately at the election.  The
256-18   commissioners court shall issue the bonds or warrants and impose
256-19   the taxes for those bonds or warrants as provided by Subtitles A
256-20   and C, Title 9, Government Code [Chapter 1, Title 22, Revised
256-21   Statutes].
256-22         SECTION 8.376.  Section 257.001, Transportation Code, is
256-23   amended to read as follows:
256-24         Sec. 257.001.  ROAD DISTRICT OR PRECINCT OPERATING UNDER ROAD
256-25   BOND LAW DESIGNATED BODY CORPORATE; POWER TO SUE AND BE SUED.  (a)
256-26   A county commissioners precinct or justice precinct operating under
256-27   Chapter 1471, Government Code [Article 726, Revised Statutes], or a
 257-1   road district is a body corporate and may sue or be sued in the
 257-2   same manner as a county.
 257-3         (b)  A commissioners precinct or justice precinct operating
 257-4   under Chapter 1471, Government Code [Article 726, Revised
 257-5   Statutes], or a road district may not be held liable for a tort
 257-6   except as provided by Chapter 101, Civil Practice and Remedies
 257-7   Code.
 257-8         SECTION 8.377.  Section 257.002(a), Transportation Code, is
 257-9   amended to read as follows:
257-10         (a)  A county commissioner is the ex officio road
257-11   superintendent with power to enter into a contract in an amount
257-12   that is not more than $50 on behalf of:
257-13               (1)  a road district located in the commissioner's
257-14   precinct;
257-15               (2)  a justice precinct operating under Chapter 1471,
257-16   Government Code [Article 726, Revised Statutes], and located in the
257-17   commissioner's precinct; or
257-18               (3)  the commissioner's precinct if it is operating
257-19   under Chapter 1471, Government Code [Article 726, Revised
257-20   Statutes].
257-21         SECTION 8.378.  Sections 257.021(c) and (d), Transportation
257-22   Code, are amended to read as follows:
257-23         (c)  Before establishing a road district under this section,
257-24   the commissioners court shall conduct a public hearing on the
257-25   matter.  Notice of the hearing shall be given in the manner
257-26   provided for notice of an election by Section 1471.018, Government
257-27   Code [2.006, Article 726, Revised Statutes].
 258-1         (d)  The establishment of a defined road district or the
 258-2   issuance of road district bonds in a county with outstanding
 258-3   countywide road bonds is not prevented by this chapter or
 258-4   Subchapters A-C, Chapter 1471, Government Code [Part 2, Article
 258-5   726, Revised Statutes].
 258-6         SECTION 8.379.  Section 257.022(a), Transportation Code, is
 258-7   amended to read as follows:
 258-8         (a)  The commissioners court by order may abolish a road
 258-9   district after a public hearing on the matter if:
258-10               (1)  the road district has no outstanding public
258-11   securities [bonds], as that term is defined by Section 1201.002,
258-12   Government Code [the Bond Procedures Act of 1981 (Article 717k-6,
258-13   Vernon's Texas Civil Statutes)]; or
258-14               (2)  all the public securities [bonds] of the district
258-15   have been assumed and exchanged for county bonds under Subchapter
258-16   D, Chapter 1471, Government Code [Part 3, Article 726, Revised
258-17   Statutes].
258-18         SECTION 8.380.  Section 257.023(b), Transportation Code, is
258-19   amended to read as follows:
258-20         (b)  Except as specifically permitted by Sections 1471.086
258-21   and 1471.087, Government Code [3.004 and 3.005, Article 726,
258-22   Revised Statutes], a road district may not contain a fractional
258-23   part of a preexisting road district.
258-24         SECTION 8.381.  Section 257.111(b), Transportation Code, is
258-25   amended to read as follows:
258-26         (b)  A district may purchase or take over a road under
258-27   Subsection (a) only in the manner provided by Subchapter D, Chapter
 259-1   1471, Government Code [Part 3, Article 726, Revised Statutes],
 259-2   except that a petition is not required to be filed.
 259-3         SECTION 8.382.  Section 257.113(d), Transportation Code, is
 259-4   amended to read as follows:
 259-5         (d)  If the proposition provides for the road district to
 259-6   purchase or take over improved roads constructed by an included
 259-7   county or another road district included in the road district, the
 259-8   election order must conform to the requirements of Section
 259-9   1471.081, Government Code [3.001, Article 726, Revised Statutes].
259-10         SECTION 8.383.  Section 257.114(c), Transportation Code, is
259-11   amended to read as follows:
259-12         (c)  All other proceedings relating to the question submitted
259-13   must be in accordance with the provisions of Chapter 1471,
259-14   Government Code [Parts 2 and 3, Article 726, Revised Statutes],
259-15   that apply to county road bond elections.
259-16         SECTION 8.384.  Section 257.119(c), Transportation Code, is
259-17   amended to read as follows:
259-18         (c)  The commissioners courts shall sell some or all of the
259-19   bonds at that joint meeting at a price permitted by Chapter 1204,
259-20   Government Code [3, Acts of the 61st Legislature, Regular Session,
259-21   1969 (Article 717k-2, Vernon's Texas Civil Statutes)].  The
259-22   purchase money shall be deposited with the road district's
259-23   treasurer or depository to the credit of the available road fund of
259-24   the road district.
259-25         SECTION 8.385.  Section 257.122, Transportation Code, is
259-26   amended to read as follows:
259-27         Sec. 257.122.  INTEREST RATE AND MATURITY OF BONDS.  Bonds
 260-1   issued under this subchapter shall mature not later than the 40th
 260-2   anniversary of the date of their issuance and shall bear interest
 260-3   at a rate not to exceed that provided by Chapter 1204, Government
 260-4   Code [3, Acts of the 61st Legislature, Regular Session, 1969
 260-5   (Article 717k-2, Vernon's Texas Civil Statutes)].
 260-6         SECTION 8.386.  Section 361.172(b), Transportation Code, is
 260-7   amended to read as follows:
 260-8         (b)  Notwithstanding any other provisions of this chapter,
 260-9   the following laws apply to bonds issued by the authority:
260-10               (1)  Chapters 1201, 1202, 1204, and 1371, Government
260-11   Code; and
260-12               (2)  Subchapters A-C, Chapter 1207, Government Code
260-13   [Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k,
260-14   Vernon's Texas Civil Statutes);]
260-15               [(2)  Chapter 3, Acts of the 61st Legislature, Regular
260-16   Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes);]
260-17               [(3)  the Bond Procedures Act of 1981 (Article 717k-6,
260-18   Vernon's Texas Civil Statutes);]
260-19               [(4)  Article 3, Chapter 53, Acts of the 70th
260-20   Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
260-21   Texas Civil Statutes); and]
260-22               [(5)  Chapter 656, Acts of the 68th Legislature,
260-23   Regular Session, 1983 (Article 717q, Vernon's Texas Civil
260-24   Statutes)].
260-25         SECTION 8.387.  Section 361.238(a), Transportation Code, is
260-26   amended to read as follows:
260-27         (a)  Except as provided by Subsection (b), a turnpike project
 261-1   becomes a toll-free highway when:
 261-2               (1)  the bonds issued under this chapter for the
 261-3   project and the interest on the bonds are paid; or
 261-4               (2)  firm banking and financial arrangements have been
 261-5   made for the discharge and final payment or redemption of the bonds
 261-6   in accordance with Section 1207.033, Government Code [7A, Chapter
 261-7   503, Acts of the 54th Legislature, 1955 (Article 717k, Vernon's
 261-8   Texas Civil Statutes)].
 261-9         SECTION 8.388.  Sections 362.003(a) and (c), Transportation
261-10   Code, are amended to read as follows:
261-11         (a)  This chapter is cumulative of all laws affecting the
261-12   issuance of bonds by local governmental entities, particularly, but
261-13   not by way of limitation, provisions of Chapters 1201 and 1371,
261-14   Government Code, and Subchapters A-C, Chapter 1207, Government Code
261-15   [Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k,
261-16   Vernon's Texas Civil Statutes), the Bond Procedures Act of 1981
261-17   (Article 717k-6, Vernon's Texas Civil Statutes), and Chapter 656,
261-18   Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
261-19   Vernon's Texas Civil Statutes)], are applicable to and apply to all
261-20   bonds issued under [to] this chapter, regardless of any
261-21   classification of any such local governmental entities thereunder;
261-22   provided, however, in the event of any conflict between such laws
261-23   and this chapter, the provisions of this chapter prevail.
261-24         (c)  This chapter is cumulative of all laws affecting the
261-25   authority, and the authority is authorized to enter into all
261-26   agreements necessary or convenient to effectuate the purposes of
261-27   this chapter.  Particularly, but not by way of limitation, the
 262-1   provisions of Chapters 1201 and 1371, Government Code, and
 262-2   Subchapters A-C, Chapter 1207, Government Code [Chapter 503, Acts
 262-3   of the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil
 262-4   Statutes), the Bond Procedures Act of 1981 (Article 717k-6,
 262-5   Vernon's Texas Civil Statutes), Chapter 656, Acts of the 68th
 262-6   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
 262-7   Civil Statutes)], and Chapter 361 are applicable to the bonds
 262-8   issued by the authority under this chapter.
 262-9         SECTION 8.389.  Section 362.007(e), Transportation Code, is
262-10   amended to read as follows:
262-11         (e)  Any election required to permit action under this
262-12   subchapter must be held in conformance with Chapter 1251,
262-13   Government Code [1, Title 22, Revised Statutes], or other law
262-14   applicable to the local governmental entity.
262-15         SECTION 8.390.  Section 365.031, Transportation Code, is
262-16   amended to read as follows:
262-17         Sec. 365.031.  AUTHORITY TO ISSUE BONDS.  A district may
262-18   issue bonds to finance a toll road project:
262-19               (1)  to the extent and for the purpose a county may pay
262-20   the cost of a project under Chapter 284; and
262-21               (2)  as provided by Chapter 1371, Government Code [656,
262-22   Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
262-23   Vernon's Texas Civil Statutes)].
262-24         SECTION 8.391.  Section 365.036(a), Transportation Code, is
262-25   amended to read as follows:
262-26         (a)  A district may issue refunding bonds to refund its bonds
262-27   under this chapter as provided by Chapter 1371, Government Code
 263-1   [656, Acts of the 68th Legislature, Regular Session, 1983 (Article
 263-2   717q, Vernon's Texas Civil Statutes)], and Chapter 441.
 263-3         SECTION 8.392.  Section 366.118, Transportation Code, is
 263-4   amended to read as follows:
 263-5         Sec.  366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS.  All
 263-6   laws affecting the issuance of bonds by local governmental
 263-7   entities, including Chapters 1201, 1202, 1204, and 1371, Government
 263-8   Code [Chapter 656, Acts of the 68th Legislature, Regular Session,
 263-9   1983 (Article 717q, Vernon's Texas Civil Statutes), Chapter 3, Acts
263-10   of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
263-11   Vernon's Texas Civil Statutes), the Bond Procedures Act of 1981
263-12   (Article 717k-6, Vernon's Texas Civil Statutes), and Chapter 53,
263-13   Acts of the 70th Legislature, 2nd Called Session, 1987 (Article
263-14   717k-8, Vernon's Texas Civil Statutes)], apply to bonds issued
263-15   under this chapter.  To the extent of a conflict between those laws
263-16   and this chapter, the provisions of this chapter prevail.
263-17         SECTION 8.393.  Section 366.303(e), Transportation Code, is
263-18   amended to read as follows:
263-19         (e)  Any election required to permit action under this
263-20   subchapter must be held in conformity with Chapter 1251, Government
263-21   Code [1, Title 22, Revised Statutes], or other law applicable to
263-22   the local governmental entity.
263-23         SECTION 8.394.  Section 431.070(b), Transportation Code, is
263-24   amended to read as follows:
263-25         (b)  The bonds and notes may be issued under any power or
263-26   authority available to the corporation, including Chapter 1201,
263-27   Government Code [the Bond Procedures Act of 1981 (Article 717k-6,
 264-1   Vernon's Texas Civil Statutes)].
 264-2         SECTION 8.395.  Section 451.359, Transportation Code, is
 264-3   amended to read as follows:
 264-4         Sec. 451.359.  REFUNDING BONDS.  An authority may issue
 264-5   refunding bonds for the purposes and in the manner authorized by
 264-6   general law, including Chapter 1207, Government Code [503, Acts of
 264-7   the 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
 264-8   Texas Civil Statutes) and Chapter 784, Acts of the 61st
 264-9   Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas
264-10   Civil Statutes)].
264-11         SECTION 8.396.  Section 452.359, Transportation Code, is
264-12   amended to read as follows:
264-13         Sec. 452.359.  REFUNDING BONDS.  An authority may issue
264-14   refunding bonds for the purposes and in the manner authorized by
264-15   general law, including Chapter 1207, Government Code [503, Acts of
264-16   the 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
264-17   Texas Civil Statutes), and Chapter 784, Acts of the 61st
264-18   Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas
264-19   Civil Statutes)].
264-20         SECTION 8.397.  Section 453.309, Transportation Code, is
264-21   amended to read as follows:
264-22         Sec. 453.309.  REFUNDING BONDS.  A transit department may
264-23   issue refunding bonds for the purposes and in the manner authorized
264-24   by Chapter 1207, Government Code [503, Acts of the 54th
264-25   Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
264-26   Civil Statutes), Chapter 784, Acts of the 61st Legislature, Regular
264-27   Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes)], or
 265-1   other law.
 265-2         SECTION 8.398.  Section 454.024(a), Transportation Code, is
 265-3   amended to read as follows:
 265-4         (a)  If a petition meeting the requirements of Section
 265-5   454.023 is filed:
 265-6               (1)  the governing body of the municipality shall hold
 265-7   an election on the question as provided by Chapter 1251, Government
 265-8   Code [1, Title 22, Revised Statutes]; and
 265-9               (2)  the bonds or notes may not be issued unless a
265-10   majority of the votes received at the election favor the question. 
265-11         SECTION 8.399.  Section 457.258, Transportation Code, is
265-12   amended to read as follows:
265-13         Sec. 457.258.  REFUNDING BONDS.  An authority may issue
265-14   refunding bonds for the purposes and in the manner authorized by
265-15   Chapter 1207, Government Code [503, Acts of the 54th Legislature,
265-16   1955 (Article 717k, Vernon's Texas Civil Statutes), Chapter 784,
265-17   Acts of the 61st Legislature, Regular Session, 1969 (Article
265-18   717k-3, Vernon's Texas Civil Statutes)], or other law.
265-19         SECTION 8.400.  Sections 32.053(a), (b), (g), and (h),
265-20   Utilities Code, are amended to read as follows:
265-21         (a)  This section applies only to a corporation that:
265-22               (1)  sells electricity exclusively at wholesale, and
265-23   not to ultimate consumers;
265-24               (2)  is authorized by Chapter 152, Water Code [245,
265-25   Acts of the 67th Legislature, Regular Session, 1981 (Article 717p,
265-26   Vernon's Texas Civil Statutes)]; and
265-27               (3)  acts on behalf of a river authority.
 266-1         (b)  Notwithstanding a river authority's enabling legislation
 266-2   or Chapter 152, Water Code [245, Acts of the 67th Legislature,
 266-3   Regular Session, 1981 (Article 717p, Vernon's Texas Civil
 266-4   Statutes)], a corporation may:
 266-5               (1)  acquire, finance, construct, rebuild, repower,
 266-6   operate, or sell a facility directly related to the generation of
 266-7   electricity;
 266-8               (2)  sell, at wholesale only, the output of the
 266-9   facility to a purchaser, other than an ultimate consumer, at any
266-10   location in this state; and
266-11               (3)  purchase and sell electricity, at wholesale only,
266-12   to a purchaser, other than an ultimate consumer, at any location in
266-13   this state.
266-14         (g)  Notwithstanding any other law, the board of directors of
266-15   a river authority may sell, lease, loan, or otherwise transfer
266-16   some, all, or substantially all of the electric generation property
266-17   of the river authority to a nonprofit corporation authorized under
266-18   this section or Chapter 152, Water Code [245, Acts of the 67th
266-19   Legislature, Regular Session, 1981 (Article 717p, Vernon's Texas
266-20   Civil Statutes)].  The property transfer shall be made under terms
266-21   and conditions approved by the board of directors of the river
266-22   authority.
266-23         (h)  Subsections (a)-(f) do not apply to a corporation
266-24   created under Chapter 152, Water Code [245, Acts of the 67th
266-25   Legislature, Regular Session, 1981 (Article 717p, Vernon's Texas
266-26   Civil Statutes)], to serve an area described in Section 32.052.
266-27         SECTION 8.401.  Sections 40.001(b)-(d), Utilities Code, are
 267-1   amended to read as follows:
 267-2         (b)  Except as specifically provided in this subsection,
 267-3   Chapter 39 does not apply to a river authority operating a steam
 267-4   generating plant on or before January 1, 1999, or a corporation
 267-5   authorized by Chapter 152, Water Code [245, Acts of the 67th
 267-6   Legislature, Regular Session, 1981 (Article 717p, Vernon's Texas
 267-7   Civil Statutes)], or Section 32.053.  A river authority operating a
 267-8   steam generating plant on or before January 1, 1999, is subject to
 267-9   Sections 39.051(a)-(c), 39.108, 39.155, 39.157(e), and 39.203.
267-10         (c)  For purposes of Section 39.051, hydroelectric assets may
267-11   not be deemed to be generating assets, and the transfer of
267-12   generating assets to a corporation authorized by Chapter 152, Water
267-13   Code [245, Acts of the 67th Legislature, Regular Session, 1981
267-14   (Article 717p, Vernon's Texas Civil Statutes)], satisfies the
267-15   requirements of Section 39.051.
267-16         (d)  Accommodation shall be made in the code of conduct
267-17   established under Section 39.157(e) for the provisions of Chapter
267-18   152, Water Code [245, Acts of the 67th Legislature, Regular
267-19   Session, 1981 (Article 717p, Vernon's Texas Civil Statutes)], and
267-20   the commission may not prohibit a river authority and any related
267-21   corporation from sharing officers, directors, employees, equipment,
267-22   and facilities or from providing goods or services to each other at
267-23   cost without the need for a competitive bid.
267-24         SECTION 8.402.  Section 40.002, Utilities Code, is amended to
267-25   read as follows:
267-26         Sec. 40.002.  DEFINITION.  For purposes of this chapter,
267-27   "body vested with the power to manage and operate a municipally
 268-1   owned utility" means [shall mean] a body created in accordance with
 268-2   Section 1502.070, Government Code, or Subchapter G, Chapter 402,
 268-3   Local Government Code [Article 1115 or 1115a, Revised Statutes], or
 268-4   by municipal charter.
 268-5         SECTION 8.403.  Section 40.003(c), Utilities Code, is amended
 268-6   to read as follows:
 268-7         (c)  Bonds issued under the authority conferred by
 268-8   Subsections (a)(1) and (2) and Subsection (b) may be issued in the
 268-9   form and manner, with or without credit enhancement or liquidity
268-10   enhancement and using the procedures as provided in Chapter 1201,
268-11   Government Code, [the Bond Procedures Act of 1981 (Article 717k-6,
268-12   Vernon's Texas Civil Statutes)] or other laws applicable to the
268-13   issuance of bonds, including Subchapters A-C, Chapter 1207,
268-14   Government Code, and Chapter 1371, Government Code [Chapter 656,
268-15   Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
268-16   Vernon's Texas Civil Statutes), Chapter 503, Acts of the 54th
268-17   Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
268-18   Civil Statutes), and Chapter 642, Acts of the 65th Legislature,
268-19   Regular Session, 1977 (Article 1118n-12, Vernon's Texas Civil
268-20   Statutes)], as if those laws were fully restated in this section
268-21   and made a part of this section for all purposes, and a
268-22   municipality or river authority shall have the right and authority
268-23   to use those other laws, notwithstanding any applicable
268-24   restrictions contained in those laws, to the extent convenient or
268-25   necessary to carry out any power or authority, express or implied,
268-26   granted under this section, in the issuance of bonds by a
268-27   municipality or river authority in connection with securitization
 269-1   financing.  This section is wholly sufficient authority for the
 269-2   issuance of bonds, notes, or other obligations, including refunding
 269-3   bonds, and the performance of the other authorized acts and
 269-4   procedures, without reference to any other laws or any restrictions
 269-5   or limitations contained in those laws.  To the extent of any
 269-6   conflict or inconsistency between the provisions of this
 269-7   authorization and any provisions of any other law or home-rule
 269-8   charter, the authorization and power to issue bonds conferred on
 269-9   municipalities or river authorities under this section shall
269-10   prevail and control.
269-11         SECTION 8.404.  Section 163.058(c), Utilities Code, is
269-12   amended to read as follows:
269-13         (c)  Notice of an election under this section shall be given
269-14   in accordance with Section 1251.003, Government Code [Article 704,
269-15   Revised Statutes].  The election shall be called and held in
269-16   accordance with:
269-17               (1)  the Election Code;
269-18               (2)  Chapter 1251, Government Code [1, Title 22,
269-19   Revised Statutes]; and
269-20               (3)  this subchapter.
269-21         SECTION 8.405.  Section 164.006, Utilities Code, is amended
269-22   to read as follows:
269-23         Sec. 164.006.  CONSTRUCTION WITH OTHER LAWS.  To provide full
269-24   authority for the execution of an agreement under this chapter,
269-25   this chapter applies to a municipality as if this chapter were
269-26   originally contained in Chapter 1501 or 1502, Government Code, or
269-27   Chapter 402, Local Government Code [10, Title 28, Revised
 270-1   Statutes].  This chapter prevails over any charter provision or
 270-2   general or special law.
 270-3         SECTION 8.406.  Section 17.029, Water Code, is amended to
 270-4   read as follows:
 270-5         Sec. 17.029.  REFUNDING BONDS.  The board may provide by
 270-6   resolution for the issuance of refunding bonds to refund
 270-7   outstanding bonds issued under this chapter and their accrued
 270-8   interest.  The board may sell the refunding bonds and use the
 270-9   proceeds to retire the outstanding bonds issued under this chapter,
270-10   exchange the refunding bonds for the outstanding bonds, or refund
270-11   the bonds in the manner provided by any other applicable statute,
270-12   including Chapter 1207, Government Code [503, Acts of the 54th
270-13   Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes),
270-14   and Chapter 784, Acts of the 61st Legislature, Regular Session,
270-15   1969 (Article 717k-3, Vernon's Texas Civil Statutes)].
270-16         SECTION 8.407.  Section 17.035(b), Water Code, is amended to
270-17   read as follows:
270-18         (b)  In addition to other authority granted by this
270-19   subchapter, the board may exercise the authority granted to the
270-20   governing body of an issuer with regard to issuance of obligations
270-21   under Chapter 1371, Government Code [656, Acts of the 68th
270-22   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
270-23   Civil Statutes)].
270-24         SECTION 8.408.  Section 17.179(d), Water Code, is amended to
270-25   read as follows:
270-26         (d)  With respect to projects for which financial assistance
270-27   is made available under this chapter, the Texas Water Development
 271-1   Board [board] shall file semiannually with the Bond Review Board
 271-2   [bond review board established under Chapter 1078, Acts of the 70th
 271-3   Legislature, Regular Session, 1987 (Article 717k-7, Vernon's Texas
 271-4   Civil Statutes),] a report on the performance of loans made by the
 271-5   Texas Water Development Board [board] in connection with the
 271-6   projects.  The Bond Review Board [bond review board] shall review
 271-7   the reports filed by the Texas Water Development Board [board]
 271-8   under this subsection to assess the adequacy of the security for
 271-9   the bonds purchased.  The filing dates and the contents of the
271-10   reports must comply with any rules adopted by the Bond Review Board
271-11   [bond review board].
271-12         SECTION 8.409.  Section 17.188(b), Water Code, is amended to
271-13   read as follows:
271-14         (b)  Notwithstanding the provisions of [Article 1112, Revised
271-15   Statutes, or] any [other] general or special law or charter
271-16   provisions to the contrary, a political subdivision may authorize,
271-17   issue, and sell its revenue bonds as provided by this section and
271-18   create any encumbrance in connection with those bonds by a majority
271-19   vote of the governing body of the political subdivision without the
271-20   necessity of an election.
271-21         SECTION 8.410.  Section 17.884, Water Code, is amended to
271-22   read as follows:
271-23         Sec. 17.884.  APPROVAL OF ATTORNEY GENERAL.  The proceedings
271-24   relating to the bonds issued under this subchapter are subject to
271-25   review and approval by the attorney general in the same manner and
271-26   with the same effects as provided by Chapter 1371, Government Code
271-27   [656, Acts of the 68th Legislature, Regular Session, 1983 (Article
 272-1   717q, Vernon's Texas Civil Statutes)].
 272-2         SECTION 8.411.  Section 17.887(b), Water Code, is amended to
 272-3   read as follows:
 272-4         (b)  The board may sell the refunding bonds and use the
 272-5   proceeds to retire the outstanding bonds issued under this chapter,
 272-6   exchange the refunding bonds for the outstanding bonds, or refund
 272-7   the bonds in the manner provided by any other applicable statute,
 272-8   including Chapter 1207, Government Code [503, Acts of the 54th
 272-9   Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes),
272-10   and Chapter 784, Acts of the 61st Legislature, Regular Session,
272-11   1969 (Article 717k-3, Vernon's Texas Civil Statutes)].
272-12         SECTION 8.412.  Section 17.893(b), Water Code, is amended to
272-13   read as follows:
272-14         (b)  In addition to other authority granted by this
272-15   subchapter, the board may exercise the powers granted to the
272-16   governing body of an issuer with regard to issuance of obligations
272-17   under Chapter 1371, Government Code [656, Acts of the 68th
272-18   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
272-19   Civil Statutes)].
272-20         SECTION 8.413.  Section 17.962(b), Water Code, is amended to
272-21   read as follows:
272-22         (b)  The proceedings relating to the water financial
272-23   assistance bonds issued under this subchapter are subject to review
272-24   and approval by the attorney general in the same manner and with
272-25   the same effect as provided by Chapter 1371, Government Code [656,
272-26   Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
272-27   Vernon's Texas Civil Statutes)].
 273-1         SECTION 8.414.  Section 17.967(b), Water Code, is amended to
 273-2   read as follows:
 273-3         (b)  The board may sell the refunding water financial
 273-4   assistance bonds and use the proceeds to retire any of the
 273-5   outstanding obligations described in Subsection (a), exchange the
 273-6   refunding water financial assistance bonds for the outstanding
 273-7   bonds or water financial assistance bonds, or refund any of the
 273-8   outstanding obligations described in Subsection (a) in the manner
 273-9   provided by any other applicable statute, including Chapter 1207,
273-10   Government Code [503, Acts of the 54th Legislature, 1955 (Article
273-11   717k, Vernon's Texas Civil Statutes), and Chapter 784, Acts of the
273-12   61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's
273-13   Texas Civil Statutes)].
273-14         SECTION 8.415.  Section 17.971(b), Water Code, is amended to
273-15   read as follows:
273-16         (b)  In addition to other authority granted by this
273-17   subchapter, the board may exercise the authority granted to the
273-18   governing body of an issuer with regard to the issuance of
273-19   obligations under Chapter 1371, Government Code [656, Acts of the
273-20   68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
273-21   Texas Civil Statutes)].
273-22         SECTION 8.416.  Section 20.101, Water Code, is amended to
273-23   read as follows:
273-24         Sec.  20.101.  ISSUANCE OF BONDS.  For the issuance of bonds
273-25   under this chapter, the board may exercise the authority granted to
273-26   the governing body of an issuer with regard to issuance of
273-27   obligations under Chapter 1371, Government Code [656, Acts of the
 274-1   68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
 274-2   Texas Civil Statutes)], to the extent that it is not inconsistent
 274-3   with this chapter.
 274-4         SECTION 8.417.  Section 20.102(c), Water Code, is amended to
 274-5   read as follows:
 274-6         (c)  The bonds may bear interest at a rate or rates
 274-7   determined in accordance with the resolution or order authorizing
 274-8   the issuance of the bonds but not to exceed the net effective
 274-9   interest rate authorized by Chapter 1204, Government Code [3, Acts
274-10   of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
274-11   Vernon's Texas Civil Statutes)].
274-12         SECTION 8.418.  Section 20.110, Water Code, is amended to
274-13   read as follows:
274-14         Sec. 20.110.  APPROVAL OF ATTORNEY GENERAL.  The bonds issued
274-15   under this chapter are subject to review and approval by the
274-16   attorney general in the same manner and with the same effect as
274-17   provided by Chapter 1371, Government Code [656, Acts of the 68th
274-18   Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
274-19   Civil Statutes)].
274-20         SECTION 8.419.  Section 30.030(c), Water Code, is amended to
274-21   read as follows:
274-22         (c)  If a public agency having taxing power holds an election
274-23   substantially according to the applicable provisions of Chapter
274-24   1251, Government Code [1, Title 22, Revised Civil Statutes of
274-25   Texas, 1925, as amended], relating to the issuance of bonds by
274-26   cities and it is determined that the public agency is authorized to
274-27   levy an ad valorem tax to make all or part of the payments under a
 275-1   contract with a district, then the contract is an obligation
 275-2   against the taxing power of the public agency to the extent
 275-3   authorized, and payments under the contract may be payable from and
 275-4   constitute solely an obligation against the taxing powers of the
 275-5   city or may be payable both from taxes and from revenue prescribed
 275-6   in the contract.  Otherwise, neither the district nor the holders
 275-7   of the district's bonds are entitled to demand payment of the
 275-8   public agency's obligation out of any tax revenue.
 275-9         SECTION 8.420.  Section 30.058(a), Water Code, is amended to
275-10   read as follows:
275-11         (a)  Instead of or in addition to obtaining the approval of
275-12   the attorney general, the district may have the bonds validated by
275-13   suit in the district court as provided in Chapter 1205, Government
275-14   Code [316, Acts of the 56th Legislature, Regular Session, 1959
275-15   (Article 717m, Vernon's Texas Civil Statutes)].
275-16         SECTION 8.421.  Sections 49.183(d) and (e), Water Code, are
275-17   amended to read as follows:
275-18         (d)  A district's bonds are negotiable instruments within the
275-19   meaning and purposes of the Business & Commerce Code.  A district's
275-20   bonds may be issued and bear interest in accordance with Chapters
275-21   1201, 1204, and 1371, Government Code, and Subchapters A-C, Chapter
275-22   1207, Government Code [Chapter 503, Acts of the 54th Legislature,
275-23   1955 (Article 717k, Vernon's Texas Civil Statutes); Chapter 3, Acts
275-24   of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
275-25   Vernon's Texas Civil Statutes); the Bond Procedures Act of 1981
275-26   (Article 717k-6, Vernon's Texas Civil Statutes); and Chapter 656,
275-27   Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
 276-1   Vernon's Texas Civil Statutes)].  Except for this subsection, this
 276-2   section does not apply to special water authorities or districts
 276-3   described in Section 49.181(h)(4).
 276-4         (e)  Subsections (a) and (b) do not apply to district bonds
 276-5   issued pursuant to Chapter 1371, Government Code [656, Acts of the
 276-6   68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
 276-7   Texas Civil Statutes)].
 276-8         SECTION 8.422.  Sections 66.316 and 66.320, Water Code, are
 276-9   amended to read as follows:
276-10         Sec. 66.316.  REFUNDING BONDS.  Refunding bonds may be issued
276-11   for the purposes and in the manner provided by general law
276-12   including Chapter 1207, Government Code [503, Acts of the 54th
276-13   Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
276-14   Civil Statutes), and Chapter 784, Acts of the 61st Legislature,
276-15   Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
276-16   Statutes)].
276-17         Sec. 66.320.  APPLICATION OF OTHER LAWS.  Bonds of the
276-18   district are considered public securities [bonds] under Chapter
276-19   1201, Government Code [the Bond Procedures Act of 1981 (Article
276-20   717k-6, Vernon's Texas Civil Statutes)].
276-21                  ARTICLE 9.  OTHER CHANGES RELATING TO
276-22                             GOVERNMENT CODE
276-23         SECTION 9.001.  (a)  The heading to Subchapter G, Chapter 24,
276-24   Government Code, is repealed because of the prior repeal of the law
276-25   contained in that subchapter by Chapter 646, Acts of the 71st
276-26   Legislature, Regular Session, 1989.
276-27         (b)  Sections 25.00261, 25.00262, 25.00263, 25.00264,
 277-1   25.00265, and 25.00266, Government Code, are repealed because they
 277-2   are identical to Sections 25.0027, 25.0028, 25.0029, 25.0030,
 277-3   25.0031, and 25.0032, Government Code, as added by Chapter 394,
 277-4   Acts of the 72nd Legislature, Regular Session, 1991, respectively.
 277-5         (c)  Sections 25.0031 and 25.0032, Government Code, as added
 277-6   by Chapter 148, Acts of the 70th Legislature, Regular Session,
 277-7   1987, are renumbered as Sections 25.0041 and 25.0042, Government
 277-8   Code, respectively.
 277-9         (d)  Subsection (i), Section 25.0595, Government Code, as
277-10   amended by Chapters 394 and 746, Acts of the 72nd Legislature,
277-11   Regular Session, 1991, is reenacted to read as follows:
277-12         (i)  Section 25.0027 does not apply to a statutory probate
277-13   court in Dallas County.
277-14         (e)  Subsection (j), Section 25.2512, Government Code, is
277-15   repealed because it duplicates Subsection (g) of that section.
277-16         (f)  Section 25.2651(b), Government Code, is amended to read
277-17   as follows:
277-18         (b)  Except for Sections 25.0009, 25.0010(b), 25.0011,
277-19   25.0030(b) [25.00264(b)], and 25.0031 [25.00265], Subchapters A and
277-20   B apply to a statutory probate court composed of more than one
277-21   county.
277-22         (g)  Section 40.062, Human Resources Code, is amended to read
277-23   as follows:
277-24         Sec. 40.062.  EXEMPTION FROM CERTAIN COSTS AND FEES.  The
277-25   department is not required to pay any cost or fee otherwise imposed
277-26   for court proceedings, including a:
277-27               (1)  filing fee or fee for issuance or service of
 278-1   process imposed by Section 110.002, Family Code, or by Section
 278-2   51.317, 51.318(b)(2), or 51.319, Government Code;
 278-3               (2)  transfer fee imposed by Section 110.002 or
 278-4   110.005, Family Code;
 278-5               (3)  court reporter fee imposed by Section 51.601,
 278-6   Government Code;
 278-7               (4)  judicial fund fee imposed by Sections 51.701 and
 278-8   51.702, Government Code;
 278-9               (5)  judge's fee imposed by Section 25.0008[,
278-10   25.00263,] or 25.0029, Government Code; or
278-11               (6)  cost or security fee imposed by Section 12 or 622,
278-12   Probate Code.
278-13         SECTION 9.0011. Section 25.00255(k), Government Code, is
278-14   amended to correct a reference to read as follows:
278-15         (k)  A party may file a motion for sanctions alleging that
278-16   another party in the case filed a motion for the recusal or
278-17   disqualification of a judge solely to delay the case and without
278-18   sufficient cause. The presiding judge or the judge assigned by the
278-19   presiding judge to hear the motion for recusal may approve a motion
278-20   for sanctions authorized by Rule 215.2(b) [215(2)(b)], Texas Rules
278-21   of Civil Procedure.
278-22         SECTION 9.002. Section 323.017, Government Code, is amended
278-23   to read as follows:
278-24         Sec. 323.017.  CONFIDENTIAL COMMUNICATIONS.  Communications,
278-25   including conversations, correspondence, and electronic
278-26   communications, between a member of the legislature or the
278-27   lieutenant governor and an assistant or employee of the council
 279-1   that relate to a request by the official for information, advice,
 279-2   or opinions from an assistant or employee of the council are
 279-3   confidential.  Information, advice, and opinions given privately by
 279-4   an assistant or employee of the council to a member of the
 279-5   legislature, or the lieutenant governor, acting in the person's
 279-6   [his] official capacity, are confidential.  However, the member or
 279-7   lieutenant governor may choose to disclose all or a part of the
 279-8   communications, information, advice, or opinions to which this
 279-9   section [subsection] applies, and such a disclosure does not
279-10   violate the law of this state.
279-11         SECTION 9.003. Section 402.0212(c), Government Code, is
279-12   amended to correct a reference to read as follows:
279-13         (c)  This section shall not apply to the Texas Turnpike
279-14   Authority division of the Texas Department of Transportation.
279-15         SECTION 9.004.  Section 403.028(a), Government Code, as
279-16   amended by Chapters 1289, 1290, and 1541, Acts of the 76th
279-17   Legislature, Regular Session, 1999, is reenacted to read as
279-18   follows:
279-19         (a)  The comptroller, in consultation with the state
279-20   auditor's office, shall conduct a study each biennium to determine:
279-21               (1)  the number and type of potential fraudulent claims
279-22   for medical or health care benefits submitted:
279-23                     (A)  under the state Medicaid program, including
279-24   the Medicaid managed care program implemented under Chapter 533; or
279-25                     (B)  by or on behalf of a state employee and
279-26   administered by the attorney general under Chapter 501, Labor Code;
279-27   and
 280-1               (2)  the need for changes to the eligibility system
 280-2   used under the state Medicaid program.
 280-3         SECTION 9.005.  (a)  Section 403.302(h), Government Code, as
 280-4   added by Section 1, Chapter 1525, Acts of the 76th Legislature,
 280-5   Regular Session, 1999, is redesignated as Section 403.302(i),
 280-6   Government Code, and amended to conform to Section 403.302(d),
 280-7   Government Code, as amended by Section 1.36, Chapter 396, Acts of
 280-8   the 76th Legislature, Regular Session, 1999, to read as follows:
 280-9         (i) [(h)]  If the comptroller determines in the annual study
280-10   that the market value of property in a school district as
280-11   determined by the appraisal district that appraises property for
280-12   the school district, less the total of the amounts and values
280-13   listed in Subsection (d) as determined by that appraisal district,
280-14   is valid, the comptroller, in determining the taxable value of
280-15   property in the school district under Subsection (d), shall for
280-16   purposes of Subsection (d)(12) [(d)(11)] subtract from the market
280-17   value as determined by the appraisal district of residence
280-18   homesteads to which Section 23.23, Tax Code, applies the amount by
280-19   which that amount exceeds the appraised value of those properties
280-20   as calculated by the appraisal district under Section 23.23, Tax
280-21   Code. If the comptroller determines in the annual study that the
280-22   market value of property in a school district as determined by the
280-23   appraisal district that appraises property for the school district,
280-24   less the total of the amounts and values listed in Subsection (d)
280-25   as determined by that appraisal district, is not valid, the
280-26   comptroller, in determining the taxable value of property in the
280-27   school district under Subsection (d), shall for purposes of
 281-1   Subsection (d)(12) [(d)(11)] subtract from the market value as
 281-2   estimated by the comptroller of residence homesteads to which
 281-3   Section 23.23, Tax Code, applies the amount by which that amount
 281-4   exceeds the appraised value of those properties as calculated by
 281-5   the appraisal district under Section 23.23, Tax Code.
 281-6         (b)  Section 403.302(h), Government Code, as amended by
 281-7   Section 1.36, Chapter 396, Acts of the 76th Legislature, Regular
 281-8   Session, 1999, is redesignated as Section 403.302(j), Government
 281-9   Code, and amended to read as follows:
281-10         (j) [(h)]  For purposes of Section 42.2511, Education Code,
281-11   the comptroller shall certify to the commissioner of education:
281-12               (1)  a final value for each school district computed on
281-13   a residence homestead exemption under Section 1-b(c), Article VIII,
281-14   Texas Constitution, of $5,000; and
281-15               (2)  a final value for each school district computed
281-16   on:
281-17                     (A)  a residence homestead exemption under
281-18   Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
281-19                     (B)  the effect of the additional limitation on
281-20   tax increases under Section 1-b(d), Article VIII, Texas
281-21   Constitution[, as proposed by H.J.R. No. 4, 75th Legislature,
281-22   Regular Session, 1997].
281-23         (c)  Section 403.302(j), Government Code, as added by Section
281-24   1.36, Chapter 396, Acts of the 76th Legislature, Regular Session,
281-25   1999, is redesignated as Section 403.302(k), Government Code.
281-26         SECTION 9.006. Section 493.002(a), Government Code, as
281-27   amended by Chapters 490 and 1360, Acts of the 75th Legislature,
 282-1   Regular  Session,  1997, is amended to properly number subdivisions
 282-2   to read as follows:
 282-3         (a)  The following divisions are within the department:
 282-4               (1)  the community justice assistance division;
 282-5               (2)  the institutional division;
 282-6               (3)  the pardons and paroles division;
 282-7               (4)  the state jail division;  [and]
 282-8               (5)  the internal audit division; and
 282-9               (6) [(5)]  the programs and services division.
282-10         SECTION 9.007. Section 531.001(4), Government Code, as
282-11   amended by Chapters 7 and 1460, Acts of the 76th Legislature,
282-12   Regular Session, 1999, is amended to properly letter paragraphs to
282-13   read as follows:
282-14               (4)  "Health and human services agencies" includes the:
282-15                     (A)  Interagency Council on Early Childhood
282-16   Intervention;
282-17                     (B)  Texas Department on Aging;
282-18                     (C)  Texas Commission on Alcohol and Drug Abuse;
282-19                     (D)  Texas Commission for the Blind;
282-20                     (E)  Texas Commission for the Deaf and Hard of
282-21   Hearing;
282-22                     (F)  Texas Department of Health;
282-23                     (G)  Texas Department of Human Services;
282-24                     (H)  Texas Juvenile Probation Commission;
282-25                     (I)  Texas Department of Mental Health and Mental
282-26   Retardation;
282-27                     (J)  Texas Rehabilitation Commission;
 283-1                     (K)  Department of Protective and Regulatory
 283-2   Services; [and]
 283-3                     (L)  Children's Trust Fund of Texas Council; and
 283-4                     (M) [(L)]  Texas Health Care Information Council.
 283-5         SECTION 9.008.  (a) Section 552.274, Government Code, is
 283-6   amended to codify Sections 1-3, Chapter 428, Acts of the 73rd
 283-7   Legislature, Regular Session, 1993, to read as follows:
 283-8         Sec. 552.274.  REPORTS [REPORT] BY GENERAL SERVICES
 283-9   COMMISSION AND STATE AGENCIES [AGENCY] ON COST OF COPIES.  (a)  The
283-10   General Services Commission shall:
283-11               (1)  biennially update a report prepared by the
283-12   commission about the charges made by state agencies for providing
283-13   copies of public information; and
283-14               (2)  provide a copy of the updated report to each state
283-15   agency not later than March 1 of each even-numbered year.
283-16         (b)  Not later than December 1 of each odd-numbered year,
283-17   each state agency shall provide the General Services Commission
283-18   detailed information, for use by the commission in preparing the
283-19   report required by Subsection (a) [Sections 2(c) and (d), Chapter
283-20   428, Acts of the 73rd Legislature, Regular Session, 1993],
283-21   describing the agency's procedures for charging and collecting fees
283-22   for providing copies of public information.
283-23         (c)  Before the 30th day after the date on which a regular
283-24   session of the legislature convenes, each state agency shall issue
283-25   a report that describes that agency's procedures for charging and
283-26   collecting fees for providing copies of public information.
283-27         (d) [(b)]  In this section, "state agency" has the meaning
 284-1   assigned by Sections 2151.002(2)(A) and (C).
 284-2         (b)  Sections 1-4, Chapter 428, Acts of the 73rd Legislature,
 284-3   Regular Session, 1993, are repealed.
 284-4         SECTION 9.009.  Section 602.002, Government Code, as amended
 284-5   by Chapters 325, 638, and 653, Acts of the 76th Legislature,
 284-6   Regular Session, 1999, is reenacted and amended to read as follows:
 284-7         Sec. 602.002.  OATH MADE IN TEXAS.  An oath made in this
 284-8   state may be administered and a certificate of the fact given by:
 284-9               (1)  a judge or a clerk of a municipal court, in a
284-10   matter pertaining to a duty of the court;
284-11               (2)  a judge, clerk, or commissioner of a court of
284-12   record;
284-13               (3)  a justice of the peace or a clerk of a justice
284-14   court;
284-15               (4)  a notary public;
284-16               (5)  a member of a board or commission created by a law
284-17   of this state, in a matter pertaining to a duty of the board or
284-18   commission;
284-19               (6)  a person employed by the Texas Ethics Commission
284-20   who has a duty related to a report required by Title 15, Election
284-21   Code, in a matter pertaining to that duty;
284-22               (7)  a county tax assessor-collector or an employee of
284-23   the county tax assessor-collector if the oath relates to a document
284-24   that is required or authorized to be filed in the office of the
284-25   county tax assessor-collector;
284-26               (8)  the secretary of state;
284-27               (9)  the lieutenant governor;
 285-1               (10)  the speaker of the house of representatives;
 285-2               (11)  the governor;
 285-3               (12)  the secretary or clerk of a municipality in a
 285-4   matter pertaining to the official business of the municipality; or
 285-5               (13)  a peace officer described by Article 2.12, Code
 285-6   of Criminal Procedure, if:
 285-7                     (A)  the oath is administered when the officer is
 285-8   engaged in the performance of the officer's duties; and
 285-9                     (B)  the administration of the oath relates to
285-10   the officer's duties.
285-11         SECTION 9.010. (a)  Subchapter C, Chapter 2204, Government
285-12   Code, is amended to codify Chapter 306, Acts of the 57th
285-13   Legislature, Regular Session, 1961 (Article 5244a-3, Vernon's Texas
285-14   Civil Statutes), to read as follows:
285-15     SUBCHAPTER C. CONVEYANCE OF STATE HIGHWAY LAND TO UNITED STATES
285-16                     FOR CERTAIN [MILITARY] PURPOSES
285-17         Sec. 2204.201.  APPLICATION OF SUBCHAPTER. This subchapter
285-18   applies only to land or an interest in land owned by this state
285-19   that is under the control of the Texas Department of
285-20   Transportation.
285-21         Sec. 2204.202.  CONVEYANCE TO UNITED STATES FOR MILITARY
285-22   PURPOSES. [(a)]  The governor, on the recommendation of the Texas
285-23   Transportation Commission or on the request of the United States
285-24   supported by the recommendation of the Texas Transportation
285-25   Commission, may convey to the United States an easement or other
285-26   interest in land that:
285-27               (1)  is located near a federally owned or operated
 286-1   military installation or facility; and
 286-2               (2)  may be necessary for the construction, operation,
 286-3   and maintenance of the military installation or facility.
 286-4         Sec. 2204.203.  CONVEYANCE TO UNITED STATES FOR CIVIL WORKS
 286-5   PROJECT. (a)  In this section, "civil works project" means a flood
 286-6   control project, river and harbor improvement project, water
 286-7   conservation project, or other civil works project constructed or
 286-8   to be constructed by the United States.
 286-9         (b)  The governor, on the recommendation of the Texas
286-10   Transportation Commission or on the request of the United States
286-11   supported by the recommendation of the Texas Transportation
286-12   Commission, may convey to the United States or any governmental
286-13   subdivision or agency of this state that is cooperating with the
286-14   United States in a civil works project an easement or other
286-15   interest in land that may be necessary for the construction,
286-16   operation, and maintenance of the civil works project.
286-17         Sec. 2204.204.  CONSIDERATION FOR CONVEYANCE.  A [(b) The]
286-18   conveyance under this subchapter may be made without monetary
286-19   consideration or for a consideration determined by the Texas
286-20   Transportation Commission.
286-21         Sec. 2204.205 [2204.203].  FEE SIMPLE NOT OWNED BY STATE.
286-22   For land for which the fee simple title is not vested in this state
286-23   and for which the owner of the fee executes an easement to the
286-24   United States for the purposes provided by Section 2204.202 or
286-25   2204.203 [2204.202(a)], the governor on the recommendation of the
286-26   Texas Transportation Commission may join in and assent to the
286-27   easement by the same or a separate instrument.
 287-1         (b)  Chapter 2204, Government Code, is amended to codify
 287-2   Chapter 66, Acts of the 41st Legislature, 1st Called Session, 1929
 287-3   (Article 5248a, Vernon's Texas Civil Statutes), Chapter 393, Acts
 287-4   of the 45th Legislature, Regular Session, 1937 (Article 5248b,
 287-5   Vernon's Texas Civil Statutes), and Chapter 3, page 546, Special
 287-6   Laws, Acts of the 46th Legislature, Regular Session, 1939 (Article
 287-7   5248d, Vernon's Texas Civil Statutes), by adding Subchapters G and
 287-8   H to read as follows:
 287-9         SUBCHAPTER G.  CONVEYANCE OF EASEMENT TO UNITED STATES
287-10              FOR LOUISIANA AND TEXAS INTRACOASTAL WATERWAY
287-11         Sec. 2204.601.  CONVEYANCE TO UNITED STATES. (a)  The state
287-12   conveys to the United States an easement to construct and maintain
287-13   the Louisiana and Texas Intracoastal Waterway over and through the
287-14   following described areas:
287-15               (1)  the disconnected portions of the stream beds of
287-16   Mud Bayou and East Bay Bayou from approximately Station 1519 to
287-17   approximately Station 1914 as shown on United States Engineer
287-18   Department map, "Louisiana and Texas Intra-Coastal Waterway, Sabine
287-19   River-Galveston Bay Section, Survey of 1926-7, Sheet No. 12, File
287-20   16-2-16," the portions of the stream beds of Mud Bayou and East Bay
287-21   Bayou covered by this easement being 300 feet wide and located in
287-22   Chambers and Galveston counties where the intracoastal waterway
287-23   intersects the meanderings of the bayous; and
287-24               (2)  the disconnected portions of bays and any tidal
287-25   lands owned by the state within an area 300 feet in width extending
287-26   from the Galveston-Brazoria County line to the nine-foot contour in
287-27   Aransas Bay along the route of the projected Louisiana and Texas
 288-1   Intracoastal Waterway as shown in red on the map, in four sheets,
 288-2   prepared by the United States Engineer Office, Galveston, Texas,
 288-3   entitled "Louisiana and Texas Intracoastal Waterway, Survey of
 288-4   1927-1928," Index Sheets Nos. 1, 2, 3, and 4, File No. 16-4-4, the
 288-5   portions of bays and tidal lands being located in Brazoria,
 288-6   Matagorda, Calhoun, and Aransas counties.
 288-7         (b)  The state conveys to the United States an easement to
 288-8   deposit dredged material during the construction and maintenance of
 288-9   the Louisiana and Texas Intracoastal Waterway in bays and on tidal
288-10   lands owned by the state within 2,000 feet of the area described by
288-11   Subsection (a)(2).
288-12         Sec. 2204.602.  REVERSION TO STATE ON FAILURE TO MAINTAIN. If
288-13   the United States fails at any time to maintain or have maintained
288-14   the Louisiana and Texas Intracoastal Waterway, the easement granted
288-15   under Section 2204.601 terminates and reverts to the state.
288-16         Sec. 2204.603.  PROPERTY RIGHTS NOT AFFECTED. This subchapter
288-17   does not affect or impair:
288-18               (1)  a person's vested right; or
288-19               (2)  the right of a person to use and maintain a bridge
288-20   in existence on May 17, 1929, on or across Mud Bayou or East Bay
288-21   Bayou.
288-22          SUBCHAPTER H.  CONVEYANCE TO UNITED STATES OF AREA IN
288-23         NUECES COUNTY NAVIGATION DISTRICT FOR MILITARY PURPOSES
288-24         Sec. 2204.701.  GRANT OF EASEMENT TO UNITED STATES. The state
288-25   conveys to the United States an easement in an area three square
288-26   miles or larger, or of different form, in the Nueces County
288-27   Navigation District, in Nueces Bay, Nueces County, Texas, as
 289-1   designated by the United States, to erect and maintain a fort,
 289-2   military station or camp, magazine, arsenal, dockyard, barracks,
 289-3   lighthouse, naval yard, naval base, naval air base, naval air
 289-4   station, channel, approach for battleships, or any other necessary
 289-5   military purpose.
 289-6         Sec. 2204.702.  CONVEYANCE OF LAND TO UNITED STATES. On
 289-7   demand from the United States, the governor shall convey to the
 289-8   United States the area described by Section 2204.701 for a purpose
 289-9   described by Section 2204.701.
289-10         Sec. 2204.703.  LIMITATION ON CONVEYANCE. A conveyance under
289-11   this subchapter is subject to the limitations described by Sections
289-12   2204.101-2204.103, Government Code, and Sections 61.115-61.117,
289-13   Water Code.
289-14         Sec. 2204.704.  MINERAL RESERVATION REQUIRED. A grant of an
289-15   easement under this subchapter must reserve to the state all
289-16   minerals, including oil and gas.
289-17         Sec. 2204.705.  REVERSION TO STATE ON NONUSE. If the United
289-18   States no longer uses the area described by Section 2204.701 for a
289-19   purpose described by Section 2204.701 or fails to maintain or to
289-20   have maintained at any time the facilities described by Section
289-21   2204.701, the easement granted under this subchapter terminates and
289-22   reverts to the state.
289-23         (c)  The following laws are repealed:
289-24               (1)  Chapter 306, Acts of the 57th Legislature, Regular
289-25   Session, 1961 (Article 5244a-3, Vernon's Texas Civil Statutes);
289-26               (2)  Chapter 66, Acts of the 41st Legislature, 1st
289-27   Called Session, 1929 (Article 5248a, Vernon's Texas Civil
 290-1   Statutes);
 290-2               (3)  Chapter 393, Acts of the 45th Legislature, Regular
 290-3   Session, 1937 (Article 5248b, Vernon's Texas Civil Statutes); and
 290-4               (4)  Chapter 3, page 546, Special Laws, Acts of the
 290-5   46th Legislature, Regular Session, 1939 (Article 5248d, Vernon's
 290-6   Texas Civil Statutes).
 290-7         SECTION 9.011. Section 2252.004, Government Code, is amended
 290-8   to correct a reference to read as follows:
 290-9         Sec. 2252.004.  CONTRACT INVOLVING FEDERAL FUNDS. This
290-10   subchapter [chapter] does not apply to a contract involving federal
290-11   funds.
290-12         SECTION 9.012. Section 2252.033, Government Code, is amended
290-13   to correct a reference to read as follows:
290-14         Sec. 2252.033.  EXEMPTIONS. This subchapter [chapter] does
290-15   not apply to:
290-16               (1)  a public works contract executed before August 31,
290-17   1981;
290-18               (2)  a public works contract in which the total
290-19   contract price estimate at the time of execution of the contract is
290-20   less than $400,000; or
290-21               (3)  a public works contract made by the Texas
290-22   Department of Transportation under Subchapter A, Chapter 223,
290-23   Transportation Code.
290-24         SECTION 9.013. (a)  Chapter 2252, Government Code, is amended
290-25   to codify Sections 1-5, Chapter 881, Acts of the 73rd Legislature,
290-26   Regular Session, 1993 (Article 601i, Vernon's Texas Civil
290-27   Statutes), by adding Subchapter E to read as follows:
 291-1          SUBCHAPTER E.  PUBLIC CONTRACTS WITH DISADVANTAGED OR
 291-2                  HISTORICALLY UNDERUTILIZED BUSINESSES
 291-3         Sec. 2252.121.  DEFINITIONS. In this subchapter:
 291-4               (1)  "Contractor" means a person who submits a bid for
 291-5   a public contract. The term includes a general contractor, a prime
 291-6   contractor, and a subcontractor.
 291-7               (2)  "Disadvantaged or historically underutilized
 291-8   business" means an entity that meets the definition of a
 291-9   historically underutilized business under Section 2161.001 and in
291-10   which the owners of the business participate in the control,
291-11   operation, and management of the business in a manner proportionate
291-12   to their ownership so that the business is clearly controlled by
291-13   the economically disadvantaged owners.
291-14               (3)  "Governmental entity" means a state agency or
291-15   political subdivision of this state.
291-16               (4)  "Person" means an individual, partnership,
291-17   association, corporation, or other private legal entity.
291-18               (5)  "Political subdivision" means a county,
291-19   municipality, school district, or other special district or
291-20   authority of this state.
291-21               (6)  "Public contract" means a purchasing contract or
291-22   public works contract awarded by a governmental entity.
291-23               (7)  "State agency" means a board, commission, office,
291-24   department, or other agency in the executive, judicial, or
291-25   legislative branch of state government.  The term includes an
291-26   institution of higher education as defined by Section 61.003,
291-27   Education Code.
 292-1         Sec. 2252.122.  APPLICABILITY. This subchapter applies to
 292-2   each public contract entered into by a governmental entity and a
 292-3   contractor in which the contractor claims to be a disadvantaged or
 292-4   a historically underutilized business.
 292-5         Sec. 2252.123.  PROHIBITED ACT.  A contractor may not claim
 292-6   disadvantaged or historically underutilized business status in
 292-7   bidding on a public contract unless the contractor meets the
 292-8   definition of a disadvantaged or historically underutilized
 292-9   business and that contractor will personally execute the terms of
292-10   the contract.
292-11         Sec. 2252.124.  SPECIFIC REQUIREMENTS.  To qualify as a
292-12   contractor claiming disadvantaged or historically underutilized
292-13   business status under this subchapter:
292-14               (1)  the general contractor will perform all of the
292-15   estimating and contract administration functions with the employees
292-16   of that contractor;
292-17               (2)  subcontractors will perform all of their work of
292-18   their trade with their own employees or, if the subcontractor uses
292-19   an employee leasing firm for the purpose of providing salary and
292-20   benefit administration, with employees who in all other respects
292-21   are supervised and perform on the job as if they were employees of
292-22   the subcontractor; and
292-23               (3)  a prime contractor who intends to subcontract
292-24   specific trades may do so if:
292-25                     (A)  the dollar value of the subcontracts does
292-26   not exceed 75 percent of the original value of the contract; and
292-27                     (B)  all work in the trade of the prime
 293-1   contractor is accomplished by employees of that contractor or, if
 293-2   the prime contractor uses an employee leasing firm for the purpose
 293-3   of salary and benefit administration, with employees who in all
 293-4   other respects are supervised and perform on the job as if they
 293-5   were employees of the prime contractor.
 293-6         Sec. 2252.125.  CIVIL PENALTY. (a)  The attorney general or a
 293-7   district, county, or municipal attorney may institute an action in
 293-8   district court to recover a civil penalty against a person who
 293-9   claims disadvantaged or historically underutilized business status
293-10   and a general contractor who knowingly contracts with a person
293-11   claiming the disadvantaged or historically underutilized business
293-12   status in violation of Section 2252.123.
293-13         (b)  A civil penalty imposed under this section may not
293-14   exceed $1,000 for each violation and may not exceed $100,000, in
293-15   the aggregate, for all violations arising from a single action.
293-16   Each day a violation occurs constitutes a separate violation for
293-17   purposes of imposing the penalty.
293-18         (c)  A civil penalty recovered in an action brought by the
293-19   attorney general shall be deposited in the state treasury.  A civil
293-20   penalty recovered in an action brought by a political subdivision
293-21   shall be deposited in the general fund of that political
293-22   subdivision.
293-23         (d)  A civil penalty imposed under this section is in
293-24   addition to any other criminal, civil, or administrative penalty
293-25   that may be imposed by the state or a political subdivision and to
293-26   which a person in violation of Section 2252.123 may be liable.
293-27         (b)  Sections 1-5, Chapter 881, Acts of the 73rd Legislature,
 294-1   Regular Session, 1993 (Article 601i, Vernon's Texas Civil
 294-2   Statutes), are repealed.
 294-3         SECTION 9.014. (a)  Section 2308.102(a), Government Code, is
 294-4   amended to conform to Section 2.06(b), Workforce and Economic
 294-5   Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 294-6   Statutes), as amended by Section 53, Chapter 260, Acts of the 74th
 294-7   Legislature, Regular Session, 1995, to read as follows:
 294-8         (a)  The council shall assume the duty to:
 294-9               (1)  develop, with the assistance of each appropriate
294-10   state agency, recommend to the governor, and report to the
294-11   legislature state plans required by applicable federal law in order
294-12   for the state to receive federal funds;
294-13               (2)  make policy recommendations to the governor and
294-14   the legislature on goals and priorities for formula and
294-15   discretionary funds for all applicable programs;
294-16               (3)  participate directly in the development of the
294-17   state plan for career and technology education, as required by law,
294-18   and recommend the plan to the Texas Education Agency;
294-19               (4)  ensure that general revenue funds previously
294-20   available to the Texas Literacy Council are used to support the
294-21   efforts of local literacy councils in a manner consistent with the
294-22   state strategic plan;
294-23               (5)  recommend to the State Board for Career and
294-24   Technology [of Vocational] Education the division of federal funds
294-25   between secondary and postsecondary educational agencies under the
294-26   Carl D. Perkins Vocational and Applied Technology Education Act (20
294-27   U.S.C. Section 2301 et seq.);   and
 295-1               (6)  make recommendations to the Texas Workforce
 295-2   Commission on unemployment insurance issues pertinent to the
 295-3   responsibilities of the council.
 295-4         (b)  Section 53, Chapter 260, Acts of the 74th Legislature,
 295-5   Regular Session, 1995, is repealed.
 295-6         SECTION 9.015. Section 54, Chapter 260, Acts of the 74th
 295-7   Legislature, Regular Session, 1995, is repealed to conform to
 295-8   Section 19.16, Chapter 165, Acts of the 75th Legislature, Regular
 295-9   Session, 1997.
295-10         SECTION 9.016. (a)  Section 2308.301, Government Code, is
295-11   amended to conform to Section 4.055(a), Workforce and Economic
295-12   Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
295-13   Statutes), as added by Section 4.04, Chapter 655, Acts of the 74th
295-14   Legislature, Regular Session, 1995, to read as follows:
295-15         Sec. 2308.301.  DEFINITIONS [DEFINITION]. In this subchapter:
295-16               (1)  "Board"[, "board"] means a local workforce
295-17   development board.
295-18               (2)  "Commission" means the Texas Workforce Commission.
295-19         (b)  Subchapter G, Chapter 2308, Government Code, is amended
295-20   by adding Section 2308.3036 to conform to Sections 4.055(b)-(e),
295-21   Workforce and Economic Competitiveness Act (Article 5190.7a,
295-22   Vernon's Texas Civil Statutes), as added by Section 4.04, Chapter
295-23   655, Acts of the 74th Legislature, Regular Session, 1995, to read
295-24   as follows:
295-25         Sec. 2308.3036.  DEMONSTRATION PROJECTS. (a)  In addition to
295-26   performing the functions under Sections 2308.302 and 2308.303 and
295-27   adopting the local plan required under Section 2308.304, each board
 296-1   may establish and operate localized programs to expand education,
 296-2   training, and employment in the workforce development area
 296-3   administered by the board.  The board may design creative programs
 296-4   that fit the unique characteristics and needs of its workforce
 296-5   development area.
 296-6         (b)  A board that designs a program under this section shall
 296-7   submit a written proposal for approval of the program to the
 296-8   commission.  The commission shall approve any program that clearly
 296-9   demonstrates the ability to:
296-10               (1)  draw on and unite the resources of the local
296-11   community; and
296-12               (2)  determine and meet the needs of the local service
296-13   populations, businesses, and industries.
296-14         (c)  A board shall implement and administer a program
296-15   approved by the commission under this section as a local
296-16   demonstration project.  The board shall report to the commission
296-17   quarterly regarding the administration of the project and the
296-18   effectiveness of the project in serving the workforce development
296-19   needs of the community.
296-20         (d)  A board shall submit any proposed changes in the program
296-21   to the commission in writing.  The commission must approve the
296-22   proposed changes before the changes may be adopted and implemented
296-23   by the board.
296-24         (c)  Subchapter G, Chapter 2308, Government Code,  is amended
296-25   by adding Section 2308.3037 to conform to Section 4.057, Workforce
296-26   and Economic Competitiveness Act (Article 5190.7a, Vernon's Texas
296-27   Civil Statutes), as added by Section 4.04, Chapter 655, Acts of the
 297-1   74th Legislature, Regular Session, 1995, to read as follows:
 297-2         Sec. 2308.3037.  DEMONSTRATION PROJECT ACCOUNT. (a)  The
 297-3   local workforce development board demonstration project fund
 297-4   account is a revolving fund account established in the state
 297-5   treasury that may be used only for:
 297-6               (1)  loans for the initial implementation costs of a
 297-7   demonstration project approved under Section 2308.3036; and
 297-8               (2)  small loans for new education, training, and
 297-9   employment programs established by a board under a demonstration
297-10   project.
297-11         (b)  The revolving fund account consists of:
297-12               (1)  money appropriated to the account by the
297-13   legislature;
297-14               (2)  donations made to the account;
297-15               (3)  repayment of a small loan made under the
297-16   provisions of a demonstration project;
297-17               (4)  money received under a state or federal education,
297-18   training, and job program; and
297-19               (5)  depository interest and investment income earned
297-20   on the account.
297-21         (c)  Money drawn from the revolving fund account for the
297-22   operation of education, training, and job programs shall be paid
297-23   back to the account as permanent revenues from state or federal
297-24   education, training, and job programs become available.
297-25         (d)  Subchapter G, Chapter 2308, Government Code, is amended
297-26   by adding Section 2308.3038 to conform to Section 4.056, Workforce
297-27   and Economic Competitiveness Act (Article 5190.7a, Vernon's Texas
 298-1   Civil Statutes), as added by Section 4.04, Chapter 655, Acts of the
 298-2   74th Legislature, Regular Session, 1995, to read as follows:
 298-3         Sec. 2308.3038.  CERTAIN PROGRAMS FOR TANF RECIPIENTS. (a)
 298-4   In this section, "JOBS training program" means the job
 298-5   opportunities and basic skills training program under Part F,
 298-6   Subchapter IV, Social Security Act (42 U.S.C. Section 682), or a
 298-7   successor program.
 298-8         (b)  In addition to the programs established under Section
 298-9   2308.3036, each board shall adopt programs to enhance the ability
298-10   of recipients of financial assistance and services under Chapter
298-11   31, Human Resources Code, who are eligible to participate in the
298-12   JOBS training program or a successor program to obtain and retain
298-13   gainful employment.  On the request of a board, the commission
298-14   shall provide technical assistance to the board in adopting
298-15   programs under this section.
298-16         (c)  In adopting programs under this section, the board shall
298-17   consider the programs adopted under Section 31.0126, Human
298-18   Resources Code.  Within the parameters established by that section,
298-19   the board may adopt a program to serve more effectively the needs
298-20   of the recipients described by Subsection (b) who are residing in
298-21   the workforce development area.
298-22         (d)  The commission must approve a program adopted by a board
298-23   under this section, including a program adopted under Section
298-24   31.0126, Human Resources Code, before the board may implement the
298-25   program in the workforce development area.
298-26         (e)  Section 4.04, Chapter 655, Acts of the 74th Legislature,
298-27   Regular Session, 1995, is repealed.
 299-1         SECTION 9.017. Chapter 363, Acts of the 42nd Legislature,
 299-2   Regular Session, 1931 (Article 678a, Vernon's Texas Civil
 299-3   Statutes), is repealed as obsolete.
 299-4                    ARTICLE 10.  CHANGES RELATING TO
 299-5                         HEALTH AND SAFETY CODE
 299-6         SECTION 10.0001. Section 81.169(f), Health and Safety Code,
 299-7   is amended to correct a reference to read as follows:
 299-8         (f)  The Texas Rules of [Civil] Evidence apply to the hearing
 299-9   unless the rules are inconsistent with this chapter.
299-10         SECTION 10.001. Section 170.001(3), Health and Safety Code,
299-11   is amended to more accurately reflect the law from which it was
299-12   derived to read as follows:
299-13               (3)  "Viable" means the stage of fetal development
299-14   when, in the medical judgment of the attending physician based on
299-15   the particular facts of the case, an unborn child possesses the
299-16   capacity to live outside its mother's womb after its premature
299-17   birth from any cause.  The term does not include a fetus whose
299-18   biparietal diameter is less than 60 millimeters.
299-19         SECTION 10.0011.  Sections 242.049(d) and (e), Health and
299-20   Safety Code, are amended to correct references to read as follows:
299-21         (d)  The collection, compilation, and analysis of the
299-22   information and any reports produced from these sources shall be
299-23   done in a manner that protects the privacy of any individual about
299-24   whom information is given and is explicitly confidential.  The
299-25   department shall protect and maintain the confidentiality of the
299-26   information.  The information received by the department, any
299-27   information compiled as a result of review of internal agency
 300-1   documents, and any reports, compilations, and analyses produced
 300-2   from these sources shall not be available for public inspection or
 300-3   disclosure, nor are these sources public records within the meaning
 300-4   of Chapter 552, Government Code.  The information and any
 300-5   compilations, reports, or analyses produced from the information
 300-6   shall not be subject to discovery, subpoena, or other means of
 300-7   legal compulsion for release to any person or entity except as
 300-8   provided in this section and shall not be admissible in any civil,
 300-9   administrative, or criminal proceeding.  This privilege shall be
300-10   recognized by Rules 501 and 502 of the Texas Rules of [Civil]
300-11   Evidence [and the Texas Rules of Criminal Evidence].
300-12         (e)  The information and reports, compilations, and analyses
300-13   developed by the department for quality improvement shall be used
300-14   only for the evaluation and improvement of quality care in nursing
300-15   homes.  No department proceeding or record shall be subject to
300-16   discovery, subpoena, or other means of legal compulsion for release
300-17   to any person or entity, and shall not be admissible in any civil,
300-18   administrative, or criminal proceeding.  This privilege shall be
300-19   recognized by Rules 501 and 502 of the Texas Rules of [Civil]
300-20   Evidence [and the Texas Rules of Criminal Evidence].
300-21         SECTION 10.002. Section 382.058, Health and Safety Code, as
300-22   amended by Chapters 391 and 406, Acts of the 76th Legislature,
300-23   Regular Session, 1999, is reenacted and amended to correct the
300-24   heading and a reference to read as follows:
300-25         Sec. 382.058.  NOTICE OF AND HEARING ON CONSTRUCTION OF
300-26   CONCRETE PLANT UNDER PERMIT BY RULE, STANDARD PERMIT, OR EXEMPTION
300-27   [PROVISIONS RELATING TO PERMITS BY RULE OR STANDARD PERMITS FOR
 301-1   COMMISSION EXEMPTION FOR CONSTRUCTION OF CERTAIN CONCRETE PLANTS].
 301-2   (a)  A person may not begin construction on any concrete plant that
 301-3   performs wet batching, dry batching, or central mixing under a
 301-4   standard permit under Section 382.05195 or a permit by rule adopted
 301-5   by the commission under Section 382.05196 unless the person has
 301-6   complied with the notice and opportunity for hearing provisions
 301-7   under Section 382.056.
 301-8         (b)  This section does not apply to a concrete plant located
 301-9   temporarily in the right-of-way, or contiguous to the right-of-way,
301-10   of a public works project.
301-11         (c)  For purposes of this section, only those persons
301-12   actually residing in a permanent residence within 440 yards of the
301-13   proposed plant may request a hearing under Section 382.056
301-14   [382.056(d)] as a person who may be affected.
301-15         (d)  If the commission considers air dispersion modeling
301-16   information in the course of adopting an exemption under Section
301-17   382.057 for a concrete plant that performs wet batching, dry
301-18   batching, or central mixing, the commission may not require that a
301-19   person who qualifies for the exemption conduct air dispersion
301-20   modeling before beginning construction of a concrete plant, and
301-21   evidence regarding air dispersion modeling may not be submitted at
301-22   a hearing under Section 382.056.
301-23         SECTION 10.003. Section 401.383(a), Health and Safety Code,
301-24   is amended to more accurately reflect the law from which it was
301-25   derived to read as follows:
301-26         (a)  A person commits an offense if the person intentionally
301-27   or knowingly receives, processes, concentrates, stores, transports,
 302-1   or disposes of low-level radioactive waste without a license issued
 302-2   under this chapter.
 302-3         SECTION 10.0031. Section 462.067(d), Health and Safety Code,
 302-4   is amended to correct a reference to read as follows:
 302-5         (d)  The Texas Rules of Civil Procedure and Texas Rules of
 302-6   [Civil] Evidence apply to a hearing unless the rules are
 302-7   inconsistent with this chapter.  The hearing is on the record, and
 302-8   the state must prove each issue by clear and convincing evidence.
 302-9         SECTION 10.004. Section 502.020, Health and Safety Code, as
302-10   added by Chapters 1332 and 1501, Acts of the 76th Legislature,
302-11   Regular Session, 1999, is reenacted to read as follows:
302-12         Sec. 502.020.  WORKPLACE SAFETY FOR INMATES.  A person
302-13   imprisoned in a facility operated by or for the Texas Department of
302-14   Criminal Justice is not an employee for the purposes of this
302-15   chapter.  The Texas Department of Criminal Justice shall provide a
302-16   person imprisoned in a facility operated by or for the Texas
302-17   Department of Criminal Justice the protections from exposure to
302-18   hazardous chemicals in the workplace as provided for in this
302-19   chapter.
302-20         SECTION 10.005. (a)  The heading of Subchapter A, Chapter
302-21   535, Health and Safety Code, is repealed.
302-22         (b)  Section 535.001, Health and Safety Code, is amended to
302-23   correct a reference to read as follows:
302-24         Sec. 535.001. DEFINITIONS. In this chapter [subchapter]:
302-25               (1)  "Assistance" means a subsidy granted by the
302-26   department to provide support services to a client.
302-27               (2)  "Client" means a person with a mental disability
 303-1   who lives independently or a family who receives assistance under
 303-2   this chapter [subchapter].
 303-3               (3)  "Family" means a group that consists of a person
 303-4   with a mental disability and that person's parent, sibling, spouse,
 303-5   child, or legal guardian.  The group may include others.
 303-6               (4)  "Legal guardian" means a person appointed by a
 303-7   court of competent jurisdiction to exercise powers over a person
 303-8   with a mental disability.
 303-9               (5)  "Mental illness" has the meaning assigned by
303-10   Section 571.003.
303-11               (6)  "Mental retardation" has the meaning assigned by
303-12   Section 591.003.
303-13               (7)  "Other support programs" means:
303-14                     (A)  all forms of local, state, or federal
303-15   support services other than assistance;
303-16                     (B)  contract programs; or
303-17                     (C)  support services provided by public or
303-18   private funds for persons with mental disabilities or their
303-19   families.
303-20               (8)  "Parent" means a natural, foster, surrogate, or
303-21   adoptive parent.
303-22               (9)  "Person with a mental disability" means:
303-23                     (A)  a person with mental illness;
303-24                     (B)  a person with mental retardation;
303-25                     (C)  a person with a pervasive developmental
303-26   disorder; or
303-27                     (D)  a person younger than four years of age who
 304-1   is eligible for early childhood intervention services.
 304-2               (10)  "Pervasive developmental disorder" means a
 304-3   disorder that begins in childhood and that meets the criteria for a
 304-4   pervasive developmental disorder established in the Diagnostic and
 304-5   Statistical Manual, Edition III-R.
 304-6         (c)  Section 535.002, Health and Safety Code, is amended to
 304-7   correct a reference to read as follows:
 304-8         Sec. 535.002.  ADOPTION OF RULES AND IMPLEMENTATION OF
 304-9   PROGRAM. (a)  The department shall adopt rules, procedures,
304-10   guidelines, and standards to implement and administer this chapter
304-11   [subchapter], including:
304-12               (1)  procedures and guidelines for determining
304-13   eligibility standards relating to financial qualifications and the
304-14   need for services and for determining eligibility criteria for
304-15   selecting clients;
304-16               (2)  standards and procedures for approving qualified
304-17   programs and support services;
304-18               (3)  procedures for conducting a periodic review of
304-19   clients;
304-20               (4)  procedures and guidelines for determining when
304-21   assistance duplicates other support programs or results in
304-22   excessive support to a client;
304-23               (5)  rules establishing reasonable payment rates for
304-24   qualified programs and support services under this chapter
304-25   [subchapter]; and
304-26               (6)  rules establishing a copayment system in
304-27   accordance with Section 535.009.
 305-1         (b)  If feasible and economical, the department may use local
 305-2   mental health and mental retardation authorities to implement this
 305-3   chapter [subchapter].  However, the department may not designate
 305-4   those local mental health and mental retardation authorities as the
 305-5   sole providers of services if other providers are available.
 305-6         (d)  Sections 535.003(e) and (f), Health and Safety Code, are
 305-7   amended to correct a reference to read as follows:
 305-8         (e)  In determining eligibility for support services under
 305-9   this chapter [subchapter], the department shall determine if the
305-10   applicant is eligible to receive the services from other support
305-11   programs and may deny the application if it determines that the
305-12   applicant is eligible to receive services that are available from
305-13   another support program.  If the department denies the application,
305-14   the department shall provide to the applicant information on and
305-15   referral to the appropriate support program.
305-16         (f)  A local or state agency may not consider assistance
305-17   received under this chapter [subchapter] in determining eligibility
305-18   for another support program unless that consideration is required
305-19   by federal regulations.
305-20         (e)  Section 535.005, Health and Safety Code, is amended to
305-21   correct a reference to read as follows:
305-22         Sec. 535.005.  SUPPORT SERVICES FOR CERTAIN CLIENTS. The
305-23   department may contract with the Texas Department of Human Services
305-24   to provide support services to clients of the Texas Department of
305-25   Human Services who are mentally disabled and eligible to receive
305-26   assistance under this chapter [subchapter].
305-27         (f)  Section 535.006, Health and Safety Code, is amended to
 306-1   correct a reference to read as follows:
 306-2         Sec. 535.006.  LIMITATION OF DUTY. The department's duty to
 306-3   provide assistance under this chapter [subchapter] is determined
 306-4   and limited by the funds specifically appropriated to administer
 306-5   this chapter [subchapter].
 306-6         (g)  Section 535.011, Health and Safety Code, is amended to
 306-7   correct a reference to read as follows:
 306-8         Sec. 535.011.  CLIENT RESPONSIBILITY FOR PAYMENT. Each client
 306-9   shall pay:
306-10               (1)  the client's required copayment; and
306-11               (2)  the amount of charges in excess of the amount the
306-12   department establishes for the service or the amount incurred in
306-13   excess of the maximum amount of assistance authorized by this
306-14   chapter [subchapter] to be provided by the department.
306-15         (h)  Section 535.014(a), Health and Safety Code, is amended
306-16   to correct a reference to read as follows:
306-17         (a)  A person commits an offense if the person, in obtaining
306-18   or attempting to obtain assistance under this chapter [subchapter]
306-19   for himself or another person:
306-20               (1)  makes or causes to be made a statement or
306-21   representation the person knows to be false; or
306-22               (2)  solicits or accepts any assistance for which the
306-23   person knows he, or the person for whom the solicitation is made,
306-24   is not eligible.
306-25         SECTION 10.006. Section 574.031(e), Health and Safety Code,
306-26   is amended to correct a reference to read as follows:
306-27         (e)  The Texas Rules of [Civil] Evidence apply to the hearing
 307-1   unless the rules are inconsistent with this subtitle.
 307-2         SECTION 10.007. Section 593.050(d), Health and Safety Code,
 307-3   is amended to correct a reference to read as follows:
 307-4         (d)  The Texas Rules of [Civil] Evidence apply.  The results
 307-5   of the determination of mental retardation and the current
 307-6   interdisciplinary team report and recommendations shall be
 307-7   presented in evidence.
 307-8         SECTION 10.008.  Section 773.091(e), Health and Safety Code,
 307-9   is amended to correct a reference to read as follows:
307-10         (e)  Notwithstanding Rule 501, Texas Rules of [Criminal]
307-11   Evidence, [and Rule 501, Texas Rules of Civil Evidence,] the
307-12   privilege of confidentiality may be claimed in any criminal, civil,
307-13   or administrative proceeding and may be claimed by the patient or
307-14   the emergency medical services personnel or physician acting on the
307-15   patient's behalf.
307-16             Article 11. Changes Relating to Insurance Code
307-17         SECTION 11.001. Chapter 30, Insurance Code, is amended to
307-18   reflect the proposed enactment of Titles 6, 7, and 8, Insurance
307-19   Code, and to conform to the usage of certain terminology in those
307-20   titles to read as follows:
307-21                     CHAPTER 30.  GENERAL PROVISIONS
307-22         Sec. 30.001.  PURPOSE OF TITLES 2, 6, 7, AND 8 [TITLE].  (a)
307-23   This title and Titles 6, 7, and 8 are [is] enacted as a part of the
307-24   state's continuing statutory revision program, begun by the Texas
307-25   Legislative Council in 1963 as directed by the legislature in the
307-26   law codified as Section 323.007, Government Code.  The program
307-27   contemplates a topic-by-topic revision of the state's general and
 308-1   permanent statute law without substantive change.
 308-2         (b)  Consistent with the objectives of the statutory revision
 308-3   program, the purpose of this title and Titles 6, 7, and 8 is to
 308-4   make the law encompassed by the titles [this title] more accessible
 308-5   and understandable by:
 308-6               (1)  rearranging the statutes into a more logical
 308-7   order;
 308-8               (2)  employing a format and numbering system designed
 308-9   to facilitate citation of the law and to accommodate future
308-10   expansion of the law;
308-11               (3)  eliminating repealed, duplicative,
308-12   unconstitutional, expired, executed, and other ineffective
308-13   provisions; and
308-14               (4)  restating the law in modern American English to
308-15   the greatest extent possible.
308-16         Sec. 30.002.  CONSTRUCTION [OF TITLE].  Except as provided by
308-17   Section 30.003 and as otherwise expressly provided in this code,
308-18   Chapter 311, Government Code (Code Construction Act), applies to
308-19   the construction of each provision in this title and in Titles 6,
308-20   7, and 8 [except as otherwise expressly provided by this title].
308-21         Sec. 30.003.  DEFINITION OF PERSON.  The definition of
308-22   "person" assigned by Section 311.005, Government Code, does not
308-23   apply to any provision in this title or in Title 6, 7, or 8.
308-24         Sec. 30.004.  REFERENCE IN LAW TO STATUTE REVISED BY TITLE 2,
308-25   6, 7, OR 8.  A reference in a law to a statute or a part of a
308-26   statute revised by this title or by Title 6, 7, or 8 is considered
308-27   to be a reference to the part of this code [title] that revises
 309-1   that statute or part of that statute.
 309-2         SECTION 11.002. Sections 82.002(b) and (c), Insurance Code,
 309-3   are amended to more accurately reflect the law from which they were
 309-4   derived to read as follows:
 309-5         (b)  This chapter also applies to:
 309-6               (1)  an agent of an entity described by Subsection (a);
 309-7   and
 309-8               (2)  an individual or a corporation, association,
 309-9   partnership, or other artificial [a] person who:
309-10                     (A)  is engaged in the business of insurance;
309-11                     (B)  holds an authorization; or
309-12                     (C)  is regulated by the commissioner.
309-13         (c)  The commissioner's authority under this chapter applies
309-14   to each form of authorization and each person or entity holding an
309-15   authorization.
309-16         SECTION 11.003. Section 83.001(3), Insurance Code, is amended
309-17   to more accurately reflect the law from which it was derived to
309-18   read as follows:
309-19               (3)  "Unauthorized person" means an individual or a
309-20   corporation, association, partnership, or other artificial [a]
309-21   person who directly or indirectly does an act of insurance business
309-22   that is:
309-23                     (A)  described by Section 101.051 or 101.052; and
309-24                     (B)  not done in accordance with specific
309-25   authorization of law.
309-26         SECTION 11.004. Section 83.002(b), Insurance Code, is amended
309-27   to more accurately reflect the law from which it was derived to
 310-1   read as follows:
 310-2         (b)  This chapter also applies to:
 310-3               (1)  an agent of an entity described by Subsection (a);
 310-4   and
 310-5               (2)  an individual or a corporation, association,
 310-6   partnership, or other artificial [a] person who:
 310-7                     (A)  is engaged in the business of insurance;
 310-8                     (B)  holds a permit, certificate, registration,
 310-9   license, or other authority under this code; or
310-10                     (C)  is regulated by the commissioner.
310-11         SECTION 11.005. Section 101.001(c), Insurance Code, is
310-12   amended to more accurately reflect the law from which it was
310-13   derived to read as follows:
310-14         (c)  The purpose of this chapter is to subject certain
310-15   insurers and [other] persons to the jurisdiction of:
310-16               (1)  the commissioner and proceedings before the
310-17   commissioner; and
310-18               (2)  the courts of this state in suits by or on behalf
310-19   of the state or an insured or beneficiary under an insurance
310-20   contract.
310-21         SECTION 11.006.  Section 101.051(b), Insurance Code, is
310-22   amended to more accurately reflect the law from which it was
310-23   derived to read as follows:
310-24         (b)  The following acts in this state constitute the business
310-25   of insurance in this state:
310-26               (1)  making or proposing to make, as an insurer, an
310-27   insurance contract;
 311-1               (2)  making or proposing to make, as guarantor or
 311-2   surety, a guaranty or suretyship contract as a vocation and not
 311-3   merely incidental to another legitimate business or activity of the
 311-4   guarantor or surety;
 311-5               (3)  taking or receiving an insurance application;
 311-6               (4)  receiving or collecting any consideration for
 311-7   insurance, including:
 311-8                     (A)  a premium;
 311-9                     (B)  a commission;
311-10                     (C)  a membership fee;
311-11                     (D)  an assessment; or
311-12                     (E)  dues;
311-13               (5)  issuing or delivering an insurance contract to:
311-14                     (A)  a resident of this state; or
311-15                     (B)  a person authorized to do business in this
311-16   state;
311-17               (6)  directly or indirectly acting as an agent for or
311-18   otherwise representing or assisting an insurer or [other] person
311-19   in:
311-20                     (A)  soliciting, negotiating, procuring, or
311-21   effectuating insurance or a renewal of insurance;
311-22                     (B)  disseminating information relating to
311-23   coverage or rates;
311-24                     (C)  forwarding an insurance application;
311-25                     (D)  delivering an insurance policy or contract;
311-26                     (E)  inspecting a risk;
311-27                     (F)  setting a rate;
 312-1                     (G)  investigating or adjusting a claim or loss;
 312-2                     (H)  transacting a matter after the effectuation
 312-3   of the contract that arises out of the contract; or
 312-4                     (I)  representing or assisting an insurer or
 312-5   [other] person in any other manner in the transaction of insurance
 312-6   with respect to a subject of insurance that is resident, located,
 312-7   or to be performed in this state;
 312-8               (7)  contracting to provide in this state
 312-9   indemnification or expense reimbursement for a medical expense by
312-10   direct payment, reimbursement, or otherwise to a person domiciled
312-11   in this state or for a risk located in this state, whether as an
312-12   insurer, agent, administrator, trust, or funding mechanism or by
312-13   another method;
312-14               (8)  doing any kind of insurance business specifically
312-15   recognized as constituting insurance business within the meaning of
312-16   statutes relating to insurance;
312-17               (9)  doing or proposing to do any insurance business
312-18   that is in substance equivalent to conduct described by
312-19   Subdivisions (1)-(8) in a manner designed to evade statutes
312-20   relating to insurance; or
312-21               (10)  any other transaction of business in this state
312-22   by an insurer.
312-23         SECTION 11.007.  Section 101.052, Insurance Code, is amended
312-24   to more accurately reflect the law from which it was derived to
312-25   read as follows:
312-26         Sec. 101.052.  ADVERTISING RELATING TO MEDICARE SUPPLEMENT
312-27   POLICIES.  With respect to a Medicare supplement policy authorized
 313-1   under Article 3.74, the business of insurance in this state
 313-2   includes using, creating, publishing, mailing, or disseminating in
 313-3   this state an advertisement relating to an act that constitutes the
 313-4   business of insurance under Section 101.051 unless the
 313-5   advertisement is used, created, published, mailed, or disseminated
 313-6   on behalf of an insurer or [other] person who:
 313-7               (1)  is authorized under this code to engage in the
 313-8   business of insurance in this state;
 313-9               (2)  has actual knowledge of the content of the
313-10   advertisement;
313-11               (3)  has authorized the advertisement to be used,
313-12   created, published, mailed, or disseminated on that insurer's or
313-13   [other] person's behalf; and
313-14               (4)  is clearly identified by name in the advertisement
313-15   as the sponsor of the advertisement.
313-16         SECTION 11.008.  Section 101.053(b), Insurance Code, is
313-17   amended to more accurately reflect the law from which it was
313-18   derived to read as follows:
313-19         (b)  Sections 101.051 and 101.052 do not apply to:
313-20               (1)  the lawful transaction of surplus lines insurance
313-21   under Article 1.14-2;
313-22               (2)  the lawful transaction of reinsurance by insurers;
313-23               (3)  a transaction in this state that:
313-24                     (A)  involves a policy that:
313-25                           (i)  is lawfully solicited, written, and
313-26   delivered outside this state; and
313-27                           (ii)  covers, at the time the policy is
 314-1   issued, only subjects of insurance that are not resident, located,
 314-2   or expressly to be performed in this state; and
 314-3                     (B)  takes place after the policy is issued;
 314-4               (4)  a transaction:
 314-5                     (A)  that involves an insurance contract
 314-6   independently procured through negotiations occurring entirely
 314-7   outside this state;
 314-8                     (B)  that is reported; and
 314-9                     (C)  on which premium tax is paid in accordance
314-10   with this chapter;
314-11               (5)  a transaction in this state that:
314-12                     (A)  involves group life, health, or accident
314-13   insurance, other than credit insurance, and group annuities in
314-14   which the master policy for the group was lawfully issued and
314-15   delivered in a state in which the insurer or [other] person was
314-16   authorized to do insurance business; and
314-17                     (B)  is authorized by a statute of this state;
314-18               (6)  a management or accounting activity in this state
314-19   on behalf of a nonadmitted captive insurance company that insures
314-20   solely directors' and officers' liability insurance for:
314-21                     (A)  the directors and officers of the company's
314-22   parent and affiliated companies;
314-23                     (B)  the risks of the company's parent and
314-24   affiliated companies; or
314-25                     (C)  both the individuals and entities described
314-26   by Paragraphs (A) and (B);
314-27               (7)  the issuance of a qualified charitable gift
 315-1   annuity under Chapter 102; or
 315-2               (8)  a lawful transaction by a servicing company of the
 315-3   Texas workers' compensation employers' rejected risk fund under
 315-4   Section 4.08, Article 5.76-2, as that article existed before its
 315-5   repeal.
 315-6         SECTION 11.009.  Section 101.151, Insurance Code, is amended
 315-7   to more accurately reflect the law from which it was derived to
 315-8   read as follows:
 315-9         Sec. 101.151.  POWERS OF COMMISSIONER; NOTICE OF HEARING. (a)
315-10   The commissioner may set a hearing on whether to issue a cease and
315-11   desist order under Section 101.153 if the commissioner has reason
315-12   to believe that:
315-13               (1)  an insurer or [other] person has violated or is
315-14   threatening to violate this chapter or a rule adopted under this
315-15   chapter; or
315-16               (2)  an insurer or [other] person acting in violation
315-17   of this chapter has engaged in or is threatening to engage in an
315-18   unfair act.
315-19         (b)  The commissioner shall serve on the insurer or [other]
315-20   person a statement of charges and a notice of hearing in the form
315-21   provided by Section 2001.052, Government Code, and applicable rules
315-22   of the commissioner.
315-23         SECTION 11.010.  Section 101.153, Insurance Code, is amended
315-24   to more accurately reflect the law from which it was derived to
315-25   read as follows:
315-26         Sec. 101.153.  CEASE AND DESIST ORDER.  After a hearing held
315-27   under this subchapter, the commissioner may issue against the
 316-1   insurer or [other] person charged with a violation an order that
 316-2   requires that the insurer or [other] person immediately cease and
 316-3   desist from the violation.
 316-4         SECTION 11.011.  Section 101.154, Insurance Code, is amended
 316-5   to more accurately reflect the law from which it was derived to
 316-6   read as follows:
 316-7         Sec. 101.154.  ENFORCEMENT; REFERRAL TO ATTORNEY GENERAL.
 316-8   The commissioner may refer the matter to the attorney general for
 316-9   enforcement if the commissioner has reason to believe that an
316-10   insurer or [other] person has:
316-11               (1)  violated a cease and desist order issued under
316-12   this subchapter; or
316-13               (2)  failed to pay an assessed penalty.
316-14         SECTION 11.012.  Section 101.201(b), Insurance  Code, is
316-15   amended to more accurately reflect the law from which it was
316-16   derived to read as follows:
316-17         (b)  This section does not apply to [:]
316-18               [(1)]  insurance procured by a licensed surplus lines
316-19   agent from an eligible surplus lines insurer as defined by Article
316-20   1.14-2 and [:]
316-21                     [(A)  that is reported; and]
316-22                     [(B)  on which premium tax is paid in accordance
316-23   with Article 1.14-2; or]
316-24               [(2)  an] independently procured contracts [contract]
316-25   of insurance, as described in Section 101.053(b)(4), [:]
316-26                     [(A)]  that are [is] reported[;]  and
316-27                     [(B)]  on which premium tax is paid in accordance
 317-1   with this chapter or Article 1.14-2.
 317-2         SECTION 11.013.  Section 101.202, Insurance Code, is amended
 317-3   to more accurately reflect the law from which it was derived to
 317-4   read as follows:
 317-5         Sec. 101.202.  ATTORNEY'S FEES.  (a)  In an action against an
 317-6   unauthorized insurer or [other] unauthorized person on a contract
 317-7   of insurance issued or delivered in this state to a resident of
 317-8   this state or to a corporation authorized to do business in this
 317-9   state, the court may award to the plaintiff a reasonable attorney's
317-10   fee if:
317-11               (1)  the insurer or [other] person failed, for at least
317-12   30 days after a demand made before the commencement of the action,
317-13   to make payment under the contract's terms; and
317-14               (2)  the failure to make the payment was vexatious and
317-15   without reasonable cause.
317-16         (b)  An insurer's or [other] person's failure to defend an
317-17   action described by Subsection (a) is prima facie evidence that the
317-18   failure to make payment was vexatious and without reasonable cause.
317-19         SECTION 11.014.  (a)  Section 101.252, Insurance Code, is
317-20   amended to conform to Section 2.04, Chapter 1467, Acts of the 76th
317-21   Legislature, Regular Session, 1999, and Section 1, Chapter 852,
317-22   Acts of the 76th Legislature, Regular Session, 1999, to read as
317-23   follows:
317-24         Sec. 101.252.  INDEPENDENTLY PROCURED INSURANCE TAX.  (a)  In
317-25   this section, "premium" includes any consideration for insurance,
317-26   including:
317-27               (1)  a premium;
 318-1               (2)  a membership fee; or
 318-2               (3)  dues.
 318-3         (b)  Except as provided by Subsection (g) [(f)], an insured
 318-4   who procures insurance in accordance with Section 101.053(b)(4), or
 318-5   another person designated by the insured, shall:
 318-6               (1)  file a report with the comptroller; and
 318-7               (2)  pay an independently procured insurance tax of
 318-8   4.85 percent.
 318-9         (c) [(b)]  If a policy covers risks or exposures only
318-10   partially located in this state, the tax payable is computed on the
318-11   portion of the premium that is properly allocated to a risk or
318-12   exposure located in this state.
318-13         (d) [(c)]  An insured who fails to withhold from the premium
318-14   the amount of tax imposed under this section is liable for the
318-15   amount of the tax and shall pay the tax to the comptroller within
318-16   the time described by Subsection (e) [(d)].
318-17         (e) [(d)]  Except as provided by Section 101.253, the report
318-18   and tax are due on or before:
318-19               (1)  May 15 [March 1] following the calendar year in
318-20   which the insurance was procured, continued, or renewed; or
318-21               (2)  another date specified by the comptroller.
318-22         (f) [(e)]  This section does not abrogate or modify any other
318-23   provision of this chapter.
318-24         (g) [(f)]  This section does not apply to premiums for
318-25   individual life or individual disability insurance.
318-26         (b)  Section 2.04, Chapter 1467, Acts of the 76th
318-27   Legislature, Regular Session, 1999, and Section 1, Chapter 852,
 319-1   Acts of the 76th Legislature, Regular Session, 1999, are repealed. 
 319-2         SECTION 11.015.  (a)  Chapter 102, Insurance Code, is amended
 319-3   to conform to Sections 1 and 2, Chapter 551, Acts of the 76th
 319-4   Legislature, Regular Session, 1999, by adding Subchapter D to read
 319-5   as follows:
 319-6     SUBCHAPTER D.  EFFECT OF CHARITABLE GIFT ANNUITY IN LITIGATION
 319-7                      AND CERTAIN OTHER PROCEEDINGS
 319-8         Sec. 102.151.  IMMUNITY.  Any person or entity involved in
 319-9   the issuance of a qualified charitable gift annuity shall have
319-10   immunity from suit, including both a defense to liability and the
319-11   right not to bear the cost, burden, and risk of discovery and
319-12   trial, as to any claim brought by or on behalf of the donor or the
319-13   donor's heirs or distributees alleging that the issuance of a
319-14   charitable gift annuity constitutes engaging in the business of
319-15   insurance in this state.  An interlocutory appeal may be taken if a
319-16   court denies or otherwise fails to grant a motion for summary
319-17   judgment that is based on an assertion of the immunity provided in
319-18   this section.
319-19         Sec. 102.152.  TREATMENT OF ANNUITY AS CHARITABLE GIFT
319-20   ANNUITY; ESTOPPEL.  In any litigation or other proceeding brought
319-21   by or on behalf of a donor or the donor's heirs or distributees, an
319-22   annuity that the donor has treated as a charitable gift annuity in
319-23   a filing with the United States Internal Revenue Service shall be
319-24   considered to be a charitable gift annuity issued by a charitable
319-25   organization, as described by Subchapters A and B and Section
319-26   101.053(b).
319-27         (b)  Sections 1 and 2, Chapter 551, Acts of the 76th
 320-1   Legislature, Regular Session, 1999, are repealed.
 320-2                 ARTICLE 12.  CHANGES RELATING TO LOCAL
 320-3                             GOVERNMENT CODE
 320-4                     PART 1.  ORGANIZATIONAL CHANGES
 320-5         SECTION 12.001. The following changes are made to Subtitle B,
 320-6   Title 5, Local Government Code, for organizational purposes:
 320-7               (1)  Chapter 170, Local Government Code, is added to
 320-8   Subtitle B with a chapter heading to read "CHAPTER 170.
 320-9   MISCELLANEOUS PROVISIONS AFFECTING COUNTY OFFICERS AND EMPLOYEES";
320-10   and
320-11               (2)  Section 240.906, Local Government Code, as added
320-12   by Chapter 644, Acts of the 76th Legislature, Regular Session,
320-13   1999, is redesignated as Section 170.001, Local Government Code.
320-14         SECTION 12.002.  The following changes are made to Subtitle
320-15   A, Title 7, Local Government Code, for organizational purposes:
320-16               (1)  Subchapter A, Chapter 230, Local Government Code,
320-17   is redesignated as Subchapter E, Chapter 212, Local Government
320-18   Code, and:
320-19                     (A)  the sections in the redesignated subchapter,
320-20   Sections 230.001-230.006, are redesignated as Sections
320-21   212.131-212.136; and
320-22                     (B)  the reference in the redesignated Section
320-23   212.134 to "Section 230.003" is changed to "Section 212.133";
320-24               (2)  Chapter 219, Local Government Code, is
320-25   redesignated as Chapter 213, Local Government Code, and the
320-26   sections in the redesignated chapter, Sections 219.001-219.005, are
320-27   redesignated as Sections 213.001-213.005;
 321-1               (3)  the heading of Chapter 214, Local Government Code,
 321-2   is changed to "CHAPTER 214.  MUNICIPAL REGULATION OF HOUSING AND
 321-3   OTHER STRUCTURES";
 321-4               (4)  existing Chapter 213, Local Government Code, is
 321-5   redesignated as Subchapter D, Chapter 214, Local Government Code,
 321-6   and:
 321-7                     (A)  the heading of the redesignated subchapter
 321-8   is changed to "SUBCHAPTER D.  BUILDING LINES";
 321-9                     (B)  the sections in the redesignated subchapter,
321-10   Sections 213.001-213.006, are redesignated as Sections
321-11   214.131-214.136;
321-12                     (C)  the references in the redesignated Sections
321-13   214.131 and 214.133 to "chapter" are changed to "subchapter"; and
321-14                     (D)  the reference in the redesignated Section
321-15   214.136(a) to "Section 213.004(b)(2)" is changed to "Section
321-16   214.134(b)(2)";
321-17               (5)  Subchapter B, Chapter 230, Local Government Code,
321-18   is redesignated as Subchapter E, Chapter 214, Local Government
321-19   Code, and the sections in the redesignated subchapter, Sections
321-20   230.011-230.018, are redesignated as Sections 214.161-214.168;
321-21               (6)  Chapter 218, Local Government Code, is
321-22   redesignated as Subchapter F, Chapter 214, Local Government Code,
321-23   and:
321-24                     (A)  the heading of the redesignated subchapter
321-25   is changed to "SUBCHAPTER F.  BURGLAR ALARM SYSTEMS";
321-26                     (B)  the sections in the redesignated subchapter,
321-27   Sections 218.001-218.007, are redesignated as Sections
 322-1   214.191-214.197; and
 322-2                     (C)  the reference in the redesignated Section
 322-3   214.191 to "chapter" is changed to "subchapter";
 322-4               (7)  Section 215.005, Local Government Code, is
 322-5   redesignated as Section 214.903, Local Government Code;
 322-6               (8)  the heading of Chapter 215, Local Government Code,
 322-7   is changed to "CHAPTER 215.  MUNICIPAL REGULATION OF BUSINESSES AND
 322-8   OCCUPATIONS";
 322-9               (9)  Chapter 230, Local Government Code, is
322-10   redesignated as Chapter 229, Local Government Code; and
322-11               (10)  Section 215.001, Local Government Code, is
322-12   redesignated as Section 229.001, Local Government Code, and the
322-13   reference in Section 342.003(b), Local Government Code, to "Section
322-14   215.001" is changed to "Section 229.001".
322-15         SECTION 12.003. The following changes are made to Subtitle B,
322-16   Title 7, Local Government Code, for organizational purposes:
322-17               (1)  the heading of Chapter 233, Local Government Code,
322-18   is changed to "CHAPTER 233.  COUNTY REGULATION OF HOUSING AND OTHER
322-19   STRUCTURES";
322-20               (2)  Chapter 239, Local Government Code, is
322-21   redesignated as Subchapter A, Chapter 233, Local Government Code,
322-22   and:
322-23                     (A)  the heading of the redesignated subchapter
322-24   is changed to "SUBCHAPTER A. DANGEROUS STRUCTURES"; and
322-25                     (B)  the section in the redesignated subchapter,
322-26   Section 239.001, is redesignated as Section 233.001;
322-27               (3)  Sections 233.001-233.007, Local Government Code,
 323-1   are designated as Subchapter B, Chapter 233, Local Government Code,
 323-2   and are redesignated as Sections 233.031-233.037 and:
 323-3                     (A)  a heading for the subchapter is added to
 323-4   read "SUBCHAPTER B.  BUILDING AND SETBACK LINES";
 323-5                     (B)  the references in the redesignated Sections
 323-6   233.031(a), 233.032(b), 233.034(a) and (b), 233.035(d), and 233.036
 323-7   to "chapter" are changed to "subchapter"; and
 323-8                     (C)  the reference in the redesignated Section
 323-9   233.035(e) to "Subsection (c) of Section 233.004" is changed to
323-10   "Section 233.034(c)";
323-11               (4)  Chapter 235, Local Government Code, is
323-12   redesignated as Subchapter C, Chapter 233, Local Government Code,
323-13   and:
323-14                     (A)  the heading of the redesignated subchapter
323-15   is changed to "SUBCHAPTER C.  FIRE CODE IN UNINCORPORATED AREA";
323-16                     (B)  the sections in the redesignated subchapter,
323-17   Sections 235.001-235.007, are redesignated as Sections
323-18   233.061-233.067;
323-19                     (C)  the references in redesignated Sections
323-20   233.063(a) and (d), 233.064(a), (d), and (e), and 233.065 to
323-21   "chapter" are changed to "subchapter";
323-22                     (D)  the reference in the redesignated Section
323-23   233.063(a) to "Section 235.002(a)" is changed to "Section
323-24   233.062(a)"; and
323-25                     (E)  the reference in the redesignated Section
323-26   233.067(b) to "Section 235.005(c)" is changed to "Section
323-27   233.065(c)";
 324-1               (5)  Chapter 237, Local Government Code, is
 324-2   redesignated as Subchapter D, Chapter 233, Local Government Code,
 324-3   and:
 324-4                     (A)  the heading of the redesignated subchapter
 324-5   is changed to "SUBCHAPTER D.  ALARM SYSTEMS";
 324-6                     (B)  the sections in the redesignated subchapter,
 324-7   Sections 237.001-237.007, are redesignated as Sections
 324-8   233.091-233.097; and
 324-9                     (C)  the references in redesignated Sections
324-10   233.091, 233.092(a), 233.093, 233.094, 233.095, and 233.096(a) to
324-11   "chapter" are changed to "subchapter";
324-12               (6)  Chapter 238, Local Government Code, is
324-13   redesignated as Chapter 234, Local Government Code, and:
324-14                     (A)  the heading of the redesignated chapter is
324-15   changed to "CHAPTER 234.  COUNTY REGULATION OF BUSINESSES AND
324-16   OCCUPATIONS";
324-17                     (B)  the sections in the redesignated chapter,
324-18   Sections 238.001-238.004, are designated as Subchapter A, Chapter
324-19   234, Local Government Code, and are redesignated as Sections
324-20   234.001-234.004;
324-21                     (C)  a heading for the subchapter is added to
324-22   read "SUBCHAPTER A.  CERTAIN OUTDOOR BUSINESSES"; and
324-23                     (D)  the references in the redesignated Sections
324-24   234.001, 234.003, and 234.004(a) to "chapter" are changed to
324-25   "subchapter";
324-26               (7)  Subchapter D, Chapter 240, Local Government Code,
324-27   is redesignated as Subchapter B, Chapter 234, Local Government
 325-1   Code, and:
 325-2                     (A)  the heading of the redesignated subchapter
 325-3   is changed to "SUBCHAPTER B.  SLAUGHTERERS";
 325-4                     (B)  the sections in the redesignated subchapter,
 325-5   Sections 240.061-240.067, are redesignated as Sections
 325-6   234.031-234.037; and
 325-7                     (C)  the reference in the redesignated Sections
 325-8   234.032 and 234.035 to "chapter" are changed to "subchapter";
 325-9               (8)  Chapter 236, Local Government Code, is
325-10   redesignated as Chapter 235, Local Government Code, and:
325-11                     (A)  the heading of the redesignated chapter is
325-12   changed to "CHAPTER 235.  COUNTY REGULATION OF MATTERS RELATING TO
325-13   EXPLOSIVES AND WEAPONS";
325-14                     (B)  the sections in the redesignated chapter,
325-15   Sections 236.001-236.006, are designated as Subchapter A, Chapter
325-16   235, Local Government Code, and are redesignated as Sections
325-17   235.001-235.006;
325-18                     (C)  a heading for the subchapter is added to
325-19   read "SUBCHAPTER A.  EXPLOSIVES"; and
325-20                     (D)  the references in the redesignated Sections
325-21   235.001, 235.002, 235.003(a)-(c), 235.004, 235.005, and 235.006(a)
325-22   to "chapter" are changed to "subchapter";
325-23               (9)  Subchapter B, Chapter 240, Local Government Code,
325-24   is redesignated as Subchapter B, Chapter 235, Local Government
325-25   Code, and:
325-26                     (A)  the heading of the redesignated subchapter
325-27   is changed to "SUBCHAPTER B. FIREARMS"; and
 326-1                     (B)  the sections in the redesignated chapter,
 326-2   Sections 240.021-240.025, are redesignated as Sections
 326-3   235.021-235.025;
 326-4               (10)  Subchapter C, Chapter 240, Local Government Code,
 326-5   is redesignated as Subchapter C, Chapter 235, Local Government
 326-6   Code, and:
 326-7                     (A)  the heading of the redesignated subchapter
 326-8   is changed to "SUBCHAPTER C.  BOWS AND ARROWS"; and
 326-9                     (B)  the sections in the redesignated chapter,
326-10   Sections 240.041-240.045, are redesignated as Sections
326-11   235.041-235.045; and
326-12               (11)  existing Chapter 234, Local Government Code, is
326-13   redesignated as Subchapter B, Chapter 240, Local Government Code,
326-14   and:
326-15                     (A)  the heading of the redesignated subchapter
326-16   is changed to "SUBCHAPTER B.  OUTDOOR LIGHTING NEAR OBSERVATORIES";
326-17                     (B)  the sections in the redesignated subchapter,
326-18   Sections 234.001-234.005, are redesignated as Sections
326-19   240.031-240.035; and
326-20                     (C)  the references in the redesignated Sections
326-21   240.031, 240.032(d), 240.034, and 240.035(a) and (b) to "chapter"
326-22   are changed to "subchapter".
326-23         SECTION 12.004. The following changes are made to Chapter
326-24   352, Local Government Code, for organizational purposes:
326-25               (1)  Subchapter C is added to Chapter 352 with a
326-26   subchapter heading to read "SUBCHAPTER C.  FIREWORKS", and Section
326-27   240.904, Local Government Code, is made a part of Subchapter C and
 327-1   is redesignated as Section 352.051, Local Government Code; and
 327-2               (2)  Subchapter D is added to Chapter 352 with a
 327-3   subchapter heading to read "SUBCHAPTER D.  OUTDOOR BURNING", and
 327-4   Section 240.906, Local Government Code, as added by Chapter 1435,
 327-5   Acts of the 76th Legislature, Regular Session, 1999, is made a part
 327-6   of Subchapter D and is redesignated as Section 352.081, Local
 327-7   Government Code.
 327-8                     PART 2.  OTHER CHANGES RELATING
 327-9                        TO LOCAL GOVERNMENT CODE
327-10         SECTION 12.101. Sections 43.032, 43.0566, 43.133, 43.134,
327-11   43.135, and 43.904, Local Government Code, are repealed as
327-12   obsolete.
327-13         SECTION 12.102. Section 43.079, Local Government Code, is
327-14   amended to clarify a reference to read as follows:
327-15         Sec. 43.079.  CONSENT REQUIREMENT FOR ANNEXATION OF AREA IN
327-16   CERTAIN CONSERVATION AND RECLAMATION DISTRICTS. (a)  This section
327-17   applies only to a conservation and reclamation district, including
327-18   a municipal utility district, that:
327-19               (1)  is located wholly in more than one municipality,
327-20   but on April 1, 1971, was not wholly in more than one municipality;
327-21               (2)  was created or exists under Section 59, Article
327-22   XVI, Texas Constitution;
327-23               (3)  provides or has provided a fresh water supply,
327-24   sanitary sewer services, and drainage services; and
327-25               (4)  was not, on April 1, 1971, a party to a contract
327-26   providing for a federal grant for research and development under 33
327-27   U.S.C. Sections 1155(a)(2) and (d).
 328-1         (b)  A municipality that has annexed area in the district
 328-2   [described by Section 43.077(a)] is not required to obtain the
 328-3   consent of any municipality to annex additional area located wholly
 328-4   in the district other than the consent of the other municipalities
 328-5   that have annexed area in the district and have extraterritorial
 328-6   jurisdiction over the area proposed to be annexed.
 328-7         SECTION 12.103. Section 113.007, Local Government Code, is
 328-8   repealed to conform to Section 5, Chapter 402, Acts of the 74th
 328-9   Legislature, Regular Session, 1995.
328-10         SECTION 12.1031. Section 141.009(a), Local Government Code,
328-11   is amended to correct a reference to read as follows:
328-12         (a)  In this chapter, "member of the fire department" means
328-13   an employee of the fire department who is defined as "fire
328-14   protection personnel" by Section 419.021 [416.001], Government
328-15   Code[, as amended by S.B. 223, Acts of the 71st Legislature,
328-16   Regular Session, 1989].
328-17         SECTION 12.1032. Section 142.010(a), Local Government Code,
328-18   is amended to correct a reference to read as follows:
328-19         (a)  In this chapter, "member of the fire department" means
328-20   an employee of the fire department who is defined as "fire
328-21   protection personnel" by Section 419.021 [416.001], Government
328-22   Code[, as amended by S.B. 223, Acts of the 71st Legislature,
328-23   Regular Session, 1989].
328-24         SECTION 12.104. Section 214.0011(f), Local Government Code,
328-25   is amended to correct a reference to read as follows:
328-26         (f)  A municipality has the same authority to assess expenses
328-27   under this section as it has to assess expenses under Section
 329-1   214.001(n) [214.001(f)].  A lien is created under this section in
 329-2   the same manner that a lien is created under Section 214.001(n)
 329-3   [214.001(f)] and is subject to the same conditions as a lien
 329-4   created under that section.
 329-5         SECTION 12.105. Section 214.0015(b), Local Government Code,
 329-6   is amended to correct a reference to read as follows:
 329-7         (b)  In addition to the authority granted to the municipality
 329-8   by Section 214.001, after the expiration of the time allotted under
 329-9   Section 214.001(d) [214.001(c)] or (e) [(d)] for the repair,
329-10   removal, or demolition of a building, the municipality may:
329-11               (1)  repair the building at the expense of the
329-12   municipality and assess the expenses on the land on which the
329-13   building stands or to which it is attached and may provide for that
329-14   assessment, the mode and manner of giving notice, and the means of
329-15   recovering the repair expenses; or
329-16               (2)  assess a civil penalty against the property owner
329-17   for failure to repair, remove, or demolish the building and provide
329-18   for that assessment, the mode and manner of giving notice, and the
329-19   means of recovering the assessment.
329-20         SECTION 12.106. Sections 214.003(b) and (d), Local Government
329-21   Code, are amended to correct a reference to read as follows:
329-22         (b)  Except as provided by Subsection (c), the court may
329-23   appoint as a receiver for the property a nonprofit organization
329-24   with a demonstrated record of rehabilitating residential properties
329-25   if the court finds that:
329-26               (1)  the structures on the property are in violation of
329-27   the standards set forth in Section 214.001(b) and an ordinance
 330-1   described by Subsection (a);
 330-2               (2)  notice of violation was given to the record owner
 330-3   of the property; and
 330-4               (3)  a public hearing as required by Section 214.001(d)
 330-5   [214.001(c)] has been conducted.
 330-6         (d)  For the purposes of this section, if the record owner
 330-7   does not appear at the hearing required by Section 214.001(d)
 330-8   [214.001(c)], the hearing shall be conducted as if the owner had
 330-9   personally appeared.
330-10         SECTION 12.107. Section 214.101(c), Local Government Code, is
330-11   amended to correct a reference to read as follows:    
330-12         (c)  A municipality may require the owner of the property on
330-13   which the swimming pool or enclosure or fence is situated, after
330-14   notice and hearing as provided in Sections 214.001(d) [214.001(c)]
330-15   and (e) [(d)], to repair, replace, secure, or otherwise remedy an
330-16   enclosure or fence of a swimming pool that the municipality or an
330-17   appropriate municipal official, agent, or employee determines
330-18   violates the minimum standards adopted under this subchapter.
330-19         SECTION 12.108. Section 214.902, Local Government Code, is
330-20   amended to correct a reference to read as follows:    
330-21         Sec. 214.902.  RENT CONTROL. (a)  The governing body of a
330-22   municipality may, by ordinance, establish rent control if:
330-23               (1)  the governing body finds that a housing emergency
330-24   exists due to a disaster as defined by Section 418.004, Government
330-25   Code [4(1), Texas Disaster Act of 1975 (Article 6889-7, Vernon's
330-26   Texas Civil Statutes)]; and
330-27               (2)  the governor approves the ordinance.
 331-1         (b)  The governing body shall continue or discontinue rent
 331-2   control in the same manner that the governor continues or
 331-3   discontinues a state of disaster under Section 418.014, Government
 331-4   Code [5(d), Texas Disaster Act of 1975].
 331-5         SECTION 12.109. (a)  Section 272.001(j), Local Government
 331-6   Code, as added by Section 1 of Chapter 296 and Section 1 of Chapter
 331-7   451, Acts of the 76th Legislature, Regular Session, 1999, is
 331-8   reenacted to read as follows:
 331-9         (j)  A political subdivision may donate, exchange, convey,
331-10   sell, or lease land, improvements, or any other interest in real
331-11   property to an institution of higher education, as that term is
331-12   defined by Section 61.003, Education Code, to promote a public
331-13   purpose related to higher education.  The political subdivision
331-14   shall determine the terms and conditions of the transaction so as
331-15   to effectuate and maintain the public purpose.  A political
331-16   subdivision may donate, exchange, convey, sell, or lease the real
331-17   property interest for less than its fair market value and without
331-18   complying with the notice and bidding requirements of Subsection
331-19   (a).
331-20         (b)  Section 272.001(j), Local Government Code, as added by
331-21   Section 43, Chapter 405, Acts of the 76th Legislature, Regular
331-22   Session, 1999, is redesignated as Section 272.001(k).
331-23         SECTION 12.110. Section 383.027, Local Government Code, is
331-24   amended and reenacted to conform to Section 1, Chapter 1199, Acts
331-25   of the 75th Legislature, Regular Session, 1997, to read as follows:
331-26         Sec. 383.027.  GRANTING OR REFUSING PETITION. (a)  After the
331-27   hearing, if the commissioners court finds that the petition
 332-1   conforms to the requirements of Section 383.022 and that the
 332-2   creation of the district and the proposed project is feasible and
 332-3   necessary and would serve the public purpose of attracting visitors
 332-4   or [and] tourists to the county, the commissioners court may
 332-5   [shall] make that finding and enter an order creating the district.
 332-6         (b)  The order creating the district may specify the cost to
 332-7   the county of publishing notice and conducting hearings for the
 332-8   creation of the district together with the cost of conducting the
 332-9   confirmation and sales and use tax election.  The county may
332-10   require the petitioner to pay to the county the amounts specified
332-11   in the order creating the district at the time the order becomes
332-12   final.
332-13         (c) [(b)]  If the commissioners court finds that the petition
332-14   does not conform to the requirements of Section 383.022 or that the
332-15   creation of the district and the proposed project is not feasible
332-16   and necessary and would not serve the purpose of attracting
332-17   visitors and tourists to the county, the commissioners court shall
332-18   make that finding in an order and deny the petition.
332-19         SECTION 12.111. The following are repealed as executed law:
332-20               (1)  Chapter 129, Acts of the 71st Legislature, Regular
332-21   Session, 1989 (Article 974c-8, Vernon's Texas Civil Statutes);
332-22               (2)  Chapter 136, Acts of the 70th Legislature, Regular
332-23   Session, 1987 (Article 974d-36, Vernon's Texas Civil Statutes);
332-24               (3)  Article 974d-37, Revised Statutes;
332-25               (4)  Chapter 128, Acts of the 71st Legislature, Regular
332-26   Session, 1989 (Article 974d-38, Vernon's Texas Civil Statutes);
332-27               (5)  Article 974d-39, Revised Statutes;
 333-1               (6)  Article 974d-40, Revised Statutes;
 333-2               (7)  Article 974d-42, Revised Statutes;
 333-3               (8)  Article 974d-43, Revised Statutes;
 333-4               (9)  Article 974d-44, Revised Statutes;
 333-5               (10)  Chapter 676, Acts of the 70th Legislature,
 333-6   Regular Session, 1987 (Article 1174f, Vernon's Texas Civil
 333-7   Statutes); and
 333-8               (11)  Chapter 680, Acts of the 71st Legislature,
 333-9   Regular Session, 1989 (Article 1174g, Vernon's Texas Civil
333-10   Statutes).
333-11         ARTICLE 13.  CHANGES RELATING TO NATURAL RESOURCES CODE
333-12         SECTION 13.001. (a)  The Natural Resources Code is amended to
333-13   codify Chapter 793, Acts of the 73rd Legislature, Regular Session,
333-14   1993 (Article 4413(47f), Vernon's Texas Civil Statutes), by adding
333-15   Title 13 to read as follows:
333-16                       TITLE 13.  ENERGY RESEARCH
333-17             CHAPTER 251.  TEXAS ENERGY COORDINATION COUNCIL
333-18                    SUBCHAPTER A.  GENERAL PROVISIONS
333-19         Sec. 251.001.  DEFINITIONS. In this chapter:
333-20               (1)  "Coordinating board" means the Texas Higher
333-21   Education Coordinating Board.
333-22               (2)  "Council" means the Texas Energy Coordination
333-23   Council.
333-24               (3)  "Postsecondary educational institution" means an
333-25   institution of higher education as defined by Section 61.003,
333-26   Education Code, or a private or independent college or university
333-27   that is accredited by a recognized accrediting agency, as defined
 334-1   by that section.
 334-2               (4)  "State agency" means a department, commission,
 334-3   board, office, council, or other agency in the executive or
 334-4   judicial branch of state government that is created by the
 334-5   constitution, a statute of this state, or an executive order
 334-6   dealing with or involved in energy-related research and
 334-7   development, including:
 334-8                     (A)  the Railroad Commission of Texas;
 334-9                     (B)  the Public Utility Commission of Texas;
334-10                     (C)  the General Land Office;
334-11                     (D)  the state energy conservation office of the
334-12   General Services Commission;
334-13                     (E)  the coordinating board;
334-14                     (F)  the Texas Science and Technology Council;
334-15   and
334-16                     (G)  each river authority of this state.
334-17         Sec. 251.002.  EFFECT ON STATE AGENCY'S ABILITY TO OBTAIN
334-18   FEDERAL MONEY.  This chapter does not hinder a state agency's
334-19   ability to obtain federal money.
334-20            (Sections 251.003-251.050 reserved for expansion
334-21                SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
334-22         Sec. 251.051.  COMPOSITION. (a)  The Texas Energy
334-23   Coordination Council is a state agency.
334-24         (b)  The following members serve on the council by virtue of
334-25   their positions:
334-26               (1)  a representative from Texas Tech University to be
334-27   designated by the president of the university;
 335-1               (2)  the director of the Energy System Laboratory of
 335-2   Texas A&M University;
 335-3               (3)  the director of the Center for Energy Studies at
 335-4   The University of Texas at Austin;
 335-5               (4)  the director of the Energy Laboratory of the
 335-6   University of Houston; and
 335-7               (5)  the director of the Alternative Energy Institute
 335-8   of West Texas A&M University.
 335-9         (c)  The governor shall appoint the following members to
335-10   serve on the council:
335-11               (1)  a representative of the natural gas industry;
335-12               (2)  a representative of the oil industry;
335-13               (3)  a representative of the alternative fuels
335-14   industry;
335-15               (4)  a representative of the Texas Sustainable Energy
335-16   Development Council or renewable energy industry;
335-17               (5)  a representative of the electric utility industry;
335-18               (6)  a representative of industrial energy consumers;
335-19   and
335-20               (7)  a representative of an energy consumer
335-21   organization or environmental organization.
335-22         (d)  A postsecondary educational institution that eliminates
335-23   an entity whose director serves on the council shall name a
335-24   representative to serve on the council who holds a position at the
335-25   institution that:
335-26               (1)  is related to the mission of the council; and
335-27               (2)  is of a level similar to the level of the position
 336-1   of director of the eliminated entity.
 336-2         Sec. 251.052.  TERMS; VACANCY.  (a)  Appointed members serve
 336-3   for staggered terms of two years, with the terms of three members
 336-4   expiring December 31 of each year.
 336-5         (b)  If an appointed member of the council vacates the
 336-6   member's position on the council, the governor shall appoint a
 336-7   person with similar qualifications to fill the unexpired portion of
 336-8   the term.
 336-9         Sec. 251.053.  OFFICERS.  (a)  The members of the council
336-10   shall annually elect a presiding officer of the council.
336-11         (b)  The council may elect other officers it considers
336-12   necessary.
336-13         Sec. 251.054.  MEETINGS.  The council shall meet at least
336-14   once each calendar quarter and at other times at the call of the
336-15   presiding officer.
336-16         Sec. 251.055.  COMPENSATION; EXPENSES. (a)  A member of the
336-17   council may not receive compensation for service performed for the
336-18   council.
336-19         (b)  A member is entitled to reimbursement for actual and
336-20   necessary expenses incurred in performing services as a member of
336-21   the council, subject to any applicable limitation provided by the
336-22   General Appropriations Act.
336-23         Sec. 251.056.  STAFF.  The council may:
336-24               (1)  employ staff; or
336-25               (2)  with the entity's consent, use the staff of:
336-26                     (A)  the coordinating board;
336-27                     (B)  a participating postsecondary educational
 337-1   institution; or
 337-2                     (C)  a nonprofit research organization or
 337-3   association.
 337-4         Sec. 251.057.  CONFLICTS OF INTEREST.  The council may not
 337-5   employ:
 337-6               (1)  a person required to register under Chapter 305,
 337-7   Government Code; or
 337-8               (2)  a member of the legislature.
 337-9         Sec. 251.058.  APPLICATION OF SUNSET ACT.  The Texas Energy
337-10   Coordination Council is subject to Chapter 325, Government Code
337-11   (Texas Sunset Act). Unless continued in existence as provided by
337-12   that chapter, the council is abolished September 1, 2001.
337-13            (Sections 251.059-251.100 reserved for expansion
337-14                    SUBCHAPTER C.  POWERS AND DUTIES
337-15         Sec. 251.101.  POWERS. (a)  The council may:
337-16               (1)  encourage research collaborations and coordinate
337-17   information sharing among state agencies, postsecondary educational
337-18   institutions, and nonprofit research organizations or associations;
337-19               (2)  encourage projects that propose innovative,
337-20   collaborative efforts:
337-21                     (A)  among state agencies, postsecondary
337-22   educational institutions, or nonprofit research organizations or
337-23   associations; or
337-24                     (B)  between a postsecondary educational
337-25   institution or nonprofit research organization or association and
337-26   private industry;
337-27               (3)  conduct public relations activities concerning the
 338-1   activities of the council;
 338-2               (4)  develop computer software to facilitate the
 338-3   discharge of the council's duties;
 338-4               (5)  establish a clearinghouse of energy research
 338-5   information that is accessible to all state agencies, postsecondary
 338-6   educational institutions, and nonprofit research organizations or
 338-7   associations;
 338-8               (6)  contract or cooperate with the federal government
 338-9   or private research entities;
338-10               (7)  promote and conduct technical seminars on energy
338-11   research;
338-12               (8)  provide information to the public on energy
338-13   research;
338-14               (9)  meet and coordinate with each institution of
338-15   higher education's federal funds coordinator designated under
338-16   Section 772.009(f), Government Code;
338-17               (10)  to implement this chapter, enter into memoranda
338-18   of understanding with state agencies, postsecondary educational
338-19   institutions, and nonprofit research organizations or associations;
338-20               (11)  adopt rules for the administration of this
338-21   chapter;
338-22               (12)  engage in other activities consistent with this
338-23   chapter;
338-24               (13)  request that any state agency submit any
338-25   energy-related research programs for prior approval; and
338-26               (14)  review energy-related grant applications.
338-27         (b)  The council may obtain from other state agencies
 339-1   appropriate information needed to implement Subsection (a)(5).
 339-2         Sec. 251.102.  DUTIES.  The council shall:
 339-3               (1)  establish an institute for building energy
 339-4   efficiency throughout this state;
 339-5               (2)  promote the efficient use of renewable resources;
 339-6               (3)  advise and assist the legislature in developing
 339-7   plans, programs, cost-benefit analyses, financial models, and
 339-8   proposed legislation in regard to energy policy and the improved
 339-9   use of energy resources in this state;
339-10               (4)  determine the long-range needs, assess potential
339-11   problems, assess the interrelation between energy and the
339-12   environment, and recommend policy priorities for the energy sector
339-13   in this state;
339-14               (5)  biennially submit to the governor, the Senate
339-15   Natural Resources Committee, and the House Energy Resources
339-16   Committee a report detailing the actions necessary to promote an
339-17   effective and efficient energy sector;
339-18               (6)  promote and establish the formation of consortia
339-19   to study energy uses;
339-20               (7)  actively seek monetary support for the purposes of
339-21   this chapter;
339-22               (8)  coordinate and promote the transfer of energy
339-23   technologies and energy research findings to the marketplace;
339-24               (9)  encourage and coordinate energy research among
339-25   state agencies, postsecondary educational institutions, industrial
339-26   entities, state research programs, nonprofit research entities, and
339-27   other public and private entities; and
 340-1               (10)  provide criteria and recommendations for the
 340-2   awarding of grants for energy research projects approved by state
 340-3   research programs.
 340-4         Sec. 251.103.  ACCEPTANCE OF GIFTS AND GRANTS.  The council
 340-5   may accept a gift or grant from any source to be used by the
 340-6   council for the purposes of this chapter.
 340-7         Sec. 251.104.  USE OF CONTRIBUTED SERVICES OR FACILITIES.
 340-8   The council may use a service or facility contributed to the
 340-9   council by any source.
340-10            (Sections 251.105-251.150 reserved for expansion
340-11               SUBCHAPTER D.  GRANTS FOR RESEARCH PROJECTS
340-12         Sec. 251.151.  AUTHORITY TO MAKE GRANTS.  From money
340-13   available to the council, the council may make grants to
340-14   postsecondary educational institutions or nonprofit research
340-15   organizations or associations to fund research consistent with the
340-16   mission of the council.
340-17         Sec. 251.152.  APPLICATION.  To receive a grant from the
340-18   council, a postsecondary educational institution or nonprofit
340-19   research organization or association must submit to the council:
340-20               (1)  an application for the grant, on a form prescribed
340-21   by the council; and
340-22               (2)  a proposal for the project for which the grant is
340-23   sought.
340-24         Sec. 251.153.  APPROVAL OF APPLICATION.  (a)  The council
340-25   shall approve applications on an equitable basis.
340-26         (b)  Not later than September 1 of each year, the comptroller
340-27   shall certify to the council the amount of appropriated money
 341-1   available from which to make grants under this subchapter for that
 341-2   fiscal year.
 341-3         (c)  The council may not approve an application if the amount
 341-4   of money required to fund the proposal is greater than the total
 341-5   amount of money available to the council to make grants under this
 341-6   subchapter for the fiscal year during which the award is made.
 341-7         Sec. 251.154.  ISSUANCE OF WARRANT BY COMPTROLLER. (a)  The
 341-8   council shall certify to the comptroller the amount of money
 341-9   approved for each project for which the council approves an
341-10   application.
341-11         (b)  To the extent that money is available for the project,
341-12   the comptroller shall issue a warrant, drawn against the amount
341-13   appropriated to the council, to the applicant in the amount
341-14   certified for the project.
341-15         (c)  The comptroller shall issue warrants for projects in the
341-16   order in which the comptroller receives certification of the amount
341-17   of money approved for each project.
341-18         (b)  Chapter 793, Acts of the 73rd Legislature, Regular
341-19   Session, 1993 (Article 4413(47f), Vernon's Texas Civil Statutes),
341-20   is repealed.
341-21            ARTICLE 14.  CHANGES RELATING TO OCCUPATIONS CODE
341-22         PART 1.  CHANGES RELATING TO TITLE 2, OCCUPATIONS CODE
341-23         SECTION 14.001. (a)  Title 2, Occupations Code, is amended to
341-24   conform to Section 1, Chapter 314, Acts of the 76th Legislature,
341-25   Regular Session, 1999, by adding Chapter 56 to read as follows:
341-26             CHAPTER 56.  INFORMATION RELATING TO LICENSING
341-27         Sec. 56.001.  CONFIDENTIALITY OF SOCIAL SECURITY NUMBER. The
 342-1   social security number of an applicant for or holder of a license,
 342-2   certificate of registration, or other legal authorization issued by
 342-3   a licensing agency to practice in a specific occupation or
 342-4   profession that is provided to the licensing agency is confidential
 342-5   and not subject to disclosure under Chapter 552, Government Code.
 342-6         (b)  Section 1, Chapter 314, Acts of the 76th Legislature,
 342-7   Regular Session, 1999, is repealed.
 342-8            PART 2.  CHANGES RELATING TO SUBTITLE A, TITLE 3,
 342-9                            OCCUPATIONS CODE
342-10         SECTION 14.011. (a)  Section 101.203, Occupations Code, is
342-11   amended to conform to Section 2, Chapter 1271, Acts of the 76th
342-12   Legislature, Regular Session, 1999, to read as follows:
342-13         Sec. 101.203.  OVERCHARGING OR OVERTREATING. A health care
342-14   professional may not violate Section 311.0025, Health and Safety
342-15   Code [persistently or flagrantly overcharge or overtreat a
342-16   patient].
342-17         (b)  Section 2, Chapter 1271, Acts of the 76th Legislature,
342-18   Regular Session, 1999, is repealed.
342-19            PART 3.  CHANGES RELATING TO SUBTITLE B, TITLE 3,
342-20                            OCCUPATIONS CODE
342-21         SECTION 14.021.  (a)  Section 151.002(a), Occupations Code,
342-22   is amended to conform to Section 1, Chapter 908, Acts of the 76th
342-23   Legislature, Regular Session, 1999, and Section 1, Chapter 693,
342-24   Acts of the 76th Legislature, Regular Session, 1999, by amending
342-25   Subdivisions (5) and (8) to read as follows:
342-26               (5)  "Health care entity" means:
342-27                     (A)  a hospital licensed under Chapter 241 or
 343-1   577, Health and Safety Code;
 343-2                     (B)  an entity, including a health maintenance
 343-3   organization, group medical practice, nursing home, health science
 343-4   center, university medical school, hospital district, hospital
 343-5   authority, or other health care facility, that:
 343-6                           (i)  provides or pays for medical care or
 343-7   health care services; and
 343-8                           (ii)  follows a formal peer review process
 343-9   to further quality medical care or health care;
343-10                     (C)  a professional society or association of
343-11   physicians, or a committee of such a society or association, that
343-12   follows a formal peer review process to further quality medical
343-13   care or health care; or
343-14                     (D)  an organization established by a
343-15   professional society or association of physicians, hospitals, or
343-16   both, that:
343-17                           (i)  collects and verifies the authenticity
343-18   of documents and other information concerning the qualifications,
343-19   competence, or performance of licensed health care professionals;
343-20   and
343-21                           (ii)  acts as a health care facility's
343-22   agent under the Health Care Quality Improvement Act of 1986 (42
343-23   U.S.C. Section 11101 et seq.).
343-24               (8)  "Medical peer review committee" or "professional
343-25   review body" means a committee of a health care entity, the
343-26   governing board of a health care entity, or the medical staff of a
343-27   health care entity, that operates under written bylaws approved by
 344-1   the policy-making body or the governing board of the health care
 344-2   entity and is authorized to evaluate the quality of medical and
 344-3   health care services or the competence of physicians, including
 344-4   evaluation of the performance of those functions specified by
 344-5   Section 85.204, Health and Safety Code.  The term includes:
 344-6                     (A)  an employee or agent of the committee,
 344-7   including an assistant, investigator, intervenor, attorney, and any
 344-8   other person or organization that serves the committee; and
 344-9                     (B)  the governing body of a public hospital
344-10   owned or operated by a governmental entity, the governing body of a
344-11   hospital authority created under Chapter 262 or 264, Health and
344-12   Safety Code, and the governing body of a hospital district created
344-13   under Article IX, Texas Constitution, but only:
344-14                           (i)  in relation to the governing body's
344-15   evaluation of the competence of a physician or the quality of
344-16   medical and health care services provided by the public hospital,
344-17   hospital authority, or hospital district; and
344-18                           (ii)  to the extent that the evaluation
344-19   under Subparagraph (i) involves discussions or records that
344-20   specifically or necessarily identify an individual patient or
344-21   physician.
344-22         (b)  Section 1, Chapter 908, Acts of the 76th Legislature,
344-23   Regular Session, 1999, and Section 1, Chapter 693, Acts of the 76th
344-24   Legislature, Regular Session, 1999, are repealed.
344-25         SECTION 14.022.  (a)  Section 151.056(b), Occupations Code,
344-26   is amended to conform to Section 1, Chapter 1044, Acts of the 76th
344-27   Legislature, Regular Session, 1999, to read as follows:
 345-1         (b)  This section does not apply to the act of:
 345-2               (1)  a medical specialist located in another
 345-3   jurisdiction who provides only episodic consultation services on
 345-4   request to a physician licensed in this state who practices in the
 345-5   same medical specialty;
 345-6               (2)  a physician located in another jurisdiction who is
 345-7   providing consultation services to a medical school as defined by
 345-8   Section 61.501, Education Code; [or]
 345-9               (3)  a physician located in another jurisdiction who is
345-10   providing consultation services to an institution subject to:
345-11                     (A)  Subchapter C, Chapter 73, Education Code; or
345-12                     (B)  Subchapter K, Chapter 74, Education Code; or
345-13               (4)  a physician located in another jurisdiction of a
345-14   state having borders contiguous with the borders of this state who
345-15   is the treating physician of a patient and orders home health or
345-16   hospice services for a resident of this state to be delivered by a
345-17   home and community support services agency licensed in this state.
345-18         (b)  Section 1, Chapter 1044, Acts of the 76th Legislature,
345-19   Regular Session, 1999, is repealed.
345-20         SECTION 14.023.  (a)  Sections 153.008(b)-(d), Occupations
345-21   Code, are amended to conform to Section 1, Chapter 1262, Acts of
345-22   the 76th Legislature, Regular Session, 1999, to read as follows:
345-23         (b)  [For each license applicant, the board shall also
345-24   maintain a record that shows:]
345-25               [(1)  the name, age, and place and duration of
345-26   residence of the applicant;]
345-27               [(2)  the time spent by the applicant in medical study,
 346-1   including the respective medical schools; and]
 346-2               [(3)  the years and schools from which degrees were
 346-3   granted to the applicant.]
 346-4         [(c)]  The board's records [record maintained under
 346-5   Subsection (b)] must indicate whether an applicant was issued or
 346-6   denied a license.  The record constitutes prima facie evidence of
 346-7   each matter contained in the record.
 346-8         (c) [(d)]  A certified copy of a record maintained under this
 346-9   section, under the hand and seal of the executive director
346-10   [secretary-treasurer] of the board, is admissible in evidence in
346-11   all courts.
346-12         (b)  Section 155.008, Occupations Code, is amended to conform
346-13   to Section 1, Chapter 1262, Acts of the 76th Legislature, Regular
346-14   Session, 1999, to read as follows:
346-15         Sec. 155.008.  CRIMINAL RECORD CHECK.  The board may [shall]
346-16   submit to the Department of Public Safety a complete set of
346-17   fingerprints of each license applicant, and the department shall
346-18   classify and check the fingerprints against those in the
346-19   department's fingerprint records.  The department shall certify to
346-20   the board its findings regarding the criminal record of the
346-21   applicant or the applicant's lack of a criminal record.
346-22         (c)  Subchapter C, Chapter 155, Occupations Code, is amended
346-23   to conform to Section 1, Chapter 1262, Acts of the 76th
346-24   Legislature, Regular Session, 1999, by adding Section 155.107 to
346-25   read as follows:
346-26         Sec. 155.107.  CERTIFICATION OF EXAMINATION GRADES.  On the
346-27   request of a license holder, the board shall issue certification of
 347-1   state board examination grades to the Federation of State Medical
 347-2   Boards of the United States.  The board shall charge a reasonable
 347-3   fee for the issuance.
 347-4         (d)  Section 153.006(c), Occupations Code, is repealed to
 347-5   conform to Section 1, Chapter 1262, Acts of the 76th Legislature,
 347-6   Regular Session, 1999.
 347-7         (e)  Section 1, Chapter 1262, Acts of the 76th Legislature,
 347-8   Regular Session, 1999, is repealed.
 347-9         SECTION 14.024. (a)  The heading of Subchapter B, Chapter
347-10   153, Occupations Code, is amended to conform more closely to the
347-11   law contained in the subchapter to read as follows:
347-12                SUBCHAPTER B.  FEES AND[;] FUNDS[; AUDIT]
347-13         (b)  Section 153.051, Occupations Code, is amended to conform
347-14   to Section 3, Chapter 1262, Acts of the 76th Legislature, Regular
347-15   Session, 1999, and Section 3, Chapter 1275, Acts of the 76th
347-16   Legislature, Regular Session, 1999, by adding Subsection (d) to
347-17   read as follows:
347-18         (d)  The board may not set, charge, collect, receive, or
347-19   deposit any of the following fees in excess of:
347-20               (1)  $900 for a license;
347-21               (2)  $200 for a first annual registration permit;
347-22               (3)  $200 for a temporary license;
347-23               (4)  $200 for renewal of an annual registration permit;
347-24               (5)  $200 for a physician-in-training permit;
347-25               (6)  $300 for the processing of an application and the
347-26   issuance of an annual registration for anesthesia in an outpatient
347-27   setting;
 348-1               (7)  $200 for an endorsement to other state medical
 348-2   boards;
 348-3               (8)  $200 for a duplicate license; or
 348-4               (9)  $700 for a reinstated license after cancellation
 348-5   for cause.
 348-6         (c)  Section 153.052, Occupations Code, is amended to conform
 348-7   to Section 3, Chapter 1262, Acts of the 76th Legislature, Regular
 348-8   Session, 1999, to read as follows:
 348-9         Sec. 153.052.  DEPOSIT AND EXPENDITURE OF RECEIPTS [MEDICAL
348-10   LICENSING FUND ACCOUNT].  (a)  The [medical licensing fund account
348-11   is an account in the general revenue fund.  Unless otherwise
348-12   provided by this subtitle, the] board shall deposit all receipts
348-13   collected [each fee, charge, and penalty received] by the board in
348-14   the state treasury [to the credit of the medical licensing fund
348-15   account].
348-16         (b)  The money collected by the board may be spent only as
348-17   provided by the General Appropriations Act, this subtitle, or other
348-18   applicable law for the:
348-19               (1)  enforcement of this subtitle;
348-20               (2)  prohibition of the unlawful practice of medicine;
348-21               (3)  dissemination of information to prevent the
348-22   violation of the laws; and
348-23               (4)  prosecution of those who violate the laws.
348-24         (c)  Distributions may be made only on the written approval
348-25   of the executive director of the board or the executive director's
348-26   designated representative.
348-27         (d)  Section 153.054, Occupations Code, is amended to conform
 349-1   to Section 3, Chapter 1262, Acts of the 76th Legislature, Regular
 349-2   Session, 1999, to read as follows:
 349-3         Sec. 153.054.  CHARGES FOR CERTAIN RECORDS AND OTHER
 349-4   MATERIAL. The board may set and collect a fee [in an amount
 349-5   sufficient to reimburse the board for the actual expense incurred]
 349-6   for:
 349-7               (1)  each copy made of a record in the office of
 349-8   [maintained by] the board; or
 349-9               (2)  any [printed] material published by the board.
349-10         (e)  Section 3, Chapter 1262, Acts of the 76th Legislature,
349-11   Regular Session, 1999, is repealed.
349-12         (f)  Section 3, Chapter 1275, Acts of the 76th Legislature,
349-13   Regular  Session, 1999, is repealed.
349-14         SECTION 14.025. (a)  Section 153.053, Occupations Code, is
349-15   amended to conform to Section 4, Chapter 1262, Acts of the 76th
349-16   Legislature, Regular Session, 1999, to read as follows:
349-17         Sec. 153.053.  SURCHARGE FOR [DISPOSITION OF] CERTAIN FEES.
349-18   (a)  The board shall collect an additional $200 surcharge for each
349-19   of the following fees [This section applies to each fee assessed
349-20   for]:
349-21               (1)  [processing an application for and administering a
349-22   partial or complete] license [examination];
349-23               (2)  first [processing an application for and issuing
349-24   an] annual registration permit [receipt of a license holder];
349-25               (3)  renewal of annual registration permit [processing
349-26   and granting a license by reciprocity to a license holder of
349-27   another state]; and
 350-1               (4)  [processing an application for] reinstatement of a
 350-2   [and issuing a reinstated] license after [a lapse or] cancellation
 350-3   for cause [of a license].
 350-4         (b)  Of each surcharge [fee] collected, the board shall
 350-5   deposit $50 to the credit of the foundation school fund and $150 to
 350-6   the credit of the general revenue fund.
 350-7         (b)  Section 4, Chapter 1262, Acts of the 76th Legislature,
 350-8   Regular Session, 1999, is repealed.
 350-9         SECTION 14.026. (a)  Subchapter A, Chapter 154, Occupations
350-10   Code, is amended to conform to Section 2, Chapter 645, Acts of the
350-11   76th Legislature, Regular Session, 1999, by adding Section 154.006
350-12   to read as follows:
350-13         Sec. 154.006.  PHYSICIAN PROFILES.  (a)  The board shall
350-14   create a profile of each physician licensed under this subtitle.
350-15   The profile must:
350-16               (1)  include the information required by Subsection
350-17   (b); and
350-18               (2)  be compiled in a format that permits the board to
350-19   make the information contained in the profile available to the
350-20   public.
350-21         (b)  A profile must contain the following information on each
350-22   physician:
350-23               (1)  the name of each medical school attended and the
350-24   dates of:
350-25                     (A)  graduation; or
350-26                     (B)  Fifth Pathway designation and completion of
350-27   the Fifth Pathway Program;
 351-1               (2)  a description of all graduate medical education in
 351-2   the United States or Canada;
 351-3               (3)  any specialty certification held by the physician
 351-4   and issued by a medical licensing board that is a member of the
 351-5   American Board of Medical Specialties or the Bureau of Osteopathic
 351-6   Specialists;
 351-7               (4)  the number of years the physician has actively
 351-8   practiced medicine in:
 351-9                     (A)  the United States or Canada; and
351-10                     (B)  this state;
351-11               (5)  the name of each hospital in this state in which
351-12   the physician has privileges;
351-13               (6)  the physician's primary practice location;
351-14               (7)  the type of language translating services,
351-15   including translating services for a person with impairment of
351-16   hearing, that the physician provides at the physician's primary
351-17   practice location;
351-18               (8)  whether the physician participates in the Medicaid
351-19   program;
351-20               (9)  a description of any conviction for a felony, a
351-21   Class A or Class B misdemeanor, or a Class C misdemeanor involving
351-22   moral turpitude during the 10-year period preceding the date of the
351-23   profile;
351-24               (10)  a description of any charges reported to the
351-25   board during the 10-year period preceding the date of the profile
351-26   to which the physician has pleaded no contest, for which the
351-27   physician is the subject of deferred adjudication or pretrial
 352-1   diversion, or in which sufficient facts of guilt were found and the
 352-2   matter was continued by a court;
 352-3               (11)  a description of any disciplinary action against
 352-4   the physician by the board during the 10-year period preceding the
 352-5   date of the profile;
 352-6               (12)  a description of any disciplinary action against
 352-7   the physician by a medical licensing board of another state during
 352-8   the 10-year period preceding the date of the profile;
 352-9               (13)  a description of the final resolution taken by
352-10   the board on medical malpractice claims or complaints required to
352-11   be opened by the board under Section 164.201;
352-12               (14)  whether the physician's patient service areas are
352-13   accessible to disabled persons, as defined by federal law; and
352-14               (15)  a description of any formal complaint against the
352-15   physician initiated and filed under Section 164.005 and the status
352-16   of the complaint.
352-17         (c)  Information required to be included under Subsection (b)
352-18   that is not maintained by the board in the ordinary course of the
352-19   board's duties shall be obtained from a physician at the time the
352-20   physician renews the physician's license.  In requesting
352-21   information from the physician, the board shall:
352-22               (1)  inform the physician that compliance with the
352-23   request for information is mandatory;
352-24               (2)  inform the physician of the date the information
352-25   will be made available to the public; and
352-26               (3)  instruct the physician about the requirements
352-27   under Subsection (f) for the physician to obtain a copy of the
 353-1   physician's profile to make corrections.
 353-2         (d)  This section does not:
 353-3               (1)  prevent the board from providing explanatory
 353-4   information regarding the significance of categories in which
 353-5   malpractice settlements are reported; or
 353-6               (2)  require the board to disclose confidential
 353-7   settlement information.
 353-8         (e)  A pending malpractice claim or complaint, other than a
 353-9   claim disclosed under Subsection (b)(13), may not be disclosed to
353-10   the public by the board.  This subsection does not prevent the
353-11   board from investigating and disciplining a physician on the basis
353-12   of a pending medical malpractice claim or complaint.
353-13         (f)  The board shall provide a physician with a copy of the
353-14   physician's profile if the physician requests a copy at the time
353-15   the physician renews the physician's license.  If a copy is
353-16   requested by a physician, the board shall provide the physician one
353-17   month from the date the copy is provided to the physician to
353-18   correct factual errors in the physician's profile.
353-19         (g)  The board shall update the information contained in a
353-20   physician's profile annually.  The board shall adopt a form that
353-21   allows a physician to update information contained in a physician's
353-22   profile.  The form shall be made available on the Internet and in
353-23   other formats as prescribed by board rule.  The board may adopt
353-24   rules concerning the type and content of additional information
353-25   that may be included in a physician's profile.
353-26         (h)  The board shall adopt rules as necessary to implement
353-27   this section.
 354-1         (b)  Section 2, Chapter 645, Acts of the 76th Legislature,
 354-2   Regular Session, 1999, is repealed.
 354-3         SECTION 14.027. (a)  Section 155.002, Occupations Code, is
 354-4   amended to conform to Section 2, Chapter 1262, Acts of the 76th
 354-5   Legislature, Regular Session, 1999, and Section 1, Chapter 874,
 354-6   Acts of the 76th Legislature, Regular Session, 1999, to read as
 354-7   follows:
 354-8         Sec. 155.002.  ISSUANCE OF LICENSE.  The board, at its sole
 354-9   discretion, may issue a license to practice medicine to a person
354-10   who:
354-11               (1)  submits to the board a license application as
354-12   required by this chapter;
354-13               (2)  presents satisfactory proof that the person meets
354-14   the eligibility requirements established by this chapter; and
354-15               (3)  satisfies the examination requirements of Section
354-16   155.051 [satisfactorily completes an examination or reexamination
354-17   conducted under this chapter].
354-18         (b)  Section 155.003, Occupations Code, is amended to conform
354-19   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
354-20   Session, 1999, to read as follows:
354-21         Sec. 155.003.  GENERAL ELIGIBILITY REQUIREMENTS.  (a)  To be
354-22   eligible for [to take the license examination and to be issued] a
354-23   license under this chapter, an applicant must present proof
354-24   satisfactory to the board that the applicant:
354-25               (1)  is at least 21 years of age;
354-26               (2)  is of good professional character and has not
354-27   violated Section 164.051, 164.052, or 164.053;
 355-1               (3)  has completed:
 355-2                     (A)  at least 60 semester hours of college
 355-3   courses, other than courses in medical school, that are [at the
 355-4   time of completion were] acceptable to The University of Texas at
 355-5   Austin for credit on a bachelor of arts degree or a bachelor of
 355-6   science degree;
 355-7                     (B)  the entire primary, secondary, and
 355-8   premedical education required in the country of medical school
 355-9   graduation, if the medical school is located outside the United
355-10   States or Canada; or
355-11                     (C)  substantially equivalent courses as
355-12   determined by board rule;
355-13               (4)  is a graduate of a medical [or osteopathic] school
355-14   located in the United States or Canada and [or college] approved by
355-15   the board [at the time the degree was conferred]; [and]
355-16               (5)  has either:
355-17                     (A)  successfully completed one year [a one-year
355-18   program] of graduate medical training approved by the board in the
355-19   United States or Canada; or
355-20                     (B)  graduated from a medical school located
355-21   outside the United States or Canada and has successfully completed
355-22   three years of graduate medical training approved by the board in
355-23   the United States or Canada;
355-24               (6)  has passed within three attempts an examination
355-25   accepted or administered by the board, except as provided by
355-26   Section 155.056; and
355-27               (7)  has passed a Texas medical jurisprudence
 356-1   examination as determined by board rule.
 356-2         (b)  All [An applicant is eligible for examination before the
 356-3   applicant meets the requirement established by Subsection (a)(5)
 356-4   but is not eligible for an unrestricted license until all the
 356-5   requirements of Subsection (a)  are satisfied.]
 356-6         [(c)  To be recognized by the board for the purposes of this
 356-7   chapter, all] medical or osteopathic medical education an applicant
 356-8   receives in the United States must be accredited by an accrediting
 356-9   body officially recognized by the United States Department of
356-10   Education as the accrediting body for medical education leading to
356-11   the doctor of medicine degree or the doctor of osteopathy degree.
356-12   This subsection does not apply to postgraduate medical education or
356-13   training.
356-14         (c) [(d)]  An applicant who is unable to meet the requirement
356-15   established by Subsection (b) may be [(c) for recognition of the
356-16   applicant's medical or osteopathic medical education is] eligible
356-17   for an unrestricted license if the applicant:
356-18               (1)  received medical [the] education in a hospital or
356-19   teaching institution sponsoring or participating in a program of
356-20   graduate medical education accredited by the Accreditation
356-21   [Accrediting] Council for Graduate Medical Education, the American
356-22   Osteopathic Association, or the board in the same subject as the
356-23   medical or osteopathic medical education as defined by board rule
356-24   [if the hospital or teaching institution has an agreement with the
356-25   applicant's school]; or
356-26               (2)  is specialty board certified by a specialty board
356-27   approved by the American Osteopathic Association or the American
 357-1   Board of Medical Specialties.
 357-2         (d)  In addition to the other requirements prescribed by this
 357-3   subtitle, the board may require an applicant to comply with other
 357-4   requirements that the board considers appropriate.
 357-5         (e)  An applicant is not eligible for a license if:
 357-6               (1)  the applicant holds a medical license that is
 357-7   currently restricted for cause, canceled for cause, suspended for
 357-8   cause, or revoked by a state, a province of Canada, or a uniformed
 357-9   service of the United States;
357-10               (2)  an investigation or a proceeding is instituted
357-11   against the applicant for the restriction, cancellation,
357-12   suspension, or revocation in a state, a province of Canada, or a
357-13   uniformed service of the United States; or
357-14               (3)  a prosecution is pending against the applicant in
357-15   any state, federal, or Canadian court for any offense that under
357-16   the laws of this state is a felony or a misdemeanor that involves
357-17   moral turpitude.
357-18         (c)  Subchapter A, Chapter 155, Occupations Code, is amended
357-19   to conform to Section 2, Chapter 1262, Acts of the 76th
357-20   Legislature, Regular Session, 1999, by adding Section 155.0031 to
357-21   read as follows:
357-22         Sec. 155.0031.  APPLICATION PROCEDURES AND REQUIREMENTS. (a)
357-23   An application for a license must be in writing and on forms
357-24   prescribed by the board.  The board may allow or require
357-25   applicants, by board rule, to use the Federation Credentials
357-26   Verification Service offered by the Federation of State Medical
357-27   Boards of the United States.
 358-1         (b)  The application forms must be accompanied by all fees,
 358-2   documents, and photographs required by board rule.
 358-3         (c)  Applicants for a license must subscribe to an oath in
 358-4   writing before an officer authorized by law to administer oaths.
 358-5   The written oath is part of the application.
 358-6         (d)  An applicant must present proof satisfactory to the
 358-7   board that each medical school attended is substantially equivalent
 358-8   to a Texas medical school as determined by board rule.
 358-9         (d)  Section 155.004, Occupations Code, is amended to conform
358-10   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
358-11   Session, 1999, to read as follows:
358-12         Sec. 155.004.  ADDITIONAL ELIGIBILITY REQUIREMENTS FOR
358-13   GRADUATES OF CERTAIN FOREIGN MEDICAL SCHOOLS. A [(a)  This section
358-14   applies only to a] license applicant who is a graduate of a medical
358-15   school that[:]
358-16               [(1)]  is located outside the United States and
358-17   Canada[; and]
358-18               [(2)  was not board approved at the time the
358-19   applicant's degree was conferred.]
358-20         [(b)  To be eligible for a license under this chapter, an
358-21   applicant subject to this section] must[, in addition to meeting
358-22   the requirements of Section 155.003,] present proof satisfactory to
358-23   the board that the applicant:
358-24               (1)  is a graduate of a school whose curriculum meets
358-25   the requirements for an unapproved medical school as determined by
358-26   a committee of experts selected by the Texas Higher Education
358-27   Coordinating Board;
 359-1               (2)  has successfully completed at least three years of
 359-2   graduate medical training in the United States or Canada that was
 359-3   approved by the board [on the date the training was completed];
 359-4               (3)  is eligible for a license to practice medicine in
 359-5   the country in which the school is located, except for any
 359-6   citizenship requirements;
 359-7               (4)  holds a valid certificate issued by the
 359-8   Educational Commission for Foreign Medical Graduates; and
 359-9               (5)  is able to communicate in English[; and]
359-10               [(6)  has passed the license examination under
359-11   Subchapter B required by the board of each applicant].
359-12         [(c)  The board by rule may establish an alternate
359-13   educational requirement than that established by Section
359-14   155.003(a)(3) for an applicant subject to this section.]
359-15         [(d)  The board by rule may require, in addition to other
359-16   license requirements, that an applicant who is subject to this
359-17   section, or the school of which the applicant is a graduate,
359-18   provide additional information to the board concerning the school
359-19   before the board approves the applicant.]
359-20         [(e)  The board may refuse to issue a license to an applicant
359-21   subject to this section if the board determines that the applicant:]
359-22               [(1)  does not possess the qualifications necessary to
359-23   provide the same standard of medical care as provided by a
359-24   physician licensed in this state; or]
359-25               [(2)  failed to provide evidence to establish to the
359-26   board's satisfaction that the applicant completed medical education
359-27   or professional training substantially equivalent to that provided
 360-1   by a medical school in this state.]
 360-2         (e)  Section 155.005(a), Occupations Code, is amended to
 360-3   conform to Section 2, Chapter 1262, Acts of the 76th Legislature,
 360-4   Regular Session, 1999, to read as follows:
 360-5         (a)  To be eligible for a license under this chapter, an
 360-6   applicant who has been a student of a foreign medical school must
 360-7   present proof satisfactory to the board that the applicant:
 360-8               (1)  meets the requirements of Section 155.003 [or
 360-9   Section 155.101];
360-10               (2)  has studied medicine in a medical school located
360-11   outside the United States and Canada that is acceptable to the
360-12   board;
360-13               (3)  has completed all of the didactic work of the
360-14   foreign medical school but has not graduated from the school;
360-15               (4)  has attained a score satisfactory to a medical
360-16   school in the United States approved by the Liaison Committee on
360-17   Medical Education on a qualifying examination and has
360-18   satisfactorily completed one academic year of supervised clinical
360-19   training for foreign medical students, as defined by the American
360-20   Medical Association Council on Medical Education (Fifth Pathway
360-21   Program), under the direction of the medical school in the United
360-22   States;
360-23               (5)  has attained a passing score on the Educational
360-24   Commission for Foreign Medical Graduates examination or another
360-25   examination, if required by the board;
360-26               (6)  has successfully completed at least three years of
360-27   graduate medical training in the United States or Canada that was
 361-1   approved by the board as of the date the training was completed;
 361-2   and
 361-3               (7)  has passed the license examination under
 361-4   Subchapter B required by the board of each applicant.
 361-5         (f)  Sections 155.007(a) and (g), Occupations Code, are
 361-6   amended to conform to Section 2, Chapter 1262, Acts of the 76th
 361-7   Legislature, Regular Session, 1999, to read as follows:
 361-8         (a)  The executive director shall review each application for
 361-9   a license [by examination or reciprocity] and shall:
361-10               (1)  recommend to the board each applicant eligible for
361-11   a license; and
361-12               (2)  report to the board the name of each applicant
361-13   determined to be ineligible for a license, together with the
361-14   reasons for that determination.
361-15         (g)  Each report received or gathered by the board on a
361-16   license applicant is confidential and is not subject to disclosure
361-17   under Chapter 552, Government Code.  The board may disclose a
361-18   report to an appropriate licensing authority in another state.  The
361-19   board shall report all licensing actions to appropriate licensing
361-20   authorities in other states and to the Federation of State Medical
361-21   Boards of the United States.
361-22         (g)  Section 155.051, Occupations Code, is amended to conform
361-23   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
361-24   Session, 1999, and Section  1, Chapter 874, Acts of the 76th
361-25   Legislature, Regular Session, 1999, to read as follows:
361-26         Sec. 155.051.  EXAMINATION REQUIRED.  (a)  Except as provided
361-27   by Subsection (b), an [Each] applicant for a license to practice
 362-1   medicine in this state [not otherwise eligible for a license under
 362-2   this subtitle] must pass each part of an examination described by
 362-3   Section 155.0511(2), (3), (4), (6), or (7) within seven years
 362-4   [approved by board rule].
 362-5         (b)  An applicant who is a graduate of a program designed to
 362-6   lead to both a doctor of philosophy degree and a doctor of medicine
 362-7   degree or doctor of osteopathy degree must pass each part of an
 362-8   examination described by Section 155.0511(2), (3), (4), (6), or (7)
 362-9   not later than the second anniversary of the date the applicant was
362-10   awarded a doctor of medicine degree or doctor of osteopathy degree.
362-11         (h)  Subchapter B, Chapter 155, Occupations Code, is amended
362-12   to conform to Section 2, Chapter 1262, Acts of the 76th
362-13   Legislature, Regular Session, 1999, and Section 1, Chapter 874,
362-14   Acts of the 76th Legislature, Regular Session, 1999, by adding
362-15   Section 155.0511 to read as follows:
362-16         Sec. 155.0511.  EXAMINATIONS ADMINISTERED OR ACCEPTED BY
362-17   BOARD. The board may administer or accept the following
362-18   examinations for licensing as determined by rule:
362-19               (1)  a state board licensing examination;
362-20               (2)  the Medical Council of Canada Examination (LMCC)
362-21   or its successor;
362-22               (3)  the National Board of Osteopathic Medical
362-23   Examiners (NBOME) examination or its successor;
362-24               (4)  the National Board of Medical Examiners (NBME)
362-25   examination or its successor;
362-26               (5)  the Federation Licensing Examination (FLEX) with a
362-27   weighted average in one sitting before June 1985;
 363-1               (6)  the Federation Licensing Examination (FLEX) after
 363-2   May 1985;
 363-3               (7)  the United States Medical Licensing Examination
 363-4   (USMLE) or its successor;
 363-5               (8)  a combination of the examinations described by
 363-6   Subdivisions (3) and (6) as determined by board rule; or
 363-7               (9)  a combination of the examinations described by
 363-8   Subdivisions (4), (6), and (7) as determined by board rule.
 363-9         (i)  Section 155.052, Occupations Code, is amended to conform
363-10   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
363-11   Session, 1999, and Section 1, Chapter 874, Acts of the 76th
363-12   Legislature, Regular Session, 1999, to read as follows:
363-13         Sec. 155.052.  GENERAL EXAMINATION PROCEDURES. (a)  Each
363-14   examination administered to evaluate basic medical knowledge and
363-15   clinical competency [for a license to practice medicine] must be
363-16   prepared by a national testing service or [prepared by] the board
363-17   and validated by qualified independent testing professionals.  The
363-18   examination must be [conducted] in writing and in English.
363-19         (b)  A license examination must be entirely [uniform and
363-20   conducted in a] fair and impartial [manner] to all persons and to
363-21   each school or system of medicine.  [Each license applicant who
363-22   takes an examination must be given questions identical to those
363-23   received by each other applicant examined at the same time.]
363-24         (c)  An applicant who wishes to request reasonable
363-25   accommodations due to a disability must submit the request on
363-26   filing the application.  [The board may give the license
363-27   examination in two or more parts.]
 364-1         (d)  The board by rule shall determine the passing grade for
 364-2   each examination used by the board [credit to be given a license
 364-3   applicant on answers turned in on the subjects of complete and
 364-4   partial examination.  The board's decision is final].
 364-5         (e)  [The board may establish examination fees.]
 364-6         [(f)]  The board shall give each license applicant notice of
 364-7   the date and place of the examination, if administered by the
 364-8   board.
 364-9         [(g)  In addition to the requirements prescribed by this
364-10   subchapter, the board may require applicants to comply with other
364-11   requirements for examination that the board considers appropriate.]
364-12         (j)  Section 155.054, Occupations Code, is amended to conform
364-13   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
364-14   Session, 1999, and Section 1, Chapter 874, Acts of the 76th
364-15   Legislature, Regular Session, 1999, to read as follows:
364-16         Sec. 155.054.  EXAMINATION SUBJECTS. (a) Each license
364-17   examination must include [cover:]
364-18               [(1)  those]  subjects generally taught by medical
364-19   schools, a knowledge of which is commonly and generally required of
364-20   each candidate for the degree of doctor of medicine or doctor of
364-21   osteopathy conferred by schools in this state.
364-22         (b)  The board shall administer the Texas [a board-approved
364-23   school or college of medicine; and]
364-24               [(2)  the subject of] medical jurisprudence examination
364-25   to all applicants.
364-26         (k)  Section 155.055, Occupations Code, is amended to conform
364-27   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
 365-1   Session, 1999, and Section 1, Chapter 874, Acts of the 76th
 365-2   Legislature, Regular Session, 1999, to read as follows:
 365-3         Sec. 155.055.  NOTICE OF EXAMINATION RESULTS. [(a)]  The
 365-4   board shall notify each examinee of the results of a licensing
 365-5   examination not later than the 120th [90th] day after the date the
 365-6   examination is administered by the board.  However, if an
 365-7   examination is graded or reviewed by a national testing service,
 365-8   the board shall notify each examinee of the results of the
 365-9   examination not later than the 30th day after the date the board
365-10   receives the results from the testing service.
365-11         [(b)  If the notice of the examination results will be
365-12   delayed for longer than 90 days after the examination date, the
365-13   board shall notify each examinee of the reason for the delay before
365-14   the 90th day.]
365-15         [(c)  If requested in writing by a person who fails the
365-16   examination, the board shall provide to the person a summarized
365-17   analysis of the person's performance on the examination that
365-18   consists of the person's score on each portion of the examination.]
365-19         (l)  Section 155.056, Occupations Code, is amended to conform
365-20   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
365-21   Session, 1999, and Section 1, Chapter 874, Acts of the 76th
365-22   Legislature, Regular Session, 1999, to read as follows:
365-23         Sec. 155.056.  REEXAMINATION. (a)  An applicant must pass
365-24   each part of an examination within three attempts, except that an
365-25   applicant who has passed all but one part of an examination within
365-26   three attempts may take the remaining part of the examination one
365-27   additional time.  [A license applicant who is refused a license
 366-1   because of failure to pass the examination is entitled to take a
 366-2   subsequent examination at a time fixed by the board on payment of a
 366-3   fee set by the board.]
 366-4         (b)  Notwithstanding Subsection (a), an applicant is
 366-5   considered to have satisfied the requirements of this section if
 366-6   the applicant:
 366-7               (1)  passed all but one part of an examination approved
 366-8   by the board within three attempts and passed the remaining part of
 366-9   the examination within five attempts;
366-10               (2)  is specialty board certified by a specialty board
366-11   that:
366-12                     (A)  is a member of the American Board of Medical
366-13   Specialties; or
366-14                     (B)  is approved by the American Osteopathic
366-15   Association; and
366-16               (3)  completed in this state an additional two years of
366-17   postgraduate medical training approved by the board.  [An applicant
366-18   may not take more than two subsequent examinations under Subsection
366-19   (a).]
366-20         (m)  Section 155.057, Occupations Code, is amended to conform
366-21   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
366-22   Session, 1999, and Section 1, Chapter 874, Acts of the 76th
366-23   Legislature, Regular Session, 1999, to read as follows:
366-24         Sec. 155.057.  PRESERVATION OF EXAMINATION MATERIALS. The
366-25   board shall preserve all examination questions, [and] answers, and
366-26   [with the] grades [attached, in the board's executive office or in
366-27   another repository] as directed by board rule until the first
 367-1   anniversary of the date of the examination.
 367-2         (n)  Section 155.058, Occupations Code, is amended to conform
 367-3   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
 367-4   Session, 1999, to read as follows:
 367-5         Sec. 155.058.  APPLICATION OF OPEN RECORDS AND OPEN MEETINGS
 367-6   LAW TO EXAMINATION PROCEDURES. (a)  The following are exempt from
 367-7   Chapters 551 and 552, Government Code:
 367-8               (1)  examination questions that may be used in the
 367-9   future;
367-10               (2)  examinations; and
367-11               (3)  deliberations and records relating to the
367-12   professional character and fitness of applicants [for examination].
367-13         (b)  Subsection (a)(2) does not prohibit the board from
367-14   providing an examination to an applicant who has taken that
367-15   examination.
367-16         [(c)  Notwithstanding Subsection (a)(3), the board shall
367-17   disclose records relating to the professional character and fitness
367-18   of an individual applicant to that applicant on written request,
367-19   other than information supplied to the board by a person who
367-20   requests that the information not be disclosed.]
367-21         (o)  Section 155.105, Occupations Code, is amended to conform
367-22   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
367-23   Session, 1999, to read as follows:
367-24         Sec. 155.105.  PHYSICIAN-IN-TRAINING [INSTITUTIONAL] PERMIT.
367-25   (a)  The board as provided by board rule may issue a
367-26   physician-in-training [an institutional] permit to a physician not
367-27   otherwise licensed by the board who is participating in a graduate
 368-1   medical education training program approved by the board.
 368-2         (b)  A physician-in-training [The board shall charge a fee
 368-3   for an institutional permit.  The fee shall be deposited in the
 368-4   medical registration fund account.]
 368-5         [(c)  An institutional] permit does not authorize the
 368-6   performance of a medical act by the permit holder unless the act is
 368-7   performed:
 368-8               (1)  as a part of the graduate medical education
 368-9   training program; and
368-10               (2)  under the supervision of a physician.
368-11         (c)  The board has jurisdiction to discipline a permit holder
368-12   whose permit has expired if the violation of the law occurred
368-13   during the time the permit was valid.  If an investigation is open
368-14   when the permit expires, the permit shall be executory and the
368-15   board may retain jurisdiction.
368-16         (p)  Section 156.001, Occupations Code, is amended to conform
368-17   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
368-18   Session, 1999, to read as follows:
368-19         Sec. 156.001.  ANNUAL REGISTRATION REQUIRED; REGISTRATION
368-20   PROCEDURE. (a)  Each person licensed to practice medicine in this
368-21   state must register with the board annually.  The initial annual
368-22   registration permit shall be issued with the license.
368-23         (b)  Except as provided by Section 156.002, the application
368-24   for registration must be accompanied by an annual registration
368-25   permit fee in an amount set by the board regardless of whether the
368-26   person is practicing medicine in this state.
368-27         (c)  A license holder may renew the annual registration
 369-1   permit by submitting to the board, on or before the expiration date
 369-2   of the annual registration permit, the required renewal application
 369-3   and renewal fee.  Each annual registration permit renewal
 369-4   application must include [The person must file with the board a
 369-5   written application for registration on a form provided by the
 369-6   board that includes]:
 369-7               (1)  the license holder's [person's] name and mailing
 369-8   address;
 369-9               (2)  the [address of each] place or places at which the
369-10   license holder [person] is engaged in the practice of medicine; and
369-11               (3)  other necessary information as prescribed by the
369-12   board.
369-13         (d)  If the person is licensed to practice medicine by
369-14   another state or country or by the uniformed services of the United
369-15   States, the renewal application must include a description of any
369-16   investigation the person knows is in progress and any sanction
369-17   imposed by or disciplinary matter pending in the state, country, or
369-18   service regarding the person.
369-19         [(e)  The board shall renew the license of an applicant who
369-20   complies with this section.]
369-21         (q)  Section 156.002, Occupations Code, is amended to conform
369-22   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
369-23   Session, 1999, to read as follows:
369-24         Sec. 156.002.  EXEMPTION FOR CERTAIN [RETIRED] PHYSICIANS.
369-25   (a)  The board by rule may exempt a retired physician from the
369-26   annual registration permit fee requirement.
369-27         (b)  A [retired] physician licensed by the board whose only
 370-1   practice is voluntary charity care is exempt from the annual
 370-2   registration permit fee requirement.
 370-3         (r)  Section 156.003, Occupations Code, is amended to conform
 370-4   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
 370-5   Session, 1999, to read as follows:
 370-6         Sec. 156.003.  STAGGERED RENEWAL SYSTEM. (a)  [A person must
 370-7   apply for annual registration on or before January 1 each year.]
 370-8   The board by rule may adopt a system under which annual
 370-9   registration permits [registrations] expire on various dates during
370-10   the year.
370-11         (b)  [If the board adopts a staggered renewal system under
370-12   Subsection (a), the board shall adjust accordingly the date for
370-13   license cancellation due to nonpayment.]  For the year in which the
370-14   expiration date is changed, annual registration permit fees
370-15   [payable on or before January 1] shall be prorated [on a monthly
370-16   basis so that each registrant pays only that portion of the
370-17   registration fee that is allocable to the number of months during
370-18   which the registration is valid].  On renewal of the registration
370-19   on the new expiration date, the total annual registration permit
370-20   fee is payable.
370-21         (s)  Section 156.004, Occupations Code, is amended to conform
370-22   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
370-23   Session, 1999, to read as follows:
370-24         Sec. 156.004.  NOTICE OF [LICENSE] EXPIRATION. The board
370-25   shall mail an annual registration permit renewal application
370-26   [provide written notice] to each physician at the physician's last
370-27   known address according to the board's records at least 30 days
 371-1   before the expiration date of the annual registration permit.  The
 371-2   board [a license and] shall provide for [allow] a 30-day grace
 371-3   period for renewing the annual registration permit [payment of the
 371-4   annual registration fee] from the date of the expiration of the
 371-5   permit [license].
 371-6         (t)  Section 156.005, Occupations Code, is amended to conform
 371-7   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
 371-8   Session, 1999, to read as follows:
 371-9         Sec. 156.005.  RENEWAL OF CERTAIN REGISTRATION PERMITS
371-10   [LICENSES]. (a)  [A person may renew an unexpired license by paying
371-11   the required fee to the board on or before the expiration date of
371-12   the license.]
371-13         [(b)]  If a [the] person's annual registration permit
371-14   [license] has been expired for 90 days or less, the person may
371-15   renew the permit [license] by submitting [paying] to the board the
371-16   required renewal application, the renewal fee, and a $50 penalty
371-17   fee [that is equal to one-half of the amount of the annual
371-18   registration fee].
371-19         (b) [(c)]  If the person's annual registration permit
371-20   [license] has been expired for longer than 90 days but less than
371-21   one year, the person may renew the permit [license] by submitting
371-22   [paying] to the board the required renewal application, the renewal
371-23   fee, [all unpaid fees] and a $100 penalty fee [that is equal to the
371-24   amount of the annual registration fee].
371-25         (c) [(d)]  If the person's annual registration permit
371-26   [license] has been expired for one year or longer, the person's
371-27   license is considered to have been canceled, unless an
 372-1   investigation is pending, and the person may not renew the annual
 372-2   registration permit [license].
 372-3         (d)  A physician whose license is considered canceled [The
 372-4   person] may obtain a new license by submitting to reexamination and
 372-5   complying with the requirements, fees, and procedures for obtaining
 372-6   a [an original] license.  The board may issue a new license without
 372-7   examination to a person whose license is considered canceled for
 372-8   less than two years.
 372-9         (u)  Section 156.007, Occupations Code, is amended to conform
372-10   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
372-11   Session, 1999, to read as follows:
372-12         Sec. 156.007.  ISSUANCE OF ANNUAL REGISTRATION PERMIT
372-13   [RECEIPT]. (a)  On receipt of a renewal [registration] application
372-14   and all required fees, [accompanied by the proper fee,] the board,
372-15   after ascertaining from the records of the board or from other
372-16   sources considered reliable by the board that the applicant [for
372-17   registration] is a physician in this state, shall issue to the
372-18   applicant an annual registration permit [receipt] certifying that
372-19   the applicant has filed the application, [and] has paid the annual
372-20   registration permit fee for the year, and has completed the
372-21   requirements for annual registration.
372-22         (b)  The filing of the renewal [registration] application,
372-23   the payment of the required fees [fee], and the issuance of the
372-24   permit [receipt] does not entitle the permit [receipt] holder to
372-25   practice medicine in this state unless:
372-26               (1)  the permit [receipt] holder has been previously
372-27   licensed as a physician by the board, as prescribed by law; and
 373-1               (2)  the license to practice medicine is in effect.
 373-2         (v)  Section 156.008, Occupations Code, is amended to conform
 373-3   to Section 2, Chapter 1262, Acts of the 76th Legislature, Regular
 373-4   Session, 1999, to read as follows:
 373-5         Sec. 156.008.  PRACTICING MEDICINE WITHOUT ANNUAL
 373-6   REGISTRATION PERMIT PROHIBITED. (a)  Practicing medicine without an
 373-7   annual registration permit [receipt] for the current year as
 373-8   provided by this subchapter has the same effect as, and is subject
 373-9   to all penalties of, practicing medicine without a license.
373-10         (b)  In a prosecution for the unlawful practice of medicine,
373-11   the [receipt showing payment of the] annual registration permit
373-12   [fee] required by this subchapter may [chapter does] not be treated
373-13   as [constitute] evidence that the permit [receipt] holder is
373-14   lawfully entitled to practice medicine.
373-15         (w)  Sections 155.006, 155.101, and 156.006, Occupations
373-16   Code, are repealed to conform to Section 2, Chapter 1262, Acts of
373-17   the 76th Legislature, Regular Session, 1999.
373-18         (x)  Section 153.009, Occupations Code, is repealed to
373-19   conform to Section 2, Chapter 1262, Acts of the 76th Legislature,
373-20   Regular Session, 1999, and Section 1, Chapter 874, Acts of the 76th
373-21   Legislature, Regular Session, 1999.
373-22         (y)  Section 2, Chapter 1262, Acts of the 76th Legislature,
373-23   Regular Session, 1999, is repealed.
373-24         (z)  Section 1, Chapter 874, Acts of the 76th Legislature,
373-25   Regular Session, 1999, is repealed.
373-26         SECTION 14.028. (a)  The heading of Subchapter C, Chapter
373-27   155, Occupations Code, is amended to conform to Section 5, Chapter
 374-1   1262, Acts of the 76th Legislature, Regular Session, 1999, to read
 374-2   as follows:
 374-3       SUBCHAPTER C.  [RECIPROCITY AND] CERTAIN TEMPORARY LICENSES
 374-4                               OR PERMITS
 374-5         (b)  Section 155.104, Occupations Code, is amended to conform
 374-6   to Section 5, Chapter 1262, Acts of the 76th Legislature, Regular
 374-7   Session, 1999, to read as follows:
 374-8         Sec. 155.104.  [OTHER] TEMPORARY LICENSES. The [Except as
 374-9   provided by Sections 155.102 and 155.103, the] board may adopt
374-10   rules and set fees relating to granting temporary licenses and
374-11   extending the expiration dates of temporary licenses.  The board by
374-12   rule shall set a time limit for the term of a temporary license.
374-13         (c)  Sections 155.102 and 155.103, Occupations Code, are
374-14   repealed to conform to Section 5, Chapter 1262, Acts of the 76th
374-15   Legislature, Regular Session, 1999.
374-16         (d)  Section 5, Chapter 1262, Acts of the 76th Legislature,
374-17   Regular Session, 1999, is repealed.
374-18         SECTION 14.029. (a)  Subchapter B, Chapter 156, Occupations
374-19   Code, is amended to conform to Section 1, Chapter 137, Acts of the
374-20   76th Legislature, Regular Session, 1999, by adding Section 156.056
374-21   to read as follows:
374-22         Sec. 156.056.  CERTAIN VOLUNTEER SERVICES. (a)  In this
374-23   section, "site serving a medically underserved population" has the
374-24   meaning assigned by Section 157.052.
374-25         (b)  The board by rule shall permit a license holder to
374-26   complete half of any informal continuing medical education hours
374-27   required under this subchapter by providing volunteer medical
 375-1   services at a site serving a medically underserved population other
 375-2   than a site that is a primary practice site of the license holder.
 375-3         (b)  Section 1, Chapter 137, Acts of the 76th Legislature,
 375-4   Regular Session, 1999, is repealed.
 375-5         SECTION 14.030. (a)  Section 159.006, Occupations Code, is
 375-6   amended to conform to Section 1, Chapter 636, Acts of the 76th
 375-7   Legislature, Regular Session, 1999, to read as follows:
 375-8         Sec. 159.006.  INFORMATION FURNISHED BY PHYSICIAN. (a)
 375-9   Unless the physician determines that access to the information
375-10   would be harmful to the physical, mental, or emotional health of
375-11   the patient, a physician who receives a written consent for release
375-12   of information as provided by Section 159.005 shall furnish copies
375-13   of the requested medical records, or a summary or narrative of the
375-14   records, including records received from a physician or other
375-15   health care provider involved in the care or treatment of the
375-16   patient.  [The physician shall furnish the information not later
375-17   than the 30th day after the date of receipt of the request.]
375-18         (b)  The physician may delete confidential information about
375-19   another patient or a family member of the patient who has not
375-20   consented to the release.
375-21         (c)  In accordance with Section 159.005, on receipt of a
375-22   written request by a subsequent or consulting physician of a
375-23   patient of the requested physician, the requested physician shall
375-24   furnish a copy of the complete medical records of the patient to
375-25   the subsequent or consulting physician. The duty to provide medical
375-26   records to a subsequent or consulting physician may not be
375-27   nullified by contract.
 376-1         (d)  A physician shall provide the information requested
 376-2   under this section not later than the 15th business day after the
 376-3   date of receipt of the written consent for release under Subsection
 376-4   (a) or the written request under Subsection (c).
 376-5         (e)  If the physician denies the request, in whole or in
 376-6   part, the physician shall:
 376-7               (1)  furnish the patient with a written statement,
 376-8   signed and dated, providing the reason for the denial; and
 376-9               (2)  place a copy of the statement denying the request
376-10   in the patient's medical records.
376-11         (b)  Chapter 159, Occupations Code, is amended to conform to
376-12   Section 1, Chapter 636, Acts of the 76th Legislature, Regular
376-13   Session, 1999, by adding Section 159.0061 to read as follows:
376-14         Sec. 159.0061.  APPOINTMENT OF CUSTODIAN OF PHYSICIAN'S
376-15   RECORDS. (a)  The board by rule shall establish conditions under
376-16   which the board may temporarily or permanently appoint a person as
376-17   a custodian of a physician's medical records.  In adopting rules
376-18   under this section, the board shall consider the death of a
376-19   physician, the mental or physical incapacitation of a physician,
376-20   and the abandonment of medical records by a physician.
376-21         (b)  The rules adopted under this section must provide for:
376-22               (1)  the release of the medical records by an appointed
376-23   custodian in compliance with this chapter; and
376-24               (2)  a fee charged by the appointed custodian that is
376-25   in addition to the copying fee  governed by Section 159.008.
376-26         (c)  Section 1, Chapter 636, Acts of the 76th Legislature,
376-27   Regular Session, 1999, is repealed.
 377-1         SECTION 14.031. (a)  Subchapter A, Chapter 160, Occupations
 377-2   Code, is amended to conform to Section 2, Chapter 908, Acts of the
 377-3   76th Legislature, Regular Session, 1999, by adding Section 160.015
 377-4   to read as follows:
 377-5         Sec. 160.015.  IMMUNITY OF HOSPITAL DISTRICT OR HOSPITAL
 377-6   AUTHORITY. This subchapter does not impose liability or waive
 377-7   immunity for a hospital district or hospital authority that has
 377-8   common law, statutory, or other immunity.
 377-9         (b) Section 2, Chapter 908, Acts of the 76th Legislature,
377-10   Regular Session, 1999, is repealed.
377-11         SECTION 14.032. (a)  Section 160.101(a), Occupations Code, is
377-12   amended to conform to Section 1, Chapter 645, Acts of the 76th
377-13   Legislature, Regular Session, 1999, to read as follows:
377-14         (a)  This section applies to a person known to be a physician
377-15   who is licensed or otherwise lawfully practicing in this state or
377-16   applying to be licensed and who is convicted of or placed on
377-17   deferred adjudication for:
377-18               (1)  a felony;
377-19               (2)  a Class A or Class B misdemeanor;
377-20               (3)  a Class C misdemeanor involving moral turpitude;
377-21               (4) [(3)]  a violation of a state or federal narcotics
377-22   or controlled substances law; or
377-23               (5) [(4)]  an offense involving fraud or abuse under
377-24   the Medicare or Medicaid program.
377-25         (b)  Section 1, Chapter 645, Acts of the 76th Legislature,
377-26   Regular Session, 1999, is repealed.
377-27         SECTION 14.033. (a)  Chapter 162, Occupations Code, is
 378-1   amended to conform to Section 1, Chapter 796, Acts of the 76th
 378-2   Legislature, Regular Session, 1999; Section 2, Chapter 1468, Acts
 378-3   of the 76th Legislature, Regular Session, 1999; Section 2, Chapter
 378-4   1275, Acts of the 76th Legislature, Regular Session, 1999; and
 378-5   Section 1, Chapter 948, Acts of the 76th Legislature, Regular
 378-6   Session, 1999, to read as follows:
 378-7            CHAPTER 162.  REGULATION OF PRACTICE OF MEDICINE
 378-8              SUBCHAPTER A.  REGULATION BY BOARD OF CERTAIN
 378-9                      NONPROFIT HEALTH CORPORATIONS
378-10         Sec. 162.001.  CERTIFICATION BY BOARD. (a)  The board by rule
378-11   shall certify a health organization that:
378-12               (1)  applies for certification on a form approved by
378-13   the board; and
378-14               (2)  presents proof satisfactory to the board that the
378-15   organization meets the requirements of Subsection (b) or (c).
378-16         (b)  The board shall approve and certify a health
378-17   organization that:
378-18               (1)  is a nonprofit corporation under the Texas
378-19   Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
378-20   Texas Civil Statutes) organized to:
378-21                     (A)  conduct scientific research and research
378-22   projects in the public interest in the field of medical science,
378-23   medical economics, public health, sociology, or a related area;
378-24                     (B)  support medical education in medical schools
378-25   through grants and scholarships;
378-26                     (C)  improve and develop the capabilities of
378-27   individuals and institutions studying, teaching, and practicing
 379-1   medicine;
 379-2                     (D)  deliver health care to the public; or
 379-3                     (E)  instruct the general public in medical
 379-4   science, public health, and hygiene and provide related instruction
 379-5   useful to individuals and beneficial to the community;
 379-6               (2)  is organized and incorporated solely by persons
 379-7   licensed by the board; and
 379-8               (3)  has as its directors and trustees persons who are:
 379-9                     (A)  licensed by the board; and
379-10                     (B)  actively engaged in the practice of
379-11   medicine.
379-12         (c)  The board shall certify a health organization to
379-13   contract with or employ physicians licensed by the board if the
379-14   organization:
379-15               (1)  is a nonprofit corporation under the Texas
379-16   Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
379-17   Texas Civil Statutes) and Section 501(c)(3), Internal Revenue Code
379-18   of 1986 (26 U.S.C. Sec. 501(c)(3)); and
379-19               (2)  is organized and operated as:
379-20                     (A)  a migrant, community, or homeless health
379-21   center under the authority of and in compliance with 42 U.S.C.
379-22   Section 254b or 254c; or
379-23                     (B)  a federally qualified health center under 42
379-24   U.S.C. Section 1396d(l)(2)(B).
379-25         Sec. 162.002.  LIMITATION ON PHYSICIAN FEES. A physician who
379-26   provides professional medical services for a health organization
379-27   certified under Section 162.001(c) shall provide those services
 380-1   free of charge, or at a reduced fee commensurate with the patient's
 380-2   ability to pay, in compliance with 42 U.S.C. Section 254b or 254c.
 380-3         Sec. 162.003.  REFUSAL TO CERTIFY; REVOCATION. On a
 380-4   determination that a health organization is established, organized,
 380-5   or operated in violation of or with the intent to violate this
 380-6   subtitle, the board:
 380-7               (1)  may refuse to certify the health organization on
 380-8   application for certification by the organization under Section
 380-9   162.001; and
380-10               (2)  shall revoke a certification made under Section
380-11   162.001 to that organization.
380-12            (Sections 162.004-162.050 reserved for expansion)
380-13            SUBCHAPTER B.  AUTHORITY TO FORM CERTAIN ENTITIES
380-14         Sec. 162.051.  AUTHORITY TO FORM CERTAIN JOINTLY OWNED
380-15   ENTITIES. (a)  Except as provided by Section 165.155, a physician
380-16   and an optometrist or therapeutic optometrist may, for a purpose
380-17   described by Subsection (b), organize, jointly own, and manage any
380-18   legal entity, including:
380-19               (1)  a partnership under the Texas Revised Partnership
380-20   Act (Article 6132b-1.01 et seq., Vernon's Texas Civil Statutes);
380-21               (2)  a limited partnership under the Texas Revised
380-22   Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil
380-23   Statutes); and
380-24               (3)  a limited liability company under the Texas
380-25   Limited Liability Company Act (Article 1528n, Vernon's Texas Civil
380-26   Statutes).
380-27         (b)  An entity authorized under Subsection (a) may:
 381-1               (1)  own real property, other physical facilities, or
 381-2   equipment for the delivery of health care services or management;
 381-3               (2)  lease, rent, or otherwise acquire the use of real
 381-4   property, other physical facilities, or equipment for the delivery
 381-5   of health care services or management; or
 381-6               (3) employ or otherwise use a person who is not a
 381-7   physician, optometrist, or therapeutic optometrist for the delivery
 381-8   of health care services or management.
 381-9         (c)  Only a physician, optometrist, or therapeutic
381-10   optometrist may own an interest in an entity authorized under
381-11   Subsection (a).  This subsection does not prohibit an entity from
381-12   making one or more payments to an owner's estate following the
381-13   owner's death under an agreement with the owner or as otherwise
381-14   authorized or required by law.
381-15            (Sections 162.052-162.100 reserved for expansion)
381-16             SUBCHAPTER C.  ANESTHESIA IN OUTPATIENT SETTING
381-17         Sec. 162.101.  DEFINITION. In this subchapter, "outpatient
381-18   setting" means a facility, clinic, center, office, or other setting
381-19   that is not part of a licensed hospital or a licensed ambulatory
381-20   surgical center.
381-21         Sec. 162.102.  RULES. (a)  The board by rule shall establish
381-22   the minimum standards for anesthesia services provided in an
381-23   outpatient setting by a person licensed by the board.
381-24         (b)  The rules adopted under this section must be designed to
381-25   protect the health, safety, and welfare of the public and include
381-26   requirements relating to:
381-27               (1)  general anesthesia, regional anesthesia, and
 382-1   monitored anesthesia care;
 382-2               (2)  patient evaluation, diagnosis, counseling, and
 382-3   preparation;
 382-4               (3)  patient monitoring to be performed and equipment
 382-5   to be used during a procedure and during post-procedure monitoring;
 382-6               (4)  emergency procedures, drugs, and equipment,
 382-7   including education, training, and certification of personnel, as
 382-8   appropriate, and including protocols for transfers to a hospital;
 382-9               (5)  the documentation necessary to demonstrate
382-10   compliance with this subchapter; and
382-11               (6)  the period in which protocols or procedures
382-12   covered by rules of the board shall be reviewed, updated, or
382-13   amended.
382-14         (c)  The board shall cooperate with the Board of Nurse
382-15   Examiners in the adoption of rules under this subchapter to
382-16   eliminate, to the extent possible, conflicts between the rules
382-17   adopted by each board.
382-18         Sec. 162.103.  APPLICABILITY. Rules adopted by the board
382-19   under this subchapter do not apply to:
382-20               (1)  an outpatient setting in which only local
382-21   anesthesia, peripheral nerve blocks, or both are used;
382-22               (2)  an outpatient setting in which only anxiolytics
382-23   and analgesics are used and only in doses that do not have the
382-24   probability of placing the patient at risk for loss of the
382-25   patient's life-preserving protective reflexes;
382-26               (3)  a licensed hospital, including an outpatient
382-27   facility of the hospital that is located separate from the
 383-1   hospital;
 383-2               (4)  a licensed ambulatory surgical center;
 383-3               (5)  a clinic located on land recognized as tribal land
 383-4   by the federal government and maintained or operated by a federally
 383-5   recognized Indian tribe or tribal organization as listed by the
 383-6   United States secretary of the interior under 25 U.S.C. Section
 383-7   479a-1 or as listed under a successor federal statute or
 383-8   regulation;
 383-9               (6)  a facility maintained or operated by a state or
383-10   local governmental entity;
383-11               (7)  a clinic directly maintained or operated by the
383-12   United States; or
383-13               (8)  an outpatient setting accredited by:
383-14                     (A)  the Joint Commission on Accreditation of
383-15   Healthcare Organizations relating to ambulatory surgical centers;
383-16                     (B)  the American Association for the
383-17   Accreditation of Ambulatory Surgery Facilities; or
383-18                     (C)  the Accreditation Association for Ambulatory
383-19   Health Care.
383-20         Sec. 162.104.  REGISTRATION REQUIRED. (a)  The board shall
383-21   require each physician who administers anesthesia or performs a
383-22   surgical procedure for which anesthesia services are provided in an
383-23   outpatient setting to annually register with the board on a form
383-24   prescribed by the board and to pay a fee to the board in an amount
383-25   established by the board.
383-26         (b)  The board shall coordinate the registration required
383-27   under this section with the registration required under Chapter 156
 384-1   so that the times of registration, payment, notice, and imposition
 384-2   of penalties for late payment are similar and provide a minimum of
 384-3   administrative burden to the board and to physicians.
 384-4         Sec. 162.105.  COMPLIANCE WITH ANESTHESIA RULES. (a)  A
 384-5   physician who practices medicine in this state and who administers
 384-6   anesthesia or performs a surgical procedure for which anesthesia
 384-7   services are provided in an outpatient setting shall comply with
 384-8   the rules adopted under this subchapter.
 384-9         (b)  The board may require a physician to submit and comply
384-10   with a corrective action plan to remedy or address any current or
384-11   potential deficiencies with the physician's provision of anesthesia
384-12   in an outpatient setting in accordance with this subtitle or rules
384-13   of the board.
384-14         Sec. 162.106.  INSPECTIONS. (a)  The board may conduct
384-15   inspections to enforce this subchapter, including inspections of an
384-16   office site and of documents of a physician's practice that relate
384-17   to the provision of anesthesia in an outpatient setting.  The board
384-18   may contract with another state agency or qualified person to
384-19   conduct the inspections.
384-20         (b)  Unless it would jeopardize an ongoing investigation, the
384-21   board shall provide at least five business days' notice before
384-22   conducting an on-site inspection under this section.
384-23         (c)  This section does not require the board to make an
384-24   on-site inspection of a physician's office.
384-25         Sec. 162.107.  REQUESTS FOR INSPECTION AND ADVISORY OPINION.
384-26   (a)  The board may consider a request by a physician for an on-site
384-27   inspection.  The board, on payment of a fee established by the
 385-1   board, may conduct the inspection and issue an advisory opinion.
 385-2         (b)  An advisory opinion issued by the board under this
 385-3   section is not binding on the board.  Except as provided by
 385-4   Subsection (c), the board may take any action under this subtitle
 385-5   relating to the situation addressed by the advisory opinion that
 385-6   the board considers appropriate.
 385-7         (c)  A physician who requests and relies on an advisory
 385-8   opinion of the board may use the opinion as mitigating evidence in
 385-9   an action or proceeding to impose an administrative penalty or
385-10   assess a civil penalty under this subtitle.  On receipt of proof of
385-11   reliance on an advisory opinion, the board or court, as
385-12   appropriate, shall consider the reliance and mitigate imposition of
385-13   an administrative penalty or assessment of a civil penalty
385-14   accordingly.
385-15            (Sections 162.108-162.150 reserved for expansion)
385-16                 SUBCHAPTER D.  PHYSICIAN CREDENTIALING
385-17         Sec. 162.151.  DEFINITIONS. In this subchapter:
385-18               (1)  "Core credentials data" means:
385-19                     (A)  name and other demographic data;
385-20                     (B)  professional education;
385-21                     (C)  professional training;
385-22                     (D)  licenses; and
385-23                     (E)  Educational Commission for Foreign Medical
385-24   Graduates certification.
385-25               (2)  "Credentials verification organization" means an
385-26   organization that is certified or accredited and organized to
385-27   collect, verify, maintain, store, and provide to health care
 386-1   entities a health care practitioner's verified credentials data,
 386-2   including all corrections, updates, and modifications to that data.
 386-3   For purposes of this subdivision, "certified" or "accredited"
 386-4   includes certification or accreditation by a nationally recognized
 386-5   accreditation organization.
 386-6               (3)  "Health care entity" means:
 386-7                     (A)  a health care facility or other health care
 386-8   organization licensed or certified to provide approved medical and
 386-9   allied health services in this state;
386-10                     (B)  an entity licensed by the Texas Department
386-11   of Insurance as a prepaid health care plan or health maintenance
386-12   organization or as an insurer to provide coverage for health care
386-13   services through a network of providers; or
386-14                     (C)  a health care provider entity accepting
386-15   delegated credentialing functions from a health maintenance
386-16   organization.
386-17               (4)  "Physician" means a holder of or applicant for a
386-18   license under this subtitle as a medical doctor or doctor of
386-19   osteopathy.
386-20         Sec. 162.152.  ASSOCIATIONS. Each provision of this
386-21   subchapter that applies to a health care entity also applies to an
386-22   association that represents federally qualified health centers. For
386-23   purposes of this section, "federally qualified health center" has
386-24   the meaning assigned by 42 U.S.C. Section 1396d(l)(2)(B), as
386-25   amended.
386-26         Sec. 162.153.  STANDARDIZED CREDENTIALS VERIFICATION PROGRAM.
386-27   (a)  The board shall develop standardized forms and guidelines for
 387-1   and administer:
 387-2               (1)  the collection, verification, correction,
 387-3   updating, modification, maintenance, and storage of information
 387-4   relating to physician credentials; and
 387-5               (2)  the release of that information to health care
 387-6   entities or designated credentials verification organizations
 387-7   authorized by the physician to receive that information.
 387-8         (b)  Except as provided by Subsection (c), a physician whose
 387-9   core credentials data is submitted to the board is not required to
387-10   resubmit the data when applying for practice privileges with a
387-11   health care entity.
387-12         (c)  A physician shall:
387-13               (1)  provide to the board any correction, update, or
387-14   modification of the physician's core credentials data not later
387-15   than the 30th day after the date the data on file is no longer
387-16   accurate; and
387-17               (2)  resubmit the physician's core credentials data
387-18   annually if the physician did not submit a correction, update, or
387-19   modification during the preceding year.
387-20         (d)  A health care entity that employs, contracts with, or
387-21   credentials physicians must use the board to obtain core
387-22   credentials data for items for which the board is designated or
387-23   accepted as a primary source by a national accreditation
387-24   organization.  A health care entity may act through its designated
387-25   credentials verification organization.
387-26         (e)  This section does not restrict the authority of a health
387-27   care entity to approve or deny an original or renewal application
 388-1   for hospital staff membership, clinical privileges, or managed care
 388-2   network participation.
 388-3         Sec. 162.154.  FURNISHING OF DATA TO HEALTH CARE ENTITY.  Not
 388-4   later than the 15th business day after the date the board receives
 388-5   a request for the data, the board shall make available to a health
 388-6   care entity or its designated credentials verification organization
 388-7   all core credentials data it collects on a physician, including any
 388-8   correction, update, or modification of that data, if authorized by
 388-9   the physician.
388-10         Sec. 162.155.  REVIEW OF DATA BY PHYSICIAN. (a)  Before
388-11   releasing a physician's core credentials data from its data bank
388-12   for the first time, the board shall provide to the affected
388-13   physician 15 business days to review the data and request
388-14   reconsideration or resolution of errors in or omissions from the
388-15   data.  The board shall include with the data any change or
388-16   clarification made by the physician.
388-17         (b)  The board shall notify a physician of any change to the
388-18   physician's core credentials data when a change is made or
388-19   initiated by a person other than the physician.
388-20         (c)  A physician may request to review the physician's core
388-21   credentials data collected at any time after the initial release of
388-22   information.  The board is not required to hold, release, or modify
388-23   any information because of the request.
388-24         Sec. 162.156.  DATA DUPLICATION PROHIBITED. (a)  A health
388-25   care entity may not collect or attempt to collect duplicate core
388-26   credentials data from a physician if the information is already on
388-27   file with the board.  This section does not restrict the right of a
 389-1   health care entity to request additional information not included
 389-2   in the core credentials data on file with the board that is
 389-3   necessary for the entity to credential the physician.  A health
 389-4   care entity or its designated credentials verification organization
 389-5   may collect any additional information required by the health care
 389-6   entity's credentialing process from a primary source of that
 389-7   information.
 389-8         (b)  A state agency may not collect or attempt to collect
 389-9   duplicate core credentials data from a physician if the information
389-10   is already on file with the board.  This section does not restrict
389-11   the right of a state agency to request additional information not
389-12   included in the core credentials data on file with the board that
389-13   the agency considers necessary for its specific credentialing
389-14   purposes.
389-15         (c)  The board by rule may except from Subsections (a) and
389-16   (b) a request for core credentials data that is necessary for a
389-17   health care entity to provide temporary privileges during the
389-18   credentialing process.
389-19         Sec. 162.157.  IMMUNITY.  A health care entity or its
389-20   designated credentials verification organization is immune from
389-21   liability arising from its reliance on data furnished by the board
389-22   under this subchapter.
389-23         Sec. 162.158.  RULES.  The board shall adopt rules as
389-24   necessary to develop and implement the standardized credentials
389-25   verification program established by this subchapter.
389-26         Sec. 162.159.  CONFIDENTIALITY.  The information collected,
389-27   maintained, or stored by the board under this subchapter is
 390-1   privileged and confidential and not subject to discovery, subpoena,
 390-2   or other means of legal compulsion for its release or to disclosure
 390-3   under Chapter 552, Government Code, except as otherwise provided by
 390-4   this subchapter.
 390-5         Sec. 162.160.  USE OF INDEPENDENT CONTRACTOR.  The board may
 390-6   contract with an independent contractor to collect, verify,
 390-7   maintain, store, or release information.  The contract must provide
 390-8   for board oversight and for the confidentiality of the information.
 390-9   If the board contracts with an independent entity that is not a
390-10   governmental unit to carry out this subchapter, the independent
390-11   entity is not immune from liability.
390-12         Sec. 162.161.  FEES. (a)  The board shall prescribe and
390-13   assess fees in amounts necessary to cover its cost of operating
390-14   under and administering this subchapter.
390-15         (b)  The board may waive a fee for a state agency that is
390-16   required to obtain core credentials data from the board and that
390-17   Section 162.156 prohibits from collecting duplicate data.
390-18         Sec. 162.162.  GIFTS, GRANTS, AND DONATIONS.  In addition to
390-19   any fees paid to the board or money appropriated to the board, the
390-20   board may receive and accept a gift, grant, donation, or other
390-21   thing of value from any source, including the United States or a
390-22   private source.
390-23            (Sections 162.163-162.200 reserved for expansion
390-24            SUBCHAPTER E.  EMPLOYMENT OF PHYSICIAN BY PRIVATE
390-25                             MEDICAL SCHOOL
390-26         Sec. 162.201.  EMPLOYMENT OF PHYSICIAN PERMITTED.  A private
390-27   nonprofit medical school that is certified under Section 162.203,
 391-1   that is accredited by the Liaison Committee on Medical Education,
 391-2   and that was appropriated funds by the legislature in the 75th
 391-3   Legislature, Regular Session, 1997, may retain, in fulfilling its
 391-4   educational mission, all or part of the professional income
 391-5   generated by a physician for medical services if the physician is
 391-6   employed as a faculty member of the school and provides medical
 391-7   services as part of the physician's responsibilities.
 391-8         Sec. 162.202.  COMMITTEE ESTABLISHED BY SCHOOL. (a)  A
 391-9   private medical school subject to this subchapter shall establish a
391-10   committee consisting of at least five actively practicing
391-11   physicians who provide care in the clinical program of the private
391-12   medical school.  The committee shall approve existing policies, or
391-13   adopt new policies if none exist, to ensure that a physician whose
391-14   professional income is retained under Section 162.201 is exercising
391-15   the physician's independent medical judgment in providing care to
391-16   patients in the school's clinical programs.
391-17         (b)  The policies adopted under this section must include
391-18   policies relating to credentialing, quality assurance, utilization
391-19   review, peer review, medical decision-making, governance of the
391-20   committee, and due process.
391-21         (c)  Each member of a committee under this section shall
391-22   provide to the board biennially a signed and verified statement
391-23   indicating that the member:
391-24               (1)  is licensed by the board;
391-25               (2)  will exercise independent medical judgment in all
391-26   committee matters, specifically in matters relating to
391-27   credentialing, quality assurance, utilization review, peer review,
 392-1   medical decision-making, and due process;
 392-2               (3)  will exercise the member's best efforts to ensure
 392-3   compliance with the private medical school's policies that are
 392-4   adopted or established by the committee; and
 392-5               (4)  shall report immediately to the board any action
 392-6   or event that the member reasonably and in good faith believes
 392-7   constitutes a compromise of the independent judgment of a physician
 392-8   in caring for a patient in the private medical school's clinical
 392-9   program or in carrying out the member's duties as a committee
392-10   member.
392-11         (d)  The board shall adopt rules requiring the disclosure of
392-12   financial conflicts of interest by a committee member.
392-13         Sec. 162.203.  CERTIFICATION OF SCHOOL BY BOARD.  (a) A
392-14   private school that retains a physician's professional income under
392-15   Section 162.201 must be certified by the board as being in
392-16   compliance with this subchapter.
392-17         (b)  The board shall prescribe an application form to be
392-18   provided to the school and may adopt rules as necessary to
392-19   administer this subchapter.
392-20         (c)  The board may prescribe and assess a fee for the
392-21   certification of a school and for investigation and review of the
392-22   school in an amount not to exceed the fee assessed on an
392-23   organization described by Section 162.001.
392-24         Sec. 162.204.  BIENNIAL REPORT.  A private medical school
392-25   certified under Section 162.203 shall provide to the board a
392-26   biennial report certifying that the school is in compliance with
392-27   this subchapter.
 393-1         Sec. 162.205.  SUSPENSION OR REVOCATION OF CERTIFICATION.  If
 393-2   the board determines at any time that a private medical school
 393-3   certified under Section 162.203 has failed to comply with this
 393-4   subchapter, the board may suspend or revoke the school's
 393-5   certification.
 393-6         Sec. 162.206.  LIMITATION ON SCHOOL'S AUTHORITY.  A private
 393-7   medical school's authority to retain a physician's professional
 393-8   income does not apply to a physician providing care in a facility
 393-9   owned or operated by the school that is established outside the
393-10   school's historical geographical service area as it existed June
393-11   19, 1999.
393-12         Sec. 162.207.  APPLICATION OF SUBCHAPTER.  This subchapter
393-13   does not:
393-14               (1)  affect the reporting requirements under Section
393-15   160.003; or
393-16               (2)  apply to a private medical school certified under
393-17   this subchapter if all or substantially all of the school's assets
393-18   are sold.
393-19         (b)  The following are repealed:
393-20               (1)  Section 1, Chapter 796, Acts of the 76th
393-21   Legislature, Regular Session, 1999;
393-22               (2)  Section 2, Chapter 1468, Acts of the 76th
393-23   Legislature, Regular Session, 1999;
393-24               (3)  Section 2, Chapter 1275, Acts of the 76th
393-25   Legislature, Regular Session, 1999; and
393-26               (4)  Section 1, Chapter 948, Acts of the 76th
393-27   Legislature, Regular Session, 1999.
 394-1         SECTION 14.034. (a)  Section 164.053(a), Occupations Code, is
 394-2   amended to conform to Section 3, Chapter 1271, Acts of the 76th
 394-3   Legislature, Regular Session, 1999, to read as follows:
 394-4         (a)  For purposes of Section 164.052(a)(5), unprofessional or
 394-5   dishonorable conduct likely to deceive or defraud the public
 394-6   includes conduct in which a physician:
 394-7               (1)  commits an act that violates the laws of this
 394-8   state if the act is connected with the physician's practice of
 394-9   medicine;
394-10               (2)  fails to keep complete and accurate records of
394-11   purchases and disposals of:
394-12                     (A)  drugs listed in Chapter 481, Health and
394-13   Safety Code; or
394-14                     (B)  controlled substances scheduled in the
394-15   Comprehensive Drug Abuse Prevention and Control Act of 1970 (21
394-16   U.S.C. Section 801 et seq.);
394-17               (3)  writes prescriptions for or dispenses to a person
394-18   who:
394-19                     (A)  is known to be an abuser of narcotic drugs,
394-20   controlled substances, or dangerous drugs; or
394-21                     (B)  the physician should have known was an
394-22   abuser of narcotic drugs, controlled substances, or dangerous
394-23   drugs;
394-24               (4)  writes false or fictitious prescriptions for:
394-25                     (A)  dangerous drugs as defined by Chapter 483,
394-26   Health and Safety Code; or
394-27                     (B)  controlled substances scheduled in Chapter
 395-1   481, Health and Safety Code, or the Comprehensive Drug Abuse
 395-2   Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.);
 395-3               (5)  prescribes or administers a drug or treatment that
 395-4   is nontherapeutic in nature or nontherapeutic in the manner the
 395-5   drug or treatment is administered or prescribed;
 395-6               (6)  prescribes, administers, or dispenses in a manner
 395-7   inconsistent with public health and welfare:
 395-8                     (A)  dangerous drugs as defined by Chapter 483,
 395-9   Health and Safety Code; or
395-10                     (B)  controlled substances scheduled in Chapter
395-11   481, Health and Safety Code, or the Comprehensive Drug Abuse
395-12   Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.);
395-13               (7)  violates Section 311.0025, Health and Safety Code
395-14   [persistently or flagrantly overcharges or overtreats patients];
395-15               (8)  fails to supervise adequately the activities of
395-16   those acting under the supervision of the physician; or
395-17               (9)  delegates professional medical responsibility or
395-18   acts to a person if the delegating physician knows or has reason to
395-19   know that the person is not qualified by training, experience, or
395-20   licensure to perform the responsibility or acts.
395-21         (b)  Section 3, Chapter 1271, Acts of the 76th Legislature,
395-22   Regular Session, 1999, is repealed.
395-23         SECTION 14.035. Section 165.002(b), Occupations Code, is
395-24   amended to conform more closely to the law from which it was
395-25   derived to read as follows:
395-26         (b)  A proceeding under this subchapter [section] is subject
395-27   to Chapter 2001, Government Code.
 396-1            PART 4.  CHANGES RELATING TO SUBTITLE C, TITLE 3,
 396-2                            OCCUPATIONS CODE
 396-3         SECTION 14.051. (a)  Sections 201.159(c) and (d), Occupations
 396-4   Code, are amended to conform to Section 3, Chapter 20, Acts of the
 396-5   76th Legislature, Regular Session, 1999, to read as follows:
 396-6         (c)  [On May 1 of each year, the secretary-treasurer of the
 396-7   board shall send an official copy of the register to the secretary
 396-8   of state to be kept as a permanent record.]
 396-9         [(d)]  The information recorded in the register is prima
396-10   facie evidence of the matters contained in the register.  A
396-11   certified copy of the register with the seal of the board [or the
396-12   seal of the secretary of state] is admissible as evidence in any
396-13   court of this state.
396-14         (b)  Section 3, Chapter 20, Acts of the 76th Legislature,
396-15   Regular Session, 1999, is repealed.
396-16         SECTION 14.0515. Section 201.554, Occupations Code, is
396-17   amended to more accurately reflect the law from which it was
396-18   derived to read as follows:
396-19         Sec. 201.554.  PENALTY TO BE PAID OR HEARING REQUESTED. (a)
396-20   Not later than the 20th day after the date a person receives the
396-21   notice under Section 201.553, the person may:
396-22               (1)  accept in writing the enforcement committee's
396-23   determination and recommended administrative penalty; or
396-24               (2)  make a written request for a hearing on the
396-25   occurrence of the violation, the amount of the penalty, or both
396-26   [that determination].
396-27         (b)  If the person accepts the enforcement committee's
 397-1   determination and recommended penalty, the board by order shall
 397-2   approve the determination and impose the recommended penalty.
 397-3       SECTION 14.052. (a)  Section 202.203(b), Occupations Code, is
 397-4   amended to conform to Section 1, Chapter 788, Acts of the 76th
 397-5   Legislature, Regular Session, 1999, to read as follows:
 397-6         (b)  If a written complaint is filed with the board, the
 397-7   board, at least quarterly and until final disposition of the
 397-8   complaint, shall notify the parties to the complaint of the status
 397-9   of the complaint unless the notification would jeopardize an
397-10   undercover investigation.  The board may provide a copy of the
397-11   complaint to the license holder unless providing a copy would
397-12   jeopardize an investigation.
397-13         (b)  Section 1, Chapter 788, Acts of the 76th Legislature,
397-14   Regular Session, 1999, is repealed.
397-15         SECTION 14.053. (a)  Subchapter D, Chapter 204, Occupations
397-16   Code, is amended to conform to Section 2, Chapter 137, Acts of the
397-17   76th Legislature, Regular Session, 1999, by adding Section 204.1565
397-18   to read as follows:
397-19         Sec. 204.1565.  INFORMAL CONTINUING MEDICAL EDUCATION. (a)
397-20   In this section, "site serving a medically underserved population"
397-21   has the meaning assigned by Section 157.052.
397-22         (b)  The physician assistant board by rule shall permit a
397-23   license holder to complete half of any informal continuing medical
397-24   education hours required to renew a license under this chapter by
397-25   providing volunteer medical services at a site serving a medically
397-26   underserved population, other than a site that is a primary
397-27   practice site of the license holder.
 398-1         (b)  Section 2, Chapter 137, Acts of the 76th Legislature,
 398-2   Regular Session, 1999, is repealed.
 398-3         SECTION 14.054. (a)  Section 204.202, Occupations Code, is
 398-4   amended to conform to Section 7, Chapter 428, Acts of the 76th
 398-5   Legislature, Regular Session, 1999, by adding Subsection (d) to
 398-6   read as follows:
 398-7         (d)  A physician assistant's signature attesting to the
 398-8   provision of a service the physician assistant is legally
 398-9   authorized to provide satisfies any documentation requirement for
398-10   that service established by a state agency.
398-11         (b)  Section 7, Chapter 428, Acts of the 76th Legislature,
398-12   Regular Session, 1999, is repealed.
398-13         SECTION 14.055. Section 204.208(b), Occupations Code, is
398-14   amended to conform to Section 2, Chapter 908, Acts of the 76th
398-15   Legislature, Regular Session, 1999, to read as follows:
398-16         (b)  Sections 160.002, 160.003, 160.006, 160.007(d), 160.009,
398-17   160.013, [and] 160.014, and 160.015 apply to medical peer review
398-18   relating to the practice of a physician assistant.
398-19         SECTION 14.056. (a)  Section 205.052, Occupations Code, is
398-20   amended to conform to Section 2, Chapter 443, Acts of the 76th
398-21   Legislature, Regular Session, 1999, to read as follows:
398-22         Sec. 205.052.  PUBLIC MEMBER ELIGIBILITY. A person is not
398-23   eligible for appointment as a public member of the acupuncture
398-24   board if the person or the person's spouse:
398-25               (1)  is registered, certified, or licensed by an
398-26   occupational regulatory agency in the field of health care;
398-27               (2)  is employed by or participates in the management
 399-1   of a business entity or other organization regulated by the medical
 399-2   board or receiving funds from the medical board or acupuncture
 399-3   board;
 399-4               (3)  owns or controls, directly or indirectly, more
 399-5   than a 10 percent interest in a business entity or other
 399-6   organization regulated by the medical board or acupuncture board or
 399-7   receiving funds from the medical board; [or]
 399-8               (4)  uses or receives a substantial amount of tangible
 399-9   goods, services, or funds from the medical board or acupuncture
399-10   board, other than compensation or reimbursement authorized by law
399-11   for acupuncture board membership, attendance, or expenses; or
399-12               (5)  owns, operates, or has a financial interest in a
399-13   school of acupuncture.
399-14         (b)  Section 205.053, Occupations Code, is amended to conform
399-15   to Section 2, Chapter 443, Acts of the 76th Legislature, Regular
399-16   Session, 1999, by amending Subsections (b) and (c) and adding
399-17   Subsection (e) to read as follows:
399-18         (b)  An officer, board member, employee, or paid consultant
399-19   of a Texas trade association in the field of health care may not be
399-20   a member of the acupuncture board or an employee of the medical
399-21   board who is exempt from the state's position classification plan
399-22   or is compensated at or above the amount prescribed by the General
399-23   Appropriations Act for step 1, salary group A17, of the position
399-24   classification salary schedule.
399-25         (c)  A person who is the spouse of an officer, board member,
399-26   manager, or paid consultant of a Texas trade association in the
399-27   field of health care may not be a member of the acupuncture board
 400-1   and may not be an employee of the medical board who is exempt from
 400-2   the state's position classification plan or is compensated at or
 400-3   above the amount prescribed by the General Appropriations Act for
 400-4   step 1, salary group A17, of the position classification salary
 400-5   schedule.
 400-6         (e)  A person may not serve on the acupuncture board if the
 400-7   person owns, operates, or has a financial interest in a school of
 400-8   acupuncture.
 400-9         (c)  Section 2, Chapter 443, Acts of the 76th Legislature,
400-10   Regular Session, 1999, is repealed.
400-11         SECTION 14.057. (a)  Section 205.203(b), Occupations Code, is
400-12   amended to conform to Section 3, Chapter 443, Acts of the 76th
400-13   Legislature, Regular Session, 1999, to read as follows:
400-14         (b)  To be eligible for the examination, an applicant must:
400-15               (1)  be at least 21 years of age;
400-16               (2)  have completed at least 60 [48] semester hours of
400-17   college courses, including basic science courses as determined by
400-18   the acupuncture board; and
400-19               (3)  be a graduate of an acupuncture school with
400-20   entrance requirements and a course of instruction that meet
400-21   standards set under Section 205.206.
400-22         (b)  Subchapter E, Chapter 205, Occupations Code, is amended
400-23   to conform to Section 3, Chapter 443, Acts of the 76th Legislature,
400-24   Regular Session, 1999, by adding Section 205.2045 to read as
400-25   follows:
400-26         Sec. 205.2045.  APPEARANCE OF APPLICANT BEFORE ACUPUNCTURE
400-27   BOARD. An applicant for a license to practice acupuncture may not
 401-1   be required to appear before the acupuncture board or a committee
 401-2   of the acupuncture board unless the application raises questions
 401-3   concerning:
 401-4               (1)  a physical or mental impairment of the applicant;
 401-5               (2)  a criminal conviction of the applicant; or
 401-6               (3)  revocation of a professional license held by the
 401-7   applicant.
 401-8         (c)  Section 3, Chapter 443, Acts of the 76th Legislature,
 401-9   Regular Session, 1999, is repealed.
401-10         SECTION 14.058. (a)  Subchapter F, Chapter 205, Occupations
401-11   Code, is amended to conform to Section 4, Chapter 443, Acts of the
401-12   76th Legislature, Regular Session, 1999, by adding Section 205.255
401-13   to read as follows:
401-14         Sec. 205.255.  CONTINUING EDUCATION. (a)  The acupuncture
401-15   board by rule may require a license holder to complete a certain
401-16   number of hours of continuing education courses approved by the
401-17   acupuncture board to renew a license.
401-18         (b)  The acupuncture board shall consider the approval of a
401-19   course conducted by:
401-20               (1)  a knowledgeable health care provider; or
401-21               (2)  a reputable school, state, or professional
401-22   organization.
401-23         (b)  Section 4, Chapter 443, Acts of the 76th Legislature,
401-24   Regular Session, 1999, is repealed.
401-25         SECTION 14.059. (a)  Section 205.303(a), Occupations Code, is
401-26   amended to conform to Section 1, Chapter 443, Acts of the 76th
401-27   Legislature, Regular Session, 1999, to read as follows:
 402-1         (a)  The medical board may certify a person as an acudetox
 402-2   specialist under this section if the person:
 402-3               (1)  provides to the medical board documentation that
 402-4   the person:
 402-5                     (A)  is a certified social worker, licensed
 402-6   professional counselor, licensed psychologist, licensed chemical
 402-7   dependency counselor, licensed vocational nurse, or licensed
 402-8   registered nurse; and
 402-9                     (B)  has successfully completed a training
402-10   program in acupuncture detoxification that meets guidelines
402-11   approved by the medical board; and
402-12               (2)  pays a certification fee in an amount set by the
402-13   medical board.
402-14         (b)  Section 1, Chapter 443, Acts of the 76th Legislature,
402-15   Regular Session, 1999, is repealed.
402-16         SECTION 14.060.  Section 205.304, Occupations Code, is
402-17   amended to conform to Section 2, Chapter 908, Acts of the 76th
402-18   Legislature, Regular Session, 1999, to read as follows:
402-19         Sec. 205.304.  PROFESSIONAL REVIEW ACTION. Sections 160.002,
402-20   160.003, 160.006, 160.007(d), 160.013, [and] 160.014, and 160.015
402-21   apply to professional review actions relating to the practice of
402-22   acupuncture by an acupuncturist or acupuncturist student.
402-23                PART 5.  CHANGES RELATING TO SUBTITLE D,
402-24                        TITLE 3, OCCUPATIONS CODE
402-25         SECTION 14.071. (a)  Section 251.004, Occupations Code, is
402-26   amended to conform to Section 18, Chapter 627, Acts of the 76th
402-27   Legislature, Regular Session, 1999, to read as follows:
 403-1         Sec. 251.004.  EXEMPTION FROM PRACTICE OF DENTISTRY. (a)  A
 403-2   person does not practice dentistry as provided by Section 251.003
 403-3   if the person is:
 403-4               (1)  a faculty member of a reputable dental or dental
 403-5   hygiene school in which the member performs services for the sole
 403-6   benefit of the school;
 403-7               (2)  a student of a reputable dental school who
 403-8   performs the student's operations without pay, except for actual
 403-9   cost of materials, in the presence of and under the direct personal
403-10   supervision of a demonstrator or teacher who is a faculty member of
403-11   a reputable dental school;
403-12               (3)  a person:
403-13                     (A)  who performs laboratory work only on inert
403-14   matter; and
403-15                     (B)  who does not solicit or obtain work by any
403-16   means from a person who is not a licensed dentist engaged in the
403-17   practice of dentistry and does not act as the agent or solicitor
403-18   of, and does not have any interest in, a dental office or practice
403-19   or the receipts of a dental office or practice;
403-20               (4)  a physician licensed in this state who does not
403-21   represent that the person is practicing dentistry, including a
403-22   physician who extracts teeth or applies pain relief in the regular
403-23   practice of the physician's profession;
403-24               (5)  a dental hygienist:
403-25                     (A)  who is authorized to practice dental hygiene
403-26   in this state; and
403-27                     (B)  who practices dental hygiene in strict
 404-1   conformity with the state law regulating the practice of dental
 404-2   hygiene;
 404-3               (6)  a person who is a member of an established church
 404-4   and practices healing by prayer only;
 404-5               (7)  an employee of a licensed dentist in this state
 404-6   who makes dental x-rays in the dental office under the supervision
 404-7   of the dentist;
 404-8               (8)  a Dental Health Service Corporation chartered
 404-9   under Section A(1), Article 2.01, Texas Non-Profit Corporation Act
404-10   (Article 1396-2.01, Vernon's Texas Civil Statutes);
404-11               (9)  a dental intern or dental resident as defined and
404-12   regulated by board rules;
404-13               (10)  a student:
404-14                     (A)  who is in a dental hygiene program
404-15   accredited by the Commission on Dental Accreditation of the
404-16   American Dental Association and operated at an accredited
404-17   institution of higher education;
404-18                     (B)  who practices dental hygiene without pay
404-19   under the general supervision of a dentist and under the
404-20   supervision of a demonstrator or teacher who is a faculty member of
404-21   the program:
404-22                           (i)  in a clinic operated for the sole
404-23   benefit of the program's institution of higher education; or
404-24                           (ii)  in a clinic operated by a government
404-25   or nonprofit organization that serves underserved populations as
404-26   determined by board rule; and
404-27                     (C)  who practices in strict conformity with
 405-1   state law regulating the practice of dental hygiene;
 405-2               (11)  a dental assistant who performs duties permitted
 405-3   under Chapter 265, in strict conformity with state law;  [or]
 405-4               (12)  a dentist or dental hygienist licensed by another
 405-5   state or a foreign country who performs a clinical procedure only
 405-6   as a demonstration for professional and technical education
 405-7   purposes, if the dentist or dental hygienist first obtains from the
 405-8   board a temporary license for that purpose;
 405-9               (13)  a dental hygienist who is a faculty member of a
405-10   dental or dental hygiene school while practicing dental hygiene:
405-11                     (A)  under the supervision of a dentist licensed
405-12   in this state or of a teacher or demonstrator who is a dentist
405-13   faculty member of the school; and
405-14                     (B)  in strict conformity with state law
405-15   regulating the practice of dental hygiene;
405-16               (14)  a dentist who is in a remedial training program
405-17   sponsored by the Commission on Dental Accreditation of the American
405-18   Dental Association at an accredited dental or dental hygiene
405-19   school;
405-20               (15)  a dental hygienist who is in a remedial training
405-21   program sponsored by the Commission on Dental Accreditation of the
405-22   American Dental Association at an accredited dental or dental
405-23   hygiene school and who acts in strict conformity with state law
405-24   regulating the practice of dental hygiene, except that supervision
405-25   may be provided by a demonstrator or teacher who is a dentist
405-26   member of the program;
405-27               (16)  a dentist who is not licensed in this state and
 406-1   who is taking the dental clinical examination offered by the
 406-2   Western Regional Examining Board in this state;
 406-3               (17)  a dental hygienist who is not licensed in this
 406-4   state and who is taking the dental hygiene clinical examination
 406-5   offered by the Western Regional Examining Board in this state if
 406-6   participation is in strict conformity with state law regulating the
 406-7   practice of dental hygiene, except that supervision may be provided
 406-8   by a dentist whose services are secured by the Western Regional
 406-9   Examining Board;
406-10               (18)  a dentist whose license is in retired status or
406-11   who is licensed in another state and is attending a continuing
406-12   education clinical program offered at a dental or dental hygiene
406-13   school accredited by the Commission on Dental Accreditation of the
406-14   American Dental Association; or
406-15               (19)  a dental hygienist whose dental hygienist license
406-16   is in  retired status or who is licensed in another state and is
406-17   attending a continuing education clinical program offered at a
406-18   dental or dental hygiene school accredited by the Commission on
406-19   Dental Accreditation of the American Dental Association if tasks
406-20   are performed in strict conformity with state law regulating the
406-21   practice of dental hygiene, except that supervision may be provided
406-22   by a dentist member of the program.
406-23         (b)  A person's activities described by Subsections (a)(14),
406-24   (15), and (18) are considered not to be the practice of dentistry
406-25   only to the extent the person is participating in the specified
406-26   program.
406-27         (b)  Section 18, Chapter 627, Acts of the 76th Legislature,
 407-1   Regular Session, 1999, is repealed.
 407-2         SECTION 14.072. (a)  Sections 252.003(b) and (c), Occupations
 407-3   Code, are amended to conform to Section 1, Chapter 627, Acts of the
 407-4   76th Legislature, Regular Session, 1999, to read as follows:
 407-5         (b)  An officer, employee, or paid consultant of a Texas
 407-6   trade association in the field of health care may not be a member
 407-7   or employee of the board who is exempt from the state's position
 407-8   classification plan or is compensated at or above the amount
 407-9   prescribed by the General Appropriations Act for B9 [step 1, salary
407-10   group A17,] of the position classification salary schedule.
407-11         (c)  A person who is the spouse of an officer, manager, or
407-12   paid consultant of a Texas trade association in the field of health
407-13   care may not be a board member and may not be a board employee who
407-14   is exempt from the state's position classification plan or is
407-15   compensated at or above the amount prescribed by the General
407-16   Appropriations Act for B9 [step 1, salary group A17,] of the
407-17   position classification salary schedule.
407-18         (b)  Section 1, Chapter 627, Acts of the 76th Legislature,
407-19   Regular Session, 1999, is repealed.
407-20         SECTION 14.073. (a)  Section 253.003(b), Occupations Code, is
407-21   amended to conform to Section 5, Chapter 627, Acts of the 76th
407-22   Legislature, Regular Session, 1999, to read as follows:
407-23         (b)  The board may employ:
407-24               (1)  committees, clerks, advisors, consultants,
407-25   dentists, hygienists, or examiners to assist the board in
407-26   performing its duties; and
407-27               (2)  other persons determined necessary:
 408-1                     (A)  to assist the local prosecuting officers of
 408-2   a county in the enforcement of state laws prohibiting the unlawful
 408-3   practice of dentistry; and
 408-4                     (B)  to carry out other purposes for which funds
 408-5   are appropriated.
 408-6         (b)  Section 5, Chapter 627, Acts of the 76th Legislature,
 408-7   Regular Session, 1999, is repealed.
 408-8         SECTION 14.074. (a)  Chapter 254, Occupations Code, is
 408-9   amended to conform to Section 17, Chapter 627, Acts of the 76th
408-10   Legislature, Regular Session, 1999, by adding Section 254.0011 to
408-11   read as follows:
408-12         Sec. 254.0011.  RULES RELATING TO CONTROL OF DENTAL PRACTICE.
408-13   (a)  The board may adopt rules relating to the practice of
408-14   dentistry as described by Section 251.003(a)(9) to prohibit a
408-15   dentist from engaging in contracts that allow a person who is not a
408-16   dentist to influence or interfere with the exercise of the
408-17   dentist's independent professional judgment.
408-18         (b)  Rules adopted by the board under this subtitle may not
408-19   preclude a dentist's right to contract with a management service
408-20   organization.  Rules affecting contracts for provision of
408-21   management services apply the same to dentists contracting with
408-22   management service organizations and to dentists otherwise
408-23   contracting for management services.
408-24         (b)  Section 17, Chapter 627, Acts of the 76th Legislature,
408-25   Regular Session, 1999, is repealed.
408-26         SECTION 14.075. (a)  Section 254.004(b), Occupations Code, is
408-27   amended to conform to Section 16, Chapter 627, Acts of the 76th
 409-1   Legislature, Regular Session, 1999, to read as follows:
 409-2         (b)  The amount of the dental application [examination] fee
 409-3   and dentist annual renewal fee is the amount set by the board under
 409-4   Subsection (a) and an additional charge of $200. Of each fee
 409-5   increase collected under this subsection, $50 shall be deposited to
 409-6   the credit of the foundation school fund and $150 shall be
 409-7   deposited to the credit of the general revenue fund.
 409-8         (b)  Section 16, Chapter 627, Acts of the 76th Legislature,
 409-9   Regular Session, 1999, is repealed.
409-10         SECTION 14.076. (a)  Section 254.006, Occupations Code, is
409-11   amended to conform to Section 3, Chapter 1204, Acts of the 76th
409-12   Legislature, Regular Session, 1999, and Section 12, Chapter 627,
409-13   Acts of the 76th Legislature, Regular Session, 1999, by amending
409-14   Subsection (b) and adding Subsection (c) to read as follows:
409-15         (b)  Investigation files and other records are confidential
409-16   and shall be divulged only to the persons investigated at the
409-17   completion of the investigation.  The board may share investigation
409-18   files and other records with another state regulatory agency or a
409-19   local, state, or federal law enforcement agency [during a joint
409-20   investigation or in determining the feasibility of conducting an
409-21   investigation].
409-22         (c)  The exception from public disclosure of investigation
409-23   files and records provided by this section does not apply to the
409-24   disclosure of a disciplinary action of the board, including:
409-25               (1)  the revocation or suspension of a license;
409-26               (2)  the imposition of a fine on a license holder;
409-27               (3)  the placement on probation with conditions of a
 410-1   license holder whose license has been suspended;
 410-2               (4)  the reprimand of a license holder; or
 410-3               (5)  the issuance of a warning letter to a license
 410-4   holder.
 410-5         (b)  Section 254.007(a), Occupations Code, is amended to
 410-6   conform to Section 12, Chapter 627, Acts of the 76th Legislature,
 410-7   Regular Session, 1999, to read as follows:
 410-8         (a)  The board shall keep records of the name, permanent
 410-9   address [residence], and place of business of each person
410-10   authorized under this subtitle to practice dentistry, dental
410-11   hygiene, or another profession or business under the board's
410-12   jurisdiction as provided by law.
410-13         (c)  Section 256.105(a), Occupations Code, is amended to
410-14   conform to Section 12, Chapter 627, Acts of the 76th Legislature,
410-15   Regular Session, 1999, to read as follows:
410-16         (a)  Each dentist, dental hygienist, dental laboratory, and
410-17   dental technician licensed or registered with the board shall
410-18   timely notify the board in writing of:
410-19               (1)  any change of address of the person's place of
410-20   business; and
410-21               (2)  any change of employers for the dentist, dental
410-22   hygienist, dental laboratory, or dental technician, and any change
410-23   of owners for the dental laboratory.
410-24         (d)  The following are repealed:
410-25               (1)  Section 3, Chapter 1204, Acts of the 76th
410-26   Legislature, Regular Session, 1999; and
410-27               (2)  Section 12, Chapter 627, Acts of the 76th
 411-1   Legislature, Regular Session, 1999.
 411-2         SECTION 14.077. (a)  Section 254.008(a), Occupations Code, is
 411-3   amended to conform to Section 26, Chapter 627, Acts of the 76th
 411-4   Legislature, Regular Session, 1999, to read as follows:
 411-5         (a)  In the absence of fraud, conspiracy, or malice, a member
 411-6   of the board, a full-time or part-time employee of the board, a
 411-7   person who contracts with the board, a witness called to testify by
 411-8   the board, or a consultant or hearing officer appointed by the
 411-9   board is not liable or subject to suit in a civil action for any
411-10   damage caused by the person for an investigation, report,
411-11   recommendation, statement, evaluation, finding, order, or award
411-12   made in the performance of the person's official duties.
411-13         (b)  Section 26, Chapter 627, Acts of the 76th Legislature,
411-14   Regular Session, 1999, is repealed.
411-15         SECTION 14.078. (a)  Section 255.008(a), Occupations Code, is
411-16   amended to conform to Section 15, Chapter 627, Acts of the 76th
411-17   Legislature, Regular Session, 1999, to read as follows:
411-18         (a)  The board shall develop and implement policies that
411-19   provide the public with a reasonable opportunity to appear before
411-20   the board and to speak on any issue under the board's jurisdiction,
411-21   except to the extent the communication would be ex parte under any
411-22   law.
411-23         (b)  Section 15, Chapter 627, Acts of the 76th Legislature,
411-24   Regular Session, 1999, is repealed.
411-25         SECTION 14.079. (a)  Section 256.002, Occupations Code, is
411-26   amended to conform to Sections 2 and 3, Chapter 627, Acts of the
411-27   76th Legislature, Regular Session, 1999, to read as follows:
 412-1         Sec. 256.002.  MINIMUM QUALIFICATIONS OF DENTAL APPLICANT.
 412-2   (a) An applicant for a license to practice dentistry must:
 412-3               (1)  be at least 21 years of age;
 412-4               (2)  be [present evidence] of good moral character; and
 412-5               (3)  present proof of:
 412-6                     (A)  graduation from a dental school accredited
 412-7   by the Commission on Dental Accreditation of the American Dental
 412-8   Association; or
 412-9                     (B)  graduation from a dental school that is not
412-10   accredited by the commission and successful completion of training
412-11   in an American Dental Association approved specialty in an
412-12   education program accredited by the commission that consists of at
412-13   least two years of training as specified by the Council on Dental
412-14   Education.
412-15         (b)  The board shall grant a dental license to an applicant
412-16   who:
412-17               (1)  meets the qualifications of this section;
412-18               (2)  pays an application [examination] fee set by the
412-19   board; and
412-20               (3)  satisfactorily passes the examination required by
412-21   the board.
412-22         (b)  Section 256.003(d), Occupations Code, is amended to
412-23   conform to Section 2, Chapter 627, Acts of the 76th Legislature,
412-24   Regular Session, 1999, to read as follows:
412-25         (d)  The board shall have the written portion of the board's
412-26   jurisprudence examination validated by an independent testing
412-27   professional.
 413-1         (c)  Section 256.005, Occupations Code, is amended to conform
 413-2   to Section 2, Chapter 627, Acts of the 76th Legislature, Regular
 413-3   Session, 1999, by adding Subsection (d) to read as follows:
 413-4         (d)  If the board contracts with an independent or regional
 413-5   testing service, this section does not apply.  The contract with
 413-6   the testing service must provide for the notification of results as
 413-7   provided by Subsection (a).
 413-8         (d)  Section 257.005(a), Occupations Code, is amended to
 413-9   conform to Sections 2 and 23, Chapter 627, Acts of the 76th
413-10   Legislature, Regular Session, 1999, to read as follows:
413-11         (a)  The board shall develop a mandatory continuing education
413-12   program for licensed dentists and dental hygienists.  The board by
413-13   rule shall require a license holder to complete at least 12 [36]
413-14   hours of continuing education for [in] each annual registration
413-15   [three-year] period to renew the license for a subsequent annual
413-16   period [maintain the person's license].
413-17         (e)  Section 256.004, Occupations Code, is repealed to
413-18   conform to Section 2, Chapter 627, Acts of the 76th Legislature,
413-19   Regular Session, 1999.
413-20         (f)  Sections 2, 3, and 23, Chapter 627, Acts of the 76th
413-21   Legislature, Regular Session, 1999, are repealed.
413-22         SECTION 14.080. (a)  Section 256.053, Occupations Code, is
413-23   amended to conform to Section 19, Chapter 627, Acts of the 76th
413-24   Legislature, Regular Session, 1999, to read as follows:
413-25         Sec. 256.053.  ELIGIBILITY FOR LICENSE. (a) An [To qualify
413-26   for a license, an] applicant for a license to practice dental
413-27   hygiene in this state must be:
 414-1               (1)  at least 18 years of age;
 414-2               (2)  of good moral character;
 414-3               (3)  a graduate of an accredited high school or hold a
 414-4   certificate of high school equivalency; and
 414-5               (4) [(3)]  a graduate of a recognized school of
 414-6   dentistry or dental hygiene accredited by the Commission on Dental
 414-7   Accreditation of the American Dental Association and approved by
 414-8   the board.
 414-9         (b)  A school of dentistry or dental hygiene described by
414-10   Subsection (a)(4) must include at least two full academic years of
414-11   instruction or its equivalent at the postsecondary level.
414-12         (b)  Section 19, Chapter 627, Acts of the 76th Legislature,
414-13   Regular Session, 1999, is repealed.
414-14         SECTION 14.081. (a)  Section 256.054, Occupations Code, is
414-15   amended to conform to Section 22, Chapter 627, Acts of the 76th
414-16   Legislature, Regular Session, 1999, to read as follows:
414-17         Sec. 256.054.  APPLICATION FOR EXAMINATION. To take the
414-18   examination under Section 256.055, an applicant for a license must:
414-19               (1)  submit an application on a form prescribed by the
414-20   board;
414-21               (2)  pay the application fee set by the board;
414-22               (3)  attach to the application:
414-23                     (A)  proof of current certification in
414-24   cardiopulmonary resuscitation approved by the American Heart
414-25   Association or American Red Cross; or
414-26                     (B)  if the applicant is not physically able to
414-27   comply with the certification requirements of Paragraph (A), a
 415-1   written statement describing the person's physical incapacity
 415-2   executed by a licensed physician or an instructor in
 415-3   cardiopulmonary resuscitation approved by the American Heart
 415-4   Association or American Red Cross; and
 415-5               (4)  provide any other information the board requires
 415-6   to determine the applicant's qualifications.
 415-7         (b)  Section 256.055(d), Occupations Code, is amended to
 415-8   conform to Section 22, Chapter 627, Acts of the 76th Legislature,
 415-9   Regular Session, 1999, to read as follows:
415-10         (d)  The board shall have the written portion of the board's
415-11   jurisprudence examination validated by an independent testing
415-12   professional.
415-13         (c)  Section 256.056, Occupations Code, is amended to conform
415-14   to Section 22, Chapter 627, Acts of the 76th Legislature, Regular
415-15   Session, 1999, to read as follows:
415-16         Sec. 256.056.  EXAMINATION RESULTS. (a) The board shall
415-17   notify each examinee of the results of the examination within a
415-18   reasonable time after the date of the examination.
415-19         (b)  If the board contracts with an independent or regional
415-20   testing service, the contract with the service must provide for the
415-21   notification of results.
415-22         (d)  Section 22, Chapter 627, Acts of the 76th Legislature,
415-23   Regular Session, 1999, is repealed.
415-24         SECTION 14.082. (a)  Section 256.101(a), Occupations Code, is
415-25   amended to conform to Section 4, Chapter 627, Acts of the 76th
415-26   Legislature, Regular Session, 1999, to read as follows:
415-27         (a)  The board shall issue a license to practice dentistry to
 416-1   a reputable dentist or a license to practice dental hygiene to a
 416-2   reputable [dentist or] dental hygienist who:
 416-3               (1)  pays the fee set by the board;
 416-4               (2)  is licensed in good standing as a dentist or
 416-5   dental hygienist in another state that has licensing requirements
 416-6   substantially equivalent to the requirements of this subtitle;
 416-7               (3)  has not been the subject of a final disciplinary
 416-8   action and is not the subject of a pending disciplinary action in
 416-9   any jurisdiction in which the dentist or dental hygienist is or has
416-10   been licensed;
416-11               (4)  has graduated from a dental or dental hygiene
416-12   school accredited by the Commission on Dental Accreditation of the
416-13   American Dental Association and approved by the board under board
416-14   rule;
416-15               (5)  has passed a national or other examination
416-16   relating to dentistry or dental hygiene and recognized by the
416-17   board;
416-18               (6)  has passed the board's jurisprudence examination;
416-19               (7)  has submitted documentation of current
416-20   cardiopulmonary resuscitation certification;
416-21               (8)  has practiced dentistry or dental hygiene:
416-22                     (A)  for at least the five years preceding the
416-23   date of application for a license under this section; or
416-24                     (B)  as a dental educator at a dental school or
416-25   dental hygiene school accredited by the Commission on Dental
416-26   Accreditation of the American Dental Association for at least the
416-27   five years preceding the date of application for a license under
 417-1   this section;
 417-2               (9)  has been endorsed by the board of dentistry in the
 417-3   jurisdiction in which the applicant practices at the time of
 417-4   application; and
 417-5               (10)  meets any additional criteria established by
 417-6   board rule.
 417-7         (b)  Section 4, Chapter 627, Acts of the 76th Legislature,
 417-8   Regular Session, 1999, is repealed.
 417-9         SECTION 14.083. (a)  Section 256.103, Occupations Code, is
417-10   amended to conform to Section 6, Chapter 627, Acts of the 76th
417-11   Legislature, Regular Session, 1999, to read as follows:
417-12         Sec. 256.103.  DISPLAY OF ANNUAL REGISTRATION CERTIFICATE
417-13   [DENTIST'S LICENSE]. (a)  A licensed dentist or dental hygienist
417-14   shall display the person's current registration certificate
417-15   [dentist's license issued by the board] in each [the dentist's]
417-16   office in which the person provides dental services [the patient's
417-17   plain view].  If the dentist or dental hygienist provides dental
417-18   services at more than one location, the person may display a
417-19   duplicate of the original registration certificate obtained from
417-20   the board on payment of a duplicate certificate fee set by the
417-21   board.
417-22         (b)  A licensed dentist may not operate on a patient's mouth
417-23   or treat lesions of the mouth or teeth unless the dentist displays
417-24   the dentist's registration certificate [license].
417-25         (b)  Section 6, Chapter 627, Acts of the 76th Legislature,
417-26   Regular Session, 1999, is repealed.
417-27         SECTION 14.084. (a)  Sections 257.002(c) and (d), Occupations
 418-1   Code, are amended to conform to Section 14, Chapter 627, Acts of
 418-2   the 76th Legislature, Regular Session, 1999, to read as follows:
 418-3         (c)  A person whose license has been expired for 90 days or
 418-4   less may renew the license by paying to the board the required
 418-5   renewal fee and a fee that is equal to half of the amount of the
 418-6   license application [examination] fee.  A person whose license has
 418-7   been expired for more than 90 days but less than one year may renew
 418-8   the license by paying to the board all unpaid renewal fees and a
 418-9   fee that is equal to the amount of the license application
418-10   [examination] fee.
418-11         (d)  Except as provided by [Section 256.102 or] Section
418-12   257.003, a person whose license has been expired for one year or
418-13   longer may not renew the license.  The person may obtain a new
418-14   license by submitting to reexamination and complying with the
418-15   requirements and procedures for obtaining an original license.
418-16         (b)  Section 257.003, Occupations Code, is amended to conform
418-17   to Section 14, Chapter 627, Acts of the 76th Legislature, Regular
418-18   Session, 1999, to read as follows:
418-19         Sec. 257.003.  RENEWAL OF EXPIRED LICENSE BY OUT-OF-STATE
418-20   PRACTITIONER. The board by rule may provide for renewal of an
418-21   expired license without reexamination for a person who was licensed
418-22   in this state, moved to another state, and is currently licensed
418-23   and has been in practice in the other state for the two years
418-24   preceding the date the person applied for renewal.  The person must
418-25   pay to the board a fee that is equal to the amount of the license
418-26   application [examination] fee.
418-27         (c)  Section 14, Chapter 627, Acts of the 76th Legislature,
 419-1   Regular Session, 1999, is repealed.
 419-2         SECTION 14.085. (a)  Section 257.004, Occupations Code, is
 419-3   amended to conform to Section 13, Chapter 627, Acts of the 76th
 419-4   Legislature, Regular Session, 1999, to read as follows:
 419-5         Sec. 257.004.  CARDIOPULMONARY RESUSCITATION [CERTIFICATION]
 419-6   REQUIREMENTS [FOR DENTAL HYGIENISTS]. (a)  A person holding a
 419-7   dental or dental hygienist license must attach to the person's
 419-8   renewal application:
 419-9               (1)  proof that the applicant has successfully
419-10   completed a [of] current course [certification] in cardiopulmonary
419-11   resuscitation approved by the American Heart Association or
419-12   American Red Cross; or
419-13               (2)  if the person is not physically able to comply
419-14   with the [certification] requirements of Subdivision (1), a written
419-15   statement describing the person's physical incapacity executed by a
419-16   licensed physician or an instructor in cardiopulmonary
419-17   resuscitation approved by the American Heart Association or
419-18   American Red Cross.
419-19         (b)  A dentist or dental hygienist licensed by the board who
419-20   resides in a country other than the United States on the renewal
419-21   date of the person's license is exempt from the requirements of
419-22   Subsection (a) if the person submits proof of foreign residence
419-23   with the person's renewal application.
419-24         (b)  Section 13, Chapter 627, Acts of the 76th Legislature,
419-25   Regular Session, 1999, is repealed.
419-26         SECTION 14.086. (a)  Sections 258.051(b) and (c), Occupations
419-27   Code, are amended to conform to Section 11, Chapter 627, Acts of
 420-1   the 76th Legislature, Regular Session, 1999, and Section 1, Chapter
 420-2   1330, Acts of the 76th Legislature, Regular Session, 1999, to read
 420-3   as follows:
 420-4         (b)  A dentist's records may not be sold, pledged as
 420-5   collateral, or transferred to any person other than the patient
 420-6   unless[:]
 420-7               [(1)  the other person is a dentist licensed by the
 420-8   board; and]
 420-9               [(2)]  the transfer is made in compliance with
420-10   Subchapter C and board rules.
420-11         (c)  This section does not prevent the voluntary submission
420-12   of records to an insurance company to determine benefits when
420-13   consent for the disclosure has been granted under Section 258.104.
420-14         (b)  Chapter 258, Occupations Code, is amended to conform to
420-15   Section 11, Chapter 627, Acts of the 76th Legislature, Regular
420-16   Session, 1999, and Section 1, Chapter 1330, Acts of the 76th
420-17   Legislature, Regular Session, 1999, by adding Subchapter C to read
420-18   as follows:
420-19                     SUBCHAPTER C.  DENTAL PRIVILEGE
420-20         Sec. 258.101.  DEFINITIONS. In this subchapter:
420-21               (1)  "Dental record" means dental information about a
420-22   patient:
420-23                     (A)  created or maintained by a dentist; and
420-24                     (B)  relating to the history or treatment of the
420-25   patient.
420-26               (2)  "Dentist" means a person licensed to practice
420-27   dentistry.
 421-1               (3)  "Patient" means a person who consults with a
 421-2   dentist to receive dental care.
 421-3               (4)  "Privilege" means the confidentiality privilege
 421-4   created by this subchapter.
 421-5         Sec. 258.102.  SCOPE OF PRIVILEGE. (a)  The following
 421-6   information is privileged and may not be disclosed except as
 421-7   provided by this subchapter:
 421-8               (1)  a communication between a dentist and a patient
 421-9   that relates to a professional service provided by the dentist; and
421-10               (2)  a dental record.
421-11         (b)  The privilege described by this section applies
421-12   regardless of when the patient received the professional service
421-13   from the dentist.
421-14         Sec. 258.103.  HOLDER OF PRIVILEGE. (a)  The patient is the
421-15   holder of the privilege.
421-16         (b)  The following persons may claim the privilege on the
421-17   patient's behalf:
421-18               (1)  a person authorized to act on the patient's
421-19   behalf;
421-20               (2)  a dentist acting on the patient's behalf; and
421-21               (3)  an agent or employee of a person listed in
421-22   Subdivision (1) or (2).
421-23         (c)  A person's authority to claim the privilege is presumed
421-24   in the absence of evidence to the contrary.
421-25         Sec. 258.104.  CONSENT TO DISCLOSURE OF PRIVILEGED
421-26   INFORMATION. (a)  A person may disclose privileged information if
421-27   the patient consents to the disclosure as provided in this section.
 422-1         (b)  Consent for the release of privileged information must
 422-2   be in writing and be signed by:
 422-3               (1)  the patient;
 422-4               (2)  a parent or legal guardian of the patient, if the
 422-5   patient is a minor;
 422-6               (3)  a legal guardian of the patient, if the patient
 422-7   has been adjudicated incompetent to manage the patient's personal
 422-8   affairs;
 422-9               (4)  an attorney ad litem appointed for the patient, as
422-10   authorized by:
422-11                     (A)  Chapter 107, Family Code;
422-12                     (B)  Subtitle B, Title 6, Health and Safety Code;
422-13                     (C)  Subtitle C, Title 7, Health and Safety Code;
422-14                     (D)  Subtitle D, Title 7, Health and Safety Code;
422-15                     (E)  Subtitle E, Title 7, Health and Safety Code;
422-16                     (F)  Chapter V, Texas Probate Code; or
422-17                     (G)  any other law; or
422-18               (5)  a personal representative of the patient, if the
422-19   patient is deceased.
422-20         (c)  The consent required under this section must specify:
422-21               (1)  the information covered by the release;
422-22               (2)  the person to whom the information is to be
422-23   released; and
422-24               (3)  the purpose for the release.
422-25         (d)  A person may withdraw consent granted under this section
422-26   by notifying in writing the person who maintains the information.
422-27   Withdrawal of consent does not affect information disclosed before
 423-1   the written notice of the withdrawal is delivered.
 423-2         Sec. 258.105.  EXCEPTION TO PRIVILEGE FOR CERTAIN
 423-3   PROCEEDINGS. (a)  The privilege does not apply in a court or
 423-4   administrative proceeding if the proceeding is:
 423-5               (1)  brought by the patient against a dentist,
 423-6   including a malpractice, criminal, or license revocation
 423-7   proceeding, and the disclosure is relevant to a claim or defense of
 423-8   the dentist; or
 423-9               (2)  to collect on a claim for dental services rendered
423-10   to the patient.
423-11         (b)  The privilege does not apply to the disclosure of a
423-12   dental record:
423-13               (1)  to the board in a disciplinary investigation or
423-14   proceeding against a dentist conducted under this subtitle; or
423-15               (2)  in a criminal investigation or proceeding against
423-16   a dentist in which the board is participating or assisting by
423-17   providing a record obtained from the dentist.
423-18         (c)  The board may not reveal the identity of a patient whose
423-19   dental record  is disclosed under Subsection (b).
423-20         (d)  Privileged information is discoverable in a criminal
423-21   prosecution if:
423-22               (1)  the patient is a victim, witness, or defendant;
423-23   and
423-24               (2)  the court in which the prosecution is pending
423-25   rules, after an in camera review, that the information is relevant
423-26   for discovery purposes.
423-27         (e)  Privileged information is admissible in a criminal
 424-1   prosecution if:
 424-2               (1)  the patient is a victim, witness, or defendant;
 424-3   and
 424-4               (2)  the court in which the prosecution is pending
 424-5   rules, after an in camera review, that the information is relevant.
 424-6         (f)  The privilege does not apply to a grand jury subpoena.
 424-7         Sec. 258.106.  EXCEPTION TO PRIVILEGE FOR CERTAIN DISCLOSURES
 424-8   BY DENTIST. (a)  The privilege does not apply to the disclosure of
 424-9   information by a dentist to:
424-10               (1)  a governmental agency, if:
424-11                     (A)  the disclosure is required by another law;
424-12   and
424-13                     (B)  the agency agrees to keep confidential the
424-14   identity of a patient whose dental record is disclosed;
424-15               (2)  medical or law enforcement personnel, if the
424-16   dentist determines that it is more likely than not that the
424-17   following will occur:
424-18                     (A)  imminent physical injury to the patient, the
424-19   dentist, or others; or
424-20                     (B)  immediate mental or emotional injury to the
424-21   patient;
424-22               (3)  a person in relation to a management or financial
424-23   audit, program evaluation, or research, if the person agrees to
424-24   keep confidential the identity of a patient whose dental record is
424-25   disclosed;
424-26               (4)  a person involved in the payment or collection of
424-27   fees for services rendered by a dentist, if necessary; or
 425-1               (5)  another dentist, or a person under the direction
 425-2   of the dentist, who participates in the diagnosis, evaluation, or
 425-3   treatment of the patient.
 425-4         (b)  A person who receives information under Subsection
 425-5   (a)(3) may not disclose a patient's identity in writing.
 425-6         (c)  A record reflecting a charge or  specific service
 425-7   provided may be disclosed only when necessary in the collection of
 425-8   fees for a service provided by a dentist, professional association,
 425-9   or other entity qualified to provide or arrange for a service.
425-10         Sec. 258.107.  EXCEPTION TO PRIVILEGE FOR CERTAIN LEGISLATIVE
425-11   INQUIRIES. A state hospital or state school may disclose a dental
425-12   record if:
425-13               (1)  the state hospital or state school created the
425-14   record;
425-15               (2)  an inquiry authorized by the legislature requests
425-16   the information; and
425-17               (3)  the entity receiving the record agrees not to
425-18   disclose a patient's identity.
425-19         Sec. 258.108.  LIMIT ON DISCLOSURE. A person who receives
425-20   privileged information may disclose the information to another
425-21   person only to the extent consistent with the purpose for which the
425-22   information was obtained.
425-23         Sec. 258.109.  REQUEST FOR DENTAL RECORD:  TIMING; EXCEPTION.
425-24   (a)  If disclosure of a dental record is authorized under this
425-25   subchapter, a dentist shall disclose the dental record within a
425-26   reasonable  period after it is requested but not later than:
425-27               (1)  the 30th day after the date on which it is
 426-1   requested from the dentist; or
 426-2               (2)  a date ordered by a court.
 426-3         (b)  A dentist may refuse to disclose the requested record if
 426-4   the dentist determines that providing the information would be
 426-5   harmful to the physical, mental, or emotional health of the
 426-6   patient, except that requests from the board may not be refused.
 426-7   If the dentist determines that disclosing the record would be
 426-8   harmful, the dentist shall notify the person requesting the record
 426-9   and explain why the information would be harmful.  The person
426-10   requesting the record may challenge in court the dentist's refusal
426-11   to disclose the record.    If the court finds that the dentist made
426-12   the refusal in bad faith, the court may order the disclosure of the
426-13   record and award costs and attorney's fees incurred by the person
426-14   to obtain the information.
426-15         (c)  In disclosing a dental record under this section, a
426-16   dentist shall redact privileged information about another person.
426-17         (d)  A dentist may charge  a reasonable fee for providing a
426-18   dental record under this section.  For purposes of this subsection,
426-19   a  fee  established under Section 241.154, Health and Safety Code,
426-20   is a reasonable fee.
426-21         (c)  The following are repealed:
426-22               (1)  Section 11, Chapter 627, Acts of the 76th
426-23   Legislature, Regular Session, 1999; and
426-24               (2)  Section 1, Chapter 1330, Acts of the 76th
426-25   Legislature, Regular Session, 1999.
426-26         SECTION 14.087. (a)  Section 259.003(a), Occupations Code, is
426-27   amended to conform to Section 7, Chapter 627, Acts of the 76th
 427-1   Legislature, Regular Session, 1999, to read as follows:
 427-2         (a)  A person may use a corporation, company, association, or
 427-3   trade name, provided that each patient shall be given the name of
 427-4   the treating dentist, in writing, either before or after each
 427-5   office visit.
 427-6         (b)  Section 7, Chapter 627, Acts of the 76th Legislature,
 427-7   Regular Session, 1999, is repealed.
 427-8         SECTION 14.088. (a)  Section 259.008, Occupations Code, is
 427-9   amended to conform to Section 8, Chapter 627, Acts of the 76th
427-10   Legislature, Regular Session, 1999, to read as follows:
427-11         Sec. 259.008.  UNPROFESSIONAL CONDUCT. A person may not
427-12   directly or indirectly engage in unprofessional conduct relating to
427-13   dentistry, including:
427-14               (1)  obtaining or attempting to collect a fee by fraud
427-15   or misrepresentation;
427-16               (2)  orally [verbally] soliciting dental business if
427-17   the solicitation is:
427-18                     (A)  directed to an individual or a group of less
427-19   than five individuals; and
427-20                     (B)  made for the primary purpose of attracting
427-21   the individual or the group to a particular dental practice;
427-22               (3)  employing, directly or indirectly, or permitting
427-23   an unlicensed person to perform dental services on a person, except
427-24   as authorized by law;
427-25               (4)  claiming or circulating a statement of:
427-26                     (A)  professional superiority; or
427-27                     (B)  performance of professional services in a
 428-1   superior manner;
 428-2               (5)  forging, altering, or changing a legal document
 428-3   relating to the practice of dentistry, including a diploma,
 428-4   license, registration certificate, or transcript;
 428-5               (6)  being a party to or benefiting from the forgery,
 428-6   alteration, or changing of a legal document relating to the
 428-7   practice of dentistry;
 428-8               (7)  making a false statement or misusing a legal
 428-9   document relating to the practice of dentistry;
428-10               (8)  accepting employment as a dentist under a false,
428-11   misleading, or deceptive referral scheme;
428-12               (9)  advertising the performance of dental work without
428-13   pain or discomfort to the patient; or
428-14               (10)  advertising a prediction of future satisfaction
428-15   or success of a dental service.
428-16         (b)  Section 8, Chapter 627, Acts of the 76th Legislature,
428-17   Regular Session, 1999, is repealed.
428-18         SECTION 14.089. (a)  Section 262.056, Occupations Code, is
428-19   amended to conform to Section 21, Chapter 627, Acts of the 76th
428-20   Legislature, Regular Session, 1999, to read as follows:
428-21         Sec. 262.056.  PER DIEM;  REIMBURSEMENT. (a)  An advisory
428-22   committee member is entitled to[:]
428-23               [(1)]  the per diem set by the General Appropriations
428-24   Act for each day the member engages in committee business[; and]
428-25               [(2)  transportation expenses as provided by the
428-26   General Appropriations Act].
428-27         (b)  An advisory committee member may receive [is not
 429-1   entitled to] reimbursement for travel expenses, including expenses
 429-2   for meals and lodging [except as provided by Subsection (a)(2)].
 429-3         (b)  Section 21, Chapter 627, Acts of the 76th Legislature,
 429-4   Regular Session, 1999, is repealed.
 429-5         SECTION 14.090. (a)  Subchapter B, Chapter 262, Occupations
 429-6   Code, is amended to conform to Section 24, Chapter 627, Acts of the
 429-7   76th Legislature, Regular Session, 1999, by adding Section 262.057
 429-8   to read as follows:
 429-9         Sec. 262.057.  APPLICATION OF SUNSET ACT TO ADVISORY
429-10   COMMITTEE. The advisory committee is subject to Chapter 325,
429-11   Government Code (Texas Sunset Act).  Unless continued in existence
429-12   as provided by that chapter, the advisory committee is abolished
429-13   September 1, 2005. An advisory committee is abolished on the date
429-14   set for abolition of the agency unless the advisory committee is
429-15   expressly continued by law as established by the legislature.
429-16         (b)  Section 24, Chapter 627, Acts of the 76th Legislature,
429-17   Regular Session, 1999, is repealed.
429-18         SECTION 14.091. (a)  Section 262.152, Occupations Code, is
429-19   amended to conform to Section 20, Chapter 627, Acts of the 76th
429-20   Legislature, Regular Session, 1999, to read as follows:
429-21         Sec. 262.152.  PERFORMANCE OF DELEGATED DUTIES.  [(a)] A
429-22   dental hygienist shall practice dental hygiene:
429-23               (1)  in the [a supervising dentist's] dental office of
429-24   a supervising dentist licensed by the board; or
429-25               (2)  in an alternate setting, including a nursing home,
429-26   [or] the patient's home, a school, a hospital, a state institution,
429-27   a public health clinic, or another institution, under the
 430-1   supervision of a supervising dentist.
 430-2         [(b)  A dental hygienist who practices dental hygiene under
 430-3   Subsection (a)(1) must be employed by a supervising dentist who is
 430-4   licensed by the board.]
 430-5         [(c)  This section does not apply if the dental hygienist is
 430-6   employed by a school, hospital, state institution, public health
 430-7   clinic, or other institution that has been approved by the board as
 430-8   a proper location for the performance of a dental procedure.]
 430-9         (b)  Section 20, Chapter 627, Acts of the 76th Legislature,
430-10   Regular Session, 1999, is repealed.
430-11         SECTION 14.092. (a)  Section 263.001, Occupations Code, is
430-12   amended to conform to Section 9, Chapter 627, Acts of the 76th
430-13   Legislature, Regular Session, 1999, to read as follows:
430-14         Sec. 263.001.  GROUNDS FOR REFUSAL TO [EXAMINE OR] ISSUE
430-15   LICENSE. The board may refuse to [examine a person or to] issue a
430-16   license by examination to a dental [license] or [a] dental hygiene
430-17   applicant [hygienist license to a person] if the person:
430-18               (1)  presents to the board fraudulent or false evidence
430-19   of the person's qualification for examination or license;
430-20               (2)  is guilty of any illegality, fraud, or deception
430-21   during the examination or the process to secure a license;
430-22               (3)  is habitually intoxicated or is addicted to drugs;
430-23               (4)  commits a dishonest or illegal practice in or
430-24   connected to dentistry or dental hygiene;
430-25               (5)  is convicted of a felony under a federal law or
430-26   law of this state; or
430-27               (6)  is found to have violated a law of this state
 431-1   relating to the practice of dentistry within the 12 months
 431-2   preceding the date the person filed an application for a license to
 431-3   practice dentistry or dental hygiene.
 431-4         (b)  Section 263.002, Occupations Code, is amended to conform
 431-5   to Section 9, Chapter 627, Acts of the 76th Legislature, Regular
 431-6   Session, 1999, and Sections 1 and 2, Chapter 1204, Acts of the 76th
 431-7   Legislature, Regular Session, 1999, to read as follows:
 431-8         Sec. 263.002.  GROUNDS FOR DISCIPLINARY ACTION IN GENERAL.
 431-9   (a) The board, after notice and hearing, may reprimand a person who
431-10   holds a license issued under this subtitle, issue a warning letter
431-11   to a person licensed under this subtitle, impose a fine on a person
431-12   licensed under this subtitle, impose an administrative penalty
431-13   under Subchapter A, Chapter 264, on a person who holds a license
431-14   under this subtitle, place on probation with conditions a person
431-15   whose license has been suspended, or revoke or suspend a person's
431-16   license issued under this subtitle if the person:
431-17               (1)  is adjudged under the law to be insane;
431-18               (2)  is convicted of a misdemeanor involving fraud or a
431-19   felony under federal law or the law of any state;
431-20               (3)  practices dentistry or dental hygiene in a manner
431-21   that constitutes dishonorable conduct[, malpractice, or gross
431-22   incompetency];
431-23               (4)  fails to treat a patient according to the standard
431-24   of care in the practice of dentistry or dental hygiene;
431-25               (5)  engages in deception or misrepresentation in
431-26   soliciting or obtaining patronage;
431-27               (6)  obtains a license by fraud or misrepresentation;
 432-1               (7)  is addicted to or habitually intemperate in the
 432-2   use of alcoholic beverages [intoxicated] or [addicted to] drugs or
 432-3   has improperly obtained, possessed, used, or distributed
 432-4   habit-forming drugs or narcotics;
 432-5               (8)  holds a dental license and employs, permits, or
 432-6   has employed or permitted a person not licensed to practice
 432-7   dentistry to practice dentistry in an office of the dentist that is
 432-8   under the dentist's control or management;
 432-9               (9)  fails to use proper diligence in the person's
432-10   practice or fails to safeguard the person's patients against
432-11   avoidable infections;
432-12               (10)  violates or refuses to comply with a law relating
432-13   to the regulation of dentists or dental hygienists;
432-14               (11)  is physically or mentally incapable of practicing
432-15   in a manner that is safe for the person's dental patients;
432-16               (12)  is negligent in performing dental services and
432-17   that negligence causes injury or damage to a dental patient;
432-18               (13)  holds a license or certificate to practice
432-19   dentistry or dental hygiene in another state and that state, based
432-20   on an act by the person that is the same as an act described in
432-21   this section:
432-22                     (A)  reprimands the person;
432-23                     (B)  suspends or revokes the person's license or
432-24   certificate or places the person on probation; or
432-25                     (C)  imposes another restriction on the person's
432-26   practice; or
432-27               (14)  knowingly provides or agrees to provide dental
 433-1   care in a manner that violates a federal or state law that:
 433-2                     (A)  regulates a plan to provide, arrange for,
 433-3   pay for, or reimburse any part of the cost of dental care services;
 433-4   or
 433-5                     (B)  regulates the business of insurance.
 433-6         (b)  If a person holds a license to practice dentistry or
 433-7   dental hygiene, the board may reprimand or impose a fine on the
 433-8   person, issue a warning letter to the person, place the person's
 433-9   license on probation, or suspend or revoke the person's license
433-10   under Subsection (a)(10) only if a majority of the board determines
433-11   that the person has committed an act described by Subsection
433-12   (a)(10).
433-13         (c)  Section 263.003, Occupations Code, is amended to conform
433-14   to Section 9, Chapter 627, Acts of the 76th Legislature, Regular
433-15   Session, 1999, to read as follows:
433-16         Sec. 263.003.  HEARING. A person [licensed under this
433-17   subtitle] is entitled to a hearing under Chapter 2001, Government
433-18   Code, if the board proposes to:
433-19               (1)  refuse to issue a license by examination to
433-20   [examine] the person;
433-21               (2)  reprimand or impose a fine on the person;
433-22               (3)  place the person on probation after the person's
433-23   license has been suspended; or
433-24               (4)  suspend or revoke the license of the person.
433-25         (d)  The following are repealed:
433-26               (1)  Section 9, Chapter 627, Acts of the 76th
433-27   Legislature, Regular Session, 1999; and
 434-1               (2)  Sections 1 and 2, Chapter 1204, Acts of the 76th
 434-2   Legislature, Regular Session, 1999.
 434-3         SECTION 14.093.  (a)  Section 263.008, Occupations Code, is
 434-4   amended to conform to Section 10, Chapter 627, Acts of the 76th
 434-5   Legislature, Regular Session, 1999, and to more accurately reflect
 434-6   the law from which it was derived to read as follows:
 434-7         Sec. 263.008.  SUBPOENA.  (a)  The board may request and, if
 434-8   necessary, compel by subpoena the attendance of witnesses for
 434-9   examination under oath and the production for examination and
434-10   copying of books, accounts, records, documents, and other evidence
434-11   relevant to the investigation of an alleged violation of this
434-12   chapter or another state law relating to the practice of dentistry.
434-13         (b)  The board may request the attorney general to file suit
434-14   against a person who fails to comply with a subpoena issued by the
434-15   board to enforce the subpoena.  The suit must be filed in a Travis
434-16   County district court [or in a district court in the county in
434-17   which a hearing conducted by the board may be held].
434-18         (c) [(b)]  The court on finding that good cause exists for
434-19   the issuance of the subpoena shall order the person to comply with
434-20   the subpoena.
434-21         (b)  Section 10, Chapter 627, Acts of the 76th Legislature,
434-22   Regular Session, 1999, is repealed.
434-23         SECTION 14.094. (a)  Section 266.152(d), Occupations Code, is
434-24   amended to conform to Section 25, Chapter 627, Acts of the 76th
434-25   Legislature, Regular Session, 1999, to read as follows:
434-26         (d)  The owner of a dental laboratory registered with the
434-27   board on September 1, 1987, is exempt from Subsection (a)  if:
 435-1               (1)  the registration of the laboratory has been
 435-2   renewed each year [continuously registered with the board] since
 435-3   that date, and all registration fees have been paid;
 435-4               (2)  the beneficial ownership of at least 51 percent of
 435-5   the laboratory has not been transferred; and
 435-6               (3)  the owner is employed on the laboratory's premises
 435-7   for not less than 30 hours each week.
 435-8         (b)  Sections 266.154(d) and (e), Occupations Code, are
 435-9   amended to conform to Section 25, Chapter 627, Acts of the 76th
435-10   Legislature, Regular Session, 1999, to read as follows:
435-11         (d)  An owner or manager of a dental laboratory whose
435-12   registration certificate has been expired for 90 days or less may
435-13   renew the registration certificate if the person pays to the board
435-14   the required renewal fee and a fee equal to one-half of the amount
435-15   of the renewal fee.  If the registration certificate has been
435-16   expired for more than 90 days but less than one year [two years],
435-17   the owner or manager may renew the certificate by paying to the
435-18   board all unpaid renewal fees and a fee equal to the amount of the
435-19   initial registration fee.
435-20         (e)  An owner or manager of a dental laboratory may not renew
435-21   a registration certificate that has been expired for one year [two
435-22   years] or more.  The owner or manager may obtain a new certificate
435-23   by complying with the requirements for obtaining an original
435-24   certificate.
435-25         (c)  Section 25, Chapter 627, Acts of the 76th Legislature,
435-26   Regular Session, 1999, is repealed.
435-27         SECTION 14.095. Section 254.011, Occupations Code, is
 436-1   repealed to conform to Section 27, Chapter 627, Acts of the 76th
 436-2   Legislature, Regular Session, 1999.
 436-3                PART 6.  CHANGES RELATING TO SUBTITLE E,
 436-4                        TITLE 3, OCCUPATIONS CODE
 436-5         SECTION 14.121. (a)  Section 301.152, Occupations Code, is
 436-6   amended to conform to Section 6, Chapter 428, Acts of the 76th
 436-7   Legislature, Regular Session, 1999, by adding Subsection (d) to
 436-8   read as follows:
 436-9         (d)  The signature of an advanced practice nurse attesting to
436-10   the provision of a legally authorized service by the advanced
436-11   practice nurse satisfies any documentation requirement for that
436-12   service established by a state agency.
436-13         (b)  Section 6, Chapter 428, Acts of the 76th Legislature,
436-14   Regular Session, 1999, is repealed.
436-15         SECTION 14.122. (a)  Section 301.251, Occupations Code, is
436-16   amended to conform to Sections 2 and 5, Chapter 775, Acts of the
436-17   76th Legislature, Regular Session, 1999, by adding Subsection (c)
436-18   to read as follows:
436-19         (c)  This section does not apply to a person entitled to
436-20   practice professional nursing in this state under Chapter 304.
436-21         (b)  Sections 2 and 5, Chapter 775, Acts of the 76th
436-22   Legislature, Regular Session, 1999, are repealed.
436-23         SECTION 14.123. (a)  Sections 301.257(e) and (f), Occupations
436-24   Code, are amended to conform to Section 3, Chapter 775, Acts of the
436-25   76th Legislature, Regular Session, 1999, to read as follows:
436-26         (e)  If the board determines that a ground for ineligibility
436-27   does not exist, instead of issuing an order, the board shall notify
 437-1   the petitioner in writing of the board's determination on each
 437-2   ground of potential ineligibility.  If the board proposes to find
 437-3   that the petitioner is ineligible for a license, the petitioner is
 437-4   entitled to a hearing before the State Office of Administrative
 437-5   Hearings.
 437-6         (f)  The board's order must set out each basis for potential
 437-7   ineligibility and the board's determination as to eligibility. In
 437-8   the absence of new evidence known to but not disclosed by the
 437-9   petitioner or not reasonably available to the board at the time the
437-10   order is issued, the board's ruling on the petition determines the
437-11   person's eligibility with respect to the grounds for potential
437-12   ineligibility set out in the written notice or order.
437-13         (b)  Section 3, Chapter 775, Acts of the 76th Legislature,
437-14   Regular Session, 1999, is repealed.
437-15         SECTION 14.124. (a)  Section 301.452(b), Occupations Code, is
437-16   amended to conform to Section 4, Chapter 775, Acts of the 76th
437-17   Legislature, Regular Session, 1999, to read as follows:
437-18         (b)  A person is subject to denial of a license or to
437-19   disciplinary action under this subchapter for:
437-20               (1)  a violation of this chapter, [or] a rule or
437-21   regulation not inconsistent with this chapter, or an order issued
437-22   under this chapter;
437-23               (2)  fraud or deceit in procuring or attempting to
437-24   procure a license to practice professional nursing;
437-25               (3)  a conviction for a felony or for a misdemeanor
437-26   involving moral turpitude;
437-27               (4)  conduct that results in the revocation of
 438-1   probation imposed because of conviction for a felony or for a
 438-2   misdemeanor involving moral turpitude;
 438-3               (5)  use of a nursing license, diploma, or permit, or
 438-4   the transcript of such a document, that has been fraudulently
 438-5   purchased, issued, counterfeited, or materially altered;
 438-6               (6)  impersonating or acting as a proxy for another
 438-7   person in the licensing examination required under Section 301.253
 438-8   or 301.255;
 438-9               (7)  directly or indirectly aiding or abetting an
438-10   unlicensed person in connection with the unauthorized practice of
438-11   professional nursing;
438-12               (8)  revocation, suspension, or denial of, or any other
438-13   action relating to, the person's license or privilege to practice
438-14   nursing in another jurisdiction;
438-15               (9)  intemperate use of alcohol or drugs that the board
438-16   determines endangers or could endanger a patient;
438-17               (10)  unprofessional or dishonorable conduct that, in
438-18   the board's opinion, is likely to deceive, defraud, or injure a
438-19   patient or the public;
438-20               (11)  adjudication of mental incompetency;
438-21               (12)  lack of fitness to practice because of a mental
438-22   or physical health condition that could result in injury to a
438-23   patient or the public; or
438-24               (13)  failure to care adequately for a patient or to
438-25   conform to the minimum standards of acceptable professional nursing
438-26   practice in a manner that, in the board's opinion, exposes a
438-27   patient or other person unnecessarily to risk of harm.
 439-1         (b)  Section 301.456, Occupations Code, is amended to conform
 439-2   to Section 4, Chapter 775, Acts of the 76th Legislature, Regular
 439-3   Session, 1999, to read as follows:
 439-4         Sec. 301.456.  EVIDENCE.  A certified copy of the order of
 439-5   the [license] denial, suspension, or revocation or other action
 439-6   under Section 301.452(b)(8) is conclusive evidence of that action.
 439-7         (c)  Section 4, Chapter 775, Acts of the 76th Legislature,
 439-8   Regular Session, 1999, is repealed.
 439-9         SECTION 14.1245.  Section 301.503(a), Occupations Code, is
439-10   amended to more accurately reflect the law from which it was
439-11   derived to read as follows:
439-12         (a)  If the executive director determines that a violation
439-13   has occurred, the executive director may [shall] issue to the board
439-14   a report stating:
439-15               (1)  the facts on which the determination is based; and
439-16               (2)  the director's recommendation on the imposition of
439-17   the administrative penalty, including a recommendation on the
439-18   amount of the penalty.
439-19         SECTION 14.125. (a)  Chapter 301, Occupations Code, is
439-20   amended to conform to Section 4, Chapter 1275, Acts of the 76th
439-21   Legislature, Regular Session, 1999, by adding Subchapter M to read
439-22   as follows:
439-23             SUBCHAPTER M.  ANESTHESIA IN OUTPATIENT SETTING
439-24         Sec. 301.601.  DEFINITION. In this subchapter, "outpatient
439-25   setting" means a facility, clinic, center, office, or other setting
439-26   that is not part of a licensed hospital or a licensed ambulatory
439-27   surgical center.
 440-1         Sec. 301.602.  RULES. (a)  The board by rule shall establish
 440-2   minimum standards for anesthesia services provided in an outpatient
 440-3   setting by a person licensed by the board.
 440-4         (b)  The rules adopted under this section must be designed to
 440-5   protect the health, safety, and welfare of the public and include
 440-6   requirements relating to:
 440-7               (1)  general anesthesia, regional anesthesia, and
 440-8   monitored anesthesia care;
 440-9               (2)  patient assessment, counseling, and preparation;
440-10               (3)  patient monitoring to be performed and equipment
440-11   to be used during a procedure and during post-procedure monitoring;
440-12               (4)  emergency procedures, drugs, and equipment,
440-13   including education, training, and certification of personnel, as
440-14   appropriate, and including protocols for transfers to a hospital;
440-15               (5)  the documentation necessary to demonstrate
440-16   compliance with this subchapter; and
440-17               (6)  the period in which protocols or procedures
440-18   covered by rules of the board shall be reviewed, updated, or
440-19   amended.
440-20         (c)  The board shall cooperate with the Texas State Board of
440-21   Medical Examiners in adopting rules under this subchapter to
440-22   eliminate, to the extent possible, conflicts between the rules
440-23   adopted by each board.
440-24         Sec. 301.603.  APPLICABILITY. Rules adopted by the board
440-25   under Section 301.602 do not apply to:
440-26               (1)  an outpatient setting in which only local
440-27   anesthesia, peripheral nerve blocks, or both are used;
 441-1               (2)  an outpatient setting in which only anxiolytics
 441-2   and analgesics are used and only in doses that do not have the
 441-3   probability of placing the patient at risk for loss of the
 441-4   patient's life-preserving protective reflexes;
 441-5               (3)  a licensed hospital, including an outpatient
 441-6   facility of the hospital that is located separate from the
 441-7   hospital;
 441-8               (4)  a licensed ambulatory surgical center;
 441-9               (5)  a clinic located on land recognized as tribal land
441-10   by the federal government and maintained or operated by a federally
441-11   recognized Indian tribe or tribal organization as listed by the
441-12   United States secretary of the interior under 25 U.S.C. Section
441-13   479a-1 or as listed under a successor federal statute or
441-14   regulation;
441-15               (6)  a facility maintained or operated by a state or
441-16   local governmental entity;
441-17               (7)  a clinic directly maintained or operated by the
441-18   United States; or
441-19               (8)  an outpatient setting accredited by:
441-20                     (A)  the Joint Commission on Accreditation of
441-21   Healthcare Organizations relating to ambulatory surgical centers;
441-22                     (B)  the American Association for the
441-23   Accreditation of Ambulatory Surgery Facilities; or
441-24                     (C)  the Accreditation Association for Ambulatory
441-25   Health Care.
441-26         Sec. 301.604.  REGISTRATION REQUIRED. (a)  The board shall
441-27   require each certified registered nurse anesthetist who provides
 442-1   anesthesia services in an outpatient setting to register biennially
 442-2   by applying to the board on a form prescribed by the board and
 442-3   paying to the board a fee in an amount established by the board.
 442-4         (b)  The board shall coordinate the registration required
 442-5   under this section with the license renewal requirements of
 442-6   Subchapter G so that the times of registration, payment, notice,
 442-7   and imposition of penalties for late payment are similar and
 442-8   provide a minimal administrative burden for the board and certified
 442-9   registered nurse anesthetists.
442-10         Sec. 301.605.  COMPLIANCE WITH RULES. (a)  A certified
442-11   registered nurse anesthetist providing anesthesia services in an
442-12   outpatient setting shall comply with the rules adopted by the board
442-13   under Section 301.602.
442-14         (b)  The board may require a certified registered nurse
442-15   anesthetist to submit and comply with a corrective action plan to
442-16   remedy or address any current or potential deficiencies with the
442-17   nurse anesthetist's provision of anesthesia in an outpatient
442-18   setting in accordance with this chapter or board rule.
442-19         Sec. 301.606.  INSPECTIONS. (a)  The board may conduct
442-20   inspections to enforce this subchapter, including inspections of
442-21   the equipment owned or leased by a certified registered nurse
442-22   anesthetist and of documents of a certified registered nurse
442-23   anesthetist's practice that relate to providing anesthesia in an
442-24   outpatient setting.  The board may contract with another state
442-25   agency or qualified person to conduct these inspections.
442-26         (b)  Unless it would jeopardize an ongoing investigation, the
442-27   board must provide notice at least five business days before the
 443-1   date of conducting an on-site inspection under this section.
 443-2         (c)  This section does not require the board to make an
 443-3   on-site inspection of an outpatient setting in which a certified
 443-4   registered nurse anesthetist provides anesthesia.
 443-5         Sec. 301.607.  REQUESTS FOR INSPECTION AND ADVISORY OPINIONS.
 443-6   (a)  The board may consider a request by a certified registered
 443-7   nurse anesthetist for an inspection of equipment owned or leased by
 443-8   the nurse anesthetist and of documents of the nurse anesthetist's
 443-9   practice that relate to the provision of anesthesia in an
443-10   outpatient setting. The board, on payment of a fee set by the
443-11   board, may conduct the requested inspection and issue an advisory
443-12   opinion.
443-13         (b)  An advisory opinion issued by the board under this
443-14   section is not binding on the board.  Except as provided by
443-15   Subsection (c), the board may take any action under this chapter
443-16   relating to the situation addressed by the advisory opinion as the
443-17   board considers appropriate.
443-18         (c)  A certified registered nurse anesthetist who requests
443-19   and relies on a board advisory opinion may use the opinion as
443-20   mitigating evidence in an action or proceeding by the board to
443-21   impose an administrative penalty or to assess a fine under this
443-22   chapter.  On receipt of proof of reliance on an advisory opinion,
443-23   the board shall consider the reliance and mitigate imposition of an
443-24   administrative penalty or assessment of a fine accordingly.
443-25         (b)  Section 4, Chapter 1275, Acts of the 76th Legislature,
443-26   Regular Session, 1999, is repealed.
443-27         SECTION 14.126. (a)  Section 302.252(b), Occupations Code, is
 444-1   amended to conform to Section 8, Chapter 775, Acts of the 76th
 444-2   Legislature, Regular Session, 1999, to read as follows:
 444-3         (b)  The application must be accompanied by:
 444-4               (1)  evidence that the institution is prepared to give
 444-5   a vocational nurse education program approved by the board [of not
 444-6   less than 12 months]; and
 444-7               (2)  the required fee.
 444-8         (b)  Section 8, Chapter 775, Acts of the 76th Legislature,
 444-9   Regular Session, 1999, is repealed.
444-10         SECTION 14.127. (a) Section 302.301, Occupations Code, is
444-11   amended to conform to Section 6, Chapter 775, Acts of the 76th
444-12   Legislature, Regular Session, 1999, to read as follows:
444-13         Sec. 302.301.  LICENSE REQUIRED.  (a)  A person may not use
444-14   the designation "Licensed Vocational Nurse" or the abbreviation
444-15   "L.V.N." unless the person holds a license under this chapter.
444-16         (b)  This section does not apply to a person practicing
444-17   vocational nursing under Chapter 304.
444-18         (b)  Section 6, Chapter 775, Acts of the 76th Legislature,
444-19   Regular Session, 1999, is repealed.
444-20         SECTION 14.128. Section 302.306(b), Occupations Code, is
444-21   amended to more accurately reflect the law from which it was
444-22   derived to read as follows:
444-23         (b)  If the notice of the results of an examination graded or
444-24   reviewed by a national testing service will be delayed for longer
444-25   than 90 days after the examination date, the board shall notify
444-26   each examinee of the reason for the delay before the 90th day.
444-27         SECTION 14.129. (a)  Section 302.402, Occupations Code, is
 445-1   amended to conform to Section 7, Chapter 775, Acts of the 76th
 445-2   Legislature, Regular Session, 1999, to read as follows:
 445-3         Sec. 302.402.  GROUNDS FOR DISCIPLINARY ACTION. (a)  A person
 445-4   is subject to disciplinary action under Section 302.403 for:
 445-5               (1)  a violation of this chapter or a rule or order
 445-6   issued under this chapter;
 445-7               (2)  fraud or deceit in obtaining or attempting to
 445-8   obtain a license to practice vocational nursing;
 445-9               (3)  a conviction for:
445-10                     (A)  a felony; or
445-11                     (B)  a misdemeanor that involves moral turpitude;
445-12               (4)  use of a nursing license, certificate, diploma, or
445-13   permit or a transcript of such a document that has been
445-14   fraudulently purchased, issued, counterfeited, or materially
445-15   altered;
445-16               (5)  impersonating or acting as a proxy for another
445-17   person in an examination required by law to obtain a license to
445-18   practice vocational nursing;
445-19               (6)  knowingly aiding or abetting an unlicensed person
445-20   in connection with the unauthorized practice of vocational nursing;
445-21               (7)  revocation, suspension, or denial of the person's
445-22   license to practice vocational or practical nursing in another
445-23   jurisdiction;
445-24               (8)  revocation, suspension, or denial of a license or
445-25   privilege to practice professional nursing in this state or in
445-26   another jurisdiction;
445-27               (9)  intemperate use of alcohol or drugs;
 446-1               (10)  unprofessional or dishonorable conduct that, in
 446-2   the board's opinion, is likely to deceive, defraud, or injure the
 446-3   public;
 446-4               (11)  adjudication of mental incompetency; or
 446-5               (12)  lack of fitness to practice because of a mental
 446-6   or physical health condition that could result in injury to a
 446-7   patient or the public.
 446-8         (b)  For purposes of Subsections (a)(7) and (a)(8), a
 446-9   certified copy of an order of denial, suspension, or revocation [of
446-10   a license] is conclusive evidence of that fact.
446-11         (b)  Section 7, Chapter 775, Acts of the 76th Legislature,
446-12   Regular Session, 1999, is repealed.
446-13         SECTION 14.130. (a)  Subtitle E, Title 3, Occupations Code,
446-14   is amended to conform to Section 1, Chapter 775, Acts of the 76th
446-15   Legislature, Regular Session, 1999, by adding Chapter 304 to read
446-16   as follows:
446-17                  CHAPTER 304.  NURSE LICENSURE COMPACT
446-18         Sec. 304.001.  NURSE LICENSURE COMPACT. The Nurse Licensure
446-19   Compact is enacted and entered into with all other jurisdictions
446-20   that legally join in the compact, which is as follows:
446-21                         NURSE LICENSURE COMPACT
446-22         ARTICLE 1.  FINDINGS AND DECLARATION OF PURPOSE. (a)  The
446-23   party states find that:
446-24               (1)  the health and safety of the public are affected
446-25   by the degree of compliance with and the effectiveness of
446-26   enforcement activities related to state nurse licensing laws;
446-27               (2)  violations of nurse licensing and other laws
 447-1   regulating the practice of nursing may result in injury or harm to
 447-2   the public;
 447-3               (3)  the expanded mobility of nurses and the use of
 447-4   advanced communication technologies as part of our nation's health
 447-5   care delivery system require greater coordination and cooperation
 447-6   among states in the areas of nurse licensing and regulation;
 447-7               (4)  new practice modalities and technology make
 447-8   compliance with each state nurse licensing laws difficult and
 447-9   complex; and
447-10               (5)  the current system of the duplicative licensing of
447-11   nurses practicing in multiple states is cumbersome and redundant to
447-12   both nurses and the states.
447-13         (b)  The general purposes of this compact are to:
447-14               (1)  facilitate the states' responsibilities to protect
447-15   the public's health and safety;
447-16               (2)  ensure and encourage the cooperation of party
447-17   states in the areas of nurse licensing and regulation;
447-18               (3)  facilitate the exchange of information between
447-19   party states in the areas of nurse regulation, investigation, and
447-20   adverse action;
447-21               (4)  promote compliance with the laws governing the
447-22   practice of nursing in each jurisdiction; and
447-23               (5)  invest all party states with the authority to hold
447-24   a nurse accountable for meeting all state practice laws in the
447-25   state in which the patient is located at the time care is provided
447-26   through the mutual recognition of party state licenses.
447-27         ARTICLE 2.  DEFINITIONS.  In this compact:
 448-1               (a)  "Adverse action" means a home or remote state
 448-2   action.
 448-3               (b)  "Alternative program" means a voluntary,
 448-4   nondisciplinary monitoring program approved by a nurse licensing
 448-5   board.
 448-6               (c)  "Coordinated licensure information system" means
 448-7   an integrated process for collecting, storing, and sharing
 448-8   information on nurse licensing and enforcement activities related
 448-9   to nurse licensing laws, which is administered by a nonprofit
448-10   organization composed of and controlled by state nurse licensing
448-11   boards.
448-12               (d)  "Current significant investigative information"
448-13   means:
448-14                     (1)  investigative information that a licensing
448-15   board, after a preliminary inquiry that includes notification and
448-16   an opportunity for the nurse to respond if required by state law,
448-17   has reason to believe is not groundless and, if  proved true, would
448-18   indicate more than a minor infraction; or
448-19                     (2)  investigative information that indicates
448-20   that a nurse represents an immediate threat to public health and
448-21   safety regardless of whether the nurse has been notified and had an
448-22   opportunity to respond.
448-23               (e)  "Home state" means the party state that is the
448-24   nurse's primary state of residence.
448-25               (f)  "Home state action" means any administrative,
448-26   civil, equitable, or criminal action permitted by the home state's
448-27   laws that are imposed on a nurse by the home state's licensing
 449-1   board or other authority, including actions against an individual's
 449-2   license such as revocation, suspension, probation, or any other
 449-3   action that affects a nurse's authorization to practice.
 449-4               (g)  "Licensing board" means a party state's regulatory
 449-5   body responsible for issuing nurse licenses.
 449-6               (h)  "Multistate licensing privilege" means current,
 449-7   official authority from a remote state permitting the practice of
 449-8   nursing as a registered nurse, licensed practical nurse, or
 449-9   licensed vocational nurse in the party state. All party states have
449-10   the authority, in accordance with existing state due process laws,
449-11   to take actions against the nurse's privilege, including
449-12   revocation, suspension, probation, or any other action that affects
449-13   a nurse's authorization to practice.
449-14               (i)  "Nurse" means a registered nurse, licensed
449-15   practical nurse, or licensed vocational nurse as those terms are
449-16   defined by each party state's practice laws.
449-17               (j)  "Party state" means any state that has enacted
449-18   this compact.
449-19               (k)  "Remote state" means a party state, other than the
449-20   home state, in which:
449-21                     (1)  a patient is located at the time nursing
449-22   care is provided; or
449-23                     (2)  in the case of the practice of nursing not
449-24   involving a patient, the recipient of nursing practice is located. 
449-25               (l)  "Remote state action" means:
449-26                     (1)  an administrative, civil, equitable, or
449-27   criminal action permitted by a remote state's laws that are imposed
 450-1   on a nurse by the remote state's licensing board or other
 450-2   authority, including an action against an individual's multistate
 450-3   licensing privilege to practice in the remote state; and
 450-4                     (2)  a cease and desist order and other
 450-5   injunctive or equitable orders issued by remote states or the
 450-6   licensing boards of remote states.
 450-7               (m)  "State" means a state, territory, possession of
 450-8   the United States, the District of Columbia, or the Commonwealth of
 450-9   Puerto Rico.
450-10               (n)  "State practice laws" means a party state's laws
450-11   and regulations that govern the practice of nursing, define the
450-12   scope of nursing practice, and create the methods and grounds for
450-13   imposing discipline. The term does not include the initial
450-14   qualifications for licensing or requirements necessary to obtain
450-15   and retain a license, except for qualifications or requirements of
450-16   the home state.
450-17         ARTICLE 3.  GENERAL PROVISIONS AND JURISDICTION. (a)  A
450-18   license to practice registered nursing issued by a home state to a
450-19   resident in that state will be recognized by each party state as
450-20   authorizing a multistate licensing privilege to practice as a
450-21   registered nurse in the party state. A license to practice licensed
450-22   practical nursing or licensed vocational nursing issued by a home
450-23   state to a resident in that state will be recognized by each party
450-24   state as authorizing a multistate licensing privilege to practice
450-25   as a licensed practical nurse or vocational nurse in the party
450-26   state. To obtain or retain a license, an applicant must meet the
450-27   home state's qualifications for a license and license renewal as
 451-1   well as all other applicable state laws.
 451-2         (b)  A party state may, in accordance with state due process
 451-3   laws, limit or revoke the multistate licensing privilege of any
 451-4   nurse to practice in the party state and may take any other
 451-5   necessary actions under the party state's applicable laws to
 451-6   protect the health and safety of the party state's citizens. If a
 451-7   party state takes this action, the party state shall promptly
 451-8   notify the administrator of the coordinated licensure information
 451-9   system. The administrator of the coordinated licensure information
451-10   system shall promptly notify the home state of any such actions by
451-11   remote states.
451-12         (c)  A nurse practicing in a party state must comply with the
451-13   state practice laws of the state in which the patient is located at
451-14   the time care is provided.  The practice of nursing includes
451-15   patient care and all nursing practice defined by the party state's
451-16   practice laws. The practice of nursing will subject a nurse to the
451-17   jurisdiction of the nurse licensing board, the courts, and the laws
451-18   of the party state.
451-19         (d)  This compact does not affect additional requirements
451-20   imposed by states for advanced practice registered nursing.
451-21   However, a multistate licensing privilege to practice registered
451-22   nursing granted by a party state shall be recognized by another
451-23   party state as a license to practice registered nursing if the
451-24   state's law requires the license as a precondition for qualifying
451-25   for advanced practice registered nurse authorization.
451-26         (e)  Individuals not residing in a party state may apply for
451-27   a nurse license under the laws of a party state. However, the
 452-1   license granted to these individuals will not be recognized as
 452-2   granting the privilege to practice nursing in any other party state
 452-3   unless explicitly agreed to by that party state.
 452-4         ARTICLE 4.  APPLICATION FOR LICENSE IN A PARTY STATE. (a)
 452-5   Once an application for a license is submitted, the licensing board
 452-6   in a party state shall ascertain, through the coordinated licensure
 452-7   information system, whether:
 452-8               (1)  the applicant has held or is the holder of a
 452-9   license issued by another state;
452-10               (2)  a restriction exists on the multistate licensing
452-11   privilege; and
452-12               (3)  any other adverse action by any state has been
452-13   taken against the license.
452-14         (b)  A nurse in a party state shall hold a license that is
452-15   issued by the home state in only one party state at a time.
452-16         (c)  A nurse who intends to change the nurse's primary state
452-17   of residence may apply for a license in the new home state in
452-18   advance of the change. However, a new license will not be issued by
452-19   a party state until a nurse provides satisfactory evidence to the
452-20   new home state's licensing board of a change in the nurse's primary
452-21   state of residence.
452-22         (d)  When a nurse changes the nurse's primary state of
452-23   residence by moving from:
452-24               (1)  a party state to another party state and obtains a
452-25   license from the new home state, the license from the former home
452-26   state is no longer valid;
452-27               (2)  a non-party state to a party state and obtains a
 453-1   license from the new home state, the individual state license
 453-2   issued by the non-party state is not affected and remains in full
 453-3   force if provided by the laws of the non-party state; and
 453-4               (3)  a party state to a non-party state, the license
 453-5   issued by the prior home state converts to a state license valid
 453-6   only in the former home state and does not entitle the nurse to the
 453-7   multistate licensing privilege to practice in other party states.
 453-8         ARTICLE 5.  ADVERSE ACTIONS. (a)  The licensing board of a
 453-9   remote state shall promptly report to the administrator of the
453-10   coordinated licensure information system a remote state action and
453-11   the factual and legal basis for the action, if known. The licensing
453-12   board of a remote state shall promptly report any significant
453-13   current investigative information yet to result in a remote state
453-14   action.  The administrator of the coordinated licensure information
453-15   system shall promptly notify the home state of these reports.
453-16         (b)  The licensing board of a party state shall have the
453-17   authority to complete a pending investigation of a nurse who
453-18   changes the nurse's primary state of residence during the course of
453-19   the investigation and to take appropriate action.  The licensing
453-20   board shall promptly report the conclusions of the investigations
453-21   to the administrator of the coordinated licensure information
453-22   system. The administrator of the coordinated licensure information
453-23   system shall promptly notify the new home state of any action.
453-24         (c)  A remote state may take adverse action affecting the
453-25   multistate licensing privilege to practice in that party state.
453-26   However, only the home state has the power to impose adverse action
453-27   against the license issued by the home state.
 454-1         (d)  For purposes of imposing adverse action, the licensing
 454-2   board of the home state shall give the same priority and effect to
 454-3   reported conduct received from a remote state as it would to
 454-4   conduct occurring in the home state. In so doing, the licensing
 454-5   board shall apply its state laws to determine appropriate action.
 454-6         (e)  The home state may take adverse action based on the
 454-7   factual findings of the remote state only if each state follows its
 454-8   own procedures for imposing the adverse action.
 454-9         (f)  This compact does not affect a party state's decision
454-10   that participation in an alternative program may be used instead of
454-11   licensing action and that the participation shall remain non-public
454-12   if required by the party state's laws. Party states must require a
454-13   nurse who enters an alternative program to agree not to practice in
454-14   any other party state during the term of the alternative program
454-15   without prior authorization from the other party state.
454-16         ARTICLE 6.  ADDITIONAL AUTHORITIES OF PARTY STATE NURSE
454-17   LICENSING BOARDS. (a)  Notwithstanding any other powers, party
454-18   state nurse licensing boards have the authority to:
454-19               (1)  if otherwise permitted by state law, recover from
454-20   the affected nurse the costs of investigations and disposition of
454-21   cases resulting from any adverse action taken against the nurse;
454-22               (2)  issue subpoenas for hearings and investigations
454-23   that require the attendance and testimony of witnesses and the
454-24   production of evidence;
454-25               (3)  issue a cease and desist order to limit or revoke
454-26   a nurse's authority to practice in the state; and
454-27               (4)  adopt uniform rules as provided under Article 8(c)
 455-1   of this compact.
 455-2         (b)  A subpoena issued by a nurse licensing board in a party
 455-3   state for the attendance and testimony of witnesses or the
 455-4   production of evidence from another party state shall be enforced
 455-5   in the non-issuing party state by a court of competent jurisdiction
 455-6   in accordance with the practice and procedure applicable to
 455-7   subpoenas issued in proceedings pending before the court.  The
 455-8   issuing authority shall pay any witness fees, travel expenses,
 455-9   mileage, and other fees required by the service statutes of the
455-10   state in which a witness or evidence is located.
455-11         ARTICLE 7.  COORDINATED LICENSURE INFORMATION SYSTEM. (a)
455-12   All party states shall participate in a cooperative effort to
455-13   create a coordinated database of all licensed registered nurses,
455-14   licensed practical nurses, and licensed vocational nurses.  This
455-15   system will include information on the licensing and disciplinary
455-16   history of each nurse, as contributed by party states, to assist in
455-17   the coordination of nurse licensing and enforcement efforts.
455-18         (b)  Notwithstanding any other provision of law, all party
455-19   states' licensing boards shall promptly report to the coordinated
455-20   licensure information system adverse actions, actions against
455-21   multistate licensing privileges, any current significant
455-22   investigative information yet to result in adverse action, and
455-23   denials of applications and the reasons for the denials.
455-24         (c)  Current significant investigative information shall be
455-25   transmitted only to party state licensing boards through the
455-26   coordinated licensure information system.
455-27         (d)  Notwithstanding any other provision of law, all party
 456-1   states' licensing boards that contribute information to the
 456-2   coordinated licensure information system may designate information
 456-3   that may not be shared with non-party states or disclosed to other
 456-4   entities or individuals without the express permission of the
 456-5   contributing state.
 456-6         (e)  Any personally identifiable information obtained by a
 456-7   party state's licensing board from the coordinated licensure
 456-8   information system may not be shared with non-party states or
 456-9   disclosed to other entities or individuals except to the extent
456-10   permitted by the laws of the party state contributing the
456-11   information.
456-12         (f)  Information contributed to the coordinated licensure
456-13   information system that is subsequently required to be expunged by
456-14   the laws of the party state contributing that information shall be
456-15   expunged from the coordinated licensure information system.
456-16         (g)  Each compact administrator shall act jointly and in
456-17   consultation with the administrator of the coordinated licensure
456-18   information system to formulate necessary and proper procedures for
456-19   the identification, collection, and exchange of information under
456-20   this compact.
456-21         ARTICLE 8.  COMPACT ADMINISTRATION AND EXCHANGE OF
456-22   INFORMATION. (a)  The presiding officer of the nurse licensing
456-23   board of a party state or the presiding officer's designee shall be
456-24   the administrator of this compact for the state.
456-25         (b)  The compact administrator of each party state shall
456-26   furnish to the compact administrator of each other party state
456-27   information and documents including a uniform data set of
 457-1   investigations, identifying information, licensing data, and
 457-2   disclosable alternative program participation information to
 457-3   facilitate the administration of this compact.
 457-4         (c)  Compact administrators have the authority to develop
 457-5   uniform rules to facilitate and coordinate implementation of this
 457-6   compact. The uniform rules shall be adopted by party states under
 457-7   Article 6(a)(4) of this compact.
 457-8         ARTICLE 9.  IMMUNITY. A party state or an officer, employee,
 457-9   or agent of a party state's nurse licensing board who acts in
457-10   accordance with the provisions of this compact is not liable for
457-11   any good faith act or omission that occurs  while the person is
457-12   performing the person's duties under this compact. Good faith in
457-13   this article does not include wilful misconduct, gross negligence,
457-14   or recklessness.
457-15         ARTICLE 10.  EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT. (a)
457-16   This compact enters into force and takes effect for a state when
457-17   the state enacts this compact as law.  A party state may withdraw
457-18   from the compact by enacting a statute repealing the compact, but a
457-19   withdrawal takes effect six months after the date the withdrawing
457-20   state gives notice of the withdrawal to the executive heads of all
457-21   other party states.
457-22         (b)  No withdrawal shall affect the validity or applicability
457-23   by the licensing boards of states remaining party to the compact of
457-24   any report of adverse action occurring prior to the withdrawal.
457-25         (c)  This compact does not invalidate or prevent any nurse
457-26   licensing agreement or other cooperative arrangement between a
457-27   party state and a non-party state that is made in accordance with
 458-1   the other provisions of this compact.
 458-2         (d)  This compact may be amended by the party states. An
 458-3   amendment to this compact is not effective or binding on the party
 458-4   states unless and until all party states enact the amendment into
 458-5   the law of each state.
 458-6         ARTICLE 11.  CONSTRUCTION AND SEVERABILITY. (a)  This compact
 458-7   shall be liberally construed to effectuate the compact's purposes. 
 458-8         (b)  This compact is severable.  If a phrase, clause,
 458-9   sentence, or provision of this compact is declared to be contrary
458-10   to the constitution of a party state or the United States or the
458-11   applicability of this compact to a government, agency, person, or
458-12   circumstance is held invalid, the validity and applicability of the
458-13   remainder of the compact to a government, agency, person, or
458-14   circumstance is not affected. If this compact is held to be
458-15   contrary to the constitution of a party state, the compact remains
458-16   in full force and effect for the other party states and in full
458-17   force and effect for the party state affected for all severable
458-18   matters.
458-19         (c)  If the party states need to settle a dispute under the
458-20   compact the party states may submit the issues in dispute to an
458-21   arbitration panel comprised of:
458-22               (A)  an individual appointed by the compact
458-23   administrator in the home state;
458-24               (B)  an individual appointed by the compact
458-25   administrator in each remote state involved; and
458-26               (C)  an individual mutually agreed upon by the compact
458-27   administrators of each party state involved in the dispute.
 459-1         (d)  The decision of a majority of the arbitrators shall be
 459-2   final and binding.
 459-3         Sec. 304.002.  ADMINISTRATION OF COMPACT. The executive
 459-4   directors of the Board of Nurse Examiners and the Board of
 459-5   Vocational Nurse Examiners are the Nurse Licensure Compact
 459-6   administrators for this state.  The executive director of the Board
 459-7   of Nurse Examiners is responsible for administering matters
 459-8   relating to registered nurses.  The executive director of the Board
 459-9   of Vocational Nurse Examiners is responsible for administering
459-10   matters relating to licensed vocational nurses.
459-11         Sec. 304.003.  RULES. The Board of Nurse Examiners and the
459-12   Board of Vocational Nurse Examiners may adopt rules necessary to
459-13   implement this chapter.
459-14         Sec. 304.004.  GENERAL PROVISIONS. (a)  The terms "nurse,"
459-15   "registered nurse," and "vocational nurse" include nurses licensed
459-16   as registered nurses or vocational nurses by a state that is a
459-17   party to the Nurse Licensure Compact.
459-18         (b)  Unless the context indicates otherwise or doing so would
459-19   be inconsistent with the Nurse Licensure Compact, nurses practicing
459-20   in this state under a license issued by a state that is a party to
459-21   the Nurse Licensure Compact have the same rights and obligations as
459-22   imposed by the laws of this state on license holders of the Board
459-23   of Nurse Examiners or the Board of Vocational Nurse Examiners.
459-24         (c)  The Board of Nurse Examiners and the Board of Vocational
459-25   Nurse Examiners have the authority to determine whether a right or
459-26   obligation imposed on license holders applies to nurses practicing
459-27   in this state under a license issued by a state that is a party to
 460-1   the Nurse Licensure Compact unless that determination is
 460-2   inconsistent with the Nurse Licensure Compact.
 460-3         Sec. 304.005.  ENFORCEMENT. The Board of Nurse Examiners and
 460-4   the Board of Vocational Nurse Examiners are the state agencies
 460-5   responsible for taking action against registered and vocational
 460-6   nurses practicing in this state under a license issued by a state
 460-7   that is a party to the Nurse Licensure Compact as authorized by the
 460-8   Nurse Licensure Compact.  The action shall be taken in accordance
 460-9   with the same procedures for taking action against registered and
460-10   vocational nurses licensed by this state.
460-11         Sec. 304.006.  INFORMATION MAINTAINED UNDER COMPACT. (a)  On
460-12   request and payment of a reasonable fee, the Board of Nurse
460-13   Examiners and the Board of Vocational Nurse Examiners shall provide
460-14   a registered or vocational nurse licensed by this state with a copy
460-15   of information regarding the nurse maintained by the coordinated
460-16   licensure information system under Article 7 of the Nurse Licensure
460-17   Compact.
460-18         (b)  A board is not obligated to provide information not
460-19   available to the board or information that is not available to the
460-20   nurse under the laws of the state contributing the information to
460-21   the coordinated licensure information system.
460-22         Sec. 304.007.  ACCESS TO PRACTICE-RELATED INFORMATION.
460-23   Practice-related information provided by the Board of Nurse
460-24   Examiners or the Board of Vocational Nurse Examiners to registered
460-25   or vocational nurses licensed by this state shall be made available
460-26   by the boards on request and at a reasonable cost to nurses
460-27   practicing in this state under a license issued by a state that is
 461-1   a party to the Nurse Licensure Compact.
 461-2         Sec. 304.008.  DISCLOSURE OF PERSONAL INFORMATION. (a)  In
 461-3   reporting information to the coordinated licensure information
 461-4   system under Article 7 of the Nurse Licensure Compact, the Board of
 461-5   Nurse Examiners and the Board of Vocational Nurse Examiners may
 461-6   disclose personally identifiable information about the nurse,
 461-7   including social security number.
 461-8         (b)  The coordinated licensure information system may not
 461-9   share personally identifiable information with a state not a party
461-10   to the compact unless the state agrees not to disclose that
461-11   information to other persons.
461-12         Sec. 304.009.  WITHDRAWAL FROM COMPACT. (a)  The governor may
461-13   withdraw this state from the Nurse Licensure Compact if the Board
461-14   of Nurse Examiners or the Board of Vocational Nurse Examiners
461-15   notifies the governor that a state that is party to the compact
461-16   changed, after January 1, 1999, the state's requirements for
461-17   licensing a nurse and that the state's requirements, as changed,
461-18   are substantially lower than the requirements for licensing a nurse
461-19   in this state.
461-20         (b)  The governor may completely withdraw this state from the
461-21   Nurse Licensure Compact or may limit withdrawal to the application
461-22   of the compact to registered nurses or licensed vocational nurses. 
461-23         Sec. 304.010.  EXPIRATION OF COMPACT. The Nurse Licensure
461-24   Compact expires on December 31, 2005, unless this section is
461-25   repealed or the expiration date is extended.
461-26         (b)  Section 1, Chapter 775, Acts of the 76th Legislature,
461-27   Regular Session, 1999, is repealed.
 462-1                PART 7.  CHANGES RELATING TO SUBTITLE F,
 462-2                        TITLE 3, OCCUPATIONS CODE
 462-3         SECTION 14.151. (a)  Section 351.002, Occupations Code, is
 462-4   amended to conform to Section 1, Chapter 733, Acts of the 76th
 462-5   Legislature, Regular Session, 1999, by amending Subdivisions (7)
 462-6   and (8) and adding Subdivision (9) to read as follows:
 462-7               (7)  "Practice of therapeutic optometry" means using
 462-8   objective or subjective means, not including surgery or laser
 462-9   surgery, to:
462-10                     (A)  determine or measure the powers of vision of
462-11   the human eye as provided by Section 351.355;
462-12                     (B)  examine or diagnose visual defects, abnormal
462-13   conditions, or diseases of the human eye or adnexa;
462-14                     (C)  prescribe or fit lenses or prisms to correct
462-15   or remedy a defect or abnormal condition of vision as provided by
462-16   Section 351.356;
462-17                     (D)  administer or prescribe a drug or physical
462-18   treatment in the manner authorized by this chapter; or
462-19                     (E)  treat the visual system, including the eye
462-20   or adnexa as authorized by this chapter [without the use of surgery
462-21   or laser surgery].
462-22               (8)  "Surgery" means a procedure using instruments,
462-23   including lasers, scalpels, or needles, in which  human tissue is
462-24   cut, burned, vaporized, or otherwise altered by any mechanical
462-25   means, laser, or ionizing radiation.  The term includes procedures
462-26   using instruments that require closing by suturing, clamping, or
462-27   another device.  The term does not include a noninvasive procedure
 463-1   to remove a superficial foreign body in the conjunctiva, eyelid, or
 463-2   corneal epithelium that has not perforated the Bowman's membrane.
 463-3               (9)  "Therapeutic optometrist" means a person licensed
 463-4   under this chapter and authorized to practice therapeutic
 463-5   optometry.
 463-6         (b)  Section 1, Chapter 733, Acts of the 76th Legislature,
 463-7   Regular Session, 1999, is repealed.
 463-8         SECTION 14.152. (a)  Section 351.160, Occupations Code, is
 463-9   amended to conform to Section 2, Chapter 733, Acts of the 76th
463-10   Legislature, Regular Session, 1999, to read as follows:
463-11         Sec. 351.160.  PHARMACEUTICAL AGENTS. The board by rule shall
463-12   designate classifications of [specific] pharmaceutical agents that
463-13   therapeutic optometrists may use in the practice of therapeutic
463-14   optometry as authorized by this chapter.  Additional
463-15   classifications of medications authorized by Section 351.165(c)(3)
463-16   may only be approved as provided by that section.
463-17         (b)  Sections 351.358(b)-(f), Occupations Code, are amended
463-18   to conform to Section 2, Chapter 733, Acts of the 76th Legislature,
463-19   Regular Session, 1999, to read as follows:
463-20         (b)  A therapeutic optometrist may:
463-21               (1)  administer, perform, or prescribe ophthalmic
463-22   devices, procedures, and appropriate medications administered by
463-23   [over-the-counter oral medications, or] topical or oral means, in
463-24   accordance with this section and Section 351.3581 [ocular
463-25   pharmaceutical agents, other than antiviral or antiglaucoma
463-26   agents], to diagnose or treat visual defects, abnormal conditions,
463-27   or diseases of the human vision system, including the eye and [or]
 464-1   adnexa; or
 464-2               (2)  administer medication by parenteral means for a
 464-3   purpose and in a manner prescribed by Subsection (e) [remove
 464-4   superficial foreign matter or eyelashes from the external eye or
 464-5   adnexa].
 464-6         (c)  A therapeutic optometrist may prescribe oral medications
 464-7   only in the following classifications of oral pharmaceuticals:
 464-8               (1)  one 10-day supply of oral antibiotics;
 464-9               (2)  one 72-hour supply of oral antihistamines;
464-10               (3)  one seven-day supply of oral nonsteroidal
464-11   anti-inflammatories;
464-12               (4)  one three-day supply of any analgesic identified
464-13   in Schedules III, IV, and V of 21 U.S.C. Section 812; and
464-14               (5)  any other oral pharmaceutical recommended by the
464-15   Optometric Health Care Advisory Committee and approved by the board
464-16   and the Texas State Board of Medical Examiners.
464-17         (d)  A therapeutic optometrist may independently administer
464-18   oral carbonic anhydrase inhibitors for emergency purposes only and
464-19   shall immediately refer the patient to an ophthalmologist.
464-20         (e)  A therapeutic optometrist may inject appropriate
464-21   medication for a patient who has an anaphylactic reaction to
464-22   counteract the anaphylaxis.  The therapeutic optometrist shall
464-23   immediately refer the patient to a physician.  [If a therapeutic
464-24   optometrist uses a topical steroid of a strength of one percent
464-25   concentration to treat a condition and the condition does not
464-26   substantially improve before the eighth day after the date of
464-27   initial application, the therapeutic optometrist shall consult with
 465-1   an ophthalmologist.]
 465-2         [(d)  If a therapeutic optometrist uses a topical steroid of
 465-3   a strength of less than one percent concentration to treat a
 465-4   condition and the condition does not substantially improve before
 465-5   the 15th day after the date of initial application, the therapeutic
 465-6   optometrist shall consult with an ophthalmologist.]
 465-7         [(e)  On consultation under Subsection (c) or (d), the
 465-8   ophthalmologist shall establish a treatment regimen.]
 465-9         [(f)  This section does not authorize an optometrist to treat
465-10   glaucoma in a manner that was not permitted by law as the law
465-11   existed on August 31, 1991.]
465-12         (c)  Subchapter H, Chapter 351, Occupations Code, is amended
465-13   to conform to Section 2, Chapter 733, Acts of the 76th Legislature,
465-14   Regular Session, 1999, by adding Section 351.3581 to read as
465-15   follows:
465-16         Sec. 351.3581.  DIAGNOSIS AND TREATMENT OF GLAUCOMA. (a)  A
465-17   therapeutic optometrist may not administer or prescribe an oral or
465-18   parenteral medication or treat glaucoma unless the therapeutic
465-19   optometrist holds a certificate issued by the board.  A therapeutic
465-20   optometrist certified under this subsection shall be known as an
465-21   optometric glaucoma specialist.  To obtain a certificate, a
465-22   therapeutic optometrist must as required under Section 351.165(c):
465-23               (1)  complete an instructional clinical review course;
465-24   and
465-25               (2)  pass an examination approved by the board.
465-26         (b)  Not later than the 30th day after the date of the
465-27   initial diagnosis of glaucoma, a therapeutic optometrist shall
 466-1   engage in consultation with an ophthalmologist to develop an
 466-2   individual treatment plan that is approved by the therapeutic
 466-3   optometrist and ophthalmologist.  The parameters of the
 466-4   consultation shall be at the discretion of the ophthalmologist but
 466-5   must at least include confirmation of the diagnosis and a plan for
 466-6   comanagement of the patient, including periodic review of the
 466-7   patient's progress.
 466-8         (c)  A therapeutic optometrist required to engage in
 466-9   comanagement consultation with an ophthalmologist shall inform the
466-10   patient diagnosed with glaucoma that the therapeutic optometrist is
466-11   required to have the diagnosis confirmed and comanaged with an
466-12   ophthalmologist of the patient's choosing or, if the patient does
466-13   not choose an ophthalmologist, an ophthalmologist practicing in the
466-14   geographic area in which the therapeutic optometrist practices.
466-15         (d)  A therapeutic optometrist shall refer a patient to an
466-16   ophthalmologist if:
466-17               (1)  the patient is younger than 16 years of age and
466-18   has been diagnosed as having glaucoma;
466-19               (2)  the patient has been diagnosed as having acute
466-20   closed angle glaucoma;
466-21               (3)  the patient has been diagnosed as having malignant
466-22   glaucoma or neovascular glaucoma;
466-23               (4)  the therapeutic optometrist determines that a
466-24   patient's glaucoma is caused by a diabetic complication and, after
466-25   joint consultation with the physician treating the diabetes and an
466-26   ophthalmologist by telephone, fax, or another method, the physician
466-27   or ophthalmologist determines that the patient should be seen by
 467-1   the physician or ophthalmologist; or
 467-2               (5)  the therapeutic optometrist determines that a
 467-3   patient's glaucoma is not responding appropriately to a treatment
 467-4   specified in Subsection (f) and, after consulting a physician by
 467-5   telephone, fax, or another method, the physician determines that
 467-6   the patient should be seen by the physician or an appropriate
 467-7   specialist.
 467-8         (e)  A therapeutic optometrist who refers a patient to a
 467-9   physician or specialist shall inform the patient that the patient
467-10   may go to any physician or specialist the patient chooses.  This
467-11   subsection does not prevent a therapeutic optometrist from
467-12   recommending a physician or specialist.
467-13         (f)  On making an initial diagnosis of glaucoma, a
467-14   therapeutic optometrist shall set a target pressure that is not
467-15   more than 80 percent of the initial intraocular pressure.  The
467-16   patient's glaucoma is not considered to be appropriately responding
467-17   to treatment if the patient fails to achieve the target pressure
467-18   within an appropriate time.
467-19         (g)  Before a therapeutic optometrist may prescribe a beta
467-20   blocker, the therapeutic optometrist must take a complete case
467-21   history of the patient and determine whether the patient has had a
467-22   physical examination within the 180 days preceding the date of
467-23   taking the history.  If the patient has not had a physical
467-24   examination or if the patient has a history of congestive heart
467-25   failure, bradycardia, heart block, asthma, or chronic obstructive
467-26   pulmonary disease, the therapeutic optometrist must refer the
467-27   patient to a physician for a physical examination before initiating
 468-1   beta blocker therapy.
 468-2         (h)  A therapeutic optometrist who diagnoses acute closed
 468-3   angle glaucoma may initiate appropriate emergency treatment for a
 468-4   patient but shall refer the patient to a physician in a timely
 468-5   manner.
 468-6         (i)  A physician may charge a reasonable consultation fee for
 468-7   a consultation given as provided by this section.
 468-8         (j)  A physician to whom a patient is referred by a
 468-9   therapeutic optometrist under this section shall forward to the
468-10   therapeutic optometrist, not later than the 30th day after first
468-11   seeing the patient, a written report on the results of the
468-12   referral.  The therapeutic optometrist shall maintain the report in
468-13   the patient's records.  A physician who, for a medically
468-14   appropriate reason, does not return a patient to the therapeutic
468-15   optometrist who referred the patient shall state in the physician's
468-16   report to the therapeutic optometrist the specific medical reason
468-17   for failing to return the patient.
468-18         (d)  Section 351.360, Occupations Code, is amended to conform
468-19   to Section 2, Chapter 733, Acts of the 76th Legislature, Regular
468-20   Session, 1999, to read as follows:
468-21         Sec. 351.360.  PROFESSIONAL STANDARD OF THERAPEUTIC
468-22   OPTOMETRIST. A therapeutic optometrist, including an optometric
468-23   glaucoma specialist, is subject to the same standard of
468-24   professional care and judgment as a person practicing as an
468-25   ophthalmologist under Subtitle B.
468-26         (e)  Subchapter J, Chapter 351, Occupations Code, is amended
468-27   to conform to Section 2, Chapter 733, Acts of the 76th Legislature,
 469-1   Regular Session, 1999, by adding Section 351.4521 to read as
 469-2   follows:
 469-3         Sec. 351.4521.  PERFORMANCE OF SURGERY PROHIBITED. A
 469-4   therapeutic optometrist may not perform surgery or laser surgery.
 469-5         (f)  Section 2, Chapter 733, Acts of the 76th Legislature,
 469-6   Regular Session, 1999, is repealed.
 469-7         SECTION 14.153. (a)  Section 351.163(c), Occupations Code, is
 469-8   amended to conform to Section 6, Chapter 20, Acts of the 76th
 469-9   Legislature, Regular Session, 1999, to read as follows:
469-10         (c)  A [Not later than September 1 of each year, the
469-11   executive director shall send a] certified copy of the record
469-12   described by Subsection (b) [to the secretary of state for
469-13   permanent record. A certified copy of the record], marked with the
469-14   hand and seal of the executive director, [sent to the secretary of
469-15   state,] is:
469-16               (1)  admissible evidence in all courts; and
469-17               (2)  prima facie evidence of all matters contained in
469-18   the record.
469-19         (b)  Section 6, Chapter 20, Acts of the 76th Legislature,
469-20   Regular Session, 1999, is repealed.
469-21         SECTION 14.154. (a)  Subchapter D, Chapter 351, Occupations
469-22   Code, is amended to conform to Section 3, Chapter 733, Acts of the
469-23   76th Legislature, Regular Session, 1999, by adding Section 351.165
469-24   to read as follows:
469-25         Sec. 351.165.  OPTOMETRIC HEALTH CARE ADVISORY COMMITTEE. (a)
469-26   The Optometric Health Care Advisory Committee consists of six
469-27   members appointed as follows:
 470-1               (1)  two members who are therapeutic optometrists,
 470-2   appointed by the board;
 470-3               (2)  two members who are board-certified
 470-4   ophthalmologists, appointed by the Texas State Board of Medical
 470-5   Examiners; and
 470-6               (3)  two members who are pharmacologists, appointed by
 470-7   the Texas State Board of Pharmacy.
 470-8         (b)  Members of the committee serve staggered two-year terms,
 470-9   with the terms of half of the members expiring September 1 each
470-10   year.
470-11         (c)  The committee shall make recommendations that:
470-12               (1)  establish requirements for the education and
470-13   clinical training necessary for certification as an optometric
470-14   glaucoma specialist;
470-15               (2)  establish the parameters of care for treatment of
470-16   ocular diseases and conditions by optometric glaucoma specialists
470-17   as health care technology advances; and
470-18               (3)  identify additional classes of pharmaceuticals
470-19   under Section 351.358(c) that are effective treatments for ocular
470-20   diseases and conditions and that may be effectively used by
470-21   certified optometric glaucoma specialists.
470-22         (d)  A person is not eligible for appointment as a
470-23   pharmacologist member of the committee if the person is licensed as
470-24   a therapeutic optometrist or ophthalmologist or is related within
470-25   the second degree by affinity or consanguinity, as determined under
470-26   Chapter 573, Government Code, to a person who is licensed as a
470-27   therapeutic optometrist or ophthalmologist.
 471-1         (e)  In making any recommendation, the committee shall
 471-2   consider patient safety, patient costs, the effect on a patient's
 471-3   access to health care, patient convenience, and any added
 471-4   efficiencies to the health care delivery system the decision may
 471-5   involve.
 471-6         (f)  Before a recommendation made by the committee may become
 471-7   law, the board and the Texas State Board of Medical Examiners must
 471-8   adopt the recommendation.  If either board fails to adopt a
 471-9   recommendation of the committee, that board must articulate a sound
471-10   scientific reason for the failure to adopt.
471-11         (g)  Unless continued in existence by act of the legislature,
471-12   the Optometric Health Care Advisory Committee is abolished and this
471-13   section expires September 1, 2005.
471-14         (b)  Section 3, Chapter 733, Acts of the 76th Legislature,
471-15   Regular Session, 1999, is repealed.
471-16         SECTION 14.155. (a)  Section 351.254, Occupations Code, is
471-17   amended to conform to Section 1, Chapter 939, Acts of the 76th
471-18   Legislature, Regular Session, 1999, by adding Subsection (c) to
471-19   read as follows:
471-20         (c)  An applicant who meets the other requirements of this
471-21   section may take the examination without having graduated as
471-22   required by Subsection (a)  if the dean of a college of optometry
471-23   that meets the requirements of the board notifies the board in
471-24   writing that the applicant is enrolled in good standing in the
471-25   college and is in the final semester before graduation.
471-26         (b)  Section 1, Chapter 939, Acts of the 76th Legislature,
471-27   Regular Session, 1999, is repealed.
 472-1         SECTION 14.156. (a)  Subchapter F, Chapter 351, Occupations
 472-2   Code, is amended to conform to Section 2, Chapter 939, Acts of the
 472-3   76th Legislature, Regular Session, 1999, by adding Section 351.2595
 472-4   to read as follows:
 472-5         Sec. 351.2595.  LICENSE WITHOUT EXAMINATION. The board may
 472-6   issue a license to practice therapeutic optometry without requiring
 472-7   the applicant to pass all or part of the examination required by
 472-8   Section 351.253 if:
 472-9               (1)  the applicant is licensed in good standing as a
472-10   therapeutic optometrist in another state;
472-11               (2)  the applicant has passed an examination that is
472-12   equivalent or superior to the examination required by Section
472-13   351.253;
472-14               (3)  during at least five of the seven years preceding
472-15   the application date, the applicant has been:
472-16                     (A)  actively engaged in the practice of
472-17   therapeutic optometry; or
472-18                     (B)  engaged in full-time teaching at an
472-19   accredited college of optometry or medicine;
472-20               (4)  there are no pending disciplinary actions against
472-21   the applicant in the state in which the applicant is licensed; and
472-22               (5)  the applicant's license has never been suspended
472-23   or revoked.
472-24         (b)  Section 2, Chapter 939, Acts of the 76th Legislature,
472-25   Regular Session, 1999, is repealed.
472-26         SECTION 14.157. (a)  Subchapter H, Chapter 351, Occupations
472-27   Code, is amended to conform to Section 2, Chapter 948, Acts of the
 473-1   76th Legislature, Regular Session, 1999, by adding Section 351.366
 473-2   to read as follows:
 473-3         Sec. 351.366.  AUTHORITY TO FORM CERTAIN JOINTLY OWNED
 473-4   ENTITIES. (a)  Except as provided by Section 351.361 or 351.457, an
 473-5   optometrist or therapeutic optometrist and a physician may, for the
 473-6   purposes described by Subsection (b), organize, jointly own, and
 473-7   manage any legal entity, including:
 473-8               (1)  a partnership under the Texas Revised Partnership
 473-9   Act (Article 6132b-1.01 et seq., Vernon's Texas Civil Statutes);
473-10               (2)  a limited partnership under the Texas Revised
473-11   Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil
473-12   Statutes); or
473-13               (3)  a limited liability company under the Texas
473-14   Limited Liability Company Act (Article 1528n, Vernon's Texas Civil
473-15   Statutes).
473-16         (b)  An entity authorized under Subsection (a) may:
473-17               (1)  own real property, other physical facilities, or
473-18   equipment for the delivery of health care services or management;
473-19               (2)  lease, rent, or otherwise acquire the use of real
473-20   property, other physical facilities, or equipment for the delivery
473-21   of health care services or management; or
473-22               (3)  employ or otherwise use a person who is not an
473-23   optometrist, therapeutic optometrist, or physician for the delivery
473-24   of health care services or management.
473-25         (c)  Only an optometrist, therapeutic optometrist, or
473-26   physician may have an ownership interest in an entity authorized
473-27   under Subsection (a).  This subsection does not prohibit an entity
 474-1   from making one or more payments to an owner's estate following the
 474-2   owner's death under an agreement with the owner or as otherwise
 474-3   authorized or required by law.
 474-4         (b)  Section 2, Chapter 948, Acts of the 76th Legislature,
 474-5   Regular Session, 1999, is repealed.
 474-6         SECTION 14.158. (a)  Section 352.053(c), Occupations Code, is
 474-7   amended to conform to Section 15.01, Chapter 1411, Acts of the 76th
 474-8   Legislature, Regular Session, 1999, to read as follows:
 474-9         (c)  The board may not adopt substantive rules relating to
474-10   this chapter other than substantive rules described by Subsection
474-11   (b) of this section, Section 352.055, and Section 352.153.
474-12         (b)  Section 15.01, Chapter 1411, Acts of the 76th
474-13   Legislature, Regular Session, 1999, is repealed.
474-14         SECTION 14.159. (a)  Subchapter B, Chapter 352, Occupations
474-15   Code, is amended to conform to Section 15.02, Chapter 1411, Acts of
474-16   the 76th Legislature, Regular Session, 1999, by adding Section
474-17   352.055 to read as follows:
474-18         Sec. 352.055.  RULES REGARDING ADVERTISING OR COMPETITIVE
474-19   BIDDING. (a)  The board may not adopt rules restricting advertising
474-20   or competitive bidding by a registrant except to prohibit false,
474-21   misleading, or deceptive practices.
474-22         (b)  In its rules to prohibit false, misleading, or deceptive
474-23   practices, the board may not include a rule that:
474-24               (1)  restricts the use of any medium for advertising;
474-25               (2)  restricts the use of a registrant's personal
474-26   appearance or voice in an advertisement;
474-27               (3)  relates to the size or duration of an
 475-1   advertisement by the registrant; or
 475-2               (4)  restricts the registrant's advertisement under a
 475-3   trade name.
 475-4         (b)  Section 15.02, Chapter 1411, Acts of the 76th
 475-5   Legislature, Regular Session, 1999, is repealed.
 475-6         SECTION 14.160. (a)  Subchapter C, Chapter 352, Occupations
 475-7   Code, is amended to conform to Section 15.03, Chapter 1411, Acts of
 475-8   the 76th Legislature, Regular Session, 1999, by adding Section
 475-9   352.1031 to read as follows:
475-10         Sec. 352.1031.  NOTICE OF EXAMINATION RESULTS. (a)  Not later
475-11   than the 30th day after the date a person takes a qualifying
475-12   examination under this chapter, the department  shall notify the
475-13   person of the results of the examination.
475-14         (b)  If the examination is graded or reviewed by a testing
475-15   service:
475-16               (1)  the department shall notify the person of the
475-17   results of the examination not later than the 14th day after the
475-18   date the department receives the results from the testing service;
475-19   and
475-20               (2)  if notice of the examination results will be
475-21   delayed for longer than 90 days after the examination date, the
475-22   department shall notify the person of the reason for the delay
475-23   before the 90th day.
475-24         (c)  The department may require a testing service to notify a
475-25   person of the results of the person's examination.
475-26         (d)  If requested in writing by a person who fails a
475-27   qualifying examination administered under this chapter, the
 476-1   department shall provide to the person an analysis of the person's
 476-2   performance on the examination.
 476-3         (b)  Section 15.03, Chapter 1411, Acts of the 76th
 476-4   Legislature, Regular Session, 1999, is repealed.
 476-5         SECTION 14.161. (a)  Section 352.151, Occupations Code, is
 476-6   amended to conform to Section 15.04, Chapter 1411, Acts of the 76th
 476-7   Legislature, Regular Session, 1999, by adding Subsections (c) and
 476-8   (d) to read as follows:
 476-9         (c)  Not later than the 30th day before the date a person's
476-10   certificate of registration is scheduled to expire, the department
476-11   shall send written notice of the impending expiration to the person
476-12   at the person's last known address according to the records of the
476-13   department.
476-14         (d)  A person whose certificate of registration has expired
476-15   may not make a representation for which a certificate of
476-16   registration is required under Section 352.101 until the
476-17   certificate has been renewed.
476-18         (b)  Sections 352.152(b)-(e), Occupations Code, are amended
476-19   to conform to Section 15.04, Chapter 1411, Acts of the 76th
476-20   Legislature, Regular Session, 1999, to read as follows:
476-21         (b)  The application must be accompanied by [the renewal fee
476-22   and] evidence that the applicant has successfully completed the
476-23   continuing education courses required by board rule.
476-24         (c)  A person who is otherwise eligible to renew a
476-25   certificate of registration may renew an unexpired certificate by
476-26   paying the required renewal fee to the department before the
476-27   expiration date of the certificate.
 477-1         (d)  A person whose certificate of registration has been
 477-2   expired for 90 days or less may renew the certificate by paying to
 477-3   the department a renewal fee that is equal to 1-1/2 times the
 477-4   normally required renewal fee.
 477-5         (e)  A person whose certificate of registration has been
 477-6   expired for more than 90 days but less than one year may renew the
 477-7   certificate by paying to the department a renewal fee that is equal
 477-8   to two times the normally required renewal fee.
 477-9         (f)  A person whose certificate of registration has been
477-10   expired for one year or more may not renew the certificate.  The
477-11   person may obtain a new certificate of registration by complying
477-12   with the requirements and procedures, including the examination
477-13   requirements, for an original certificate. [The board may not
477-14   require more than 10 classroom hours of continuing education
477-15   courses each year.]
477-16         [(d)  A person registered under this chapter who does not
477-17   renew a certificate of registration by the expiration date may
477-18   renew the certificate not later than the 180th day after the
477-19   expiration date by paying the late renewal fee prescribed by the
477-20   board.]
477-21         [(e)  The certificate of registration of a person who fails
477-22   to meet the renewal requirements under this section is void until
477-23   the person submits a new application, pays the appropriate fees,
477-24   and meets the registration requirements provided by Subchapter C.] 
477-25         (c)  Subchapter D, Chapter 352, Occupations Code, is amended
477-26   to conform to Section 15.04, Chapter 1411, Acts of the 76th
477-27   Legislature, Regular Session, 1999, by adding Sections 352.153 and
 478-1   352.154 to read as follows:
 478-2         Sec. 352.153.  CONTINUING EDUCATION. (a)  The board shall
 478-3   recognize, prepare, or administer continuing education programs for
 478-4   its registrants.  A person registered under this chapter must
 478-5   participate in the programs to the extent required by the board to
 478-6   keep the person's certificate of registration.
 478-7         (b)  The board may not require more than 10 classroom hours
 478-8   of continuing education courses each year.
 478-9         Sec. 352.154.  RENEWAL OF EXPIRED CERTIFICATE BY OUT-OF-STATE
478-10   PRACTITIONER. (a)  A person who was registered in this state, moved
478-11   to another state, and is currently licensed or registered and has
478-12   been in practice in the other state for the two years preceding the
478-13   date of application may obtain a new certificate of registration
478-14   without reexamination.
478-15         (b)  The person must pay to the department a fee that is
478-16   equal to two times the normally required renewal fee for the
478-17   certificate.
478-18         (d)  Section 15.04, Chapter 1411, Acts of the 76th
478-19   Legislature, Regular Session, 1999, is repealed.
478-20         SECTION 14.162. (a)  Section 352.251, Occupations Code, is
478-21   amended to conform to Section 15.05, Chapter 1411, Acts of the 76th
478-22   Legislature, Regular Session, 1999, to read as follows:
478-23         Sec. 352.251.  DENIAL OF CERTIFICATE; DISCIPLINARY ACTION.
478-24   The department shall [may] deny an application for a certificate of
478-25   registration, suspend or revoke a certificate of registration, or
478-26   reprimand [place on probation] a person who is registered under
478-27   this chapter if the person:
 479-1               (1)  obtains a certificate of registration by means of
 479-2   fraud, misrepresentation, or concealment of a material fact;
 479-3               (2)  sells, barters, or offers to sell or barter a
 479-4   certificate of registration;
 479-5               (3)  violates a rule adopted by the board;
 479-6               (4)  violates Section 352.101; or
 479-7               (5)  practices medicine, therapeutic optometry, or
 479-8   optometry without a license.
 479-9         (b)  Subchapter F, Chapter 352, Occupations Code, is amended
479-10   to conform to Section 15.05, Chapter 1411, Acts of the 76th
479-11   Legislature, Regular Session, 1999, by adding Section 352.2525 to
479-12   read as follows:
479-13         Sec. 352.2525.  PROBATION. The board may place on probation a
479-14   person whose certificate of registration is suspended.  If the
479-15   suspension is probated, the board may require the person to:
479-16               (1)  report regularly to the department on matters that
479-17   are the basis of the probation;
479-18               (2)  limit practice to the areas prescribed by the
479-19   board; or
479-20               (3)  continue or review professional education until
479-21   the person attains a degree of skill satisfactory to the board in
479-22   those areas that are the basis of the probation.
479-23         (c)  Section 352.253(a), Occupations Code, is amended to
479-24   conform to Section 15.05, Chapter 1411, Acts of the 76th
479-25   Legislature, Regular Session, 1999, to read as follows:
479-26         (a)  A person whose application for a certificate of
479-27   registration is denied, [or] whose certificate of registration is
 480-1   suspended or revoked, or who is reprimanded is entitled to a
 480-2   hearing before the department if the person submits to the
 480-3   department a written request for the hearing.
 480-4         (d)  Section 15.05, Chapter 1411, Acts of the 76th
 480-5   Legislature, Regular Session, 1999, is repealed.
 480-6                PART 8.  CHANGES RELATING TO SUBTITLE G,
 480-7                        TITLE 3, OCCUPATIONS CODE
 480-8         SECTION 14.171. (a)  Section 401.201(a), Occupations Code, is
 480-9   amended to conform to Section 7, Chapter 1444, Acts of the 76th
480-10   Legislature, Regular Session, 1999, to read as follows:
480-11         (a)  With the assistance of the department, the board shall:
480-12               (1)  administer, coordinate, and enforce this chapter;
480-13               (2)  evaluate the qualifications of license applicants;
480-14               (3)  provide for the examination of license applicants;
480-15               (4)  in connection with a hearing under Section
480-16   401.454, issue subpoenas, examine witnesses, and administer oaths
480-17   under the laws of this state;
480-18               (5)  conduct hearings and keep records and minutes
480-19   necessary to the orderly administration of this chapter; and
480-20               (6)  investigate persons engaging in practices that
480-21   violate this chapter.
480-22         (b)  Section 7, Chapter 1444, Acts of the 76th Legislature,
480-23   Regular Session, 1999, is repealed.
480-24         SECTION 14.172. (a)  Subchapter F, Chapter 401, Occupations
480-25   Code, is amended to conform to Section 8, Chapter 1444, Acts of the
480-26   76th Legislature, Regular Session, 1999, by adding Section 401.2535
480-27   to read as follows:
 481-1         Sec. 401.2535.  COMPLAINT INVESTIGATION;  SUBPOENA. (a)  In
 481-2   an investigation of a complaint filed with the board, the board may
 481-3   request that the commissioner of public health or the
 481-4   commissioner's designee approve the issuance of a subpoena.  If the
 481-5   request is approved, the board may issue a subpoena to compel the
 481-6   attendance of a relevant witness or the production, for inspection
 481-7   or copying, of relevant evidence that is in this state.
 481-8         (b)  A subpoena may be served personally or by certified
 481-9   mail.
481-10         (c)  If a person fails to comply with a subpoena, the board,
481-11   acting through the attorney general, may file suit to enforce the
481-12   subpoena in a district court in Travis County or in the county in
481-13   which a hearing conducted by the board may be held.
481-14         (d)  On finding that good cause exists for issuing the
481-15   subpoena, the court shall order the person to comply with the
481-16   subpoena.  The court may punish a person who fails to obey the
481-17   court order.
481-18         (e)  The board may delegate the authority granted under
481-19   Subsection (a)  to the secretary-treasurer of the board.
481-20         (f)  The board shall pay a reasonable fee for photocopies
481-21   subpoenaed under this section in an amount not to exceed the amount
481-22   the board may charge for copies of its records.
481-23         (g)  The reimbursement of the expenses of a witness whose
481-24   attendance is compelled under this section is governed by Section
481-25   2001.103, Government Code.
481-26         (h)  All information and materials subpoenaed or compiled by
481-27   the board in connection with a complaint and investigation are
 482-1   confidential and not subject to disclosure under Chapter 552,
 482-2   Government Code, and not subject to disclosure, discovery,
 482-3   subpoena, or other means of legal compulsion for their release to
 482-4   anyone other than the board or its employees or agents involved in
 482-5   discipline of the holder of a license, except that this information
 482-6   may be disclosed to:
 482-7               (1)  persons involved with the board in a disciplinary
 482-8   action against the holder of a license;
 482-9               (2)  professional speech-language pathologist and
482-10   audiologist licensing or disciplinary boards in other
482-11   jurisdictions;
482-12               (3)  peer assistance programs approved by the board
482-13   under Chapter 467, Health and Safety Code;
482-14               (4)  law enforcement agencies; and
482-15               (5)  persons engaged in bona fide research, if all
482-16   individual-identifying information has been deleted.
482-17         (i)  The filing of formal charges by the board against a
482-18   holder of a license, the nature of those charges, disciplinary
482-19   proceedings of the board, and final disciplinary actions, including
482-20   warnings and reprimands, by the board are not confidential and are
482-21   subject to disclosure in accordance with Chapter 552, Government
482-22   Code.
482-23         (b)  Section 8, Chapter 1444, Acts of the 76th Legislature,
482-24   Regular Session, 1999, is repealed.
482-25         SECTION 14.173. (a)  Section 402.101, Occupations Code, is
482-26   amended to conform to Section 11, Chapter 1444, Acts of the 76th
482-27   Legislature, Regular Session, 1999, to read as follows:
 483-1         Sec. 402.101.  GENERAL POWERS AND DUTIES. With the assistance
 483-2   of the department, the committee shall:
 483-3               (1)  administer, coordinate, and enforce this chapter;
 483-4               (2)  evaluate the qualifications of applicants;
 483-5               (3)  examine applicants;
 483-6               (4)  in connection with a hearing under Section
 483-7   402.502, issue subpoenas, examine witnesses, and administer oaths
 483-8   under the laws of this state; and
 483-9               (5)  conduct hearings and keep records and minutes
483-10   necessary to the orderly administration of this chapter.
483-11         (b)  Section 11, Chapter 1444, Acts of the 76th Legislature,
483-12   Regular Session, 1999, is repealed.
483-13         SECTION 14.174.  (a)  Subchapter D, Chapter 402, Occupations
483-14   Code, is amended to conform to Section 12, Chapter 1444, Acts of
483-15   the 76th Legislature, Regular Session, 1999, by adding Section
483-16   402.154 to read as follows:
483-17         Sec. 402.154.  COMPLAINT INVESTIGATION;  SUBPOENA. (a)  In an
483-18   investigation of a complaint filed with the committee, the
483-19   committee may request that the commissioner of public health or the
483-20   commissioner's designee approve the issuance of a subpoena.  If the
483-21   request is approved, the committee may issue a subpoena to compel
483-22   the attendance of a relevant witness or the production, for
483-23   inspection or copying, of relevant evidence that is in this state. 
483-24         (b)  A subpoena may be served personally or by certified
483-25   mail.
483-26         (c)  If a person fails to comply with a subpoena, the
483-27   committee, acting through the attorney general, may file suit to
 484-1   enforce the subpoena in a district court in Travis County or in the
 484-2   county in which a hearing conducted by the committee may be held.
 484-3         (d)  On finding that good cause exists for issuing the
 484-4   subpoena, the court shall order the person to comply with the
 484-5   subpoena.  The court may punish a person who fails to obey the
 484-6   court order.
 484-7         (e)  The committee may delegate the authority granted under
 484-8   Subsection (a)  to the president or vice president of the
 484-9   committee.
484-10         (f)  The committee shall pay a reasonable fee for photocopies
484-11   subpoenaed under this section in an amount not to exceed the amount
484-12   the committee may charge for copies of its records.
484-13         (g)  The reimbursement of the expenses of a witness whose
484-14   attendance is compelled under this section is governed by Section
484-15   2001.103, Government Code.
484-16         (h)  All information and materials subpoenaed or compiled by
484-17   the committee in connection with a complaint and investigation are
484-18   confidential and not subject to disclosure under Chapter 552,
484-19   Government Code, and not subject to disclosure, discovery,
484-20   subpoena, or other means of legal compulsion for their release to
484-21   anyone other than the committee or its agents or employees who are
484-22   involved in discipline of the holder of a license, except that this
484-23   information may be disclosed to:
484-24               (1)  persons involved with the committee in a
484-25   disciplinary action against the holder of a license;
484-26               (2)  professional licensing or disciplinary boards for
484-27   the fitting and dispensing of hearing instruments in other
 485-1   jurisdictions;
 485-2               (3)  peer assistance programs approved by the board
 485-3   under Chapter 467, Health and Safety Code;
 485-4               (4)  law enforcement agencies; and
 485-5               (5)  persons engaged in bona fide research, if all
 485-6   individual-identifying information has been deleted.
 485-7         (i)  The filing of formal charges by the committee against a
 485-8   holder of a license, the nature of those charges, disciplinary
 485-9   proceedings of the committee, and final disciplinary actions,
485-10   including warnings and reprimands, by the committee are not
485-11   confidential and are subject to disclosure in accordance with
485-12   Chapter 552, Government Code.
485-13         (b)  Section 12, Chapter 1444, Acts of the 76th Legislature,
485-14   Regular Session, 1999, is repealed.
485-15                PART 9.  CHANGES RELATING TO SUBTITLE H,
485-16                        TITLE 3, OCCUPATIONS CODE
485-17         SECTION 14.201.  (a)  Section 451.001, Occupations Code, is
485-18   amended to conform to Section 1, Chapter 445, Acts of the 76th
485-19   Legislature, Regular Session, 1999, to read as follows:
485-20         Sec. 451.001.  DEFINITIONS.  In this chapter:
485-21               (1)  "Athletic injury" means an injury sustained by a
485-22   person as a result of the person's participation in an organized
485-23   sport or sport-related exercise or activity, including
485-24   interscholastic, intercollegiate, intramural, semiprofessional, and
485-25   professional sports activities.
485-26               (2)  "Athletic trainer" means a person who practices
485-27   athletic training, is licensed by the board, and may use the
 486-1   initials "LAT," "LATC," and "AT" to designate the person as an
 486-2   athletic trainer.  The terms "sports trainer" and "licensed
 486-3   athletic trainer" are equivalent to "athletic trainer."[, on the
 486-4   advice and consent of the team physician, practices the prevention
 486-5   or physical rehabilitation of injuries to athletes through the use
 486-6   of physical modalities, including heat, light, sound, cold,
 486-7   electricity, or mechanical devices related to rehabilitation and
 486-8   treatment.]
 486-9               (3)  "Athletic training" means the form of health care
486-10   that includes the practice of preventing, recognizing, assessing,
486-11   managing, treating, disposing of, and reconditioning athletic
486-12   injuries under the direction of a physician licensed in this state
486-13   or another qualified, licensed health professional who is
486-14   authorized to refer for health care services within the scope of
486-15   the person's license.
486-16               (4) [(2)]  "Board" means the Advisory Board of Athletic
486-17   Trainers.
486-18               (5)  "Commissioner" means the commissioner of public
486-19   health.
486-20               (6) [(3)]  "Department" means the Texas Department of
486-21   Health.
486-22         (b)  Section 451.003, Occupations Code, is amended to conform
486-23   to Section 1, Chapter 445, Acts of the 76th Legislature, Regular
486-24   Session, 1999, to read as follows:
486-25         Sec. 451.003.  APPLICABILITY.  This chapter does not apply
486-26   to:
486-27               (1)  a physician licensed by the Texas State Board of
 487-1   Medical Examiners;
 487-2               (2)  a dentist, licensed under the laws of this state,
 487-3   engaged in the practice of dentistry;
 487-4               (3)  a licensed optometrist or therapeutic optometrist
 487-5   engaged in the practice of optometry or therapeutic optometry as
 487-6   defined by statute;
 487-7               (4)  an occupational therapist engaged in the practice
 487-8   of occupational therapy;
 487-9               (5)  a nurse engaged in the practice of nursing;
487-10               (6)  a licensed podiatrist engaged in the practice of
487-11   podiatry as defined by statute;
487-12               (7)  a physical therapist engaged in the practice of
487-13   physical therapy;
487-14               (8)  a registered massage therapist engaged in the
487-15   practice of massage therapy; [or]
487-16               (9)  a commissioned or contract physician, physical
487-17   therapist, or physical therapist assistant in the United States
487-18   Army, Navy, Air Force, or Public Health Service; or
487-19               (10)  an athletic trainer who does not live in this
487-20   state, who is licensed, registered, or certified by an authority
487-21   recognized by the board, and who provides athletic training in this
487-22   state for a period determined by the board.
487-23         (c)  Section 1, Chapter 445, Acts of the 76th Legislature,
487-24   Regular Session, 1999, is repealed.
487-25         SECTION 14.202.  (a)  Section 451.051, Occupations Code, is
487-26   amended to conform to Section 13.01, Chapter 1411, Acts of the 76th
487-27   Legislature, Regular Session, 1999, by amending Subsections (b) and
 488-1   (c) and adding Subsection (d) to read as follows:
 488-2         (b)  The board consists of six members appointed by the
 488-3   governor with the advice and consent of the senate as follows:
 488-4               (1)  four members who are athletic trainers; and
 488-5               (2)  two members who represent the public.
 488-6         (c)  Each member of the board must be[:]
 488-7               [(1)]  a citizen of the United States and a resident of
 488-8   this state for the five years preceding appointment[; and]
 488-9               [(2)  a licensed athletic trainer].
488-10         (d)  Appointments to the board shall be made without regard
488-11   to the race, color, disability, sex, religion, age, or national
488-12   origin of the appointee.
488-13         (b)  Subchapter B, Chapter 451, Occupations Code, is amended
488-14   to conform to Sections 13.01 and 13.02, Chapter 1411, Acts of the
488-15   76th Legislature, Regular Session, 1999, by adding Sections
488-16   451.0511, 451.0512, 451.0513, and 451.057 to read as follows:
488-17         Sec. 451.0511.  PUBLIC MEMBER ELIGIBILITY.  A person may not
488-18   be a public member of the board if the person or the person's
488-19   spouse:
488-20               (1)  is registered, certified, or licensed by a
488-21   regulatory agency in the field of athletic training;
488-22               (2)  is employed by or participates in the management
488-23   of a business entity or other organization regulated by or
488-24   receiving money from the board;
488-25               (3)  owns or controls, directly or indirectly, more
488-26   than a 10 percent interest in a business entity or other
488-27   organization regulated by or receiving money from the board; or
 489-1               (4)  uses or receives a substantial amount of tangible
 489-2   goods, services, or money from the board other than compensation or
 489-3   reimbursement authorized by law for board membership, attendance,
 489-4   or expenses.
 489-5         Sec. 451.0512.  MEMBERSHIP RESTRICTIONS.  (a)  In this
 489-6   section, "Texas trade association" means a cooperative and
 489-7   voluntarily joined association of business or professional
 489-8   competitors in this state designed to assist its members and its
 489-9   industry or profession in dealing with mutual business or
489-10   professional problems and in promoting their common interest.
489-11         (b)  A person may not be a member of the board if:
489-12               (1)  the person is an officer, employee, or paid
489-13   consultant of a Texas trade association in the field of athletic
489-14   training; or
489-15               (2)  the person's spouse is an officer, manager, or
489-16   paid consultant of a Texas trade association in the field of
489-17   athletic training.
489-18         (c)  A person may not be a member of the board if the person
489-19   is required to register as a lobbyist under Chapter 305, Government
489-20   Code, because of the person's activities for compensation on behalf
489-21   of a profession related to the operation of the board.
489-22         Sec. 451.0513.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
489-23   removal from the board that a member:
489-24               (1)  does not have at the time of taking office the
489-25   qualifications required by Section 451.051;
489-26               (2)  does not maintain during service on the board the
489-27   qualifications required by Section 451.051;
 490-1               (3)  is ineligible for membership under Section
 490-2   451.0512;
 490-3               (4)  cannot, because of illness or disability,
 490-4   discharge the member's duties for a substantial part of the
 490-5   member's term; or
 490-6               (5)  is absent from more than half of the regularly
 490-7   scheduled board meetings that the member is eligible to attend
 490-8   during a calendar year  without an excuse approved by  the board.
 490-9         (b)  The validity of an action of the board is not affected
490-10   by the fact that it is taken when a ground for removal of a board
490-11   member exists.
490-12         (c)  If the commissioner has knowledge that a potential
490-13   ground for removal exists, the commissioner shall notify the
490-14   presiding officer of the board of the potential ground.  The
490-15   presiding officer shall then notify the governor and the attorney
490-16   general that a potential ground for removal exists.  If the
490-17   potential ground for removal involves the presiding officer, the
490-18   commissioner shall notify the next highest ranking officer of the
490-19   board, who shall then notify the governor and the attorney general
490-20   that a potential ground for removal exists.
490-21         Sec. 451.057.  TRAINING.  (a)  A person who is appointed to
490-22   and qualifies for office as a member of the board may not vote,
490-23   deliberate, or be counted as a member in attendance at a meeting of
490-24   the board until the person completes a training program that
490-25   complies with this section.
490-26         (b)  The training program must provide the person with
490-27   information regarding:
 491-1               (1)  the legislation that created the board;
 491-2               (2)  the programs operated by the board;
 491-3               (3)  the role and functions of the board;
 491-4               (4)  the rules of the board, with an emphasis on the
 491-5   rules that relate to disciplinary and investigatory authority;
 491-6               (5)  the current budget for the board;
 491-7               (6)  the results of the most recent formal audit of the
 491-8   board;
 491-9               (7)  the requirements of:
491-10                     (A)  the open meetings law, Chapter 551,
491-11   Government Code;
491-12                     (B)  the public information law, Chapter 552,
491-13   Government Code;
491-14                     (C)  the administrative procedure law, Chapter
491-15   2001, Government Code; and
491-16                     (D)  other laws relating to public officials,
491-17   including conflict of interest laws; and
491-18               (8)  any applicable ethics policies adopted by the
491-19   board or the Texas Ethics Commission.
491-20         (c)  A person appointed to the board is entitled to
491-21   reimbursement, as provided by the General Appropriations Act, for
491-22   the travel expenses incurred in attending the training program,
491-23   regardless of whether the attendance at the program occurs before
491-24   or after the person qualifies for office.
491-25         (c)  Subchapter C, Chapter 451, Occupations Code, is amended
491-26   to conform to Section 13.02, Chapter 1411, Acts of the 76th
491-27   Legislature, Regular Session, 1999, by adding Sections 451.1015 and
 492-1   451.1016 to read as follows:
 492-2         Sec. 451.1015.  STANDARDS OF CONDUCT INFORMATION. The
 492-3   commissioner or the commissioner's designee shall provide to
 492-4   members of the board, as often as necessary, information regarding
 492-5   the requirements for office under this chapter, including
 492-6   information regarding a person's responsibilities under applicable
 492-7   laws relating to standards of conduct for state officers.
 492-8         Sec. 451.1016.  DIVISION OF RESPONSIBILITIES. The board shall
 492-9   develop and implement policies that clearly separate the
492-10   policy-making responsibilities of the board and the management
492-11   responsibilities of the commissioner and the staff of the
492-12   department.
492-13         (d)  Sections 13.01 and 13.02, Chapter 1411, Acts of the 76th
492-14   Legislature, Regular Session, 1999, are repealed.
492-15         SECTION 14.203.  (a)  Section 451.055(a), Occupations Code,
492-16   is amended to conform to Section 13.03, Chapter 1411, Acts of the
492-17   76th Legislature, Regular Session, 1999, to read as follows:
492-18         (a)  The governor shall designate a member of the board as
492-19   the board's presiding officer to serve in that capacity at the will
492-20   of the governor.  The board shall elect an assistant [a] presiding
492-21   officer[, vice presiding officer,] and secretary-treasurer from its
492-22   members.  The assistant presiding officer[, vice presiding
492-23   officer,] and secretary-treasurer serve a one-year term.
492-24         (b)  Subchapter C, Chapter 451, Occupations Code, is amended
492-25   to conform to Sections 13.03 and 13.04, Chapter 1411, Acts of the
492-26   76th Legislature, Regular Session, 1999, and Section 4, Chapter
492-27   1444, Acts of the 76th Legislature, Regular Session, 1999, by
 493-1   adding Sections 451.108-451.110 to read as follows:
 493-2         Sec. 451.108.  PUBLIC PARTICIPATION.  The board shall develop
 493-3   and implement policies that provide the public with a reasonable
 493-4   opportunity to appear before the board and to speak on any issue
 493-5   under the jurisdiction of the board.
 493-6         Sec. 451.109.  COMPLAINTS.  (a)  The board shall maintain a
 493-7   file on each written complaint filed with the board.  The file must
 493-8   include:
 493-9               (1)  the name of the person who filed the complaint;
493-10               (2)  the date the complaint is received by the board;
493-11               (3)  the subject matter of the complaint;
493-12               (4)  the name of each person contacted in relation to
493-13   the complaint;
493-14               (5)  a summary of the results of the review or
493-15   investigation of the complaint; and
493-16               (6)  an explanation of the reason the file was closed,
493-17   if the board closed the file without taking action other than to
493-18   investigate the complaint.
493-19         (b)  The board shall provide to the person filing the
493-20   complaint and to each person who is a subject of the complaint a
493-21   copy of the board's policies and procedures relating to complaint
493-22   investigation and resolution.
493-23         (c)  The board, at least quarterly until final disposition of
493-24   the complaint, shall notify the person filing the complaint and
493-25   each person who is a subject of the complaint of the status of the
493-26   investigation unless the notice would jeopardize an undercover
493-27   investigation.
 494-1         Sec. 451.110.  SUBPOENAS.  (a)  In an investigation of a
 494-2   complaint filed with the board, the board may request that the
 494-3   commissioner or the commissioner's designee approve the issuance of
 494-4   a subpoena.  If the request is approved, the board may issue a
 494-5   subpoena to compel the attendance of a relevant witness or the
 494-6   production, for inspection or copying, of relevant evidence that is
 494-7   in this state.
 494-8         (b)  A subpoena may be served personally or by certified
 494-9   mail.
494-10         (c)  If a person fails to comply with the subpoena, the
494-11   board, acting through the attorney general, may file suit to
494-12   enforce the subpoena in a district court in Travis County or in the
494-13   county in which a hearing conducted by the board may be held.
494-14         (d)  On finding that good cause exists for issuing the
494-15   subpoena, the court shall order the person to comply with the
494-16   subpoena.  The court may punish a person who fails to obey the
494-17   court order.
494-18         (e)  The board may delegate the authority granted under
494-19   Subsection (a) to the secretary-treasurer or executive secretary of
494-20   the board.
494-21         (f)  The board shall pay a reasonable fee for photocopies
494-22   subpoenaed under this section in an amount not to exceed the amount
494-23   the board may charge for copies of its records.
494-24         (g)  The reimbursement of the expenses of a witness whose
494-25   attendance is compelled under this section is governed by Section
494-26   2001.103, Government Code.
494-27         (h)  All information and materials subpoenaed or compiled by
 495-1   the board in connection with a complaint and investigation are
 495-2   confidential and not subject to disclosure under Chapter 552,
 495-3   Government Code, and not subject to disclosure, discovery,
 495-4   subpoena, or other means of legal compulsion for their release to
 495-5   anyone other than the board or its employees or agents involved in
 495-6   discipline of the holder of a license, except that this information
 495-7   may be disclosed to:
 495-8               (1)  persons involved with the board in a disciplinary
 495-9   action against the holder of a license;
495-10               (2)  athletic trainer licensing or disciplinary boards
495-11   in other jurisdictions;
495-12               (3)  peer assistance programs approved by the board
495-13   under Chapter 467, Health and Safety Code;
495-14               (4)  law enforcement agencies; and
495-15               (5)  persons engaged in bona fide research, if all
495-16   individual-identifying information has been deleted.
495-17         (i)  The filing of formal charges by the board against a
495-18   holder of a license, the nature of those charges, disciplinary
495-19   proceedings of the board, and final disciplinary actions, including
495-20   warnings and reprimands, by the board are not confidential and are
495-21   subject to disclosure in accordance with Chapter 552, Government
495-22   Code.
495-23         (c)  The following are repealed:
495-24               (1)  Sections 13.03 and 13.04, Chapter 1411, Acts of
495-25   the 76th Legislature, Regular Session, 1999; and
495-26               (2)  Section 4, Chapter 1444, Acts of the 76th
495-27   Legislature, Regular Session, 1999.
 496-1         SECTION 14.204.  (a)  Section 451.101(a), Occupations Code,
 496-2   is amended to conform to Section 13.05, Chapter 1411, Acts of the
 496-3   76th Legislature, Regular Session, 1999, to read as follows:
 496-4         (a)  The board shall:
 496-5               (1)  [establish guidelines for athletic trainers,
 496-6   including requirements for continuing education;]
 496-7               [(2)]  adopt an official seal;
 496-8               (2) [(3)]  prescribe the application form for a license
 496-9   applicant;
496-10               (3) [(4)]  prescribe a suitable form for a license
496-11   certificate; and
496-12               (4) [(5)]  prepare and conduct an examination for
496-13   license applicants.
496-14         (b)  Subchapter E, Chapter 451, Occupations Code, is amended
496-15   to conform to Section 13.05, Chapter 1411, Acts of the 76th
496-16   Legislature, Regular Session, 1999, by adding Section 451.204 to
496-17   read as follows:
496-18         Sec. 451.204.  CONTINUING EDUCATION.  The board shall
496-19   recognize, prepare, or administer continuing education programs for
496-20   its license holders.  A license holder must participate in the
496-21   programs to the extent required by the board to keep the person's
496-22   license.
496-23         (c)  Section 13.05, Chapter 1411, Acts of the 76th
496-24   Legislature, Regular Session, 1999, is repealed.
496-25         SECTION 14.205.  (a)  Subchapter C, Chapter 451, Occupations
496-26   Code, is amended to conform to Section 13.06, Chapter 1411, Acts of
496-27   the 76th Legislature, Regular Session, 1999, by adding Section
 497-1   451.1035 to read as follows:
 497-2         Sec. 451.1035.  RULES REGARDING ADVERTISING OR COMPETITIVE
 497-3   BIDDING. (a)  The board may not adopt rules restricting advertising
 497-4   or competitive bidding  by a license holder except to prohibit
 497-5   false, misleading, or deceptive practices.
 497-6         (b)  In its rules to prohibit false, misleading, or deceptive
 497-7   practices, the board may not include a rule that:
 497-8               (1)  restricts the use of any medium for advertising;
 497-9               (2)  restricts the use of a license holder's personal
497-10   appearance or voice in an advertisement;
497-11               (3)  relates to the size or duration of an
497-12   advertisement by the license holder; or
497-13               (4)  restricts the license holder's advertisement under
497-14   a trade name.
497-15         (b)  Section 13.06, Chapter 1411, Acts of the 76th
497-16   Legislature, Regular Session, 1999, is repealed.
497-17         SECTION 14.206.  (a)  Sections 451.202(a)-(d), Occupations
497-18   Code, are amended to conform to Section 13.07, Chapter 1411, Acts
497-19   of the 76th Legislature, Regular Session, 1999, to read as follows:
497-20         (a)  A person who is otherwise eligible to renew a license
497-21   may renew an unexpired license by paying the required renewal fee
497-22   to the board before the expiration date of the license.  A person
497-23   whose license has expired may not engage in activities that require
497-24   a license until the license has been renewed.
497-25         (b)  If the person's license has been expired for 90 days or
497-26   less, the person may renew the license by paying to the board a
497-27   [the] renewal fee that is 1-1/2 times the normally required renewal
 498-1   fee [and a fee that is equal to half of the examination fee for the
 498-2   license].
 498-3         (c)  If the person's license has been expired for longer than
 498-4   90 days but less than one year [two years], the person may renew
 498-5   the license by paying to the board a [all unpaid] renewal [fees and
 498-6   a] fee that is equal to two times the normally required renewal fee
 498-7   [the examination fee] for the license.
 498-8         (d)  If the person's license has been expired for one year
 498-9   [two years] or longer, the person may not renew the license.  The
498-10   person may obtain a new license by submitting to reexamination and
498-11   complying with the requirements and procedures for obtaining an
498-12   original license.
498-13         (b)  Section 451.203(b), Occupations Code, is amended to
498-14   conform to Section 13.07, Chapter 1411, Acts of the 76th
498-15   Legislature, Regular Session, 1999, to read as follows:
498-16         (b)  The person must pay to the board a fee that is equal to
498-17   two times the normally required renewal [the examination] fee for
498-18   the license.
498-19         (c)  Section 13.07, Chapter 1411, Acts of the 76th
498-20   Legislature, Regular Session, 1999, is repealed.
498-21         SECTION 14.207.  (a)  Section 451.251(a), Occupations Code,
498-22   is amended to conform to Section 13.08, Chapter 1411, Acts of the
498-23   76th Legislature, Regular Session, 1999, and Section 2, Chapter
498-24   445, Acts of the 76th Legislature, Regular Session, 1999, to read
498-25   as follows:
498-26         (a)  The board may refuse to issue a license to an applicant
498-27   and shall reprimand a license holder or [may] suspend, [or] revoke,
 499-1   or refuse to renew a [the] person's license if the person:
 499-2               (1)  has been convicted of a misdemeanor involving
 499-3   moral turpitude or a felony;
 499-4               (2)  obtained the license by fraud or deceit; [or]
 499-5               (3)  violated or conspired to violate this chapter or a
 499-6   rule adopted under this chapter; or
 499-7               (4)  provided services outside the scope of practice of
 499-8   athletic training.
 499-9         (b)  Subchapter F, Chapter 451, Occupations Code, is amended
499-10   to conform to Section 13.08, Chapter 1411, Acts of the 76th
499-11   Legislature, Regular Session, 1999, by adding Section 451.2512 to
499-12   read as follows:
499-13         Sec. 451.2512.  PROBATION.  The board may place on probation
499-14   a person whose license is suspended.  If a suspension is probated,
499-15   the board may require the person to:
499-16               (1)  report regularly to the board on matters that are
499-17   the basis of the probation;
499-18               (2)  limit practice to the areas prescribed by the
499-19   board; or
499-20               (3)  continue or review professional education until
499-21   the person attains a degree of skill satisfactory to the board in
499-22   those areas that are the basis of the probation.
499-23         (c)  Section 13.08, Chapter 1411, Acts of the 76th
499-24   Legislature, Regular Session, 1999, and Section 2, Chapter 445,
499-25   Acts of the 76th Legislature, Regular Session, 1999, are repealed.
499-26         SECTION 14.208.  (a)  Chapter 451, Occupations Code, is
499-27   amended to conform to Section 13.09, Chapter 1411, Acts of the 76th
 500-1   Legislature, Regular Session, 1999, by adding Subchapter H to read
 500-2   as follows:
 500-3                  SUBCHAPTER H.  ADMINISTRATIVE PENALTY
 500-4         Sec. 451.351.  IMPOSITION OF ADMINISTRATIVE PENALTY. (a)  The
 500-5   board may impose an administrative penalty on a person licensed
 500-6   under this chapter who violates this chapter or a rule or order
 500-7   adopted under this chapter. A penalty collected under this section
 500-8   or Section 451.352 shall be deposited in the state treasury in the
 500-9   general revenue fund.
500-10         (b)  A proceeding to impose the penalty is considered to be a
500-11   contested case under Chapter 2001, Government Code.
500-12         (c)  The amount of the penalty may not exceed $500 for each
500-13   violation, and each day a violation continues or occurs is a
500-14   separate violation for purposes of imposing a penalty.  The total
500-15   amount of the penalty assessed for a violation continuing or
500-16   occurring on separate days under this subsection may not exceed
500-17   $2,500.
500-18         (d)  The amount shall be based on:
500-19               (1)  the seriousness of the violation, including the
500-20   nature, circumstances, extent, and gravity of the violation;
500-21               (2)  the threat to health or safety caused by the
500-22   violation;
500-23               (3)  the history of previous violations;
500-24               (4)  the amount necessary to deter a future violation;
500-25               (5)  whether the violator demonstrated good faith,
500-26   including, when applicable, whether the violator made good faith
500-27   efforts to correct the violation; and
 501-1               (6)  any other matter that justice may require.
 501-2         (e)  If the executive secretary determines that a violation
 501-3   occurred, the executive secretary shall give written notice of the
 501-4   violation by certified mail to the person.
 501-5         (f)  The notice under Subsection (e) must:
 501-6               (1)  include a brief summary of the alleged violation;
 501-7               (2)  state the amount of the recommended penalty; and
 501-8               (3)  inform the person of the person's right to a
 501-9   hearing on the occurrence of the violation, the amount of the
501-10   penalty, or both.
501-11         (g)  Within 20 days after the date the person receives the
501-12   notice under Subsection (e), the person in writing may:
501-13               (1)  accept the determination and recommended penalty
501-14   of the executive secretary; or
501-15               (2)  make a request for a hearing on the occurrence of
501-16   the violation, the amount of the penalty, or both.
501-17         (h)  If the person accepts the determination and recommended
501-18   penalty or if the person fails to respond to the notice, the board
501-19   by order shall approve the determination and impose the recommended
501-20   penalty.
501-21         (i)  If the person requests a hearing, the board shall refer
501-22   the matter to the State Office of Administrative Hearings, which
501-23   shall promptly set a hearing date and give written notice of the
501-24   time and place of the hearing to the person. An administrative law
501-25   judge of the State Office of Administrative Hearings shall conduct
501-26   the hearing.
501-27         (j)  The administrative law judge shall make findings of fact
 502-1   and conclusions of law and promptly issue to the board a proposal
 502-2   for a decision about the occurrence of the violation and the amount
 502-3   of a proposed penalty.
 502-4         (k)  Based on the findings of fact, conclusions of law, and
 502-5   proposal for a decision, the board by order may determine that:
 502-6               (1)  a violation occurred and impose a penalty; or
 502-7               (2)  a violation did not occur.
 502-8         (l)  The notice of the board's order under Subsection (k)
 502-9   that is sent to the person in accordance with Chapter 2001,
502-10   Government Code, must include a statement of the right of the
502-11   person to judicial review of the order.
502-12         Sec. 451.352.  PAYMENT AND COLLECTION OF ADMINISTRATIVE
502-13   PENALTY; JUDICIAL REVIEW. (a)  Within 30 days after the date an
502-14   order of the board under Section 451.351(k) that imposes an
502-15   administrative penalty becomes  final, the person shall:
502-16               (1)  pay the penalty; or
502-17               (2)  file a petition for judicial review of the board's
502-18   order contesting the occurrence of the violation, the amount of the
502-19   penalty, or both.
502-20         (b)  Within the 30-day period prescribed by Subsection (a), a
502-21   person who files a petition for judicial review may:
502-22               (1)  stay enforcement of the penalty by:
502-23                     (A)  paying the penalty to the court for
502-24   placement in an escrow account; or
502-25                     (B)  giving the court a supersedeas bond approved
502-26   by the court that is:
502-27                           (i)  for the amount of the penalty; and
 503-1                           (ii)  effective until all judicial review
 503-2   of the board's order is final; or
 503-3               (2)  request the court to stay enforcement of the
 503-4   penalty by:
 503-5                     (A)  filing with the court a sworn affidavit of
 503-6   the person stating that the person is financially unable to pay the
 503-7   penalty and is financially unable to give the supersedeas bond; and
 503-8                     (B)  sending a copy of the affidavit to the board
 503-9   by certified mail.
503-10         (c)  If the board receives a copy of an affidavit under
503-11   Subsection (b)(2), the board may file with the court, within five
503-12   days after the date the copy is received, a contest to the
503-13   affidavit.  The court shall hold a hearing on the facts alleged in
503-14   the affidavit as soon as practicable and shall stay the enforcement
503-15   of the penalty on finding that the alleged facts are true.  The
503-16   person who files an affidavit has the burden of proving that the
503-17   person is financially unable to pay the penalty or to give a
503-18   supersedeas bond.
503-19         (d)  If the person does not pay the penalty and the
503-20   enforcement of the penalty is not stayed, the penalty may be
503-21   collected.  The attorney general may sue to collect the penalty.
503-22         (e)  If the court sustains the determination that a violation
503-23   occurred, the court may uphold or reduce the amount of the penalty
503-24   and order the person to pay the full or reduced amount of the
503-25   penalty.
503-26         (f)  If the court does not sustain the determination that a
503-27   violation occurred, the court shall order that a penalty is not
 504-1   owed.
 504-2         (g)  If the person paid the penalty and if the amount of the
 504-3   penalty is reduced or the penalty is not upheld by the court, the
 504-4   court shall order, when the court's judgment becomes final, that
 504-5   the appropriate amount plus accrued interest be remitted to the
 504-6   person within 30 days after the date the judgment of the court
 504-7   becomes final.  The interest accrues at the rate charged on loans
 504-8   to depository institutions by the New York Federal Reserve Bank.
 504-9   The interest shall be paid for the period beginning on the date the
504-10   penalty is paid and ending on the date the penalty is remitted.
504-11         (h)  If the person gave a supersedeas bond and the penalty is
504-12   not upheld by the court, the court shall order, when the court's
504-13   judgment becomes final, the release of the bond. If the person gave
504-14   a supersedeas bond and the amount of the penalty is reduced, the
504-15   court shall order the release of the bond after the person pays the
504-16   reduced amount.
504-17         (b)  Section 13.09, Chapter 1411, Acts of the 76th
504-18   Legislature, Regular Session, 1999, is repealed.
504-19         SECTION 14.209.  (a)  Section 453.106(c), Occupations Code,
504-20   is amended to conform to Section 5, Chapter 20, Acts of the 76th
504-21   Legislature, Regular Session, 1999, to read as follows:
504-22         (c)  On March 1 of each year, the coordinator of physical
504-23   therapy programs shall transmit an official copy of the list to the
504-24   executive council [and the secretary of state for permanent
504-25   record].
504-26         (b)  Section 5, Chapter 20, Acts of the 76th Legislature,
504-27   Regular Session, 1999, is repealed.
 505-1         SECTION 14.2095. Section 453.201(d), Occupations Code, is
 505-2   amended to more accurately reflect the law from which it was
 505-3   derived to read as follows:
 505-4         (d)  Unless the person is a physical therapist, a [A] person,
 505-5   including the person's employee or other agent or representative,
 505-6   may not use in connection with the person's name or business
 505-7   activity:
 505-8               (1)  the words "physical therapy," "physical
 505-9   therapist," "physiotherapy," "physiotherapist," "licensed physical
505-10   therapist," "registered physical therapist," or "physical therapist
505-11   assistant";
505-12               (2)  the letters "PT," "PhT," "LPT," "RPT," or "PTA";
505-13   or
505-14               (3)  any other words, letters, abbreviations, or
505-15   insignia indicating or implying, by any means or in any way, that
505-16   physical therapy is provided or supplied.
505-17         SECTION 14.210.  (a)  Section 453.254, Occupations Code, is
505-18   amended to conform to Section 1, Chapter 938, Acts of the 76th
505-19   Legislature, Regular Session, 1999, by adding Subsection (d) to
505-20   read as follows:
505-21         (d)  In developing a process under Subsection (a)  for the
505-22   evaluation and approval of continuing education courses, the board
505-23   shall authorize license holder peer organizations to evaluate and
505-24   approve courses in accordance with the established process.
505-25         (b)  Section 1, Chapter 938, Acts of the 76th Legislature,
505-26   Regular Session, 1999, is repealed.
505-27         SECTION 14.211.  (a)  Section 454.051(a), Occupations Code,
 506-1   is amended to conform to Section 1, Chapter 548, Acts of the 76th
 506-2   Legislature, Regular Session, 1999, to read as follows:
 506-3         (a)  The Texas Board of Occupational Therapy Examiners
 506-4   consists of nine [six] members appointed by the governor with the
 506-5   advice and consent of the senate as follows:
 506-6               (1)  four [three] occupational therapist members who
 506-7   have practiced occupational therapy for at least the three years
 506-8   preceding appointment to the board;
 506-9               (2)  two [one] occupational therapy assistant members,
506-10   each of whom [member who] has practiced as an occupational therapy
506-11   assistant for at least the three years preceding appointment to the
506-12   board; and
506-13               (3)  three [two] members who represent the public and
506-14   who are not occupational therapists.
506-15         (b)  Section 454.054(a), Occupations Code, is amended to
506-16   conform to Section 1, Chapter 548, Acts of the 76th Legislature,
506-17   Regular Session, 1999, to read as follows:
506-18         (a)  Members of the board serve staggered six-year terms,
506-19   with the terms of two members licensed under this chapter and one
506-20   member who represents the public expiring on February 1 of each
506-21   odd-numbered year.
506-22         (c)  Section 1, Chapter 548, Acts of the 76th Legislature,
506-23   Regular Session, 1999, is repealed.
506-24         SECTION 14.212.  (a)  Section 454.056(b), Occupations Code,
506-25   is amended to conform to Section 2, Chapter 548, Acts of the 76th
506-26   Legislature, Regular Session, 1999, to read as follows:
506-27         (b)  A member may receive reimbursement for meals, lodging,
 507-1   and transportation expenses as provided by the General
 507-2   Appropriations Act. [A member may not receive reimbursement for any
 507-3   other travel expenses, including expenses for meals and lodging.]
 507-4         (b)  Section 2, Chapter 548, Acts of the 76th Legislature,
 507-5   Regular Session, 1999, is repealed.
 507-6         SECTION 14.213.  (a)  Section 454.106(c), Occupations Code,
 507-7   is amended to conform to Section 8, Chapter 20, Acts of the 76th
 507-8   Legislature, Regular Session, 1999, to read as follows:
 507-9         (c)  On March 1 of each year, the coordinator of occupational
507-10   therapy programs shall transmit an official copy of the list to the
507-11   executive council [and the secretary of state for permanent
507-12   record].
507-13         (b)  Section 8, Chapter 20, Acts of the 76th Legislature,
507-14   Regular Session, 1999, is repealed.
507-15         SECTION 14.214.  (a)  Section 454.210, Occupations Code, is
507-16   amended to conform to Section 4, Chapter 548, Acts of the 76th
507-17   Legislature, Regular Session, 1999, to read as follows:
507-18         Sec. 454.210.  PROVISIONAL LICENSE.  (a)  On application, the
507-19   board shall issue a provisional license for the practice of
507-20   occupational therapy to an applicant who:
507-21               (1)  is licensed in good standing as an occupational
507-22   therapist or occupational therapy assistant in another state that
507-23   has licensing requirements that are substantially equivalent to the
507-24   requirements of this chapter; and
507-25               (2)  has passed a national examination or other
507-26   examination recognized by the board relating to the practice of
507-27   occupational therapy[; and]
 508-1               [(3)  is sponsored by a person licensed under this
 508-2   chapter with whom the provisional license holder may practice].
 508-3         (b)  [The board may waive the requirement of Subsection
 508-4   (a)(3) if the board determines that compliance with that
 508-5   requirement constitutes a hardship to the applicant.]
 508-6         [(c)]  A provisional license is valid until the date the
 508-7   board approves or denies the provisional license holder's
 508-8   application for an occupational therapist or occupational therapy
 508-9   assistant license.
508-10         (c) [(d)]  The board shall issue an occupational therapist or
508-11   occupational therapy assistant license to the provisional license
508-12   holder if:
508-13               (1)  the provisional license holder passes a
508-14   jurisprudence examination, if required;
508-15               (2)  the board verifies that the provisional license
508-16   holder has the academic and experience requirements for an
508-17   occupational therapist or occupational therapy assistant license;
508-18   and
508-19               (3)  the provisional license holder satisfies any other
508-20   requirements for an occupational therapist or occupational therapy
508-21   assistant license.
508-22         (d) [(e)]  The board must complete the processing of a
508-23   provisional license holder's application for a license not later
508-24   than the 180th day after the date the provisional license is
508-25   issued.  The board may extend that deadline if the results of an
508-26   examination have not been received by the board.
508-27         (b)  Section 4, Chapter 548, Acts of the 76th Legislature,
 509-1   Regular Session, 1999, is repealed.
 509-2         SECTION 14.215.  (a)  Section 454.213, Occupations Code, is
 509-3   amended to conform to Section 1, Chapter 1210, Acts of the 76th
 509-4   Legislature, Regular Session, 1999, to read as follows:
 509-5         Sec. 454.213.  ACCEPTED PRACTICE; PRACTITIONER'S
 509-6   [PHYSICIAN'S] REFERRAL. (a)  An occupational therapist may enter a
 509-7   case to:
 509-8               (1)  provide consultation and monitored services; or
 509-9               (2)  evaluate a person for the need for services.
509-10         (b)  Implementation of direct occupational therapy to a
509-11   person for a specific health care [medical] condition must be based
509-12   on a referral from:
509-13               (1)  a physician licensed by a state board of medical
509-14   examiners;
509-15               (2)  a dentist licensed by a state board of dental
509-16   examiners;
509-17               (3)  a chiropractor licensed by a state board of
509-18   chiropractic examiners;
509-19               (4)  a podiatrist licensed by a state board of
509-20   podiatric medical examiners; or
509-21               (5)  another qualified, licensed health care
509-22   professional who is authorized to refer for health care services
509-23   within the scope of the professional's license [to practice in this
509-24   state].
509-25         (c)  The professional who takes action under this section is
509-26   a referring practitioner.
509-27         (b)  Section 1, Chapter 1210, Acts of the 76th Legislature,
 510-1   Regular Session, 1999, is repealed.
 510-2         SECTION 14.216.  (a)  Subchapter G, Chapter 454, Occupations
 510-3   Code, is amended to conform to Section 7, Chapter 548, Acts of the
 510-4   76th Legislature, Regular Session, 1999, by adding Section 454.305
 510-5   to read as follows:
 510-6         Sec. 454.305.  EMERGENCY SUSPENSION.  (a)  The board may
 510-7   temporarily suspend a license issued under this chapter on an
 510-8   emergency basis if the board determines that the continued practice
 510-9   by the license holder constitutes a continuing or imminent threat
510-10   to the public health or welfare.
510-11         (b)  A temporary suspension under this section requires a
510-12   two-thirds vote by the board.
510-13         (c)  A license temporarily suspended under this section may
510-14   be suspended without notice or hearing if, at the time the
510-15   suspension is ordered, a hearing on whether to institute a
510-16   disciplinary proceeding against the license holder is scheduled to
510-17   be held not later than the 14th day after the date of the temporary
510-18   suspension. A second hearing on the suspended license must be held
510-19   not later than the 60th day after the date the temporary suspension
510-20   was ordered.  If the second hearing is not held within the required
510-21   time, the suspended license is automatically reinstated.
510-22         (d)  The board shall adopt rules that establish procedures
510-23   and standards for the temporary suspension of a license under this
510-24   section.
510-25         (b)  Section 7, Chapter 548, Acts of the 76th Legislature,
510-26   Regular Session, 1999, is repealed.
510-27         SECTION 14.217.  (a)  Subchapter G, Chapter 454, Occupations
 511-1   Code, is amended to conform to Section 3, Chapter 548, Acts of the
 511-2   76th Legislature, Regular Session, 1999, by adding Section 454.306
 511-3   to read as follows:
 511-4         Sec. 454.306.  SUBPOENA.  (a)  The board may request or
 511-5   compel by subpoena:
 511-6               (1)  the attendance of a witness for examination under
 511-7   oath; and
 511-8               (2)  the production for inspection and copying of
 511-9   records, documents, and other evidence relevant to the
511-10   investigation of an alleged violation of this chapter.
511-11         (b)  If a person fails to comply with a subpoena issued under
511-12   this section, the board, acting through the attorney general, may
511-13   bring an action to enforce the subpoena in a district court in
511-14   Travis County or in a county in which a hearing conducted by the
511-15   board may be held.  If the court determines that good cause exists
511-16   for the subpoena, the court shall order compliance.  The court may
511-17   punish for contempt a person who does not obey the order.
511-18         (b)  Section 3, Chapter 548, Acts of the 76th Legislature,
511-19   Regular Session, 1999, is repealed.
511-20         SECTION 14.218.  (a)  Subchapter H, Chapter 454, Occupations
511-21   Code, is amended to conform to Section 6, Chapter 548, Acts of the
511-22   76th Legislature, Regular Session, 1999, by adding Section 454.3521
511-23   to read as follows:
511-24         Sec. 454.3521.  ADMINISTRATIVE PENALTY.  (a)  The board may
511-25   impose an administrative penalty against a person licensed or
511-26   facility registered under this chapter who violates this chapter or
511-27   a rule or order adopted under this chapter.
 512-1         (b)  The penalty may not exceed $200, and each day a
 512-2   violation continues or occurs is a separate violation for the
 512-3   purpose of imposing a penalty.  The amount of the penalty shall be
 512-4   based on:
 512-5               (1)  the seriousness of the violation, including the
 512-6   nature, circumstances, extent, and gravity of any prohibited acts,
 512-7   and the hazard or potential hazard created to the health, safety,
 512-8   or economic welfare of the public;
 512-9               (2)  the history of previous violations;
512-10               (3)  the amount necessary to deter a future violation;
512-11               (4)  efforts to correct the violation; and
512-12               (5)  any other matter that justice requires.
512-13         (c)  The person may stay enforcement during the time the
512-14   order is under judicial review if the person pays the penalty to
512-15   the court clerk or files a supersedeas bond with the court in the
512-16   amount of the penalty.  A person who cannot afford to pay the
512-17   penalty or file the bond may stay enforcement by filing an
512-18   affidavit like that required by the Texas Rules of Civil Procedure
512-19   for a party who cannot afford to file security for costs, except
512-20   that the board may contest the affidavit as provided by those
512-21   rules.
512-22         (d)  A proceeding to impose an administrative  penalty is
512-23   subject to Chapter 2001, Government Code.
512-24         (b)  Section 6, Chapter 548, Acts of the 76th Legislature,
512-25   Regular Session, 1999, is repealed.
512-26         SECTION 14.219.  (a)  Subchapter B, Chapter 455, Occupations
512-27   Code, is amended to conform to Section 18.03, Chapter 1411, Acts of
 513-1   the 76th Legislature, Regular Session, 1999, by adding Sections
 513-2   455.056 and 455.057 to read as follows:
 513-3         Sec. 455.056.  RULES REGARDING ADVERTISING OR COMPETITIVE
 513-4   BIDDING BY REGISTRANT. (a)  The board may not adopt rules
 513-5   restricting advertising or competitive bidding by a person
 513-6   registered under this chapter except to prohibit false, misleading,
 513-7   or deceptive practices.
 513-8         (b)  In its rules to prohibit false, misleading, or deceptive
 513-9   practices, the board may not include a rule that:
513-10               (1)  restricts the use of any medium for advertising;
513-11               (2)  restricts the use of a registered person's
513-12   personal appearance or voice in an advertisement;
513-13               (3)  relates to the size or duration of an
513-14   advertisement by the registered person; or
513-15               (4)  restricts the registered person's advertisement
513-16   under a trade name.
513-17         Sec. 455.057.  CONTINUING EDUCATION.  The board shall
513-18   recognize, prepare, or administer continuing education programs for
513-19   persons registered under this chapter.  A registered person must
513-20   participate in the programs to the extent required by the board to
513-21   keep the person's certificate of registration.
513-22         (b)  Subchapter D, Chapter 455, Occupations Code, is amended
513-23   to conform to Section 18.03, Chapter 1411, Acts of the 76th
513-24   Legislature, Regular Session, 1999, by adding Section 455.1565 to
513-25   read as follows:
513-26         Sec. 455.1565.  NOTIFICATION OF EXAMINATION RESULTS. (a)  Not
513-27   later than the 30th day after the date a person takes a
 514-1   registration examination under this chapter, the department shall
 514-2   notify the person of the results of the examination.
 514-3         (b)  If the examination is graded or reviewed by a  testing
 514-4   service:
 514-5               (1)  the department shall notify the person of the
 514-6   results of the examination not later than the 14th day after the
 514-7   date the department receives the results from the testing service;
 514-8   and
 514-9               (2)  if notice of the examination results will be
514-10   delayed for longer than 90 days after the examination date, the
514-11   department shall notify the person of the reason for the delay
514-12   before the 90th day.
514-13         (c)  The department may require a testing service to notify a
514-14   person of the results of the person's examination.
514-15         (d)  If requested in writing by a person who fails a
514-16   registration examination administered under this chapter, the
514-17   department shall furnish the person with an analysis of the
514-18   person's performance on the examination.
514-19         (c)  Section 18.03, Chapter 1411, Acts of the 76th
514-20   Legislature, Regular Session, 1999, is repealed.
514-21         SECTION 14.220.  (a)  Section 455.156(b), Occupations Code,
514-22   is amended to conform to Section 18.01, Chapter 1411, Acts of the
514-23   76th Legislature, Regular Session, 1999, to read as follows:
514-24         (b)  An applicant for registration under this section must be
514-25   an individual and:
514-26               (1)  present evidence satisfactory to the board that
514-27   the person:
 515-1                     (A)  has satisfactorily completed massage therapy
 515-2   studies in a 300-hour, supervised course of instruction provided by
 515-3   a massage therapy instructor, a registered massage school, a
 515-4   state-approved educational institution, or any combination of
 515-5   instructors or schools, in which:
 515-6                           (i)  125 hours are dedicated to the study
 515-7   of Swedish massage therapy techniques and taught by a massage
 515-8   therapy instructor;
 515-9                           (ii)  50 hours are dedicated to the study
515-10   of anatomy;
515-11                           (iii)  25 hours are dedicated to the study
515-12   of physiology;
515-13                           (iv)  15 hours are dedicated to the study
515-14   of hydrotherapy;
515-15                           (v)  15 hours are dedicated to the study of
515-16   business practices and professional ethics standards;
515-17                           (vi)  20 hours are dedicated to the study
515-18   of health and hygiene; and
515-19                           (vii)  50 hours are spent in an internship
515-20   program; or
515-21                     (B)  [is registered as a massage therapist in
515-22   another state or country that the department determines maintains
515-23   standards and requirements of practice and licensing or
515-24   registration that substantially conform to the standards and
515-25   requirements of this state; or]
515-26                     [(C)]  has practiced massage therapy as a
515-27   profession for not less than five years in another state or country
 516-1   that the department determines does not maintain standards and
 516-2   requirements of practice and licensing or registration that
 516-3   substantially conform to the standards and requirements of this
 516-4   state; and
 516-5               (2)  pass the practical and written portions of the
 516-6   state examination.
 516-7         (b)  Section 18.01, Chapter 1411, Acts of the 76th
 516-8   Legislature, Regular Session, 1999, is repealed.
 516-9         SECTION 14.221.  (a)  Subchapter D, Chapter 455, Occupations
516-10   Code, is amended to conform to Section 18.02, Chapter 1411, Acts of
516-11   the 76th Legislature, Regular Session, 1999, by adding Sections
516-12   455.1571 and 455.1572 to read as follows:
516-13         Sec. 455.1571.  APPLICANT REGISTERED IN ANOTHER JURISDICTION.
516-14   (a)  The board may waive any prerequisite to obtaining a
516-15   certificate of registration for an applicant for registration as a
516-16   massage therapist or massage therapy instructor after reviewing the
516-17   applicant's credentials and determining that the applicant holds a
516-18   license or certificate of registration issued by another
516-19   jurisdiction that has licensing or registration requirements
516-20   substantially equivalent to those of this state.
516-21         (b)  The board may waive any prerequisite to obtaining a
516-22   certificate of registration for an applicant for registration as a
516-23   massage therapist or massage therapy instructor who holds a license
516-24   or certificate of registration issued by another jurisdiction with
516-25   which this state has a reciprocity agreement.  The board may make
516-26   an agreement, subject to the approval of the governor, with another
516-27   state to allow for registration by reciprocity.
 517-1         Sec. 455.1572.  PROVISIONAL REGISTRATION.  (a)  The board may
 517-2   issue a provisional certificate of registration to an applicant for
 517-3   registration as a massage therapist or massage therapy instructor
 517-4   currently licensed or registered in another jurisdiction who seeks
 517-5   a certificate of registration in this state and who:
 517-6               (1)  has been licensed or registered in good standing
 517-7   as a massage therapist or massage therapy instructor, as
 517-8   applicable, for at least two years in another jurisdiction,
 517-9   including a foreign country, that has licensing or registration
517-10   requirements substantially equivalent to the requirements of this
517-11   chapter;
517-12               (2)  has passed a national or other examination
517-13   recognized by the board relating to the practice of massage
517-14   therapy; and
517-15               (3)  is sponsored by a person registered by the board
517-16   under this chapter with whom the provisional registrant will
517-17   practice during the time the person holds a provisional certificate
517-18   of registration.
517-19         (b)  The board may waive the requirement of Subsection (a)(3)
517-20   for an applicant if the board determines that compliance with that
517-21   subsection would be a hardship to the applicant.
517-22         (c)  A provisional certificate of registration is valid until
517-23   the date the board approves or denies the certificate holder's
517-24   application for registration.  The board shall issue a certificate
517-25   of registration under this chapter to the provisionally registered
517-26   person if the person:
517-27               (1)  is eligible for a certificate of registration
 518-1   under Section 455.1571; or
 518-2               (2)  passes the part of the examination under Section
 518-3   455.101 that relates to the applicant's knowledge and understanding
 518-4   of the laws and rules relating to the practice of massage therapy
 518-5   in this state and:
 518-6                     (A)  the board verifies that the person meets the
 518-7   academic and experience requirements for registration under this
 518-8   chapter; and
 518-9                     (B)  the person satisfies any other registration
518-10   requirements under this chapter.
518-11         (d)  The board must approve or deny a provisionally
518-12   registered person's application for a certificate of registration
518-13   not later than the 180th day after the date the provisional
518-14   certificate of registration is issued. The board may extend the
518-15   180-day period if the results of an examination have not been
518-16   received by the board before the end of that period.
518-17         (e)  The board may establish a fee for a provisional
518-18   certificate of registration in an amount reasonable and necessary
518-19   to cover the cost of issuing the certificate of registration.
518-20         (b)  Section 18.02, Chapter 1411, Acts of the 76th
518-21   Legislature, Regular Session, 1999, is repealed.
518-22         SECTION 14.222.  (a)  Section 455.160, Occupations Code, is
518-23   amended to conform to Section 18.04, Chapter 1411, Acts of the 76th
518-24   Legislature, Regular Session, 1999, to read as follows:
518-25         Sec. 455.160.  REGISTRATION RENEWAL.  (a)  A person
518-26   registered under this chapter must periodically renew the person's
518-27   certificate of registration.  The certificate expires unless the
 519-1   certificate holder submits an application for renewal accompanied
 519-2   by the renewal fee prescribed by the department or by the late fee
 519-3   prescribed by this section.
 519-4         (b)  The department shall adopt a system under which
 519-5   certificates of registration expire on various dates during the
 519-6   year.  Fees must be prorated so that a registered person pays only
 519-7   for that part of the renewal period for which the registration is
 519-8   issued until the expiration date of the registration.
 519-9         (c)  A person who is otherwise eligible to renew a
519-10   certificate of registration may renew an unexpired registration by
519-11   paying the required renewal fee to the department before the
519-12   expiration date of the registration. A person whose registration
519-13   has expired may not engage in activities that require registration
519-14   until the registration has been renewed.
519-15         (d)  A person whose  registration has been expired for 90
519-16   days or less may renew the registration  by paying to the
519-17   department a renewal fee that is equal to 1-1/2 times the normally
519-18   required renewal fee.
519-19         (e)  A person whose  registration has been expired for more
519-20   than 90 days but less than one year may renew the registration by
519-21   paying to the department a renewal fee that is equal to two times
519-22   the normally required renewal fee.
519-23         (f)  A person whose  registration has been expired for one
519-24   year or more may not renew the registration. The person may
519-25   register by complying with the requirements and procedures,
519-26   including the examination requirements, for originally registering.
519-27         (g)  Not later than the 30th day before the date a person's
 520-1   registration is scheduled to expire, the department shall send
 520-2   written notice of the impending expiration to the person at the
 520-3   person's last known address according to the records of the
 520-4   department.  [A person registered under this chapter who fails to
 520-5   renew a certificate of registration by the expiration date may
 520-6   renew the certificate not later than the first anniversary of the
 520-7   expiration date by meeting the requirements of this section and
 520-8   paying a late renewal fee.]
 520-9         [(d)  The registration of a person who fails to meet the
520-10   requirements of this section is void.  To be registered under this
520-11   chapter, the person must submit a new application, pay the
520-12   appropriate fees, and meet the current requirements for
520-13   registration.]
520-14         (b)  Subchapter D, Chapter 455, Occupations Code, is amended
520-15   to conform to Section 18.04, Chapter 1411, Acts of the 76th
520-16   Legislature, Regular Session, 1999, by adding Section 455.161 to
520-17   read as follows:
520-18         Sec. 455.161.  RENEWAL OF EXPIRED REGISTRATION OF
520-19   OUT-OF-STATE PRACTITIONER.  (a)  A person who was registered in
520-20   this state, moved to another state, and is currently registered or
520-21   licensed and has been in practice in the other state for the two
520-22   years preceding the date of application may register without
520-23   reexamination.
520-24         (b)  The person must pay to the department a fee that is
520-25   equal to two times the normally required renewal fee for
520-26   registration.
520-27         (c)  Section 455.251(a), Occupations Code, is amended to
 521-1   conform to Section 18.04, Chapter 1411, Acts of the 76th
 521-2   Legislature, Regular Session, 1999, to read as follows:
 521-3         (a)  The board [department] may refuse to issue a certificate
 521-4   of registration to a person and shall[,] suspend, [or] revoke, or
 521-5   refuse to renew the certificate of registration of a person[,] or
 521-6   shall reprimand [place] a person registered under this chapter [on
 521-7   probation] if the person:
 521-8               (1)  obtains a certificate of registration by fraud,
 521-9   misrepresentation, or concealment of material facts;
521-10               (2)  sells, barters, or offers to sell or barter a
521-11   certificate of registration;
521-12               (3)  violates a rule adopted by the board;
521-13               (4)  engages in unprofessional conduct as defined by
521-14   board rule that endangers or is likely to endanger the health,
521-15   welfare, or safety of the public;
521-16               (5)  violates an order or ordinance adopted by a
521-17   political subdivision under Chapter 243, Local Government Code; or
521-18               (6)  violates this chapter.
521-19         (d)  Section 455.252(a), Occupations Code, is amended to
521-20   conform to Section 18.04, Chapter 1411, Acts of the 76th
521-21   Legislature, Regular Session, 1999, to read as follows:
521-22         (a)  A person whose application for a certificate of
521-23   registration is denied, [or] whose certificate of registration is
521-24   suspended or revoked, or who has been reprimanded is entitled to a
521-25   hearing before the department if the person submits a written
521-26   request to the department.
521-27         (e)  Subchapter F, Chapter 455, Occupations Code, is amended
 522-1   to conform to Section 18.04, Chapter 1411, Acts of the 76th
 522-2   Legislature, Regular Session, 1999, by adding Section 455.253 to
 522-3   read as follows:
 522-4         Sec. 455.253.  PROBATION.  The board may place on probation a
 522-5   person, including a massage school, massage therapy instructor, or
 522-6   massage establishment, whose certificate of registration is
 522-7   suspended.  If a registration suspension is probated, the board may
 522-8   require the person to:
 522-9               (1)  report regularly to the department on matters that
522-10   are the basis of the probation;
522-11               (2)  limit practice to the areas prescribed by the
522-12   board; or
522-13               (3)  continue or review professional education until
522-14   the person attains a degree of skill satisfactory to the board in
522-15   those areas that are the basis of the probation.
522-16         (f)  Section 18.04, Chapter 1411, Acts of the 76th
522-17   Legislature, Regular Session, 1999, is repealed.
522-18                PART 10.  CHANGES RELATING TO SUBTITLE I,
522-19                        TITLE 3, OCCUPATIONS CODE
522-20         SECTION 14.251. (a)  Section 501.154(c), Occupations Code, is
522-21   amended to conform to Section 4, Chapter 20, Acts of the 76th
522-22   Legislature, Regular Session, 1999, to read as follows:
522-23         (c)  The board shall:
522-24               (1)  mail a copy of the list to each person licensed
522-25   under this chapter; and
522-26               (2)  [file a copy with the secretary of state; and]
522-27               [(3)]  furnish copies to the public on request.
 523-1         (b)  Section 4, Chapter 20, Acts of the 76th Legislature,
 523-2   Regular Session, 1999, is repealed.
 523-3         SECTION 14.2515. The heading for Section 501.462, Occupations
 523-4   Code, is amended to more accurately reflect the law from which it
 523-5   was derived to read as follows:
 523-6         Sec. 501.462.  DEPOSIT [COLLECTION] OF PENALTY.
 523-7         SECTION 14.252. (a)  Section 502.002, Occupations Code, is
 523-8   amended to conform to Section 1, Chapter 51, Acts of the 76th
 523-9   Legislature, Regular Session, 1999, by amending Subdivision (5) and
523-10   adding Subdivision (6) to read as follows:
523-11               (5)  "Licensed marriage and family therapist associate"
523-12   means an individual who offers to provide marriage and family
523-13   therapy for compensation under the supervision of a board-approved
523-14   supervisor.
523-15               (6)  "Marriage and family therapy" means providing
523-16   professional therapy services to individuals, families, or married
523-17   couples, alone or in groups, that involve applying family systems
523-18   theories and techniques.  The term includes the evaluation and
523-19   remediation of cognitive, affective, behavioral, or relational
523-20   dysfunction in the context of marriage or family systems.
523-21         (b)  Section 1, Chapter 51, Acts of the 76th Legislature,
523-22   Regular Session, 1999, is repealed.
523-23         SECTION 14.253. (a)  Subchapter E, Chapter 502, Occupations
523-24   Code, is amended to conform to Section 3, Chapter 1444, Acts of the
523-25   76th Legislature, Regular Session, 1999, by adding Section 502.2045
523-26   to read as follows:
523-27         Sec. 502.2045.  SUBPOENAS. (a)  In an investigation of a
 524-1   complaint filed with the board, the board may request that the
 524-2   commissioner or the commissioner's designee approve the issuance of
 524-3   a subpoena.  If the request is approved, the board may issue a
 524-4   subpoena to compel the attendance of a relevant witness or the
 524-5   production, for inspection or copying, of relevant evidence that is
 524-6   in this state.
 524-7         (b)  A subpoena may be served personally or by certified
 524-8   mail.
 524-9         (c)  If a person fails to comply with a subpoena, the board,
524-10   acting through the attorney general, may file suit to enforce the
524-11   subpoena in a district court in Travis County or in the county in
524-12   which a hearing conducted by the board may be held.
524-13         (d)  On finding that good cause exists for issuing the
524-14   subpoena, the court shall order the person to comply with the
524-15   subpoena.  The court may punish a person who fails to obey the
524-16   court order.
524-17         (e)  The board may delegate the authority granted under
524-18   Subsection (a) to the executive director of the board.
524-19         (f)  The board shall pay a reasonable fee for photocopies
524-20   subpoenaed under this section in an amount not to exceed the amount
524-21   the board may charge for copies of its records.
524-22         (g)  The reimbursement of the expenses of a witness whose
524-23   attendance is compelled under this section is governed by Section
524-24   2001.103, Government Code.
524-25         (h)  All information and materials subpoenaed or compiled by
524-26   the board in connection with a complaint and investigation are
524-27   confidential and not subject to disclosure under Chapter 552,
 525-1   Government Code, and not subject to disclosure, discovery,
 525-2   subpoena, or other means of legal compulsion for their release to
 525-3   anyone other than the board or its employees or agents involved in
 525-4   discipline of the holder of a license, except that this information
 525-5   may be disclosed to:
 525-6               (1)  persons involved with the board in a disciplinary
 525-7   action against the holder of a license;
 525-8               (2)  marriage and family therapist licensing or
 525-9   disciplinary boards in other jurisdictions;
525-10               (3)  peer assistance programs approved by the board
525-11   under Chapter 467, Health and Safety Code;
525-12               (4)  law enforcement agencies; and
525-13               (5)  persons engaged in bona fide research, if all
525-14   individual-identifying information has been deleted.
525-15         (i)  The filing of formal charges by the board against a
525-16   holder of a license, the nature of those charges, disciplinary
525-17   proceedings of the board, and final disciplinary actions, including
525-18   warnings and reprimands, by the board are not confidential and are
525-19   subject to disclosure in accordance with Chapter 552, Government
525-20   Code.
525-21         (b)  Section 3, Chapter 1444, Acts of the 76th Legislature,
525-22   Regular Session, 1999, is repealed.
525-23         SECTION 14.254. (a)  Section 502.251(b), Occupations Code, is
525-24   amended to conform to Section 2, Chapter 51, Acts of the 76th
525-25   Legislature, Regular Session, 1999, to read as follows:
525-26         (b)  A person may not use the title "licensed marriage and
525-27   family therapist" or "licensed marriage and family therapist
 526-1   associate," as appropriate, unless the person is licensed under
 526-2   this chapter.
 526-3         (b)  Section 2, Chapter 51, Acts of the 76th Legislature,
 526-4   Regular Session, 1999, is repealed.
 526-5         SECTION 14.255. (a)  Sections 502.252, 502.253, and 502.254,
 526-6   Occupations Code, are amended to conform to Sections 3, 4, and 5,
 526-7   Chapter 51, Acts of the 76th Legislature, Regular Session, 1999, to
 526-8   read as follows:
 526-9         Sec. 502.252.  LICENSE APPLICATION. (a)  An applicant for a
526-10   license must:
526-11               (1)  file a written application with the board on a
526-12   form prescribed by the board; and
526-13               (2)  pay the appropriate application fee.
526-14         (b)  To qualify for a license as a licensed marriage and
526-15   family therapist associate, a person must:
526-16               (1)  be at least 18 years of age;
526-17               (2)  have completed a graduate internship in marriage
526-18   and family therapy, or an equivalent internship, as approved by the
526-19   board;
526-20               (3)  pass an examination determined by the board;
526-21               (4)  hold a master's or doctoral [doctorate] degree in
526-22   marriage and family therapy or in a related mental health field
526-23   with coursework and training determined by the board to be
526-24   substantially equivalent to a graduate degree in marriage and
526-25   family therapy from a regionally accredited institution of higher
526-26   education or an institution of higher education approved by the
526-27   board;
 527-1               (5) [(3)  have completed two years of experience in
 527-2   marriage and family therapy services that is:]
 527-3                     [(A)  attained after the person receives a degree
 527-4   that meets the requirements of Subdivision (2); and]
 527-5                     [(B)  supervised in a manner acceptable to the
 527-6   board;]
 527-7               [(4)]  be of good moral character;
 527-8               (6) [(5)]  have not been convicted of a felony or a
 527-9   crime involving moral turpitude;
527-10               (7) [(6)]  not use drugs or alcohol to an extent that
527-11   affects the applicant's professional competency;
527-12               (8) [(7)]  not have had a license or certification
527-13   revoked by a licensing agency or by a certifying professional
527-14   organization; and
527-15               (9) [(8)]  not have engaged in fraud or deceit in
527-16   applying for a license under this chapter.
527-17         (c)  An applicant is eligible to apply for a license as a
527-18   licensed marriage and family therapist if the person:
527-19               (1)  meets the requirements of Subsection (b);
527-20               (2)  after receipt of a degree described by Subsection
527-21   (b)(4), has completed two years of work experience in marriage and
527-22   family therapist services that includes at least 3,000 hours of
527-23   clinical practice of which:
527-24                     (A)  at least 1,500 hours consist of direct
527-25   clinical services; and
527-26                     (B)  at least 750 hours consist of direct
527-27   clinical services to couples or families; and
 528-1               (3)  has completed, in a manner acceptable to the
 528-2   board, [The work experience required by Subsection (b)(3) must
 528-3   include at least 1,000 hours of direct clinical services to
 528-4   individuals, couples, or families, including:]
 528-5               [(1)  at least 500 hours of direct clinical services to
 528-6   couples or families; and]
 528-7               [(2)]  at least 200 hours of supervised provision of
 528-8   direct clinical services by the applicant, 100 hours of which must
 528-9   be supervised on an individual basis.
528-10         Sec. 502.253.  APPLICATION REVIEW; ELIGIBILITY [DETERMINATION
528-11   WHETHER] EXAMINATION [REQUIRED]. (a)  [Each applicant for a license
528-12   under this chapter must pass an examination prescribed by the board
528-13   unless the applicant is exempted from the examination requirement:]
528-14               [(1)  under this chapter; or]
528-15               [(2)  by a determination of the board based on the
528-16   applicant's education and professional experience.]
528-17         [(b)]  The board shall investigate each application and any
528-18   other information submitted by the applicant.
528-19         (b) [(c)]  Not later than the 90th day after the date the
528-20   board receives the completed application from a person seeking a
528-21   license as a licensed marriage and family therapist associate
528-22   [without examination], the board shall notify the applicant whether
528-23   the application has been accepted or [that:]
528-24               [(1)  the applicant may be licensed without
528-25   examination;]
528-26               [(2)  the applicant must take an examination to be
528-27   licensed; or]
 529-1               [(3)  the application is] rejected.
 529-2         (c)  An applicant for a license as a licensed marriage and
 529-3   family therapist associate is eligible to take the examination if
 529-4   the applicant:
 529-5               (1)  is enrolled in a graduate internship described by
 529-6   Section 502.252(b)(2) and provides proof to the board that the
 529-7   applicant is a student in good standing in an educational program
 529-8   described by Section 502.252(b)(4); or
 529-9               (2)  has completed the internship described by
529-10   Subdivision (1).
529-11         (d)  [If an applicant under Subsection (c) is required to
529-12   take an examination, the notice required under Subsection (c) must
529-13   state:]
529-14               [(1)  the reason for requiring the examination;]
529-15               [(2)  the time and manner of conducting the
529-16   examination; and]
529-17               [(3)  the acts required of the applicant in connection
529-18   with the examination.]
529-19         [(e)  Not later than the 30th day before the date of a
529-20   scheduled examination, the board shall notify an applicant seeking
529-21   a license by examination whether the application has been accepted
529-22   or rejected.]  A notice that an application is rejected must state
529-23   the reason for the rejection.
529-24         Sec. 502.254.  EXAMINATION. (a)  Each applicant for a license
529-25   under this chapter must pass an examination described by Section
529-26   502.252(b)(3).
529-27         (b)  An applicant for a license as a licensed marriage and
 530-1   family therapist associate under Section 502.252(b) [To take the
 530-2   examination, an applicant] must:
 530-3               (1)  file an application on a form prescribed by the
 530-4   board not later than the 90th day before the date of the
 530-5   examination; and
 530-6               (2)  pay the examination fee set by the Texas Board of
 530-7   Health.
 530-8         (c) [(b)]  The examination consists of:
 530-9               (1)  a written examination;
530-10               (2)  an oral examination;
530-11               (3)  a field examination that:
530-12                     (A)  uses questionnaires answered by persons who
530-13   are competent in the judgment of the board to assess the
530-14   applicant's professional ability, including the applicant's
530-15   instructors, employers, or supervisors; and
530-16                     (B)  may include written case studies and taped
530-17   interviews; or
530-18               (4)  any combination of those examinations.
530-19         (d) [(c)]  The board shall have any written portion of an
530-20   examination validated by an independent testing professional.
530-21         (b)  Sections 3, 4, and 5, Chapter 51, Acts of the 76th
530-22   Legislature, Regular Session, 1999, are repealed.
530-23         SECTION 14.256. (a)  Subchapter F, Chapter 502, Occupations
530-24   Code, is amended to conform to Section 7, Chapter 51, Acts of the
530-25   76th Legislature, Regular Session, 1999, by adding Section 502.2545
530-26   to read as follows:
530-27         Sec. 502.2545.  WAIVER OF EXAMINATION FOR CERTAIN APPLICANTS.
 531-1   (a)  The board may waive the requirement that an applicant for a
 531-2   license as a licensed marriage and family therapist pass the
 531-3   examination required by Section 502.254 if the applicant:
 531-4               (1)  is a provisional license holder under Section
 531-5   502.259 and the board determines that the applicant possesses
 531-6   sufficient education and professional experience to receive a
 531-7   license without further examination; or
 531-8               (2)  holds a license issued by another licensing agency
 531-9   in a profession related to the practice of marriage and family
531-10   therapy and the board determines that the applicant possesses
531-11   sufficient education and professional experience to receive a
531-12   license without satisfying the examination requirements of this
531-13   chapter.
531-14         (b)  The board may adopt rules necessary to administer this
531-15   section, including rules under Subsection (a)(2) prescribing the
531-16   professions that are related to the practice of marriage and family
531-17   therapy.
531-18         (b)  Section 7, Chapter 51, Acts of the 76th Legislature,
531-19   Regular Session, 1999, is repealed.
531-20         SECTION 14.257. (a)  Section 502.257, Occupations Code, is
531-21   amended to conform to Section 6, Chapter 51, Acts of the 76th
531-22   Legislature, Regular Session, 1999, to read as follows:
531-23         Sec. 502.257.  ISSUANCE OF LICENSE. The board shall issue a
531-24   license as a licensed marriage and family therapist associate or
531-25   licensed marriage and family therapist, as appropriate, to an
531-26   applicant who:
531-27               (1)  complies with the requirements of this chapter;
 532-1               (2)  passes the licensing examination, unless the board
 532-2   exempts the person from the examination requirement; and
 532-3               (3)  pays the required fees.
 532-4         (b)  Section 6, Chapter 51, Acts of the 76th Legislature,
 532-5   Regular Session, 1999, is repealed.
 532-6         SECTION 14.258. (a)  Subchapter B, Chapter 503, Occupations
 532-7   Code, is amended to conform to Section 1, Chapter 123, Acts of the
 532-8   76th Legislature, Regular Session, 1999, by adding Section 503.060
 532-9   to read as follows:
532-10         Sec. 503.060.  MUSICAL THERAPY SERVICES. This chapter does
532-11   not apply to an activity, service, title, or description of a
532-12   person who:
532-13               (1)  is certified by the Certification Board for Music
532-14   Therapists or listed with the National Music Therapy Registry;
532-15               (2)  performs a music therapy service consistent with:
532-16                     (A)  state law;
532-17                     (B)  the person's training; and
532-18                     (C)  the code of ethics of the person's
532-19   profession; and
532-20               (3)  does not engage in the use of psychotherapy or use
532-21   the title of licensed counselor or represent that the person is a
532-22   licensed counselor.
532-23         (b)  Section 1, Chapter 123, Acts of the 76th Legislature,
532-24   Regular Session, 1999, is repealed.
532-25         SECTION 14.259. The heading for Subchapter D, Chapter 503,
532-26   Occupations Code, is amended to conform to Chapter 717, Acts of the
532-27   76th Legislature, Regular Session, 1999, to read as follows:
 533-1         SUBCHAPTER D.  EXECUTIVE DIRECTOR [SECRETARY] AND OTHER
 533-2                             BOARD PERSONNEL
 533-3         SECTION 14.260. (a)  Section 503.107(c), Occupations Code, is
 533-4   amended to conform to Section 1, Chapter 717, Acts of the 76th
 533-5   Legislature, Regular Session, 1999, to read as follows:
 533-6         (c)  If the executive director [secretary] has knowledge that
 533-7   a potential ground for removal of a board member exists, the
 533-8   executive director [secretary] shall notify the governor and the
 533-9   attorney general that a potential ground for removal exists.
533-10         (b)  Section 1, Chapter 717, Acts of the 76th Legislature,
533-11   Regular Session, 1999, is repealed.
533-12         SECTION 14.261. (a)  Section 503.151, Occupations Code, is
533-13   amended to conform to Section 2, Chapter 717, Acts of the 76th
533-14   Legislature, Regular Session, 1999, to read as follows:
533-15         Sec. 503.151.  EXECUTIVE DIRECTOR [SECRETARY].  The
533-16   commissioner of public health, with the advice and consent of the
533-17   board, shall appoint an executive director [secretary] for the
533-18   board.  The executive director [secretary] must be an employee of
533-19   the department.
533-20         (b)  Section 503.152, Occupations Code, is amended to conform
533-21   to Section 2, Chapter 717, Acts of the 76th Legislature, Regular
533-22   Session, 1999, to read as follows:
533-23         Sec. 503.152.  POWERS AND DUTIES OF EXECUTIVE DIRECTOR
533-24   [SECRETARY]. (a)  The executive director [secretary] serves as the
533-25   administrator of professional counselor licensing activities for
533-26   the board.  The executive director [secretary] shall:
533-27               (1)  keep full and accurate minutes of the board's
 534-1   transactions and proceedings;
 534-2               (2)  serve as custodian of the board's files and
 534-3   records;
 534-4               (3)  prepare and recommend to the board plans and
 534-5   procedures necessary to implement the purposes and objectives of
 534-6   this chapter, including rules and proposals on administrative
 534-7   procedures;
 534-8               (4)  exercise general supervision over persons employed
 534-9   by the department in the administration of this chapter;
534-10               (5)  investigate complaints and present formal
534-11   complaints;
534-12               (6)  attend all board meetings;
534-13               (7)  handle or arrange for the handling of the board's
534-14   correspondence;
534-15               (8)  conduct or arrange for necessary inspections and
534-16   investigations;
534-17               (9)  obtain, assemble, or prepare reports and
534-18   information as directed or authorized by the board; and
534-19               (10)  perform other duties prescribed by this chapter
534-20   and by the department.
534-21         (b)  The executive director [secretary] is not entitled to
534-22   vote at board meetings.
534-23         (c)  Section 2, Chapter 717, Acts of the 76th Legislature,
534-24   Regular Session, 1999, is repealed.
534-25         SECTION 14.262. (a)  Section 503.255(c), Occupations Code, is
534-26   amended to conform to Section 5, Chapter 717, Acts of the 76th
534-27   Legislature, Regular Session, 1999, to read as follows:
 535-1         (c)  The executive director [secretary] shall notify the
 535-2   board of a complaint that is not resolved within the time
 535-3   prescribed by the board for resolving the complaint.
 535-4         (b)  Section 5, Chapter 717, Acts of the 76th Legislature,
 535-5   Regular Session, 1999, is repealed.
 535-6         SECTION 14.263. (a)  Section 503.302(a), Occupations Code, is
 535-7   amended to conform to Section 3, Chapter 717, Acts of the 76th
 535-8   Legislature, Regular Session, 1999, to read as follows:
 535-9         (a)  A person qualifies for a license under this chapter if
535-10   the person:
535-11               (1)  is at least 18 years old;
535-12               (2)  has a master's or doctoral [doctorate] degree in
535-13   counseling or a related field;
535-14               (3)  has successfully completed a graduate degree at a
535-15   regionally accredited institution of higher education and a planned
535-16   graduate program of 48 graduate semester hours [or the substantial
535-17   equivalent], including 300 clock hours of supervised practicum
535-18   that:
535-19                     (A)  is primarily counseling in nature; and
535-20                     (B)  meets the specific academic course content
535-21   and training standards established by the board;
535-22               (4)  has completed 36 months or 3,000 hours of
535-23   supervised experience working in a counseling setting that meets
535-24   the requirements established by the board after the completion of
535-25   the graduate program described by Subdivision (3);
535-26               (5)  except as provided by Subsection (b), passes the
535-27   license examination required by this chapter;
 536-1               (6)  submits an application as required by the board,
 536-2   accompanied by the required application fee; and
 536-3               (7)  meets any other requirement prescribed by the
 536-4   board.
 536-5         (b)  Section 3, Chapter 717, Acts of the 76th Legislature,
 536-6   Regular Session, 1999, is repealed.
 536-7         SECTION 14.264. (a)  Section 503.352, Occupations Code, is
 536-8   amended to conform to Section 4, Chapter 717, Acts of the 76th
 536-9   Legislature, Regular Session, 1999, to read as follows:
536-10         Sec. 503.352.  LICENSE EXPIRATION DATE.  [(a)] The board
536-11   shall adopt a system under which licenses expire on various dates
536-12   during the year.
536-13         [(b)  For the year in which an initial license is issued, the
536-14   license fee shall be prorated on a monthly basis so that each
536-15   license holder pays only that portion of the fee that is applicable
536-16   to the number of months during which the license is valid.]  On
536-17   renewal of the license on the [new] expiration date, the total
536-18   license renewal fee is payable.
536-19         (b)  Section 4, Chapter 717, Acts of the 76th Legislature,
536-20   Regular Session, 1999, is repealed.
536-21         SECTION 14.265. (a)  Subchapter F, Chapter 503, Occupations
536-22   Code, is amended to conform to Section 5, Chapter 1444, Acts of the
536-23   76th Legislature, Regular Session, 1999, by adding Section 503.2545
536-24   to read as follows:
536-25         Sec. 503.2545.  SUBPOENAS. (a)  In an investigation of a
536-26   complaint filed with the board, the board may request that the
536-27   commissioner of public health or the commissioner's designee
 537-1   approve the issuance of a subpoena.  If the request is approved,
 537-2   the board may issue a subpoena to compel the attendance of a
 537-3   relevant witness or the production, for inspection or copying, of
 537-4   relevant evidence that is in this state.
 537-5         (b)  A subpoena may be served personally or by certified
 537-6   mail.
 537-7         (c)  If a person fails to comply with a subpoena, the board,
 537-8   acting through the attorney general, may file suit to enforce the
 537-9   subpoena in a district court in Travis County or in the county in
537-10   which a hearing conducted by the board may be held.
537-11         (d)  On finding that good cause exists for issuing the
537-12   subpoena, the court shall order the person to comply with the
537-13   subpoena.  The court may punish a person who fails to obey the
537-14   court order.
537-15         (e)  The board may delegate the authority granted under
537-16   Subsection (a)  to the executive director.
537-17         (f)  The board shall pay a reasonable fee for photocopies
537-18   subpoenaed under this section in an amount not to exceed the amount
537-19   the board may charge for copies of its records.
537-20         (g)  The reimbursement of the expenses of a witness whose
537-21   attendance is compelled under this section is governed by Section
537-22   2001.103, Government Code.
537-23         (h)  All information and materials subpoenaed or compiled by
537-24   the board in connection with a complaint and investigation are
537-25   confidential and not subject to disclosure under Chapter 552,
537-26   Government Code, and not subject to disclosure, discovery,
537-27   subpoena, or other means of legal compulsion for their release to
 538-1   anyone other than the board or its employees or agents involved in
 538-2   discipline of the holder of a license, except that this information
 538-3   may be disclosed to:
 538-4               (1)  persons involved with the board in a disciplinary
 538-5   action against the holder of a license;
 538-6               (2)  professional counselor licensing or disciplinary
 538-7   boards in other jurisdictions;
 538-8               (3)  peer assistance programs approved by the board
 538-9   under Chapter 467, Health and Safety Code;
538-10               (4)  law enforcement agencies; and
538-11               (5)  persons engaged in bona fide research, if all
538-12   individual-identifying information has been deleted.
538-13         (i)  The filing of formal charges by the board against a
538-14   holder of a license, the nature of those charges, disciplinary
538-15   proceedings of the board, and final disciplinary actions, including
538-16   warnings and reprimands, by the board are not confidential and are
538-17   subject to disclosure in accordance with Chapter 552, Government
538-18   Code.
538-19         (b)  Section 5, Chapter 1444, Acts of the 76th Legislature,
538-20   Regular Session, 1999, is repealed.
538-21         SECTION 14.266. (a)  Section 504.205, Occupations Code, is
538-22   amended to conform to Section 1, Chapter 252, Acts of the 76th
538-23   Legislature, Regular Session, 1999, by amending Subsection (b) and
538-24   adding Subsections (c) and (d) to read as follows:
538-25         (b)  As a prerequisite for renewal of a license issued under
538-26   this chapter, a [the] license holder, other than a license holder
538-27   subject to Subsection (c), must participate in the continuing
 539-1   education program and complete at least 60 hours of continuing
 539-2   education in each two-year licensing period.
 539-3         (c)  A license holder must complete at least 24 hours of
 539-4   continuing education in each two-year licensing period as a
 539-5   requirement for renewal of the license if the license holder is
 539-6   also licensed as:
 539-7               (1)  a licensed master social worker under Chapter 505;
 539-8               (2)  a licensed marriage and family therapist under
 539-9   Chapter 502;
539-10               (3)  a licensed professional counselor under Chapter
539-11   503;
539-12               (4)  a physician practicing medicine under Subtitle B;
539-13   or
539-14               (5)  a psychologist under Chapter 501.
539-15         (d)  Except for the number of hours required, the commission
539-16   may not adopt a rule under Subsection (a) that distinguishes
539-17   between the continuing education requirements for a license holder
539-18   subject to Subsection (b) and a license holder subject to
539-19   Subsection (c).
539-20         (b)  Section 1, Chapter 252, Acts of the 76th Legislature,
539-21   Regular Session, 1999, is repealed.
539-22         SECTION 14.267. (a)  Section 505.205(b), Occupations Code, is
539-23   amended to conform to Section 1, Chapter 20, Acts of the 76th
539-24   Legislature, Regular Session, 1999, to read as follows:
539-25         (b)  The board shall[:]
539-26               [(1)]  mail a copy of the roster to each license
539-27   holder[; and]
 540-1               [(2)  file a copy of the roster with the secretary of
 540-2   state].
 540-3         (b)  Section 1, Chapter 20, Acts of the 76th Legislature,
 540-4   Regular Session, 1999, is repealed.
 540-5         SECTION 14.268. (a)  Subchapter E, Chapter 505, Occupations
 540-6   Code, is amended to conform to Section 1, Chapter 1444, Acts of the
 540-7   76th Legislature, Regular Session, 1999, by adding Section 505.2545
 540-8   to read as follows:
 540-9         Sec. 505.2545.  SUBPOENAS. (a)  In an investigation of a
540-10   complaint filed with the department and referred to the board, the
540-11   board may request that the commissioner of public health or the
540-12   commissioner's designee approve the issuance of a subpoena.  If the
540-13   request is approved, the board may issue a subpoena to compel the
540-14   attendance of a relevant witness or the production, for inspection
540-15   or copying, of relevant evidence that is in this state.
540-16         (b)  A subpoena may be served personally or by certified
540-17   mail.
540-18         (c)  If a person fails to comply with a subpoena, the board,
540-19   acting through the attorney general, may file suit to enforce the
540-20   subpoena in a district court in Travis County or in the county in
540-21   which a hearing conducted by the board may be held.
540-22         (d)  On finding that good cause exists for issuing the
540-23   subpoena, the court shall order the person to comply with the
540-24   subpoena.  The court may punish a person who fails to obey the
540-25   court order.
540-26         (e)  The board may delegate the authority granted under
540-27   Subsection (a)  to the executive director or the
 541-1   secretary-treasurer of the board.
 541-2         (f)  The board shall pay a reasonable fee for photocopies
 541-3   subpoenaed under this section in an amount not to exceed the amount
 541-4   the board may charge for copies of its records.
 541-5         (g)  The reimbursement of the expenses of a witness whose
 541-6   attendance is compelled under this section is governed by Section
 541-7   2001.103, Government Code.
 541-8         (h)  All information and materials subpoenaed or compiled by
 541-9   the board in connection with a complaint and investigation are
541-10   confidential and not subject to disclosure under Chapter 552,
541-11   Government Code, and not subject to disclosure, discovery,
541-12   subpoena, or other means of legal compulsion for their release to
541-13   anyone other than the board or its employees or agents involved in
541-14   discipline of the holder of a license or order of recognition,
541-15   except that this information may be disclosed to:
541-16               (1)  persons involved with the board in a disciplinary
541-17   action against the holder of a license or order of recognition;
541-18               (2)  professional social work licensing or disciplinary
541-19   boards in other jurisdictions;
541-20               (3)  peer assistance programs approved by the board
541-21   under Chapter 467, Health and Safety Code;
541-22               (4)  law enforcement agencies; and
541-23               (5)  persons engaged in bona fide research, if all
541-24   individual-identifying information has been deleted.
541-25         (i)  The filing of formal charges against a holder of a
541-26   license or order of recognition, the nature of those charges,
541-27   disciplinary proceedings of the board, and final disciplinary
 542-1   actions, including warnings and reprimands, by the board are not
 542-2   confidential and are subject to disclosure in accordance with
 542-3   Chapter 552, Government Code.
 542-4         (b)  Section 1, Chapter 1444, Acts of the 76th Legislature,
 542-5   Regular Session, 1999, is repealed.
 542-6         SECTION 14.269. (a)  Section 505.353(b), Occupations Code, is
 542-7   amended to conform to Section 1, Chapter 1587, Acts of the 76th
 542-8   Legislature, Regular Session, 1999, to read as follows:
 542-9         (b)  An applicant may take the licensing examination
542-10   conducted by the board under Section 505.354 for:
542-11               (1)  a master social worker license if the applicant
542-12   possesses a doctoral or master's degree in social work from a
542-13   graduate program accredited by the Council on Social Work
542-14   Education;
542-15               (2)  a social worker license if the applicant possesses
542-16   a baccalaureate degree in social work from an educational program
542-17   accredited by the Council on Social Work Education; or
542-18               (3)  a social work associate license if the applicant:
542-19                     (A)  possesses a baccalaureate degree in the
542-20   behavioral or social sciences or a related field other than social
542-21   work from an accredited educational institution [or an associate of
542-22   arts degree in the behavioral sciences as determined by the board
542-23   from an accredited educational institution]; and
542-24                     (B)  satisfactorily completes a reasonable
542-25   specified number of years of actual and active social work
542-26   experience approved by the board.
542-27         (b)  Section 1, Chapter 1587, Acts of the 76th Legislature,
 543-1   Regular Session, 1999, is repealed.
 543-2         SECTION 14.270. (a)  Section 505.402(d), Occupations Code, is
 543-3   amended to conform to Section 3, Chapter 1587, Acts of the 76th
 543-4   Legislature, Regular Session, 1999, to read as follows:
 543-5         (d)  Except as provided by Section 505.403, a person whose
 543-6   license or order of recognition of specialty has been expired for
 543-7   one year or more may not renew the license or order.  The person
 543-8   may obtain a new license or order by submitting to reexamination[,
 543-9   if an examination was originally required for the license or order,
543-10   and complying with the requirements and procedures for obtaining
543-11   the original license or order].
543-12         (b)  Section 3, Chapter 1587, Acts of the 76th Legislature,
543-13   Regular Session, 1999, is repealed.
543-14         SECTION 14.271. (a)  Chapter 505, Occupations Code, is
543-15   amended to conform to Section 6, Chapter 1587, Acts of the 76th
543-16   Legislature, Regular Session, 1999, by adding Subchapter K to read
543-17   as follows:
543-18                  SUBCHAPTER K.  ADMINISTRATIVE PENALTY
543-19         Sec. 505.551.  IMPOSITION OF ADMINISTRATIVE PENALTY.  The
543-20   board may impose an administrative penalty on a person licensed
543-21   under this chapter who violates this chapter or a rule or order
543-22   adopted under this chapter.
543-23         Sec. 505.552.  AMOUNT OF ADMINISTRATIVE PENALTY. (a)  The
543-24   amount of the administrative penalty may not be less than $50 or
543-25   more than $500 for each violation.  Each day a violation continues
543-26   or occurs is a separate violation for the purpose of imposing a
543-27   penalty.
 544-1         (b)  The amount shall be based on:
 544-2               (1)  the seriousness of the violation, including the
 544-3   nature, circumstances, extent, and gravity of the violation;
 544-4               (2)  the economic harm caused by the violation;
 544-5               (3)  the history of previous violations;
 544-6               (4)  the amount necessary to deter a future violation;
 544-7               (5)  efforts to correct the violation; and
 544-8               (6)  any other matter that justice may require.
 544-9         Sec. 505.553.  REPORT AND NOTICE OF VIOLATION AND PENALTY.
544-10   (a)  If the executive director determines that a violation
544-11   occurred, the director may issue to the board a report stating:
544-12               (1)  the facts on which the determination is based; and
544-13               (2)  the director's recommendation on the imposition of
544-14   an administrative penalty, including a recommendation on the amount
544-15   of the penalty.
544-16         (b)  Within 14 days after the date the report is issued, the
544-17   executive director shall give written notice of the report to the
544-18   person.  The notice must:
544-19               (1)  include a brief summary of the alleged violation;
544-20               (2)  state the amount of the recommended administrative
544-21   penalty; and
544-22               (3)  inform the person of the person's right to a
544-23   hearing on the occurrence of the violation, the amount of the
544-24   penalty, or both.
544-25         Sec. 505.554.  PENALTY TO BE PAID OR HEARING REQUESTED. (a)
544-26   Within 10 days after the date the person receives the notice, the
544-27   person in writing may:
 545-1               (1)  accept the determination and recommended
 545-2   administrative penalty of the executive director; or
 545-3               (2)  make a request for a hearing on the occurrence of
 545-4   the violation, the amount of the penalty, or both.
 545-5         (b)  If the person accepts the determination and recommended
 545-6   penalty of the executive director, the board by order shall approve
 545-7   the determination and impose the recommended penalty.
 545-8         Sec. 505.555.  HEARING. (a)  If the person requests a hearing
 545-9   or fails to respond in a timely manner to the notice, the executive
545-10   director shall set a hearing and give written notice of the hearing
545-11   to the person.
545-12         (b)  An administrative law judge of the State Office of
545-13   Administrative Hearings shall hold the hearing.
545-14         (c)  The administrative law judge shall make findings of fact
545-15   and conclusions of law and promptly issue to the board a proposal
545-16   for a decision about the occurrence of the violation and the amount
545-17   of a proposed administrative penalty.
545-18         Sec. 505.556.  DECISION BY BOARD. (a)  Based on the findings
545-19   of fact, conclusions of law, and proposal for decision, the board
545-20   by order may determine that:
545-21               (1)  a violation occurred and impose an administrative
545-22   penalty; or
545-23               (2)  a violation did not occur.
545-24         (b)  The notice of the board's order given to the person must
545-25   include a statement of the right of the person to judicial review
545-26   of the order.
545-27         Sec. 505.557.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.
 546-1   (a)  Within 30 days after the date the board's order becomes final,
 546-2   the person shall:
 546-3               (1)  pay the administrative penalty; or
 546-4               (2)  file a petition for judicial review contesting the
 546-5   occurrence of the violation, the amount of the penalty, or both.
 546-6         (b)  Within the 30-day period prescribed by Subsection (a), a
 546-7   person who files a petition for judicial review may:
 546-8               (1)  stay enforcement of the penalty by:
 546-9                     (A)  paying the penalty to the court for
546-10   placement in an escrow account; or
546-11                     (B)  giving the court a supersedeas bond approved
546-12   by the court that:
546-13                           (i)  is for the amount of the penalty; and
546-14                           (ii)  is effective until all judicial
546-15   review of the board's order is final; or
546-16               (2)  request the court to stay enforcement of the
546-17   penalty by:
546-18                     (A)  filing with the court a sworn affidavit of
546-19   the person stating that the person is financially unable to pay the
546-20   penalty and is financially unable to give the supersedeas bond; and
546-21                     (B)  giving a copy of the affidavit to the
546-22   executive director by certified mail.
546-23         (c)  If the executive director receives a copy of an
546-24   affidavit under Subsection (b)(2), the director may file with the
546-25   court, within five days after the date the copy is received, a
546-26   contest to the affidavit.
546-27         (d)  The court shall hold a hearing on the facts alleged in
 547-1   the affidavit as soon as practicable and shall stay the enforcement
 547-2   of the penalty on finding that the alleged facts are true.  The
 547-3   person who files an affidavit has the burden of proving that the
 547-4   person is financially unable to pay the penalty and to give a
 547-5   supersedeas bond.
 547-6         Sec. 505.558.  COLLECTION OF PENALTY. (a)  If the person does
 547-7   not pay the administrative penalty and the enforcement of the
 547-8   penalty is not stayed, the penalty may be collected.
 547-9         (b)  The attorney general may sue to collect the penalty.
547-10         Sec. 505.559.  DETERMINATION BY COURT. (a)  If the court
547-11   sustains the determination that a violation occurred, the court may
547-12   uphold or reduce the amount of the administrative penalty and order
547-13   the person to pay the full or reduced amount of the penalty.
547-14         (b)  If the court does not sustain the finding that a
547-15   violation occurred, the court shall order that a penalty is not
547-16   owed.
547-17         Sec. 505.560.  REMITTANCE OF PENALTY AND INTEREST. (a)  If
547-18   the person paid the administrative penalty and if the amount of the
547-19   penalty is reduced or the penalty is not upheld by the court, the
547-20   court shall order, when the court's judgment becomes final, that
547-21   the appropriate amount plus accrued interest be remitted to the
547-22   person.
547-23         (b)  The interest accrues at the rate charged on loans to
547-24   depository institutions by the New York Federal Reserve Bank.
547-25         (c)  The interest shall be paid for the period beginning on
547-26   the date the penalty is paid and ending on the date the penalty is
547-27   remitted.
 548-1         (d)  If the person gave a supersedeas bond and the penalty is
 548-2   not upheld by the court, the court shall order, when the court's
 548-3   judgment becomes final, the release of the bond.
 548-4         (e)  If the person gave a supersedeas bond and the amount of
 548-5   the penalty is reduced, the court shall order the release of the
 548-6   bond after the person pays the reduced amount.
 548-7         Sec. 505.561.  ADMINISTRATIVE PROCEDURE.  A proceeding under
 548-8   this section is a contested case under Chapter 2001, Government
 548-9   Code.
548-10         (b)  Section 6, Chapter 1587, Acts of the 76th Legislature,
548-11   Regular Session, 1999, is repealed.
548-12         SECTION 14.272. (a)  Chapter 505, Occupations Code, is
548-13   amended to conform to Section 2, Chapter 1587, Acts of the 76th
548-14   Legislature, Regular Session, 1999, by adding Subchapter L to read
548-15   as follows:
548-16              SUBCHAPTER L.  REPORTS OF CERTAIN VIOLATIONS
548-17         Sec. 505.601.  REPORT OF VIOLATION.  In a written, signed
548-18   report to the appropriate licensing board, agency, or facility, a
548-19   person licensed under this chapter may report an incident that the
548-20   person has reasonable cause to believe has exposed a client to
548-21   substantial risk of harm, including:
548-22               (1)  a failure to provide care that conforms to the
548-23   minimum standards of acceptable and prevailing professional
548-24   practice;
548-25               (2)  illegal billing practices; or
548-26               (3)  falsification of records.
548-27         Sec. 505.602.  REPORTING IMMUNITY.  A person who, without
 549-1   malice, makes a report authorized, or reasonably believed to be
 549-2   authorized, under this subchapter:
 549-3               (1)  is immune from civil liability; and
 549-4               (2)  may not be subjected by the person's employer to
 549-5   other retaliatory action as a result of making the report.
 549-6         Sec. 505.603.  CAUSE OF ACTION FOR RETALIATION. (a)  A person
 549-7   named as a defendant in a civil action or subjected by the person's
 549-8   employer to other retaliatory action as a result of filing a report
 549-9   authorized, or reasonably believed to be authorized, under this
549-10   subchapter may file a counterclaim in the pending action or prove a
549-11   cause of action in a subsequent suit to recover defense costs,
549-12   including reasonable attorney's fees and actual and punitive
549-13   damages, if the suit or retaliatory action is determined to be
549-14   frivolous, unreasonable, or taken in bad faith.
549-15         (b)  A person may not suspend or terminate the employment of,
549-16   or otherwise discipline or discriminate against, a person who makes
549-17   a report, without malice, under this subchapter.
549-18         (c)  A person who makes a report under this subchapter has a
549-19   cause of action against a person who violates Subsection (b) and
549-20   may recover:
549-21               (1)  the greater of:
549-22                     (A)  actual damages, including damages for mental
549-23   anguish even if no other injury is shown; or
549-24                     (B)  $1,000;
549-25               (2)  exemplary damages;
549-26               (3)  court costs; and
549-27               (4)  reasonable attorney's fees.
 550-1         (d)  In addition to the amount recovered under Subsection
 550-2   (c), a person whose employment is suspended or terminated in
 550-3   violation of this section is entitled to:
 550-4               (1)  reinstatement in the employee's former position or
 550-5   severance pay in an amount equal to three months of the employee's
 550-6   most recent salary; and
 550-7               (2)  compensation for wages lost during the period of
 550-8   suspension or termination.
 550-9         (e)  A person who brings an action under this section has the
550-10   burden of proof.  It is a rebuttable presumption that the person's
550-11   employment was suspended or terminated for making a report under
550-12   this subchapter if:
550-13               (1)  the person was suspended or terminated within 60
550-14   days after the date the report was made; and
550-15               (2)  the person to whom the report that is the subject
550-16   of the cause of action was made or the court determines that the
550-17   report was:
550-18                     (A)  authorized under this subchapter; and
550-19                     (B)  made without malice.
550-20         (f)  An action under this section may be brought in a
550-21   district court of the county in which:
550-22               (1)  the plaintiff resides;
550-23               (2)  the plaintiff was employed by the defendant; or
550-24               (3)  the defendant conducts business.
550-25         (b)  Section 2, Chapter 1587, Acts of the 76th Legislature,
550-26   Regular Session, 1999, is repealed.
550-27                PART 11.  CHANGES RELATING TO SUBTITLE J,
 551-1                        TITLE 3, OCCUPATIONS CODE
 551-2         SECTION 14.301. (a)  Section 554.002, Occupations Code, is
 551-3   amended to conform to Section 2, Chapter 1518, Acts of the 76th
 551-4   Legislature, Regular Session, 1999, and Section 2, Chapter 1243,
 551-5   Acts of the 76th Legislature, Regular Session, 1999, to read as
 551-6   follows:
 551-7         Sec. 554.002.  REGULATION OF PRACTICE OF PHARMACY. The board
 551-8   shall regulate the practice of pharmacy in this state by:
 551-9               (1)  issuing a license after examination or by
551-10   reciprocity to an applicant qualified to practice pharmacy and
551-11   issuing a license to a pharmacy under this subtitle;
551-12               (2)  renewing a license to practice pharmacy and a
551-13   license to operate a pharmacy;
551-14               (3)  determining and issuing standards for recognizing
551-15   and approving degree requirements of colleges of pharmacy whose
551-16   graduates are eligible for a license in this state;
551-17               (4)  specifying and enforcing requirements for
551-18   practical training, including an internship;
551-19               (5)  enforcing the provisions of this subtitle relating
551-20   to:
551-21                     (A)  the conduct or competence of a pharmacist
551-22   practicing in this state and the conduct of a pharmacy operating in
551-23   this state; and
551-24                     (B)  the suspension, revocation, retirement, or
551-25   restriction of a license to practice pharmacy or to operate a
551-26   pharmacy or the imposition of an administrative penalty or
551-27   reprimand on a license holder; [and]
 552-1               (6)  regulating the training, qualifications, and
 552-2   employment of a pharmacist-intern and pharmacy technician; and
 552-3               (7)  determining and issuing standards for recognizing
 552-4   and approving a pharmacy residency program for purposes of
 552-5   Subchapter W, Chapter 61, Education Code.
 552-6         (b)  Section 2, Chapter 1243, Acts of the 76th Legislature,
 552-7   Regular Session, 1999, is repealed.
 552-8         (c)  Subchapter A, Chapter 554, Occupations Code, is amended
 552-9   to conform to Section 2, Chapter 1518, Acts of the 76th
552-10   Legislature, Regular Session, 1999, by adding Section 554.0021 to
552-11   read as follows:
552-12         Sec. 554.0021.  RECOGNITION AND APPROVAL OF PHARMACIST
552-13   CERTIFICATION PROGRAMS. (a)  The board shall determine and issue
552-14   standards for recognizing and approving pharmacist certification
552-15   programs.
552-16         (b)  In adopting standards under Subsection (a), the board
552-17   shall include a requirement that a pharmacist may not use the
552-18   designation "board certified" unless the pharmacist has
552-19   successfully completed a certification program that meets the
552-20   board's standards.
552-21         (d)  Section 554.005(a), Occupations Code, is amended to
552-22   conform to Section 2, Chapter 1518, Acts of the 76th Legislature,
552-23   Regular Session, 1999, to read as follows:
552-24         (a)  In regulating the practice of pharmacy and the use in
552-25   this state of prescription drugs and devices in the diagnosis,
552-26   mitigation, or treatment or prevention of injury, illness, or
552-27   disease, the board shall:
 553-1               (1)  regulate the delivery or distribution of a
 553-2   prescription drug or device;
 553-3               (2)  specify minimum standards for the professional
 553-4   environment, technical equipment, and security in a prescription
 553-5   dispensing area;
 553-6               (3)  specify minimum standards for:
 553-7                     (A)  drug storage;
 553-8                     (B)  maintenance of prescription drug records;
 553-9   and
553-10                     (C)  procedures for the:
553-11                           (i)  delivering and dispensing in a
553-12   suitable, appropriately labeled container;
553-13                           (ii)  providing of prescription drugs or
553-14   devices;
553-15                           (iii)  monitoring of drug therapy; and
553-16                           (iv)  counseling of patients on proper use
553-17   of a prescription drug or device in the practice of pharmacy;
553-18               (4)  adopt rules regulating a prescription drug order
553-19   or medication order transmitted by electronic means; and
553-20               (5)  [annually] register a balance used for compounding
553-21   drugs in a pharmacy licensed in this state and periodically inspect
553-22   the balance to verify accuracy.
553-23         (e)  Section 2, Chapter 1518, Acts of the 76th Legislature,
553-24   Regular Session, 1999, is repealed.
553-25         SECTION 14.302. (a)  Section 554.011(c), Occupations Code, is
553-26   amended to conform to Section 1, Chapter 26, Acts of the 76th
553-27   Legislature, Regular Session, 1999, to read as follows:
 554-1         (c)  The approval may include a provision granting an
 554-2   exception to any rule adopted under this subtitle.  The board may
 554-3   extend the time an exception to a rule is granted as necessary for
 554-4   the board to adopt an amendment or modification of the rule.  The
 554-5   board may condition approval of a project on compliance with this
 554-6   section and rules adopted under this section.
 554-7         (b)  Section 1, Chapter 26, Acts of the 76th Legislature,
 554-8   Regular Session, 1999, is repealed.
 554-9         SECTION 14.303. (a)  Section 554.053(c), Occupations Code, is
554-10   amended to conform to Section 3, Chapter 1518, Acts of the 76th
554-11   Legislature, Regular Session, 1999, to read as follows:
554-12         (c)  The board shall [may] determine and issue standards for
554-13   recognition and approval of a training program for pharmacy
554-14   technicians and maintain a list of board-approved training programs
554-15   that meet those standards.
554-16         (b)  Section 3, Chapter 1518, Acts of the 76th Legislature,
554-17   Regular Session, 1999, is repealed.
554-18         SECTION 14.304. (a)  Section 559.053, Occupations Code, is
554-19   amended to conform to Section 5, Chapter 1518, Acts of the 76th
554-20   Legislature, Regular Session, 1999, to read as follows:
554-21         Sec. 559.053.  PROGRAM HOURS REQUIRED. [(a)] A license holder
554-22   satisfies the continuing education requirement by presenting
554-23   evidence satisfactory to the board of completion of at least 24
554-24   [12] hours of continuing education during the preceding 24 months
554-25   of the person's license period.
554-26         [(b)  A license holder who completes more than 12 hours of
554-27   continuing education during the preceding license period may carry
 555-1   forward not more than 12 hours for the next license period.]
 555-2         (b)  Section 5, Chapter 1518, Acts of the 76th Legislature,
 555-3   Regular Session, 1999, is repealed.
 555-4         SECTION 14.305. (a)  Section 560.051(d), Occupations Code, is
 555-5   amended to conform to Section 1, Chapter 1518, Acts of the 76th
 555-6   Legislature, Regular Session, 1999, to read as follows:
 555-7         (d)  A Class C pharmacy license or institutional pharmacy
 555-8   license may be issued to[:]
 555-9               [(1)]  a pharmacy located in:
555-10               (1) [(A)]  an inpatient facility, including a hospital,
555-11   licensed under Chapter 241 or 577, Health and Safety Code; [or]
555-12               (2) [(B)]  a hospital maintained or operated by the
555-13   state; [or]
555-14               (3) [(2)]  a hospice inpatient facility licensed under
555-15   Chapter 142, Health and Safety Code; or
555-16               (4)  an ambulatory surgical center licensed under
555-17   Chapter 243, Health and Safety Code.
555-18         (b)  Section 1, Chapter 1518, Acts of the 76th Legislature,
555-19   Regular Session, 1999, is repealed.
555-20         SECTION 14.306. (a)  Section 560.052, Occupations Code, is
555-21   amended to conform to Section 8, Chapter 1518, Acts of the 76th
555-22   Legislature, Regular Session, 1999, by adding Subsection (e) to
555-23   read as follows:
555-24         (e)  With respect to a Class C pharmacy license, the board
555-25   may issue a license to a pharmacy on certification by the
555-26   appropriate agency that the facility in which the pharmacy is
555-27   located has substantially completed the requirements for licensing.
 556-1         (b)  Section 561.002, Occupations Code, is amended to conform
 556-2   to Section 8, Chapter 1518, Acts of the 76th Legislature, Regular
 556-3   Session, 1999, to read as follows:
 556-4         Sec. 561.002.  PHARMACY LICENSE [ANNUAL] RENEWAL. A pharmacy
 556-5   license must be renewed annually or biennially as determined by the
 556-6   board.
 556-7         (c)  Section 8, Chapter 1518, Acts of the 76th Legislature,
 556-8   Regular Session, 1999, is repealed.
 556-9         SECTION 14.307. (a)  Section 561.001(b), Occupations Code, is
556-10   amended to conform to Section 9, Chapter 1518, Acts of the 76th
556-11   Legislature, Regular Session, 1999, to read as follows:
556-12         (b)  The board may adopt a system under which pharmacy
556-13   licenses expire on various dates during the year or every other
556-14   year, as appropriate.
556-15         (b)  Section 561.005, Occupations Code, is amended to conform
556-16   to Section 9, Chapter 1518, Acts of the 76th Legislature, Regular
556-17   Session, 1999, to read as follows:
556-18         Sec. 561.005.  SUSPENSION OF PHARMACY LICENSE FOR NONRENEWAL.
556-19   The board shall suspend the license and remove from the register of
556-20   licensed pharmacies the name of a pharmacy that does not file a
556-21   completed application and pay the renewal fee on or before the date
556-22   the license [or license renewal certificate] expires.
556-23         (c)  Section 9, Chapter 1518, Acts of the 76th Legislature,
556-24   Regular Session, 1999, is repealed.
556-25         SECTION 14.308. (a)  Section 563.051, Occupations Code, is
556-26   amended to conform to Section 3, Chapter 428, Acts of the 76th
556-27   Legislature, Regular Session, 1999, by adding Subsection (e) to
 557-1   read as follows:
 557-2         (e)  A practitioner may designate a licensed vocational nurse
 557-3   or a person having education equivalent to or greater than that
 557-4   required for a licensed vocational nurse to communicate the
 557-5   prescriptions of an advanced practice nurse or physician assistant
 557-6   authorized by the practitioner to sign prescription drug orders
 557-7   under Subchapter B, Chapter 157.
 557-8         (b)  Section 3, Chapter 428, Acts of the 76th Legislature,
 557-9   Regular Session, 1999, is repealed.
557-10         SECTION 14.309. (a)  Section 564.051(a), Occupations Code, is
557-11   amended to conform to Section 6, Chapter 1518, Acts of the 76th
557-12   Legislature, Regular Session, 1999, to read as follows:
557-13         (a)  The board may add a surcharge of not more than $10 for
557-14   each 12 months in a license period to a license or license renewal
557-15   fee authorized under this subtitle to fund a program to aid
557-16   impaired pharmacists and pharmacy students.
557-17         (b)  Section 6, Chapter 1518, Acts of the 76th Legislature,
557-18   Regular Session, 1999, is repealed.
557-19         SECTION 14.310. (a)  The heading for Chapter 564, Occupations
557-20   Code, is amended to conform to Section 2, Chapter 98, Acts of the
557-21   76th Legislature, Regular Session, 1999, to read as follows:
557-22                  CHAPTER 564.  PROGRAM TO AID IMPAIRED
557-23         PHARMACISTS AND PHARMACY STUDENTS; PHARMACY PEER REVIEW
557-24         (b)  Chapter 564, Occupations Code, is amended to conform to
557-25   Section 2, Chapter 98, Acts of the 76th Legislature, Regular
557-26   Session, 1999, by adding Subchapter C to read as follows:
557-27                   SUBCHAPTER C.  PHARMACY PEER REVIEW
 558-1         Sec. 564.101.  DEFINITIONS. In this subchapter:
 558-2               (1)  "Pharmacy peer review committee" means:
 558-3                     (A)  a pharmacy peer review, judicial, or
 558-4   grievance committee of a pharmacy society or association that is
 558-5   authorized to evaluate the quality of pharmacy services or the
 558-6   competence of pharmacists and suggest improvements in pharmacy
 558-7   systems to enhance patient care; or
 558-8                     (B)  a pharmacy peer review committee established
 558-9   by a person who owns a pharmacy or employs pharmacists that is
558-10   authorized to evaluate the quality of pharmacy services or the
558-11   competence of pharmacists and suggest improvements in pharmacy
558-12   systems to enhance patient care.
558-13               (2)  "Pharmacy society or association" means a
558-14   membership organization of pharmacists that is incorporated under
558-15   the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
558-16   Vernon's Texas Civil Statutes) or that is exempt from the payment
558-17   of federal income taxes under Section 501(c) of the Internal
558-18   Revenue Code of 1986.
558-19         Sec. 564.102.  PHARMACY PEER REVIEW COMMITTEE. (a)  A
558-20   pharmacy peer review committee may be established to evaluate the
558-21   quality of pharmacy services or the competence of pharmacists and
558-22   suggest improvements in pharmacy systems to enhance patient care.
558-23         (b)  The committee may review documentation of
558-24   quality-related activities in a pharmacy, assess system failures
558-25   and personnel deficiencies, determine facts, and make
558-26   recommendations or issue decisions in a written report that can be
558-27   used for continuous quality improvement purposes.
 559-1         (c)  A pharmacy peer review committee includes the members,
 559-2   employees, and agents of the committee, including assistants,
 559-3   investigators, attorneys, and any other agent that serves the
 559-4   committee in any capacity.
 559-5         Sec. 564.103.  CONFIDENTIALITY. (a)  Except as otherwise
 559-6   provided by this subchapter, all proceedings and records of a
 559-7   pharmacy peer review committee are confidential and all
 559-8   communications made to a pharmacy peer review committee are
 559-9   privileged.
559-10         (b)  If a court makes a preliminary finding that a
559-11   proceeding, record, or communication described by Subsection (a) is
559-12   relevant to an anticompetitive action or an action brought under
559-13   federal civil rights provisions under 42 U.S.C. Section 1983, then
559-14   the proceeding, record, or communication is not confidential to the
559-15   extent it is considered to be relevant.
559-16         (c)  The final report of, and any written or oral
559-17   communication made to, a pharmacy peer review committee and the
559-18   records and proceedings of the committee may be disclosed to
559-19   another pharmacy peer review committee, appropriate state or
559-20   federal agencies, national accreditation bodies, or the state board
559-21   of registration or licensure of this or any other state.
559-22         (d)  Disclosure to the affected pharmacist of confidential
559-23   pharmacy peer review committee information pertinent to the matter
559-24   under review does not constitute waiver of the confidentiality
559-25   provisions provided by this section.
559-26         (e)  If a pharmacy peer review committee takes action that
559-27   could result in censure, license suspension, restriction,
 560-1   limitation, or revocation by the board or denial of membership or
 560-2   privileges in a health care entity, the affected pharmacist must be
 560-3   provided a written copy of the recommendation of the pharmacy peer
 560-4   review committee and a copy of the pharmacy peer review committee's
 560-5   final decision, including a statement of the basis for the
 560-6   decision.
 560-7         (f)  Unless disclosure is required or authorized by law,
 560-8   records or determinations of, or communications to, a pharmacy peer
 560-9   review committee are not subject to subpoena or discovery and are
560-10   not admissible as evidence in any civil, judicial, or
560-11   administrative proceeding without waiver of the privilege of
560-12   confidentiality executed in writing by the committee.  The
560-13   evidentiary privilege created by this section may be invoked by any
560-14   person or organization in any civil, judicial, or administrative
560-15   proceeding unless the person or organization has secured a waiver
560-16   of the privilege executed in writing by the presiding officer,
560-17   assistant presiding officer, or secretary of the affected pharmacy
560-18   peer review committee.
560-19         (g)  Reports, information, or records received and maintained
560-20   by the board under this subchapter are considered investigative
560-21   files and are confidential and may only be released as specified in
560-22   Section 565.055.
560-23         Sec. 564.104.  USE OF INFORMATION IN CIVIL AND CRIMINAL
560-24   ACTIONS. (a)  If a pharmacy peer review committee, a person
560-25   participating in peer review, or any organization named as a
560-26   defendant in any civil action filed as a result of participation in
560-27   peer review may use otherwise confidential information in the
 561-1   committee's, person's, or organization's own defense or in a claim
 561-2   or suit under Section 564.106(b), a plaintiff in the proceeding may
 561-3   disclose records or determinations of, or communications to, a peer
 561-4   review committee in rebuttal to information supplied by the
 561-5   defendant.
 561-6         (b)  Any person seeking access to privileged information must
 561-7   plead and prove waiver of the privilege.
 561-8         (c)  A member, employee, or agent of a pharmacy peer review
 561-9   committee who provides access to otherwise privileged
561-10   communications or records in cooperation with a law enforcement
561-11   authority in a criminal investigation is not considered to have
561-12   waived any privilege established under this subchapter.
561-13         Sec. 564.105.  COMPLIANCE WITH SUBPOENA. All persons,
561-14   including governing bodies and medical staffs of health care
561-15   entities, shall comply fully with a subpoena issued by the board
561-16   for documents or information as otherwise authorized by law.  The
561-17   disclosure of documents or information under the subpoena does not
561-18   constitute a waiver of the privilege associated with a pharmacy
561-19   peer review committee proceeding. Failure to comply with the
561-20   subpoena is grounds for disciplinary action against the facility or
561-21   individual by the appropriate licensing board.
561-22         Sec. 564.106.  IMMUNITY. (a)  A cause of action does not
561-23   accrue against the members, agents, or employees of a pharmacy peer
561-24   review committee from any act, statement, determination, or
561-25   recommendation made or act reported, without malice, in the course
561-26   of peer review according to this subchapter.
561-27         (b)  A pharmacy peer review committee, a person participating
 562-1   in peer review, or a health care entity named as a defendant in any
 562-2   civil action filed as a result of participation in peer review may
 562-3   use otherwise confidential information obtained for legitimate
 562-4   internal business and professional purposes, including use in the
 562-5   committee's, person's, or entity's own defense.  The use of the
 562-6   information does not waive the confidential and privileged nature
 562-7   of pharmacy peer review committee proceedings.
 562-8         (c)  Section 2, Chapter 98, Acts of the 76th Legislature,
 562-9   Regular Session, 1999, is repealed.
562-10         SECTION 14.311. (a)  Section 565.055(c), Occupations Code, is
562-11   amended to conform to Section 1, Chapter 98, Acts of the 76th
562-12   Legislature, Regular Session, 1999, to read as follows:
562-13         (c)  Notwithstanding Subsection (b), information or material
562-14   compiled by the board in connection with an investigation may be
562-15   disclosed to:
562-16               (1)  a person involved with the board in a disciplinary
562-17   action against the license holder;
562-18               (2)  an entity in another jurisdiction that licenses or
562-19   disciplines pharmacists or pharmacies;
562-20               (3)  a pharmaceutical or pharmacy peer review committee
562-21   as described under Chapter 564;
562-22               (4)  a law enforcement agency; or
562-23               (5)  a person engaged in bona fide research, if all
562-24   information identifying a specific individual has been deleted.
562-25         (b)  Section 1, Chapter 98, Acts of the 76th Legislature,
562-26   Regular Session, 1999, is repealed.
562-27         SECTION 14.312. (a)  Subchapter C, Chapter 565, Occupations
 563-1   Code, is amended to conform to Section 7, Chapter 1518, Acts of the
 563-2   76th Legislature, Regular Session, 1999, and to more accurately
 563-3   reflect the law from which it was derived to read as follows:
 563-4          SUBCHAPTER C.  PETITION FOR REINSTATEMENT OR REMOVAL
 563-5                        OF RESTRICTION [LICENSE]
 563-6         Sec. 565.101.  PETITION FOR REINSTATEMENT OR REMOVAL OF
 563-7   RESTRICTION. (a)  A person whose pharmacy license, [or] license to
 563-8   practice pharmacy, or pharmacy technician registration in this
 563-9   state has been revoked or restricted under this subtitle, whether
563-10   voluntarily or by board action, may, after the first anniversary of
563-11   the effective date of the revocation or restriction, petition the
563-12   board for reinstatement or removal of the restriction of the
563-13   license or registration.
563-14         (b) The petition must be in writing and in the form
563-15   prescribed by the board.
563-16         (c)  A person petitioning for reinstatement or removal of a
563-17   restriction has the burden of proof.
563-18         Sec. 565.102.  ACTION BY BOARD. (a)  On investigation and
563-19   review of a petition under this subchapter [for reinstatement], the
563-20   board may grant or deny the petition or may modify the board's
563-21   original finding to reflect a circumstance that has changed
563-22   sufficiently to warrant the modification.
563-23         (b)  If the board denies the petition, the board may not
563-24   consider a subsequent petition from the petitioner until the first
563-25   anniversary of the date of denial of the previous petition.
563-26         Sec. 565.103.  CONDITION FOR REINSTATEMENT OR REMOVAL OF
563-27   RESTRICTION. The board may require a person to pass one or more
 564-1   examinations to reenter the practice of pharmacy.
 564-2         (b)  Section 7, Chapter 1518, Acts of the 76th Legislature,
 564-3   Regular Session, 1999, is repealed.
 564-4         SECTION 14.313. (a)  Subtitle J, Title 3, Occupations Code,
 564-5   is amended to conform to Section 4, Chapter 1518, Acts of the 76th
 564-6   Legislature, Regular Session, 1999, by adding Chapter 568 to read
 564-7   as follows:
 564-8                   CHAPTER 568.  PHARMACY TECHNICIANS
 564-9         Sec. 568.001.  RULES RELATING TO PHARMACY TECHNICIANS.
564-10   (a)  In establishing rules under Section 554.053(c), the board
564-11   shall require that a pharmacy technician:
564-12               (1)  have a high school diploma or a high school
564-13   equivalency certificate or be working to achieve an equivalent
564-14   diploma or certificate; and
564-15               (2)  have passed a board-approved pharmacy technician
564-16   certification examination.
564-17         (b)  The board shall adopt rules that permit a pharmacy
564-18   technician to perform only nonjudgmental technical duties under the
564-19   direct supervision of a pharmacist.
564-20         Sec. 568.002.  PHARMACY TECHNICIAN REGISTRATION REQUIRED. (a)
564-21   A pharmacy technician must register with the board annually or
564-22   biennially, as determined by board rule, on a form prescribed by
564-23   the board.
564-24         (b)  The board may allow a technician to petition the board
564-25   for a special exemption from the technician certification
564-26   requirement if the technician:
564-27               (1)  is in a county with a population of less than
 565-1   50,000; or
 565-2               (2)  on September 1, 2001, has been employed as a
 565-3   pharmacy technician in this state for at least 10 years and the
 565-4   technician's employer approves the petition.
 565-5         Sec. 568.003.  GROUNDS FOR REFUSAL TO ISSUE OR RENEW
 565-6   REGISTRATION;  DISCIPLINARY ACTION. (a)  The board may refuse to
 565-7   issue or renew a registration or may suspend or revoke any
 565-8   registration issued by the board if the board determines that the
 565-9   applicant or registrant has:
565-10               (1)  violated this subtitle or a rule adopted under
565-11   this subtitle;
565-12               (2)  engaged in gross immorality, as that term is
565-13   defined by the rules of the board;
565-14               (3)  engaged in any fraud, deceit, or
565-15   misrepresentation, as those terms are defined by the rules of the
565-16   board, in seeking a registration to act as a pharmacy technician;
565-17               (4)  been convicted of a misdemeanor involving moral
565-18   turpitude or a felony;
565-19               (5)  a drug or alcohol dependency;
565-20               (6)  violated:
565-21                     (A)  Chapter 481 or 483, Health and Safety Code,
565-22   or rules relating to those chapters;
565-23                     (B)  Sections 485.031-485.035, Health and Safety
565-24   Code; or
565-25                     (C)  a rule adopted under Section 485.011, Health
565-26   and Safety Code;
565-27               (7)  violated the pharmacy or drug laws or rules of
 566-1   this state, another state, or the United States; or
 566-2               (8)  had a registration as a pharmacy technician issued
 566-3   by another state revoked, surrendered, or suspended for conduct
 566-4   substantially equivalent to conduct described by Subdivisions
 566-5   (1)-(6).
 566-6         (b)  A certified copy of the record of a state taking action
 566-7   described by Subsection (a)(8) is conclusive evidence of the action
 566-8   taken by the state.
 566-9         Sec. 568.004.  RENEWAL OF REGISTRATION. The board may adopt a
566-10   system in which the registrations of pharmacy technicians expire on
566-11   various dates during the year.
566-12         Sec. 568.005.  FEES. The board may adopt fees as necessary
566-13   for the registration of pharmacy technicians.
566-14         (b)  Section 4, Chapter 1518, Acts of the 76th Legislature,
566-15   Regular Session, 1999, is repealed.
566-16         SECTION 14.314. (a)  Subtitle J, Title 3, Occupations Code,
566-17   is amended to conform to Section 10, Chapter 1518, Acts of the 76th
566-18   Legislature, Regular Session, 1999, by adding Chapter 569 to read
566-19   as follows:
566-20                CHAPTER 569.  REPORTING REQUIREMENTS FOR
566-21                     PROFESSIONAL LIABILITY INSURERS
566-22         Sec. 569.001.  DUTY TO REPORT. (a)  Every insurer or other
566-23   entity providing pharmacist's professional liability insurance,
566-24   pharmacy technician professional and supplemental liability
566-25   insurance, or druggist's professional liability insurance covering
566-26   a pharmacist, pharmacy technician, or pharmacy license holder in
566-27   this state shall submit to the board the information described in
 567-1   Section 569.002 at the time prescribed.
 567-2         (b)  The information shall be provided with respect to a
 567-3   notice of claim letter or complaint filed against an insured in a
 567-4   court, if the notice or complaint seeks damages relating to the
 567-5   insured's conduct in providing or failing to provide appropriate
 567-6   service within the scope of pharmaceutical care or services, and
 567-7   with respect to settlement of a claim or lawsuit made on behalf of
 567-8   the insured.
 567-9         (c)  If a pharmacist, pharmacy technician, or pharmacy
567-10   licensed in this state does not carry or is not covered by
567-11   pharmacist's professional liability insurance, pharmacy technician
567-12   professional and supplemental liability insurance, or druggist's
567-13   professional liability insurance and is insured by a nonadmitted
567-14   carrier or other entity providing pharmacy professional liability
567-15   insurance that does not report under this subtitle, the duty to
567-16   report information under Section 569.002 is the responsibility of
567-17   the pharmacist, pharmacy technician, or pharmacy license holder.
567-18         Sec. 569.002.  INFORMATION TO BE REPORTED. (a)  The following
567-19   information must be furnished to the board not later than the 30th
567-20   day after receipt by the insurer of the notice of claim letter or
567-21   complaint from the insured:
567-22               (1)  the name of the insured and the insured's state
567-23   pharmacy technician registration number or pharmacist or pharmacy
567-24   license number;
567-25               (2)  the policy number; and
567-26               (3)  a copy of the notice of claim letter or complaint.
567-27         (b)  The board shall, in consultation with the Texas
 568-1   Department of Insurance, adopt rules for reporting additional
 568-2   information as the board may require.  Other claim reports required
 568-3   under state and federal law shall be considered in determining the
 568-4   information to be reported, the form of the report, and frequency
 568-5   of reporting under the rules.  Additional information that the
 568-6   board may require may include:
 568-7               (1)  the date of any judgment, dismissal, or
 568-8   settlement; and
 568-9               (2)  whether an appeal has been taken and by which
568-10   party.
568-11         Sec. 569.003.  IMMUNITY FROM LIABILITY. An insurer reporting
568-12   under this subchapter, its agents or employees, or the board or its
568-13   employees or representatives are not liable for damages in a suit
568-14   brought by any person or entity for reporting as required by this
568-15   subchapter or for any other action taken under this subchapter.
568-16         Sec. 569.004.  RESTRICTION ON USE OF INFORMATION REPORTED.
568-17   (a)  Information submitted to the board under this subchapter and
568-18   the fact that the information has been submitted to the board may
568-19   not be:
568-20               (1)  offered in evidence or used in any manner in the
568-21   trial of a suit described in this subchapter; or
568-22               (2)  used in any manner to determine the eligibility or
568-23   credentialing of a pharmacy to participate in a health insurance
568-24   plan defined by the Insurance Code.
568-25         (b)  Information submitted under this subchapter is
568-26   confidential and is not subject to disclosure under Chapter 552,
568-27   Government Code.
 569-1         (c)  The board shall adopt rules to ensure the
 569-2   confidentiality of information submitted under this subchapter.
 569-3         Sec. 569.005.  INVESTIGATION OF REPORT. (a)  Except as
 569-4   otherwise provided in this section, a report received by the board
 569-5   under this subchapter is not a complaint for which a board
 569-6   investigation is required.
 569-7         (b)  The board shall review the information relating to a
 569-8   pharmacist, pharmacy technician, or pharmacy license holder against
 569-9   whom at least three professional liability claims have been
569-10   reported within a five-year period in the same manner as if a
569-11   complaint against the pharmacist, pharmacy technician, or pharmacy
569-12   license holder had been made under Chapter 555.
569-13         Sec. 569.006.  SANCTIONS IMPOSED ON INSURER. The Texas
569-14   Department of Insurance may impose on any insurer subject to this
569-15   subtitle sanctions authorized by Chapter 82, Insurance Code, if the
569-16   insurer fails to report information as required by this subchapter.
569-17         (b)  Section 10, Chapter 1518, Acts of the 76th Legislature,
569-18   Regular Session, 1999, is repealed.
569-19           PART 12.  CHANGES RELATING TO SUBTITLE K, TITLE 3,
569-20                            OCCUPATIONS CODE
569-21         SECTION 14.321. (a)  Section 601.057, Occupations Code, is
569-22   amended to conform to Section 1, Chapter 976, Acts of the 76th
569-23   Legislature, Regular Session, 1999,  and Section 16.04, Chapter
569-24   1411, Acts of the 76th Legislature, Regular Session, 1999, to read
569-25   as follows:
569-26         Sec. 601.057.  FEES. The board may set fees for examination,
569-27   certificate issuance, registration of a person under Section
 570-1   601.202, and application processing under Section 601.203
 570-2   [certificate renewal] in amounts that are reasonable to cover the
 570-3   costs of administering this chapter without the use of additional
 570-4   general revenue.
 570-5         (b)  Section 1, Chapter 976, Acts of the 76th Legislature,
 570-6   Regular Session, 1999, is repealed.
 570-7         SECTION 14.322. (a)  Subchapter B, Chapter 601, Occupations
 570-8   Code, is amended to conform to Section 16.02, Chapter 1411, Acts of
 570-9   the 76th Legislature, Regular Session, 1999, by adding Section
570-10   601.058 to read as follows:
570-11         Sec. 601.058.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
570-12   BIDDING. (a)  The board may not adopt rules restricting advertising
570-13   or competitive bidding by a medical radiologic technologist except
570-14   to prohibit false, misleading, or deceptive practices.
570-15         (b)  In its rules to prohibit false, misleading, or deceptive
570-16   practices, the board may not include a rule that:
570-17               (1)  restricts the use of any medium for advertising;
570-18               (2)  restricts the use of a medical radiologic
570-19   technologist's personal appearance or voice in an advertisement;
570-20               (3)  relates to the size or duration of an
570-21   advertisement by the medical radiologic technologist; or
570-22               (4)  restricts the medical radiologic technologist's
570-23   advertisement under a trade name.
570-24         (b)  Section 16.02, Chapter 1411, Acts of the 76th
570-25   Legislature, Regular Session, 1999, is repealed.
570-26         SECTION 14.323. (a)  Subchapter C, Chapter 601, Occupations
570-27   Code, is amended to conform to Section 16.05, Chapter 1411, Acts of
 571-1   the 76th Legislature, Regular Session, 1999, by adding Section
 571-2   601.1041 to read as follows:
 571-3         Sec. 601.1041.  NOTIFICATION OF EXAMINATION RESULTS. (a)  Not
 571-4   later than the 30th day after the date a person takes an
 571-5   examination for a certificate under this chapter, the department
 571-6   shall notify the person of the results of the examination.
 571-7         (b)  If the examination is graded or reviewed by a testing
 571-8   service, the department shall notify the person of the results of
 571-9   the examination not later than the 14th day after the date the
571-10   department receives the results from the testing service.  If
571-11   notice of the examination results will be delayed for longer than
571-12   90 days after the examination date, the department shall notify the
571-13   person of the reason for the delay before the 90th day.
571-14         (c)  The department may require a testing service to notify a
571-15   person of the results of the person's examination.
571-16         (d)  If requested in writing by a person who fails an
571-17   examination for a certificate administered under this chapter, the
571-18   department shall furnish the person with an analysis of the
571-19   person's performance on the examination.
571-20         (b)  Subchapter C, Chapter 601, Occupations Code, is amended
571-21   to conform to Sections 16.04 and 16.05, Chapter 1411, Acts of the
571-22   76th Legislature, Regular Session, 1999, by adding Section 601.110
571-23   to read as follows:
571-24         Sec. 601.110.  CERTIFICATE EXPIRATION. (a)  Not later than
571-25   the 30th day before the date a person's certificate is scheduled to
571-26   expire, the department shall send written notice of the impending
571-27   expiration to the person at the person's last known address
 572-1   according to the records of the department.
 572-2         (b)  The board by rule may adopt a system under which
 572-3   certificates expire on various dates during the year.  For the year
 572-4   in which the certificate expiration date is changed, the department
 572-5   shall prorate certificate fees on a monthly basis so that each
 572-6   certificate holder pays only that portion of the certificate fee
 572-7   that is allocable to the number of months during which the
 572-8   certificate is valid. On renewal of the certificate on the new
 572-9   expiration date, the total certificate renewal fee is payable.
572-10         (c)  Subchapter C, Chapter 601, Occupations Code, is amended
572-11   to conform to Section 16.04, Chapter 1411, Acts of the 76th
572-12   Legislature, Regular Session, 1999, by adding Sections 601.111 and
572-13   601.112 to read as follows:
572-14         Sec. 601.111.  CERTIFICATE RENEWAL PROCEDURE. (a)  A person
572-15   who is otherwise eligible to renew a certificate may renew an
572-16   unexpired certificate  by paying the required renewal fee to the
572-17   department before the expiration date of the certificate. A person
572-18   whose certificate has expired may not engage in activities that
572-19   require a certificate until the certificate has been renewed.
572-20         (b)  A person whose certificate  has been expired for 90 days
572-21   or less may renew the certificate  by paying to the department a
572-22   renewal fee that is equal to 1-1/2 times the normally required
572-23   renewal fee.
572-24         (c)  A person whose certificate has been expired for more
572-25   than 90 days but less than one year may renew the certificate by
572-26   paying to the department a renewal fee that is equal to two times
572-27   the normally required renewal fee.
 573-1         (d)  A person whose certificate has been expired for one year
 573-2   or more may not renew the certificate. The person may obtain a new
 573-3   certificate  by complying with the requirements and procedures,
 573-4   including the examination requirements, for an original
 573-5   certificate.
 573-6         Sec. 601.112.  RENEWAL OF CERTIFICATE BY OUT-OF-STATE
 573-7   PRACTITIONER. (a)  A person who held a certificate in this state,
 573-8   moved to another state, and currently holds a certificate or
 573-9   license and has been in practice in the other state for the two
573-10   years preceding the date of application may obtain a new
573-11   certificate without reexamination.
573-12         (b)  The person must pay to the department a fee that is
573-13   equal to two times the normally required renewal fee for the
573-14   certificate.
573-15         (d)  Sections 16.04 and 16.05, Chapter 1411, Acts of the 76th
573-16   Legislature, Regular Session, 1999, are repealed.
573-17         SECTION 14.324. (a)  Section 601.108, Occupations Code, is
573-18   amended to conform to Section 16.01, Chapter 1411, Acts of the 76th
573-19   Legislature, Regular Session, 1999, to read as follows:
573-20         Sec. 601.108.  CONTINUING EDUCATION AND OTHER GUIDELINES. (a)
573-21   The board may establish guidelines[, including guidelines that
573-22   require continuing education for medical radiologic technologists].
573-23         (b)  The board shall prepare, recognize, or administer
573-24   continuing education programs for medical radiologic technologists
573-25   in which participation is required, to the extent required by the
573-26   board, to keep the person's certificate.
573-27         (b)  Section 16.01, Chapter 1411, Acts of the 76th
 574-1   Legislature, Regular Session, 1999, is repealed.
 574-2         SECTION 14.325. (a)  Subchapter C, Chapter 601, Occupations
 574-3   Code, is amended to conform to Section 16.03, Chapter 1411, Acts of
 574-4   the 76th Legislature, Regular Session, 1999, by adding Section
 574-5   601.109 to read as follows:
 574-6         Sec. 601.109.  PROVISIONAL CERTIFICATE. (a)  The board may
 574-7   issue a provisional certificate to an applicant currently licensed
 574-8   or certified in another jurisdiction who seeks certification in
 574-9   this state and who:
574-10               (1)  has been licensed or certified in good standing as
574-11   a medical radiologic technologist for at least two years in another
574-12   jurisdiction, including a foreign country, that has licensing or
574-13   certification requirements substantially equivalent to the
574-14   requirements of this chapter;
574-15               (2)  has  passed  a  national  or other  examination
574-16   recognized by the board relating to the practice of radiologic
574-17   technology; and
574-18               (3)  is sponsored by a medical radiologic technologist
574-19   certified by the board under this chapter with whom the provisional
574-20   certificate holder will practice during the time the person holds a
574-21   provisional certificate.
574-22         (b)  The board may waive the requirement of Subsection (a)(3)
574-23   for an applicant if the board determines that compliance with that
574-24   subsection would be a hardship to the applicant.
574-25         (c)  A provisional certificate is valid until the date the
574-26   board approves or denies the provisional certificate holder's
574-27   application for a certificate.  The board shall issue a certificate
 575-1   under this chapter to the provisional certificate holder if:
 575-2               (1)  the provisional certificate holder is eligible to
 575-3   be certified  under Section 601.107; or
 575-4               (2)  the provisional certificate holder passes the part
 575-5   of the examination under Section 601.104 that relates to the
 575-6   applicant's knowledge and understanding of the laws and rules
 575-7   relating to the practice of radiologic technology in this state
 575-8   and:
 575-9                     (A)  the board verifies that the provisional
575-10   certificate holder meets the academic and experience requirements
575-11   for a certificate under this chapter; and
575-12                     (B)  the provisional certificate holder satisfies
575-13   any other licensing requirements under this chapter.
575-14         (d)  The board must approve or deny a provisional certificate
575-15   holder's application for a certificate not later than the 180th day
575-16   after the date the provisional certificate is issued.  The board
575-17   may extend the 180-day period if the results of an examination have
575-18   not been received by the board before the end of that period.
575-19         (e)  The board may establish a fee for a provisional
575-20   certificate in an amount reasonable and necessary to cover the cost
575-21   of issuing the certificate.
575-22         (b)  Section 16.03, Chapter 1411, Acts of the 76th
575-23   Legislature, Regular Session, 1999, is repealed.
575-24         SECTION 14.326. (a)  Section 602.052(d), Occupations Code, is
575-25   amended to conform to Section 17.01, Chapter 1411, Acts of the 76th
575-26   Legislature, Regular Session, 1999, to read as follows:
575-27         (d)  Appointments to the board shall be made without regard
 576-1   to the race, color, disability, creed, sex, religion, age, or
 576-2   national origin of the appointee.
 576-3         (b)  Section 17.01, Chapter 1411, Acts of the 76th
 576-4   Legislature, Regular Session, 1999, is repealed.
 576-5         SECTION 14.327. (a)  Section 602.053(d), Occupations Code, is
 576-6   amended to conform to Section 17.02, Chapter 1411, Acts of the 76th
 576-7   Legislature, Regular Session, 1999, to read as follows:
 576-8         (d)  A [The] public board member must be a resident of the
 576-9   state for a period of not less than four years preceding
576-10   appointment [and may not have a financial interest in an endeavor
576-11   related to the practice of medical physics].  A person may not be a
576-12   public member of the board if the person or the person's spouse:
576-13               (1)  is registered, certified, or licensed by a
576-14   regulatory agency in the field of medical physics;
576-15               (2)  is employed by or participates in the management
576-16   of a business entity or other organization regulated by or
576-17   receiving money from the board;
576-18               (3)  owns or controls, directly or indirectly, more
576-19   than a 10 percent interest in a business entity or other
576-20   organization regulated by or receiving money from the board; or
576-21               (4)  uses or receives a substantial amount of tangible
576-22   goods, services, or money from the board other than compensation or
576-23   reimbursement authorized by law for board membership, attendance,
576-24   or expenses.
576-25         (b)  Section 17.02, Chapter 1411, Acts of the 76th
576-26   Legislature, Regular Session, 1999, is repealed.
576-27         SECTION 14.328. (a)  Section 602.054, Occupations Code, is
 577-1   amended to conform to Section 17.03, Chapter 1411, Acts of the 76th
 577-2   Legislature, Regular Session, 1999, to read as follows:
 577-3         Sec. 602.054.  MEMBERSHIP [AND EMPLOYEE] RESTRICTIONS.
 577-4   (a)  In this section, "Texas trade association" means a cooperative
 577-5   and voluntarily joined association of business or professional
 577-6   competitors in this state designed to assist its members and its
 577-7   industry or profession in dealing with mutual business or
 577-8   professional problems and in promoting their common interest.
 577-9         (b)  A person may not be a member of the board if:
577-10               (1)  the person is an officer, employee, or paid
577-11   consultant of a Texas trade association in the field of medicine;
577-12   or
577-13               (2)  the person's spouse is an officer, manager, or
577-14   paid consultant of a Texas trade association in the field of
577-15   medicine.
577-16         (c)  A person may not serve as a member of the board [or act
577-17   as general counsel to the board] if the person is required to
577-18   register as a lobbyist under Chapter 305, Government Code, because
577-19   of the person's activities for compensation on behalf of a
577-20   profession related to the operation of the board.
577-21         (b)  Subchapter B, Chapter 602, Occupations Code, is amended
577-22   to conform to Section 17.03, Chapter 1411, Acts of the 76th
577-23   Legislature, Regular Session, 1999, by adding Section 602.059 to
577-24   read as follows:
577-25         Sec. 602.059.  TRAINING. (a)  A person who is appointed to
577-26   and qualifies for office as a member of the board may not vote,
577-27   deliberate, or be counted as a member in attendance at a meeting of
 578-1   the board until the person completes a training program that
 578-2   complies with this section.
 578-3         (b)  The training program must provide the person with
 578-4   information regarding:
 578-5               (1)  the legislation that created the board;
 578-6               (2)  the programs operated by the board;
 578-7               (3)  the role and functions of the board;
 578-8               (4)  the rules of the board, with an emphasis on the
 578-9   rules that relate to disciplinary and investigatory authority;
578-10               (5)  the current budget for the board;
578-11               (6)  the results of the most recent formal audit of the
578-12   board;
578-13               (7)  the requirements of:
578-14                     (A)  the open meetings law, Chapter 551,
578-15   Government Code;
578-16                     (B)  the public information law, Chapter 552,
578-17   Government Code;
578-18                     (C)  the administrative procedure law, Chapter
578-19   2001, Government Code; and
578-20                     (D)  other laws relating to public officials,
578-21   including conflict of interest laws; and
578-22               (8)  any applicable ethics policies adopted by the
578-23   board or the Texas Ethics Commission.
578-24         (c)  A person appointed to the board is entitled to
578-25   reimbursement, as provided by the General Appropriations Act, for
578-26   the travel expenses incurred in attending the training program
578-27   regardless of whether the attendance at the program occurs before
 579-1   or after the person qualifies for office.
 579-2         (c)  Section 17.03, Chapter 1411, Acts of the 76th
 579-3   Legislature, Regular Session, 1999, is repealed.
 579-4         SECTION 14.329. (a)  Section 602.056, Occupations Code, is
 579-5   amended to conform to Section 17.04, Chapter 1411, Acts of the 76th
 579-6   Legislature, Regular Session, 1999, by amending Subsection (a)  and
 579-7   adding Subsection (c) to read as follows:
 579-8         (a)  It is a ground for removal from the board that a member
 579-9   [does not]:
579-10               (1)  does not have at the time of appointment the
579-11   qualifications required by Section 602.053 for appointment to the
579-12   board;
579-13               (2)  does not maintain during service on the board the
579-14   qualifications required by Section 602.053 for appointment to the
579-15   board;  [or]
579-16               (3)  is ineligible for membership under Section
579-17   602.053(d) or Section 602.054;
579-18               (4)  cannot, because of illness or disability,
579-19   discharge the member's duties for a substantial part of the
579-20   member's term; or
579-21               (5)  does not attend at least half of the regularly
579-22   scheduled board meetings held in a calendar year, excluding
579-23   meetings held while the person was not a board member, without an
579-24   excuse approved by the board.
579-25         (c)  If the commissioner of public health has knowledge that
579-26   a potential ground for removal exists, the commissioner shall
579-27   notify the presiding officer of the board of the potential ground.
 580-1   The presiding officer shall then notify the governor and the
 580-2   attorney general that a potential ground for removal exists.  If
 580-3   the potential ground for removal involves the presiding officer,
 580-4   the commissioner shall notify the next highest ranking officer of
 580-5   the board, who shall then notify the governor and the attorney
 580-6   general that a potential ground for removal exists.
 580-7         (b)  Section 17.04, Chapter 1411, Acts of the 76th
 580-8   Legislature, Regular Session, 1999, is repealed.
 580-9         SECTION 14.330. (a)  Section 602.058(a), Occupations Code, is
580-10   amended to conform to Section 17.05, Chapter 1411, Acts of the 76th
580-11   Legislature, Regular Session, 1999, to read as follows:
580-12         (a)  The governor shall designate a member of the board as
580-13   the presiding officer of the board to serve in that capacity at the
580-14   will of the governor.  At the first regularly scheduled meeting of
580-15   each calendar year, the board shall elect from its members [a
580-16   presiding officer and] an assistant presiding officer.
580-17         (b)  Subchapter D, Chapter 602, Occupations Code, is amended
580-18   to conform to Section 17.05, Chapter 1411, Acts of the 76th
580-19   Legislature, Regular Session, 1999, by adding Section 602.1521 to
580-20   read as follows:
580-21         Sec. 602.1521.  PUBLIC PARTICIPATION.  The board shall
580-22   develop and implement policies that provide the public with a
580-23   reasonable opportunity to appear before the board and to speak on
580-24   any issue under the jurisdiction of the board.
580-25         (c)  Section 17.05, Chapter 1411, Acts of the 76th
580-26   Legislature, Regular Session, 1999, is repealed.
580-27         SECTION 14.331.  (a)  Subchapter C, Chapter 602, Occupations
 581-1   Code, is amended to conform to Section 17.06, Chapter 1411, Acts of
 581-2   the 76th Legislature, Regular Session, 1999, by adding Section
 581-3   602.104 to read as follows:
 581-4         Sec. 602.104.  DIVISION OF RESPONSIBILITIES. The board shall
 581-5   develop and implement policies that clearly separate the
 581-6   policy-making responsibilities of the board and the management
 581-7   responsibilities of the commissioner of public health, the
 581-8   executive secretary, and the staff of the department.
 581-9         (b)  Section 602.153, Occupations Code, is amended to conform
581-10   to Section 17.06, Chapter 1411, Acts of the 76th Legislature,
581-11   Regular Session, 1999, to read as follows:
581-12         Sec. 602.153.  CONTINUING EDUCATION. The board shall
581-13   recognize, [may] prepare, or [and] administer [an optional]
581-14   continuing education programs [program] for persons licensed by the
581-15   board.  A license holder must participate in the programs to the
581-16   extent required by the board to keep the person's license.
581-17         (c)  Section 17.06, Chapter 1411, Acts of the 76th
581-18   Legislature, Regular Session, 1999, is repealed.
581-19         SECTION 14.332.  (a)  Section 602.152, Occupations Code, is
581-20   amended to conform to Section 17.07, Chapter 1411, Acts of the 76th
581-21   Legislature, Regular Session, 1999, and Section 9, Chapter 1444,
581-22   Acts of the 76th Legislature, Regular Session, 1999, by amending
581-23   Subsection (b) and adding Subsections (c) and (d) to read as
581-24   follows:
581-25         (b)  The board shall maintain a file on each written
581-26   complaint filed with the board [showing the status and final
581-27   disposition of the complaint].  The file must include:
 582-1               (1)  the name of the person who filed the complaint;
 582-2               (2)  the date the complaint is received by the board;
 582-3               (3)  the subject matter of the complaint;
 582-4               (4)  the name of each person contacted in relation to
 582-5   the complaint;
 582-6               (5)  a summary of the results of the review or
 582-7   investigation of the complaint; and
 582-8               (6)  an explanation of the reason the file was closed,
 582-9   if the board closed the file without taking action other than to
582-10   investigate the complaint.
582-11         (c)  The board shall provide to the person filing the
582-12   complaint and to each person who is a subject of the complaint a
582-13   copy of the board's policies and procedures relating to complaint
582-14   investigation and resolution.
582-15         (d)  The board, at least quarterly until final disposition of
582-16   the complaint, shall notify the person filing the complaint and
582-17   each person who is a subject of the complaint of the status of the
582-18   complaint unless the notice would jeopardize an undercover
582-19   investigation.
582-20         (b)  Subchapter D, Chapter 602, Occupations Code, is amended
582-21   to conform to Section 9, Chapter 1444, Acts of the 76th
582-22   Legislature, Regular Session, 1999, by adding Section 602.1525 to
582-23   read as follows:
582-24         Sec. 602.1525.  SUBPOENAS. (a)  In an investigation of a
582-25   complaint filed with the board, the board may request that the
582-26   commissioner of public health or the commissioner's designee
582-27   approve the issuance of a subpoena.  If the request is approved,
 583-1   the board may issue a subpoena to compel the attendance of a
 583-2   relevant witness or the production, for inspection or copying, of
 583-3   relevant evidence that is in this state.
 583-4         (b)  A subpoena may be served personally or by certified
 583-5   mail.
 583-6         (c)  If a person fails to comply with a subpoena, the board,
 583-7   acting through the attorney general, may file suit to enforce the
 583-8   subpoena in a district court in Travis County or in the county in
 583-9   which a hearing conducted by the board may be held.
583-10         (d)  On finding that good cause exists for issuing the
583-11   subpoena, the court shall order the person to comply with the
583-12   subpoena.  The court may punish a person who fails to obey the
583-13   court order.
583-14         (e)  The board may delegate the authority granted under
583-15   Subsection (a) to the executive secretary of the board.
583-16         (f)  The board shall pay a reasonable fee for photocopies
583-17   subpoenaed under this section in an amount not to exceed the amount
583-18   the board may charge for copies of its records.
583-19         (g)  The reimbursement of the expenses of a witness  whose
583-20   attendance is compelled under this section is governed by Section
583-21   2001.103, Government Code.
583-22         (h)  All information and materials subpoenaed or compiled by
583-23   the board in connection with a complaint and investigation are
583-24   confidential and not subject to disclosure under Chapter 552,
583-25   Government Code, and not subject to disclosure, discovery,
583-26   subpoena, or other means of legal compulsion for their release to
583-27   anyone other than the board or its agents or employees who are
 584-1   involved in discipline of the holder of a license, except that this
 584-2   information may be disclosed to:
 584-3               (1)  persons involved with the board in a disciplinary
 584-4   action against the holder of a license;
 584-5               (2)  professional medical physics licensing or
 584-6   disciplinary boards in other jurisdictions;
 584-7               (3)  peer assistance programs approved by the board
 584-8   under Chapter 467, Health and Safety Code;
 584-9               (4)  law enforcement agencies; and
584-10               (5)  persons engaged in bona fide research, if all
584-11   individual-identifying information has been deleted.
584-12         (i)  The filing of formal charges by the board against a
584-13   holder of a license, the nature of those charges, disciplinary
584-14   proceedings of the board, and final disciplinary actions, including
584-15   warnings and reprimands, by the board are not confidential and are
584-16   subject to disclosure in accordance with Chapter 552, Government
584-17   Code.
584-18         (c)  Subchapter D, Chapter 602, Occupations Code, is amended
584-19   to conform to Section 17.07, Chapter 1411, Acts of the 76th
584-20   Legislature, Regular Session, 1999, by adding Section 602.154 to
584-21   read as follows:
584-22         Sec. 602.154.  RULES RELATING TO ADVERTISING OR COMPETITIVE
584-23   BIDDING. (a)  The board may not adopt rules restricting advertising
584-24   or competitive bidding by a license holder except to prohibit
584-25   false, misleading, or deceptive practices.
584-26         (b)  In its rules to prohibit false, misleading, or deceptive
584-27   practices, the board may not include a rule that:
 585-1               (1)  restricts the use of any medium for advertising;
 585-2               (2)  restricts the use of a license holder's personal
 585-3   appearance or voice in an advertisement;
 585-4               (3)  relates to the size or duration of an
 585-5   advertisement by the license holder; or
 585-6               (4)  restricts the license holder's advertisement under
 585-7   a trade name.
 585-8         (d)  The following are repealed:
 585-9               (1)  Section 17.07, Chapter 1411, Acts of the 76th
585-10   Legislature, Regular Session, 1999; and
585-11               (2)  Section 9, Chapter 1444, Acts of the 76th
585-12   Legislature, Regular Session, 1999.
585-13         SECTION 14.333.  (a)  Subchapter C, Chapter 602, Occupations
585-14   Code, is amended to conform to Section 17.08, Chapter 1411, Acts of
585-15   the 76th Legislature, Regular Session, 1999, by adding Section
585-16   602.105 to read as follows:
585-17         Sec. 602.105.  QUALIFICATIONS AND STANDARDS OF CONDUCT
585-18   INFORMATION. The commissioner of public health or the
585-19   commissioner's designee shall provide to members of the board, as
585-20   often as necessary, information regarding the requirements for
585-21   office under this chapter, including information regarding a
585-22   person's responsibilities under applicable laws relating to
585-23   standards of conduct for state officers.
585-24         (b)  Section 17.08, Chapter 1411, Acts of the 76th
585-25   Legislature, Regular Session, 1999, is repealed.
585-26         SECTION 14.334. (a)  Section 602.211, Occupations Code, is
585-27   amended to conform to Section 17.09, Chapter 1411, Acts of the 76th
 586-1   Legislature, Regular Session, 1999, to read as follows:
 586-2         Sec. 602.211.  LICENSE BY ENDORSEMENT OR RECIPROCITY. (a)  On
 586-3   receipt of an application and fee under Section 602.203, the board
 586-4   may waive any prerequisite for obtaining [issue] a license to a
 586-5   person who holds a license to practice medical or radiological
 586-6   physics in another state, territory, or jurisdiction acceptable to
 586-7   the board that has requirements for the licensing of medical or
 586-8   radiological physicists that are substantially the same as the
 586-9   requirements of this chapter.
586-10         (b)  The board may waive any prerequisite for obtaining a
586-11   license to practice medical physics in this state for an applicant
586-12   who holds a license issued by another jurisdiction with which this
586-13   state has a reciprocity agreement. The board may make an agreement,
586-14   subject to the approval of the governor, with another state to
586-15   allow for licensing by reciprocity.
586-16         (b)  Section 17.09, Chapter 1411, Acts of the 76th
586-17   Legislature, Regular Session, 1999, is repealed.
586-18         SECTION 14.335. (a)  Subchapter E, Chapter 602, Occupations
586-19   Code, is amended to conform to Section 17.12, Chapter 1411, Acts of
586-20   the 76th Legislature, Regular Session, 1999, by adding Section
586-21   602.213 to read as follows:
586-22         Sec. 602.213.  PROVISIONAL LICENSE. (a)  The board may issue
586-23   a provisional license to an applicant currently licensed or
586-24   certified in another jurisdiction who seeks a license in this state
586-25   and who:
586-26               (1)  has been licensed or certified in good standing as
586-27   a practitioner of medical or radiologic physics for at least two
 587-1   years in another jurisdiction, including a foreign country, that
 587-2   has licensing or certification requirements substantially
 587-3   equivalent to the requirements of this chapter;
 587-4               (2)  has passed a national or other examination
 587-5   recognized by the board relating to the practice of medical or
 587-6   radiologic physics; and
 587-7               (3)  is sponsored by a person licensed by the board
 587-8   under this chapter with whom the provisional license holder will
 587-9   practice during the time the person holds a provisional license.
587-10         (b)  The board may waive the requirement of Subsection (a)(3)
587-11   for an applicant if the board determines that compliance with that
587-12   subsection would be a hardship to the applicant.
587-13         (c)  A provisional license is valid until the date the board
587-14   approves or denies the provisional license holder's application for
587-15   a license.  The board shall issue a license under this chapter to
587-16   the provisional license holder if:
587-17               (1)  the provisional license holder is eligible to be
587-18   certified  under Section 602.211; or
587-19               (2)  the provisional license holder passes the part of
587-20   the examination under Section 602.206 that relates to the
587-21   applicant's knowledge and understanding of the laws and rules
587-22   relating to the practice of medical physics in this state and:
587-23                     (A)  the board verifies that the provisional
587-24   license holder meets the academic and experience requirements for a
587-25   license under this chapter; and
587-26                     (B)  the provisional license holder satisfies any
587-27   other licensing requirements under this chapter.
 588-1         (d)  The board must approve or deny a provisional license
 588-2   holder's application for a license not later than the 180th day
 588-3   after the date the provisional license is issued. The board may
 588-4   extend the 180-day period if the results of an examination have not
 588-5   been received by the board before the end of that period.
 588-6         (e)  The board may establish a fee for provisional licenses
 588-7   in an amount reasonable and necessary to cover the cost of issuing
 588-8   the license.
 588-9         (b)  Section 17.12, Chapter 1411, Acts of the 76th
588-10   Legislature, Regular Session, 1999, is repealed.
588-11         SECTION 14.336. (a)  Section 602.251, Occupations Code, is
588-12   amended to conform to Section 17.10, Chapter 1411, Acts of the 76th
588-13   Legislature, Regular Session, 1999, to read as follows:
588-14         Sec. 602.251.  GROUNDS FOR LICENSE DENIAL OR DISCIPLINARY
588-15   ACTION. The board shall [may] refuse to issue or renew a license,
588-16   suspend or revoke a license, or reprimand a license holder[, or
588-17   place a license holder on probation] for:
588-18               (1)  obtaining or renewing a license by means of fraud,
588-19   misrepresentation, or concealment of a material fact;
588-20               (2)  having previously applied for or held a license
588-21   issued by the licensing authority of another state, territory, or
588-22   jurisdiction that was denied, suspended, or revoked by that
588-23   licensing authority;
588-24               (3)  engaging in unprofessional conduct that endangered
588-25   or is likely to endanger the health, safety, or welfare of the
588-26   public as defined by board rule;
588-27               (4)  violating this chapter, a lawful order or rule of
 589-1   the board, or the board's code of ethics; or
 589-2               (5)  being convicted of:
 589-3                     (A)  a felony; or
 589-4                     (B)  a misdemeanor involving moral turpitude or
 589-5   that directly relates to the person's duties as a licensed medical
 589-6   physicist.
 589-7         (b)  Subchapter F, Chapter 602, Occupations Code, is amended
 589-8   to conform to Section 17.10, Chapter 1411, Acts of the 76th
 589-9   Legislature, Regular Session, 1999, by adding Section 602.253 to
589-10   read as follows:
589-11         Sec. 602.253.  PROBATION. The board may place on probation a
589-12   person whose license is suspended.  If a license suspension is
589-13   probated, the board may require the person to:
589-14               (1)  report regularly to the department on matters that
589-15   are the basis of the probation;
589-16               (2)  limit practice to the areas prescribed by the
589-17   board; or
589-18               (3)  continue or review professional education until
589-19   the person attains a degree of skill satisfactory to the board in
589-20   those areas that are the basis of the probation.
589-21         (c)  Section 17.10, Chapter 1411, Acts of the 76th
589-22   Legislature, Regular Session, 1999, is repealed.
589-23         SECTION 14.337. (a)  Chapter 602, Occupations Code, is
589-24   amended to conform to Section 17.11, Chapter 1411, Acts of the 76th
589-25   Legislature, Regular Session, 1999, by adding Subchapter H to read
589-26   as follows:
589-27                  SUBCHAPTER H.  ADMINISTRATIVE PENALTY
 590-1         Sec. 602.351.  IMPOSITION OF ADMINISTRATIVE PENALTY. (a)  The
 590-2   board may impose an administrative penalty on a person licensed
 590-3   under this chapter who violates this chapter or a rule or order
 590-4   adopted under this chapter.  A penalty collected under this
 590-5   subchapter shall be deposited in the state treasury in the general
 590-6   revenue fund.
 590-7         (b)  A proceeding to impose the penalty is considered to be a
 590-8   contested case under Chapter 2001, Government Code.
 590-9         (c)  The amount of the penalty may not exceed $500 for each
590-10   violation, and each day a violation continues or occurs is a
590-11   separate violation for purposes of imposing a penalty.  The total
590-12   amount of the penalty assessed for a violation continuing or
590-13   occurring on separate days under this subsection may not exceed
590-14   $2,500.
590-15         (d)  The amount shall be based on:
590-16               (1)  the seriousness of the violation, including the
590-17   nature, circumstances, extent, and gravity of the violation;
590-18               (2)  the threat to health or safety caused by the
590-19   violation;
590-20               (3)  the history of previous violations;
590-21               (4)  the amount necessary to deter a future violation;
590-22               (5)  whether the violator demonstrated good faith,
590-23   including, when applicable, whether the violator made good faith
590-24   efforts to correct the violation; and
590-25               (6)  any other matter that justice may require.
590-26         (e)  If the executive secretary determines that a violation
590-27   occurred, the executive secretary shall give written notice of the
 591-1   report by certified mail to the person.
 591-2         (f)  The notice under Subsection (e) must:
 591-3               (1)  include a brief summary of the alleged violation;
 591-4               (2)  state the amount of the recommended penalty; and
 591-5               (3)  inform the person of the person's right to a
 591-6   hearing on the occurrence of the violation, the amount of the
 591-7   penalty, or both.
 591-8         (g)  Within 20 days after the date the person receives the
 591-9   notice under Subsection (e), the person in writing may:
591-10               (1)  accept the determination and recommended penalty
591-11   of the executive secretary; or
591-12               (2)  make a request for a hearing on the occurrence of
591-13   the violation, the amount of the penalty, or both.
591-14         (h)  If the person accepts the determination and recommended
591-15   penalty or if the person fails to respond to the notice, the board
591-16   by order shall approve the determination and impose the recommended
591-17   penalty.
591-18         (i)  If the person requests a hearing, the board shall refer
591-19   the matter to the State Office of Administrative Hearings, which
591-20   shall promptly set a hearing date and give written notice of the
591-21   time and place of the hearing to the person.  An administrative law
591-22   judge of the State Office of Administrative Hearings shall conduct
591-23   the hearing.
591-24         (j)  The administrative law judge shall make findings of fact
591-25   and conclusions of law and promptly issue to the board a proposal
591-26   for a decision about the occurrence of the violation and the amount
591-27   of a proposed penalty.
 592-1         (k)  Based on the findings of fact, conclusions of law, and
 592-2   proposal for a decision, the board by order may determine that:
 592-3               (1)  a violation occurred and impose a penalty; or
 592-4               (2)  a violation did not occur.
 592-5         (l)  The notice of the board's order under Subsection (k)
 592-6   that is  sent to the person in accordance with Chapter 2001,
 592-7   Government Code, must include a statement of the right of the
 592-8   person to judicial review of the order.
 592-9         Sec. 602.352.  PAYMENT AND COLLECTION OF ADMINISTRATIVE
592-10   PENALTY; JUDICIAL REVIEW. (a)  Within 30 days after the date an
592-11   order of the board under Section 602.351(k) that imposes an
592-12   administrative penalty becomes final, the person shall:
592-13               (1)  pay the penalty; or
592-14               (2)  file a petition for judicial review of the board's
592-15   order contesting the occurrence of the violation, the amount of the
592-16   penalty, or both.
592-17         (b)  Within the 30-day period prescribed by Subsection (a), a
592-18   person who files a petition for judicial review may:
592-19               (1)  stay enforcement of the penalty by:
592-20                     (A)  paying the penalty to the court for
592-21   placement in an escrow account; or
592-22                     (B)  giving the court a supersedeas bond approved
592-23   by the court that is:
592-24                           (i)  for the amount of the penalty; and
592-25                           (ii)  effective until all judicial review
592-26   of the board's order is final; or
592-27               (2)  request the court to stay enforcement of the
 593-1   penalty by:
 593-2                     (A)  filing with the court a sworn affidavit of
 593-3   the person stating that the person is financially unable to pay the
 593-4   penalty and is financially unable to give the supersedeas bond; and
 593-5                     (B)  sending a copy of the affidavit to the board
 593-6   by certified mail.
 593-7         (c)  If the board receives a copy of an affidavit under
 593-8   Subsection (b)(2), the board may file with the court, within five
 593-9   days after the date the copy is received, a contest to the
593-10   affidavit.  The court shall hold a hearing on the facts alleged in
593-11   the affidavit as soon as practicable and shall stay the enforcement
593-12   of the penalty on finding that the alleged facts are true.  The
593-13   person who files an affidavit has the burden of proving that the
593-14   person is financially unable to pay the penalty or to give a
593-15   supersedeas bond.
593-16         (d)  If the person does not pay the penalty and the
593-17   enforcement of the penalty is not stayed, the penalty may be
593-18   collected.  The attorney general may sue to collect the penalty.
593-19         (e)  If the court sustains the determination that a violation
593-20   occurred, the court may uphold or reduce the amount of the penalty
593-21   and order the person to pay the full or reduced amount of the
593-22   penalty.
593-23         (f)  If the court does not sustain the determination that a
593-24   violation occurred, the court shall order that a penalty is not
593-25   owed.
593-26         (g)  If the person paid the penalty and if the amount of the
593-27   penalty is reduced or the penalty is not upheld by the court, the
 594-1   court shall order, when the court's judgment becomes final, that
 594-2   the appropriate amount plus accrued interest be remitted to the
 594-3   person within 30 days after the date that the judgment of the court
 594-4   becomes final. The interest accrues at the rate charged on loans to
 594-5   depository institutions by the New York Federal Reserve Bank. The
 594-6   interest shall be paid for the period beginning on the date the
 594-7   penalty is paid and ending on the date the penalty is remitted.
 594-8         (h)  If the person gave a supersedeas bond and the penalty is
 594-9   not upheld by the court, the court shall order, when the court's
594-10   judgment becomes final, the release of the bond. If the person gave
594-11   a supersedeas bond and the amount of the penalty is reduced, the
594-12   court shall order the release of the bond after the person pays the
594-13   reduced amount.
594-14         (b)  Section 17.11, Chapter 1411, Acts of the 76th
594-15   Legislature, Regular Session, 1999, is repealed.
594-16         SECTION 14.338. (a)  Subchapter E, Chapter 603, Occupations
594-17   Code, is amended to conform to Section 10, Chapter 1444, Acts of
594-18   the 76th Legislature, Regular Session, 1999, by adding Section
594-19   603.2041 to read as follows:
594-20         Sec. 603.2041.  SUBPOENAS. (a)  In an investigation of a
594-21   complaint filed with the board, the board may request that the
594-22   commissioner or the commissioner's designee approve the issuance of
594-23   a subpoena.  If the request is approved, the board may issue a
594-24   subpoena to compel the attendance of a relevant witness or the
594-25   production, for inspection or copying, of relevant evidence that is
594-26   in this state.
594-27         (b)  A subpoena may be served personally or by certified
 595-1   mail.
 595-2         (c)  If a person fails to comply with a  subpoena, the board,
 595-3   acting through the attorney general, may file suit to enforce the
 595-4   subpoena in a district court in Travis County or in the county in
 595-5   which a hearing conducted by the board may be held.
 595-6         (d)  On finding that good cause exists for issuing the
 595-7   subpoena, the court shall order the person to comply with the
 595-8   subpoena.  The court may punish a person who fails to obey the
 595-9   court order.
595-10         (e)  The board may delegate the authority granted under
595-11   Subsection (a) to the executive secretary of the board.
595-12         (f)  The board shall pay a reasonable fee for photocopies
595-13   subpoenaed under this section in an amount not to exceed the amount
595-14   the board may charge for copies of its records.
595-15         (g)  The reimbursement of the expenses of a witness whose
595-16   attendance is compelled under this section is governed by Section
595-17   2001.103, Government Code.
595-18         (h)  All information and materials subpoenaed or compiled by
595-19   the board in connection with a complaint and investigation are
595-20   confidential and not subject to disclosure under Chapter 552,
595-21   Government Code, and not subject to disclosure, discovery,
595-22   subpoena, or other means of legal compulsion for their release to
595-23   anyone other than the board or its agents or employees involved in
595-24   discipline of the holder of a license, except that this information
595-25   may be disclosed to:
595-26               (1)  persons involved with the board in a disciplinary
595-27   action against the holder of a license;
 596-1               (2)  professional perfusionist licensing or
 596-2   disciplinary boards in other jurisdictions;
 596-3               (3)  peer assistance programs approved by the board
 596-4   under Chapter 467, Health and Safety Code;
 596-5               (4)  law enforcement agencies; and
 596-6               (5)  persons engaged in bona fide research, if all
 596-7   individual-identifying information has been deleted.
 596-8         (i)  The filing of formal charges by the board against a
 596-9   holder of a license, the nature of those charges, disciplinary
596-10   proceedings of the board, and final disciplinary actions, including
596-11   warnings and reprimands, by the board are not confidential and are
596-12   subject to disclosure in accordance with Chapter 552, Government
596-13   Code.
596-14         (b)  Section 10, Chapter 1444, Acts of the 76th Legislature,
596-15   Regular Session, 1999, is repealed.
596-16         SECTION 14.339. (a)  Sections 604.052(b)-(d), Occupations
596-17   Code, are amended to conform to Section 14.01, Chapter 1411, Acts
596-18   of the 76th Legislature, Regular Session, 1999, to read as follows:
596-19         (b)  [The board by rule shall establish examination
596-20   requirements for a certificate under this chapter.  The board may
596-21   use the entry level examination prepared by the National Board for
596-22   Respiratory Care or an equivalent examination.]
596-23         [(c)]  The board may adopt rules necessary to implement this
596-24   chapter.
596-25         (c) [(d)]  The board may adopt rules relating to certifying,
596-26   examining, or disciplining a person under this chapter only if
596-27   necessary to protect the public health by ensuring that only a
 597-1   qualified person practices respiratory care.
 597-2         (b)  Subchapter B, Chapter 604, Occupations Code, is amended
 597-3   to conform to Section 14.01, Chapter 1411, Acts of the 76th
 597-4   Legislature, Regular Session, 1999, by adding Section 604.057 to
 597-5   read as follows:
 597-6         Sec. 604.057.  RULES REGARDING ADVERTISING OR COMPETITIVE
 597-7   BIDDING. (a)  The board may not adopt rules restricting advertising
 597-8   or competitive bidding by a temporary permit or certificate holder
 597-9   except to prohibit false, misleading, or deceptive practices.
597-10         (b)  In its rules to prohibit false, misleading, or deceptive
597-11   practices, the board may not include a rule that:
597-12               (1)  restricts the use of any medium for advertising;
597-13               (2)  restricts the use of a temporary permit or
597-14   certificate holder's personal appearance or voice in an
597-15   advertisement;
597-16               (3)  relates to the size or duration of an
597-17   advertisement by the temporary permit or certificate holder; or
597-18               (4)  restricts the temporary permit or certificate
597-19   holder's advertisement under a trade name.
597-20         (c)  Subchapter C, Chapter 604, Occupations Code, is amended
597-21   to conform to Section 14.01, Chapter 1411, Acts of the 76th
597-22   Legislature, Regular Session, 1999, by adding Sections 604.1041 and
597-23   604.1042 to read as follows:
597-24         Sec. 604.1041.  EXAMINATION. The board by rule shall
597-25   establish examination requirements for a certificate under this
597-26   chapter.  The board may use the entry level examination prepared by
597-27   the National Board for Respiratory Care or an equivalent
 598-1   examination.
 598-2         Sec. 604.1042.  NOTIFICATION OF EXAMINATION RESULTS. (a)  Not
 598-3   later than the 30th day after the date a person takes a
 598-4   certification examination under this chapter, the department shall
 598-5   notify the person of the results of the examination.
 598-6         (b)  If the examination is graded or reviewed by a testing
 598-7   service, the department shall notify the person of the results of
 598-8   the examination not later than the 14th day after the date the
 598-9   department receives the results from the testing service.  If
598-10   notice of the examination results will be delayed for longer than
598-11   90 days after the examination date, the department shall notify the
598-12   person of the reason for the delay before the 90th day.
598-13         (c)  The department may require a testing service to notify a
598-14   person of the results of the person's examination.
598-15         (d)  If requested in writing by a person who fails a
598-16   certification examination administered under this chapter, the
598-17   department shall furnish the person with an analysis of the
598-18   person's performance on the examination.
598-19         (d)  Section 14.01, Chapter 1411, Acts of the 76th
598-20   Legislature, Regular Session, 1999, is repealed.
598-21         SECTION 14.340. (a)  Section 604.108, Occupations Code, is
598-22   amended to conform to Section 14.02, Chapter 1411, Acts of the 76th
598-23   Legislature, Regular Session, 1999, to read as follows:
598-24         Sec. 604.108.  ISSUANCE OF TEMPORARY PERMIT;  RENEWAL. (a)
598-25   The department shall issue a temporary permit to an applicant who
598-26   meets the requirements of Sections 604.103 and 604.107 and pays the
598-27   permit fee.
 599-1         (b)  A temporary permit is valid for the period set by board
 599-2   rule.  The period may not be less than six months or more than 12
 599-3   months.
 599-4         (c)  A person whose certificate or temporary permit has
 599-5   expired may not engage in activities that require a certificate or
 599-6   temporary permit until the certificate or temporary permit has been
 599-7   renewed.
 599-8         (b)  Subchapter D, Chapter 604, Occupations Code, is amended
 599-9   to conform to Section 14.02, Chapter 1411, Acts of the 76th
599-10   Legislature, Regular Session, 1999, by adding Sections 604.1521 and
599-11   604.1522 to read as follows:
599-12         Sec. 604.1521.  PROCEDURE FOR RENEWAL. (a)  A person whose
599-13   certificate has been expired for 90 days or less may renew the
599-14   certificate by paying to the department a renewal fee that is equal
599-15   to 1-1/2 times the normally required renewal fee.
599-16         (b)  A person whose certificate has been expired for more
599-17   than 90 days but less than one year may renew the certificate by
599-18   paying to the department a renewal fee that is equal to two times
599-19   the normally required renewal fee.
599-20         (c)  A person whose certificate has been expired for one year
599-21   or more may not renew the certificate.  The person may obtain a new
599-22   certificate by complying with the requirements and procedures,
599-23   including the examination requirements, for obtaining an original
599-24   certificate.
599-25         Sec. 604.1522.  RENEWAL OF CERTIFICATE BY OUT-OF-STATE
599-26   PRACTITIONER. (a)  A person who was certified in this state, moved
599-27   to another state, and is currently certified and has been in
 600-1   practice in the other state for the two years preceding the date of
 600-2   application may obtain a new certificate without reexamination.
 600-3         (b)  The person must pay to the department a fee that is
 600-4   equal to two times the normally required renewal fee for the
 600-5   certificate.
 600-6         (c)  Section 604.155, Occupations Code, is repealed to
 600-7   conform to Section 14.02, Chapter 1411, Acts of the 76th
 600-8   Legislature, Regular Session, 1999.
 600-9         (d)  Section 14.02, Chapter 1411, Acts of the 76th
600-10   Legislature, Regular Session, 1999, is repealed.
600-11         SECTION 14.341. (a)  Section 604.151, Occupations Code, is
600-12   amended to conform to Section 14.03, Chapter 1411, Acts of the 76th
600-13   Legislature, Regular Session, 1999, to read as follows:
600-14         Sec. 604.151.  ANNUAL OR BIENNIAL CERTIFICATE RENEWAL.
600-15   (a)  Except as otherwise provided by this subchapter, a certificate
600-16   to practice respiratory care must be renewed annually or biennially
600-17   as determined by the board.
600-18         (b)  The board by rule may adopt a system under which
600-19   certificates expire on various dates during the year.  For the year
600-20   in which the certificate expiration date is changed, the department
600-21   shall prorate certificate fees on a monthly basis so that each
600-22   certificate holder pays only that portion of the certificate fee
600-23   that is allocable to the number of months during which the
600-24   certificate is valid. On renewal of the certificate on the new
600-25   expiration date, the total certificate renewal fee is payable.
600-26         (b)  Section 14.03, Chapter 1411, Acts of the 76th
600-27   Legislature, Regular Session, 1999, is repealed.
 601-1         SECTION 14.342. (a)  Section 605.106, Occupations Code, is
 601-2   amended to conform to Section 10, Chapter 20, Acts of the 76th
 601-3   Legislature, Regular Session, 1999, to read as follows:
 601-4         Sec. 605.106.  RECORDS AND REGISTER. (a) The executive
 601-5   director shall keep a record of each board meeting and maintain a
 601-6   register containing the name of each person holding a license under
 601-7   this chapter.  The record and register shall be open at all times
 601-8   to public inspection.
 601-9         (b)  [On March 1 of each year, the executive director shall
601-10   send an official copy of the register of license holders to the
601-11   secretary of state to be maintained as a permanent record.]
601-12         [(c)]  A certified copy of the register is admissible as
601-13   evidence in any court of this state.
601-14         (b)  Section 10, Chapter 20, Acts of the 76th Legislature,
601-15   Regular Session, 1999, is repealed.
601-16         SECTION 14.343. (a)  Section 605.151, Occupations Code, is
601-17   amended to conform to Section 13, Chapter 1444, Acts of the 76th
601-18   Legislature, Regular Session, 1999, to read as follows:
601-19         Sec. 605.151.  GENERAL POWERS OF BOARD.  The board may:
601-20               (1)  investigate complaints;
601-21               (2)  issue, suspend, deny, and revoke licenses;
601-22               (3)  reprimand license holders and place license
601-23   holders on probation;
601-24               (4)  in connection with a hearing under Section
601-25   605.353, issue subpoenas;
601-26               (5)  hold hearings; and
601-27               (6)  use personnel, facilities, furniture, equipment,
 602-1   and other items supplied by the department to administer this
 602-2   chapter.
 602-3         (b)  Section 13, Chapter 1444, Acts of the 76th Legislature,
 602-4   Regular Session, 1999, is repealed.
 602-5         SECTION 14.344. (a)  Subchapter E, Chapter 605, Occupations
 602-6   Code, is amended to conform to Section 14, Chapter 1444, Acts of
 602-7   the 76th Legislature, Regular Session, 1999, by adding Section
 602-8   605.2021 to read as follows:
 602-9         Sec. 605.2021.  SUBPOENAS. (a)  In an investigation of a
602-10   complaint filed with the board, the board may request that the
602-11   commissioner or the commissioner's designee approve the issuance of
602-12   a subpoena.  If the request is approved, the board may issue a
602-13   subpoena to compel the attendance of a relevant witness or the
602-14   production, for inspection or copying, of relevant evidence that is
602-15   in this state.
602-16         (b)  A subpoena may be served personally or by certified
602-17   mail.
602-18         (c)  If a person fails to comply with a subpoena, the board,
602-19   acting through the attorney general, may file suit to enforce the
602-20   subpoena in a district court in Travis County or in the county in
602-21   which a hearing conducted by the board may be held.
602-22         (d)  On finding that good cause exists for issuing the
602-23   subpoena, the court shall order the person to comply with the
602-24   subpoena.  The court may punish a person who fails to obey the
602-25   court order.
602-26         (e)  The board may delegate the authority granted under
602-27   Subsection (a) to the executive director of the board.
 603-1         (f)  The board shall pay a reasonable fee for photocopies
 603-2   subpoenaed under this section in an amount not to exceed the amount
 603-3   the board may charge for copies of its records.
 603-4         (g)  The reimbursement of the expenses of a witness whose
 603-5   attendance is compelled under this section is governed by Section
 603-6   2001.103, Government Code.
 603-7         (h)  All information and materials subpoenaed or compiled by
 603-8   the board in connection with a complaint and investigation are
 603-9   confidential and not subject to disclosure under Chapter 552,
603-10   Government Code, and not subject to disclosure, discovery,
603-11   subpoena, or other means of legal compulsion for their release to
603-12   anyone other than the board or its employees or agents involved in
603-13   discipline of the holder of a license, except that this information
603-14   may be disclosed to:
603-15               (1)  persons involved with the board in a disciplinary
603-16   action against the holder of a license;
603-17               (2)  professional orthotist or prosthetist disciplinary
603-18   boards in other jurisdictions;
603-19               (3)  peer assistance programs approved by the board
603-20   under Chapter 467, Health and Safety Code;
603-21               (4)  law enforcement agencies; and
603-22               (5)  persons engaged in bona fide research, if all
603-23   individual-identifying information has been deleted.
603-24         (i)  The filing of formal charges by the board against a
603-25   holder of a license, the nature of those charges, disciplinary
603-26   proceedings of the board, and final disciplinary actions, including
603-27   warnings and reprimands, by the board are not confidential and are
 604-1   subject to disclosure in accordance with Chapter 552, Government
 604-2   Code.
 604-3         (b)  Section 14, Chapter 1444, Acts of the 76th Legislature,
 604-4   Regular Session, 1999, is repealed.
 604-5           PART 13.  CHANGES RELATING TO SUBTITLE L, TITLE 3,
 604-6                            OCCUPATIONS CODE
 604-7         SECTION 14.371. (a)  Section 651.002, Occupations Code, is
 604-8   amended to conform to Section 1, Chapter 1201, Acts of the 76th
 604-9   Legislature, Regular Session, 1999, to read as follows:
604-10         Sec. 651.002.  APPLICATION OF SUNSET ACT. The Texas Funeral
604-11   Service Commission is subject to Chapter 325, Government Code
604-12   (Texas Sunset Act). Unless continued in existence as provided by
604-13   that chapter, the commission is abolished and this chapter expires
604-14   September 1, 2001 [2003].
604-15         (b)  Section 1, Chapter 1201, Acts of the 76th Legislature,
604-16   Regular Session, 1999, is repealed.
604-17         SECTION 14.372. (a)  Section 651.051(a), Occupations Code, is
604-18   amended to conform to Section 2, Chapter 1476, Acts of the 76th
604-19   Legislature, Regular Session, 1999, to read as follows:
604-20         (a)  The Texas Funeral Service Commission consists of six
604-21   [nine] members appointed by the governor, with the advice and
604-22   consent of the senate as follows:
604-23               (1)  two [three] members who are licensed as both an
604-24   embalmer and a funeral director [embalmers with embalming
604-25   experience] in this state for at least the five years preceding
604-26   appointment to the commission;  and
604-27               (2)  four [one member who is an embalmer or a funeral
 605-1   director with experience embalming or funeral directing, as
 605-2   applicable, in this state for at least the five years preceding
 605-3   appointment to the commission; and]
 605-4               [(3)  five] members who represent the public and who:
 605-5                     (A)  are not regulated under this chapter; and
 605-6                     (B)  have consistently shown an interest in
 605-7   supporting consumer protection.
 605-8         (b)  Section 2, Chapter 1476, Acts of the 76th Legislature,
 605-9   Regular Session, 1999, is repealed.
605-10         SECTION 14.373. (a)  Section 651.053, Occupations Code, is
605-11   amended to conform to Sections 5 and 6, Chapter 1476, Acts of the
605-12   76th Legislature, Regular Session, 1999, by amending Subsection (f)
605-13   and adding Subsection (g) to read as follows:
605-14         (f)  A violation of Subsection (e) that occurs after a member
605-15   is appointed constitutes a vacancy of each of those members'
605-16   positions, as of the date of the completion of the merger or other
605-17   agreement.  The vacancy shall be filled by the governor as soon as
605-18   practicable.  A member appointed to fill a vacancy under this
605-19   subsection serves for the remainder of the vacated term.
605-20         (g)  A person may not serve as a member of the commission [or
605-21   act as the general counsel to the commission] if the person is
605-22   required to register as a lobbyist under Chapter 305, Government
605-23   Code, because of the person's activities for compensation on behalf
605-24   of a profession related to the operation of the commission.
605-25         (b)  Sections 5 and 6, Chapter 1476, Acts of the 76th
605-26   Legislature, Regular Session, 1999, are repealed.
605-27         SECTION 14.374. (a)  Section 651.054(a), Occupations Code, is
 606-1   amended to conform to Section 3, Chapter 1476, Acts of the 76th
 606-2   Legislature, Regular Session, 1999, to read as follows:
 606-3         (a)  Members of the commission serve staggered six-year
 606-4   terms, with the terms of one-third of the members expiring in each
 606-5   odd-numbered year.  A member may not be appointed for more than one
 606-6   full term, except that a member appointed to fill an unexpired term
 606-7   with less than three years remaining in the unexpired term may be
 606-8   reappointed to the commission for one full term.
 606-9         (b)  Section 3, Chapter 1476, Acts of the 76th Legislature,
606-10   Regular Session, 1999, is repealed. 
606-11         SECTION 14.375. (a)  Sections 651.057(a) and (b), Occupations
606-12   Code, are amended to conform to Section 7, Chapter 1476, Acts of
606-13   the 76th Legislature, Regular Session, 1999, to read as follows:
606-14         (a)  The governor shall designate one public member of the
606-15   commission [commissioner] as the presiding officer of the
606-16   commission to serve in that capacity at the pleasure of the
606-17   governor.
606-18         (b)  After 30 days' written notice is given to the
606-19   commissioners, the commission shall elect from its public members
606-20   an assistant presiding officer [and secretary].  The assistant
606-21   presiding officer serves [and the secretary serve] in that capacity
606-22   for one year.
606-23         (b)  Section 7, Chapter 1476, Acts of the 76th Legislature,
606-24   Regular Session, 1999, is repealed.
606-25         SECTION 14.376. (a)  Section 651.059, Occupations Code, is
606-26   amended to conform to Sections 10, 12, and 27, Chapter 1476, Acts
606-27   of the 76th Legislature, Regular Session, 1999, to read as follows:
 607-1         Sec. 651.059.  MEETINGS; NOTICE. (a)  The commission shall
 607-2   meet in regular session in Austin at least once [twice] each
 607-3   calendar quarter [year] to transact business.
 607-4         (b)  The commission may hold a special meeting or hearing on
 607-5   the call of the presiding officer, assistant presiding officer, or
 607-6   three members [commissioners].  The person calling the special
 607-7   meeting or hearing shall determine the time and place of the
 607-8   meeting or hearing.
 607-9         (c)  Notice of the time, place, and purpose of a regular
607-10   meeting of the commission must be filed with the Texas Register at
607-11   least seven days before the date of the meeting.  All meetings,
607-12   including meetings of the committees of the members, are open and
607-13   public.
607-14         (d)  The commission's duties under Chapter 551, Government
607-15   Code, include the requirement under Sections 551.021 and 551.022 of
607-16   that code to prepare and maintain the minutes of each open meeting.
607-17         (b)  Section 651.204, Occupations Code, is amended to conform
607-18   to Section 10, Chapter 1476, Acts of the 76th Legislature, Regular
607-19   Session, 1999, by adding Subsection (c) to read as follows:
607-20         (c)  A member of the public is not required to provide notice
607-21   to the commission before appearing and speaking before the
607-22   commission.
607-23         (c)  Sections 10, 12, and 27, Chapter 1476, Acts of the 76th
607-24   Legislature, Regular Session, 1999, are repealed.
607-25         SECTION 14.377. (a)  Subchapter B, Chapter 651, Occupations
607-26   Code, is amended to conform to Section 9, Chapter 1476, Acts of the
607-27   76th Legislature, Regular Session, 1999, by adding Section 651.060
 608-1   to read as follows:
 608-2         Sec. 651.060.  LEGAL REPRESENTATION. (a) The attorney general
 608-3   shall designate at least one employee of the attorney general's
 608-4   office to advise the commission and to represent the commission in
 608-5   legal proceedings.
 608-6         (b)  The commission may not employ legal counsel except as
 608-7   provided by Section 402.0212, Government Code.
 608-8         (b)  Section 651.101, Occupations Code, is amended to conform
 608-9   to Section 9, Chapter 1476, Acts of the 76th Legislature, Regular
608-10   Session, 1999, by amending Subsection (a) and adding Subsection (c)
608-11   to read as follows:
608-12         (a)  The commission shall [may] employ and supervise an
608-13   executive director [as determined by the commission] to manage the
608-14   administrative affairs of the commission under [be necessary to
608-15   administer] this chapter.  The commission shall determine the terms
608-16   and conditions [expenses] of the executive director's employment
608-17   and set the executive director's salary at an amount not to exceed
608-18   the maximum salary for the position as set in the General
608-19   Appropriations Act. In the absence of an executive director, the
608-20   commission may appoint an acting executive director.
608-21         (c)  The commission may delegate the commissioners' duties to
608-22   the executive director.
608-23         (c)  Section 651.102, Occupations Code, is amended to conform
608-24   to Section 9, Chapter 1476, Acts of the 76th Legislature, Regular
608-25   Session, 1999, to read as follows:
608-26         Sec. 651.102.  PERSONNEL. The commission may employ
608-27   inspectors and[,] clerical and technical assistants[, and legal
 609-1   counsel, other than the attorney general,] as the commission
 609-2   determines to be necessary to administer this chapter.  The
 609-3   commission shall determine the terms and expenses of its employees.
 609-4         (d)  Section 9, Chapter 1476, Acts of the 76th Legislature,
 609-5   Regular Session, 1999, is repealed.
 609-6         SECTION 14.378. (a)  Section 651.103, Occupations Code, is
 609-7   amended to conform to Section 22, Chapter 1476, Acts of the 76th
 609-8   Legislature, Regular Session, 1999, to read as follows:
 609-9         Sec. 651.103.  INVESTIGATORS. [(a)]  The commission shall
609-10   employ [or contract for the services of] one or more persons to
609-11   investigate complaints received by the commission, including
609-12   consumer interest complaints.
609-13         [(b)  An employee of the commission who serves as an
609-14   investigator must:]
609-15               [(1)  hold a private investigator license in this
609-16   state;]
609-17               [(2)  have previously held a license as a private
609-18   investigator under state or federal law; or]
609-19               [(3)  have previously been employed by a local, state,
609-20   or federal law enforcement agency as an investigator.]
609-21         [(c)  A person serving as an investigator in a contractual
609-22   capacity must hold a private investigator license in this state.]
609-23         [(d)  A person subject to regulation under this chapter may
609-24   not serve as an investigator for the commission.]
609-25         (b)  Section 651.203(b), Occupations Code, is amended to
609-26   conform to Section 22, Chapter 1476, Acts of the 76th Legislature,
609-27   Regular Session, 1999, to read as follows:
 610-1         (b)  Information in a file maintained under this section,
 610-2   other than information relating to a [obtained by the commission
 610-3   after investigating the] complaint that has not reached a final
 610-4   disposition, is public information.  [Information obtained after
 610-5   investigating the complaint is not public information.]
 610-6         (c)  Section 22, Chapter 1476, Acts of the 76th Legislature,
 610-7   Regular Session, 1999, is repealed.
 610-8         SECTION 14.379. (a)  Section 651.106, Occupations Code, is
 610-9   amended to conform to Section 15, Chapter 1476, Acts of the 76th
610-10   Legislature, Regular Session, 1999, by adding Subsection (c) to
610-11   read as follows:
610-12         (c)  The programs required under Subsections (a) and (b) must
610-13   cover an annual period, be updated at least annually, and be filed
610-14   with the governor.
610-15         (b)  Section 15, Chapter 1476, Acts of the 76th Legislature,
610-16   Regular Session, 1999, is repealed.
610-17         SECTION 14.380. (a)  Section 651.156, Occupations Code, is
610-18   amended to conform to Section 11, Chapter 1476, Acts of the 76th
610-19   Legislature, Regular Session, 1999, to read as follows:
610-20         Sec. 651.156.  SUBPOENA. (a)  The commission may issue[, or
610-21   may delegate to the executive director the power to issue,] a
610-22   subpoena or subpoena duces tecum.
610-23         (b)  The subpoena or subpoena duces tecum must be served by
610-24   personal service or certified mail, return receipt requested.
610-25         (c)  The commission by rule shall establish standards that
610-26   enable the executive director to issue subpoenas and subpoenas
610-27   duces tecum in connection with a complaint under investigation by
 611-1   the commission.
 611-2         (b)  Section 11, Chapter 1476, Acts of the 76th Legislature,
 611-3   Regular Session, 1999, is repealed.
 611-4         SECTION 14.381. (a)  Section 651.161, Occupations Code, is
 611-5   amended to conform to Section 7, Chapter 20, Acts of the 76th
 611-6   Legislature, Regular Session, 1999, to read as follows:
 611-7         Sec. 651.161.  REGISTER. (a)  The commission shall file
 611-8   annually with the governor a list of the names of all funeral
 611-9   directors, embalmers, and licensed funeral establishments.  [The
611-10   commission shall file a copy of the list with the secretary of
611-11   state for permanent record.]
611-12         (b)  A certified copy of the list[, certified by the
611-13   secretary of state and under the state seal,] is admissible as
611-14   evidence in all courts.
611-15         (b)  Section 7, Chapter 20, Acts of the 76th Legislature,
611-16   Regular Session, 1999, is repealed.
611-17         SECTION 14.382. (a)  Section 651.162, Occupations Code, is
611-18   amended to conform to Section 8, Chapter 1476, Acts of the 76th
611-19   Legislature, Regular Session, 1999, by adding Subsection (c) to
611-20   read as follows:
611-21         (c)  The commission shall file annually with the governor a
611-22   report on the commission's compliance with Sections 651.104,
611-23   651.105, and 651.204(b).
611-24         (b)  Section 8, Chapter 1476, Acts of the 76th Legislature,
611-25   Regular Session, 1999, is repealed.
611-26         SECTION 14.383. (a)  Subchapter D, Chapter 651, Occupations
611-27   Code, is amended to conform to Section 13, Chapter 1476, Acts of
 612-1   the 76th Legislature, Regular Session, 1999, by adding Section
 612-2   651.163 to read as follows:
 612-3         Sec. 651.163.  REQUEST FOR ATTORNEY GENERAL'S OPINION. A
 612-4   request for an opinion under Subchapter C, Chapter 402, Government
 612-5   Code, must be approved by the commissioners.
 612-6         (b)  Section 13, Chapter 1476, Acts of the 76th Legislature,
 612-7   Regular Session, 1999, is repealed.
 612-8         SECTION 14.384. (a)  Section 651.259, Occupations Code, is
 612-9   amended to conform to Section 16, Chapter 1476, Acts of the 76th
612-10   Legislature, Regular Session, 1999, to read as follows:
612-11         Sec. 651.259.  APPLICATION BY OUT-OF-STATE [RECIPROCAL]
612-12   LICENSE HOLDER. (a)  The commission shall [may] waive any
612-13   requirement for a funeral director's license or an embalmer's
612-14   license for an applicant who holds a license issued by another
612-15   state, country, or territory that has license requirements
612-16   substantially equivalent to the requirements of this state and who
612-17   meets the requirements of this section.  The commission may waive
612-18   any license requirement for an applicant who holds a license issued
612-19   by another state that does not have license requirements
612-20   substantially equivalent to those of this state and who meets the
612-21   requirements of this section.  The applicant shall pay a
612-22   [reciprocal] license fee in an amount set by the commission.
612-23         (b)  Any applicant for a [reciprocal] license under this
612-24   section shall file a sworn application that includes:
612-25               (1)  a statement that:
612-26                     (A)  the applicant is the person to whom the
612-27   license was issued;
 613-1                     (B)  no proceeding has been instituted against
 613-2   the applicant for the cancellation, suspension, or revocation of
 613-3   the license in the state, country, or territory that issued the
 613-4   license; and
 613-5                     (C)  no prosecution is pending against the
 613-6   applicant in a state or federal court for an offense that, under
 613-7   the laws of this state, is a felony, or is a misdemeanor related to
 613-8   the practice of embalming or funeral directing; and
 613-9               (2)  an affidavit of a person described by Subsection
613-10   (c) verifying that:
613-11                     (A)  the accompanying license has not been
613-12   canceled, suspended, or revoked; and
613-13                     (B)  the statement of the qualifications made in
613-14   the application for licensure in this state is correct.
613-15         (c)  The affidavit must be made by:
613-16               (1)  the presiding officer or secretary of the
613-17   governmental entity that issued the license; or
613-18               (2)  a registration officer of the state, country, or
613-19   territory that issued the license.
613-20         (d)  The applicant must affirm in the statement that the
613-21   license under which the applicant practiced as a funeral director
613-22   or embalmer in the state, country, or territory from which the
613-23   applicant moved was, at the time the applicant left, in effect.
613-24         (e)  The commission shall conduct a criminal background check
613-25   on each applicant. An applicant is not eligible for a license under
613-26   this section if the applicant has, in the 10 years preceding the
613-27   date of the application, been finally convicted of a misdemeanor
 614-1   involving moral turpitude or a felony.
 614-2         (f)  An applicant for a license under this section must:
 614-3               (1)  provide proof that:
 614-4                     (A)  the license is in good standing;
 614-5                     (B)  the applicant has practiced under the
 614-6   license for at least:
 614-7                           (i)  one year in the state that issued the
 614-8   license if that state has license requirements substantially
 614-9   equivalent to those of this state; or
614-10                           (ii)  five years in the state that issued
614-11   the license if that state does not have license requirements
614-12   substantially equivalent to those of this state; and
614-13                     (C)  the applicant has graduated from an
614-14   accredited college of mortuary science; and
614-15               (2)  pass a written examination of not more than 50
614-16   questions on applicable state laws and commission rules.
614-17         (g)  The commission shall conduct the examination under
614-18   Subsection (f)(2) at each regularly scheduled meeting of the
614-19   commission.
614-20         (b)  Section 16, Chapter 1476, Acts of the 76th Legislature,
614-21   Regular Session, 1999, is repealed.
614-22         SECTION 14.385. (a)  Section 651.351, Occupations Code, is
614-23   amended to conform to Section 1, Chapter 921, Acts of the 76th
614-24   Legislature, Regular Session, 1999, and Section 19, Chapter 1476,
614-25   Acts of the 76th Legislature, Regular Session, 1999, by amending
614-26   Subsections (d) and (f) and adding Subsections (g) and (h) to read
614-27   as follows:
 615-1         (d)  A funeral establishment must:
 615-2               (1)  meet the building, fire safety, and health
 615-3   standards and health ordinances of this state and of the
 615-4   municipality in which the establishment is located;
 615-5               (2)  be located at a fixed place that is not tax-exempt
 615-6   property or a cemetery;
 615-7               (3)  include facilities in which funeral services may
 615-8   be conducted;
 615-9               (4)  have access to rolling stock consisting of at
615-10   least one motor hearse;
615-11               (5)  include a preparation room containing[:]
615-12                     [(A)]  the facilities, equipment, and supplies
615-13   required by commission rule to ensure the provision of adequate
615-14   embalming services; [and]
615-15               (6)  include [(B)] other facilities as necessary to
615-16   comply with the sanitary codes of this state and of the
615-17   municipality in which the room is located; and
615-18               (7) [(6)]  include a display containing sufficient
615-19   merchandise to permit reasonable selection, including at least five
615-20   adult caskets, two of which must be full-size.
615-21         (f)  The least expensive casket [offered for sale by a
615-22   funeral establishment must be visibly] displayed under Subsection
615-23   (d)(7) must be a full-size casket displayed [without concealment
615-24   and] in the same general manner as the other full-size caskets are
615-25   displayed.
615-26         (g)  The commission may exempt a funeral establishment from
615-27   the requirements of Subsection (d)(5) if:
 616-1               (1)  the majority owner or designated agent of record
 616-2   of a funeral establishment submits a written petition to the
 616-3   commission requesting an exemption and stating:
 616-4                     (A)  the establishment's name and address;
 616-5                     (B)  that the establishment is located within 50
 616-6   miles of a facility owned by the establishment requesting the
 616-7   exemption and at which embalming services may be performed; and
 616-8                     (C)  that no embalming services will be performed
 616-9   at the establishment; and
616-10               (2)  the commission determines that the criteria in
616-11   Subdivision (1) have been met.
616-12         (h)  The executive director shall notify the petitioner of
616-13   the commission's decision.  The exemption remains in effect until:
616-14               (1)  the establishment is no longer located within 50
616-15   miles of a facility owned by the exempt establishment or at which
616-16   embalming services may be performed; or
616-17               (2)  an embalming service has been performed at the
616-18   establishment.
616-19         (b)  Section 651.352, Occupations Code, is amended to conform
616-20   to Section 19, Chapter 1476, Acts of the 76th Legislature, Regular
616-21   Session, 1999, by adding Subsection (d) to read as follows:
616-22         (d)  An embalming service, whether provided at a funeral
616-23   establishment or other embalming facility licensed under this
616-24   chapter, must comply with this chapter or a rule adopted under this
616-25   chapter.
616-26         (c)  Section 651.460(a), Occupations Code, is amended to
616-27   conform to Section 17, Chapter 1476, Acts of the 76th Legislature,
 617-1   Regular Session, 1999, to read as follows:
 617-2         (a)  A person violates this chapter if the person:
 617-3               (1)  arranges for funeral services or merchandise and
 617-4   fails to provide a customer with a purchase agreement as required
 617-5   by Section 651.406;
 617-6               (2)  fails to retain and make available to the
 617-7   commission, on request, copies of all price lists, written notices,
 617-8   embalming documents, and memoranda of agreement required by this
 617-9   chapter for two years after the date of distribution or signing;
617-10               (3)  violates this chapter, a rule adopted under this
617-11   chapter, an order by the commission revoking, suspending, or
617-12   probating a license, an order assessing an administrative penalty,
617-13   or an agreement to pay an administrative penalty [regardless of
617-14   whether the agreement is express or implied by Section 651.554];
617-15               (4)  allows the use of a dead human body by an
617-16   embalming establishment for research or educational purposes
617-17   without complying with Section 651.407; or
617-18               (5)  is associated with a funeral establishment,
617-19   whether as an employee, agent, subcontractor, assignee, owner, or
617-20   otherwise, and fails to comply with this chapter or a rule adopted
617-21   under this chapter.
617-22         (d)  Section 651.502(a), Occupations Code, is amended to
617-23   conform to Sections 17 and 19, Chapter 1476, Acts of the 76th
617-24   Legislature, Regular Session, 1999, to read as follows:
617-25         (a)  The commission may, before [without] a hearing or a
617-26   waiver of a right to a hearing, refuse to issue:
617-27               (1)  a license or provisional license to a person who
 618-1   has violated this chapter or a rule adopted under this chapter; or
 618-2               (2)  an establishment license to an individual,
 618-3   partnership, or corporation if the individual, a partner, or an
 618-4   officer or director of the corporation:
 618-5                     (A)  has violated this chapter or a rule adopted
 618-6   under this chapter;
 618-7                     (B)  previously held an establishment license
 618-8   that was suspended or revoked; or
 618-9                     (C)  attempts to avoid a revocation, suspension,
618-10   or license refusal by subterfuge or other evasive means.
618-11         (e)  The following are repealed:
618-12               (1)  Section 1, Chapter 921, Acts of the 76th
618-13   Legislature, Regular Session, 1999;
618-14               (2)  Section 17, Chapter  1476, Acts of the 76th
618-15   Legislature, Regular Session, 1999; and
618-16               (3)  Section 19, Chapter 1476, Acts of the 76th
618-17   Legislature, Regular Session, 1999.
618-18         SECTION 14.386. (a)  Sections 651.401(b)-(e), Occupations
618-19   Code, are amended to conform to Section 1, Chapter 1476, Acts of
618-20   the 76th Legislature, Regular Session, 1999, to read as follows:
618-21         (b)  A [person other than a funeral director may transfer a]
618-22   dead human body may be transferred without a funeral director
618-23   personally making the transfer:
618-24               (1)  from one funeral establishment to another;
618-25               (2)  [and] from a funeral establishment to and from a
618-26   morgue in which an autopsy is performed;
618-27               (3)  to and from an airport, crematory, or both; or
 619-1               (4)[.]
 619-2         [(c)  An unlicensed person may pick up or transfer a dead
 619-3   human body without the personal supervision of a funeral director
 619-4   or embalmer] in circumstances in which there is no reasonable
 619-5   probability that an [the] unlicensed person will encounter a family
 619-6   member or other person with whom funeral arrangements are normally
 619-7   made by a funeral director or embalmer.
 619-8         (c) [(d)]  If an unlicensed person inadvertently encounters a
 619-9   family member or other person with whom funeral arrangements are
619-10   normally made, the unlicensed person shall restrict communication
619-11   with the family member or other person to:
619-12               (1)  identifying the unlicensed person's employer;
619-13               (2)  arranging an appointment with the unlicensed
619-14   person's employer for a family member or other person who indicates
619-15   a desire to make funeral arrangements for the deceased; and
619-16               (3)  making any disclosure to the family member or
619-17   other person that is required by federal or state law or
619-18   regulation.
619-19         (d) [(e)]  A funeral director or embalmer who directs the
619-20   removal or transfer of a dead human body without personally
619-21   supervising the transfer is strictly accountable for compliance
619-22   with the requirements of first call as provided by this section.
619-23         (b)  Section 1, Chapter 1476, Acts of the 76th Legislature,
619-24   Regular Session, 1999, is repealed.
619-25         SECTION 14.387. (a)  Section 651.504, Occupations Code, is
619-26   amended to conform to Section 25, Chapter 1476, Acts of the 76th
619-27   Legislature, Regular Session, 1999, to read as follows:
 620-1         Sec. 651.504.  REPRIMAND. [(a)]  The commission may, after a
 620-2   hearing as provided by [this section or] Section 651.506 or without
 620-3   a hearing if the person waives a hearing, reprimand a person
 620-4   regulated under this chapter if the commission determines that the
 620-5   person violated this chapter or a rule adopted under this chapter.
 620-6         [(b)  If, after examining a possible violation and the facts
 620-7   relating to that violation, the commission concludes that a
 620-8   violation has occurred, the commission may issue a preliminary
 620-9   report that states the facts on which the conclusion is based and
620-10   that a reprimand is to be issued.  If the reprimand is to be issued
620-11   in addition to the assessment of an administrative penalty under
620-12   Subchapter L, the preliminary report required by this section may
620-13   be combined with the preliminary report required by Section
620-14   651.553.  Not later than the 10th day after the date the
620-15   preliminary report is issued, the commission shall send a copy of
620-16   the report to the person charged with the violation, with a
620-17   statement of the right of the person to a hearing relating to the
620-18   alleged violation.]
620-19         [(c)  Not later than the 30th day after the date on which the
620-20   preliminary report is sent, the person charged may request in
620-21   writing a hearing.  Failure to request a hearing within the time
620-22   provided by this subsection waives the right to a hearing.  If the
620-23   right to a hearing is waived, the commission shall issue the
620-24   reprimand and place a copy of the reprimand in the permanent
620-25   records of the commission.  If the person charged requests a
620-26   hearing, the hearing shall be conducted in the manner provided by
620-27   Section 651.506.  If, after the hearing, the commission determines
 621-1   that the person committed the alleged violation, the commission, in
 621-2   addition to or instead of the issuance of a reprimand, may take any
 621-3   action authorized by this chapter.]
 621-4         (b)  Section 25, Chapter 1476, Acts of the 76th Legislature,
 621-5   Regular Session, 1999, is repealed.
 621-6         SECTION 14.388. (a)  Section 651.506, Occupations Code, is
 621-7   amended to conform to Sections 4 and 21, Chapter 1476, Acts of the
 621-8   76th Legislature, Regular Session, 1999, to read as follows:
 621-9         Sec. 651.506.  DISCIPLINARY PROCEEDINGS; HEARING PROCEEDINGS.
621-10   (a)  A proceeding conducted by the commission relating to the
621-11   denial of a license or provisional license, the suspension or
621-12   revocation of a license, the issuance of a reprimand, or the
621-13   imposition of an administrative penalty assessed after a hearing as
621-14   provided by Section 651.551 and judicial review of the proceeding
621-15   are governed by Chapter 2001, Government Code.
621-16         (b)  A proceeding brought under Subsection (a) shall [may] be
621-17   held before an administrative law judge employed by the State
621-18   Office of Administrative Hearings [a hearings officer.  The
621-19   executive director shall set a time and place for the hearing].
621-20         (c)  [The hearings officer must be an attorney licensed in
621-21   this state.]  In the course of a proceeding, the administrative law
621-22   judge [hearings officer] may:
621-23               (1)  administer an oath;
621-24               (2)  take testimony;
621-25               (3)  rule on a question of evidence;
621-26               (4)  make a determination of fact; or
621-27               (5)  order compliance with a proper discovery request.
 622-1         (d)  The commission shall provide the administrative law
 622-2   judge [hearings officer] with a written statement of all commission
 622-3   rules or policies that govern the proceeding.
 622-4         (e)  At the conclusion of the proceeding, the administrative
 622-5   law judge [hearings officer] shall make a ruling on the matter
 622-6   accompanied by written findings of fact and conclusions of law.
 622-7         (f)  The commission shall review the findings of fact,
 622-8   conclusions of law, and ruling of the administrative law judge
 622-9   [hearings officer] before making its final ruling in the
622-10   proceeding. The commission may also review a transcript of the
622-11   proceeding before making its final ruling.  The commission shall
622-12   adopt the ruling of the administrative law judge [hearings officer]
622-13   as its ruling unless it finds good cause to issue a different
622-14   ruling.  The commission shall explain in writing the reasons for
622-15   adopting a ruling other than the one issued by the administrative
622-16   law judge [hearings officer].
622-17         (g)  The commission shall inform each interested person,
622-18   including a person filing the complaint, of the right to obtain at
622-19   that person's cost a tape or transcript of a hearing or proceeding
622-20   under this section.
622-21         (h)  A member or agent of the commission who carries out the
622-22   functions of the commission and is assigned to make a decision,
622-23   finding of fact, or conclusion of law in a proceeding pending
622-24   before the commission may not communicate directly or indirectly
622-25   with a party to the proceeding or a party's representative unless
622-26   notice and an opportunity to participate is given to all parties to
622-27   the proceeding.
 623-1         (i)  Before a hearing is conducted, two commissioners may
 623-2   participate in an informal conference relating to a matter to be
 623-3   considered in the hearing under this section.  One of the two
 623-4   commissioners must hold [be] a license as both a [licensed] funeral
 623-5   director and [or] embalmer, and one must be a public member of the
 623-6   commission.
 623-7         (j)  A commissioner who has a personal or private interest,
 623-8   or is employed by an entity with a personal or private interest, in
 623-9   a measure, proposal, or decision pending before the commission may
623-10   not vote or participate in an informal conference under Subsection
623-11   (i) relating to that interest as provided by Section 572.058,
623-12   Government Code.
623-13         (b)  Subchapter K, Chapter 651, Occupations Code, is amended
623-14   to conform to Section 21, Chapter 1476, Acts of the 76th
623-15   Legislature, Regular Session, 1999, by adding Section 651.5061 to
623-16   read as follows:
623-17         Sec. 651.5061.  WAIVER OF HEARING BY FUNERAL ESTABLISHMENT. A
623-18   funeral establishment alleged to have violated this chapter or a
623-19   rule adopted under this chapter may waive the right to a hearing as
623-20   provided by Section 651.506 by written notification to the
623-21   commission.
623-22         (c)  Sections 4 and 21, Chapter 1476, Acts of the 76th
623-23   Legislature, Regular Session, 1999, are repealed.
623-24         SECTION 14.389. (a)  Section 651.553, Occupations Code, is
623-25   amended to conform to Section 24, Chapter 1476, Acts of the 76th
623-26   Legislature, Regular Session, 1999, by adding Subsection (c) to
623-27   read as follows:
 624-1         (c)  Until a hearing has been held on the possible violation,
 624-2   the amount to be assessed may be disclosed only to the person
 624-3   charged with the violation, unless that person has waived the right
 624-4   to a hearing or paid the amount to the commission.
 624-5         (b)  Section 651.555, Occupations Code, is amended to conform
 624-6   to Section 24, Chapter 1476, Acts of the 76th Legislature, Regular
 624-7   Session, 1999, by amending Subsection (b) and adding Subsection (c)
 624-8   to read as follows:
 624-9         (b)  Not later than the 30-day period, a person who acts
624-10   under Subsection (a)(2) must, if the penalty that the person wishes
624-11   to contest is greater than $5,000:
624-12               (1)  [pay the penalty to the commission for placement
624-13   in an escrow account; or]
624-14               [(2)]  post a supersedeas bond in a form approved by
624-15   the commission for the amount of the penalty; or
624-16               (2)  if the person cannot afford to pay the penalty or
624-17   file the bond, file an affidavit in the manner required by the
624-18   Texas Rules of Civil Procedure for a person who cannot afford to
624-19   file security for costs.
624-20         (c)  The commission may file a contest, as provided by the
624-21   Texas Rules of Civil Procedure, to an affidavit filed under
624-22   Subsection (b)(2).
624-23         (c)  Section 651.557, Occupations Code, is amended to conform
624-24   to Section 24, Chapter 1476, Acts of the 76th Legislature, Regular
624-25   Session, 1999, to read as follows:
624-26         Sec. 651.557.  REMITTANCE OF PENALTY. If, after judicial
624-27   review, the court determines that a violation did not occur [or
 625-1   that the amount of the administrative penalty should be reduced],
 625-2   the court shall order, when the court's judgment becomes final, the
 625-3   release of the bond if the person gave a supersedeas bond.  If the
 625-4   person gave a supersedeas bond and the amount of the penalty is
 625-5   reduced, the court shall order the release of the bond after the
 625-6   person pays the reduced amount [commission shall remit the
 625-7   appropriate amount to the person charged with the violation not
 625-8   later than the 30th day after the date on which the judicial
 625-9   determination becomes final].
625-10         (d)  Section 24, Chapter 1476, Acts of the 76th Legislature,
625-11   Regular Session, 1999, is repealed.
625-12         SECTION 14.390. (a)  Section 651.507, Occupations Code, is
625-13   amended to conform to Section 26, Chapter 1476, Acts of the 76th
625-14   Legislature, Regular Session, 1999, to read as follows:
625-15         Sec. 651.507.  EFFECT OF MULTIPLE VIOLATIONS. (a)  The
625-16   commission or an administrative law judge employed by the State
625-17   Office of Administrative Hearings [a hearings officer] shall review
625-18   each disciplinary proceeding to determine whether the license
625-19   holder has committed the same type of violation on one or more
625-20   previous occasions.  If it is determined that the license holder
625-21   has previously committed the same type of violation, the commission
625-22   or administrative law judge [hearings officer] shall impose a
625-23   disciplinary action that is more severe than that imposed on the
625-24   previous occasion.
625-25         (b)  In a disciplinary proceeding involving multiple
625-26   violations of this chapter, the commission or the administrative
625-27   law judge [hearings officer] shall impose a disciplinary action
 626-1   that is more severe than the disciplinary action that would be
 626-2   imposed cumulatively for each of the individual violations.
 626-3         (b)  Section 26, Chapter 1476, Acts of the 76th Legislature,
 626-4   Regular Session, 1999, is repealed.
 626-5         SECTION 14.391. (a)  Section 651.601(b), Occupations Code, is
 626-6   amended to conform to Section 14, Chapter 1476, Acts of the 76th
 626-7   Legislature, Regular Session, 1999, to read as follows:
 626-8         (b)  In an action brought by the commission, the commission
 626-9   shall be represented by the attorney general or[,] a county or
626-10   district attorney[, or counsel designated by the commission].
626-11         (b)  Section 14, Chapter 1476, Acts of the 76th Legislature,
626-12   Regular Session, 1999, is repealed.
626-13         SECTION 14.392. Sections 18, 20, and 23, Chapter 1476, Acts
626-14   of the 76th Legislature, Regular Session, 1999, are repealed.
626-15                PART 14.  CHANGES RELATING TO SUBTITLE M,
626-16                        TITLE 3, OCCUPATIONS CODE
626-17         SECTION 14.401. (a)  Subchapter E, Chapter 701, Occupations
626-18   Code, is amended to conform to Section 6, Chapter 1444, Acts of the
626-19   76th Legislature, Regular Session, 1999, by adding Section 701.2041
626-20   to read as follows:
626-21         Sec. 701.2041.  SUBPOENAS. (a)  In an investigation of a
626-22   complaint filed with the dieticians board, the board may request
626-23   that the commissioner or the commissioner's designee approve the
626-24   issuance of a subpoena.  If the request is approved, the board may
626-25   issue a subpoena to compel the attendance of a relevant witness or
626-26   the production, for inspection or copying, of relevant evidence
626-27   that is in this state.
 627-1         (b)  A subpoena may be served personally or by certified
 627-2   mail.
 627-3         (c)  If a person fails to comply with a subpoena, the
 627-4   dieticians board, acting through the attorney general, may file
 627-5   suit to enforce the subpoena in a district court in Travis County
 627-6   or in the county in which a hearing conducted by the board may be
 627-7   held.
 627-8         (d)  On finding that good cause exists for issuing the
 627-9   subpoena, the court shall order the person to comply with the
627-10   subpoena.  The court may punish a person who fails to obey the
627-11   court order.
627-12         (e)  The board may delegate the authority granted under
627-13   Subsection (a) to the executive secretary of the dieticians board. 
627-14         (f)  The dieticians board shall pay a reasonable fee for
627-15   photocopies subpoenaed under this section in an amount not to
627-16   exceed the amount the board may charge for copies of its records.
627-17         (g)  The reimbursement of the expenses of a witness whose
627-18   attendance is compelled under this section is governed by Section
627-19   2001.103, Government Code.
627-20         (h)  All information and materials subpoenaed or compiled by
627-21   the dieticians board in connection with a complaint and
627-22   investigation are confidential and not subject to disclosure under
627-23   Chapter 552, Government Code, and not subject to disclosure,
627-24   discovery, subpoena, or other means of legal compulsion for their
627-25   release to anyone other than the board or its employees or agents
627-26   involved in discipline of the holder of a license, except that this
627-27   information may be disclosed to:
 628-1               (1)  persons involved with the board in a disciplinary
 628-2   action against the holder of a license;
 628-3               (2)  professional dietitian licensing or disciplinary
 628-4   boards in other jurisdictions;
 628-5               (3)  peer assistance programs approved by the board
 628-6   under Chapter 467, Health and Safety Code;
 628-7               (4)  law enforcement agencies; and
 628-8               (5)  persons engaged in bona fide research, if all
 628-9   individual-identifying information has been deleted.
628-10         (i)  The filing of formal charges by the dieticians board
628-11   against a holder of a license, the nature of those charges,
628-12   disciplinary proceedings of the board, and final disciplinary
628-13   actions, including warnings and reprimands, by the board are not
628-14   confidential and are subject to disclosure in accordance with
628-15   Chapter 552, Government Code.
628-16         (b)  Section 6, Chapter 1444, Acts of the 76th Legislature,
628-17   Regular Session, 1999, is repealed.
628-18         PART 15.  CHANGES RELATING TO TITLE 4, OCCUPATIONS CODE
628-19         SECTION 14.421. (a)  Section 801.158(b), Occupations Code, is
628-20   amended to conform to Section 1, Chapter 1090, Acts of the 76th
628-21   Legislature, Regular Session, 1999, to read as follows:
628-22         (b)  The board, acting through the attorney general, may
628-23   bring an action to enforce a subpoena issued under Subsection (a)
628-24   against a person, including a corporation, organization, business
628-25   trust, estate, trust, partnership, association, or other legal
628-26   entity, who fails to comply with the subpoena.
628-27         (b)  Section 801.504(a), Occupations Code, is amended to
 629-1   conform to Section 1, Chapter 1090, Acts of the 76th Legislature,
 629-2   Regular Session, 1999, to read as follows:
 629-3         (a)  A person, including an entity, commits an offense if the
 629-4   person violates this chapter.
 629-5         (c)  Section 801.506, Occupations Code, is amended to conform
 629-6   to Section 1, Chapter 1090, Acts of the 76th Legislature, Regular
 629-7   Session, 1999, to read as follows:
 629-8         Sec. 801.506.  PROHIBITED PRACTICES RELATING TO CERTAIN
 629-9   ENTITIES. (a)  A sole proprietorship, partnership, or corporation
629-10   may not engage in veterinary medicine unless the owner, each
629-11   partner, or each shareholder, as appropriate, holds a license
629-12   issued under this chapter.
629-13         (b)  A corporation, organization, business trust, estate,
629-14   trust, partnership, association, or other legal entity not owned
629-15   exclusively by one or more persons licensed under this chapter may
629-16   not engage in veterinary medicine.
629-17         (c)  A veterinarian may not form or continue a partnership
629-18   with a member of another profession or a person who is not a member
629-19   of a profession if a part of the partnership employment consists of
629-20   the practice of veterinary medicine.
629-21         (d)  Subchapter H, Chapter 801, Occupations Code, is amended
629-22   to conform to Section 1, Chapter 1090, Acts of the 76th
629-23   Legislature, Regular Session, 1999, by adding Section 801.3541 to
629-24   read as follows:
629-25         Sec. 801.3541.  LOCATION OF VETERINARY PRACTICE. The premises
629-26   on which a veterinary practice is located may be owned by a person
629-27   or other legal entity that does not hold a license issued under
 630-1   this chapter.
 630-2         (e)  Section 1, Chapter 1090, Acts of the 76th Legislature,
 630-3   Regular Session, 1999, is repealed.
 630-4         SECTION 14.422. (a)  Section 801.503(a), Occupations Code, is
 630-5   amended to conform to Section 2, Chapter 1090, Acts of the 76th
 630-6   Legislature, Regular Session, 1999, to read as follows:
 630-7         (a)  A person not licensed under this chapter, including a
 630-8   corporation, organization, business trust, estate, trust,
 630-9   partnership, association, or other legal entity, who violates this
630-10   chapter or a rule adopted by the board under this chapter is
630-11   subject to a civil penalty of $1,000 for each day of violation.
630-12         (b)  Section 2, Chapter 1090, Acts of the 76th Legislature,
630-13   Regular Session, 1999, is repealed.
630-14         SECTION 14.423. (a)  Section 801.451, Occupations Code, is
630-15   amended to conform to Section 3, Chapter 1090, Acts of the 76th
630-16   Legislature, Regular Session, 1999, to read as follows:
630-17         Sec. 801.451.  IMPOSITION OF ADMINISTRATIVE PENALTY. The
630-18   board may impose an administrative penalty on a person, including a
630-19   corporation, organization, business trust, estate, trust,
630-20   partnership, association, or other legal entity, who violates this
630-21   chapter or a rule adopted or order issued under this chapter.
630-22         (b)  Section 3, Chapter 1090, Acts of the 76th Legislature,
630-23   Regular Session, 1999, is repealed.
630-24         SECTION 14.424. (a)  Section 801.502, Occupations Code, is
630-25   amended to conform to Section 4, Chapter 1090, Acts of the 76th
630-26   Legislature, Regular Session, 1999, to read as follows:
630-27         Sec. 801.502.  INJUNCTIVE RELIEF. (a)  The board, through the
 631-1   attorney general or a district or county attorney, may bring an
 631-2   action for an injunction, or a proceeding incident to an
 631-3   injunction, to:
 631-4               (1)  enforce this chapter; or
 631-5               (2)  enjoin a person, including a corporation,
 631-6   organization, business trust, estate, trust, partnership,
 631-7   association, or other legal entity, from practicing veterinary
 631-8   medicine in violation of this chapter.
 631-9         (b)  Venue for an action under this section is in:
631-10               (1)  the county in which the person against whom the
631-11   action is brought resides, if the person is an individual who
631-12   resides in this state;
631-13               (2)  the county of the defendant's principal office in
631-14   this state if the defendant is not an individual; or
631-15               (3) [(2)]  Travis County, if the person:
631-16                     (A)  is an individual who does not reside in this
631-17   state; or
631-18                     (B)  is an entity that does not have its
631-19   principal office in this state.
631-20         (b)  Section 4, Chapter 1090, Acts of the 76th Legislature,
631-21   Regular Session, 1999, is repealed.
631-22                 PART 16.  CHANGES RELATING TO TITLE 5,
631-23                            OCCUPATIONS CODE
631-24         SECTION 14.451.  The Public Accountancy Act of 1991 (Article
631-25   41a-1, Vernon's Texas Civil Statutes) is repealed to conform to
631-26   Section 1, Chapter 388, Acts of the 76th Legislature, Regular
631-27   Session, 1999.
 632-1         PART 17.  CHANGES RELATING TO TITLE 9, OCCUPATIONS CODE
 632-2         SECTION 14.471. (a)  Section 1601.261(b), Occupations Code,
 632-3   is amended to conform to Section 1, Chapter 613, Acts of the 76th
 632-4   Legislature, Regular Session, 1999, to read as follows:
 632-5         (b)  The board shall set the fee for an examination necessary
 632-6   to receive a certificate to practice barbering or to practice as a
 632-7   barber technician in an amount not to exceed $50 [is $10].
 632-8         (b)  Section 1, Chapter 613, Acts of the 76th Legislature,
 632-9   Regular Session, 1999, is repealed.
632-10         SECTION 14.472. (a)  Chapter 1601, Occupations Code, is
632-11   amended to conform to Sections 2 and 3, Chapter 613, Acts of the
632-12   76th Legislature, Regular Session, 1999, by adding Subchapter O to
632-13   read as follows:
632-14                 SUBCHAPTER O.  ADMINISTRATIVE PENALTIES
632-15         Sec. 1601.701.  IMPOSITION OF ADMINISTRATIVE PENALTY. (a)
632-16   The board may impose an administrative penalty on a person for a
632-17   violation under this section.
632-18         (b)  A person violates this chapter if the person:
632-19               (1)  engages in barbering without holding an
632-20   appropriate certificate, license, or permit;
632-21               (2)  permits another in the person's employ,
632-22   supervision, or control to practice as a barber or other license
632-23   holder unless that person holds a certificate or license;
632-24               (3)  obtains or attempts to obtain a certificate or
632-25   license by making a fraudulent representation;
632-26               (4)  owns, operates, or manages a barber school and
632-27   provides barbering services to the public in the school;
 633-1               (5)  owns, operates, or manages a barber school and
 633-2   permits a person other than an enrolled student to provide
 633-3   barbering services to the public in the school;
 633-4               (6)  wilfully fails to display a certificate, license,
 633-5   or permit as required under this chapter; or
 633-6               (7)  engages in other conduct that violates a
 633-7   requirement established under this chapter.
 633-8         Sec. 1601.702.  AMOUNT OF ADMINISTRATIVE PENALTY.  (a)  The
 633-9   amount of the administrative penalty may not exceed $1,000.  Each
633-10   day a violation continues or occurs is a separate violation for
633-11   purposes of imposing a penalty.
633-12         (b)  The amount of a penalty shall be based on:
633-13               (1)  the seriousness of the violation, including the
633-14   nature, circumstances, extent, and gravity of the violation;
633-15               (2)  the economic harm to property or the public caused
633-16   by the violation;
633-17               (3)  the history of previous violations;
633-18               (4)  the amount necessary to deter a future violation;
633-19               (5)  efforts to correct the violation; and
633-20               (6)  any other matter that justice may require.
633-21         Sec. 1601.703.  REPORT AND NOTICE OF VIOLATION AND
633-22   ADMINISTRATIVE PENALTY.  (a)  If the executive director determines
633-23   that a violation occurred, the executive director may issue to the
633-24   board a report stating:
633-25               (1)  the facts on which the determination is based; and
633-26               (2)  the executive director's recommendation on the
633-27   imposition of an administrative penalty, including a recommendation
 634-1   on the amount of the penalty.
 634-2         (b)  Not later than the 14th day after the date the report is
 634-3   issued, the executive director shall give written notice of the
 634-4   report to the person.
 634-5         (c)  The notice must:
 634-6               (1)  include a brief summary of the alleged violation;
 634-7               (2)  state the amount of the recommended penalty; and
 634-8               (3)  inform the person of the person's right to a
 634-9   hearing on the occurrence of the violation, the amount of the
634-10   penalty, or both.
634-11         Sec. 1601.704.  ADMINISTRATIVE PENALTY TO BE PAID OR HEARING
634-12   REQUESTED.  (a)  Not later than the 20th day after the date the
634-13   person receives the notice, the person in writing may:
634-14               (1)  accept the determination and recommended
634-15   administrative penalty of the executive director; or
634-16               (2)  make a request for a hearing on the occurrence of
634-17   the violation, the amount of the penalty, or both.
634-18         (b)  If the person accepts the determination and recommended
634-19   penalty of the executive director, the board by order shall approve
634-20   the determination and impose the recommended penalty.
634-21         Sec. 1601.705.  HEARING.  (a)  If the person requests a
634-22   hearing or fails to respond in a timely manner to the notice, the
634-23   executive director shall set a hearing and give written notice of
634-24   the hearing to the person.  An administrative law judge of the
634-25   State Office of Administrative Hearings shall hold the hearing.
634-26         (b)  The administrative law judge shall make findings of fact
634-27   and conclusions of law and promptly issue to the board a proposal
 635-1   for a decision about the occurrence of the violation and the amount
 635-2   of any proposed administrative penalty.
 635-3         Sec. 1601.706.  DECISION BY BOARD.  (a)  Based on the
 635-4   findings of fact, conclusions of law, and proposal for a decision,
 635-5   the board by order may:
 635-6               (1)  find that a violation occurred and impose an
 635-7   administrative penalty; or
 635-8               (2)  find that a violation did not occur.
 635-9         (b)  The notice of the board's order given to the person must
635-10   include a statement of the right of the person to judicial review
635-11   of the order.
635-12         Sec. 1601.707.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL.
635-13   Not later than the 30th day after the date the board's order
635-14   becomes final, the person shall:
635-15               (1)  pay the administrative penalty; or
635-16               (2)  file a petition for judicial review contesting the
635-17   occurrence of the violation, the amount of the penalty, or both.
635-18         Sec. 1601.708.  STAY OF ENFORCEMENT OF ADMINISTRATIVE
635-19   PENALTY.  (a)  Within the 30-day period prescribed by Section
635-20   1601.707, a person who files a petition for judicial review may:
635-21               (1)  stay enforcement of the administrative penalty by:
635-22                     (A)  paying the penalty to the court for
635-23   placement in an escrow account; or
635-24                     (B)  giving the court a supersedeas bond approved
635-25   by the court that:
635-26                           (i)  is for the amount of the penalty; and
635-27                           (ii)  is effective until all judicial
 636-1   review of the board's order is final; or
 636-2               (2)  request the court to stay enforcement of the
 636-3   penalty by:
 636-4                     (A)  filing with the court a sworn affidavit of
 636-5   the person stating that the person is financially unable to pay the
 636-6   penalty and is financially unable to give the supersedeas bond; and
 636-7                     (B)  giving a copy of the affidavit to the
 636-8   executive director by certified mail.
 636-9         (b)  If the executive director receives a copy of an
636-10   affidavit under Subsection (a)(2), the executive director may file
636-11   with the court, not later than the fifth day after the date the
636-12   copy is received, a contest to the affidavit.  The court shall hold
636-13   a hearing on the facts alleged in the affidavit as soon as
636-14   practicable and shall stay the enforcement of the penalty on
636-15   finding that the alleged facts are true.  The person who files an
636-16   affidavit has the burden of proving that the person is financially
636-17   unable to pay the penalty and to give a supersedeas bond.
636-18         Sec. 1601.709.  COLLECTION OF ADMINISTRATIVE PENALTY.  (a)
636-19   If the person does not pay the administrative penalty and the
636-20   enforcement of the penalty is not stayed, the penalty may be
636-21   collected.
636-22         (b)  The attorney general may sue to collect the penalty.
636-23         Sec. 1601.710.  DECISION BY COURT.  (a)  If the court
636-24   sustains the finding that a violation occurred, the court may
636-25   uphold or reduce the amount of the administrative penalty and order
636-26   the person to pay the full or reduced amount of the penalty.
636-27         (b)  If the court does not sustain the finding that a
 637-1   violation occurred, the court shall order that a penalty is not
 637-2   owed.
 637-3         Sec. 1601.711.  REMITTANCE OF ADMINISTRATIVE PENALTY AND
 637-4   INTEREST.  (a)  If the person paid the administrative penalty and
 637-5   if the amount of the penalty is reduced or the penalty is not
 637-6   upheld by the court, the court shall order, when the court's
 637-7   judgment becomes final, that the appropriate amount plus accrued
 637-8   interest be remitted to the person.
 637-9         (b)  The interest accrues at the rate charged on loans to
637-10   depository institutions by the New York Federal Reserve Bank.
637-11         (c)  The interest shall be paid for the period beginning on
637-12   the date the penalty is paid and ending on the date the penalty is
637-13   remitted.
637-14         Sec. 1601.712.  RELEASE OF BOND.  (a)  If the person gave a
637-15   supersedeas bond and the administrative penalty is not upheld by
637-16   the court, the court shall order, when the court's judgment becomes
637-17   final, the release of the bond.
637-18         (b)  If the person gave a supersedeas bond and the amount of
637-19   the penalty is reduced, the court shall order the release of the
637-20   bond after the person pays the reduced amount.
637-21         Sec. 1601.713.  ADMINISTRATIVE PROCEDURE.  A proceeding to
637-22   impose an administrative penalty is considered to be a contested
637-23   case under Chapter 2001, Government Code.
637-24         (b)  Section 1601.652, Occupations Code, is repealed to
637-25   conform to Section 2, Chapter 613, Acts of the 76th Legislature,
637-26   Regular Session, 1999.
637-27         (c)  Sections 2 and 3, Chapter 613, Acts of the 76th
 638-1   Legislature, Regular Session, 1999, are repealed.
 638-2         SECTION 14.473. (a)  Section 1602.253, Occupations Code, is
 638-3   amended to conform to Section 5, Chapter 428, Acts of the 76th
 638-4   Legislature, Regular Session, 1999, and Section 1, Chapter 549,
 638-5   Acts of the 76th Legislature, Regular Session, 1999, to read as
 638-6   follows:
 638-7         Sec. 1602.253.  CERTIFICATE OF HEALTH REQUIRED FOR CERTAIN
 638-8   APPLICANTS.  An applicant for an operator license, instructor
 638-9   license, reciprocal license, or specialty certificate must submit a
638-10   certificate of health that:
638-11               (1)  shows the applicant is free, as determined by a
638-12   physical examination, from tuberculosis[, hepatitis,] or a [any]
638-13   contagious disease for which the applicant is not entitled to
638-14   protection under the federal Americans with Disabilities Act of
638-15   1990 (42 U.S.C. Section 12101 et seq.); and
638-16               (2)  is signed by a licensed physician, advanced
638-17   practice nurse, or licensed physician assistant.
638-18         (b)  Section 5, Chapter 428, Acts of the 76th Legislature,
638-19   Regular Session, 1999, is repealed.
638-20         (c)  Section 1, Chapter 549, Acts of the 76th Legislature,
638-21   Regular Session, 1999, is repealed.
638-22         SECTION 14.474. Section 1602.555(a), Occupations Code, is
638-23   amended to  more accurately reflect the law from which it was
638-24   derived to read as follows:
638-25         (a)  A person commits an offense if the person, without
638-26   conducting a physical examination, signs a health certificate
638-27   required by Sections 1602.253 and [Section] 1602.353.
 639-1         SECTION 14.475. Article 8407, Revised Statutes, is repealed
 639-2   to conform to Section 1, Chapter 388, Acts of the 76th Legislature,
 639-3   Regular Session, 1999.
 639-4                 PART 18.  CHANGES RELATING TO TITLE 10,
 639-5                       OCCUPATIONS CODE, GENERALLY
 639-6         SECTION 14.501. (a)  Subchapter D, Chapter 1701, Occupations
 639-7   Code, is amended to conform to Section 1, Chapter 882, Acts of the
 639-8   76th Legislature, Regular Session, 1999, by adding Section 1701.160
 639-9   to read as follows:
639-10         Sec. 1701.160.  AUTHORITY TO COMMISSION INVESTIGATORS AS
639-11   PEACE OFFICERS.  The commission may commission certified peace
639-12   officers as investigators employed by the commission for the
639-13   limited purpose of assisting the commission in administering this
639-14   chapter.
639-15         (b)  Section 415.016, Government Code, is repealed.
639-16         SECTION 14.502. (a)  Section 1701.310, Occupations Code, is
639-17   amended to conform to Section 1, Chapter 1033, Acts of the 76th
639-18   Legislature, Regular Session, 1999, by amending Subsection (a) and
639-19   adding Subsection (e) to read as follows:
639-20         (a)  Except as provided by Subsection (e), a [A] person may
639-21   not be appointed as a county jailer, except on a temporary basis,
639-22   unless the person has satisfactorily completed a preparatory
639-23   training program, as required by the commission, in the operation
639-24   of a county jail at a school operated or licensed by the
639-25   commission.
639-26         (e)  A person trained and certified by the Texas Department
639-27   of Criminal Justice to serve as a corrections officer in that
 640-1   agency's institutional or state jail division is not required to
 640-2   complete the training requirements of this section to be appointed
 640-3   a part-time county jailer.  Examinations under Section 1701.304 and
 640-4   psychological and physical examinations under Section 1701.306
 640-5   apply.
 640-6         (b)  Section 1, Chapter 1033, Acts of the 76th Legislature,
 640-7   Regular Session, 1999, is repealed.
 640-8         SECTION 14.503. (a)  Section 1704.053, Occupations Code, is
 640-9   amended to conform to Section 1, Chapter 699, Acts of the 76th
640-10   Legislature, Regular Session, 1999, to read as follows:
640-11         Sec. 1704.053.  BOARD COMPOSITION. A board consists of:
640-12               (1)  the sheriff or a designee from the sheriff's
640-13   office who must be the sheriff's administrator or a deputy sheriff
640-14   of the rank of at least sergeant;
640-15               (2)  a district judge of the county having jurisdiction
640-16   over criminal matters and designated by the presiding judge of the
640-17   administrative judicial district;
640-18               (3)  the county judge, a member of the commissioners
640-19   court designated by the county judge, or a designee approved by the
640-20   commissioners court;
640-21               (4)  a judge of a county court or county court at law
640-22   in the county having jurisdiction over criminal matters and
640-23   designated by the commissioners court;
640-24               (5)  the district attorney or an assistant district
640-25   attorney designated by the district attorney;
640-26               (6)  a licensed bail bond surety in the county elected
640-27   by other licensed bail bond sureties in the county;
 641-1               (7)  a justice of the peace;
 641-2               (8)  the district clerk or the clerk's designee;
 641-3               (9)  the county clerk or the clerk's designee, if the
 641-4   county clerk has responsibility over criminal matters;
 641-5               (10)  if appointed by the board, a presiding judge of a
 641-6   municipal court in the county;
 641-7               (11)  if the county's principal municipality designates
 641-8   a presiding judge in the municipal court system, the presiding
 641-9   judge or a municipal judge from the system designated by the
641-10   presiding judge; and
641-11               (12)  the county treasurer or the treasurer's designee
641-12   or, if appointed by the commissioners court in a county that does
641-13   not have a county treasurer, the person designated by the county
641-14   commissioners court to perform the duties of the county treasurer.
641-15         (b)  Section 1, Chapter 699, Acts of the 76th Legislature,
641-16   Regular Session, 1999, is repealed.
641-17         SECTION 14.504. Section 1704.160, Occupations Code, is
641-18   amended to more accurately reflect the law from which it was
641-19   derived to read as follows:
641-20         Sec. 1704.160.  SECURITY REQUIREMENTS. (a)  On receipt of
641-21   notice under Section 1704.159 that an application has been
641-22   conditionally approved, the applicant must:
641-23               (1)  if the applicant is an individual:
641-24                     (A)  subject to Subsection (b), deposit with the
641-25   county treasurer a cashier's check, certificate of deposit, cash,
641-26   or cash equivalent in the amount stated on the application under
641-27   Section 1704.154(b)(3)(B); or
 642-1                     (B)  subject to Subsections (c)-(f) [(c)-(e)],
 642-2   execute in trust to the board each deed to the property listed on
 642-3   the application under Section 1704.154(b)(3)(A); or
 642-4               (2)  if the applicant is a corporation, provide to the
 642-5   sheriff an irrevocable letter of credit as a cash equivalent to pay
 642-6   any final judgment of a forfeiture on a bail bond executed by the
 642-7   applicant.
 642-8         (b)  A deposit made under Subsection (a)(1)(A) may not be
 642-9   less than $50,000, except that the deposit may not be less than
642-10   $10,000 in a county with a population of less than 250,000.  A
642-11   deposit made to a county with a population of less than 250,000
642-12   shall be placed in a fund known as a bail security fund.
642-13         (c)  The property executed in trust under Subsection
642-14   (a)(1)(B) must be valued in the amount indicated on an appraisal by
642-15   a real estate appraiser who is a member in good standing of a
642-16   nationally recognized professional appraiser society or trade
642-17   organization that has an established code of ethics, educational
642-18   program, and professional certification program.
642-19         (d)  The total value of the property executed in trust under
642-20   Subsection (a)(1)(B) may not be less than $50,000, except that the
642-21   value may not be less than $10,000 in a county with a population of
642-22   less than 250,000.
642-23         (e) [(d)]  A trust created under Subsection (a)(1)(B) is
642-24   subject to the condition that the property executed in trust may,
642-25   after notice is provided and under the conditions required by the
642-26   Code of Criminal Procedure, be sold to satisfy a final judgment on
642-27   a forfeiture on a bail bond executed by the applicant.
 643-1         (f) [(e)]  If an applicant is married, the applicant's spouse
 643-2   must execute each deed of trust under Subsection (a)(1)(B) that
 643-3   involves community property.
 643-4         (g) [(f)]  A board shall file each deed of trust in the
 643-5   records of each county in which the property is located.  The
 643-6   applicant shall pay the filing fee.
 643-7         (h) [(g)]  The certificate of authority to do business in
 643-8   this state issued under Article 8.20, Insurance Code, to an
 643-9   applicant that is a corporation is conclusive evidence of:
643-10               (1)  the sufficiency of the applicant's security; and
643-11               (2)  the applicant's solvency and credits.
643-12         (i) [(h)]  A license holder must maintain the amount of
643-13   security required by this section during the time the person holds
643-14   the license.
643-15         SECTION 14.505. (a)  Section 1704.162, Occupations Code, is
643-16   amended to conform to Section 1, Chapter 1474, Acts of the 76th
643-17   Legislature, Regular Session, 1999, by amending Subsection (a) and
643-18   adding Subsections (e) and (f) to read as follows:
643-19         (a)  A license issued or renewed under this chapter expires
643-20   on the second anniversary after the date the license is issued or
643-21   is to expire, as appropriate, if the license:
643-22               (1)  has been issued for less than eight consecutive
643-23   years; or
643-24               (2)  has been suspended.
643-25         (e)  A person who applies to renew a license that has been
643-26   held by the person for at least eight consecutive years without
643-27   having been suspended or revoked under this chapter and who
 644-1   complies with the requirements of this chapter may renew the
 644-2   license for a period of 36 months from the date of expiration if
 644-3   the board:
 644-4               (1)  knows of no legal reason why the license should
 644-5   not be renewed; and
 644-6               (2)  determines that the applicant has submitted an
 644-7   annual financial report to each county bail bond board before the
 644-8   anniversary date of the issuance of the applicant's license.
 644-9         (f)  A license renewed under Subsection (e) may be renewed
644-10   subsequently each 36 months in a similar manner.
644-11         (b)  Section 1, Chapter 1474, Acts of the 76th Legislature,
644-12   Regular Session, 1999, is repealed.
644-13         SECTION 14.506. (a)  Section 1704.203, Occupations Code, is
644-14   amended to conform to Section 1, Chapter 1096, Acts of the 76th
644-15   Legislature, Regular Session, 1999, by amending Subsection (a) and
644-16   adding Subsections (f) and (g) to read as follows:
644-17         (a)  Except as provided by Subsection (d), a license holder
644-18   who holds a license originally issued before September 1, 1999, may
644-19   not execute, and a person may not accept from the [a] license
644-20   holder, a bail bond that, in the aggregate with other bail bonds
644-21   executed by the license holder in that county, results in a total
644-22   amount that exceeds 10 times the value of the security deposited or
644-23   executed by the license holder under Section 1704.160.
644-24         (f)  A bail bond surety who holds a license originally issued
644-25   on or after September 1, 1999, and who:
644-26               (1)  has been licensed for fewer than two years or has
644-27   had a license under this chapter suspended or revoked may not
 645-1   execute, and a person may not accept from the license holder, bail
 645-2   bonds that in the aggregate exceed 10 times the value of property
 645-3   held as security under Section 1704.160(a)(1)(A) plus five times
 645-4   the value of property held in trust under Section
 645-5   1704.160(a)(1)(B);
 645-6               (2)  has been licensed for at least two years and fewer
 645-7   than four years may not execute, and a person may not accept from
 645-8   the license holder, bail bonds that in the aggregate exceed 10
 645-9   times the value of property held as security under Section
645-10   1704.160(a)(1)(A) plus  six times the value of property held in
645-11   trust under Section 1704.160(a)(1)(B);
645-12               (3)  has been licensed for at least four years and
645-13   fewer than six years may not execute, and a person may not accept
645-14   from the license holder, bail bonds that in the aggregate exceed 10
645-15   times the value of property held as security under Section
645-16   1704.160(a)(1)(A) plus eight times the value of property held in
645-17   trust under Section 1704.160(a)(1)(B); or
645-18               (4)  has been licensed for at least six years may not
645-19   execute, and a person may not accept from the license holder, bail
645-20   bonds that in the aggregate exceed 10 times the value of property
645-21   held as security under Section 1704.160(a)(1)(A) plus 10 times the
645-22   value of property held in trust under Section 1704.160(a)(1)(B).
645-23         (g)  If a bail bond surety is subject to Subsection (f)(1)
645-24   because the person has had a license under this chapter suspended
645-25   or revoked and is also subject to Subsection (f)(2), (3), or (4),
645-26   the prohibition imposed by Subsection (f)(1) controls.
645-27         (b)  Section 1, Chapter 1096, Acts of the 76th Legislature,
 646-1   Regular Session, 1999, is repealed.
 646-2         SECTION 14.507. The following are repealed:
 646-3               (1)  Section 1701.961, Occupations Code, to conform to
 646-4   Section 16, Chapter 149, Acts of the 76th Legislature, Regular
 646-5   Session, 1999; and
 646-6               (2)  Section 1704.106, Occupations Code, to conform to
 646-7   Section 1, Chapter 434, Acts of the 76th Legislature, Regular
 646-8   Session, 1999.
 646-9               PART 19.  CHANGES RELATING TO CHAPTER 1702,
646-10                       TITLE 10, OCCUPATIONS CODE
646-11         SECTION 14.551. (a)  The heading of Chapter 1702, Occupations
646-12   Code, is amended to conform to Section 1, Chapter 974, Acts of the
646-13   76th Legislature, Regular Session, 1999, to read as follows:
646-14                CHAPTER 1702. [PRIVATE INVESTIGATORS AND]
646-15                       PRIVATE SECURITY [AGENCIES]
646-16         (b)  Section 1702.001, Occupations Code, is amended to
646-17   conform to Section 1, Chapter 974, Acts of the 76th Legislature,
646-18   Regular Session, 1999, to read as follows:
646-19         Sec. 1702.001.  SHORT TITLE. This chapter may be cited as the
646-20   [Private Investigators and] Private Security [Agencies] Act.
646-21         (c)  Section 1, Chapter 974, Acts of the 76th Legislature,
646-22   Regular Session, 1999, is repealed.
646-23         SECTION 14.552. Section 1702.002, Occupations Code, is
646-24   amended to more accurately reflect the law from which it was
646-25   derived and to conform to Sections 2 and 5, Chapter 974, Acts of
646-26   the 76th Legislature, Regular Session, 1999, to read as follows:
646-27         Sec. 1702.002.  DEFINITIONS. In this chapter:
 647-1               (1)  "Alarm system" means an alarm system, [a] burglar
 647-2   alarm signal device, burglar alarm, robbery alarm, television
 647-3   camera, or still camera used to signal the presence of an emergency
 647-4   to which law enforcement or emergency services are expected to
 647-5   respond[, or other electrical, mechanical, or electronic device
 647-6   used:]
 647-7                     [(A)  to prevent or detect burglary, theft,
 647-8   robbery, or other losses resulting from similar acts;]
 647-9                     [(B)  to prevent or detect intrusion; or]
647-10                     [(C)  primarily to detect or summon aid for
647-11   emergencies not listed in Paragraph (A) or (B)].
647-12               (2)  ["Board" means the Texas Board of Private
647-13   Investigators and Private Security Agencies.]
647-14               [(3)]  "Branch office" means an office that is:
647-15                     (A)  identified to the public as a place from
647-16   which business is conducted, solicited, or advertised; and
647-17                     (B)  at a place other than the principal place of
647-18   business as shown in commission [board] records.
647-19               (3) [(4)]  "Branch office license" means a permit
647-20   issued by the commission [board] that entitles a person to operate
647-21   at a branch office as a security services contractor or
647-22   investigations company.
647-23               (4)  "Commission" means the Texas Commission on Private
647-24   Security.
647-25               (5)  "Commissioned security officer" means a security
647-26   officer to whom a security officer commission has been issued by
647-27   the commission [board].
 648-1               (6)  "Detection device" means an electronic device
 648-2   used[:]
 648-3                     [(A)]  as a part of a burglar or robbery alarm,
 648-4   including a control, communications device, motion detector, door
 648-5   or window switch, sound detector, vibration detector, light beam,
 648-6   pressure mat, wiring, or similar device[; or]
 648-7                     [(B)  to limit a person's access into a structure
 648-8   or gate compound, including a control, communications device,
 648-9   motion detector, door or window switch, card or proximity reader,
648-10   push-button keypad entry, gate entry device, door exit button, or
648-11   similar device].
648-12               (7)  "Extra job coordinator" means a peace officer who:
648-13                     (A)  is employed full-time by the state or a
648-14   municipality; and
648-15                     (B)  schedules other peace officers to provide
648-16   guard, patrolman, or watchman services in a private capacity who
648-17   are:
648-18                           (i)  employed full-time by the state or a
648-19   municipality; and
648-20                           (ii)  not employed by the extra job
648-21   coordinator.
648-22               (8)  "Firearm" has the meaning assigned by Section
648-23   46.01, Penal Code.
648-24               (9) [(8)]  "Insurance agent" means:
648-25                     (A)  a person licensed under Article 1.14-2 or
648-26   21.14, Insurance Code;
648-27                     (B)  a salaried, state, or special agent; or
 649-1                     (C)  a person authorized to represent an
 649-2   insurance fund or pool created by a local government under Chapter
 649-3   791, Government Code.
 649-4               (10) [(9)]  "Investigations company" means a person who
 649-5   performs the activities described by Section 1702.104.
 649-6               (11) [(10)]  "Letter of authority" means a permit
 649-7   issued by the commission [board] that entitles the security
 649-8   department of a private business or a political subdivision to
 649-9   employ a commissioned security officer.
649-10               (12) [(11)]  "License" means a permit issued by the
649-11   commission [board] that entitles a person to operate as a security
649-12   services contractor or investigations company.
649-13               (13) [(12)]  "License holder" means a person to whom
649-14   the commission [board] issues a license.
649-15               (14) [(13)]  "Manager" means an officer or supervisor
649-16   of a corporation or a general partner of a partnership who has the
649-17   experience required by Section 1702.119 to manage a security
649-18   services contractor or an investigations company.
649-19               (15) [(14)]  "Peace officer" means a person who is a
649-20   peace officer under Article 2.12, Code of Criminal Procedure.
649-21               (16)  "Person" includes an individual, firm,
649-22   association, company, partnership, corporation, nonprofit
649-23   organization, institution, or similar entity.  Section 311.005(2),
649-24   Government Code, does not apply to this subdivision.
649-25               (17) [(15)]  "Personal protection officer
649-26   authorization" means a permit issued by the commission [board] that
649-27   entitles an individual to act as a personal protection officer.
 650-1               (18) [(16)]  "Private investigator" means an individual
 650-2   who performs one or more services described by Section 1702.104.
 650-3               (19) [(17)]  "Registrant" means an individual who has
 650-4   registered with the commission [board] under Section 1702.221.
 650-5               (20) [(18)]  "Registration" means a permit issued by
 650-6   the commission [board] to an individual described by Section
 650-7   1702.221.
 650-8               (21) [(19)]  "Security officer commission" means an
 650-9   authorization issued by the commission [board] that entitles a
650-10   security officer to carry a firearm.
650-11               (22) [(20)]  "Security services contractor" means a
650-12   person who performs the activities described by Section 1702.102.
650-13         SECTION 14.553. (a)  Section 1702.003, Occupations Code, is
650-14   amended to conform to Section 4, Chapter 974, Acts of the 76th
650-15   Legislature, Regular Session, 1999, to read as follows:
650-16         Sec. 1702.003.  APPLICATION OF SUNSET ACT. The Texas
650-17   Commission on [Board  of Private Investigators and] Private
650-18   Security [Agencies] is subject to Chapter 325, Government Code
650-19   (Texas Sunset Act). Unless continued in existence as provided by
650-20   that chapter, the commission [board] is abolished and this chapter
650-21   expires September 1, 2009 [1999].
650-22         (b)  Section 4, Chapter 974, Acts of the 76th Legislature,
650-23   Regular Session, 1999, is repealed.
650-24         SECTION 14.554. Section 1702.004, Occupations Code, is
650-25   amended to conform to Section 5, Chapter 974, Acts of the 76th
650-26   Legislature, Regular Session, 1999, to read as follows:
650-27         Sec. 1702.004.  GENERAL SCOPE OF REGULATION. The commission
 651-1   [board], in addition to performing duties required by other law or
 651-2   exercising powers granted by other law:
 651-3               (1)  licenses investigations companies and security
 651-4   services contractors;
 651-5               (2)  issues commissions to certain security officers;
 651-6               (3)  issues authorizations to certain security officers
 651-7   engaged in the personal protection of individuals;
 651-8               (4)  registers:
 651-9                     (A)  certain individuals connected with a license
651-10   holder; and
651-11                     (B)  certain individuals employed in a field
651-12   connected to private investigation or private security; and
651-13               (5)  regulates license holders, security officers, and
651-14   registrants under this chapter.
651-15         SECTION 14.555. The heading of Subchapter B, Chapter 1702,
651-16   Occupations Code, is amended to conform to Section 5, Chapter 974,
651-17   Acts of the 76th Legislature, Regular Session, 1999, to read as
651-18   follows:
651-19           SUBCHAPTER B. TEXAS COMMISSION ON [BOARD OF PRIVATE
651-20             INVESTIGATORS AND] PRIVATE SECURITY [AGENCIES]
651-21         SECTION 14.556. Section 1702.021, Occupations Code, is
651-22   amended to conform to Section 5, Chapter 974, Acts of the 76th
651-23   Legislature, Regular Session, 1999, to read as follows:
651-24         Sec. 1702.021.  COMMISSION [BOARD] MEMBERSHIP. (a)  The Texas
651-25   Commission on [Board of Private Investigators and] Private Security
651-26   [Agencies] consists of nine [six] members appointed by the governor
651-27   with the advice and consent of the senate as follows:
 652-1               (1)  five [three] public members, each of whom is a
 652-2   citizen of the United States;
 652-3               (2)  one member [two members] who:
 652-4                     (A)  is [are] licensed under this chapter as a
 652-5   private investigator;
 652-6                     (B)  [, each of whom:]
 652-7                     [(A)]  has been engaged  as a private
 652-8   investigator for at least the five [consecutive] years preceding
 652-9   appointment [as a private investigator or security services
652-10   contractor]; and
652-11                     (C) [(B)]  is not employed by a person who
652-12   employs another member of the commission [board]; [and]
652-13               (3)  one member who is licensed under this chapter as
652-14   an alarm systems company and who:
652-15                     (A)  has been engaged as an alarm systems company
652-16   for at least the five years preceding appointment; and
652-17                     (B)  is not employed by a person who employs
652-18   another member of the commission;
652-19               (4)  one member who:
652-20                     (A)  is licensed under this chapter as the owner
652-21   or operator of a guard company;
652-22                     (B)  has been the owner or operator of the guard
652-23   company [operated] for at least the five [consecutive] years
652-24   preceding appointment [as a guard company]; and
652-25                     (C)  is not employed by a person who employs
652-26   another member of the commission; and
652-27               (5)  one member who:
 653-1                     (A)  holds a license, security officer
 653-2   commission, or registration under this chapter;
 653-3                     (B)  has been engaged in activity regulated by
 653-4   the commission under this chapter for at least the five years
 653-5   preceding appointment; and
 653-6                     (C)  is not employed by a person who employs
 653-7   another member of the commission [board].
 653-8         (b)  Appointments to the commission [board] shall be made
 653-9   without regard to the race, [creed,] color, disability, sex,
653-10   religion, age, or national origin of the appointee.
653-11         (c)  On presentation by a commission [board] member of the
653-12   constitutional oath taken by the member, together with the
653-13   certificate of appointment, the secretary of state shall issue a
653-14   commission to the member as evidence of the member's authority to
653-15   act as a commission [board] member.
653-16         SECTION 14.557. Section 1702.022, Occupations Code, is
653-17   amended to conform to Sections 5, 6, 7, and 55(1), Chapter 974,
653-18   Acts of the 76th Legislature, Regular Session, 1999, to read as
653-19   follows:
653-20         Sec. 1702.022.  EX OFFICIO COMMISSION MEMBER [BOARD MEMBERS].
653-21   (a)  The director of the Texas Department of Public Safety serves
653-22   as an [and the attorney general are] ex officio member [members] of
653-23   the commission [board] during the director's term [their terms] of
653-24   office and has the same powers and [shall perform the] duties as
653-25   other commission [required of board] members.
653-26         (b)  The [attorney general and the] director of the Texas
653-27   Department of Public Safety may delegate to a personal
 654-1   representative from the department [their respective offices] the
 654-2   [authority and] duty to represent the director [them] on the
 654-3   commission [board].
 654-4         [(c)  The designated representative may exercise the powers
 654-5   and duties of the ex officio board member while performing official
 654-6   board business, but the member making the designation is
 654-7   responsible for the representative's acts and decisions.]
 654-8         SECTION 14.558. Section 1702.023, Occupations Code, is
 654-9   amended to conform to Section 5, Chapter 974, Acts of the 76th
654-10   Legislature, Regular Session, 1999, to read as follows:
654-11         Sec. 1702.023.  ELIGIBILITY OF PUBLIC MEMBERS. The
654-12   commission's public members must be representatives of the general
654-13   public.  A person may not be [is not eligible for appointment as] a
654-14   public member of the commission if the person or the person's
654-15   spouse:
654-16               (1)  is registered, commissioned, certified, or
654-17   licensed by a [an occupational] regulatory agency in the field of
654-18   private investigations or private security;
654-19               (2)  is employed by or participates in the management
654-20   of a business entity or other organization regulated by or
654-21   receiving money from the commission [related to the field of
654-22   private security]; [or]
654-23               (3)  owns or controls, directly or indirectly, more
654-24   than a 10 percent [has, other than as a consumer, a financial]
654-25   interest in a business entity or other organization regulated by or
654-26   receiving money from the commission; or
654-27               (4)  uses or receives a substantial amount of tangible
 655-1   goods, services, or money from the commission  other than
 655-2   compensation or reimbursement authorized by law for commission
 655-3   membership, attendance, or expenses [related to the field of
 655-4   private security].
 655-5         SECTION 14.559. Section 1702.024, Occupations Code, is
 655-6   amended to conform to Sections 5 and 6, Chapter 974, Acts of the
 655-7   76th Legislature, Regular Session, 1999, to read as follows:
 655-8         Sec. 1702.024.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)  In
 655-9   this section, "Texas trade association" means a [nonprofit,]
655-10   cooperative[,] and voluntarily joined association of business or
655-11   professional competitors in this state designed to assist its
655-12   members and its industry or profession in dealing with mutual
655-13   business or professional problems and in promoting their common
655-14   interests.
655-15         (b)  A person may not be a commission member and may not be a
655-16   commission employee employed in a "bona fide executive,
655-17   administrative, or professional capacity," as that phrase is used
655-18   for purposes of establishing an exemption to the overtime
655-19   provisions of the federal Fair Labor Standards Act of 1938 (29
655-20   U.S.C. Section 201 et seq.), and its subsequent amendments, if:
655-21               (1)  the person is [or employee of the board  may not
655-22   be] an officer, employee, or paid consultant of a Texas trade
655-23   association in the field of private investigation or private
655-24   security; or
655-25               (2)  the person's [industry.]
655-26         [(c)  A person who is the] spouse is [of] an officer, manager
655-27   [employee], or paid consultant of a Texas trade association in the
 656-1   field of private investigation or private security [on behalf of a
 656-2   profession related to the operation of the board may not be a board
 656-3   member and may not be an employee of the board who is compensated
 656-4   at or above the amount prescribed by the General Appropriations Act
 656-5   for step 1, salary group A17, of the position classification salary
 656-6   schedule].
 656-7         (c) [(d)]  A person may not be [serve as] a commission
 656-8   [board] member or act as general counsel to the commission or
 656-9   agency [board] if the person is required to register as a lobbyist
656-10   under Chapter 305, Government Code, because of the person's
656-11   activities for compensation on behalf of a profession related to
656-12   the operation of the agency [board].
656-13         SECTION 14.560. (a)  Section 1702.025, Occupations Code, is
656-14   amended to conform to Sections 5 and 7, Chapter 974, Acts of the
656-15   76th Legislature, Regular Session, 1999, to read as follows:
656-16         Sec. 1702.025.  TERMS; VACANCIES. (a)  The appointed
656-17   commission [board] members serve staggered six-year terms, with the
656-18   terms of three [two] appointed members expiring on January 31 of
656-19   each odd-numbered year.
656-20         (b)  If a vacancy occurs during the term of an appointed
656-21   commission [board] member, the governor shall appoint a new member
656-22   to fill the unexpired term.
656-23         (b)  Section 7, Chapter 974, Acts of the 76th Legislature,
656-24   Regular Session, 1999, is repealed.
656-25         SECTION 14.561. (a)  Section 1702.026, Occupations Code, is
656-26   amended to conform to Sections 5 and 15, Chapter 974, Acts of the
656-27   76th Legislature, Regular Session, 1999, to read as follows:
 657-1         Sec. 1702.026.  OFFICERS. (a)  The governor shall designate
 657-2   one commission [board] member as presiding officer to serve in that
 657-3   capacity at the will of the governor.  The governor shall designate
 657-4   the presiding officer without regard to race, creed, color,
 657-5   disability, sex, religion, age, or national origin.
 657-6         (b)  The commission [board], including the representative of
 657-7   the director of the Texas Department of Public Safety if one is
 657-8   designated, shall elect from among its members an assistant
 657-9   presiding officer and a secretary to serve two-year terms beginning
657-10   on September 1 of each odd-numbered year.
657-11         (c)  The presiding officer of the commission [board] or, in
657-12   the absence of [when] the presiding officer [is absent], the
657-13   assistant presiding officer shall preside at each commission
657-14   [board] meeting and perform the other duties prescribed by this
657-15   chapter.
657-16         (b)  Section 15, Chapter 974, Acts of the 76th Legislature,
657-17   Regular Session, 1999, is repealed.
657-18         SECTION 14.562. Section 1702.027, Occupations Code, is
657-19   amended to conform to Section 5, Chapter 974, Acts of the 76th
657-20   Legislature, Regular Session, 1999, to read as follows:
657-21         Sec. 1702.027.  GROUNDS FOR REMOVAL. (a)  It is a ground for
657-22   removal from the commission [board] that a member:
657-23               (1)  does not have the qualifications required by
657-24   Section 1702.021 [or 1702.023 for appointment to the board] at the
657-25   time of taking office [appointment];
657-26               (2)  does not maintain the qualifications required by
657-27   Section 1702.021 [or 1702.023 for appointment to the board] during
 658-1   service on the commission [board];
 658-2               (3)  is ineligible for membership under [violates a
 658-3   prohibition established by] Section 1702.023 or 1702.024;
 658-4               (4)  cannot, because of illness or disability,
 658-5   discharge the member's duties for a substantial part of the
 658-6   member's term; or
 658-7               (5)  is absent from more than [at least] half of the
 658-8   regularly scheduled commission [board] meetings that the member is
 658-9   eligible to attend during [held in] a calendar year without an
658-10   excuse approved by a majority vote of the commission[, excluding
658-11   meetings held when the person was not a board member].
658-12         (b)  The validity of an action of the commission [board] is
658-13   not affected by the fact that it is [was] taken when a ground for
658-14   removal of a commission [board] member exists [existed].
658-15         (c)  If the director has knowledge that a potential ground
658-16   for removal exists, the director shall notify the presiding officer
658-17   of the commission [board] of the potential ground. The presiding
658-18   officer shall then notify the governor and the attorney general
658-19   that a potential ground for removal exists.  If the potential
658-20   ground for removal involves the presiding officer, the director
658-21   shall notify the next highest ranking officer of the commission,
658-22   who shall then notify the governor and the attorney general that a
658-23   potential ground for removal exists.
658-24         SECTION 14.563. Section 1702.028(a), Occupations Code, is
658-25   amended to conform to Section 5, Chapter 974, Acts of the 76th
658-26   Legislature, Regular Session, 1999, to read as follows:
658-27         (a)  A commission [board] member is entitled to a per diem as
 659-1   set by legislative appropriation for each day the member engages in
 659-2   the business of the commission [board].
 659-3         SECTION 14.564. Section 1702.029, Occupations Code, is
 659-4   amended to conform to Section 5, Chapter 974, Acts of the 76th
 659-5   Legislature, Regular Session, 1999, to read as follows:
 659-6         Sec. 1702.029.  MEETINGS. The commission [board] shall meet
 659-7   at regular intervals to be decided by the commission [board].
 659-8         SECTION 14.565. (a)  Subchapter B, Chapter 1702, Occupations
 659-9   Code, is amended to conform to Sections 5 and 6, Chapter 974, Acts
659-10   of the 76th Legislature, Regular Session, 1999, by adding Section
659-11   1702.030 to read as follows:
659-12         Sec. 1702.030.  TRAINING. (a)  A person who is appointed to
659-13   and qualifies for office as a commission member may not vote,
659-14   deliberate, or be counted as a member in attendance at a commission
659-15   meeting until the person completes a training program that complies
659-16   with this section.
659-17         (b)  The training program must provide the person with
659-18   information regarding:
659-19               (1)  this chapter;
659-20               (2)  the programs operated by the commission;
659-21               (3)  the role and functions of the commission;
659-22               (4)  the rules of the commission, with an emphasis on
659-23   the rules that relate to disciplinary and investigatory authority;
659-24               (5)  the current budget for the commission;
659-25               (6)  the results of the most recent formal audit of the
659-26   commission;
659-27               (7)  the requirements of:
 660-1                     (A)  the open meetings law, Chapter 551,
 660-2   Government Code;
 660-3                     (B)  the public information law, Chapter 552,
 660-4   Government Code;
 660-5                     (C)  the administrative procedure law, Chapter
 660-6   2001, Government Code; and
 660-7                     (D)  other laws relating to public officials,
 660-8   including conflict of interest laws; and
 660-9               (8)  any applicable ethics policies adopted by the
660-10   commission or the Texas Ethics Commission.
660-11         (c)  A person appointed to the commission  is entitled to
660-12   reimbursement, as provided by the General Appropriations Act, for
660-13   the travel expenses incurred in attending the training program
660-14   regardless of whether the attendance at the program occurs before
660-15   or after the person qualifies for office.
660-16         (b)  Section 6, Chapter 974, Acts of the 76th Legislature,
660-17   Regular Session, 1999, is repealed.
660-18         SECTION 14.566. Section 1702.041, Occupations Code, is
660-19   amended to conform to Section 5, Chapter 974, Acts of the 76th
660-20   Legislature, Regular Session, 1999, to read as follows:
660-21         Sec. 1702.041.  DIRECTOR. (a)  The director is the chief
660-22   administrator of the commission [board]. The director shall perform
660-23   duties as prescribed by the commission [board].
660-24         (b)  The director is a full-time employee of the commission
660-25   [board].  A commission [board] member may not serve as director.
660-26         SECTION 14.567. Section 1702.042, Occupations Code, is
660-27   amended to conform to Section 5, Chapter 974, Acts of the 76th
 661-1   Legislature, Regular Session, 1999, to read as follows:
 661-2         Sec. 1702.042.  PERSONNEL; CONFLICT OF INTEREST. An employee
 661-3   of the commission [board] may not:
 661-4               (1)  have a financial or business interest, contingent
 661-5   or otherwise, in a security services contractor or investigations
 661-6   company; or
 661-7               (2)  be licensed under this chapter.
 661-8         SECTION 14.568. Section 1702.043, Occupations Code, is
 661-9   amended to conform to Sections 5 and 8, Chapter 974, Acts of the
661-10   76th Legislature, Regular Session, 1999, to read as follows:
661-11         Sec. 1702.043.  DIVISION OF RESPONSIBILITIES. The commission
661-12   [board] shall develop and implement [adopt] policies that clearly
661-13   separate [define] the policy-making [respective] responsibilities
661-14   of the commission [board] and the management responsibilities of
661-15   the director and staff of the commission [board].
661-16         SECTION 14.569. Section 1702.044, Occupations Code, is
661-17   amended to conform to Sections 5 and 8, Chapter 974, Acts of the
661-18   76th Legislature, Regular Session, 1999, to read as follows:
661-19         Sec. 1702.044.  QUALIFICATIONS AND STANDARDS OF CONDUCT
661-20   INFORMATION. The director or the director's designee [board] shall
661-21   provide to commission members and to agency employees, as often as
661-22   necessary, [to its members and employees] information regarding the
661-23   requirements for office or employment under this chapter, including
661-24   information regarding a person's [their:]
661-25               [(1)  qualifications for office or employment under
661-26   this chapter; and]
661-27               [(2)]  responsibilities under applicable laws relating
 662-1   to standards of conduct for state officers or employees.
 662-2         SECTION 14.570. Section 1702.045(b), Occupations Code, is
 662-3   amended to conform to Section 5, Chapter 974, Acts of the 76th
 662-4   Legislature, Regular Session, 1999, to read as follows:
 662-5         (b)  The director or the director's designee shall develop a
 662-6   system of annual performance evaluations. All merit pay for
 662-7   commission [board] employees must be based on the system
 662-8   established under this subsection.
 662-9         SECTION 14.571. (a)  Section 1702.046, Occupations Code, is
662-10   amended to conform to Sections 5 and 9, Chapter 974, Acts of the
662-11   76th Legislature, Regular Session, 1999, to read as follows:
662-12         Sec. 1702.046.  EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT.
662-13   (a)  The director or the director's designee shall prepare and
662-14   maintain a written policy statement that implements  [to ensure
662-15   implementation of] an equal employment opportunity program to
662-16   ensure that [under which] all personnel decisions [transactions]
662-17   are made without regard to race, creed, color, disability, sex,
662-18   religion, age, or national origin. The policy statement must
662-19   include:
662-20               (1)  personnel policies, including policies related to
662-21   recruitment, evaluation, selection, [appointment,] training, and
662-22   promotion of personnel, that show the intent of the commission to
662-23   avoid the unlawful employment practices described by Chapter 21,
662-24   Labor Code; and
662-25               (2)  an [a comprehensive] analysis of the extent to
662-26   which the composition of the commission's personnel is in
662-27   accordance with [board's workforce that meets] federal and state
 663-1   law and a description of reasonable methods to achieve compliance
 663-2   with federal and state law [guidelines;]
 663-3               [(3)  procedures by which a determination can be made
 663-4   of significant underuse in the board's workforce of all persons for
 663-5   whom federal or state guidelines encourage a more equitable
 663-6   balance; and]
 663-7               [(4)  reasonable methods to appropriately address those
 663-8   areas of significant underuse].
 663-9         (b)  The policy statement must:
663-10               (1)  be reviewed by the state Commission on Human
663-11   Rights for compliance with Subsection (a)(1) [cover an annual
663-12   period];
663-13               (2)  be updated at least annually; and
663-14               (3)  be filed with the governor.
663-15         [(c)  The governor shall deliver a biennial report to the
663-16   legislature based on the information received under Subsection (b).
663-17   The report may be made separately or as a part of other biennial
663-18   reports made to the legislature.]
663-19         (b)  Section 9, Chapter 974, Acts of the 76th Legislature,
663-20   Regular Session, 1999, is repealed.
663-21         SECTION 14.572. The heading of Subchapter D, Chapter 1702,
663-22   Occupations Code, is amended to conform to Section 5, Chapter 974,
663-23   Acts of the 76th Legislature, Regular Session, 1999, to read as
663-24   follows:
663-25          SUBCHAPTER D. POWERS AND DUTIES OF COMMISSION [BOARD]
663-26         SECTION 14.573. (a)  Section 1702.061, Occupations Code, is
663-27   amended to conform to  Sections 5, 8, and 10, Chapter 974, Acts of
 664-1   the 76th Legislature, Regular Session, 1999, to read as follows:
 664-2         Sec. 1702.061.  GENERAL POWERS AND DUTIES OF COMMISSION
 664-3   [BOARD]. (a)  The Texas Commission on [Board of Private
 664-4   Investigators and] Private Security [Agencies] shall perform the
 664-5   functions and duties provided by this chapter.
 664-6         (b)  The commission  shall adopt rules and general policies
 664-7   to guide the agency in the administration of this chapter.
 664-8         (c)  The rules and policies adopted by the commission under
 664-9   Subsection (b) must be consistent with this chapter and other
664-10   commission rules adopted under this chapter and with any other
664-11   applicable law, state rule, or federal regulation.
664-12         (d)  The commission [board] has the powers and duties to:
664-13               (1)  determine the qualifications of license holders,
664-14   registrants, and commissioned security officers;
664-15               (2)  investigate alleged violations of this chapter and
664-16   of commission [board] rules;
664-17               (3)  adopt rules necessary to implement this chapter;
664-18   and
664-19               (4)  establish and enforce standards governing the
664-20   safety and conduct of each person licensed, registered, or
664-21   commissioned under this chapter.
664-22         (e) [(c)]  The commission [board] shall have a seal in the
664-23   form prescribed by the commission [board].
664-24         (f)  The commission may commission investigators who are
664-25   employed full-time by the commission as peace officers for the
664-26   limited purpose of assisting the commission in investigating
664-27   alleged violations of this chapter and of commission rules.
 665-1         (b)  Sections 8 and 10, Chapter 974, Acts of the 76th
 665-2   Legislature, Regular Session, 1999, are repealed.
 665-3         SECTION 14.574. Section 1702.062, Occupations Code, is
 665-4   amended to conform to Sections 5 and 21, Chapter 974, Acts of the
 665-5   76th Legislature, Regular Session, 1999, to read as follows:
 665-6         Sec. 1702.062.  FEES. (a)  The commission [If the General
 665-7   Appropriations Act does not specify the amount of a fee, the board]
 665-8   by rule shall establish reasonable and necessary fees that produce
 665-9   sufficient revenue to administer this chapter. The fees may not
665-10   produce unnecessary fund balances and may not exceed the following
665-11   amounts:
665-12         Class A license                                   $250 [$225]
665-13         (original and renewal)
665-14         Class B license                                   $300 [$225]
665-15         (original and renewal)
665-16         Class C license                                   $440 [$340]
665-17         (original and renewal)
665-18         Reinstate suspended license                              $150
665-19         Assignment of license                                    $150
665-20         Change name of license                                   $ 75
665-21         Delinquency fee                                         _____
665-22         Branch office certificate and renewal             $200 [$150]
665-23         Registration fee for private investigator, manager,
665-24            branch office manager, and alarm systems installer    $ 20
665-25         (original and renewal)
665-26         Registration fee for noncommissioned security                
665-27            officer                                        $ 25 [$ 35]
 666-1         (original and renewal)
 666-2         Registration fee for security salesperson                $ 20
 666-3         Registration fee for alarm systems monitor               $ 20
 666-4         Registration fee for dog trainer                         $ 20
 666-5         Registration fee for owner, officer, partner, or
 666-6            shareholder of a license holder                $ 50 [$ 20]
 666-7         Registration fee for security consultant                 $ 55
 666-8         Security officer commission fee                   $ 50 [$ 35]
 666-9         (original and renewal)
666-10         School instructor fee                                    $100
666-11         (original and renewal)
666-12         School approval fee                                      $250
666-13         (original and renewal)
666-14         Letter of authority fee for private business
666-15            and political subdivision                             $300
666-16         Letter of authority renewal fee for private
666-17            business and political subdivision                    $225
666-18         [(original and renewal)]
666-19         FBI fingerprint check                                    $ 25
666-20         Duplicate pocket card                                    $ 10
666-21         Employee information update fee                          $ 15
666-22         Burglar alarm sellers renewal fee                        $ 25
666-23         Personal protection officer authorization                $ 50
666-24         (b)  In addition to other fees established under this
666-25   chapter, the commission [board] may charge a fee each time the
666-26   commission [board] requires a person regulated under this chapter
666-27   to resubmit a set of fingerprints for processing by the commission
 667-1   [board] during the application process for a license, registration,
 667-2   or commission. The commission [board] shall set the fee in an
 667-3   amount that is reasonable and necessary to cover the commission's
 667-4   [board's] administrative expenses related to processing the
 667-5   fingerprints.
 667-6         SECTION 14.575. The heading of Section 1702.063, Occupations
 667-7   Code, is amended to conform to Section 5, Chapter 974, Acts of the
 667-8   76th Legislature, Regular Session, 1999, to read as follows:
 667-9         Sec. 1702.063.  COMMISSION [BOARD] USE OF FINES.
667-10         SECTION 14.576. Section 1702.064, Occupations Code, is
667-11   amended to conform to Section 5, Chapter 974, Acts of the 76th
667-12   Legislature, Regular Session, 1999, to read as follows:
667-13         Sec. 1702.064.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
667-14   BIDDING. (a)  The commission [board] may not adopt rules
667-15   restricting advertising or competitive bidding by a person
667-16   regulated by the commission [board] except to prohibit false,
667-17   misleading, or deceptive practices by the person.
667-18         (b)  The commission [board] may not include in its rules to
667-19   prohibit false, misleading, or deceptive practices by a person
667-20   regulated by the commission [board] a rule that:
667-21               (1)  restricts the person's use of any medium for
667-22   advertising;
667-23               (2)  restricts the person's personal appearance or use
667-24   of the person's personal voice in an advertisement;
667-25               (3)  relates to the size or duration of an
667-26   advertisement by the person; or
667-27               (4)  restricts the person's advertisement under a trade
 668-1   name.
 668-2         SECTION 14.577. (a)  Subchapter D, Chapter 1702, Occupations
 668-3   Code, is amended to conform to Sections 5 and 22, Chapter 974, Acts
 668-4   of the 76th Legislature, Regular Session, 1999, by adding Section
 668-5   1702.0645 to read as follows:
 668-6         Sec. 1702.0645.  PAYMENT OF FEES AND FINES. (a)  The
 668-7   commission may adopt rules regarding the method of payment of a fee
 668-8   or a fine assessed under this chapter.
 668-9         (b)  Rules adopted under this section may:
668-10               (1)  authorize the use of electronic funds transfer or
668-11   a valid credit card issued by a financial institution chartered by
668-12   a state or the federal government or by a nationally recognized
668-13   credit organization approved by the commission; and
668-14               (2)  require the payment of a discount or a reasonable
668-15   service charge for a credit card payment in addition to the fee or
668-16   the fine.
668-17         (b)  Section 22, Chapter 974,  Acts of the 76th Legislature,
668-18   Regular Session, 1999, is repealed.
668-19         SECTION 14.578. Section 1702.065, Occupations Code, is
668-20   amended to conform to Section 5, Chapter 974, Acts of the 76th
668-21   Legislature, Regular Session, 1999, to read as follows:
668-22         Sec. 1702.065.  POWERS AND DUTIES RELATING TO ALARM SYSTEMS
668-23   INSTALLERS; CERTIFICATES OF INSTALLATION. (a)  The commission
668-24   [board] may interpret and issue an opinion resolving a question
668-25   concerning the eligibility of an alarm system installation to
668-26   comply with Article 5.33A, Insurance Code. A commission [board]
668-27   interpretation or opinion relating to general conditions or an
 669-1   individual installation is conclusive.
 669-2         (b)  The commission [board] may authorize an alarm systems
 669-3   company to issue a certificate of installation showing that an
 669-4   installation complies with Article 5.33A, Insurance Code.  An
 669-5   inspection otherwise required by the Insurance Code is not required
 669-6   if a certificate is issued under this section. The certificate must
 669-7   be furnished to the insurer, and the insurer shall determine
 669-8   whether the person's property is in compliance with Article 5.33A,
 669-9   Insurance Code, taking into consideration the installer's
669-10   certificate and information from any other investigation the
669-11   insurer determines to be appropriate.
669-12         SECTION 14.579. Section 1702.066, Occupations Code, is
669-13   amended to conform to Section 5, Chapter 974, Acts of the 76th
669-14   Legislature, Regular Session, 1999, to read as follows:
669-15         Sec. 1702.066.  SERVICE OF PROCESS; SERVICE OF DOCUMENTS ON
669-16   COMMISSION [BOARD]. Legal process and documents required by law to
669-17   be served on or filed with the commission [board] must be served on
669-18   or filed with the director at the designated office of the
669-19   commission [board].
669-20         SECTION 14.580. Section 1702.067, Occupations Code, is
669-21   amended to conform to Section 5, Chapter 974, Acts of the 76th
669-22   Legislature, Regular Session, 1999, to read as follows:
669-23         Sec. 1702.067.  COMMISSION [BOARD] RECORDS; EVIDENCE. An
669-24   official record of the commission [board] or an affidavit by the
669-25   director as to the content of the record is prima facie evidence of
669-26   a matter required to be kept by the commission [board].
669-27         SECTION 14.581. Section 1702.068, Occupations Code, is
 670-1   amended to conform to Section 5, Chapter 974, Acts of the 76th
 670-2   Legislature, Regular Session, 1999, to read as follows:
 670-3         Sec. 1702.068.  APPEAL BOND NOT REQUIRED. The commission
 670-4   [board] is not required to give an appeal bond in any cause arising
 670-5   under this chapter.
 670-6         SECTION 14.582. Section 1702.069, Occupations Code, is
 670-7   amended to conform to Section 5, Chapter 974, Acts of the 76th
 670-8   Legislature, Regular Session, 1999, to read as follows:
 670-9         Sec. 1702.069.  ANNUAL REPORT.  The commission [board] shall
670-10   file annually with the governor and the presiding officer of each
670-11   house of the legislature a complete and detailed written report
670-12   accounting for all money received and disbursed by the commission
670-13   [board] in the preceding fiscal year.  The form of the annual
670-14   report and the reporting time are as provided in the General
670-15   Appropriations Act.
670-16         SECTION 14.583. Section 1702.081, Occupations Code, is
670-17   amended to conform to Section 5, Chapter 974, Acts of the 76th
670-18   Legislature, Regular Session, 1999, to read as follows:
670-19         Sec. 1702.081.  PUBLIC INTEREST INFORMATION.  (a)  The
670-20   commission [board] shall prepare information of interest to
670-21   consumers or recipients of services regulated under this chapter
670-22   describing the commission's [board's] regulatory functions and the
670-23   procedures by which complaints are filed with and resolved by the
670-24   commission [board].
670-25         (b)  The commission [board] shall make the information
670-26   available to the public and appropriate state agencies.
670-27         SECTION 14.584. (a)  Section 1702.082, Occupations Code, is
 671-1   amended to conform to Sections 5 and 35, Chapter 974, Acts of the
 671-2   76th Legislature, Regular Session, 1999, to read as follows:
 671-3         Sec. 1702.082.  COMPLAINTS. (a)  The commission [board] by
 671-4   rule shall establish methods by which consumers and service
 671-5   recipients are notified of the name, mailing address, and telephone
 671-6   number of the commission [board] for the purpose of directing
 671-7   complaints to the commission [board].  The commission [board] may
 671-8   provide for that notice:
 671-9               (1)  on each registration form, application, or written
671-10   contract for services of a person regulated under this chapter;
671-11               (2)  on a sign prominently displayed in the place of
671-12   business of each person regulated under this chapter; or
671-13               (3)  in a bill for services provided by a person
671-14   regulated under this chapter.
671-15         (b)  The commission [board] shall maintain a file on each
671-16   written complaint filed with the commission.  The file must
671-17   include:
671-18               (1)  the name of the person who filed the complaint;
671-19               (2)  the date the complaint is received by the
671-20   commission;
671-21               (3)  the subject matter of the complaint;
671-22               (4)  the name of each person contacted in relation to
671-23   the complaint;
671-24               (5)  a summary of the results of the review or
671-25   investigation of the complaint; and
671-26               (6)  an explanation of the reason the file was closed,
671-27   if the agency closed the file without taking action other than to
 672-1   investigate the complaint [keep an information file about each
 672-2   complaint filed with the board  relating to a person regulated by
 672-3   the board].
 672-4         (c)  The commission  shall provide to the person filing the
 672-5   complaint a copy of the commission's policies and procedures
 672-6   relating to complaint investigation and resolution.
 672-7         (d)  Unless it would jeopardize an undercover investigation,
 672-8   the commission shall provide to each person who is a subject of the
 672-9   complaint a copy of the commission's policies and procedures
672-10   relating to complaint investigation and resolution.
672-11         (e)  The commission, at least quarterly until final
672-12   disposition of the complaint, shall notify the person filing the
672-13   complaint and each person who is a subject of the complaint of the
672-14   status of the investigation [If a written complaint is filed with
672-15   the board relating to a person regulated by the board, the board,
672-16   at least quarterly and until final disposition of the complaint,
672-17   shall notify the parties to the complaint of the status of the
672-18   complaint] unless the notice would jeopardize an undercover
672-19   investigation.
672-20         (b)  Section 35, Chapter 974, Acts of the 76th Legislature,
672-21   Regular Session, 1999, is repealed.
672-22         SECTION 14.585. Section 1702.083, Occupations Code, is
672-23   amended to conform to Sections 5 and 11, Chapter 974, Acts of the
672-24   76th Legislature, Regular Session, 1999, to read as follows:
672-25         Sec. 1702.083.  PUBLIC PARTICIPATION.  The commission [board]
672-26   shall develop and implement [adopt] policies that provide the
672-27   public with a reasonable opportunity to appear before the
 673-1   commission [board] and to speak on any issue under the commission's
 673-2   [board's] jurisdiction.
 673-3         SECTION 14.586. (a)  Subchapter E, Chapter 1702, Occupations
 673-4   Code, is amended to conform to Sections 5 and 16, Chapter 974, Acts
 673-5   of the 76th Legislature, Regular Session, 1999, by adding Section
 673-6   1702.084 to read as follows:
 673-7         Sec. 1702.084.  PUBLIC ACCESS TO CERTAIN RECORDS OF
 673-8   DISCIPLINARY ACTIONS. (a)  The commission shall make available to
 673-9   the public through a toll-free telephone number, Internet website,
673-10   or other easily accessible medium determined by the commission the
673-11   following information relating to a disciplinary action taken
673-12   during the preceding three years regarding a person regulated by
673-13   the commission:
673-14               (1)  the identity of the person;
673-15               (2)  the nature of the complaint that was the basis of
673-16   the disciplinary action taken against the person; and
673-17               (3)  the disciplinary action taken by the commission.
673-18         (b)  In providing the information, the commission shall
673-19   present the information in an impartial manner, use language that
673-20   is commonly understood, and, if possible, avoid jargon specific to
673-21   the security industry.
673-22         (c)  The commission shall update the information on a monthly
673-23   basis.
673-24         (d)  The commission shall maintain the confidentiality of
673-25   information regarding the identification of a complainant.
673-26         (b)  Section 16, Chapter 974, Acts of the 76th Legislature,
673-27   Regular Session, 1999, is repealed.
 674-1         SECTION 14.587. Sections 1702.103(b), (c), and (d),
 674-2   Occupations Code, are amended to conform to Section 5, Chapter 974,
 674-3   Acts of the 76th Legislature, Regular Session, 1999, to read as
 674-4   follows:
 674-5         (b)  A Class A, B, or C license does not authorize the
 674-6   license holder to perform a service for which the license holder
 674-7   has not qualified.  A person may not engage in an operation outside
 674-8   the scope of that person's license. The commission [board] shall
 674-9   indicate on the license the services the license holder is
674-10   authorized to perform. The license holder may not perform a service
674-11   unless it is indicated on the license.
674-12         (c)  A license is not assignable unless the assignment is
674-13   approved in advance by the commission [board].
674-14         (d)  The commission [board] shall prescribe by rule the
674-15   procedure under which a license may be terminated.
674-16         SECTION 14.588. Section 1702.108, Occupations Code, is
674-17   amended to conform to Section 2, Chapter 974, Acts of the 76th
674-18   Legislature, Regular Session, 1999, to read as follows:
674-19         Sec. 1702.108.  GUARD COMPANY.  A person acts as a guard
674-20   company for the purposes of this chapter if the person employs an
674-21   individual described by Section 1702.323(d) or engages in the
674-22   business of or undertakes to provide a private watchman, guard, or
674-23   street patrol service on a contractual basis for another person to:
674-24               (1)  prevent entry, larceny, vandalism, abuse, fire, or
674-25   trespass on private property;
674-26               (2)  prevent, observe, or detect unauthorized activity
674-27   on private property;
 675-1               (3)  control, regulate, or direct the movement of the
 675-2   public, whether by vehicle or otherwise, only to the extent and for
 675-3   the time directly and specifically required to ensure the
 675-4   protection of property;
 675-5               (4)  protect an individual from bodily harm including
 675-6   through the use of a personal protection officer; or
 675-7               (5)  perform a function similar to a function listed in
 675-8   this section.
 675-9         SECTION 14.589. Section 1702.110, Occupations Code, is
675-10   amended to conform to Sections 5 and 19, Chapter 974, Acts of the
675-11   76th Legislature, Regular Session, 1999, to read as follows:
675-12         Sec. 1702.110.  APPLICATION FOR LICENSE.  An application for
675-13   a license under this chapter must be in the form prescribed by the
675-14   commission [board] and include:
675-15               (1)  the full name and business address of the
675-16   applicant;
675-17               (2)  the name under which the applicant intends to do
675-18   business;
675-19               (3)  a statement as to the general nature of the
675-20   business in which the applicant intends to engage;
675-21               (4)  a statement as to the classification for which the
675-22   applicant requests qualification;
675-23               (5)  if the applicant is an entity other than an
675-24   individual, the full name and residence address of each partner,
675-25   officer, and director of the applicant, and of the applicant's
675-26   manager;
675-27               (6)  if the applicant is an individual, two [one]
 676-1   classifiable sets [set] of fingerprints of the applicant or, if the
 676-2   applicant is an entity other than an individual, of each officer
 676-3   and of each partner or shareholder who owns at least a 25 percent
 676-4   interest in the applicant;
 676-5               (7)  a verified statement of the applicant's experience
 676-6   qualifications in the particular classification in which the
 676-7   applicant is applying;
 676-8               (8)  [letters from the police department of the
 676-9   municipality and the sheriff's department of the county in which
676-10   the applicant resides:]
676-11                     [(A)  concerning the character of the applicant;
676-12   and]
676-13                     [(B)  containing any objection or recommendation
676-14   with respect to the application;]
676-15               [(9)]  a report [letter] from the Texas Department of
676-16   Public Safety stating the applicant's record of any convictions for
676-17   a Class B misdemeanor or equivalent offense or a greater offense
676-18   [crime involving moral turpitude or a felony];
676-19               (9) [(10)]  the social security number of the
676-20   individual making the application; and
676-21               (10) [(11)]  other information, evidence, statements,
676-22   or documents required by the commission [board].
676-23         SECTION 14.590. Section 1702.111, Occupations Code, is
676-24   amended to conform to Section 5, Chapter 974, Acts of the 76th
676-25   Legislature, Regular Session, 1999, to read as follows:
676-26         Sec. 1702.111.  ISSUANCE OF BRANCH OFFICE LICENSE. (a)  A
676-27   license holder, in accordance with Section 1702.129, shall notify
 677-1   the commission [board] in writing of the establishment of a branch
 677-2   office and file in writing with the commission [board] the address
 677-3   of the branch office.
 677-4         (b)  On application by a license holder, the commission
 677-5   [board] shall issue a branch office license.
 677-6         SECTION 14.591. Section 1702.112, Occupations Code, is
 677-7   amended to conform to Section 5, Chapter 974, Acts of the 76th
 677-8   Legislature, Regular Session, 1999, to read as follows:
 677-9         Sec. 1702.112.  FORM OF LICENSE. The commission [board] shall
677-10   prescribe the form of a license, including a branch office license.
677-11   The license must include:
677-12               (1)  the name of the license holder;
677-13               (2)  the name under which the license holder is to
677-14   operate; and
677-15               (3)  the license number and the date the license was
677-16   issued.
677-17         SECTION 14.592. (a)  Section 1702.113, Occupations Code, is
677-18   amended to conform to Sections 5 and 18, Chapter 974, Acts of the
677-19   76th Legislature, Regular Session, 1999, to read as follows:
677-20         Sec. 1702.113.  GENERAL QUALIFICATIONS FOR LICENSE. (a)  An
677-21   applicant for a license or the applicant's manager must be at least
677-22   18 years of age and must [may] not:
677-23               (1)  [have been convicted in any jurisdiction of a
677-24   felony, unless a full pardon has been granted;]
677-25               [(2)]  have been convicted in any jurisdiction of a
677-26   Class A misdemeanor or equivalent offense or a greater offense
677-27   [involving moral turpitude during the seven-year period preceding
 678-1   the date of application], unless a full pardon has been granted for
 678-2   reasons relating to a wrongful conviction;
 678-3               (2)  have been convicted in any jurisdiction of a Class
 678-4   B misdemeanor or equivalent offense for which the fifth anniversary
 678-5   of the date of conviction has not occurred before the date of
 678-6   application, unless a full pardon has been granted for reasons
 678-7   relating to a wrongful conviction;
 678-8               (3)  have been found by a court to be incompetent by
 678-9   reason of a mental defect or disease and not have been restored to
678-10   competency;
678-11               (4)  be suffering from habitual drunkenness or from
678-12   narcotics addiction or dependence; or
678-13               (5)  have been discharged from the United States armed
678-14   services under other than honorable conditions.
678-15         (b)  The commission may deny an application for a license if
678-16   the applicant has been convicted in any jurisdiction of a Class B
678-17   misdemeanor or equivalent offense if the fifth anniversary of the
678-18   date of conviction has occurred before the date of application,
678-19   unless a full pardon has been granted for reasons relating to a
678-20   wrongful conviction.
678-21         (b)  Section 18, Chapter 974, Acts of the 76th Legislature,
678-22   Regular Session, 1999, is repealed.
678-23         SECTION 14.593. Section 1702.114, Occupations Code, is
678-24   amended to conform to Section 5, Chapter 974, Acts of the 76th
678-25   Legislature, Regular Session, 1999, to read as follows:
678-26         Sec. 1702.114.  ADDITIONAL QUALIFICATIONS FOR INVESTIGATIONS
678-27   COMPANY LICENSE. (a)  An applicant for a license to engage in the
 679-1   business of an investigations company or the applicant's manager
 679-2   must have, before the date of the application, three consecutive
 679-3   years' experience in the investigative field as an employee,
 679-4   manager, or owner of an investigations company or satisfy other
 679-5   requirements set by the commission [board].
 679-6         (b)  The applicant's experience must be:
 679-7               (1)  reviewed by the commission [board] or the
 679-8   director; and
 679-9               (2)  determined to be adequate to qualify the applicant
679-10   to engage in the business of an investigations company.
679-11         SECTION 14.594. Section 1702.115, Occupations Code, is
679-12   amended to conform to Section 5, Chapter 974, Acts of the 76th
679-13   Legislature, Regular Session, 1999, to read as follows:
679-14         Sec. 1702.115.  ADDITIONAL QUALIFICATIONS FOR SECURITY
679-15   SERVICES CONTRACTOR LICENSE.  (a)  An applicant for a license to
679-16   engage in the business of a security services contractor or the
679-17   applicant's manager must have, before the date of the application,
679-18   two consecutive years' experience in each security services field
679-19   for which the person applies as an employee, manager, or owner of a
679-20   security services contractor or satisfy other requirements set by
679-21   the commission [board].
679-22         (b)  The applicant's experience must have been obtained
679-23   legally and must be:
679-24               (1)  reviewed by the commission [board] or the
679-25   director; and
679-26               (2)  determined to be adequate to qualify the applicant
679-27   to engage in the business of a security services contractor.
 680-1         SECTION 14.595. Section 1702.116, Occupations Code, is
 680-2   amended to conform to Section 5, Chapter 974, Acts of the 76th
 680-3   Legislature, Regular Session, 1999, to read as follows:
 680-4         Sec. 1702.116.  QUALIFICATIONS FOR GUARD DOG COMPANY LICENSE;
 680-5   INSPECTIONS.  (a)  An applicant for a license to engage in the
 680-6   business of a guard dog company must:
 680-7               (1)  meet the requirements of Sections 1702.113 and
 680-8   1702.115; and
 680-9               (2)  present evidence satisfactory to the commission
680-10   [board] that the applicant will comply with the rules adopted under
680-11   this section.
680-12         (b)  After consulting the Texas Department of Health, the
680-13   commission [board] shall adopt rules to ensure that the areas in
680-14   which a guard dog company houses, exercises, or trains its animals
680-15   are securely enclosed by a six-foot chain-link fence or made
680-16   equally secure.
680-17         (c)  The commission [board] shall conduct regular inspections
680-18   to ensure compliance with the rules adopted under this section.
680-19         SECTION 14.596. (a)  Sections 1702.117(a), (c), and (d),
680-20   Occupations Code, are amended to conform to Sections 5, 19, and
680-21   55(2), Chapter 974, Acts of the 76th Legislature, Regular Session,
680-22   1999, to read as follows:
680-23         (a)  The commission shall [board may] require an applicant or
680-24   the applicant's manager to demonstrate qualifications in the
680-25   person's license classification, including knowledge of applicable
680-26   state laws and commission rules, by taking an examination to be
680-27   determined by the commission [board].
 681-1         (c)  The commission [board] shall set the reexamination fee
 681-2   in an amount not to exceed the amount of the renewal fee for the
 681-3   license classification for which application was made.
 681-4         (d)  The commission shall develop and provide to a person who
 681-5   applies to take the examination under Subsection (a) material
 681-6   containing all applicable state laws and commission rules.  [If
 681-7   requested in writing by a person who fails a licensing examination
 681-8   administered under this chapter, the board shall furnish to the
 681-9   person an analysis of the person's performance on the examination.]
681-10         (b)  Section 19, Chapter 974, Acts of the 76th Legislature,
681-11   Regular Session, 1999, is repealed.
681-12         SECTION 14.597. Section 1702.118, Occupations Code, is
681-13   amended  to conform to Sections 5, 20, and 55(2), Chapter 974, Acts
681-14   of the 76th Legislature, Regular Session, 1999, to read as follows:
681-15         Sec. 1702.118.  EXAMINATION RESULTS.  (a)  Not later than the
681-16   30th day after the date a person takes a licensing examination
681-17   under this chapter, the commission [The board] shall notify the
681-18   person [each examinee] of the examination results [not later than
681-19   the 30th day after the date a licensing examination is
681-20   administered].
681-21         (b)  If an examination is graded or reviewed by a [national]
681-22   testing service:
681-23               (1)  [,] the commission [board] shall notify the person
681-24   [each examinee] of the examination results not later than the 14th
681-25   day after the date the commission [board] receives the results from
681-26   the testing service; and[.]
681-27               (2)  if [(b)  If the] notice of the [results of an]
 682-1   examination results [graded or reviewed by a national testing
 682-2   service] will be delayed for longer than 90 days after the
 682-3   examination date, the commission [board] shall notify the person
 682-4   [each examinee] of the reason for the delay before the 90th day.
 682-5         (c)  The commission may require a testing service to notify a
 682-6   person of the results of the person's examination.
 682-7         (d)  If requested in writing by a person who fails a
 682-8   licensing examination administered under this chapter, the
 682-9   commission shall furnish the person with an analysis of the
682-10   person's performance on the examination.
682-11         SECTION 14.598. Subchapter F, Chapter 1702, Occupations Code,
682-12   is amended to conform to Sections 5 and 20, Chapter 974, Acts of
682-13   the 76th Legislature, Regular Session, 1999, by adding Sections
682-14   1702.1183 and 1702.1186 to read as follows:
682-15         Sec. 1702.1183.  RECIPROCAL LICENSE FOR CERTAIN FOREIGN
682-16   APPLICANTS. (a)  The commission may waive any prerequisite to
682-17   obtaining a license for an applicant who holds a license issued by
682-18   another jurisdiction with which this state has a reciprocity
682-19   agreement.
682-20         (b)  The commission may make an agreement, subject to the
682-21   approval of the governor, with another state to allow for licensing
682-22   by reciprocity.
682-23         Sec. 1702.1186.  PROVISIONAL LICENSE. (a)  The commission may
682-24   issue a provisional license to an applicant currently licensed in
682-25   another jurisdiction who seeks an equivalent license in this state
682-26   and who:
682-27               (1)  has been licensed in good standing as an
 683-1   investigations company or security services contractor for at least
 683-2   two years in another jurisdiction, including a foreign country,
 683-3   that has licensing requirements substantially equivalent to the
 683-4   requirements of this chapter;
 683-5               (2)  has passed  a  national  or other  examination
 683-6   recognized by the commission relating to the practice of  private
 683-7   investigations or security services contracting; and
 683-8               (3)  is sponsored by a person licensed by the
 683-9   commission under this chapter with whom the provisional license
683-10   holder will practice during the time the person holds a provisional
683-11   license.
683-12         (b)  A provisional license is valid until the date the
683-13   commission approves or denies the provisional license holder's
683-14   application for a license.  The commission shall issue a license
683-15   under this chapter to the provisional license holder if:
683-16               (1)  the provisional license holder is eligible to be
683-17   licensed under Section 1702.1183; or
683-18               (2)  the provisional license holder:
683-19                     (A)  passes the part of the examination under
683-20   Section 1702.117(a) that relates to the applicant's knowledge and
683-21   understanding of the laws and rules relating to the practice of an
683-22   investigations company or security services contractor in this
683-23   state;
683-24                     (B)  is verified by the commission as meeting the
683-25   academic and experience requirements for a license under this
683-26   chapter; and
683-27                     (C)  satisfies any other licensing requirements
 684-1   under this chapter.
 684-2         (c)  The commission must approve or deny a provisional
 684-3   license holder's application for a license not later than the 180th
 684-4   day after the date the provisional license is issued.  The
 684-5   commission may extend the 180-day period if the results of an
 684-6   examination have not been received by the commission before the end
 684-7   of that period.
 684-8         (d)  The commission may establish a fee for provisional
 684-9   licenses in an amount reasonable and necessary to cover the cost of
684-10   issuing the license.
684-11         SECTION 14.599. (a)  Section 1702.119(b), Occupations Code,
684-12   is amended to conform to Sections 5 and 23, Chapter 974, Acts of
684-13   the 76th Legislature, Regular Session, 1999, to read as follows:
684-14         (b)  An individual may not act as a manager until the
684-15   individual has:
684-16               (1)  demonstrated the individual's qualifications by
684-17   passing the [a] written examination required by Section
684-18   1702.117(a); and
684-19               (2)  made a satisfactory showing to the commission
684-20   [board] that the individual:
684-21                     (A)  satisfies the requirements of Section
684-22   1702.113 and either Section 1702.114 or Section 1702.115, as
684-23   appropriate; and
684-24                     (B)  has not engaged in conduct regarding a
684-25   violation or conviction that is grounds for disciplinary action
684-26   under Section 1702.361(b) or 1702.3615(a).
684-27         (b)  Section 23, Chapter 974, Acts of the 76th Legislature,
 685-1   Regular Session, 1999, is repealed.
 685-2         SECTION 14.600. Section 1702.120(b), Occupations Code, is
 685-3   amended to conform to Section 5, Chapter 974, Acts of the 76th
 685-4   Legislature, Regular Session, 1999, to read as follows:
 685-5         (b)  An individual may not apply to the commission [board] to
 685-6   serve as manager of an investigations company, guard company, alarm
 685-7   systems company, armored car company, courier company, or guard dog
 685-8   company without the intent to maintain that supervisory position on
 685-9   a daily basis for that company.
685-10         SECTION 14.601. Section 1702.121, Occupations Code, is
685-11   amended to conform to Section 5, Chapter 974, Acts of the 76th
685-12   Legislature, Regular Session, 1999, to read as follows:
685-13         Sec. 1702.121.  TERMINATION OF MANAGER.  A license holder
685-14   shall notify the commission [board] in writing not later than the
685-15   14th day after the date a manager ceases to be manager of the
685-16   license holder's business. The license remains in effect for a
685-17   reasonable period after notice is given as provided by commission
685-18   [board] rule pending the commission's [board's] determination of
685-19   the qualification of another manager under this subchapter.
685-20         SECTION 14.602. Section 1702.122, Occupations Code, is
685-21   amended to conform to Section 5, Chapter 974, Acts of the 76th
685-22   Legislature, Regular Session, 1999, to read as follows:
685-23         Sec. 1702.122.  TEMPORARY CONTINUATION OF LICENSE HOLDER'S
685-24   BUSINESS.  Under the terms provided by commission [board] rule, a
685-25   license holder's business may continue for a temporary period if
685-26   the individual on the basis of whose qualifications a license under
685-27   this chapter has been obtained ceases to be connected with the
 686-1   license holder.
 686-2         SECTION 14.603. Section 1702.123, Occupations Code, is
 686-3   amended to conform to Section 5, Chapter 974, Acts of the 76th
 686-4   Legislature, Regular Session, 1999, to read as follows:
 686-5         Sec. 1702.123.  INSURANCE; BOND. (a)  A license holder shall
 686-6   maintain on file with the commission [board] at all times the
 686-7   surety bond and certificate of insurance required by this chapter.
 686-8         (b)  The commission [board] shall immediately suspend the
 686-9   license of a license holder who violates Subsection (a).
686-10         (c)  The commission [board] may rescind the license
686-11   suspension if the license holder provides proof to the commission
686-12   [board] that the bond or the insurance coverage is still in effect.
686-13   The license holder must provide the proof in a form satisfactory to
686-14   the commission [board] not later than the 10th day after the date
686-15   the license is suspended.
686-16         (d)  After suspension of the license, the commission [board]
686-17   may not reinstate the license until an application, in the form
686-18   prescribed by the commission [board], is filed accompanied by a
686-19   proper bond, insurance certificate, or both. The commission [board]
686-20   may deny the application notwithstanding the applicant's compliance
686-21   with this section:
686-22               (1)  for a reason that would justify suspending,
686-23   revoking, or denying a license; or
686-24               (2)  if, during the suspension, the applicant performs
686-25   a practice for which a license is required.
686-26         SECTION 14.604. Sections 1702.124(a) and (e), Occupations
686-27   Code, are amended to conform to Section 5, Chapter 974, Acts of the
 687-1   76th Legislature, Regular Session, 1999, to read as follows:
 687-2         (a)  The commission [board] may not issue a license unless
 687-3   the applicant files with the commission [board]:
 687-4               (1)  evidence of a general liability insurance policy
 687-5   on a certificate of insurance form prescribed by the commission
 687-6   [board] and countersigned by an insurance agent licensed in this
 687-7   state; or
 687-8               (2)  a certificate of insurance for surplus lines
 687-9   coverage obtained under Article 1.14-2, Insurance Code, through a
687-10   licensed Texas surplus lines agent resident in this state.
687-11         (e)  An insurance certificate executed and filed with the
687-12   commission [board] under this chapter remains in effect until the
687-13   insurer terminates future liability by providing to the commission
687-14   [board] at least 10 days' notice of the intent to terminate
687-15   liability.
687-16         SECTION 14.605. Section 1702.125, Occupations Code, is
687-17   amended to conform to Sections 5 and 55(7), Chapter 974, Acts of
687-18   the 76th Legislature, Regular Session, 1999, to read as follows:
687-19         Sec. 1702.125.  BOND REQUIREMENT.  [(a) The bond required by
687-20   this chapter must be payable to the state. A person injured by the
687-21   principal, or an officer, agent, or employee of the principal, is
687-22   entitled to sue directly on the bond in the person's own name. The
687-23   bond is subject to successive suits for recovery until complete
687-24   exhaustion of the face amount of the bond.]
687-25         [(b)]  A bond executed and filed with the commission [board]
687-26   under this chapter remains in effect until the surety terminates
687-27   future liability by providing to the commission [board] at least 30
 688-1   days' notice of the intent to terminate liability.
 688-2         SECTION 14.606. Section 1702.126, Occupations Code, is
 688-3   repealed to conform to the repeal of the law from which that
 688-4   section was derived by Section 55(8), Chapter 974, Acts of the 76th
 688-5   Legislature, Regular Session, 1999.
 688-6         SECTION 14.607. Sections 1702.127(b) and (c), Occupations
 688-7   Code, are amended to conform to Section 5, Chapter 974, Acts of the
 688-8   76th Legislature, Regular Session, 1999, to read as follows:
 688-9         (b)  A license holder shall maintain a record containing
688-10   information related to the license holder's employees as required
688-11   by the commission [board].
688-12         (c)  A license holder shall maintain for commission [board]
688-13   inspection at the license holder's principal place of business or
688-14   branch office two recent color photographs, of a type required by
688-15   the commission [board], of each applicant, registrant, commissioned
688-16   security officer, and employee of the license holder.
688-17         SECTION 14.608. Section 1702.129, Occupations Code, is
688-18   amended to conform to Section 5, Chapter 974, Acts of the 76th
688-19   Legislature, Regular Session, 1999, to read as follows:
688-20         Sec. 1702.129.  NOTICE OF CERTAIN CHANGES; BRANCH OFFICES.
688-21   (a)  A license holder shall notify the commission [board] not later
688-22   than the 14th day after the date of:
688-23               (1)  a change of address for the license holder's
688-24   principal place of business;
688-25               (2)  a change of a name under which the license holder
688-26   does business; or
688-27               (3)  a change in the license holder's officers or
 689-1   partners.
 689-2         (b)  A license holder shall notify the commission [board] in
 689-3   writing not later than the 14th day after the date a branch office:
 689-4               (1)  is established;
 689-5               (2)  is closed; or
 689-6               (3)  changes address or location.
 689-7         SECTION 14.609. Section 1702.131, Occupations Code, is
 689-8   amended to conform to Section 5, Chapter 974, Acts of the 76th
 689-9   Legislature, Regular Session, 1999, to read as follows:
689-10         Sec. 1702.131.  ADVERTISING.  An advertisement by a license
689-11   holder soliciting or advertising business must contain the license
689-12   holder's company name and address as stated in commission [board]
689-13   records.
689-14         SECTION 14.610. Section 1702.161(b), Occupations Code, is
689-15   amended to conform to Section 5, Chapter 974, Acts of the 76th
689-16   Legislature, Regular Session, 1999, to read as follows:
689-17         (b)  An individual employed as a security officer may not
689-18   knowingly carry a firearm during the course of performing duties as
689-19   a security officer unless the commission [board] has issued a
689-20   security officer commission to the individual.
689-21         SECTION 14.611. Section 1702.162, Occupations Code, is
689-22   amended to conform to Section 5, Chapter 974, Acts of the 76th
689-23   Legislature, Regular Session, 1999, to read as follows:
689-24         Sec. 1702.162.  EMPLOYER'S APPLICATION FOR SECURITY OFFICER
689-25   COMMISSION.  The employer of a security officer who applies for a
689-26   security officer commission for the officer must submit an
689-27   application to the commission [board] on a form provided by the
 690-1   commission [board].
 690-2         SECTION 14.612. Section 1702.163, Occupations Code, is
 690-3   amended to conform to Sections 5 and 25, Chapter 974, Acts of the
 690-4   76th Legislature, Regular Session, 1999, to read as follows:      
 690-5         Sec. 1702.163.  QUALIFICATIONS FOR SECURITY OFFICER
 690-6   COMMISSION.  (a)  The commission [board] may not issue a security
 690-7   officer commission to an applicant employed by a license holder
 690-8   unless the applicant submits evidence satisfactory to the
 690-9   commission [board] that the applicant has:
690-10               (1)  completed the basic training course at a school or
690-11   under an instructor approved by the commission [board];
690-12               (2)  met each qualification established by this chapter
690-13   and commission [board] rule; [and]
690-14               (3)  achieved the score required by the commission on
690-15   the examination under Section 1702.1685; and
690-16               (4)  demonstrated to the satisfaction of the firearm
690-17   training instructor that the applicant has complied with commission
690-18   standards for minimum marksmanship competency with a shotgun
690-19   [satisfied the firearm requirements in Section 1702.168(c)].
690-20         (b)  The commission [board] may not issue a security officer
690-21   commission to an individual who:
690-22               (1)  is younger than 18 years of age;
690-23               (2)  is a convicted felon; or
690-24               (3)  has committed an act that, if committed by a
690-25   license holder, would be grounds for suspension or revocation of a
690-26   license.
690-27         SECTION 14.613. Section 1702.164, Occupations Code, is
 691-1   repealed to conform to the repeal of the law from which that
 691-2   section was derived by Section 55(3), Chapter 974, Acts of the 76th
 691-3   Legislature, Regular Session, 1999.
 691-4         SECTION 14.614. Section 1702.165, Occupations Code, is
 691-5   amended  to conform to Section 5, Chapter 974, Acts of the 76th
 691-6   Legislature, Regular Session, 1999, to read as follows:
 691-7         Sec. 1702.165.  ISSUANCE OF SECURITY OFFICER COMMISSION;
 691-8   POCKET CARD. (a)  The commission [board], with the concurrence of
 691-9   the Texas Department of Public Safety:
691-10               (1)  may issue a security officer commission to an
691-11   individual employed as a uniformed security officer; and
691-12               (2)  shall issue a security officer commission to a
691-13   qualified employee of an armored car company that is a carrier
691-14   conducting the armored car business under a federal or state permit
691-15   or certificate.
691-16         (b)  A security officer commission issued under this section
691-17   must be in the form of a pocket card designed by the commission
691-18   [board] that identifies the security officer.
691-19         SECTION 14.615. Section 1702.166(b), Occupations Code, is
691-20   amended to conform to Section 5, Chapter 974, Acts of the 76th
691-21   Legislature, Regular Session, 1999, to read as follows:
691-22         (b)  The commission [board], with the concurrence of the
691-23   Texas Department of Public Safety, may issue a security officer
691-24   commission that is broader in geographical scope than that
691-25   specified in Subsection (a)  if the broader scope is shown to be in
691-26   the public interest and necessary to the performance of the
691-27   security officer's duties.
 692-1         SECTION 14.616. (a)  Section 1702.167, Occupations Code, is
 692-2   amended to conform to Sections 5, 24, and 55(3), Chapter 974, Acts
 692-3   of the 76th Legislature, Regular Session, 1999, to read as follows:
 692-4         Sec. 1702.167.  TERMINATION OF EMPLOYMENT AS COMMISSIONED
 692-5   SECURITY OFFICER; TRANSFER OF COMMISSION.  [(a) If the holder of a
 692-6   security officer commission terminates the individual's employment,
 692-7   the employer shall notify the board not later than the 14th day
 692-8   after the date of termination of the employment.]
 692-9         [(b)]  The holder of a security officer commission who
692-10   terminates employment with one employer may transfer the
692-11   individual's commission to a new employer if, not later than the
692-12   14th [10th] day after the date the individual begins the new
692-13   employment, the new employer notifies the commission [board] of the
692-14   transfer of employment on a form prescribed by the commission
692-15   [board], accompanied by payment of the employee information update
692-16   fee.
692-17         (b)  Section 24, Chapter 974, Acts of the 76th Legislature,
692-18   Regular Session, 1999, is repealed.
692-19         SECTION 14.617. Subchapter G, Chapter 1702, Occupations Code,
692-20   is amended to conform to Sections 5 and 25, Chapter 974, Acts of
692-21   the 76th Legislature, Regular Session, 1999, by adding Section
692-22   1702.1675 to read as follows:
692-23         Sec. 1702.1675.  TRAINING PROGRAMS. (a)  The commission shall
692-24   establish a basic training course for commissioned security
692-25   officers.  The course must include, at a minimum:
692-26               (1)  general security officer training issues;
692-27               (2)  classroom instruction on handgun proficiency; and
 693-1               (3)  range instruction on handgun proficiency.
 693-2         (b)  The course must be offered and taught by schools and
 693-3   instructors approved by the commission.  To receive commission
 693-4   approval, a school or an instructor must submit an application to
 693-5   the commission on a form provided by the commission.
 693-6         (c)  The basic training course approved by the commission
 693-7   must consist of a minimum of 30 hours.
 693-8         (d)  The general security officer training portion of the
 693-9   course must include instruction on:
693-10               (1)  commission rules and applicable state laws;
693-11               (2)  field note taking and report writing; and
693-12               (3)  any other topics of security officer training
693-13   curriculum the commission considers necessary.
693-14         (e)  The commission shall develop a commissioned security
693-15   officer training manual that contains applicable state laws and
693-16   commission rules to be used in the instruction and training of
693-17   commissioned security officers.
693-18         (f)  The commission shall adopt rules necessary to administer
693-19   the provisions of this section concerning the training requirements
693-20   of this chapter.
693-21         (g)  The handgun proficiency course must include at least 10
693-22   hours and not more than 15 hours of instruction on:
693-23               (1)  the laws that relate to weapons and to the use of
693-24   deadly force;
693-25               (2)  handgun use, proficiency, and safety;
693-26               (3)  nonviolent dispute resolution; and
693-27               (4)  proper storage practices for handguns, with an
 694-1   emphasis on storage practices that eliminate the possibility of
 694-2   accidental injury to a child.
 694-3         (h)  The range instruction on handgun proficiency must
 694-4   include an actual demonstration by the applicant of the applicant's
 694-5   ability to safely and proficiently use a handgun.  The applicant
 694-6   must demonstrate, at a minimum, the degree of proficiency that is
 694-7   required to effectively operate a 9-millimeter or .38-caliber
 694-8   handgun.
 694-9         (i)  The commission by rule shall establish minimum standards
694-10   for handgun proficiency that are at least as stringent as the
694-11   standards for handgun proficiency developed by the public safety
694-12   director under Section 411.188, Government Code.
694-13         SECTION 14.618. Section 1702.168, Occupations Code, is
694-14   amended to conform to Sections 5 and 25, Chapter 974, Acts of the
694-15   76th Legislature, Regular Session, 1999, to read as follows:
694-16         Sec. 1702.168.  FIREARM REQUIREMENTS.  (a)  In addition to
694-17   the requirements of Section 1702.163(a), the commission [board] by
694-18   rule shall establish other qualifications for individuals who are
694-19   employed in positions requiring the carrying of firearms.  The
694-20   qualifications may include:
694-21               (1)  physical and mental standards;
694-22               (2)  standards of good moral character; and
694-23               (3)  other requirements that relate to the competency
694-24   and reliability of individuals to carry firearms.
694-25         (b)  The commission [board] shall prescribe appropriate forms
694-26   and adopt rules by which evidence is presented that the
694-27   requirements are fulfilled.
 695-1         [(c)  The board shall require a commissioned security officer
 695-2   and an applicant for a security officer commission to demonstrate
 695-3   to the satisfaction of a firearm training instructor who is
 695-4   employed by a board-approved training school that the individual
 695-5   has:]
 695-6               [(1)  attained proficiency in the use of firearms;]
 695-7               [(2)  complied with board standards for minimum
 695-8   marksmanship competency with a shotgun; and]
 695-9               [(3)  attained with a handgun:]
695-10                     [(A)  a minimum average marksmanship competency
695-11   of 160 out of 300 on an "Army L" target or a minimum of 80 out of
695-12   150 on an FBI Silhouette target (NRA B-27), at 50 feet with 10
695-13   shots slow fire, 10 shots time fire, and 10 shots double-action; or]
695-14                     [(B)  compliance with board standards of
695-15   marksmanship.]
695-16         [(d)  An applicant for a security officer commission must
695-17   demonstrate the required proficiency within the 90-day period
695-18   before the date the security officer commission is issued.]
695-19         [(e)  A commissioned security officer must demonstrate the
695-20   required proficiency within the 90-day period before the date the
695-21   commission is renewed.]
695-22         [(f)  The school shall maintain the records of the required
695-23   proficiency and make the records available for inspection by the
695-24   board.]
695-25         SECTION 14.619. Subchapter G, Chapter 1702, Occupations Code,
695-26   is amended to conform to Sections 5, 25, and 26, Chapter 974, Acts
695-27   of the 76th Legislature, Regular Session, 1999, by adding Section
 696-1   1702.1685 to read as follows:
 696-2         Sec. 1702.1685.  HANDGUN PROFICIENCY EXAMINATION. (a)  The
 696-3   proficiency examination required to obtain or renew a security
 696-4   officer commission must include:
 696-5               (1)  a written section on the subjects listed in
 696-6   Section 1702.1675(g); and
 696-7               (2)  a physical demonstration of handgun proficiency
 696-8   that meets the minimum standards established under Section
 696-9   1702.1675(h) or (i).
696-10         (b)  Only a commission-approved instructor may administer the
696-11   handgun proficiency examination.
696-12         (c)  An applicant for a security officer commission must
696-13   demonstrate the required proficiency within the 90-day period
696-14   before the date the security officer commission is issued.
696-15         (d)  The school shall maintain the records of the required
696-16   proficiency and make the records available for inspection by the
696-17   commission.
696-18         SECTION 14.620. Section 1702.171, Occupations Code, is
696-19   amended to conform to Section 5, Chapter 974, Acts of the 76th
696-20   Legislature, Regular Session, 1999, to read as follows:
696-21         Sec. 1702.171.  SECURITY OFFICER COMMISSION RECORDS.  The
696-22   commission [board] shall adopt rules for the maintenance of records
696-23   relating to an individual to whom the commission [board] has issued
696-24   a security officer commission.
696-25         SECTION 14.621. Section 1702.183, Occupations Code, is
696-26   amended to conform to Section 5, Chapter 974, Acts of the 76th
696-27   Legislature, Regular Session, 1999, to read as follows:
 697-1         Sec. 1702.183.  APPLICATION FOR LETTER OF AUTHORITY.  A
 697-2   security department of a private business or of a political
 697-3   subdivision that applies for a security officer commission for an
 697-4   individual employed by the department must submit an application to
 697-5   the commission [board] for a letter of authority on a form provided
 697-6   by the commission [board].
 697-7         SECTION 14.622. Section 1702.203, Occupations Code, is
 697-8   amended to conform to Section 5, Chapter 974, Acts of the 76th
 697-9   Legislature, Regular Session, 1999, to read as follows:
697-10         Sec. 1702.203.  APPLICATION FOR PERSONAL PROTECTION OFFICER
697-11   AUTHORIZATION.  An applicant for a personal protection officer
697-12   authorization must submit a written application on a form
697-13   prescribed by the commission [board].
697-14         SECTION 14.623. Section 1702.204, Occupations Code, is
697-15   amended to conform to Section 5, Chapter 974, Acts of the 76th
697-16   Legislature, Regular Session, 1999, to read as follows:
697-17         Sec. 1702.204.  PERSONAL PROTECTION OFFICER AUTHORIZATION;
697-18   QUALIFICATIONS. (a)  An applicant for a personal protection officer
697-19   authorization must be at least 21 years of age and must provide:
697-20               (1)  a certificate of completion of the basic security
697-21   officer training course;
697-22               (2)  proof that the applicant:
697-23                     (A)  has been issued a security officer
697-24   commission;
697-25                     (B)  is employed at the time of application by an
697-26   investigations company or guard company licensed by the commission
697-27   [board]; and
 698-1                     (C)  has completed the required training in
 698-2   nonlethal self-defense or defense of a third person; and
 698-3               (3)  proof of completion and the results of the
 698-4   Minnesota Multiphasic Personality Inventory psychological testing.
 698-5         (b)  The commission [board] by rule shall require an
 698-6   applicant for a personal protection officer authorization to
 698-7   complete the Minnesota Multiphasic Personality Inventory test.  The
 698-8   commission [board] may use the results of the test to evaluate the
 698-9   applicant's psychological fitness.
698-10         SECTION 14.624. Section 1702.205, Occupations Code, is
698-11   amended to conform to Section 5, Chapter 974, Acts of the 76th
698-12   Legislature, Regular Session, 1999, and to the repeal by this Act
698-13   of Section 1702.237, Occupations Code, to read as follows:
698-14         Sec. 1702.205.  PERSONAL PROTECTION OFFICER TRAINING.
698-15   (a)  The commission [board] shall establish a 15-hour course for a
698-16   personal protection officer consisting of training in nonlethal
698-17   self-defense or defense of a third person.
698-18         (b)  The training required by this section is in addition to
698-19   the basic training course for security officers [required under
698-20   Section 1702.237].
698-21         SECTION 14.625. Section 1702.221, Occupations Code, is
698-22   amended to conform to Section 5, Chapter 974, Acts of the 76th
698-23   Legislature, Regular Session, 1999, to read as follows:
698-24         Sec. 1702.221.  REGISTRATION REQUIRED.  An individual must
698-25   register with the commission [board] as provided by commission
698-26   [board] rule if the individual:
698-27               (1)  is employed as an alarm systems installer, alarm
 699-1   systems monitor, dog trainer, manager or branch office manager,
 699-2   noncommissioned security officer, private investigator, private
 699-3   security consultant, or security salesperson; or
 699-4               (2)  is an owner, officer, partner, or shareholder of a
 699-5   license holder.
 699-6         SECTION 14.626. (a)  Section 1702.226, Occupations Code, is
 699-7   amended to conform to Section 2, Chapter 974, Acts of the 76th
 699-8   Legislature, Regular Session, 1999, to read as follows:
 699-9         Sec. 1702.226.  PRIVATE SECURITY CONSULTANT.  An individual
699-10   acts as a private security consultant for purposes of this chapter
699-11   if the individual:
699-12               (1)  consults, advises, trains, or specifies or
699-13   recommends products, services, methods, or procedures in the
699-14   security loss prevention industry;
699-15               (2)  provides a service described by Subdivision (1) on
699-16   an independent basis and without being affiliated with a particular
699-17   service or product; and
699-18               (3)  meets the experience requirements established by
699-19   the commission [offers advice or services in the field of private
699-20   security].
699-21         (b)  Section 2, Chapter 974, Acts of the 76th Legislature,
699-22   Regular Session, 1999, is repealed.
699-23         SECTION 14.627. Section 1702.228, Occupations Code, is
699-24   amended to conform to Section 5, Chapter 974, Acts of the 76th
699-25   Legislature, Regular Session, 1999, to read as follows:
699-26         Sec. 1702.228.  EMPLOYEE OF LICENSE HOLDER; REGISTRATION
699-27   PERMITTED.  An employee of a license holder who is employed in a
 700-1   capacity that is not subject to mandatory registration under this
 700-2   subchapter may register with the commission [board].
 700-3         SECTION 14.628. Section 1702.229(b), Occupations Code, is
 700-4   amended to conform to Section 5, Chapter 974, Acts of the 76th
 700-5   Legislature, Regular Session, 1999, to read as follows:
 700-6         (b)  The commission [board] by rule may adopt additional
 700-7   qualifications for an individual to be registered under this
 700-8   subchapter.
 700-9         SECTION 14.629. Section 1702.230(a), Occupations Code, is
700-10   amended to conform to Section 5, Chapter 974, Acts of the 76th
700-11   Legislature, Regular Session, 1999, to read as follows:
700-12         (a)  An application for registration must be verified and
700-13   include:
700-14               (1)  the applicant's full name, residence address,
700-15   residence telephone number, date and place of birth, and social
700-16   security number;
700-17               (2)  a statement that:
700-18                     (A)  lists each name used by the applicant, other
700-19   than the name by which the applicant is known at the time of
700-20   application, and an explanation stating each place where each name
700-21   was used, the date of each use, and a full explanation of the
700-22   reasons the name was used; or
700-23                     (B)  states that the applicant has never used a
700-24   name other than the name by which the applicant is known at the
700-25   time of application;
700-26               (3)  the name and address of the applicant's employer
700-27   and, if applicable, the applicant's consulting firm;
 701-1               (4)  the date the employment commenced;
 701-2               (5)  a letter from the license holder requesting that
 701-3   the applicant be registered;
 701-4               (6)  the title of the position occupied by the
 701-5   applicant and a description of the applicant's duties; and
 701-6               (7)  any other information, evidence, statement, or
 701-7   document required by the commission [board].
 701-8         SECTION 14.630. (a)  Subchapter J, Chapter 1702, Occupations
 701-9   Code, is amended to conform to Sections 5 and 20, Chapter 974, Acts
701-10   of the 76th Legislature, Regular Session, 1999, by adding Section
701-11   1702.2305 to read as follows:
701-12         Sec. 1702.2305.  PROVISIONAL REGISTRATION. (a)  The
701-13   commission may issue a provisional registration to an applicant
701-14   currently registered in another jurisdiction who seeks an
701-15   equivalent registration in this state and who:
701-16               (1)  has been registered in good standing in the field
701-17   in which the registration is sought for at least two years in
701-18   another jurisdiction, including a foreign country, that has
701-19   registration requirements substantially equivalent to the
701-20   requirements of this chapter;
701-21               (2)  has passed a national or other examination
701-22   recognized by the commission relating to practice in the field in
701-23   which the registration is sought; and
701-24               (3)  is employed by a person licensed by the commission
701-25   under this chapter with whom the provisional registration holder
701-26   will practice during the time the person holds a provisional
701-27   registration.
 702-1         (b)  A provisional registration is valid until the date the
 702-2   commission approves or denies the provisional registration holder's
 702-3   application for a registration.  The commission shall issue a
 702-4   registration under this chapter to the provisional registration
 702-5   holder if the provisional registration holder is eligible to be
 702-6   registered under this chapter.
 702-7         (c)  The commission must approve or deny a provisional
 702-8   registration holder's application for a registration not later than
 702-9   the 180th day after the date the provisional registration is
702-10   issued.  The commission may extend the 180-day period if the
702-11   results of an examination have not been received by the commission
702-12   before the end of that period.
702-13         (d)  The commission may establish a fee for provisional
702-14   registration in an amount reasonable and necessary to cover the
702-15   cost of issuing the registration.
702-16         (b)  Section 20, Chapter 974, Acts of the 76th Legislature,
702-17   Regular Session, 1999, is repealed.
702-18         SECTION 14.631. Section 1702.231, Occupations Code, is
702-19   repealed to conform to the repeal of the law from which that law
702-20   was derived by Section 55(4), Chapter 974, Acts of the 76th
702-21   Legislature, Regular Session, 1999.
702-22         SECTION 14.632. Sections 1702.232(a) and (b), Occupations
702-23   Code, are amended  to conform to Sections 5 and 27, Chapter 974,
702-24   Acts of the 76th Legislature, Regular Session, 1999, to read as
702-25   follows:
702-26         (a)  The commission [board] shall issue a pocket card for
702-27   each registrant under this chapter.  A pocket card for an owner,
 703-1   officer, partner, or shareholder of a license holder shall be
 703-2   issued to the license holder.
 703-3         (b)  The commission [board] shall determine the size, design,
 703-4   and content of the pocket card.
 703-5         SECTION 14.633. Section 1702.233, Occupations Code, is
 703-6   amended to conform to Sections 27, 29, and 55(5), Chapter 974, Acts
 703-7   of the 76th Legislature, Regular Session, 1999, to read as follows:
 703-8         Sec. 1702.233.  DURATION OF POCKET CARDS [FOR CERTAIN
 703-9   REGISTRANTS]. [(a)]  A pocket card issued for a registrant [other
703-10   than a noncommissioned security officer is issued to the
703-11   registrant's employer,] is valid for two years[,] and expires on
703-12   the date the registration expires under Section 1702.301(d), (e),
703-13   or (f).
703-14         [(b)  A registrant other than a noncommissioned security
703-15   officer must return the registrant's pocket card to the license
703-16   holder at the time the registrant ceases employment in the position
703-17   for which the registration is required.]
703-18         [(c)  If an employee who was registered as a private
703-19   investigator, manager, branch office manager, alarm systems
703-20   installer, private security consultant, security salesperson, alarm
703-21   systems monitor, or dog trainer ceases to be an employee of a
703-22   license holder, the license holder shall return the employee's
703-23   pocket card to the board.]
703-24         [(d)  If an individual ceases to be an owner, officer,
703-25   partner, or shareholder of a license holder, the license holder
703-26   shall return the pocket card held by that individual to the board.]
703-27         SECTION 14.634. (a)  Section 1702.234, Occupations Code, is
 704-1   amended to conform to Sections 5, 27,  29, and 55(5), Chapter 974,
 704-2   Acts of the 76th Legislature, Regular Session, 1999, to read as
 704-3   follows:
 704-4         Sec. 1702.234.  REGISTRATION TRANSFER.  [POCKET CARDS FOR
 704-5   NONCOMMISSIONED SECURITY OFFICERS.  (a) A pocket card issued to a
 704-6   noncommissioned security officer is issued to the individual
 704-7   employee, is valid for four years, and expires on the date the
 704-8   registration expires under Section 1702.301(g).]
 704-9         [(b)  An employee who is registered  as a noncommissioned
704-10   security officer who ceases employment as a noncommissioned
704-11   security officer may retain the pocket card for use in future
704-12   employment and may transfer the registration to a new employer as
704-13   provided by Subsection (c).]
704-14         [(c)]  A registrant [noncommissioned security officer] may
704-15   transfer the registrant's registration from one employer to another
704-16   employer if, not later than the 14th [10th] day after the date the
704-17   registrant begins the new employment, the new employer notifies the
704-18   commission [board] of the transfer of employment on a form
704-19   prescribed by the commission [board] accompanied by payment of the
704-20   employee information update fee.
704-21         (b)  Section 29, Chapter 974,  Acts of the 76th Legislature,
704-22   Regular Session, 1999, is repealed.
704-23         SECTION 14.635. Section 1702.235, Occupations Code, is
704-24   amended to conform to Section 5, Chapter 974, Acts of the 76th
704-25   Legislature, Regular Session, 1999, to read as follows:
704-26         Sec. 1702.235.  PREEMPLOYMENT CHECK FOR NONCOMMISSIONED
704-27   SECURITY OFFICERS.  A person may not hire a noncommissioned
 705-1   security officer unless the person conducts a preemployment check
 705-2   as required by commission [board] rule.
 705-3         SECTION 14.636. Section 1702.236, Occupations Code, is
 705-4   repealed to conform to the repeal of the law from which that
 705-5   section was derived by Section 55(5), Chapter 974, Acts of the 76th
 705-6   Legislature, Regular Session, 1999.
 705-7         SECTION 14.637. Section 1702.237, Occupations Code, is
 705-8   repealed to conform to Section 25, Chapter 974, Acts of the 76th
 705-9   Legislature, Regular Session, 1999, and to the transfer by this Act
705-10   of the substance of that section to Section 1702.1675, Occupations
705-11   Code.
705-12         SECTION 14.638. Section 1702.238, Occupations Code, is
705-13   repealed to conform to Section 11, Chapter 974, Acts of the 76th
705-14   Legislature, Regular Session, 1999, and to the transfer by this Act
705-15   of the substance of that section to Section 1702.308, Occupations
705-16   Code.
705-17         SECTION 14.639. Sections 1702.239(a), (b), and (d),
705-18   Occupations Code, are amended to conform to Section 5, Chapter 974,
705-19   Acts of the 76th Legislature, Regular Session, 1999, to read as
705-20   follows:
705-21         (a)  The commission [board] may require that an individual
705-22   employed as an alarm systems installer or security salesperson hold
705-23   a certification by a commission-approved [board-approved] training
705-24   program to renew an initial registration.  The commission [board]
705-25   may approve only nationally recognized training programs that
705-26   consist of at least 20 hours of classroom study in the areas of
705-27   work allowed by the registration. To be approved, a training
 706-1   program must offer at least two certification programs each year,
 706-2   sufficient to complete the requirements of this subsection, within
 706-3   100 miles of each county in the state that has a population of more
 706-4   than 500,000.
 706-5         (b)  The commission [board] may require an individual who has
 706-6   completed a training program under Subsection (a)  to pass an
 706-7   examination given by the commission [board] or by a person approved
 706-8   by the commission [board].  The commission [board] may approve
 706-9   examinations in conjunction with training programs approved under
706-10   Subsection (a).  The individual's performance on the examination
706-11   must demonstrate the individual's qualifications to perform the
706-12   duties allowed by the individual's registration.
706-13         (d)  If the commission [board] requires certification or
706-14   examination under this section, the commission [board] shall
706-15   implement rules to require that to renew a registration, an
706-16   individual who is employed as an alarm systems installer or a
706-17   security salesperson and who has already once renewed the
706-18   registration must obtain continuing education credits related to
706-19   the line of work for which the individual is licensed.  If the
706-20   commission [board] requires the continuing education, the director
706-21   must approve classes offered by nationally recognized
706-22   organizations, and participants in the classes must qualify
706-23   according to commission [board] rules.
706-24         SECTION 14.640. Section 1702.240(b), Occupations Code, is
706-25   amended to conform to Section 5, Chapter 974, Acts of the 76th
706-26   Legislature, Regular Session, 1999, to read as follows:
706-27         (b)  An employee of a license holder who is employed
 707-1   exclusively as an undercover agent is not required to register with
 707-2   the commission [board].
 707-3         SECTION 14.641. Section 1702.262, Occupations Code, is
 707-4   amended to conform to Section 5, Chapter 974, Acts of the 76th
 707-5   Legislature, Regular Session, 1999, to read as follows:
 707-6         Sec. 1702.262.  SELLERS OF CERTAIN DEVICES.  A person may
 707-7   sell a detection device or other device for preventing or detecting
 707-8   burglary if:
 707-9               (1)  the person does not install, repair, or maintain
707-10   detection devices;
707-11               (2)  the person holds a seller's certificate;
707-12               (3)  the person, or the manufacturer or distributor of
707-13   the device that the person sells, files with the commission [board]
707-14   a certificate evidencing insurance for liability for bodily injury
707-15   or property damage arising from faulty or defective products in an
707-16   amount of not less than $1 million combined single limit, provided
707-17   that the policy of insurance need not relate exclusively to
707-18   burglary devices;
707-19               (4)  the person, or the manufacturer or distributor of
707-20   the device that the person sells, files with the commission [board]
707-21   a surety bond executed by a surety company authorized to do
707-22   business in this state in the sum of $10,000 in favor of the state;
707-23   and
707-24               (5)  the person is not employed by a security services
707-25   contractor.
707-26         SECTION 14.642. Section 1702.263, Occupations Code, is
707-27   amended to conform to Section 5, Chapter 974, Acts of the 76th
 708-1   Legislature, Regular Session, 1999, to read as follows:
 708-2         Sec. 1702.263.  APPLICATION FOR SELLER'S CERTIFICATE.  (a)
 708-3   To obtain a seller's certificate, a person must:
 708-4               (1)  submit to the commission [board] an application
 708-5   that includes the person's full name, residence telephone number,
 708-6   date and place of birth, and social security number and two sets of
 708-7   classifiable fingerprints; and
 708-8               (2)  pay to the commission [board] a seller's
 708-9   certificate fee established by the commission [board] in an amount
708-10   not to exceed $25.
708-11         (b)  The commission [board] shall approve an application for
708-12   a seller's certificate and issue the certificate to the applicant
708-13   unless:
708-14               (1)  the background check of the applicant discloses a
708-15   felony conviction for which a full pardon has not been granted; or
708-16               (2)  any information provided in the application is
708-17   false.
708-18         SECTION 14.643. Section 1702.267, Occupations Code, is
708-19   amended to conform to Section 5, Chapter 974, Acts of the 76th
708-20   Legislature, Regular Session, 1999, to read as follows:
708-21         Sec. 1702.267.  SUSPENSION OR REVOCATION OF SELLER'S
708-22   CERTIFICATE.  On conviction under Section 1702.388 for a violation
708-23   of this subchapter, the commission [board] may revoke or suspend a
708-24   seller's certificate after a hearing conducted under Subchapter O.
708-25         SECTION 14.644. Section 1702.281, Occupations Code, is
708-26   amended to conform to  Section 5, Chapter 974, Acts of the 76th
708-27   Legislature, Regular Session, 1999, to read as follows:
 709-1         Sec. 1702.281.  NOTICE TO LAW ENFORCEMENT. The commission
 709-2   [board] shall provide to the sheriff of the county and the chief of
 709-3   police of the principal municipality of the county in which a
 709-4   person regulated under this chapter resides notice of the issuance,
 709-5   revocation, reinstatement, or expiration of a license,
 709-6   registration, or commission issued by the commission [board].
 709-7         SECTION 14.645. (a)  Section 1702.282, Occupations Code, is
 709-8   amended to conform to Sections 5, 30, and 55(6), Chapter 974, Acts
 709-9   of the 76th Legislature, Regular Session, 1999, to read as follows:
709-10         Sec. 1702.282.  CRIMINAL HISTORY CHECK. (a)  [The board shall
709-11   deny an application for a person who does not provide two complete
709-12   sets of fingerprints on forms prescribed by the board or fails to
709-13   pay a required fee.]
709-14         [(b)]  The commission [board] shall conduct a criminal
709-15   history check, including a check of any criminal history record
709-16   information maintained by the Federal Bureau of Investigation, in
709-17   the manner provided by Subchapter F, Chapter 411, Government Code,
709-18   on each applicant for a license, registration, [or] security
709-19   officer commission, letter of approval, permit, or certification.
709-20   An applicant is not eligible for a license, registration, [or]
709-21   commission, letter of approval, permit, or certification if the
709-22   check reveals that the applicant has committed an act that
709-23   constitutes grounds for the denial of the license, registration,
709-24   [or] commission, letter of approval, permit, or certification.
709-25   Each applicant shall include in the application two complete sets
709-26   of fingerprints on forms prescribed by the commission accompanied
709-27   by the fee set by the commission.
 710-1         (b) [(c)]  Before beginning employment as a commissioned
 710-2   security officer, the applicant must be approved by the commission
 710-3   [board] based on the results of the check under Subsection (a)
 710-4   [(b)].  To continue employment in a capacity regulated under this
 710-5   chapter other than as a commissioned security officer, the
 710-6   applicant must be approved by the commission [board] based on the
 710-7   results of the check under Subsection (a) [(b)] not later than the
 710-8   120th day after the date the applicant begins employment in that
 710-9   capacity.
710-10         (c) [(d)]  A license, registration, security officer
710-11   commission, letter of approval, [or] permit, or certification
710-12   issued by the commission [board] is conditional on the commission's
710-13   [board's] receipt of criminal history record information.
710-14         (b)  Section 30, Chapter 974, Acts of the 76th Legislature,
710-15   Regular Session, 1999, is repealed.
710-16         SECTION 14.646. Section 1702.284, Occupations Code, is
710-17   amended to conform to Section 5, Chapter 974, Acts of the 76th
710-18   Legislature, Regular Session, 1999, to read as follows:
710-19         Sec. 1702.284.  ALARM SYSTEMS RECORDS CONFIDENTIAL.
710-20   Information contained in alarm systems records maintained by a
710-21   governmental body that concerns the location of an alarm system,
710-22   the name of the occupant of an alarm system location, or the type
710-23   of alarm system used is confidential and may be disclosed only to
710-24   the commission [board] or as otherwise required by state law or
710-25   court order.
710-26         SECTION 14.647. (a)  Section 1702.301, Occupations Code, is
710-27   amended to conform to Sections 5 and 21, Chapter 974, Acts of the
 711-1   76th Legislature, Regular Session, 1999, to read as follows:
 711-2         Sec. 1702.301.  EXPIRATION. (a)  A license is valid for one
 711-3   year from the date of issuance.  A license expires at midnight on
 711-4   the last day of the 11th month after the month in which it is
 711-5   issued.
 711-6         (b)  A security officer commission expires on the second
 711-7   anniversary of the date the commission is issued.
 711-8         (c)  A personal protection officer authorization expires on
 711-9   the expiration date of the security officer commission under which
711-10   the individual's authorization is issued.
711-11         (d)  Registration as a private investigator, manager, branch
711-12   office manager, alarm systems installer, security consultant,
711-13   security salesperson, alarm systems monitor, or dog trainer expires
711-14   on the second anniversary of the date of registration.
711-15         (e)  [Notwithstanding Subsection (d), an initial registration
711-16   as an alarm systems installer or security salesperson expires on
711-17   the first anniversary of the date of registration if the board
711-18   requires registrants to be trained or tested under Section
711-19   1702.239.]
711-20         [(f)]  Registration as an owner, officer, partner, or
711-21   shareholder of a license holder expires on the second anniversary
711-22   of the date of registration.
711-23         (f) [(g)]  Registration as a noncommissioned security officer
711-24   expires on the second [fourth] anniversary of the date of
711-25   registration.
711-26         (g) [(h)]  A letter of authority, or a school approval or
711-27   school instructor approval letter issued by the commission [board],
 712-1   expires on the first anniversary of the date of issuance.
 712-2         (h) [(i)]  A license or registration issued under this
 712-3   chapter other than one specified in this section expires on the
 712-4   date specified by this chapter or by commission [board] rule.
 712-5         (b)  Section 21, Chapter 974, Acts of the 76th Legislature,
 712-6   Regular Session, 1999, is repealed.
 712-7         SECTION 14.648. Section 1702.302, Occupations Code, is
 712-8   amended to conform to Sections 5, 32, and 55(9), Chapter 974, Acts
 712-9   of the 76th Legislature, Regular Session, 1999, to read as follows:
712-10         Sec. 1702.302.  LICENSE RENEWAL. (a)  [The renewal period for
712-11   a license is the month preceding the month in which it expires.  At
712-12   least 30 days before the expiration date of a person's license, the
712-13   board shall send written notice of the impending expiration to the
712-14   person at the person's last known address according to board
712-15   records.]
712-16         [(b)]  A person who is otherwise eligible to renew a license
712-17   may renew an unexpired license by paying the required renewal fee
712-18   to the commission [board] before the expiration date of the
712-19   license.  A person whose license has expired may not engage in
712-20   activities that require a license until the license has been
712-21   renewed.
712-22         (b) [(c)]  A person whose license has been expired for 90
712-23   days or less may renew the license by paying to the commission a
712-24   [board the required] renewal fee [and a fee] that is equal to 1-1/2
712-25   times the normally required renewal fee [half of the amount of the
712-26   license examination fee].
712-27         (c) [(d)]  A person whose license has been expired for longer
 713-1   than 90 days but less than one year [two years] may renew the
 713-2   license by paying to the commission [board all unpaid renewal fees
 713-3   and] a renewal fee that is equal to two times the normally required
 713-4   renewal [amount of the license examination] fee.
 713-5         (d) [(e)]  A person whose license has been expired for one
 713-6   year [two years] or more [longer] may not renew the license.  The
 713-7   person may obtain a new license by [submitting to reexamination
 713-8   and] complying with the requirements and procedures, including the
 713-9   examination requirements, for obtaining an original license.
713-10         (e)  Not later than the 30th day before the date a person's
713-11   license is scheduled to expire, the commission shall send written
713-12   notice of the impending expiration to the person at the person's
713-13   last known address according to the commission's records.
713-14         SECTION 14.649. (a)  Section 1702.303, Occupations Code, is
713-15   amended to conform to Sections 5, 32, and 55(9), Chapter 974, Acts
713-16   of the 76th Legislature, Regular Session, 1999, to read as follows:
713-17         Sec. 1702.303.  RENEWAL OF EXPIRED LICENSE BY OUT-OF-STATE
713-18   PRACTITIONER. A [The board may renew without reexamination an
713-19   expired license of a] person who was licensed in this state, moved
713-20   to another state, and is currently licensed and has been in
713-21   practice in the other state for the two years preceding the date
713-22   the person applies for renewal may obtain a new license without
713-23   reexamination.  The person must pay to the commission [board] a fee
713-24   that is equal to two times the normally required renewal fee for
713-25   [amount of] the license [examination fee].
713-26         (b)  Section 32, Chapter 974, Acts of the 76th Legislature,
713-27   Regular Session, 1999, is repealed.
 714-1         SECTION 14.650. (a)  Section 1702.304, Occupations Code, is
 714-2   amended to conform to Sections 5, 33, and 55(10), Chapter 974, Acts
 714-3   of the 76th Legislature, Regular Session, 1999, to read as follows:
 714-4         Sec. 1702.304.  STAGGERED RENEWAL; PRORATION OF LICENSE
 714-5   [RENEWAL] FEE. The commission [board] by rule may adopt a system
 714-6   under which licenses expire on various dates during the year.  For
 714-7   the year in which the expiration date of a license is [may be]
 714-8   changed, the commission shall prorate license fees on a monthly
 714-9   basis [at the time of renewal] so that each [a] license holder pays
714-10   only that portion of the license [renewal] fee that is allocable to
714-11   the number of months during which the license is valid.  On renewal
714-12   of the license on the new expiration date, the total license
714-13   renewal fee is payable.
714-14         (b)  Section 33, Chapter 974, Acts of the 76th Legislature,
714-15   Regular Session, 1999, is repealed.
714-16         SECTION 14.651. (a)  Section 1702.307, Occupations Code, is
714-17   amended to conform to Sections 5, 27, 28, and 55(9), Chapter 974,
714-18   Acts of the 76th Legislature, Regular Session, 1999, to read as
714-19   follows:
714-20         Sec. 1702.307.  REGISTRATION RENEWAL. (a)  An individual who
714-21   is otherwise eligible to renew a registration may renew an
714-22   unexpired registration by paying the required renewal fee to the
714-23   commission before the expiration date of the registration.  An
714-24   individual whose registration has expired may not engage in
714-25   activities that require a registration until the registration has
714-26   been renewed.
714-27         (b)  An individual whose registration has been expired for 90
 715-1   days or less may renew the registration by paying to the commission
 715-2   a renewal fee that is equal to 1-1/2 times the normally required
 715-3   renewal fee.
 715-4         (c)  An individual whose registration has been expired for
 715-5   more than 90 days but less than one year may renew the registration
 715-6   by paying to the commission a renewal fee that is equal to two
 715-7   times the normally required renewal fee.
 715-8         (d)  An individual whose registration has been expired for
 715-9   one year or more may not renew the registration.  The individual
715-10   may obtain a new registration by complying with the requirements
715-11   and procedures, including any examination required by the
715-12   commission, for obtaining an original registration.
715-13         (e)  An individual who was registered in this state, moved to
715-14   another state, and is currently registered and has been in practice
715-15   in the other state for the two years preceding the date of
715-16   application may obtain a new registration without reexamination.
715-17   The individual must pay to the commission a fee that is equal to
715-18   two times the normally required renewal fee for the registration.
715-19         (f)  Not later than the 30th day [At least 30 days] before
715-20   the expiration date of an individual's registration, the commission
715-21   [board] shall send written notice of the impending expiration to
715-22   the individual at the individual's last known address according to
715-23   commission [board] records.
715-24         [(b)  On notification from the board the month before the
715-25   expiration date stated on the registrant's pocket card, the
715-26   registrant must file for renewal of the registration on a form
715-27   prescribed by the board.]
 716-1         (b)  Sections 27 and 28, Chapter 974, Acts of the 76th
 716-2   Legislature, Regular Session, 1999, are repealed.
 716-3         SECTION 14.652. (a)  Subchapter M, Chapter 1702, Occupations
 716-4   Code, is amended to conform to Sections 5, 11, 25, and 26, Chapter
 716-5   974, Acts of the 76th Legislature, Regular Session, 1999, by adding
 716-6   Sections 1702.308 and 1702.309 to read as follows:
 716-7         Sec. 1702.308.  CONTINUING EDUCATION. (a)  This section does
 716-8   not apply to a noncommissioned security officer.
 716-9         (b)  The commission shall recognize, prepare, or administer
716-10   continuing education programs for license holders, commissioned
716-11   security officers, and registrants.  The commission shall set the
716-12   minimum number of hours that must be completed and the types of
716-13   programs that may be offered.
716-14         (c)  A license holder, commissioned security officer, or
716-15   registrant must participate in the programs to the extent required
716-16   by the commission to keep the person's license, commission, or
716-17   registration.  A license holder, commissioned security officer, or
716-18   registrant shall submit evidence of compliance with the
716-19   commission's continuing education requirements in a manner
716-20   prescribed by the commission.
716-21         Sec. 1702.309.  SECURITY OFFICER COMMISSION RENEWAL. (a)  The
716-22   commission by rule shall develop a continuing education course in
716-23   handgun proficiency required for renewal of a security officer
716-24   commission.  Only a commission-approved instructor may administer
716-25   the continuing education course.  The course must include:
716-26               (1)  at least four hours of instruction on one or more
716-27   of the subjects listed in Section 1702.1675(g); and
 717-1               (2)  other information that the director determines is
 717-2   appropriate.
 717-3         (b)  A commissioned security officer must demonstrate the
 717-4   proficiency required under Section 1702.1685 within the 90-day
 717-5   period before the date the commission is renewed.
 717-6         (b)  Sections 11, 25, and 26, Chapter 974, Acts of the 76th
 717-7   Legislature, Regular Session, 1999, are repealed.
 717-8         SECTION 14.653. Sections 1702.321(b), (c), and (e),
 717-9   Occupations Code, are amended to conform to Section 5, Chapter 974,
717-10   Acts of the 76th Legislature, Regular Session, 1999, and to the
717-11   repeal and transfer by this Act of the substance of Section
717-12   1702.237, Occupations Code, to Section 1702.1675, Occupations Code,
717-13   to read as follows:
717-14         (b)  The provisions of this chapter relating to security
717-15   officer commissions apply to a person employed by a political
717-16   subdivision whose duties include serving as a security guard,
717-17   security watchman, or security patrolman on property owned or
717-18   operated by the political subdivision if the governing body of the
717-19   political subdivision files a written request with the commission
717-20   [board] for the commission [board] to issue a commission to the
717-21   political subdivision's employees with those duties.
717-22         (c)  The commission [board] may not charge a fee for issuing
717-23   a commission to an officer under Subsection (b).  The commission
717-24   [board] shall issue to the officer a pocket card designating the
717-25   political subdivision that employs the officer.
717-26         (e)  The commission [board] may approve a security officer
717-27   training program conducted by the political subdivision in
 718-1   accordance with Sections 1702.1675 and 1702.168 [and 1702.237].
 718-2         SECTION 14.654. Section 1702.322, Occupations Code, is
 718-3   amended to conform to Section 3, Chapter 974, Acts of the 76th
 718-4   Legislature, Regular Session, 1999, to read as follows:
 718-5         Sec. 1702.322.  LAW ENFORCEMENT PERSONNEL. This chapter does
 718-6   not apply to:
 718-7               (1)  a person who has full-time employment as a peace
 718-8   officer and who receives compensation for private employment on an
 718-9   individual or an independent contractor basis as a patrolman,
718-10   guard, extra job coordinator, or watchman if the officer:
718-11                     (A)  is employed in an employee-employer
718-12   relationship or employed on an individual contractual basis;
718-13                     (B)  is not in the employ of another peace
718-14   officer;
718-15                     (C)  is not a reserve peace officer; and
718-16                     (D)  works as a peace officer on the average of
718-17   at least 32 hours a week, is compensated by the state or a
718-18   political subdivision of the state at least at the minimum wage,
718-19   and is entitled to all employee benefits offered to a peace officer
718-20   by the state or political subdivision;
718-21               (2)  a reserve peace officer while the reserve officer
718-22   is performing guard, patrolman, or watchman duties for a county and
718-23   is being compensated solely by that county;
718-24               (3)  a peace officer acting in an official capacity in
718-25   responding to a burglar alarm or detection device; or
718-26               (4)  a person engaged in the business of electronic
718-27   monitoring of an individual as a condition of that individual's
 719-1   community supervision, parole, mandatory supervision, or release on
 719-2   bail, if the person does not perform any other service that
 719-3   requires a license under this chapter.
 719-4         SECTION 14.655. Section 1702.323, Occupations Code, is
 719-5   amended to conform to Sections 3 and 5, Chapter 974, Acts of the
 719-6   76th Legislature, Regular Session, 1999, by amending Subsections
 719-7   (a) and (c) and adding Subsection (d) to read as follows:
 719-8         (a)  Except as provided by Subsections [Subsection] (b) and
 719-9   (d), this chapter does not apply to an individual employed in an
719-10   employee-employer relationship exclusively and regularly by one
719-11   employer in connection with the affairs of the employer.
719-12         (c)  Although the security department of a private business
719-13   that hires or employs an individual as a private security officer
719-14   to possess a firearm in the course and scope of the individual's
719-15   duties is required to apply for a security officer commission for
719-16   the individual under this chapter, the security department of a
719-17   private business is not required to apply to the commission [board]
719-18   for any license under this chapter.
719-19         (d)  This chapter applies to an individual described by
719-20   Subsection (a) who:
719-21               (1)  works at a location that is open to the public;
719-22   and
719-23               (2)  in the course of employment:
719-24                     (A)  regularly comes into contact with the
719-25   public; and
719-26                     (B)  wears a uniform with any type of badge
719-27   commonly associated with security personnel or law enforcement or a
 720-1   patch or apparel with "security" or the name of the employer on the
 720-2   patch or apparel.
 720-3         SECTION 14.656. Section 1702.324(b), Occupations Code, is
 720-4   amended to conform to Section 3, Chapter 974, Acts of the 76th
 720-5   Legislature, Regular Session, 1999, to read as follows:
 720-6         (b)  This chapter does not apply to:
 720-7               (1)  a manufacturer or a manufacturer's authorized
 720-8   distributor who sells equipment to a license holder that is used in
 720-9   the operations for which the person is required to be licensed;
720-10               (2)  a person engaged exclusively in the business of
720-11   obtaining and providing information to:
720-12                     (A)  determine creditworthiness;
720-13                     (B)  collect debts; or
720-14                     (C)  ascertain the reliability of information
720-15   provided by [financial responsibility of] an applicant for
720-16   property, life, or disability insurance or an indemnity or surety
720-17   bond;
720-18               (3)  a person engaged exclusively in the business of
720-19   repossessing property that is secured by a mortgage or other
720-20   security interest;
720-21               (4)  a locksmith who:
720-22                     (A)  does not install or service detection
720-23   devices;
720-24                     (B)  does not conduct investigations; and
720-25                     (C)  is not a security services contractor;
720-26               (5)  a person who:
720-27                     (A)  is engaged in the business of psychological
 721-1   testing or other testing and interviewing services, including
 721-2   services to determine attitudes, honesty, intelligence,
 721-3   personality, and skills, for preemployment purposes; and
 721-4                     (B)  does not perform any other service that
 721-5   requires a license under this chapter;
 721-6               (6)  a person who:
 721-7                     (A)  is engaged in obtaining information that is
 721-8   a public record under Chapter 552, Government Code, regardless of
 721-9   whether the person receives compensation;
721-10                     (B)  is not a full-time employee, as defined by
721-11   Section 61.001, Labor Code, of a person licensed under this
721-12   chapter; and
721-13                     (C)  does not perform any other act that requires
721-14   a license under this chapter;
721-15               (7)  a licensed [registered] professional engineer
721-16   practicing engineering or directly supervising engineering practice
721-17   under The Texas Engineering Practice Act (Article 3271a, Vernon's
721-18   Texas Civil Statutes), including [and performing] forensic
721-19   analysis, burglar alarm system engineering, and necessary data
721-20   collection [engineering studies who does not:]
721-21                     [(A)  install or service detection devices;]
721-22                     [(B)  conduct nonengineering investigations; and]
721-23                     [(C)  act as a security services contractor];
721-24               (8)  an employee of a cattle association who inspects
721-25   livestock brands under the authority granted to the cattle
721-26   association by the Grain Inspection, Packers and Stockyards
721-27   Administration of the United States Department of Agriculture;
 722-1               (9)  a landman performing activities in the course and
 722-2   scope of the landman's business;
 722-3               (10)  an attorney while engaged in the practice of law
 722-4   [in performing the attorney's duties];
 722-5               (11)  a person who obtains a document for use in
 722-6   litigation under an authorization or subpoena issued for a written
 722-7   or oral deposition;
 722-8               [(12)  a person who:]
 722-9                     [(A)  by education, experience, or background has
722-10   specialized expertise or knowledge that would qualify or tend to
722-11   qualify the person as an expert witness, authorized to provide
722-12   opinions in proceedings conducted in a court, administrative
722-13   agency, or governing body of this state or of the United States, in
722-14   accordance with applicable rules; and]
722-15                     [(B)  does not perform any other service for
722-16   which a license is required under this chapter;] or
722-17               (12) [(13)]  an admitted insurer, insurance adjuster,
722-18   agent, or insurance broker licensed by the state, performing duties
722-19   in connection with insurance transacted by that person.
722-20         SECTION 14.657. Section 1702.325, Occupations Code, is
722-21   amended to conform to Section 3, Chapter 974, Acts of the 76th
722-22   Legislature, Regular Session, 1999, to read as follows:
722-23         Sec. 1702.325.  COMMON CARRIERS. This chapter does not apply
722-24   to:
722-25               (1)  a common carrier by rail engaged in interstate
722-26   commerce, regulated by state and federal authorities, and
722-27   transporting commodities essential to the national defense and to
 723-1   the general welfare and safety of the community; or
 723-2               (2)  an officer, employee, or agent of a common
 723-3   carrier, as defined by Section 153 of the federal Communications
 723-4   Act of 1934 (47 U.S.C. Section 153), and its subsequent amendments,
 723-5   while protecting the carrier or a user of the carrier's
 723-6   long-distance services from a fraudulent, unlawful, or abusive use
 723-7   of those long-distance services.
 723-8         SECTION 14.658. (a)  Subchapter N, Chapter 1702, Occupations
 723-9   Code, is amended to conform to Section 3, Chapter 974, Acts of the
723-10   76th Legislature, Regular Session, 1999, by adding Section 1702.330
723-11   to read as follows:
723-12         Sec. 1702.330.  SECURITY PERSONNEL OF PRIVATE INSTITUTION OF
723-13   HIGHER EDUCATION. This chapter does not apply to:
723-14               (1)  a person who is employed full-time by and is
723-15   commissioned as a campus security personnel employee by a private
723-16   institution of higher education under Section 51.212, Education
723-17   Code; or
723-18               (2)  a peace officer commissioned by an incorporated
723-19   municipality who is hired under Section 51.212, Education Code, on
723-20   a regular basis by a private institution of higher education while
723-21   that peace officer is operating within the scope of the peace
723-22   officer's employment with the institution of higher education.
723-23         (b)  Section 3, Chapter 974, Acts of the 76th Legislature,
723-24   Regular Session, 1999, is repealed.
723-25         SECTION 14.659. Section 1702.361, Occupations Code, is
723-26   amended to conform to Sections 5 and 12, Chapter 974,  Acts of the
723-27   76th Legislature, Regular Session, 1999, to read as follows:
 724-1         Sec. 1702.361.  DENIAL AND DISCIPLINARY POWERS OF COMMISSION
 724-2   [BOARD]; GROUNDS. (a)  Except as provided by Section 1702.3615, the
 724-3   commission [The board], for conduct described by Subsection (b),
 724-4   may:
 724-5               (1)  revoke, [or] suspend, or refuse to renew a
 724-6   license, registration, or security officer commission;
 724-7               (2)  reprimand a license holder, registrant, or
 724-8   commissioned security officer;
 724-9               [(3)  deny an application for a license, registration,
724-10   or security officer commission or for renewal of the license,
724-11   registration, or commission;] or
724-12               (3) [(4)]  place on probation a person whose license,
724-13   registration, or security officer commission has been suspended.
724-14         (b)  The commission [board] shall take disciplinary action
724-15   described by Subsection (a) on proof:
724-16               (1)  that the applicant, license holder, registrant, or
724-17   commissioned security officer has:
724-18                     (A)  violated this chapter or a commission rule
724-19   adopted under this chapter;
724-20                     (B)  [been convicted of a felony;]
724-21                     [(C)]  been convicted of a Class B misdemeanor or
724-22   equivalent offense if the fifth anniversary of the date of the
724-23   conviction has occurred [involving moral turpitude committed after
724-24   the date of application for the license, registration, or
724-25   commission];
724-26                     (C) [(D)]  engaged in fraud, deceit, or
724-27   misrepresentation; or
 725-1                     (D) [(E)]  made a material misstatement in an
 725-2   application for or renewal of a license, registration, or
 725-3   commission; or
 725-4               (2)  that the license holder of a registrant or
 725-5   commissioned security officer has submitted to the commission
 725-6   [board] sufficient evidence that the registrant or commissioned
 725-7   security officer:
 725-8                     (A)  engaged in fraud or deceit while employed by
 725-9   the license holder; or
725-10                     (B)  committed theft while performing work as a
725-11   registrant or commissioned security officer.
725-12         (c)  The commission may place on probation a person whose
725-13   license is suspended.  If a person's suspension of a license is
725-14   probated, the commission may require the person:
725-15               (1)  to report regularly to the commission on matters
725-16   that are the basis of the suspension;
725-17               (2)  to limit practice to the areas prescribed by the
725-18   commission; or
725-19               (3)  to continue or review professional education until
725-20   the person attains a degree of skill satisfactory to the commission
725-21   in those areas that are the basis of the probation.
725-22         SECTION 14.660. (a)  Subchapter O, Chapter 1702, Occupations
725-23   Code, is amended to conform to Sections 5 and 13, Chapter 974, Acts
725-24   of the 76th Legislature, Regular Session, 1999, by adding Section
725-25   1702.3615 to read as follows:
725-26         Sec. 1702.3615.  REVOCATION OR REFUSAL FOR CERTAIN OFFENSES.
725-27   (a)  Except for an application approved by the commission under
 726-1   Subsection (b), the commission shall revoke or refuse to renew a
 726-2   registration, license, or security officer commission if the
 726-3   applicant, license holder, registrant, or commissioned security
 726-4   officer has been convicted of a:
 726-5               (1)  Class A misdemeanor or equivalent offense or a
 726-6   greater offense; or
 726-7               (2)  Class B misdemeanor or equivalent offense if the
 726-8   fifth anniversary of the date of conviction has not occurred.
 726-9         (b)  An applicant may appeal to the commission the denial of
726-10   a license, registration, or security officer commission application
726-11   if:
726-12               (1)  the sole basis of the denial is a conviction for a
726-13   Class A misdemeanor or equivalent or a greater offense;
726-14               (2)  the 20th anniversary of the conviction has
726-15   occurred; and
726-16               (3)  the applicant waives the applicant's right to a
726-17   hearing before the State Office of Administrative Hearings.
726-18         (c)  A proceeding under Subsection (b) is governed by Chapter
726-19   2001, Government Code.  A hearing must be held at a regular meeting
726-20   of the commission.
726-21         (d)  Notwithstanding any other provision of this chapter, the
726-22   commission may approve the application.
726-23         (b)  Section 13, Chapter 974, Acts of the 76th Legislature,
726-24   Regular Session, 1999, is repealed.
726-25         SECTION 14.661. Section 1702.362, Occupations Code, is
726-26   amended to conform to Section 5, Chapter 974, Acts of the 76th
726-27   Legislature, Regular Session, 1999, to read as follows:
 727-1         Sec. 1702.362.  FAILURE TO FILE REQUIRED NOTICE. The
 727-2   commission [board] may suspend or revoke a license if the license
 727-3   holder fails to notify the commission [board] as required by
 727-4   Section 1702.121 that a manager has ceased to be the manager of the
 727-5   license holder.
 727-6         SECTION 14.662. Section 1702.363, Occupations Code, is
 727-7   amended to conform to Sections 5 and 12, Chapter 974, Acts of the
 727-8   76th Legislature, Regular Session, 1999, to read as follows:
 727-9         Sec. 1702.363.  APPLICATION OF ADMINISTRATIVE PROCEDURE ACT.
727-10   Except as provided by Sections 1702.3615(b) and [Section] 1702.364,
727-11   a person regulated under this chapter against whom the commission
727-12   has taken action is entitled to a hearing before the State Office
727-13   of Administrative Hearings.  A proceeding under this section is a
727-14   contested case that is [proceedings for the denial, suspension, or
727-15   revocation of a license, registration, or security officer
727-16   commission or for the probation of a person are] governed by
727-17   Chapter 2001, Government Code.
727-18         SECTION 14.663. Sections 1702.364(a), (b), (c), and (f),
727-19   Occupations Code, are amended to conform to Sections 5 and 12,
727-20   Chapter 974, Acts of the 76th Legislature, Regular Session, 1999,
727-21   to read as follows:
727-22         (a)  On receiving written notice from the Texas Department of
727-23   Public Safety or another law enforcement agency that an individual
727-24   has been arrested for or charged with a Class B misdemeanor or
727-25   equivalent offense [involving moral turpitude] or a greater offense
727-26   [felony], the commission [board] may:
727-27               (1)  summarily deny the individual's application for a
 728-1   license, registration, or [for a] security officer commission; or
 728-2               (2)  summarily suspend the individual's license,
 728-3   registration, or security officer commission.
 728-4         (b)  To initiate a proceeding to take action under Subsection
 728-5   (a), the commission [board] must serve notice to the individual.
 728-6   The notice must:
 728-7               (1)  inform the individual of the right to a
 728-8   preliminary hearing before the commission [board];
 728-9               (2)  state the alleged violations that constitute
728-10   grounds for summary suspension; and
728-11               (3)  be personally served on the individual or sent to
728-12   the individual by certified or registered mail, return receipt
728-13   requested, to the individual's mailing address as it appears in the
728-14   commission's [board's] records.
728-15         (c)  The suspension is effective at the time notice is
728-16   served. If notice is served in person, the individual shall
728-17   immediately surrender to the commission [board] the registration,
728-18   commission, pocket card, or other identification issued by the
728-19   commission [board].  If the notice is served by mail, the
728-20   individual shall immediately return to the commission [board] the
728-21   registration, commission, pocket card, or other identification
728-22   issued by the commission [board].
728-23         (f)  Chapter 2001, Government Code, does not apply to a
728-24   proceeding before the commission [board] under this section except
728-25   for a final administrative hearing.
728-26         SECTION 14.664. Section 1702.365, Occupations Code, is
728-27   amended to conform to Section 5, Chapter 974, Acts of the 76th
 729-1   Legislature, Regular Session, 1999, to read as follows:
 729-2         Sec. 1702.365.  ABDUCTION OF CHILD. The commission [board]
 729-3   shall revoke a person's license, registration, or security officer
 729-4   commission or deny a person's application for, or renewal of, a
 729-5   license, registration, or security officer commission on proof that
 729-6   the person or an agent of the person has, after the date of
 729-7   application for a license, registration, or security officer
 729-8   commission, abducted or attempted to abduct by force or the threat
 729-9   of force or by misrepresentation, stealth, or unlawful entry a
729-10   child who at the time of the abduction or attempt is under the care
729-11   and control of a person who:
729-12               (1)  has custody or physical possession of the child
729-13   under a court order; or
729-14               (2)  is exercising the care and control with the
729-15   consent of a person who has custody or physical possession of the
729-16   child under a court order.
729-17         SECTION 14.665. Section 1702.366, Occupations Code, is
729-18   repealed to conform to the repeal of the law from which that
729-19   section was derived by Section 12, Chapter 974, Acts of the 76th
729-20   Legislature, Regular Session, 1999.
729-21         SECTION 14.666. Sections 1702.367(a), (c), (d), and (e),
729-22   Occupations Code, are amended to conform to Section 5, Chapter 974,
729-23   Acts of the 76th Legislature, Regular Session, 1999, to read as
729-24   follows:
729-25         (a)  For an investigation conducted under this chapter, the
729-26   commission [board] may issue a subpoena to compel the attendance of
729-27   a witness or the production of a pertinent record or document.  The
 730-1   hearings officer may administer oaths and require testimony or
 730-2   evidence to be given under oath.
 730-3         (c)  A person required to testify or to produce a record or
 730-4   document on any matter properly under inquiry by the commission
 730-5   [board] who refuses to testify or to produce the record or document
 730-6   on the ground that the testimony or the production of the record or
 730-7   document would incriminate or tend to incriminate the person is
 730-8   nonetheless required to testify or to produce the record or
 730-9   document.  A person who is required to testify or to produce a
730-10   record or document under this subsection is not subject to
730-11   indictment or prosecution for a transaction, matter, or thing
730-12   concerning which the person truthfully testifies or produces
730-13   evidence.
730-14         (d)  If a witness refuses to obey a subpoena or to give
730-15   evidence relevant to proper inquiry by the commission [board], the
730-16   commission [board] may petition a district court of the county in
730-17   which the hearing is held to compel the witness to obey the
730-18   subpoena or to give the evidence.  The court shall immediately
730-19   issue process to the witness and shall hold a hearing on the
730-20   petition as soon as possible.
730-21         (e)  An investigator employed by the commission [board] may
730-22   take statements under oath in an investigation of a matter covered
730-23   by this chapter.
730-24         SECTION 14.667. (a)  Section 1702.368, Occupations Code, is
730-25   amended to conform to Sections 5 and 34, Chapter 974, Acts of the
730-26   76th Legislature, Regular Session, 1999, to read as follows:
730-27         Sec. 1702.368.  NOTIFICATION OF CONVICTION FOR CERTAIN
 731-1   OFFENSES [NOTICE FROM DEPARTMENT OF PUBLIC SAFETY]. The Texas
 731-2   Department of Public Safety shall notify the commission [board] and
 731-3   the police department of the municipality and the sheriff's
 731-4   department of the county in which a person licensed, registered, or
 731-5   commissioned under this chapter resides of the conviction of the
 731-6   person for a Class B misdemeanor or equivalent offense or a greater
 731-7   offense [crime involving moral turpitude or a felony].
 731-8         (b)  Section 34, Chapter 974, Acts of the 76th Legislature,
 731-9   Regular Session, 1999, is repealed.
731-10         SECTION 14.668. (a)  Subchapter O, Chapter 1702, Occupations
731-11   Code, is amended to conform to Section 3, Chapter 1465, Acts of the
731-12   76th Legislature, Regular Session, 1999, by adding Section
731-13   1702.3705 to read as follows:
731-14         Sec. 1702.3705.  PROHIBITION AGAINST CERTAIN POLITICAL
731-15   SUBDIVISIONS ACTING AS ALARM SYSTEMS COMPANY. (a)  Except as
731-16   provided by Subsection (b), a political subdivision may not offer
731-17   residential alarm system sales, service, installation, or
731-18   monitoring unless it has been providing monitoring services to
731-19   residences within the boundaries of the political subdivision as of
731-20   September 1, 1999.  Any fee charged by the political subdivision
731-21   may not exceed the cost of the monitoring.
731-22         (b)  A political subdivision may:
731-23               (1)  offer service, installation, or monitoring for
731-24   property owned by the political subdivision or another political
731-25   subdivision;
731-26               (2)  allow for the response of an alarm or detection
731-27   device by a law enforcement agency or by a law enforcement officer
 732-1   acting in an official capacity;
 732-2               (3)  offer monitoring in connection with a criminal
 732-3   investigation; or
 732-4               (4)  offer monitoring to a financial institution, as
 732-5   defined by Section 59.301, Finance Code, that requests, in writing,
 732-6   that the political subdivision provide monitoring service to the
 732-7   financial institution.
 732-8         (c)  The limitations of Subsection (a) do not apply to a
 732-9   political subdivision in a county with a population of less than
732-10   80,000 or in a political subdivision where monitoring is not
732-11   otherwise provided or available.
732-12         (b)  Section 3, Chapter 1465, Acts of the 76th Legislature,
732-13   Regular Session, 1999, is repealed.
732-14         SECTION 14.669. (a)  Section 1702.371, Occupations Code, is
732-15   amended to conform to Sections 12 and 14, Chapter 974, Acts of the
732-16   76th Legislature, Regular Session, 1999, to read as follows:
732-17         Sec. 1702.371.  CONVICTION OF CERTAIN CRIMES. In this
732-18   subchapter, a person is considered to be convicted of an offense
732-19   that is a Class B misdemeanor [involving moral turpitude] or
732-20   greater offense, or an equivalent offense, [a felony] if a court
732-21   enters a judgment against the person for committing a Class B
732-22   misdemeanor [involving moral turpitude] or greater offense, or an
732-23   equivalent offense, [a felony] under the laws of this state,
732-24   another state, or the United States, including a conviction:
732-25               (1)  [a conviction] in which a person is placed on and
732-26   subsequently discharged from community supervision; and
732-27               (2)  [a conviction] for which a person is pardoned,
 733-1   unless a full [the] pardon has been [is] granted [expressly because
 733-2   of proof of the person's innocence].
 733-3         (b)  Sections 12 and 14, Chapter 974, Acts of the 76th
 733-4   Legislature, Regular Session, 1999, are repealed.
 733-5         SECTION 14.670. Section 1702.381(b), Occupations Code, is
 733-6   amended to conform to Section 5, Chapter 974, Acts of the 76th
 733-7   Legislature, Regular Session, 1999, to read as follows:
 733-8         (b)  The commission [board] must give a person 30 days'
 733-9   notice of the requirement to obtain a license before the civil
733-10   penalty may be assessed.
733-11         SECTION 14.671. Section 1702.382, Occupations Code, is
733-12   amended to conform to Section 5, Chapter 974, Acts of the 76th
733-13   Legislature, Regular Session, 1999, to read as follows:
733-14         Sec. 1702.382.  INJUNCTION. (a)  The commission [board] may
733-15   institute an action in the name of the commission [board] against a
733-16   person to enjoin a violation by the person of this chapter or a
733-17   commission [board] rule.
733-18         (b)  The commission [board] is not required to allege or
733-19   prove that an adequate remedy at law does not exist or that
733-20   substantial or irreparable damage would result from the continued
733-21   violation to sustain an action under this section.
733-22         SECTION 14.672. Section 1702.383, Occupations Code, is
733-23   amended to conform to Section 5, Chapter 974, Acts of the 76th
733-24   Legislature, Regular Session, 1999, to read as follows:
733-25         Sec. 1702.383.  ACTION FOR CIVIL PENALTY OR INJUNCTION. If a
733-26   person has violated a provision of this chapter for which a penalty
733-27   is imposed under Section 1702.381, the commission [board] may
 734-1   institute a civil suit in a Travis County district court for
 734-2   injunctive relief under Section 1702.382 or for assessment and
 734-3   recovery of the civil penalty.
 734-4         SECTION 14.673. (a)  Subchapter P, Chapter 1702, Occupations
 734-5   Code, is amended to conform to Section 1, Chapter 388, and Section
 734-6   31, Chapter 974, Acts of the 76th Legislature, Regular Session,
 734-7   1999, by adding Section 1702.3863 to read as follows:
 734-8         Sec. 1702.3863.  UNAUTHORIZED CONTRACT WITH BAIL BOND SURETY;
 734-9   OFFENSE. (a)  A person commits an offense if the person contracts
734-10   with or is employed by a bail bond surety as defined by Chapter
734-11   1704 to secure the appearance of a person who has violated Section
734-12   38.10, Penal Code, unless the person is:
734-13               (1)  a peace officer;
734-14               (2)  an individual licensed as a private investigator
734-15   or the manager of a licensed investigations company; or
734-16               (3)  a commissioned security officer employed by a
734-17   licensed guard company.
734-18         (b)  An offense under Subsection (a) is a state jail felony. 
734-19         (b)  Section 31, Chapter 974, Acts of the 76th Legislature,
734-20   Regular Session, 1999, is repealed.
734-21         SECTION 14.674. (a)  Subchapter P, Chapter 1702, Occupations
734-22   Code, is amended to conform to Section 8, Chapter 1506, Acts of the
734-23   76th Legislature, Regular Session, 1999, by adding Section
734-24   1702.3867 to read as follows:
734-25         Sec. 1702.3867.  EXECUTION OF CAPIAS OR ARREST WARRANT;
734-26   OFFENSE. (a)  A private investigator executing a capias or an
734-27   arrest warrant on behalf of a bail bond surety may not:
 735-1               (1)  enter a residence without the consent of the
 735-2   occupants;
 735-3               (2)  execute the capias or warrant without written
 735-4   authorization from the surety;
 735-5               (3)  wear, carry, or display any uniform, badge,
 735-6   shield, or other insignia or emblem that implies that the private
 735-7   investigator is an employee, officer, or agent of the federal
 735-8   government, the state, or a political subdivision of the state; or
 735-9               (4)  notwithstanding Section 9.51, Penal Code, use
735-10   deadly force.
735-11         (b)  Notwithstanding Subsection (a)(3), a private
735-12   investigator may display identification that indicates that the
735-13   person is acting on behalf of a bail bond surety.
735-14         (c)  A private investigator executing a capias or an arrest
735-15   warrant on behalf of a bail bond surety shall immediately take the
735-16   person arrested to:
735-17               (1)  if the arrest is made in the county in which the
735-18   capias or warrant was issued:
735-19                     (A)  the county jail for that county if:
735-20                           (i)  the offense is a Class A or Class B
735-21   misdemeanor or a felony; or
735-22                           (ii)  the offense is a Class C misdemeanor
735-23   and the capias or warrant was issued by a magistrate of that
735-24   county; or
735-25                     (B)  the municipal jail for the appropriate
735-26   municipality if the offense is a Class C misdemeanor and the capias
735-27   or warrant was issued by a magistrate of the municipality; or
 736-1               (2)  if the arrest is made in a county other than the
 736-2   county in which the capias or warrant was issued, the county jail
 736-3   for the county in which the arrest is made.
 736-4         (d)  A person commits an offense if the person violates this
 736-5   section.  An offense under this section is a state jail felony.
 736-6         (b)  Section 8, Chapter 1506, Acts of the 76th Legislature,
 736-7   Regular Session, 1999, is repealed.
 736-8         SECTION 14.675. Section 1702.387(a), Occupations Code, is
 736-9   amended to conform to Section 5, Chapter 974, Acts of the 76th
736-10   Legislature, Regular Session, 1999, to read as follows:
736-11         (a)  A person commits an offense if the person fails to
736-12   surrender or immediately return to the commission [board] the
736-13   person's registration, commission, pocket card, or other
736-14   identification issued to the person by the commission [board] on
736-15   notification of a summary suspension or summary denial under
736-16   Section 1702.364.
736-17         SECTION 14.676. (a)  Chapter 1702, Occupations Code, is
736-18   amended to conform to Sections 5 and 36, Chapter 974, Acts of the
736-19   76th Legislature, Regular Session, 1999, by adding Subchapter Q to
736-20   read as follows:
736-21                  SUBCHAPTER Q.  ADMINISTRATIVE PENALTY
736-22         Sec. 1702.401.  IMPOSITION OF PENALTY. In addition to any
736-23   other disciplinary action taken by the commission, the commission
736-24   may impose an administrative penalty on a person licensed,
736-25   commissioned, or registered under this chapter who violates this
736-26   chapter or a rule or order adopted under this chapter.
736-27         Sec. 1702.402.  AMOUNT OF PENALTY. (a)  Each day a violation
 737-1   continues or occurs is a separate violation for purposes of
 737-2   imposing a penalty. The amount of each separate violation may not
 737-3   exceed $200.
 737-4         (b)  The amount of a violation shall be based on:
 737-5               (1)  the seriousness of the violation, including the
 737-6   nature, circumstances, extent, and gravity of the violation;
 737-7               (2)  the economic harm to property or the public caused
 737-8   by the violation;
 737-9               (3)  the history of previous violations;
737-10               (4)  the amount necessary to deter a future violation;
737-11               (5)  efforts to correct the violation; and
737-12               (6)  any other matter that justice may require.
737-13         Sec. 1702.403.  REPORT AND NOTICE OF VIOLATION AND PENALTY.
737-14   (a)  If the director determines that a violation occurred, the
737-15   director may issue to the commission a report stating:
737-16               (1)  the facts on which the determination is based; and
737-17               (2)  the director's recommendation on the imposition of
737-18   the penalty, including a recommendation on the amount of the
737-19   penalty.
737-20         (b)  Not later than the 14th day after the date the report is
737-21   issued, the director shall give written notice of the report to the
737-22   person.
737-23         (c)  The notice must:
737-24               (1)  include a brief summary of the alleged violation;
737-25               (2)  state the amount of the recommended penalty; and
737-26               (3)  inform the person of the person's right to a
737-27   hearing on the occurrence of the violation, the amount of the
 738-1   penalty, or both.
 738-2         Sec. 1702.404.  PENALTY TO BE PAID OR HEARING REQUESTED. (a)
 738-3   Not later than the 20th day after the date the person receives the
 738-4   notice, the person in writing may:
 738-5               (1)  accept the determination and recommended penalty
 738-6   of the director; or
 738-7               (2)  make a request for a hearing on the occurrence of
 738-8   the violation, the amount of the penalty, or both.
 738-9         (b)  If the person accepts the determination and recommended
738-10   penalty of the director, the commission by order shall approve the
738-11   determination and impose the recommended penalty.
738-12         Sec. 1702.405.  HEARING. (a)  If the person requests a
738-13   hearing or fails to respond in a timely manner to the notice, the
738-14   director shall set a hearing and give written notice of the hearing
738-15   to the person.  An administrative law judge of the State Office of
738-16   Administrative Hearings shall hold the hearing.
738-17         (b)  The administrative law judge shall make findings of fact
738-18   and conclusions of law and promptly issue to the commission a
738-19   proposal for a decision about the occurrence of the violation and
738-20   the amount of a proposed penalty.
738-21         Sec. 1702.406.  DECISION BY COMMISSION. (a)  Based on the
738-22   findings of fact, conclusions of law, and proposal for a decision,
738-23   the commission by order may:
738-24               (1)  find that a violation occurred and impose a
738-25   penalty; or
738-26               (2)  find that a violation did not occur.
738-27         (b)  The notice of the commission's order given to the person
 739-1   must include a statement of the right of the person to judicial
 739-2   review of the order.
 739-3         Sec. 1702.407.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.
 739-4   Not later than the 30th day after the date the commission's order
 739-5   becomes final, the person shall:
 739-6               (1)  pay the penalty; or
 739-7               (2)  file a petition for judicial review contesting the
 739-8   occurrence of the violation, the amount of the penalty, or both.
 739-9         Sec. 1702.408.  STAY OF ENFORCEMENT OF PENALTY. (a)  Within
739-10   the 30-day period prescribed by Section 1702.407, a person who
739-11   files a petition for judicial review may:
739-12               (1)  stay enforcement of the penalty by:
739-13                     (A)  paying the penalty to the court for
739-14   placement in an escrow account; or
739-15                     (B)  giving the court a supersedeas bond approved
739-16   by the court that:
739-17                           (i)  is for the amount of the penalty; and
739-18                           (ii)  is effective until all judicial
739-19   review of the commission's order is final; or
739-20               (2)  request the court to stay enforcement of the
739-21   penalty by:
739-22                     (A)  filing with the court a sworn affidavit of
739-23   the person stating that the person is financially unable to pay the
739-24   penalty and is financially unable to give the supersedeas bond; and
739-25                     (B)  giving a copy of the affidavit to the
739-26   director by certified mail.
739-27         (b)  If the director receives a copy of an affidavit under
 740-1   Subsection (a)(2), the director may file with the court, not later
 740-2   than the fifth day after the date the copy is received, a contest
 740-3   to the affidavit.  The court shall hold a hearing on the facts
 740-4   alleged in the affidavit as soon as practicable and shall stay the
 740-5   enforcement of the penalty on finding that the alleged facts are
 740-6   true.  The person who files an affidavit has the burden of proving
 740-7   that the person is financially unable to pay the penalty and to
 740-8   give a supersedeas bond.
 740-9         Sec. 1702.409.  COLLECTION OF PENALTY. (a)  If the person
740-10   does not pay the penalty and the enforcement of the penalty is not
740-11   stayed, the penalty may be collected.
740-12         (b)  The attorney general may sue to collect the penalty.
740-13         Sec. 1702.410.  DECISION BY COURT. (a)  If the court sustains
740-14   the finding that a violation occurred, the court may uphold or
740-15   reduce the amount of the penalty and order the person to pay the
740-16   full or reduced amount of the penalty.
740-17         (b)  If the court does not sustain the finding that a
740-18   violation occurred, the court shall order that a penalty is not
740-19   owed.
740-20         Sec. 1702.411.  REMITTANCE OF PENALTY AND INTEREST. (a)  If
740-21   the person paid the penalty and if the amount of the penalty is
740-22   reduced or the penalty is not upheld by the court, the court shall
740-23   order, when the court's judgment becomes final, that the
740-24   appropriate amount plus accrued interest be remitted to the person.
740-25         (b)  The interest accrues at the rate charged on loans to
740-26   depository institutions by the New York Federal Reserve Bank.
740-27         (c)  The interest shall be paid for the period beginning on
 741-1   the date the penalty is paid and ending on the date the penalty is
 741-2   remitted.
 741-3         Sec. 1702.412.  RELEASE OF BOND. (a)  If the person gave a
 741-4   supersedeas bond and the penalty is not upheld by the court, the
 741-5   court shall order, when the court's judgment becomes final, the
 741-6   release of the bond.
 741-7         (b)  If the person gave a supersedeas bond and the amount of
 741-8   the penalty is reduced, the court shall order the release of the
 741-9   bond after the person pays the reduced amount.
741-10         Sec. 1702.413.  ADMINISTRATIVE PROCEDURE. A proceeding to
741-11   impose the penalty is considered to be a contested case under
741-12   Chapter 2001, Government Code.
741-13         (b)  Sections 5 and 36, Chapter 974, Acts of the 76th
741-14   Legislature, Regular Session, 1999, are repealed.
741-15                 PART 20.  CHANGES RELATING TO TITLE 13,
741-16                            OCCUPATIONS CODE
741-17         SECTION 14.701. (a)  Section 2151.002, Occupations Code, is
741-18   amended to conform to Section 1, Chapter 1364, Acts of the 76th
741-19   Legislature, Regular Session, 1999, by amending Subdivision (2),
741-20   redesignating existing Subdivision (4) as Subdivision (5), and
741-21   adding new Subdivisions (4) and (6) to read as follows:
741-22               (2)  "Class A amusement ride" means an amusement ride
741-23   with a fixed location designed primarily for use by children
741-24   younger than 13 years of age.
741-25               (4)  "Commissioner" means the commissioner of
741-26   insurance.
741-27               (5) [(4)]  "Department" means the Texas Department of
 742-1   Insurance.
 742-2               (6)  "Mobile amusement ride" means an amusement ride
 742-3   that is designed or adapted to be moved from one location to
 742-4   another and is not fixed at a single location.
 742-5         (b)  Section 1, Chapter 1364, Acts of the 76th Legislature,
 742-6   Regular Session, 1999, is repealed.
 742-7         SECTION 14.702. (a)  Section 2151.051, Occupations Code, is
 742-8   amended to conform to Section 2, Chapter 1364, Acts of the 76th
 742-9   Legislature, Regular Session, 1999, to read as follows:
742-10         Sec. 2151.051.  GENERAL POWERS AND DUTIES. The commissioner
742-11   [department] shall administer and enforce this chapter.
742-12         (b)  Section 2151.052(a), Occupations Code, is amended to
742-13   conform to Section 2, Chapter 1364, Acts of the 76th Legislature,
742-14   Regular Session, 1999, to read as follows:
742-15         (a)  The commissioner [department] shall establish reasonable
742-16   and necessary fees, in an amount not to exceed $40 [$20] per year,
742-17   for each amusement ride covered by this chapter.
742-18         (c)  Section 2, Chapter 1364, Acts of the 76th Legislature,
742-19   Regular Session, 1999, is repealed.
742-20         SECTION 14.703. (a)  Section 2151.101(a), Occupations Code,
742-21   is amended to conform to Section 3, Chapter 1364, Acts of the 76th
742-22   Legislature, Regular Session, 1999, to read as follows:
742-23         (a)  A person may not operate an amusement ride unless the
742-24   person:
742-25               (1)  has had the amusement ride inspected at least once
742-26   a year by an insurer or a person with whom the insurer has
742-27   contracted;
 743-1               (2)  obtains a written certificate from the insurer or
 743-2   person with whom the insurer has contracted stating that the
 743-3   amusement ride:
 743-4                     (A)  has been inspected;
 743-5                     (B)  meets the standards for insurance coverage;
 743-6   and
 743-7                     (C)  is covered by the insurance required by
 743-8   Subdivision (3);
 743-9               (3)  has an insurance policy currently in effect
743-10   written by an insurance company authorized to do business in this
743-11   state or by a surplus lines insurer, as defined by Article 1.14-2,
743-12   Insurance Code, or has an independently procured policy subject to
743-13   Article 1.14-1, Insurance Code, insuring the owner or operator
743-14   against liability for injury to persons arising out of the use of
743-15   the amusement ride in an amount of not less than:
743-16                     (A)  $100,000 per occurrence with a $300,000
743-17   annual aggregate for Class A amusement rides; and
743-18                     (B)  $1,000,000 per occurrence for Class B
743-19   amusement rides;
743-20               (4)  files with the commissioner [department], as
743-21   required by this chapter, the inspection certificate and the
743-22   insurance policy or a photocopy of the certificate or policy
743-23   authorized by the commissioner [department]; and
743-24               (5)  files with each sponsor, lessor, landowner, or
743-25   other person responsible for the amusement ride being offered for
743-26   use by the public a photocopy of the inspection certificate and the
743-27   insurance policy required by this subsection [certificate stating
 744-1   that the insurance required by Subdivision (3) is in effect].
 744-2         (b)  Section 2151.102(a), Occupations Code, is amended to
 744-3   conform to Section 3, Chapter 1364, Acts of the 76th Legislature,
 744-4   Regular Session, 1999, to read as follows:
 744-5         (a)  The inspection required by Section 2151.101(a) must test
 744-6   for stress-related and wear-related damage of the critical parts of
 744-7   a ride that the manufacturer of the amusement ride [department]
 744-8   determines:
 744-9               (1)  are reasonably subject to failure as the result of
744-10   stress and wear; and
744-11               (2)  could cause injury to a member of the public as a
744-12   result of a failure.
744-13         (c)  Subchapter C, Chapter 2151, Occupations Code, is amended
744-14   to conform to Section 3, Chapter 1364, Acts of the 76th
744-15   Legislature, Regular Session, 1999, by adding Sections 2151.1021,
744-16   2151.1022, 2151.105, and 2151.106 to read as follows:
744-17         Sec. 2151.1021.  INSPECTION REQUIREMENTS FOR MOBILE AMUSEMENT
744-18   RIDES.  (a)  The commissioner shall adopt rules requiring operators
744-19   of mobile amusement rides to perform inspections of mobile
744-20   amusement rides, including rules requiring daily inspections of
744-21   safety restraints.
744-22         (b)  Rules adopted under this section may apply to specific
744-23   rides of specific manufacturers.
744-24         (c)  The commissioner shall prescribe forms for inspections
744-25   required under this section and shall require records of the
744-26   inspections to be made available for inspection by any
744-27   municipality, county, or state law enforcement officials at any
 745-1   location at which an amusement ride is operated.
 745-2         Sec. 2151.1022.  REQUIRED RECORDS OF GOVERNMENTAL ACTIONS.
 745-3   (a)  A person who operates an amusement ride in this state shall
 745-4   maintain accurate records of any governmental action taken in any
 745-5   state relating to that particular amusement ride, including an
 745-6   inspection resulting in the repair or replacement of equipment used
 745-7   in the operation of the amusement ride.
 745-8         (b)  The operator shall file with the commissioner quarterly
 745-9   a report, on a form designed by the commissioner, describing each
745-10   governmental action taken in the quarter covered by the report for
745-11   which the operator is required by Subsection (a) to maintain
745-12   records.  A report is not required in any quarter in which no
745-13   reportable governmental action was taken in any state in which the
745-14   person operated the amusement ride.
745-15         (c)  A person who operates an amusement ride shall maintain
745-16   for not less than two years at any location where the ride is
745-17   operated, for inspection by a municipal, county, or state law
745-18   enforcement official, a photocopy of any quarterly report required
745-19   under this section or Section 2151.103 to be filed with the
745-20   commissioner.
745-21         Sec. 2151.105.  SIGNAGE REQUIREMENTS.  (a)  The commissioner
745-22   shall adopt rules requiring that a sign be posted to inform the
745-23   public how to report an amusement ride that appears to be unsafe or
745-24   to report an amusement ride operator who appears to be violating
745-25   the law.
745-26         (b)  The rules must require the sign to be posted at the
745-27   principal entrance to the site at which an amusement ride is
 746-1   located or at any location on that site at which tickets for an
 746-2   amusement ride are available.
 746-3         Sec. 2151.106.  MINIMUM STANDARDS.  (a)  An amusement ride
 746-4   covered by this chapter that is sold, maintained, or operated in
 746-5   this state must comply with standards established by the American
 746-6   Society of Testing and Materials (ASTM) as of May 1, 1999.  Those
 746-7   standards are minimum standards.
 746-8         (b)  To the extent that the standards of the American Society
 746-9   of Testing and Materials conflict with the requirements of this
746-10   chapter, the more stringent requirement or standard applies.
746-11         (d)  Section 2151.103(c), Occupations Code, is amended to
746-12   conform to Section 3, Chapter 1364, Acts of the 76th Legislature,
746-13   Regular Session, 1999, to read as follows:
746-14         (c)  The operator shall file an injury report with the
746-15   commissioner [department] on a quarterly basis.  The report shall
746-16   be made on a form prescribed by the commissioner [department] and
746-17   shall include a description of each injury caused by a ride that
746-18   results in death or requires medical treatment.
746-19         (e)  Section 3, Chapter 1364, Acts of the 76th Legislature,
746-20   Regular Session, 1999, is repealed.
746-21         SECTION 14.704. (a)  Section 2151.151, Occupations Code, is
746-22   amended to conform to Section 4, Chapter 1364, Acts of the 76th
746-23   Legislature, Regular Session, 1999, to read as follows:
746-24         Sec. 2151.151.  INJUNCTION.  The district attorney of a
746-25   county in which an amusement ride is operated or, on request of the
746-26   commissioner of insurance, the attorney general or an agent of the
746-27   attorney general, may seek an injunction against a person operating
 747-1   an amusement ride in violation of this chapter or in violation of a
 747-2   rule adopted by the commissioner under Section 2151.1021 or
 747-3   2151.105.
 747-4         (b)  Section 4, Chapter 1364, Acts of the 76th Legislature,
 747-5   Regular Session, 1999, is repealed.
 747-6         SECTION 14.705. (a)  Subchapter D, Chapter 2151, Occupations
 747-7   Code, is amended to conform to Sections 5, 7, and 15, Chapter 1364,
 747-8   Acts of the 76th Legislature, Regular Session, 1999, by amending
 747-9   Section 2151.152 and adding Sections 2151.1525-2151.1527 to read as
747-10   follows:
747-11         Sec. 2151.152.  OTHER [LOCAL] ENFORCEMENT ACTIONS.  (a)  A
747-12   municipal, county, or state law enforcement official may determine
747-13   compliance with a provision of Subchapter C, other than Section
747-14   2151.104, in conjunction with the commissioner and may institute an
747-15   action in a court of competent jurisdiction to enforce this
747-16   chapter.
747-17         (b)  A municipal, county, or state law enforcement official
747-18   may enter and inspect without notice any amusement ride at any time
747-19   to ensure public safety.
747-20         (c)  The operator of an amusement ride shall immediately
747-21   provide the inspection certificate and the insurance policy
747-22   required by Section 2151.101 to a municipal, county, or state law
747-23   enforcement official requesting the information.  A photocopy of
747-24   the inspection certificate or insurance policy may be provided
747-25   instead of the certificate or policy.
747-26         (d)  Performance or nonperformance by a municipal, county, or
747-27   state law enforcement official of any action authorized by this
 748-1   chapter is a discretionary act  [A municipal or county law
 748-2   enforcement official may determine compliance with Section
 748-3   2151.101, 2151.102, or 2151.103 in conjunction with the department
 748-4   and may commence an action to enforce this chapter].
 748-5         Sec. 2151.1525.  PROHIBITION OF AMUSEMENT RIDE OPERATION. (a)
 748-6   Except as provided by Subsection (e), a municipal, county, or state
 748-7   law enforcement official may immediately prohibit operation of an
 748-8   amusement ride if:
 748-9               (1)  the operator of the amusement ride is unable to
748-10   provide the documents or a photocopy of the documents required by
748-11   Section 2151.152(c);
748-12               (2)  the law enforcement official reasonably believes
748-13   the amusement ride is not in compliance with Section 2151.101; or
748-14               (3)  the operation of the amusement ride, conduct of a
748-15   person operating the amusement ride, conduct of a person assembling
748-16   the amusement ride if it is a mobile amusement ride, or any other
748-17   circumstance causes the law enforcement official to reasonably
748-18   believe that the amusement ride is unsafe or the safety of a
748-19   passenger on the amusement ride is threatened.
748-20         (b)  If the operation of an amusement ride is prohibited
748-21   under Subsection (a)(1) or (2), a person may not operate the
748-22   amusement ride unless:
748-23               (1)  the operator presents to the appropriate
748-24   municipal, county, or state law enforcement official proof of
748-25   compliance with Section 2151.101; or
748-26               (2)  the commissioner or the commissioner's designee
748-27   determines that on the date the amusement ride's operation was
 749-1   prohibited the operator had on file with the board the documents
 749-2   required by Section 2151.101 and issues a written statement
 749-3   permitting the amusement ride to resume operation.
 749-4         (c)  If on the date an amusement ride's operation is
 749-5   prohibited under Subsection (a)(3) the amusement ride is not in
 749-6   compliance with Section 2151.101, a person may not operate the
 749-7   amusement ride until after the person subsequently complies with
 749-8   Section 2151.101.
 749-9         (d)  If on the date an amusement ride's operation is
749-10   prohibited under Subsection (a)(3) the amusement ride is in
749-11   compliance with Section 2151.101, a person may not operate the
749-12   amusement ride until:
749-13               (1)  on-site corrections are made;
749-14               (2)  an order from a district judge, county judge,
749-15   judge of a county court at law, justice of the peace, or municipal
749-16   judge permits the amusement ride to resume operation; or
749-17               (3)  an insurance company insuring the amusement ride
749-18   on the date the amusement ride's operation was prohibited:
749-19                     (A)  reinspects the amusement ride in the same
749-20   manner required by Section 2151.101; and
749-21                     (B)  delivers to the commissioner or the
749-22   commissioner's designee and the appropriate law enforcement
749-23   official a reinspection certificate:
749-24                           (i)  stating that the required reinspection
749-25   has occurred;
749-26                           (ii)  stating that the amusement ride meets
749-27   coverage standards and is covered by insurance in compliance with
 750-1   Section 2151.101; and
 750-2                           (iii)  explaining the necessary repairs, if
 750-3   any, that have been made to the amusement ride after its operation
 750-4   was prohibited.
 750-5         (e)  Subsection (a) does not apply to an amusement ride with
 750-6   a fixed location and operated at an amusement park that was
 750-7   attended by more than 200,000 customers in the year preceding the
 750-8   inspection under Section 2151.152(b).
 750-9         Sec. 2151.1526.  PROHIBITION OF MOBILE AMUSEMENT RIDE
750-10   OPERATION. (a)  Except as provided by Subsection (b) or (c), a
750-11   mobile amusement ride on which a death occurs may not be operated. 
750-12         (b)  If a mobile amusement ride was in compliance with
750-13   Section 2151.101 when its operation was initially prohibited under
750-14   Subsection (a), a person may resume operating the mobile amusement
750-15   ride only after an insurance company insuring the amusement ride on
750-16   the date its operation was prohibited:
750-17               (1)  reinspects the amusement ride in the same manner
750-18   required under Section 2151.101; and
750-19               (2)  delivers to the commissioner or the commissioner's
750-20   designee a reinspection certificate:
750-21                     (A)  stating that the required reinspection has
750-22   occurred;
750-23                     (B)  stating that the amusement ride meets
750-24   coverage standards and is covered by insurance in compliance with
750-25   Section 2151.101; and
750-26                     (C)  explaining the necessary repairs, if any,
750-27   that have been made to the amusement ride after its operation was
 751-1   prohibited.
 751-2         (c)  If a mobile amusement ride was not in compliance with
 751-3   Section 2151.101 when its operation was initially prohibited under
 751-4   Subsection (a), a person may resume operating the mobile amusement
 751-5   ride only after the person subsequently complies with Section
 751-6   2151.101.
 751-7         Sec. 2151.1527.  RELIEF FROM PROHIBITION ORDER.  The owner or
 751-8   operator of the amusement ride may file suit for relief from a
 751-9   prohibition under Section 2151.1525 or 2151.1526 in a district
751-10   court in the county in which the amusement ride was located when
751-11   the prohibition against operation occurred.
751-12         (b)  Sections 5 and 7, Chapter 1364, Acts of the 76th
751-13   Legislature, Regular Session, 1999, are repealed.
751-14         SECTION 14.706. (a)  Section 2151.153, Occupations Code, is
751-15   amended to conform to Section 6, Chapter 1364, Acts of the 76th
751-16   Legislature, Regular Session, 1999, by amending Subsections (a) and
751-17   (c) and adding Subsection (e) to read as follows:
751-18         (a)  A person commits an offense if the person fails to
751-19   comply with any requirement of:
751-20               (1)  Section 2151.101, 2151.102, [and] 2151.103,
751-21   2151.1525(b), (c), or (d), or 2151.1526(a); or
751-22               (2)  a rule adopted by the commissioner under Section
751-23   2151.1021 or 2151.105.
751-24         (c)  An offense under this section is a Class B [C]
751-25   misdemeanor.
751-26         (e)  The prosecuting attorney in a case in which a person is
751-27   convicted of an offense under this section shall report the offense
 752-1   to the department not later than the 90th day after the date of the
 752-2   conviction.
 752-3         (b)  Section 6, Chapter 1364, Acts of the 76th Legislature,
 752-4   Regular Session, 1999, is repealed.
 752-5         SECTION 14.707. Sections 49.01(5) and (6), Penal Code, are
 752-6   amended to correct references to read as follows:
 752-7               (5)  "Amusement ride" has the meaning assigned by
 752-8   Section 2151.002, Occupations Code [Section 2, Article 21.60,
 752-9   Insurance Code].
752-10               (6)  "Mobile amusement ride" has the meaning assigned
752-11   by Section 2151.002, Occupations Code [Section 2, Article 21.60,
752-12   Insurance Code].
752-13         SECTION 14.708. (a)  Subchapter B, Chapter 2154, Occupations
752-14   Code, is amended to conform to Section 4, Chapter 1244, Acts of the
752-15   76th Legislature, Regular Session, 1999, by adding Section 2154.055
752-16   to read as follows:
752-17         Sec. 2154.055.  FIREWORKS SAFETY AND EDUCATION PROGRAM. (a)
752-18   The commissioner shall establish a fireworks safety and education
752-19   program.
752-20         (b)  The program:
752-21               (1)  shall provide information relating to the proper
752-22   and safe use of fireworks and the dangers of the improper use of
752-23   fireworks; and
752-24               (2)  may include any method of communicating the need
752-25   for safe use of fireworks and the dangers of improper use.
752-26         (c)  The program shall be administered by the advisory
752-27   council established under Section 2154.054.  The commissioner must
 753-1   approve a program that the advisory council proposes to present.
 753-2         (d)  To fund the program, in addition to any other license or
 753-3   permit fees:
 753-4               (1)  the holder of a retail permit issued under Section
 753-5   2154.202 shall pay, on issuance or renewal of the permit, a fee in
 753-6   the amount of $10; and
 753-7               (2)  the holder of a manufacturer's, distributor's, or
 753-8   jobber's license issued under Section 2154.151, 2154.152, or
 753-9   2154.153 shall pay, on issuance or renewal of the license, a fee in
753-10   the amount of $250.
753-11         (e)  Money collected under Subsection (d) may be used only by
753-12   the commissioner for the purposes of this section.
753-13         (b)  Section 4, Chapter 1244, Acts of the 76th Legislature,
753-14   Regular Session, 1999, is repealed.
753-15         SECTION 14.709. (a)  Section 2154.303, Occupations Code, is
753-16   amended to conform to Section 1, Chapter 720, Acts of the 76th
753-17   Legislature, Regular Session, 1999, to read as follows:
753-18         Sec. 2154.303.  PENALTIES.  (a)  A person commits an offense
753-19   if the person violates  Section 2154.101(b), (c)(2), or (d),
753-20   2154.151(e), or 2154.201(a), (b)(2), or (c) or Subchapter F.
753-21         (b)  Except as provided by Subsection (c), an [An] offense
753-22   under this section is a Class B misdemeanor.
753-23         (c)  A violation of Section 2154.251(a)(1), (2), (3), (4), or
753-24   (5) that results in property damage in an amount of less than $200
753-25   and does not result in bodily injury or death is a Class C
753-26   misdemeanor.
753-27         (d) [(c)]  Each day a violation occurs or continues
 754-1   constitutes a separate offense.
 754-2         (e) [(d)]  Venue under this section is in the county in which
 754-3   the offense is committed or in Travis County.
 754-4         (f) [(e)]  If the commissioner determines that a violation of
 754-5   this chapter creates a threat to the public safety, the
 754-6   commissioner may bring suit in the district court of the county in
 754-7   which the person who committed the offense resides or has an office
 754-8   to enjoin the person from engaging in the prohibited activity.  The
 754-9   commissioner is not required to give bond as a condition to the
754-10   issuance of injunctive relief.
754-11         (b)  Section 1, Chapter 720, Acts of the 76th Legislature,
754-12   Regular Session, 1999, is repealed.
754-13         PART 21.  CROSS-REFERENCE AND OTHER CONFORMING CHANGES
754-14         SECTION 14.721. Section 63.034, Agriculture Code, is amended
754-15   to read as follows:
754-16         Sec. 63.034.  REFUSAL OR REVOCATION OF PERMIT. Following
754-17   notice and a hearing, the service may revoke, suspend, annul, or
754-18   amend an existing permit or may refuse to issue a permit if it
754-19   finds that the permittee or applicant has:
754-20               (1)  been convicted of a crime for which a permit may
754-21   be revoked, suspended, annulled, amended, or refused under Chapter
754-22   53, Occupations Code [Article 6252-13c, Revised Statutes];
754-23               (2)  refused or after notice failed to comply with this
754-24   chapter and rules adopted under this chapter; or
754-25               (3)  used fraudulent or deceptive practices in
754-26   attempting evasion of this chapter or a rule adopted under this
754-27   chapter.
 755-1         SECTION 14.722. Section 63.035, Agriculture Code, is amended
 755-2   to read as follows:
 755-3         Sec. 63.035.  REFUSAL OR REVOCATION OF REGISTRATION.
 755-4   Following notice and a hearing, the service may revoke, suspend,
 755-5   annul, or amend an existing registration of or may refuse a
 755-6   registration to a commercial fertilizer if the service finds that:
 755-7               (1)  the commercial fertilizer:
 755-8                     (A)  is not in compliance with this chapter or a
 755-9   rule adopted under this chapter; or
755-10                     (B)  contains a pesticide as defined by Chapter
755-11   76 of this code that has not been registered in accordance with
755-12   that chapter; or
755-13               (2)  the registrant or applicant has:
755-14                     (A)  been convicted of a crime for which
755-15   registration may be revoked, suspended, annulled, amended, or
755-16   refused under Chapter 53, Occupations Code [Article 6252-13c,
755-17   Revised Statutes];
755-18                     (B)  refused or after notice failed to comply
755-19   with this chapter and rules adopted under this chapter; or
755-20                     (C)  used fraudulent or deceptive practices in
755-21   attempted evasion of this chapter or a rule adopted under this
755-22   chapter.
755-23         SECTION 14.723. Section 141.025, Agriculture Code, is amended
755-24   to read as follows:
755-25         Sec. 141.025.  REFUSAL OR REVOCATION OF LICENSE. Following
755-26   notice and a hearing, the service may revoke, suspend, annul, or
755-27   amend an existing license or may refuse to issue a license if it
 756-1   finds that the licensee or applicant has:
 756-2               (1)  been convicted of a crime for which a license may
 756-3   be revoked, suspended, annulled, amended, or refused under Chapter
 756-4   53, Occupations Code [Article 6252-13c, Revised Statutes];
 756-5               (2)  refused or after notice failed to comply with this
 756-6   chapter and rules adopted under this chapter; or
 756-7               (3)  used fraudulent or deceptive practices in
 756-8   attempting evasion of this chapter or a rule adopted under this
 756-9   chapter.
756-10         SECTION 14.724. Section 5.07(d), Alcoholic Beverage Code, is
756-11   repealed because that section is obsolete.
756-12         SECTION 14.725. Section 11.61(e), Alcoholic Beverage Code, is
756-13   amended to read as follows:
756-14         (e)  Except as provided by Subsection (f), the commission or
756-15   administrator shall cancel an original or renewal permit if it is
756-16   found, after notice and hearing, that the permittee knowingly
756-17   allowed a person to possess a firearm in a building on the licensed
756-18   premises.  This subsection does not apply to a person:
756-19               (1)  who holds a security officer commission issued
756-20   under Chapter 1702, Occupations Code [by the Texas Board of Private
756-21   Investigators and Private Security Agencies], if:
756-22                     (A)  the person is engaged in the performance of
756-23   the person's duties as a security officer;
756-24                     (B)  the person is wearing a distinctive uniform;
756-25   and
756-26                     (C)  the weapon is in plain view;
756-27               (2)  who is a peace officer;
 757-1               (3)  who is a permittee or an employee of a permittee
 757-2   if the person is supervising the operation of the premises; or
 757-3               (4)  who possesses a concealed handgun of the same
 757-4   category the person is licensed to carry under Subchapter H,
 757-5   Chapter 411, Government Code, unless the person is on the premises
 757-6   of a business described by Section 46.035(b)(1), Penal Code.
 757-7         SECTION 14.726. Section 61.71(f), Alcoholic Beverage Code, is
 757-8   amended to read as follows:
 757-9         (f)  Except as provided by Subsection (g), the commission or
757-10   administrator shall cancel an original or renewal dealer's
757-11   on-premises or off-premises license if it is found, after notice
757-12   and hearing, that the licensee knowingly allowed a person to
757-13   possess a firearm in a building on the licensed premises.  This
757-14   subsection does not apply to a person:
757-15               (1)  who holds a security officer commission issued
757-16   under Chapter 1702, Occupations Code [by the Texas Board of Private
757-17   Investigators and Private Security Agencies], if:
757-18                     (A)  the person is engaged in the performance of
757-19   the person's duties as a security officer;
757-20                     (B)  the person is wearing a distinctive uniform;
757-21   and
757-22                     (C)  the weapon is in plain view;
757-23               (2)  who is a peace officer;
757-24               (3)  who is a licensee or an employee of a licensee if
757-25   the person is supervising the operation of the premises; or
757-26               (4)  who possesses a concealed handgun of the same
757-27   category the person is licensed to carry under Subchapter H,
 758-1   Chapter 411, Government Code, unless the person is on the premises
 758-2   of a business described by Section 46.035(b)(1), Penal Code.
 758-3         SECTION 14.727. Section 101.74(a), Alcoholic Beverage Code,
 758-4   is amended to read as follows:
 758-5         (a)  An organization licensed to conduct bingo under Chapter
 758-6   2001, Occupations Code, [the Bingo Enabling Act (Article 179d,
 758-7   Vernon's Texas Civil Statutes)] may not offer an alcoholic beverage
 758-8   as a bingo prize or as a door prize at a bingo occasion.
 758-9         SECTION 14.728. Section 9.102(a)(20), Business & Commerce
758-10   Code, is amended to read as follows:
758-11               (20)  "Consignment" means a transaction, regardless of
758-12   its form, in which a person delivers goods to a merchant for the
758-13   purpose of sale and:
758-14                     (A)  the merchant:
758-15                           (i)  deals in goods of that kind under a
758-16   name other than the name of the person making delivery;
758-17                           (ii)  is not an auctioneer; and
758-18                           (iii)  is not generally known by its
758-19   creditors to be substantially engaged in selling the goods of
758-20   others;
758-21                     (B)  with respect to each delivery, the aggregate
758-22   value of the goods is $1,000 or more at the time of delivery;
758-23                     (C)  the goods are not consumer goods immediately
758-24   before delivery;
758-25                     (D)  the transaction does not create a security
758-26   interest that secures an obligation; and
758-27                     (E)  the transaction does not involve delivery of
 759-1   a work of art to an art dealer, as provided by Chapter 2101,
 759-2   Occupations Code [the Artists' Consignment Act (Article 9018,
 759-3   Vernon's Texas Civil Statutes)].
 759-4         SECTION 14.729. Section 15.50(b), Business & Commerce Code,
 759-5   is amended to read as follows:
 759-6         (b)  A covenant not to compete is enforceable against a
 759-7   person licensed as a physician by the Texas State Board of Medical
 759-8   Examiners if such covenant complies with the following
 759-9   requirements:
759-10               (1)  the covenant must:
759-11                     (A)  not deny the physician access to a list of
759-12   his patients whom he had seen or treated within one year of
759-13   termination of the contract or employment;
759-14                     (B)  provide access to medical records of the
759-15   physician's patients upon authorization of the patient and any
759-16   copies of medical records for a reasonable fee as established by
759-17   the Texas State Board of Medical Examiners under Section 159.008,
759-18   Occupations Code [5.08(o), Medical Practice Act (Article 4495b,
759-19   Vernon's Texas Civil Statutes)]; and
759-20                     (C)  provide that any access to a list of
759-21   patients or to patients' medical records after termination of the
759-22   contract or employment shall not require such list or records to be
759-23   provided in a format different than that by which such records are
759-24   maintained except by mutual consent of the parties to the contract;
759-25               (2)  the covenant must provide for a buy out of the
759-26   covenant by the physician at a reasonable price or, at the option
759-27   of either party, as determined by a mutually agreed upon arbitrator
 760-1   or, in the case of an inability [inabilility] to agree, an
 760-2   arbitrator of the court whose decision shall be binding on the
 760-3   parties; and
 760-4               (3)  the covenant must provide that the physician will
 760-5   not be prohibited from providing continuing care and treatment to a
 760-6   specific patient or patients during the course of an acute illness
 760-7   even after the contract or employment has been terminated.
 760-8         SECTION 14.730. Section 38.053, Business & Commerce Code, is
 760-9   amended to read as follows:
760-10         Sec. 38.053.  PERSONS OR ITEMS REGULATED BY OTHER LAW. This
760-11   chapter does not apply to:
760-12               (1)  a person offering or selling a security that has
760-13   been qualified for sale under Section 7, The Securities Act
760-14   (Article 581-7, Vernon's Texas Civil Statutes), or that is subject
760-15   to an exemption under Section 5 or 6 of that Act;
760-16               (2)  a publicly traded corporation registered with the
760-17   Securities and Exchange Commission or the State Securities Board,
760-18   or a subsidiary or agent of the corporation;
760-19               (3)  a person licensed under the Insurance Code if the
760-20   solicited transaction is governed by the Insurance Code;
760-21               (4)  a supervised financial institution or parent,
760-22   subsidiary, or affiliate of a supervised financial institution;
760-23               (5)  a person or affiliate of a person whose business
760-24   is regulated by the Public Utility Commission of Texas, except that
760-25   this chapter applies to a person or affiliate of a person who is
760-26   regulated by the Public Utility Commission of Texas only with
760-27   respect to one or more automated dial announcing devices;
 761-1               (6)  a person subject to the control or licensing
 761-2   regulations of the Federal Communications Commission;
 761-3               (7)  a person selling a contractual plan regulated by
 761-4   the Federal Trade Commission trade regulation on use of negative
 761-5   option plans by sellers in commerce under 16 C.F.R. Part 425;
 761-6               (8)  a person subject to the filing requirements of
 761-7   Chapter 1803, Occupations Code [920, Acts of the 73rd Legislature,
 761-8   Regular Session, 1993 (Article 9023c, Vernon's Texas Civil
 761-9   Statutes)]; or
761-10               (9)  a person soliciting a transaction regulated by the
761-11   Commodity Futures Trading Commission if the person is registered or
761-12   temporarily licensed for that activity with the Commodity Futures
761-13   Trading Commission under the Commodity Exchange Act (7 U.S.C.
761-14   Section 1 et seq.) and the registration or license has not expired
761-15   or been suspended or revoked.
761-16         SECTION 14.731. Section 81.001(2), Civil Practice and
761-17   Remedies Code, is amended to read as follows:
761-18               (2)  "Mental health services provider" means an
761-19   individual, licensed or unlicensed, who performs or purports to
761-20   perform mental health services, including a:
761-21                     (A)  licensed social worker as defined by Section
761-22   505.002, Occupations [50.001, Human Resources] Code;
761-23                     (B)  chemical dependency counselor as defined by
761-24   Section 504.001, Occupations Code [1, Chapter 635, Acts of the 72nd
761-25   Legislature, Regular Session, 1991 (Article 4512o, Vernon's Texas
761-26   Civil Statutes)];
761-27                     (C)  licensed professional counselor as defined
 762-1   by Section 503.002, Occupations Code [2, Licensed Professional
 762-2   Counselor Act (Article 4512g, Vernon's Texas Civil Statutes)];
 762-3                     (D)  licensed marriage and family therapist as
 762-4   defined by Section 502.002, Occupations Code [2, Licensed Marriage
 762-5   and Family Therapist Act (Article 4512c-1, Vernon's Texas Civil
 762-6   Statutes)];
 762-7                     (E)  member of the clergy;
 762-8                     (F)  physician who is practicing medicine as
 762-9   defined by Section 151.002, Occupations Code [1.03, Medical
762-10   Practice Act (Article 4495b, Vernon's Texas Civil Statutes)];
762-11                     (G)  psychologist offering psychological services
762-12   as defined by Section 501.003, Occupations Code [2, Psychologists'
762-13   Certification and Licensing Act (Article 4512c, Vernon's Texas
762-14   Civil Statutes)]; or
762-15                     (H)  special officer for mental health assignment
762-16   certified under Section 1701.404, Occupations [415.037, Government]
762-17   Code.
762-18         SECTION 14.732. Section 84.003(5), Civil Practice and
762-19   Remedies Code, is amended to read as follows:
762-20               (5)  "Volunteer health care provider" means an
762-21   individual who voluntarily provides health care services without
762-22   compensation or expectation of compensation and who is:
762-23                     (A)  an individual who is licensed to practice
762-24   medicine under Subtitle B, Title 3, Occupations Code [the Medical
762-25   Practice Act (Article 4495b, Vernon's Texas Civil Statutes)];
762-26                     (B)  a retired physician who is eligible to
762-27   provide health care services, including a retired physician who is
 763-1   licensed but exempt from paying the required annual registration
 763-2   fee under Section 156.002, Occupations Code [3.01(g), Medical
 763-3   Practice Act (Article 4495b, Vernon's Texas Civil Statutes)];
 763-4                     (C)  a physician assistant licensed under Chapter
 763-5   204, Occupations Code, [the Physician Assistant Licensing Act
 763-6   (Article 4495b-1, Vernon's Texas Civil Statutes)] or a retired
 763-7   physician assistant who is eligible to provide health care services
 763-8   under the law of this state;
 763-9                     (D)  a registered nurse, including an advanced
763-10   nurse practitioner, licensed under Chapter 301, Occupations Code
763-11   [7, Title 71, Revised Statutes], or a retired registered nurse,
763-12   including a retired advanced nurse practitioner, who is eligible to
763-13   provide health care services under the law of this state;
763-14                     (E)  a licensed vocational nurse licensed under
763-15   Chapter 302, Occupations Code [118, Acts of the 52nd Legislature,
763-16   Regular Session, 1951 (Article 4528c, Vernon's Texas Civil
763-17   Statutes)], or a retired licensed vocational nurse who is eligible
763-18   to provide health care services under the law of this state;
763-19                     (F)  a pharmacist licensed under Subtitle J,
763-20   Title 3, Occupations Code, [the Texas Pharmacy Act (Article
763-21   4542a-1, Vernon's Texas Civil Statutes)] or a retired pharmacist
763-22   who is eligible to provide health care services under the law of
763-23   this state;
763-24                     (G)  a podiatrist licensed under Chapter 202,
763-25   Occupations Code [11, Title 71, Revised Statutes], or a retired
763-26   podiatrist who is eligible to provide health care services under
763-27   the law of this state;
 764-1                     (H)  a dentist licensed under Subtitle D, Title
 764-2   3, Occupations Code, [the Dental Practice Act (Chapter 9, Title 71,
 764-3   Revised Statutes)] or a retired dentist who is eligible to provide
 764-4   health care services under the law of this state;
 764-5                     (I)  a dental hygienist licensed under Subtitle
 764-6   D, Title 3, Occupations Code [Chapter 475, Acts of the 52nd
 764-7   Legislature, Regular Session, 1951 (Article 4551e, Vernon's Texas
 764-8   Civil Statutes)], or a retired dental hygienist who is eligible to
 764-9   provide health care services under the law of this state; or
764-10                     (J)  an optometrist or therapeutic optometrist
764-11   licensed under Chapter 351, Occupations Code, [the Texas Optometry
764-12   Act (Article 4552-1.01 et seq., Vernon's Texas Civil Statutes)] or
764-13   a retired optometrist or therapeutic optometrist who is eligible to
764-14   provide health care services under the law of this state.
764-15         SECTION 14.733. Article 23.05(b), Code of Criminal Procedure,
764-16   is amended to read as follows:
764-17         (b)  A capias issued under this article may be executed by a
764-18   peace officer or by a private investigator licensed under Chapter
764-19   1702, Occupations Code [the Private Investigators and Private
764-20   Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
764-21   Statutes)].
764-22         SECTION 14.734. Article 26.05(f), Code of Criminal Procedure,
764-23   is amended to read as follows:
764-24         (f)  Reimbursement of expenses incurred for purposes of
764-25   investigation or expert testimony may be paid directly to a private
764-26   investigator licensed under Chapter 1702, Occupations Code, [the
764-27   Private Investigators and Private Security Agencies Act (Article
 765-1   4413(29bb), Vernon's Texas Civil Statutes)] or to an expert witness
 765-2   in the manner designated by appointed counsel and approved by the
 765-3   court.
 765-4         SECTION 14.735. Article 26.052(l), Code of Criminal
 765-5   Procedure, is amended to read as follows:
 765-6         (l)  An attorney appointed under this article to represent a
 765-7   defendant at trial or on direct appeal is compensated as provided
 765-8   by Article 26.05 from county funds.  Advance payment of expenses
 765-9   anticipated or reimbursement of expenses incurred for purposes of
765-10   investigation or expert testimony may be paid directly to a private
765-11   investigator licensed under Chapter 1702, Occupations Code, [the
765-12   Private Investigators and Private Security Agencies Act (Article
765-13   4413(29bb), Vernon's Texas Civil Statutes)] or to an expert witness
765-14   in the manner designated by appointed counsel and approved by the
765-15   court.
765-16         SECTION 14.736. Section 1(a), Article 46.04, Code of Criminal
765-17   Procedure, as added by Chapter 1512, Acts of the 76th Legislature,
765-18   Regular Session, 1999, is amended to read as follows:
765-19         (a)  A patient transported from a jail or detention facility
765-20   to a mental health facility or a residential care facility shall be
765-21   transported by a special officer for mental health assignment
765-22   certified under Section 1701.404, Occupations [415.037, Government]
765-23   Code, or by a sheriff or constable.
765-24         SECTION 14.737. Article 49.01(5), Code of Criminal Procedure,
765-25   is amended to read as follows:
765-26               (5)  "Physician" means a practicing doctor of medicine
765-27   or doctor of osteopathic medicine who is licensed by the Texas
 766-1   State Board of Medical Examiners under Subtitle B, Title 3,
 766-2   Occupations Code [the Medical Practice Act (Article 4495b, Vernon's
 766-3   Texas Civil Statutes)].
 766-4         SECTION 14.738. Section 61.601(1), Education Code, is amended
 766-5   to read as follows:
 766-6               (1)  "Physical therapist" means a person licensed under
 766-7   Chapter 453, Occupations Code [836, Acts of the 62nd Legislature,
 766-8   Regular Session, 1971 (Article 4512e, Vernon's Texas Civil
 766-9   Statutes)].
766-10         SECTION 14.739. Section 61.851, Education Code, as added by
766-11   Chapter 1243, Acts of the 76th Legislature, Regular Session, 1999,
766-12   and renumbered as Section 61.921, Education Code, by Article 21 of
766-13   this Act, is amended by amending Subdivisions (1), (2), (4), (5),
766-14   (6), and (9) to read as follows:
766-15               (1)  "College of pharmacy" means a college, school, or
766-16   university of pharmacy in this state that has an accredited
766-17   pharmacy degree program approved by the Texas State Board of
766-18   Pharmacy as provided by Subtitle J, Title 3, Occupations Code [the
766-19   Texas Pharmacy Act (Article 4542a-1, Vernon's Texas Civil
766-20   Statutes)].
766-21               (2)  "Community pharmacy" means a pharmacy that holds a
766-22   Class A pharmacy license or a community pharmacy license as those
766-23   terms are defined by Section 551.003, Occupations Code [5, Texas
766-24   Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes)].
766-25               (4)  "Institutional pharmacy" means a pharmacy that
766-26   holds a Class C pharmacy license or an institutional pharmacy
766-27   license as those terms are defined by Section 551.003, Occupations
 767-1   Code [5, Texas Pharmacy Act (Article 4542a-1, Vernon's Texas Civil
 767-2   Statutes)].
 767-3               (5)  "Nuclear pharmacy" means a pharmacy that holds a
 767-4   Class B pharmacy license or a nuclear pharmacy license as those
 767-5   terms are defined by Section 551.003, Occupations Code [5, Texas
 767-6   Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes)].
 767-7               (6)  "Pharmacy residency program" means a postgraduate
 767-8   residency program approved by the Texas State Board of Pharmacy as
 767-9   provided by Subtitle J, Title 3, Occupations Code [the Texas
767-10   Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes)].
767-11               (9)  "Resident pharmacist" means a person who:
767-12                     (A)  has received a professional practice degree
767-13   from an accredited pharmacy degree program approved by the Texas
767-14   State Board of Pharmacy as provided by Subtitle J, Title 3,
767-15   Occupations Code [the Texas Pharmacy Act (Article 4542a-1, Vernon's
767-16   Texas Civil Statutes)];
767-17                     (B)  is licensed to practice pharmacy by the
767-18   Texas State Board of Pharmacy; and
767-19                     (C)  is appointed to a resident pharmacist
767-20   position by a college of pharmacy.
767-21         SECTION 14.740. Section 96.641(f), Education Code, is amended
767-22   to read as follows:
767-23         (f)  An individual who is subject to the continuing education
767-24   requirements of Subsection (b) is exempt from other continuing
767-25   education requirements under Subchapter H, Chapter 1701,
767-26   Occupations [Section 415.034, Government] Code.
767-27         SECTION 14.741. Section 33.002(f), Family Code, is amended to
 768-1   read as follows:
 768-2         (f)  A certification required by Subsection (a)(4) is
 768-3   confidential and privileged and is not subject to disclosure under
 768-4   Chapter 552, Government Code, or to discovery, subpoena, or other
 768-5   legal process.  Personal or identifying information about the
 768-6   minor, including her name, address, or social security number, may
 768-7   not be included in a certification under Subsection (a)(4).  The
 768-8   physician must keep the medical records on the minor in compliance
 768-9   with the rules adopted by the Texas State Board of Medical
768-10   Examiners under Section 153.003, Occupations Code [5.085, Medical
768-11   Practice Act (Article 4495b, Vernon's Texas Civil Statutes)].
768-12         SECTION 14.742. Section 33.003(f), Family Code, is amended to
768-13   read as follows:
768-14         (f)  The court may appoint to serve as guardian ad litem:
768-15               (1)  a person who may consent to treatment for the
768-16   minor under Sections 32.001(a)(1)-(3);
768-17               (2)  a psychiatrist or an individual licensed or
768-18   certified as a psychologist under Chapter 501, Occupations Code
768-19   [the Psychologists' Licensing Act (Article 4512c, Vernon's Texas
768-20   Civil Statutes)];
768-21               (3)  an appropriate employee of the Department of
768-22   Protective and Regulatory Services;
768-23               (4)  a member of the clergy; or
768-24               (5)  another appropriate person selected by the court.
768-25         SECTION 14.743. Section 54.0405(d), Family Code, is amended
768-26   to read as follows:
768-27         (d)  A polygraph examination required as a condition of
 769-1   probation under Subsection (a) must be administered by an
 769-2   individual who is:
 769-3               (1)  specified by the local juvenile probation
 769-4   department supervising the child; and
 769-5               (2)  licensed as a polygraph examiner under Chapter
 769-6   1703, Occupations Code [the Polygraph Examiners Act (Article
 769-7   4413(29cc), Vernon's Texas Civil Statutes)].
 769-8         SECTION 14.744. Section 232.002, Family Code, as amended by
 769-9   Section 4, Chapter 1254, and Section 23, Chapter 1477, Acts of the
769-10   76th Legislature, Regular Session, 1999, is  reenacted and amended
769-11   to conform to Section 5, Chapter 974, Acts of the 76th Legislature,
769-12   Regular Session, 1999, to read as follows:
769-13         Sec. 232.002.  LICENSING AUTHORITIES SUBJECT TO CHAPTER. The
769-14   following are licensing authorities subject to this chapter:
769-15               (1)  Department of Agriculture;
769-16               (2)  Texas Commission on Alcohol and Drug Abuse;
769-17               (3)  Texas Alcoholic Beverage Commission;
769-18               (4)  Texas Appraiser Licensing and Certification Board;
769-19               (5)  Texas Board of Architectural Examiners;
769-20               (6)  State Board of Barber Examiners;
769-21               (7)  Texas Board of Chiropractic Examiners;
769-22               (8)  Comptroller of Public Accounts;
769-23               (9)  Texas Cosmetology Commission;
769-24               (10)  Court Reporters Certification Board;
769-25               (11)  State Board of Dental Examiners;
769-26               (12)  Texas State Board of Examiners of Dietitians;
769-27               (13)  Texas Funeral Service Commission;
 770-1               (14)  Texas Department of Health;
 770-2               (15)  Texas Department of Human Services;
 770-3               (16)  Texas Board of Professional Land Surveying;
 770-4               (17)  Texas Department of Licensing and Regulation;
 770-5               (18)  Texas State Board of Examiners of Marriage and
 770-6   Family Therapists;
 770-7               (19)  Texas State Board of Medical Examiners;
 770-8               (20)  Midwifery Board;
 770-9               (21)  Texas Natural Resource Conservation Commission;
770-10               (22)  Board of Nurse Examiners;
770-11               (23)  Texas Board of Occupational Therapy Examiners;
770-12               (24)  Texas Optometry Board;
770-13               (25)  Parks and Wildlife Department;
770-14               (26)  Texas State Board of Examiners of Perfusionists;
770-15               (27)  Texas State Board of Pharmacy;
770-16               (28)  Texas Board of Physical Therapy Examiners;
770-17               (29)  Texas State Board of Plumbing Examiners;
770-18               (30)  Texas State Board of Podiatric Medical Examiners;
770-19               (31)  Polygraph Examiners Board;
770-20               (32)  Texas Commission on [Board of] Private
770-21   [Investigators and Private] Security [Agencies];
770-22               (33)  Texas State Board of Examiners of Professional
770-23   Counselors;
770-24               (34)  Texas Board of Professional Engineers;
770-25               (35)  Department of Protective and Regulatory Services;
770-26               (36)  Texas State Board of Examiners of Psychologists;
770-27               (37)  Texas State Board of Public Accountancy;
 771-1               (38)  Department of Public Safety of the State of
 771-2   Texas;
 771-3               (39)  Public Utility Commission of Texas;
 771-4               (40)  Railroad Commission of Texas;
 771-5               (41)  Texas Real Estate Commission;
 771-6               (42)  State Bar of Texas;
 771-7               (43)  Texas State Board of Social Worker Examiners;
 771-8               (44)  State Board of Examiners for Speech-Language
 771-9   Pathology and Audiology;
771-10               (45)  Texas Structural Pest Control Board;
771-11               (46)  Board of Tax Professional Examiners;
771-12               (47)  Secretary of State;
771-13               (48)  Supreme Court of Texas;
771-14               (49)  Texas Transportation Commission;
771-15               (50)  State Board of Veterinary Medical Examiners;
771-16               (51)  Board of Vocational Nurse Examiners;
771-17               (52)  Texas Ethics Commission;
771-18               (53)  Advisory Board of Athletic Trainers;
771-19               (54)  State Committee of Examiners in the Fitting and
771-20   Dispensing of Hearing Instruments;
771-21               (55)  Texas Board of Licensure for Professional Medical
771-22   Physicists;
771-23               (56)  Texas Department of Insurance;
771-24               (57)  Texas Board of Orthotics and Prosthetics; [and]
771-25               (58)  savings and loan commissioner; and[.]
771-26               (59) [(58)]  Texas Juvenile Probation Commission.
771-27         SECTION 14.745. Section 153.117(e), Finance Code, is amended
 772-1   to read as follows:
 772-2         (e)  A person engaged in the business of currency
 772-3   transportation who is both a registered motor carrier under Chapter
 772-4   643, Transportation Code, and a licensed armored car company or
 772-5   courier company under Chapter 1702, Occupations Code [the Private
 772-6   Investigators and Private Security Agencies Act (Article
 772-7   4413(29bb), Vernon's Texas Civil Statutes)], is not required to be
 772-8   licensed under this chapter.  This exemption does not authorize the
 772-9   person to engage in the business of currency exchange or
772-10   transmission without a license issued under this chapter.
772-11         SECTION 14.746. Sections 156.204(a) and (c), Finance Code,
772-12   are amended to read as follows:
772-13         (a)  To be eligible to be licensed as a mortgage broker a
772-14   person must:
772-15               (1)  be an individual who is at least 18 years of age;
772-16               (2)  be a citizen of the United States or a lawfully
772-17   admitted alien;
772-18               (3)  maintain a physical office in this state and
772-19   designate that office in the application;
772-20               (4)  provide the commissioner with satisfactory
772-21   evidence that the applicant satisfies one of the following:
772-22                     (A)  the person has received a bachelor's degree
772-23   in an area relating to finance, banking, or business administration
772-24   from an accredited college or university and has 18 months of
772-25   experience in the mortgage or lending field as evidenced by
772-26   documentary proof of full-time employment as a mortgage broker or
772-27   loan officer with a mortgage broker or a person exempt under
 773-1   Section 156.202;
 773-2                     (B)  the person is licensed in this state as:
 773-3                           (i)  an active real estate broker under The
 773-4   Real Estate License Act (Article 6573a, Vernon's Texas Civil
 773-5   Statutes);
 773-6                           (ii)  an active attorney; or
 773-7                           (iii)  a local recording agent or insurance
 773-8   solicitor or agent for a legal reserve life insurance company under
 773-9   Chapter 21, Insurance Code, or holds an equivalent license under
773-10   Chapter 21, Insurance Code; or
773-11                     (C)  the person has three years of experience in
773-12   the mortgage lending field as evidenced by documentary proof of
773-13   full-time employment as a loan officer with a mortgage broker or a
773-14   person exempt under Section 156.202;
773-15               (5)  demonstrate evidence of compliance with the
773-16   financial requirements of this chapter; and
773-17               (6)  not have been convicted of a criminal offense that
773-18   the commissioner determines directly relates to the occupation of a
773-19   mortgage broker under Chapter 53, Occupations Code [Article
773-20   6252-13c, Revised Statutes].
773-21         (c)  To be eligible to be licensed as a loan officer a person
773-22   must:
773-23               (1)  be an individual who is at least 18 years of age;
773-24               (2)  be a citizen of the United States or a lawfully
773-25   admitted alien;
773-26               (3)  designate in the application the name of the
773-27   mortgage broker sponsoring the loan officer;
 774-1               (4)  provide the commissioner with satisfactory
 774-2   evidence that the applicant satisfies one of the following:
 774-3                     (A)  the person meets one of the requirements
 774-4   described by Subsection (a)(4);
 774-5                     (B)  the person has successfully completed 15
 774-6   hours of education courses approved by the commissioner under this
 774-7   section;
 774-8                     (C)  the person has 18 months of experience as a
 774-9   loan officer as evidenced by documentary proof of full-time
774-10   employment as a loan officer with a mortgage broker or a person
774-11   exempt under Section 156.202; or
774-12                     (D)  for applications received prior to January
774-13   1, 2000, the mortgage broker that will sponsor the applicant
774-14   provides a certification under oath that the applicant has been
774-15   provided necessary and appropriate education and training regarding
774-16   all applicable state and federal law and regulations relating to
774-17   mortgage loans; and
774-18               (5)  not have been convicted of a criminal offense that
774-19   the commissioner determines directly relates to the occupation of a
774-20   loan officer under Chapter 53, Occupations Code [Article 6252-13c,
774-21   Revised Statutes].
774-22         SECTION 14.747. Sections 156.208(a) and (b), Finance Code,
774-23   are amended to read as follows:
774-24         (a)  A mortgage broker license issued under this chapter is
774-25   valid for two years and may be renewed on or before its expiration
774-26   date if the mortgage broker:
774-27               (1)  pays to the commissioner a renewal fee in an
 775-1   amount determined by the commissioner not to exceed $375 and a
 775-2   recovery fund fee provided by Section 156.502;
 775-3               (2)  has not been convicted of a felony the
 775-4   commissioner determines is directly related to the occupation of a
 775-5   mortgage broker under Chapter 53, Occupations Code [Article
 775-6   6252-13c, Revised Statutes]; and
 775-7               (3)  provides the commissioner with satisfactory
 775-8   evidence that the mortgage broker:
 775-9                     (A)  has attended, during the term of the current
775-10   license, 15 hours of continuing education courses that the
775-11   commissioner, in accordance with the rules adopted under this
775-12   section, has approved as continuing education courses; or
775-13                     (B)  maintains an active license in this state
775-14   as:
775-15                           (i)  a real estate broker;
775-16                           (ii)  a real estate salesperson;
775-17                           (iii)  an attorney; or
775-18                           (iv)  a local recording agent or insurance
775-19   solicitor or agent for a legal reserve life insurance company under
775-20   Chapter 21, Insurance Code, or an equivalent license under Chapter
775-21   21, Insurance Code.
775-22         (b)  A loan officer license issued under this chapter is
775-23   valid for two years and may be renewed on or before its expiration
775-24   date if the loan officer:
775-25               (1)  pays to the commissioner a renewal fee in an
775-26   amount determined by the commissioner not to exceed $175 and a
775-27   recovery fund fee provided by Section 156.502;
 776-1               (2)  has not been convicted of a felony the
 776-2   commissioner determines is directly related to the occupation of a
 776-3   loan officer under Chapter 53, Occupations Code [Article 6252-13c,
 776-4   Revised Statutes]; and
 776-5               (3)  provides the commissioner with satisfactory
 776-6   evidence that the loan officer:
 776-7                     (A)  has attended, during the term of the current
 776-8   license, 15 hours of continuing education courses that the
 776-9   commissioner, in accordance with the rules adopted under this
776-10   section, has approved as continuing education courses, including
776-11   courses provided by or through the licensed mortgage broker with
776-12   whom the loan officer is associated after submission to and
776-13   approval by the commission; or
776-14                     (B)  maintains an active license in this state
776-15   as:
776-16                           (i)  a real estate broker;
776-17                           (ii)  a real estate salesperson;
776-18                           (iii)  an attorney; or
776-19                           (iv)  a local recording agent or insurance
776-20   solicitor or agent for a legal reserve life insurance company under
776-21   Chapter 21, Insurance Code, or an equivalent license under Chapter
776-22   21, Insurance Code.
776-23         SECTION 14.748. Section 371.052(c), Finance Code, is amended
776-24   to read as follows:
776-25         (c)  For purposes of a disqualification under Chapter 53,
776-26   Occupations Code [Article 6252-13c, Revised Statutes], the
776-27   commissioner is a licensing authority.
 777-1         SECTION 14.749. Section 371.102(b), Finance Code, is amended
 777-2   to read as follows:
 777-3         (b)  For purposes of a disqualification under Chapter 53,
 777-4   Occupations Code [Article 6252-13c, Revised Statutes], the
 777-5   commissioner is a licensing authority.
 777-6         SECTION 14.750. Section 404.073(c), Government Code, is
 777-7   amended to read as follows:
 777-8         (c)  Interest that has been and that will be accrued or
 777-9   earned from deposits made under a law to which this subsection
777-10   applies is state funds not subject to allocation or distribution to
777-11   taxing units, cities, or transportation authorities under that law.
777-12   This subsection applies to:
777-13               (1)  Section 205.02, Alcoholic Beverage Code;
777-14               (2)  Section 2001.507, Occupations Code [26, Bingo
777-15   Enabling Act (Article 179d, Vernon's Texas Civil Statutes)];
777-16               (3)  Section 403.105(d) of this code;
777-17               (4)  Sections 321.501 and 321.504, Tax Code;
777-18               (5)  Sections 322.301 and 322.304, Tax Code; and
777-19               (6)  Sections 323.501 and 323.504, Tax Code.
777-20         SECTION 14.751. Section 411.042(b), Government Code, is
777-21   amended to read as follows:
777-22         (b)  The bureau of identification and records shall:
777-23               (1)  procure and file for record photographs, pictures,
777-24   descriptions, fingerprints, measurements, and other pertinent
777-25   information of all persons arrested for or charged with a criminal
777-26   offense or convicted of a criminal offense, regardless of whether
777-27   the conviction is probated;
 778-1               (2)  collect information concerning the number and
 778-2   nature of offenses reported or known to have been committed in the
 778-3   state and the legal steps taken in connection with the offenses,
 778-4   and other information useful in the study of crime and the
 778-5   administration of justice, including a statistical breakdown of
 778-6   those offenses in which family violence was involved;
 778-7               (3)  make ballistic tests of bullets and firearms and
 778-8   chemical analyses of bloodstains, cloth, materials, and other
 778-9   substances for law enforcement officers of the state;
778-10               (4)  cooperate with identification and crime records
778-11   bureaus in other states and the United States Department of
778-12   Justice;
778-13               (5)  maintain a list of all previous background checks
778-14   for applicants for any position regulated under Chapter 1702,
778-15   Occupations Code, [the Private Investigators and Private Security
778-16   Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes)]
778-17   who have undergone a criminal history background check under
778-18   Section 411.119, if the check indicates a Class B misdemeanor or
778-19   equivalent offense or a greater offense; and
778-20               (6)  collect information concerning the number and
778-21   nature of protective orders and all other pertinent information
778-22   about all persons on active protective orders.  Information in the
778-23   law enforcement information system relating to an active protective
778-24   order shall include:
778-25                     (A)  the name, sex, race, date of birth, personal
778-26   descriptors, address, and county of residence of the person to whom
778-27   the order is directed;
 779-1                     (B)  any known identifying number of the person
 779-2   to whom the order is directed, including the person's social
 779-3   security number or driver's license number;
 779-4                     (C)  the name and county of residence of the
 779-5   person protected by the order;
 779-6                     (D)  the residence address and place of
 779-7   employment or business of the person protected by the order, unless
 779-8   that information is excluded from the order under Section 85.007,
 779-9   Family Code;
779-10                     (E)  the child-care facility or school where a
779-11   child protected by the order normally resides or which the child
779-12   normally attends, unless that information is excluded from the
779-13   order under Section 85.007, Family Code;
779-14                     (F)  the relationship or former relationship
779-15   between the person who is protected by the order and the person to
779-16   whom the order is directed; and
779-17                     (G)  the date the order expires.
779-18         SECTION 14.752. Section 411.091(a), Government Code, is
779-19   amended to eliminate obsolete provisions to read as follows:
779-20         (a)  The Texas Alcoholic Beverage Commission is entitled to
779-21   obtain from the department criminal history record information
779-22   maintained by the department that[:]
779-23               [(1)]  the commission believes is necessary for the
779-24   enforcement or administration of the Alcoholic Beverage Code[; or]
779-25               [(2)  pertains to a person who, under the Bingo
779-26   Enabling Act (Article 179d, Vernon's Texas Civil Statutes), is:]
779-27                     [(A)  an operator or an applicant to act as an
 780-1   operator of bingo occasions;]
 780-2                     [(B)  an officer of an organization that applies
 780-3   for or holds a license to conduct bingo;]
 780-4                     [(C)  a person who works at or will work at
 780-5   proposed bingo games;]
 780-6                     [(D)  an applicant for a license to act or a
 780-7   person who holds a license to act as a commercial lessor,
 780-8   manufacturer, or distributor;]
 780-9                     [(E)  a spouse of or a person related in the
780-10   first degree by consanguinity or affinity, as determined under
780-11   Chapter 573, to:]
780-12                           [(i)  a person who has a greater than 10
780-13   percent proprietary, equitable, or credit interest; or]
780-14                           [(ii)  a person who is an employee of or is
780-15   active in a firm or corporation applying for a license to act or a
780-16   person who holds a license to act as a commercial lessor,
780-17   manufacturer, or distributor; or]
780-18                     [(F)  a person required to be named in an
780-19   application for a license to act or a person who holds a license to
780-20   act as a commercial lessor, manufacturer, or distributor].
780-21         SECTION 14.753. Section 411.091(c), Government Code, is
780-22   repealed because that subsection is obsolete.
780-23         SECTION 14.754. Section 411.099, Government Code, is amended
780-24   to read as follows:
780-25         Sec. 411.099.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
780-26   TEXAS STATE BOARD OF MEDICAL EXAMINERS. The Texas State Board of
780-27   Medical Examiners is entitled to obtain from the department
 781-1   criminal history record information maintained by the department
 781-2   that relates to a person who is:
 781-3               (1)  an applicant for a license under Subtitle B, Title
 781-4   3, Occupations Code [the Medical Practice Act (Article 4495b,
 781-5   Vernon's Texas Civil Statutes)]; or
 781-6               (2)  the holder of a license under that subtitle [Act].
 781-7         SECTION 14.755. Section 411.1105(a), Government Code, is
 781-8   amended to read as follows:
 781-9         (a)  The Texas Commission on Alcohol and Drug Abuse is
781-10   entitled to obtain from the department criminal history record
781-11   information maintained by the department that relates to a person
781-12   who is:
781-13               (1)  an applicant for a chemical dependency counselor's
781-14   license under Chapter 504, Occupations Code [635, Acts of the 72nd
781-15   Legislature, Regular Session, 1991 (Article 4512o, Vernon's Texas
781-16   Civil Statutes)]; or
781-17               (2)  the holder of a license under that chapter [Act].
781-18         SECTION 14.756. Section 411.119, Government Code, is amended
781-19   to more accurately reflect the law from which it was derived to
781-20   read as follows:
781-21         Sec. 411.119.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
781-22   TEXAS COMMISSION ON PRIVATE SECURITY. The Texas Commission on
781-23   Private Security is entitled to obtain from the department criminal
781-24   history record information maintained by the department, including
781-25   information maintained under Section 411.042(b)(5), that relates
781-26   to:
781-27               (1)  an applicant for a license, registration, security
 782-1   officer commission, letter of approval, permit, or handgun
 782-2   instructor certification under Chapter 1702, Occupations Code; or
 782-3               (2)  a person who holds a license, registration,
 782-4   security officer commission, letter of approval, permit, or handgun
 782-5   instructor certification under Chapter 1702, Occupations Code [that
 782-6   chapter; or]
 782-7               [(3)  a license holder regulated under that chapter].
 782-8         SECTION 14.757. Sections 411.122(a) and (c), Government Code,
 782-9   are amended to read as follows:
782-10         (a)  Except as provided by Subsection (c)(2), an agency of
782-11   this state or a political subdivision of this state covered by
782-12   Chapter 53, Occupations Code [Article 6252-13c, Revised Statutes],
782-13   that licenses or regulates members of a particular trade,
782-14   occupation, business, vocation, or profession is entitled to obtain
782-15   from the department criminal history record information maintained
782-16   by the department that relates to a person who is:
782-17               (1)  an applicant for a license from the agency; or
782-18               (2)  the holder of a license from the agency.
782-19         (c)  This section does not apply to an agency that is:
782-20               (1)  specifically authorized by this subchapter to
782-21   obtain criminal history record information from the department; or
782-22               (2)  covered by Section 53.002, Occupations Code [2,
782-23   Article 6252-13c, Revised Statutes].
782-24         SECTION 14.758. Section 411.190(a), Government Code, is
782-25   amended to read as follows:
782-26         (a)  The director may certify as a qualified handgun
782-27   instructor a person who:
 783-1               (1)  is certified by the Commission on Law Enforcement
 783-2   Officer Standards and Education or under Chapter 1702, Occupations
 783-3   Code, [the Texas Board of Private Investigators and Private
 783-4   Security Agencies] to instruct others in the use of handguns;
 783-5               (2)  regularly instructs others in the use of handguns
 783-6   and has graduated from a handgun instructor school that uses a
 783-7   nationally accepted course designed to train persons as handgun
 783-8   instructors; or
 783-9               (3)  is certified by the National Rifle Association of
783-10   America as a handgun instructor.
783-11         SECTION 14.759. Section 411.200, Government Code, is amended
783-12   to read as follows:
783-13         Sec. 411.200.  APPLICATION TO LICENSED SECURITY OFFICERS.
783-14   This subchapter does not exempt a license holder who is also
783-15   employed as a security officer and licensed under Chapter 1702,
783-16   Occupations Code, [the Private Investigators and Private Security
783-17   Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes)]
783-18   from the duty to comply with Chapter 1702, Occupations Code, [that
783-19   Act] or Section 46.02, Penal Code.
783-20         SECTION 14.760. Section 466.155(a), Government Code, is
783-21   amended to read as follows:
783-22         (a)  After a hearing, the director shall deny an application
783-23   for a license or the commission shall suspend or revoke a license
783-24   if the director or commission, as applicable, finds that the
783-25   applicant or sales agent:
783-26               (1)  is an individual who:
783-27                     (A)  has been convicted of a felony, criminal
 784-1   fraud, gambling or a gambling-related offense, or a misdemeanor
 784-2   involving moral turpitude, if less than 10 years has elapsed since
 784-3   the termination of the sentence, parole, mandatory supervision, or
 784-4   probation served for the offense;
 784-5                     (B)  is or has been a professional gambler;
 784-6                     (C)  is married to an individual:
 784-7                           (i)  described in Paragraph (A) or (B); or
 784-8                           (ii)  who is currently delinquent in the
 784-9   payment of any state tax;
784-10                     (D)  is an officer or employee of the commission
784-11   or a lottery operator; or
784-12                     (E)  is a spouse, child, brother, sister, or
784-13   parent residing as a member of the same household in the principal
784-14   place of residence of a person described by Paragraph (D);
784-15               (2)  is not an individual, and an individual described
784-16   in Subdivision (1):
784-17                     (A)  is an officer or director of the applicant
784-18   or sales agent;
784-19                     (B)  holds more than 10 percent of the stock in
784-20   the applicant or sales agent;
784-21                     (C)  holds an equitable interest greater than 10
784-22   percent in the applicant or sales agent;
784-23                     (D)  is a creditor of the applicant or sales
784-24   agent who holds more than 10 percent of the applicant's or sales
784-25   agent's outstanding debt;
784-26                     (E)  is the owner or lessee of a business that
784-27   the applicant or sales agent conducts or through which the
 785-1   applicant will conduct a ticket sales agency;
 785-2                     (F)  shares or will share in the profits, other
 785-3   than stock dividends, of the applicant or sales agent; or
 785-4                     (G)  participates in managing the affairs of the
 785-5   applicant or sales agent;
 785-6               (3)  is currently delinquent in the payment of any
 785-7   state tax;
 785-8               (4)  is a person whose location for the sales agency
 785-9   is:
785-10                     (A)  a location licensed for games of bingo under
785-11   Chapter 2001, Occupations Code  [the Bingo Enabling Act (Article
785-12   179d, Vernon's Texas Civil Statutes)];
785-13                     (B)  on land that is owned by:
785-14                           (i)  this state; or
785-15                           (ii)  a political subdivision of this state
785-16   and on which is located a public primary or secondary school, an
785-17   institution of higher education, or an agency of the state; or
785-18                     (C)  a location for which a person holds a wine
785-19   and beer retailer's permit, mixed beverage permit, mixed beverage
785-20   late hours permit, private club registration permit, or private
785-21   club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
785-22   Alcoholic Beverage Code; or
785-23               (5)  has violated this chapter or a rule adopted under
785-24   this chapter.
785-25         SECTION 14.761. Section 466.303(b), Government Code, is
785-26   amended to read as follows:
785-27         (b)  A lottery operator may sell tickets to a sales agent.  A
 786-1   person who is not a sales agent may distribute tickets as premiums
 786-2   to customers, employees, or other persons who deal with the person
 786-3   if no purchase is required to entitle the recipient to the ticket.
 786-4   A qualified organization as defined in Section 2002.002,
 786-5   Occupations Code [2, Charitable Raffle Enabling Act (Article 179f,
 786-6   Revised Statutes, as added by Chapter 957, Acts of the 71st
 786-7   Legislature, Regular Session, 1989)], may distribute tickets as a
 786-8   prize in a raffle authorized by Chapter 2002, Occupations Code
 786-9   [that Act].
786-10         SECTION 14.762. Sections 467.101(a) and (c), Government Code,
786-11   are amended to read as follows:
786-12         (a)  The commission has broad authority and shall exercise
786-13   strict control and close supervision over all activities authorized
786-14   and conducted in this state under:
786-15               (1)  Chapter 2001, Occupations Code [the Bingo Enabling
786-16   Act (Article 179d, Vernon's Texas Civil Statutes)]; and
786-17               (2)  Chapter 466 of this code.
786-18         (c)  The commission also has the powers and duties granted
786-19   under:
786-20               (1)  Chapter 2001, Occupations Code [the Bingo Enabling
786-21   Act (Article 179d, Vernon's Texas Civil Statutes)]; and
786-22               (2)  Chapter 466 of this code.
786-23         SECTION 14.763. Section 501.053(a), Government Code, is
786-24   amended to read as follows:
786-25         (a)  If the department receives an allegation that a
786-26   physician employed or under contract with the department has
786-27   committed an action that constitutes a ground for the denial or
 787-1   revocation of the physician's license under Section 164.051,
 787-2   Occupations Code [3.08, Medical Practice Act (Article 4495b,
 787-3   Vernon's Texas Civil Statutes)], the department shall report the
 787-4   information to the Texas State Board of Medical Examiners in the
 787-5   manner provided by Section 154.051, Occupations Code [4.02 of that
 787-6   Act].
 787-7         SECTION 14.764. Section  511.0092(i), Government Code, is
 787-8   amended to read as follows:
 787-9         (i)  Chapter 1702, Occupations Code, [The Private
787-10   Investigators and Private Security Agencies Act (Article
787-11   4413(29bb), Vernon's Texas Civil Statutes)] does not apply to an
787-12   employee of a facility in the actual discharge of duties as an
787-13   employee of the facility if the employee is required by Subsection
787-14   (f)(2) or by Section 1701.406, Occupations Code, [415.0541] to
787-15   maintain certification from the Commission on Law Enforcement
787-16   Officer Standards and Education.
787-17         SECTION 14.765. Section 531.0216(d), Government Code, is
787-18   amended to read as follows:
787-19         (d)  Subject to Section 153.004, Occupations Code [5.11,
787-20   Medical Practice Act (Article 4495b, Vernon's Texas Civil
787-21   Statutes)], the commission may adopt rules as necessary to
787-22   implement this section.
787-23         SECTION 14.766. Section 533.004(e), Government Code, is
787-24   amended to read as follows:
787-25         (e)  In providing health care services through Medicaid
787-26   managed care to recipients in a health care service region, with
787-27   the exception of the Harris service area for the STAR Medicaid
 788-1   managed care program, as defined by the commission as of September
 788-2   1, 1999, the commission shall also contract with a managed care
 788-3   organization in that region that holds a certificate of authority
 788-4   as a health maintenance organization under Section 5, Texas Health
 788-5   Maintenance Organization Act (Article 20A.05, Vernon's Texas
 788-6   Insurance Code), and that:
 788-7               (1)  is certified under Section 162.001, Occupations
 788-8   Code [5.01(a), Medical Practice Act (Article 4495b, Vernon's Texas
 788-9   Civil Statutes)];
788-10               (2)  is created by The University of Texas Medical
788-11   Branch at Galveston; and
788-12               (3)  has obtained a certificate of authority as a
788-13   health maintenance organization to serve one or more counties in
788-14   that region from the Texas Department of Insurance before September
788-15   2, 1999.
788-16         SECTION 14.767. Section 2054.054(b), Government Code, is
788-17   amended to read as follows:
788-18         (b)  The department must assure in maintaining the
788-19   information that:
788-20               (1)  health and mental health communications and
788-21   records privileged under Chapter 611, Health and Safety Code,
788-22   Subtitle B, Title 3, Occupations Code [239, Acts of the 66th
788-23   Legislature, Regular Session, 1979 (Article 5561h, Vernon's Texas
788-24   Civil Statutes), the Medical Practice Act (Article 4495b, Vernon's
788-25   Texas Civil Statutes)], and the Texas Rules of [Civil] Evidence
788-26   remain confidential and privileged;
788-27               (2)  personally identifiable health and mental health
 789-1   communications and records of persons involved in the receipt or
 789-2   delivery of health or human services are confidential and
 789-3   privileged; and
 789-4               (3)  a private source is not required to provide
 789-5   confidential health or mental health communications or records
 789-6   unless a law specifically requires disclosure.
 789-7         SECTION 14.768. Section 12.096(b), Health and Safety Code, is
 789-8   amended to read as follows:
 789-9         (b)  The release of information under this section is an
789-10   exception to the patient-physician privilege requirements imposed
789-11   under Section 159.002, Occupations Code [5.08, Medical Practice Act
789-12   (Article 4495b, Vernon's Texas Civil Statutes)].
789-13         SECTION 14.769. Section 42.0045(a), Health and Safety Code,
789-14   is amended to read as follows:
789-15         (a)  Sections 483.041(a) and 483.042, Subtitle J, Title 3,
789-16   Occupations Code [the Texas Pharmacy Act (Article 4542a-1, Vernon's
789-17   Texas Civil Statutes)], and other applicable laws establishing
789-18   prohibitions do not apply to a dialysate, device, or drug
789-19   exclusively used or necessary to perform dialysis that a physician
789-20   prescribes or orders for administration or delivery to a person
789-21   with chronic kidney failure if:
789-22               (1)  the dialysate, device, or drug is lawfully held by
789-23   a manufacturer or wholesaler registered with the board;
789-24               (2)  the manufacturer or wholesaler delivers the
789-25   dialysate, device, or drug to:
789-26                     (A)  a person with chronic kidney failure for
789-27   self-administration at the person's home or a specified address, as
 790-1   ordered by a physician; or
 790-2                     (B)  a physician for administration or delivery
 790-3   to a person with chronic kidney failure; and
 790-4               (3)  the manufacturer or wholesaler has sufficient and
 790-5   qualified supervision to adequately protect the public health.
 790-6         SECTION 14.770. Section 47.002, Health and Safety Code, is
 790-7   amended to read as follows:
 790-8         Sec. 47.002.  APPLICABILITY OF CHAPTER. This chapter does not
 790-9   apply to a facility operated by a midwife as defined by Section
790-10   203.002, Occupations Code [1, Texas Midwifery Act (Article 4512i,
790-11   Vernon's Texas Civil Statutes)].
790-12         SECTION 14.771. Section 47.008(c), Health and Safety Code, is
790-13   amended to read as follows:
790-14         (c)  The department by rule shall develop guidelines to
790-15   protect the confidentiality of patients in accordance with Chapter
790-16   159, Occupations Code [Section 5.08, Medical Practice Act (Article
790-17   4495b, Vernon's Texas Civil Statutes)], and require the written
790-18   consent of a parent or guardian of a patient before any
790-19   individually identifying information is provided to the department
790-20   as set out in this chapter.  The department shall permit a parent
790-21   or guardian at any time to withdraw information provided to the
790-22   department under this chapter.
790-23         SECTION 14.772. Section 81.091(c), Health and Safety Code, is
790-24   amended to read as follows:
790-25         (c)  Subject to the availability of funds, the department
790-26   shall furnish prophylaxis approved by the board free of charge to:
790-27               (1)  health care providers if the newborn's financially
 791-1   responsible adult is unable to pay; and
 791-2               (2)  a midwife identified under Chapter 203,
 791-3   Occupations Code, [the Texas Midwifery Act (Article 4512i, Vernon's
 791-4   Texas Civil Statutes)] who requests prophylaxis for administration
 791-5   under standing delegation orders issued by a licensed physician
 791-6   under Subsection (b) [of this section] and subject to the
 791-7   provisions of Subchapter A, Chapter 157, Occupations Code [Section
 791-8   3.06, Medical Practice Act (Article 4495b, Vernon's Texas Civil
 791-9   Statutes)].
791-10         SECTION 14.773. Section 85.083(b), Health and Safety Code, is
791-11   amended to read as follows:
791-12         (b)  A hospital licensed under Chapter 241 (Texas Hospital
791-13   Licensing Law) or a physician licensed under Subtitle B, Title 3,
791-14   Occupations Code, [the Medical Practice Act (Article 4495b,
791-15   Vernon's Texas Civil Statutes)] is not required to be registered
791-16   under this section unless the hospital or physician advertises or
791-17   represents to the public that the hospital or physician conducts or
791-18   specializes in testing programs for AIDS, HIV infection, or related
791-19   conditions.
791-20         SECTION 14.774. Section 87.001(8), Health and Safety Code, is
791-21   amended to read as follows:
791-22               (8)  "Midwife" has the meaning assigned by Section
791-23   203.002, Occupations Code [1, Texas Midwifery Act (Article 4512i,
791-24   Vernon's Texas Civil Statutes)].
791-25         SECTION 14.775. Sections 108.002(9) and (14), Health and
791-26   Safety Code, are amended to read as follows:
791-27               (9)  "Health benefit plan" means a plan provided by:
 792-1                     (A)  a health maintenance organization; or
 792-2                     (B)  an approved nonprofit health corporation
 792-3   that is certified under Section 162.001, Occupations Code [5.01(a),
 792-4   Medical Practice Act (Article 4495b, Vernon's Texas Civil
 792-5   Statutes)], and that holds a certificate of authority issued by the
 792-6   commissioner of insurance under Article 21.52F, Insurance Code.
 792-7               (14)  "Physician" means an individual licensed under
 792-8   the laws of this state to practice medicine under Subtitle B, Title
 792-9   3, Occupations Code [the Medical Practice Act (Article 4495b,
792-10   Vernon's Texas Civil Statutes)].
792-11         SECTION 14.776. Section 108.013(d), Health and Safety Code,
792-12   is amended to read as follows:
792-13         (d)  All data collected and used by the department and the
792-14   council under this chapter is subject to the confidentiality
792-15   provisions and criminal penalties of:
792-16               (1)  Section 311.037;
792-17               (2)  Section 81.103; and
792-18               (3)  Section 159.002, Occupations Code [5.08, Medical
792-19   Practice Act (Article 4495b, Vernon's Texas Civil Statutes)].
792-20         SECTION 14.777. Section 142.003(a), Health and Safety Code,
792-21   is amended to read as follows:
792-22         (a)  The following persons need not be licensed under this
792-23   chapter:
792-24               (1)  a physician, dentist, registered nurse,
792-25   occupational therapist, or physical therapist licensed under the
792-26   laws of this state who provides home health services to a client
792-27   only as a part of and incidental to that person's private office
 793-1   practice;
 793-2               (2)  a registered nurse, licensed vocational nurse,
 793-3   physical therapist, occupational therapist, speech therapist,
 793-4   medical social worker, or any other health care professional as
 793-5   determined by the department who provides home health services as a
 793-6   sole practitioner;
 793-7               (3)  a registry that operates solely as a clearinghouse
 793-8   to put consumers in contact with persons who provide home health,
 793-9   hospice, or personal assistance services and that does not maintain
793-10   official client records, direct client services, or compensate the
793-11   person who is providing the service;
793-12               (4)  an individual whose permanent residence is in the
793-13   client's residence;
793-14               (5)  an employee of a person licensed under this
793-15   chapter who provides home health, hospice, or personal assistance
793-16   services only as an employee of the license holder and who receives
793-17   no benefit for providing the services, other than wages from the
793-18   license holder;
793-19               (6)  a home, nursing home, convalescent home, assisted
793-20   living facility, special care facility, or other institution for
793-21   individuals who are elderly or who have disabilities that provides
793-22   home health or personal assistance services only to residents of
793-23   the home or institution;
793-24               (7)  a person who provides one health service through a
793-25   contract with a person licensed under this chapter;
793-26               (8)  a durable medical equipment supply company;
793-27               (9)  a pharmacy or wholesale medical supply company
 794-1   that does not furnish services, other than supplies, to a person at
 794-2   the person's house;
 794-3               (10)  a hospital or other licensed health care facility
 794-4   that provides home health or personal assistance services only to
 794-5   inpatient residents of the hospital or facility;
 794-6               (11)  a person providing home health or personal
 794-7   assistance services to an injured employee under Title 5, Labor
 794-8   Code;
 794-9               (12)  a visiting nurse service that:
794-10                     (A)  is conducted by and for the adherents of a
794-11   well-recognized church or religious denomination; and
794-12                     (B)  provides nursing services by a person exempt
794-13   from licensing by Section 301.004, Occupations Code [Article 4528,
794-14   Revised Statutes], because the person furnishes nursing care in
794-15   which treatment is only by prayer or spiritual means;
794-16               (13)  an individual hired and paid directly by the
794-17   client or the client's family or legal guardian to provide home
794-18   health or personal assistance services;
794-19               (14)  a business, school, camp, or other organization
794-20   that provides home health or personal assistance services,
794-21   incidental to the organization's primary purpose, to individuals
794-22   employed by or participating in programs offered by the business,
794-23   school, or camp that enable the individual to participate fully in
794-24   the business's, school's, or camp's programs;
794-25               (15)  a person or organization providing
794-26   sitter-companion services or chore or household services that do
794-27   not involve personal care, health, or health-related services;
 795-1               (16)  a licensed health care facility that provides
 795-2   hospice services under a contract with a hospice;
 795-3               (17)  a person delivering residential acquired immune
 795-4   deficiency syndrome hospice care who is licensed and designated as
 795-5   a residential AIDS hospice under Chapter 248; or
 795-6               (18)  the Texas Department of Criminal Justice.
 795-7         SECTION 14.778. Section 142.017(a), Health and Safety Code,
 795-8   is amended to read as follows:
 795-9         (a)  The department may assess an administrative penalty
795-10   against a person who violates:
795-11               (1)  this chapter or a rule adopted under this chapter;
795-12   or
795-13               (2)  Section 102.001, Occupations Code [161.091], if
795-14   the violation relates to the provision of home health, hospice, or
795-15   personal assistance services.
795-16         SECTION 14.779. Section 142.030(a), Health and Safety Code,
795-17   is amended to read as follows:
795-18         (a)  A person authorized by this subchapter to administer
795-19   medication to a client of a home and community support services
795-20   agency may not dispense dangerous drugs or controlled substances
795-21   without complying with Subtitle J, Title 3, Occupations Code [the
795-22   Texas Pharmacy Act (Article 4542a-1, Vernon's Texas Civil
795-23   Statutes)].
795-24         SECTION 14.780. Section 161.007(a), Health and Safety Code,
795-25   is amended to read as follows:
795-26         (a)  The department, for purposes of establishing and
795-27   maintaining a single repository of accurate, complete, and current
 796-1   immunization records to be used in aiding, coordinating, and
 796-2   promoting efficient and cost-effective childhood communicable
 796-3   disease prevention and control efforts, shall establish and
 796-4   maintain a childhood immunization registry.  The department by rule
 796-5   shall develop guidelines to:
 796-6               (1)  protect the confidentiality of patients in
 796-7   accordance with Section 159.002, Occupations Code [5.08, Medical
 796-8   Practice Act (Article 4495b, Vernon's Texas Civil Statutes)];
 796-9               (2)  inform a parent, managing conservator, or guardian
796-10   of each patient about the registry;
796-11               (3)  require the written consent of a parent, managing
796-12   conservator, or guardian of a patient before any information
796-13   relating to the patient is included in the registry; and
796-14               (4)  permit a parent, managing conservator, or guardian
796-15   to withdraw consent for the patient to be included in the registry.
796-16         SECTION 14.781. Sections 161.0315(a), (c), and (e), Health
796-17   and Safety Code, are amended to read as follows:
796-18         (a)  The governing body of a hospital, medical organization,
796-19   university medical school or health science center, health
796-20   maintenance organization, extended care facility, hospital
796-21   district, or hospital authority may form a medical peer review
796-22   committee, as defined by Section 151.002, Occupations Code [1.03,
796-23   Medical Practice Act (Article 4495b, Vernon's Texas Civil
796-24   Statutes)], or a medical committee, as defined by Section 161.031,
796-25   to evaluate medical and health care services, except as provided by
796-26   this section.
796-27         (c)  A hospital district may require in a contract with a
 797-1   health care facility described by Subsection (b) a provision that
 797-2   allows the governing body of the district to appoint a specified
 797-3   number of members to the facility's medical peer review committee
 797-4   or medical committee to evaluate medical and health care services
 797-5   for which the district contracts with the facility to provide. The
 797-6   governing body of a hospital district may receive a report from the
 797-7   facility's medical peer review committee or medical committee under
 797-8   this section in a closed meeting.  A report, information, or a
 797-9   record that the district receives from the facility related to a
797-10   review action conducted under the terms of the contract is:
797-11               (1)  confidential;
797-12               (2)  not subject to disclosure under Chapter 552,
797-13   Government Code; and
797-14               (3)  subject to the same confidentiality and disclosure
797-15   requirements to which a report, information, or record of a medical
797-16   peer review committee under Section 160.006, Occupations Code
797-17   [5.06(s), Medical Practice Act (Article 4495b, Vernon's Texas Civil
797-18   Statutes)], is subject.
797-19         (e)  The governing body of a hospital district may receive a
797-20   report under Subsection (d)(3) in a closed meeting.  A report,
797-21   information, or a record that the hospital district receives under
797-22   Subsection (d)(3) is:
797-23               (1)  confidential;
797-24               (2)  not subject to disclosure under Chapter 552,
797-25   Government Code; and
797-26               (3)  subject to the same confidentiality and disclosure
797-27   requirements to which a report, information, or record of a medical
 798-1   peer review committee under Section 160.006, Occupations Code
 798-2   [5.06(s), Medical Practice Act (Article 4495b, Vernon's Texas Civil
 798-3   Statutes)], is subject.
 798-4         SECTION 14.782. Sections 161.032(a) and (c), Health and
 798-5   Safety Code, are amended to read as follows:
 798-6         (a)  The records and proceedings of a medical committee are
 798-7   confidential and are not subject to court subpoena.  A proceeding
 798-8   of a medical peer review committee, as defined by Section 151.002,
 798-9   Occupations Code [1.03, Medical Practice Act (Article 4495b,
798-10   Vernon's Texas Civil Statutes)], or medical committee, or a meeting
798-11   of the governing body of a public hospital, hospital district, or
798-12   hospital authority at which the governing body receives records,
798-13   information, or reports provided by a medical committee or medical
798-14   peer review committee is not subject to Chapter 551, Government
798-15   Code.  Records, information, or reports of a medical committee or
798-16   medical peer review committee and records, information, or reports
798-17   provided by a medical committee or medical peer review committee to
798-18   the governing body of a public hospital, hospital district, or
798-19   hospital authority are not subject to disclosure under Chapter 552,
798-20   Government Code.
798-21         (c)  This section and Subchapter A, Chapter 160, Occupations
798-22   Code [Section 5.06, Medical Practice Act (Article 4495b, Vernon's
798-23   Texas Civil Statutes)], do not apply to records made or maintained
798-24   in the regular course of business by a hospital, health maintenance
798-25   organization, medical organization, university medical center or
798-26   health science center, hospital district, hospital authority, or
798-27   extended care facility.
 799-1         SECTION 14.783. Section 161.204, Health and Safety Code, is
 799-2   amended to read as follows:
 799-3         Sec. 161.204.  APPLICATION OF OTHER LAW. This subchapter
 799-4   controls over Section 611.0045 of this code and Section 159.006,
 799-5   Occupations Code [5.08(k), Medical Practice Act (Article 4495b,
 799-6   Vernon's Texas Civil Statutes)], and any other provision that
 799-7   authorizes the charging of a fee for providing medical or mental
 799-8   health records.
 799-9         SECTION 14.784. Section 164.003(6), Health and Safety Code,
799-10   is amended to read as follows:
799-11               (6)  "Mental health professional" means a:
799-12                     (A)  "physician" as defined by Section 571.003;
799-13                     (B)  "licensed professional counselor" as defined
799-14   by Section 503.002, Occupations Code [2, Licensed Professional
799-15   Counselor Act (Article 4512g, Vernon's Texas Civil Statutes)];
799-16                     (C)  "chemical dependency counselor" as defined
799-17   by Section 504.001, Occupations Code [1, Chapter 635, Acts of the
799-18   72nd Legislature, Regular Session, 1991 (Article 4512o, Vernon's
799-19   Texas Civil Statutes)];
799-20                     (D)  "psychologist" offering "psychological
799-21   services" as defined by Section 501.003, Occupations Code [2,
799-22   Psychologists' Certification and Licensing Act (Article 4512c,
799-23   Vernon's Texas Civil Statutes)];
799-24                     (E)  "registered nurse" licensed under Chapter
799-25   301, Occupations Code [7, Title 71, Revised Statutes];
799-26                     (F)  "licensed vocational nurse" as defined by
799-27   Section 302.001, Occupations Code [1, Article 4528c, Revised
 800-1   Statutes];
 800-2                     (G)  "licensed marriage and family therapist" as
 800-3   defined by Section 502.002, Occupations Code [2, Licensed Marriage
 800-4   and Family Therapist Act (Article 4512c-1, Vernon's Texas Civil
 800-5   Statutes)]; and
 800-6                     (H)  "social worker" as defined by Section
 800-7   505.002, Occupations [50.001(a), Human Resources] Code.
 800-8         SECTION 14.785. Section 192.002(b), Health and Safety Code,
 800-9   is amended to read as follows:
800-10         (b)  The section of the birth certificate entitled "For
800-11   Medical and Health Use Only" is not part of the legal birth
800-12   certificate. Information held by the department under that section
800-13   of the certificate is confidential.  That information may not be
800-14   released or made public on subpoena or otherwise, except that
800-15   release may be made for statistical purposes only so that no
800-16   person, patient, or facility is identified, or to medical personnel
800-17   of a health care entity, as that term is defined in Subtitle B,
800-18   Title 3, Occupations Code [the Medical Practice Act (Article 4495b,
800-19   Vernon's Texas Civil Statutes)], or appropriate state or federal
800-20   agencies for statistical research.  The board may adopt rules to
800-21   implement this subsection.
800-22         SECTION 14.786. Section 241.026(a), Health and Safety Code,
800-23   is amended to read as follows:
800-24         (a)  The board shall adopt and enforce rules to further the
800-25   purposes of this chapter.  The rules at a minimum shall address:
800-26               (1)  minimum requirements for staffing by physicians
800-27   and nurses;
 801-1               (2)  hospital services relating to patient care;
 801-2               (3)  fire prevention, safety, and sanitation
 801-3   requirements in hospitals;
 801-4               (4)  patient care and a patient bill of rights;
 801-5               (5)  compliance with other state and federal laws
 801-6   affecting the health, safety, and rights of hospital patients; and
 801-7               (6)  compliance with nursing peer review under
 801-8   Subchapter I, Chapter 301, [Articles 4525a] and Chapter 303,
 801-9   Occupations Code [4525b, Revised Statutes], and the rules of the
801-10   Board of Nurse Examiners relating to peer review.
801-11         SECTION 14.787. Section 241.105(e), Health and Safety Code,
801-12   is amended to read as follows:
801-13         (e)  Nothing in this section shall be construed as modifying
801-14   Subtitle B, Title 3, Occupations Code, Chapter 204 or 301,
801-15   Occupations Code [the Medical Practice Act (Article 4495b, Vernon's
801-16   Texas Civil Statutes), the Nursing Practice Act (Articles
801-17   4513-4528, Revised Statutes), the Physician Assistant Licensing Act
801-18   (Article 4495b-1, Vernon's Texas Civil Statutes)], or any other law
801-19   relating to the scope of practice of physicians, advanced practice
801-20   nurses, or physician assistants.
801-21         SECTION 14.788. Section 245.004(a), Health and Safety Code,
801-22   is amended to read as follows:
801-23         (a)  The following facilities need not be licensed under this
801-24   chapter:
801-25               (1)  a hospital licensed under Chapter 241 (Texas
801-26   Hospital Licensing Law); or
801-27               (2)  the office of a physician licensed under Subtitle
 802-1   B, Title 3, Occupations Code [the Medical Practice Act (Article
 802-2   4495b, Vernon's Texas Civil Statutes)], unless the office is used
 802-3   for the purpose of performing more than 300 abortions in any
 802-4   12-month period.
 802-5         SECTION 14.789. Section 245.010(b), Health and Safety Code,
 802-6   is amended to read as follows:
 802-7         (b)  Only a physician as defined by Subtitle B, Title 3,
 802-8   Occupations Code, [the Medical Practice Act (Article 4495b,
 802-9   Vernon's Texas Civil Statutes)] may perform an abortion.
802-10         SECTION 14.790. Section 251.001(9), Health and Safety Code,
802-11   is amended to read as follows:
802-12               (9)  "Physician" means an individual who is licensed to
802-13   practice medicine under Subtitle B, Title 3, Occupations Code [the
802-14   Medical Practice Act (Article 4495b, Vernon's Texas Civil
802-15   Statutes)].
802-16         SECTION 14.791. Section 312.002(3), Health and Safety Code,
802-17   is amended to read as follows:
802-18               (3)  "Coordinating entity" means a nonprofit
802-19   corporation under the Texas Non-Profit Corporation Act (Article
802-20   1396-1.01 et seq., Vernon's Texas Civil Statutes) that is a health
802-21   organization approved and certified by the Texas State Board of
802-22   Medical Examiners under Chapter 162, Occupations Code [Section
802-23   5.01, Medical Practice Act (Article 4495b, Vernon's Texas Civil
802-24   Statutes)].
802-25         SECTION 14.792. Section 401.424(a), Health and Safety Code,
802-26   is amended to read as follows:
802-27         (a)  To receive a mammography certification under this
 803-1   subchapter, the mammography system must, at a minimum:
 803-2               (1)  meet criteria at least as stringent as the
 803-3   American College of Radiology mammography accreditation program;
 803-4               (2)  be specifically designed and used for the
 803-5   performance of mammography;
 803-6               (3)  be operated by an individual certified as a
 803-7   medical radiologic technologist under Chapter 601, Occupations Code
 803-8   [1096, Acts of the 70th Legislature, Regular Session, 1987 (Article
 803-9   4512m, Vernon's Texas Civil Statutes)], who meets, at a minimum,
803-10   the requirements for personnel who perform mammography established
803-11   by the Mammography Quality Standards Act of 1992 (42 U.S.C. Section
803-12   263b); and
803-13               (4)  be used in a facility that:
803-14                     (A)  meets, at minimum, the requirements for
803-15   certification of the Mammography Quality Standards Act of 1992 (42
803-16   U.S.C. Section 263b);
803-17                     (B)  has a licensed medical physicist specialized
803-18   in radiology under Chapter 602, Occupations Code [235, Acts of the
803-19   72nd Legislature, Regular Session, 1991 (Article 4512n, Vernon's
803-20   Texas Civil Statutes)], who at least annually provides on-site
803-21   consultation to the facility, including a complete evaluation of
803-22   the entire mammography system to ensure compliance with this
803-23   subchapter;
803-24                     (C)  maintains records of the consultations
803-25   required under Paragraph (B) for not less than seven years after
803-26   the date the consultation was performed;
803-27                     (D)  establishes a quality control program that
 804-1   meets requirements that are at least as stringent as those of the
 804-2   American College of Radiology mammography accreditation program;
 804-3   and
 804-4                     (E)  maintains and makes available to a patient
 804-5   of the facility original mammograms performed at the facility until
 804-6   the earlier of either:
 804-7                           (i)  the fifth anniversary of the
 804-8   mammography or, if an additional mammogram of the same patient is
 804-9   not performed by the facility, the 10th anniversary of the
804-10   mammography; or
804-11                           (ii)  at the request of the patient, the
804-12   date the patient's medical records are forwarded to another medical
804-13   institution.
804-14         SECTION 14.793. Section 431.042(e), Health and Safety Code,
804-15   is amended to read as follows:
804-16         (e)  This section does not apply to:
804-17               (1)  a pharmacy that:
804-18                     (A)  complies with Subtitle J, Title 3,
804-19   Occupations Code [the Texas Pharmacy Act (Article 4542a-1, Vernon's
804-20   Texas Civil Statutes)];
804-21                     (B)  regularly engages in dispensing prescription
804-22   drugs or devices on prescriptions of practitioners licensed to
804-23   administer the drugs or devices to their patients in the course of
804-24   their professional practice; and
804-25                     (C)  does not, through a subsidiary or otherwise,
804-26   manufacture, prepare, propagate, compound, or process a drug or
804-27   device for sale other than in the regular course of its business of
 805-1   dispensing or selling drugs or devices at retail;
 805-2               (2)  a practitioner licensed to prescribe or administer
 805-3   a drug who manufactures, prepares, propagates, compounds, or
 805-4   processes the drug solely for use in the course of the
 805-5   practitioner's professional practice;
 805-6               (3)  a practitioner licensed to prescribe or use a
 805-7   device who manufactures or processes the device solely for use in
 805-8   the course of the practitioner's professional practice; or
 805-9               (4)  a person who manufactures, prepares, propagates,
805-10   compounds, or processes a drug or manufactures or processes a
805-11   device solely for use in research, teaching, or chemical analysis
805-12   and not for sale.
805-13         SECTION 14.794. Section 481.073(c), Health and Safety Code,
805-14   is amended to read as follows:
805-15         (c)  This section does not relieve a practitioner or the
805-16   practitioner's designated agent from the requirement of Subchapter
805-17   A, Chapter 562, Occupations Code [Section 40, Texas Pharmacy Act
805-18   (Article 4542a-1, Vernon's Texas Civil Statutes)].  A practitioner
805-19   is personally responsible for the actions of the designated agent
805-20   in communicating a prescription to a pharmacist.
805-21         SECTION 14.795. Sections 483.001(4), (10), (11), and (13),
805-22   Health and Safety Code, are amended to read as follows:
805-23               (4)  "Designated agent" means:
805-24                     (A)  a licensed nurse, physician assistant,
805-25   pharmacist, or other individual designated by a practitioner to
805-26   communicate prescription drug orders to a pharmacist;
805-27                     (B)  a licensed nurse, physician assistant, or
 806-1   pharmacist employed in a health care facility to whom the
 806-2   practitioner communicates a prescription drug order; or
 806-3                     (C)  a registered nurse or physician assistant
 806-4   authorized by a practitioner to carry out a prescription drug order
 806-5   for dangerous drugs under Subchapter B, Chapter 157, Occupations
 806-6   Code [Section 3.06(d)(5) or (6), Medical Practice Act (Article
 806-7   4495b, Vernon's Texas Civil Statutes)].
 806-8               (10)  "Pharmacy" means a facility where prescription
 806-9   drug or medication orders are received, processed, dispensed, or
806-10   distributed under this chapter, Chapter 481 of this code, and
806-11   Subtitle J, Title 3, Occupations Code [the Texas Pharmacy Act
806-12   (Article 4542a-1, Vernon's Texas Civil Statutes)]. The term does
806-13   not include a narcotic drug treatment program that is regulated by
806-14   Chapter 466, Health and Safety Code.
806-15               (11)  "Practice of pharmacy" means:
806-16                     (A)  provision of those acts or services
806-17   necessary to provide pharmaceutical care;
806-18                     (B)  interpretation and evaluation of
806-19   prescription drug orders or medication orders;
806-20                     (C)  participation in drug and device selection
806-21   as authorized by law, drug administration, drug regimen review, or
806-22   drug or drug-related research;
806-23                     (D)  provision of patient counseling;
806-24                     (E)  responsibility for:
806-25                           (i)  dispensing of prescription drug orders
806-26   or distribution of medication orders in the patient's best
806-27   interest;
 807-1                           (ii)  compounding and labeling of drugs and
 807-2   devices, except labeling by a manufacturer, repackager, or
 807-3   distributor of nonprescription drugs and commercially packaged
 807-4   prescription drugs and devices;
 807-5                           (iii)  proper and safe storage of drugs and
 807-6   devices; or
 807-7                           (iv)  maintenance of proper records for
 807-8   drugs and devices.  In this subdivision, "device" has the meaning
 807-9   assigned by Subtitle J, Title 3, Occupations Code [the Texas
807-10   Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes)]; or
807-11                     (F)  performance of a specific act of drug
807-12   therapy management for a patient delegated to a pharmacist by a
807-13   written protocol from a physician licensed by the state under
807-14   Subtitle B, Title 3, Occupations Code [the Medical Practice Act
807-15   (Article 4495b, Vernon's Texas Civil Statutes)].
807-16               (13)  "Prescription" means an order from a
807-17   practitioner, or an agent of the practitioner designated in writing
807-18   as authorized to communicate prescriptions, or an order made in
807-19   accordance with Subchapter B, Chapter 157, Occupations Code
807-20   [Section 3.06(d)(5) or (6), Medical Practice Act (Article 4495b,
807-21   Vernon's Texas Civil Statutes)], or Section 203.353, Occupations
807-22   Code [16A, Texas Midwifery Act (Article 4512i, Vernon's Texas Civil
807-23   Statutes)], to a pharmacist for a dangerous drug to be dispensed
807-24   that states:
807-25                     (A)  the date of the order's issue;
807-26                     (B)  the name and address of the patient;
807-27                     (C)  if the drug is prescribed for an animal, the
 808-1   species of the animal;
 808-2                     (D)  the name and quantity of the drug
 808-3   prescribed;
 808-4                     (E)  the directions for the use of the drug;
 808-5                     (F)  the intended use of the drug unless the
 808-6   practitioner determines the furnishing of this information is not
 808-7   in the best interest of the patient;
 808-8                     (G)  the name, address, and telephone number of
 808-9   the practitioner at the practitioner's usual place of business,
808-10   legibly printed or stamped; and
808-11                     (H)  the name, address, and telephone number of
808-12   the documented midwife, registered nurse, or physician assistant,
808-13   legibly printed or stamped, if signed by a documented midwife,
808-14   registered nurse, or physician assistant.
808-15         SECTION 14.796. Section 483.021(b), Health and Safety Code,
808-16   is amended to read as follows:
808-17         (b)  A pharmacist who is requested to dispense a dangerous
808-18   drug under a prescription issued by a therapeutic optometrist shall
808-19   determine, in the exercise of the pharmacist's professional
808-20   judgment, whether the prescription is for a dangerous drug that a
808-21   therapeutic optometrist is authorized to prescribe under Section
808-22   351.358, Occupations Code [1.03, Texas Optometry Act (Article
808-23   4552-1.01 et seq., Vernon's Texas Civil Statutes)].
808-24         SECTION 14.797. Sections 483.022(d) and (f), Health and
808-25   Safety Code, are amended to read as follows:
808-26         (d)  This section does not relieve a practitioner or the
808-27   practitioner's designated agent from the requirements of Subchapter
 809-1   A, Chapter 562, Occupations Code [Section 40, Texas Pharmacy Act
 809-2   (Article 4542a-1, Vernon's Texas Civil Statutes)].
 809-3         (f)  A practitioner may designate a person who is a licensed
 809-4   vocational nurse or has an education equivalent to or greater than
 809-5   that required for a licensed vocational nurse to communicate
 809-6   prescriptions of an advanced practice nurse or physician assistant
 809-7   authorized by the practitioner to sign prescription drug orders
 809-8   under Subchapter B, Chapter 157, Occupations Code [Section
 809-9   3.06(d)(5) or (6), Medical Practice Act (Article 4495b, Vernon's
809-10   Texas Civil Statutes)].
809-11         SECTION 14.798. Section 483.041(c), Health and Safety Code,
809-12   is amended to read as follows:
809-13         (c)  Subsection (a) does not apply to the possession of a
809-14   dangerous drug in the usual course of business or practice or in
809-15   the performance of official duties by the following persons or an
809-16   agent or employee of the person:
809-17               (1)  a pharmacy licensed by the board;
809-18               (2)  a practitioner;
809-19               (3)  a person who obtains a dangerous drug for lawful
809-20   research, teaching, or testing, but not for resale;
809-21               (4)  a hospital that obtains a dangerous drug for
809-22   lawful administration by a practitioner;
809-23               (5)  an officer or employee of the federal, state, or
809-24   local government;
809-25               (6)  a manufacturer or wholesaler licensed by the
809-26   commissioner of health under Chapter 431 (Texas Food, Drug, and
809-27   Cosmetic Act);
 810-1               (7)  a carrier or warehouseman;
 810-2               (8)  a home and community support services agency
 810-3   licensed under and acting in accordance with Chapter 142; or
 810-4               (9)  a documented midwife who obtains oxygen for
 810-5   administration to a mother or newborn or who obtains a dangerous
 810-6   drug for the administration of prophylaxis to a newborn for the
 810-7   prevention of ophthalmia neonatorum in accordance with Section
 810-8   203.353, Occupations Code [Section 16A, Texas Midwifery Act
 810-9   (Article 4512i, Vernon's Texas Civil Statutes)].
810-10         SECTION 14.799. Sections 483.042(a) and (f), Health and
810-11   Safety Code, are amended to read as follows:
810-12         (a)  A person commits an offense if the person delivers or
810-13   offers to deliver a dangerous drug:
810-14               (1)  unless:
810-15                     (A)  the dangerous drug is delivered or offered
810-16   for delivery by a pharmacist under:
810-17                           (i)  a prescription issued by a
810-18   practitioner described by Section 483.001(12)(A) or (B);
810-19                           (ii)  a prescription signed by a registered
810-20   nurse or physician assistant in accordance with Subchapter B,
810-21   Chapter 157, Occupations Code [Section 3.06(d)(5) or (6), Medical
810-22   Practice Act (Article 4495b, Vernon's Texas Civil Statutes)]; or
810-23                           (iii)  an original written prescription
810-24   issued by a practitioner described by Section 483.001(12)(C); and
810-25                     (B)  a label is attached to the immediate
810-26   container in which the drug is delivered or offered to be delivered
810-27   and the label contains the following information:
 811-1                           (i)  the name and address of the pharmacy
 811-2   from which the drug is delivered or offered for delivery;
 811-3                           (ii)  the date the prescription for the
 811-4   drug is dispensed;
 811-5                           (iii)  the number of the prescription as
 811-6   filed in the prescription files of the pharmacy from which the
 811-7   prescription is dispensed;
 811-8                           (iv)  the name of the practitioner who
 811-9   prescribed the drug and, if applicable, the name of the registered
811-10   nurse or physician assistant who signed the prescription;
811-11                           (v)  the name of the patient and, if the
811-12   drug is prescribed for an animal, a statement of the species of the
811-13   animal; and
811-14                           (vi)  directions for the use of the drug as
811-15   contained in the prescription; or
811-16               (2)  unless:
811-17                     (A)  the dangerous drug is delivered or offered
811-18   for delivery by:
811-19                           (i)  a practitioner in the course of
811-20   practice; or
811-21                           (ii)  a registered nurse or physician
811-22   assistant in the course of practice in accordance with Subchapter
811-23   B, Chapter 157, Occupations Code [Section 3.06(d)(5) or (6),
811-24   Medical Practice Act (Article 4495b, Vernon's Texas Civil
811-25   Statutes)]; and
811-26                     (B)  a label is attached to the immediate
811-27   container in which the drug is delivered or offered to be delivered
 812-1   and the label contains the following information:
 812-2                           (i)  the name and address of the
 812-3   practitioner who prescribed the drug, and if applicable, the name
 812-4   and address of the registered nurse or physician assistant;
 812-5                           (ii)  the date the drug is delivered;
 812-6                           (iii)  the name of the patient and, if the
 812-7   drug is prescribed for an animal, a statement of the species of the
 812-8   animal; and
 812-9                           (iv)  the name of the drug, the strength of
812-10   the drug, and directions for the use of the drug.
812-11         (f)  Provided all federal requirements are met, the labeling
812-12   provisions of Subsection (a) do not apply to a dangerous drug
812-13   prescribed or dispensed for administration to food production
812-14   animals in an agricultural operation under a written medical
812-15   directive or treatment guideline from a veterinarian licensed under
812-16   Chapter 801, Occupations Code [The Veterinary Licensing Act
812-17   (Article 8890, Revised Statutes) and its subsequent amendments].
812-18         SECTION 14.800. Section 531.001(g), Health and Safety Code,
812-19   is amended to read as follows:
812-20         (g)  It is the goal of this state to establish at least one
812-21   special officer for mental health assignment in each county.  To
812-22   achieve this goal, the department shall assist a local law
812-23   enforcement agency that desires to have an officer certified under
812-24   Section 1701.404, Occupations [415.037, Government] Code.
812-25         SECTION 14.801. Section 533.006(a), Health and Safety Code,
812-26   is amended to read as follows:
812-27         (a)  The department shall report to the Texas State Board of
 813-1   Medical Examiners any allegation received by the department that a
 813-2   physician employed by or under contract with the department has
 813-3   committed an action that constitutes a ground for the denial or
 813-4   revocation of the physician's license under Section 164.051,
 813-5   Occupations Code [3.08, Medical Practice Act (Article 4495b,
 813-6   Vernon's Texas Civil Statutes)]. The report must be made in the
 813-7   manner provided by Section 154.051, Occupations Code [4.02 of that
 813-8   Act].
 813-9         SECTION 14.802. Section 534.104(b), Health and Safety Code,
813-10   is amended to read as follows:
813-11         (b)  Nothing in this subchapter precludes one or more
813-12   community centers from forming a nonprofit corporation under
813-13   Chapter 162, Occupations Code [Section 5.01, Medical Practice Act
813-14   (Article 4495b, Vernon's Texas Civil Statutes)], to provide
813-15   services on a risk-sharing or capitated basis as permitted under
813-16   Article 21.52F, Insurance Code.
813-17         SECTION 14.803. Section 571.027(b), Health and Safety Code,
813-18   is amended to read as follows:
813-19         (b)  The board shall appoint to the committee:
813-20               (1)  three representatives of hospitals, at least two
813-21   of whom represent a facility described by Section 571.003(9)(B) or
813-22   (E);
813-23               (2)  three consumers of mental health services, each of
813-24   whom has received treatment in a facility described by Section
813-25   571.003(9)(B) or (E);
813-26               (3)  two physicians licensed under Subtitle B, Title 3,
813-27   Occupations Code [the Medical Practice Act (Article 4495b, Vernon's
 814-1   Texas Civil Statutes)], who practice psychiatry and are board
 814-2   certified in psychiatry, at least one of whom is board certified in
 814-3   child and adolescent psychiatry; and
 814-4               (4)  one family member of a person who has been a
 814-5   consumer of mental health services provided by a facility described
 814-6   by Section 571.003(9)(B) or (E).
 814-7         SECTION 14.804. Section 574.045(a), Health and Safety Code,
 814-8   is amended to read as follows:
 814-9         (a)  The court may authorize the transportation of a
814-10   committed patient or a patient detained under Section 573.022 or
814-11   574.023 to the designated mental health facility by:
814-12               (1)  a relative or other responsible person who has a
814-13   proper interest in the patient's welfare and who receives no
814-14   remuneration, except for actual and necessary expenses;
814-15               (2)  the facility administrator of the designated
814-16   mental health facility, if the administrator notifies the court
814-17   that facility personnel are available to transport the patient;
814-18               (3)  a special officer for mental health assignment
814-19   certified under Section 1701.404, Occupations [415.037, Government]
814-20   Code;
814-21               (4)  a representative of the local mental health
814-22   authority, who shall be reimbursed by the county; or
814-23               (5)  the sheriff or constable, if no person is
814-24   available under Subdivision (1), (2), (3), or (4).
814-25         SECTION 14.805. Section 578.005(b), Health and Safety Code,
814-26   is amended to read as follows:
814-27         (b)  A physician may not delegate the act of administering
 815-1   the therapy.  A nonphysician who administers electroconvulsive
 815-2   therapy is considered to be practicing medicine in violation of
 815-3   Subtitle B, Title 3, Occupations Code [the Medical Practice Act
 815-4   (Article 4495b, Vernon's Texas Civil Statutes)].
 815-5         SECTION 14.806. Section 611.0045(j), Health and Safety Code,
 815-6   is amended to read as follows:
 815-7         (j)  Notwithstanding Section 159.002, Occupations Code [5.08,
 815-8   Medical Practice Act (Article 4495b, Vernon's Texas Civil
 815-9   Statutes)], this section applies to the release of a confidential
815-10   record created or maintained by a professional, including a
815-11   physician, that relates to the diagnosis, evaluation, or treatment
815-12   of a mental or emotional condition or disorder, including
815-13   alcoholism or drug addiction.
815-14         SECTION 14.807. Section 755.030(a), Health and Safety Code,
815-15   is amended to read as follows:
815-16         (a)  In addition to the fees described by Section 51.202,
815-17   Occupations Code [12(f), Article 9100, Revised Statutes], the
815-18   commission may authorize the collection of fees for:
815-19               (1)  boiler inspections, including fees for special
815-20   inspections; and
815-21               (2)  other activities administered by the boiler
815-22   inspection section and authorized by rule of the commissioner.
815-23         SECTION 14.808. Section 773.003(18), Health and Safety Code,
815-24   is amended to read as follows:
815-25               (18)  "Medical supervision" means direction given to
815-26   emergency medical services personnel by a licensed physician under
815-27   Subtitle B, Title 3, Occupations Code, [the Medical Practice Act
 816-1   (Article 4495b, Vernon's Texas Civil Statutes)] and the rules
 816-2   adopted under that subtitle [Act] by the Texas State Board of
 816-3   Medical Examiners.
 816-4         SECTION 14.809. Section 822.046(c), Health and Safety Code,
 816-5   is amended to read as follows:
 816-6         (c)  It is a defense to prosecution under Section 822.044 or
 816-7   Section 822.045 that the person is a dog trainer or an employee of
 816-8   a guard dog company under Chapter 1702, Occupations Code [the
 816-9   Private Investigators and Private Security Agencies Act (Article
816-10   4413(29bb), Vernon's Texas Civil Statutes)].
816-11         SECTION 14.810. Section 826.023(e), Health and Safety Code,
816-12   is amended to read as follows:
816-13         (e)  This section does not prohibit a veterinarian licensed
816-14   by the State Board of Veterinary Medical Examiners from selling or
816-15   dispensing rabies vaccine to an individual with whom the
816-16   veterinarian has a veterinarian-client-patient relationship as
816-17   described by Chapter 801, Occupations Code, [The Veterinary
816-18   Licensing Act (Article 8890, Revised Statutes)] for the sole
816-19   purpose of allowing that individual to administer the rabies
816-20   vaccine to that individual's own livestock.
816-21         SECTION 14.811. Section 828.012(a), Health and Safety Code,
816-22   is amended to read as follows:
816-23         (a)  Surgery performed in accordance with this chapter must
816-24   be performed by a veterinarian or a full-time student of an
816-25   accredited college of veterinary medicine as provided by Chapter
816-26   801, Occupations Code [the Veterinary Licensing Act (Article 8890,
816-27   Vernon's Texas Civil Statutes)].
 817-1         SECTION 14.812. Section 22.015(a), Human Resources Code, is
 817-2   amended to read as follows:
 817-3         (a)  If the department receives an allegation that a
 817-4   physician employed by or under contract with the department has
 817-5   committed an action that constitutes a ground for the denial or
 817-6   revocation of the physician's license under Section 164.051,
 817-7   Occupations Code [3.08, Medical Practice Act (Article 4495b,
 817-8   Vernon's Texas Civil Statutes)], the department shall report the
 817-9   information to the Texas State Board of Medical Examiners in the
817-10   manner provided by Section 154.051, Occupations Code [4.02 of that
817-11   Act].
817-12         SECTION 14.813. Sections 32.027(c), (d), and (e), Human
817-13   Resources Code, are amended to read as follows:
817-14         (c)  A recipient of medical assistance that is authorized in
817-15   this chapter may select for the provision of respiratory care
817-16   therapy any person authorized to practice respiratory care under
817-17   Chapter 604, Occupations Code [829, Acts of the 69th Legislature,
817-18   Regular Session, 1985 (Article 4512l, Vernon's Texas Civil
817-19   Statutes)].  The department shall provide reimbursement to a person
817-20   authorized to practice respiratory care under that Act, a licensed
817-21   health care entity, or a physician licensed to practice medicine
817-22   under the laws of this state.
817-23         (d)  The department shall permit a recipient of medical
817-24   assistance under this chapter to receive services relating to
817-25   physical therapy from any person authorized to practice physical
817-26   therapy under Chapter 453, Occupations Code [836, Acts of the 62nd
817-27   Legislature, Regular Session, 1971 (Article 4512e, Vernon's Texas
 818-1   Civil Statutes)].
 818-2         (e)  The department shall assure that a recipient of medical
 818-3   assistance under this chapter may select a licensed psychologist or
 818-4   a licensed marriage and family therapist, as defined by Section
 818-5   502.002, Occupations Code [2, Licensed Marriage and Family
 818-6   Therapist Act (Article 4512c-1, Vernon's Texas Civil Statutes)], to
 818-7   perform any health care service or procedure covered under the
 818-8   medical assistance program if the selected psychologist or marriage
 818-9   and family therapist is authorized by law to perform the service or
818-10   procedure.  This subsection shall be liberally construed.
818-11         SECTION 14.814. Section 61.0813(d), Human Resources Code, is
818-12   amended to read as follows:
818-13         (d)  A polygraph examination required as a condition of
818-14   release under Subsection (a) must be administered by an individual
818-15   who is:
818-16               (1)  specified by the commission; and
818-17               (2)  licensed as a polygraph examiner under Chapter
818-18   1703, Occupations Code [the Polygraph Examiners Act (Article
818-19   4413(29cc), Vernon's Texas Civil Statutes)].
818-20         SECTION 14.815. Section 91.013(b), Labor Code, is amended to
818-21   read as follows:
818-22         (b)  Department background investigations are governed by
818-23   this chapter, Section 411.122, Government Code, and Chapter 53,
818-24   Occupations Code [Article 6252-13c, Revised Statutes, and by
818-25   Sections 2 through 5, Chapter 267, Acts of the 67th Legislature,
818-26   Regular Session, 1981 (Article 6252-13d, Vernon's Texas Civil
818-27   Statutes)].  Conviction of a crime does not automatically
 819-1   disqualify a controlling person, require the revocation of a
 819-2   license, or require the denial of an application for a new or
 819-3   renewed license.  The department shall consider criminal
 819-4   convictions as provided by Section 411.122, Government Code, and
 819-5   Chapter 53, Occupations Code [Article 6252-13c, Revised Statutes,
 819-6   and Sections 2 through 5, Chapter 267, Acts of the 67th
 819-7   Legislature, Regular Session, 1981 (Article 6252-13d, Vernon's
 819-8   Texas Civil Statutes)].
 819-9         SECTION 14.816. Section 91.021(a), Labor Code, is amended to
819-10   read as follows:
819-11         (a)  On a finding that a ground for disciplinary action
819-12   exists under one or more provisions of Section 91.020(a), the
819-13   department shall impose administrative sanctions as provided by
819-14   Section 51.353, Occupations Code [in Section 17, Article 9100,
819-15   Revised Statutes];  provided however, for the purposes of this
819-16   chapter [Act], the department may impose an administrative penalty
819-17   in an amount not less than $1,000 for each violation, but not more
819-18   than $50,000.
819-19         SECTION 14.817. Section 92.003, Labor Code, is amended to
819-20   read as follows:
819-21         Sec. 92.003.  AGENCY POWERS AND DUTIES. The department,
819-22   commissioner, and commission shall exercise the regulatory,
819-23   administrative, and licensing authority granted under this chapter
819-24   as provided by Chapter 51, Occupations Code [Article 9100, Revised
819-25   Statutes].
819-26         SECTION 14.818. Section 103.003(b), Labor Code, is amended to
819-27   read as follows:
 820-1         (b)  An employer may not disclose information about a
 820-2   licensed nurse or licensed vocational nurse that relates to conduct
 820-3   that is protected under Section 301.352 or 303.005, Occupations
 820-4   Code [Article 4525d, Revised Statutes].  The employer must provide
 820-5   an affected nurse an opportunity to submit a statement of
 820-6   reasonable length to the employer to establish the application of
 820-7   Section 301.352 or 303.005, Occupations Code [Article 4525d,
 820-8   Revised Statutes].
 820-9         SECTION 14.819. Section 85.0011, Local Government Code, is
820-10   amended to read as follows:
820-11         Sec. 85.0011.  QUALIFICATIONS.  A person is not eligible to
820-12   serve as sheriff unless the person:
820-13               (1)  has a high school diploma or a high school
820-14   equivalency certificate; and
820-15               (2)  is eligible to be licensed under Sections 1701.309
820-16   [Section 415.058] and 1701.312 [415.059], Occupations [Government]
820-17   Code.
820-18         SECTION 14.820. Section 85.004(b), Local Government Code, is
820-19   amended to read as follows:
820-20         (b)  A reserve deputy serves at the discretion of the sheriff
820-21   and may be called into service if the sheriff considers it
820-22   necessary to have additional officers to preserve the peace and
820-23   enforce the law.  The sheriff may authorize a reserve deputy who is
820-24   a peace officer as described by Article 2.12, Code of Criminal
820-25   Procedure, to carry a weapon or act as a peace officer at all
820-26   times, regardless of whether the reserve deputy is engaged in the
820-27   actual discharge of official duties, or may limit the authority of
 821-1   the reserve deputy to carry a weapon or act as a peace officer to
 821-2   only those times during which the reserve deputy is engaged in the
 821-3   actual discharge of official duties.  A reserve deputy who is not a
 821-4   peace officer as described by Article 2.12, Code of Criminal
 821-5   Procedure, may act as a peace officer only during the actual
 821-6   discharge of official duties.  A reserve deputy, regardless of
 821-7   whether the reserve deputy is a peace officer as described by
 821-8   Article 2.12, Code of Criminal Procedure, is not:
 821-9               (1)  eligible for participation in any program provided
821-10   by the county that is normally considered a financial benefit of
821-11   full-time employment or for any pension fund created by statute for
821-12   the benefit of full-time paid peace officers; or
821-13               (2)  exempt from Chapter 1702, Occupations Code [the
821-14   Private Investigators and Private Security Agencies Act (Article
821-15   4413(29bb), Vernon's Texas Civil Statutes)].
821-16         SECTION 14.821. Section 86.0021, Local Government Code, is
821-17   amended to read as follows:
821-18         Sec. 86.0021.  QUALIFICATIONS; REMOVAL.  (a)  A person is not
821-19   eligible to serve as constable unless the person:
821-20               (1)  has a high school diploma or a high school
821-21   equivalency certificate; and
821-22               (2)  is eligible to be licensed under Sections 1701.309
821-23   [415.058] and 1701.312 [415.059], Occupations [Government] Code.
821-24         (b)  On or before the 270th day after the date a constable
821-25   takes office, the constable shall provide, to the commissioners
821-26   court of the county in which the constable serves, evidence that
821-27   the constable has been issued a permanent peace officer license
 822-1   under Chapter 1701, Occupations [415, Government] Code.  A
 822-2   constable who fails to provide evidence of licensure under this
 822-3   subsection or who fails to maintain a permanent license while
 822-4   serving in office forfeits the office and is subject to removal in
 822-5   a quo warranto proceeding under Chapter 66, Civil Practice and
 822-6   Remedies Code.
 822-7         (c)  The license requirement of Subsection (b) supersedes the
 822-8   license requirement of Section 1701.302, Occupations [415.053,
 822-9   Government] Code.
822-10         SECTION 14.822. Section 86.012(b), Local Government Code, is
822-11   amended to read as follows:
822-12         (b)  A reserve deputy constable serves at the discretion of
822-13   the constable and may be called into service at any time that the
822-14   constable considers it necessary to have additional officers to
822-15   preserve the peace and enforce the law.  The constable may
822-16   authorize a reserve deputy constable who is a peace officer as
822-17   described by Article 2.12, Code of Criminal Procedure, to carry a
822-18   weapon or act as a peace officer at all times, regardless of
822-19   whether the reserve deputy constable is engaged in the actual
822-20   discharge of official duties, or may limit the authority of the
822-21   reserve deputy constable to carry a weapon or act as a peace
822-22   officer to only those times during which the reserve deputy
822-23   constable is engaged in the actual discharge of official duties. A
822-24   reserve deputy constable who is not a peace officer as described by
822-25   Article 2.12, Code of Criminal Procedure, may act as a peace
822-26   officer only during the actual discharge of official duties.  A
822-27   reserve deputy constable, regardless of whether the reserve deputy
 823-1   constable is a peace officer as described by Article 2.12, Code of
 823-2   Criminal Procedure, is not:
 823-3               (1)  eligible for participation in any program provided
 823-4   by the county that is normally considered a financial benefit of
 823-5   full-time employment or for any pension fund created by statute for
 823-6   the benefit of full-time paid peace officers; or
 823-7               (2)  exempt from Chapter 1702, Occupations Code [the
 823-8   Private Investigators and Private Security Agencies Act (Article
 823-9   4413(29bb), Vernon's Texas Civil Statutes)].
823-10         SECTION 14.823. Section 231.104(b), Local Government Code, is
823-11   amended to read as follows:
823-12         (b)  The commissioners court may not adopt an ordinance in
823-13   conflict with Chapter 2154, Occupations [Article 5.43-4, Insurance]
823-14   Code, or with any rule adopted under that chapter [article].  An
823-15   ordinance adopted in conflict with that chapter [article] is void.
823-16         SECTION 14.824. Section 235.003(b), Local Government Code, as
823-17   renumbered by Article 12 of this Act from Section 236.003(b), Local
823-18   Government Code, is amended to read as follows:
823-19         (b)  The commissioners court may not adopt a rule under this
823-20   chapter that:
823-21               (1)  authorizes the county fire marshal to regulate the
823-22   transportation of explosives if the point of origin and the
823-23   destination are outside the county; or
823-24               (2)  regulates a product or activity licensed or
823-25   regulated under Chapter 2154, Occupations [Article 5.43-4,
823-26   Insurance] Code, or a rule adopted under that chapter [article].
823-27         SECTION 14.825. Section 341.012(h), Local Government Code, is
 824-1   amended to read as follows:
 824-2         (h)  Reserve police officers may act only in a supplementary
 824-3   capacity to the regular police force and may not assume the
 824-4   full-time duties of regular police officers without complying with
 824-5   the requirements for regular police officers.  On approval of the
 824-6   appointment of a member who is a peace officer as described by
 824-7   Article 2.12, Code of Criminal Procedure, the chief of police may
 824-8   authorize the person appointed to carry a weapon or act as a peace
 824-9   officer at all times, regardless of whether the person is engaged
824-10   in the actual discharge of official duties, or may limit the
824-11   authority of the person to carry a weapon or act as a peace officer
824-12   to only those times during which the person is engaged in the
824-13   actual discharge of official duties.  A reserve police officer,
824-14   regardless of whether the reserve police officer is a peace officer
824-15   as described by  Article 2.12, Code of Criminal Procedure, is not:
824-16               (1)  eligible for participation in any program provided
824-17   by the governing body that is normally considered a financial
824-18   benefit of full-time employment or for any pension fund created by
824-19   statute for the benefit of full-time paid peace officers; or
824-20               (2)  exempt from Chapter 1702, Occupations Code [the
824-21   Private Investigators and Private Security Agencies Act (Article
824-22   4413(29bb), Vernon's Texas Civil Statutes)].
824-23         SECTION 14.826. Section 453.304, Occupations Code, is amended
824-24   to read as follows:
824-25         Sec. 453.304.  PROHIBITED PRACTICE. It is a violation of this
824-26   chapter for an individual licensed by the board to violate Section
824-27   102.001 [161.091, Health and Safety Code].
 825-1         SECTION 14.827. Section 605.352, Occupations Code, is amended
 825-2   to read as follows:
 825-3         Sec. 605.352.  VIOLATION OF SECTION 102.001 [HEALTH AND
 825-4   SAFETY CODE].  A person licensed under this chapter is considered
 825-5   to have violated this chapter if the person violates Section
 825-6   102.001 [161.091, Health and Safety Code].
 825-7         SECTION 14.828. Section 16.06(d), Penal Code, is amended to
 825-8   read as follows:
 825-9         (d)  It is an affirmative defense to prosecution under this
825-10   section that the person:
825-11               (1)  obtained the effective consent of the owner or
825-12   lessee of the motor vehicle before the electronic or mechanical
825-13   tracking device was installed;
825-14               (2)  was a peace officer who installed the device in
825-15   the course of a criminal investigation or pursuant to an order of a
825-16   court to gather information for a law enforcement agency;
825-17               (3)  assisted another whom the person reasonably
825-18   believed to be a peace officer authorized to install the device in
825-19   the course of a criminal investigation or pursuant to an order of a
825-20   court to gather information for a law enforcement agency; or
825-21               (4)  was a private investigator licensed under Chapter
825-22   1702, Occupations Code, [the Private Investigators and Private
825-23   Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
825-24   Statutes)] who installed the device:
825-25                     (A)  with written consent:
825-26                           (i)  to install the device given by the
825-27   owner or lessee of the motor vehicle; and
 826-1                           (ii)  to enter private residential
 826-2   property, if that entry was necessary to install the device, given
 826-3   by the owner or lessee of the property; or
 826-4                     (B)  pursuant to an order of or other
 826-5   authorization from a court to gather information.
 826-6         SECTION 14.829. Sections 22.011(c)(3) and (4), Penal Code,
 826-7   are amended to read as follows:
 826-8               (3)  "Health care services provider" means:
 826-9                     (A)  a physician licensed under Subtitle B, Title
826-10   3, Occupations Code [the Medical Practice Act (Article 4495b,
826-11   Vernon's Texas Civil Statutes)];
826-12                     (B)  a chiropractor licensed under Chapter 201,
826-13   Occupations Code [94, Acts of the 51st Legislature, Regular
826-14   Session, 1949 (Article 4512b, Vernon's Texas Civil Statutes)];
826-15                     (C)  a licensed vocational nurse licensed under
826-16   Chapter 302, Occupations Code [118, Acts of the 52nd Legislature,
826-17   1951 (Article 4528c, Vernon's Texas Civil Statutes)];
826-18                     (D)  a physical therapist licensed under Chapter
826-19   453, Occupations Code [836, Acts of the 62nd Legislature, Regular
826-20   Session, 1971 (Article 4512e, Vernon's Texas Civil Statutes)];
826-21                     (E)  a physician assistant licensed under Chapter
826-22   204, Occupations Code [the Physician Assistant Licensing Act
826-23   (Article 4495b-1, Vernon's Texas Civil Statutes)]; or
826-24                     (F)  a registered nurse or an advanced practice
826-25   nurse licensed under Chapter 301, Occupations Code [7, Title 71,
826-26   Revised Statutes].
826-27               (4)  "Mental health services provider" means an
 827-1   individual, licensed or unlicensed, who performs or purports to
 827-2   perform mental health services, including a:
 827-3                     (A)  licensed social worker as defined by Section
 827-4   505.002, Occupations [50.001, Human Resources] Code;
 827-5                     (B)  chemical dependency counselor as defined by
 827-6   Section 504.001, Occupations Code [1, Chapter 635, Acts of the 72nd
 827-7   Legislature, Regular Session, 1991 (Article 4512o, Vernon's Texas
 827-8   Civil Statutes)];
 827-9                     (C)  licensed professional counselor as defined
827-10   by Section 503.002, Occupations Code [2, Licensed Professional
827-11   Counselor Act (Article 4512g, Vernon's Texas Civil Statutes)];
827-12                     (D)  licensed marriage and family therapist as
827-13   defined by Section 502.002, Occupations Code [2, Licensed Marriage
827-14   and Family Therapist Act (Article 4512c-1, Vernon's Texas Civil
827-15   Statutes)];
827-16                     (E)  member of the clergy;
827-17                     (F)  psychologist offering psychological services
827-18   as defined by Section 501.003, Occupations Code [2, Psychologists'
827-19   Licensing Act (Article 4512c, Vernon's Texas Civil Statutes)]; or
827-20                     (G)  special officer for mental health assignment
827-21   certified under Section 1701.404, Occupations [415.037, Government]
827-22   Code.
827-23         SECTION 14.830. Section 35.01(2), Penal Code, is amended to
827-24   read as follows:
827-25               (2)  "Health care provider" means a person who renders
827-26   health care services or an agent or employee of an organization
827-27   that renders or provides a facility and means to render health care
 828-1   services.  The term includes a physician, surgeon, person who may
 828-2   be selected by an insured or a beneficiary under Article 21.52,
 828-3   Insurance Code, and person defined as a provider of health care
 828-4   under Section 152.003, Occupations Code [2.05(d)(1), Medical
 828-5   Practice Act (Article 4495b, Vernon's Texas Civil Statutes)].
 828-6         SECTION 14.831. Section 37.12(c), Penal Code, is amended to
 828-7   read as follows:
 828-8         (c)  In this section, "reserve law enforcement officer" has
 828-9   the same meaning as is given that term in Section 1701.001,
828-10   Occupations [415.001, Government] Code.
828-11         SECTION 14.832. Sections 43.251(a)(2) and (3), Penal Code,
828-12   are amended to read as follows:
828-13               (2)  "Massage" has the meaning assigned to the term
828-14   "massage therapy" by Section 455.001, Occupations Code [1, Chapter
828-15   752, Acts of the 69th Legislature, Regular Session, 1985 (Article
828-16   4512k, Vernon's Texas Civil Statutes)].
828-17               (3)  "Massage establishment" has the meaning assigned
828-18   by Section 455.001, Occupations Code [1, Chapter 752, Acts of the
828-19   69th Legislature, Regular Session, 1985 (Article 4512k, Vernon's
828-20   Texas Civil Statutes)].
828-21         SECTION 14.833. Section 46.035(e), Penal Code, is amended to
828-22   read as follows:
828-23         (e)  A license holder who is licensed as a security officer
828-24   under Chapter 1702, Occupations Code, [the Private Investigators
828-25   and Private Security Agencies Act (Article 4413(29bb), Vernon's
828-26   Texas Civil Statutes)] and employed as a security officer commits
828-27   an offense if, while in the course and scope of the security
 829-1   officer's employment, the security officer violates a provision of
 829-2   Subchapter H, Chapter 411, Government Code.
 829-3         SECTION 14.834. Section 47.02(c), Penal Code, is amended to
 829-4   read as follows:
 829-5         (c)  It is a defense to prosecution under this section that
 829-6   the actor reasonably believed that the conduct:
 829-7               (1)  was permitted under Chapter 2001, Occupations Code
 829-8   [the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
 829-9   Statutes)];
829-10               (2)  was permitted under Chapter 2002, Occupations Code
829-11   [the Charitable Raffle Enabling Act (Article 179f, Revised
829-12   Statutes)];
829-13               (3)  consisted entirely of participation in the state
829-14   lottery authorized by the State Lottery Act (Chapter 466,
829-15   Government Code);
829-16               (4)  was permitted under the Texas Racing Act (Article
829-17   179e, Vernon's Texas Civil Statutes); or
829-18               (5)  consisted entirely of participation in a drawing
829-19   for the opportunity to participate in a hunting, fishing, or other
829-20   recreational event conducted by the Parks and Wildlife Department.
829-21         SECTION 14.835. Section 47.09(a), Penal Code, is amended to
829-22   read as follows:
829-23         (a)  It is a defense to prosecution under this chapter that
829-24   the conduct:
829-25               (1)  was authorized under:
829-26                     (A)  Chapter 2001, Occupations Code [the Bingo
829-27   Enabling Act (Article 179d, Vernon's Texas Civil Statutes)];
 830-1                     (B)  Chapter 2002, Occupations Code; or
 830-2                     (C)  the Texas Racing Act (Article 179e, Vernon's
 830-3   Texas Civil Statutes)[; or]
 830-4                     [(C)  the Charitable Raffle Enabling Act (Article
 830-5   179f, Revised Statutes)];
 830-6               (2)  consisted entirely of participation in the state
 830-7   lottery authorized by Chapter 466, Government Code; or
 830-8               (3)  was a necessary incident to the operation of the
 830-9   state lottery and was directly or indirectly authorized by:
830-10                     (A)  Chapter 466, Government Code;
830-11                     (B)  the lottery division of the Texas Lottery
830-12   Commission;
830-13                     (C)  the Texas Lottery Commission; or
830-14                     (D)  the director of the lottery division of the
830-15   Texas Lottery Commission.
830-16         SECTION 14.836. Section 112.058(f), Tax Code, is amended to
830-17   correct references and to reflect the terminology used by
830-18   Subchapter K, Chapter 2001, Occupations Code, for the amounts
830-19   imposed and collected for the state under that subchapter to read
830-20   as follows:
830-21         (f)  All protest payments of taxes or of fees on prizes
830-22   imposed by and collected for the state under Chapter 2001,
830-23   Occupations Code, [the Bingo Enabling Act (Article 179d, Vernon's
830-24   Texas Civil Statutes)] that become due on or after September 1,
830-25   1993, are governed by Subchapter J, Chapter 403, Government Code.
830-26         SECTION 14.837. Section 151.0075, Tax Code, is amended to
830-27   read as follows:
 831-1         Sec. 151.0075.  "SECURITY SERVICE."  "Security service" means
 831-2   service for which a license is required under Section  1702.101 or
 831-3   1702.102, Occupations Code [Section 13, Private Investigators and
 831-4   Private Security Agencies Act (Article 4413(29bb), Vernon's Texas
 831-5   Civil Statutes)].
 831-6         SECTION 14.838. Section 662.008(b), Transportation Code, is
 831-7   amended to read as follows:
 831-8         (b)  Before the designated state agency may deny, suspend, or
 831-9   cancel the approval of a program sponsor or an instructor, notice
831-10   and opportunity for a hearing must be given as provided by:
831-11               (1)  Chapter 2001, Government Code; and
831-12               (2)  Chapter 53, Occupations Code [Article 6252-13c,
831-13   Revised Statutes; and]
831-14               [(3)  Sections 2 through 5, Chapter 267, Acts of the
831-15   67th Legislature, Regular Session, 1981 (Article 6252-13d, Vernon's
831-16   Texas Civil Statutes)].
831-17         SECTION 14.839. Section 663.017(b), Transportation Code, is
831-18   amended to read as follows:
831-19         (b)  Before the designated division or agency may deny,
831-20   suspend, or cancel the approval of a program sponsor or an
831-21   instructor, notice and opportunity for a hearing must be given as
831-22   provided by:
831-23               (1)  Chapter 2001, Government Code; and
831-24               (2)  Chapter 53, Occupations Code [Article 6252-13c,
831-25   Revised Statutes; and]
831-26               [(3)  Sections 2 through 5, Chapter 267, Acts of the
831-27   67th Legislature, Regular Session, 1981 (Article 6252-13d, Vernon's
 832-1   Texas Civil Statutes)].
 832-2         SECTION 14.840. Section 681.010(b), Transportation Code, is
 832-3   amended to read as follows:
 832-4         (b)  A security officer commissioned under Chapter 1702,
 832-5   Occupations Code, [the Private Investigators and Private Security
 832-6   Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes)]
 832-7   and employed by the owner of private property may file a charge
 832-8   against a person who commits an offense under this chapter at a
 832-9   parking space or area designated by the owner of the property as
832-10   provided by Section 681.009.
832-11        ARTICLE 15.  CHANGES RELATING TO PARKS AND WILDLIFE CODE
832-12         SECTION 15.001. Section 62.017, Parks and Wildlife Code, as
832-13   added by Chapters 851 and 959, Acts of the 76th Legislature,
832-14   Regular Session, 1999, is reenacted to read as follows:
832-15         Sec. 62.017.  DISPOSITION OF SEIZED PROPERTY.  (a)  If a
832-16   person is finally convicted of an offense under Section 62.003,
832-17   62.004, 62.005, or 62.011(c), the court entering judgment of
832-18   conviction may order any weapon or other personal property used in
832-19   the commission of the offense destroyed or forfeited to the
832-20   department.
832-21         (b)  If the department receives a forfeiture order from a
832-22   court as authorized by this section, the department may:
832-23               (1)  use the property in its normal operation;
832-24               (2)  sell or transfer the property;  or
832-25               (3)  destroy the property.
832-26         (c)  This section does not apply to a vehicle, aircraft, or
832-27   vessel.
 833-1         (d)  If the disposition of property under this section is by
 833-2   sale of the property, the sale proceeds shall be deposited in the
 833-3   game, fish, and water safety account.
 833-4               ARTICLE 16.  CHANGES RELATING TO PENAL CODE
 833-5         SECTION 16.001. Section 28.08(e), Penal Code, as amended by
 833-6   Chapters 166 and 695, Acts of the 76th Legislature, Regular
 833-7   Session, 1999, is amended to properly number subdivisions to read
 833-8   as follows:
 833-9         (e)  In this section:
833-10               (1)  "Aerosol paint" means an aerosolized paint
833-11   product.
833-12               (2)  "Etching or engraving device" means a device that
833-13   makes a delineation or impression on tangible property, regardless
833-14   of the manufacturer's intended use for that device.
833-15               (3)  "Indelible marker" means a device that makes a
833-16   mark with a paint or ink product that is specifically formulated to
833-17   be more difficult to erase, wash out, or remove than ordinary paint
833-18   or ink products.
833-19               (4) [(3)]  "Institution of higher education" has the
833-20   meaning assigned by Section 481.134, Health and Safety Code.
833-21               (5) [(4)]  "School" means a private or public
833-22   elementary or secondary school.
833-23         SECTION 16.002. Section 30.05(d), Penal Code, as amended by
833-24   Chapters 169 and 765, Acts of the 76th Legislature, Regular
833-25   Session, 1999, is reenacted to read as follows:
833-26         (d)  An offense under Subsection (e) is a Class C misdemeanor
833-27   unless it is committed in a habitation or unless the actor carries
 834-1   a deadly weapon on or about the actor's person during the
 834-2   commission of the offense, in which event it is a Class A
 834-3   misdemeanor.  An offense under Subsection (a) is a Class B
 834-4   misdemeanor, except that the offense is a Class A misdemeanor if:
 834-5               (1)  the offense is committed:
 834-6                     (A)  in a habitation or a shelter center; or
 834-7                     (B)  on a Superfund site; or
 834-8               (2)  the actor carries a deadly weapon on or about his
 834-9   person during the commission of the offense.
834-10         SECTION 16.003. The heading to Section 49.03, Penal Code, is
834-11   amended to conform the heading of that section to the substance of
834-12   that section to read as follows:
834-13         Sec. 49.03.  CONSUMPTION [OR POSSESSION] OF ALCOHOLIC
834-14   BEVERAGE IN MOTOR VEHICLE.
834-15             ARTICLE 17.  CHANGES RELATING TO PROPERTY CODE
834-16         SECTION 17.001. (a)  Section 92.158, Property Code, as
834-17   amended by Chapter 48, Acts of the 73rd Legislature, Regular
834-18   Session, 1993, is renumbered as Section 92.1641, Property Code, and
834-19   amended to read as follows:
834-20         Sec. 92.1641 [92.158].  LANDLORD'S DEFENSES RELATING TO
834-21   INSTALLING OR REKEYING CERTAIN SECURITY DEVICES. The landlord has a
834-22   defense to liability under Section 92.164 [92.156] if:
834-23               (1)  the tenant has not fully paid all rent then due
834-24   from the tenant on the date the tenant gives a request under
834-25   Subsection (a) of Section 92.157 [92.153] or the notice required by
834-26   Section 92.164 [92.156]; or
834-27               (2)  on the date the tenant terminates the lease or
 835-1   files suit the tenant has not fully paid costs requested by the
 835-2   landlord and authorized by Section 92.162 [92.154].
 835-3         (b)  The heading of Section 92.167, Property Code, is amended
 835-4   to read as follows:
 835-5         Sec. 92.167.  LANDLORD'S DEFENSES RELATING TO COMPLIANCE WITH
 835-6   TENANT'S REQUEST.
 835-7         SECTION 17.002. Section 142.004(a), Property Code, as amended
 835-8   by Chapters 94 and 195, Acts of the 76th Legislature, Regular
 835-9   Session, 1999, is reenacted and amended to read as follows:
835-10         (a)  In a suit in which a minor or incapacitated person who
835-11   has no legal guardian is represented by a next friend or an
835-12   appointed guardian ad litem, any money recovered by the plaintiff,
835-13   if not otherwise managed under this chapter, may be invested:
835-14               (1)  by the next friend or guardian ad litem in:
835-15                     (A)  the Texas tomorrow fund established by
835-16   Subchapter F, Chapter 54, Education Code; or
835-17                     (B)  interest-bearing time deposits in a
835-18   financial institution doing business in this state and insured by
835-19   the Federal Deposit Insurance Corporation; or
835-20               (2)  by the clerk of the court, on written order of the
835-21   court of proper jurisdiction, in:
835-22                     (A)  the Texas tomorrow fund established by
835-23   Subchapter F, Chapter 54, Education Code;
835-24                     (B)  interest-bearing deposits in a financial
835-25   institution doing business in this state and [that is] insured by
835-26   the Federal Deposit Insurance Corporation;
835-27                     (C) [(B)]  United States treasury bills;
 836-1                     (D) [(C)]  an eligible interlocal investment pool
 836-2   that meets the requirements of Sections 2256.016, 2256.017, and
 836-3   2256.019, Government Code; or
 836-4                     (E) [(D)]  a no-load money market mutual fund, if
 836-5   the fund:
 836-6                           (i)  is regulated by the Securities and
 836-7   Exchange Commission;
 836-8                           (ii)  has a dollar weighted average stated
 836-9   maturity of 90 days or fewer; and
836-10                           (iii)  includes in its investment
836-11   objectives the maintenance of a stable net asset value of $1 for
836-12   each share[; or]
836-13                     [(E)  the Texas tomorrow fund established by
836-14   Subchapter F, Chapter 54, Education Code].
836-15         SECTION 17.003. Section 301.003, Property Code, is amended to
836-16   more accurately reflect the law from which it was derived by adding
836-17   Subdivision (12) to read as follows:
836-18               (12)  "Person" means:
836-19                     (A)  an individual;
836-20                     (B)  a corporation, partnership, association,
836-21   unincorporated organization, labor organization, mutual company,
836-22   joint-stock company, and trust; and
836-23                     (C)  a legal representative, a trustee, a trustee
836-24   in a case under Title 11, U.S.C., a receiver, and a fiduciary.
836-25                ARTICLE 18.  CHANGES RELATING TO TAX CODE
836-26         SECTION 18.001. (a)  Section 11.18, Tax Code, as amended by
836-27   Chapters 138, 266, 924, and 1443, Acts of the 76th Legislature,
 837-1   Regular Session, 1999, is reenacted and amended as Sections 11.18
 837-2   and 11.1801, Subchapter B, Chapter 11, Tax Code, to read as
 837-3   follows:
 837-4         Sec. 11.18.  CHARITABLE ORGANIZATIONS. (a)  An organization
 837-5   that qualifies as a charitable organization as provided by this
 837-6   section is entitled to an exemption from taxation of:
 837-7               (1)  the buildings and tangible personal property that:
 837-8                     (A)  are owned by the charitable organization;
 837-9   and
837-10                     (B)  except as permitted by Subsection (b), are
837-11   used exclusively by qualified charitable organizations; and
837-12               (2)  the real property owned by the charitable
837-13   organization consisting of:
837-14                     (A)  an incomplete improvement that:
837-15                           (i)  is under active construction or other
837-16   physical preparation; and
837-17                           (ii)  is designed and intended to be used
837-18   exclusively by qualified charitable organizations; and
837-19                     (B)  the land on which the incomplete improvement
837-20   is located that will be reasonably necessary for the use of the
837-21   improvement by qualified charitable organizations.
837-22         (b)  Use of exempt property by persons who are not charitable
837-23   organizations qualified as provided by this section does not result
837-24   in the loss of an exemption authorized by this section if the use
837-25   is incidental to use by qualified charitable organizations and
837-26   limited to activities that benefit the beneficiaries of the
837-27   charitable organizations that own or use the property.
 838-1         (c)  To qualify as a charitable organization for the purposes
 838-2   of this section, an organization, whether operated by an
 838-3   individual, or as a corporation, [as a] foundation, [as a] trust,
 838-4   or [as an] association, must meet the applicable requirements of
 838-5   Subsections (d), (e), (f), and (g) [of this section].
 838-6         (d)  A charitable organization must be organized exclusively
 838-7   to perform religious, charitable, scientific, literary, or
 838-8   educational purposes and, except as permitted by Subsections (h)
 838-9   and (l) [of this section], engage exclusively in performing one or
838-10   more of the following charitable functions:
838-11               (1)  providing medical care without regard to the
838-12   beneficiaries' ability to pay, which in the case of a nonprofit
838-13   hospital or hospital system means providing charity care and
838-14   community benefits in accordance with Section 11.1801 [as set forth
838-15   in Paragraph (A), (B), (C), (D), (E), (F), (G), or (H):]
838-16                     [(A)  charity care and government-sponsored
838-17   indigent health care are provided at a level which is reasonable in
838-18   relation to the community needs, as determined through the
838-19   community needs assessment, the available resources of the hospital
838-20   or hospital system, and the tax-exempt benefits received by the
838-21   hospital or hospital system;]
838-22                     [(B)  charity care and government-sponsored
838-23   indigent health care are provided in an amount equal to at least
838-24   four percent of the hospital's or hospital system's net patient
838-25   revenue;]
838-26                     [(C)  charity care and government-sponsored
838-27   indigent health care are provided in an amount equal to at least
 839-1   100 percent of the hospital's or hospital system's tax-exempt
 839-2   benefits, excluding federal income tax;]
 839-3                     [(D)  a nonprofit hospital that has been
 839-4   designated as a disproportionate share hospital under the state
 839-5   Medicaid program in the current year or in either of the previous
 839-6   two fiscal years shall be considered to have provided a reasonable
 839-7   amount of charity care and government-sponsored indigent health
 839-8   care and shall be deemed in compliance with the standards in this
 839-9   subsection;]
839-10                     [(E)  for tax years before 1996, charity care and
839-11   community benefits are provided in a combined amount equal to at
839-12   least five percent of the hospital's or hospital system's net
839-13   patient revenue, provided that charity care and
839-14   government-sponsored indigent health care are provided in an amount
839-15   equal to at least three percent of net patient revenue;]
839-16                     [(F)  beginning with the hospital's or hospital
839-17   system's tax year starting after 1995, charity care and community
839-18   benefits are provided in a combined amount equal to at least five
839-19   percent of the hospital's or hospital system's net patient revenue,
839-20   provided that charity care and government-sponsored indigent health
839-21   care are provided in an amount equal to at least four percent of
839-22   net patient revenue;]
839-23                     [(G)  a hospital operated on a nonprofit basis
839-24   that is located in a county with a population of less than 50,000
839-25   and in which the entire county or the population of the entire
839-26   county has been designated as a health professionals shortage area
839-27   is considered to be in compliance with the standards provided by
 840-1   this subsection; or]
 840-2                     [(H)  a hospital providing health care services
 840-3   to inpatients or outpatients without receiving any payment for
 840-4   providing those services from any source, including the patient or
 840-5   person legally obligated to support the patient, third-party
 840-6   payors, Medicare, Medicaid, or any other state or local indigent
 840-7   care program but excluding charitable donations, legacies,
 840-8   bequests, or grants or payments for research, is considered to be
 840-9   in compliance with the standards provided by this subsection];
840-10               (2)  providing support or relief to orphans,
840-11   delinquent, dependent, or handicapped children in need of
840-12   residential care, abused or battered spouses or children in need of
840-13   temporary shelter, the impoverished, or victims of natural disaster
840-14   without regard to the beneficiaries' ability to pay;
840-15               (3)  providing support to elderly persons, including
840-16   the provision of recreational or social activities and facilities
840-17   designed to address the special needs of elderly persons, or to the
840-18   handicapped, without regard to the beneficiaries' ability to pay;
840-19               (4)  preserving a historical landmark or site;
840-20               (5)  promoting or operating a museum, zoo, library,
840-21   theater of the dramatic or performing arts, or symphony orchestra
840-22   or choir;
840-23               (6)  promoting or providing humane treatment of
840-24   animals;
840-25               (7)  acquiring, storing, transporting, selling, or
840-26   distributing water for public use;
840-27               (8)  answering fire alarms and extinguishing fires with
 841-1   no compensation or only nominal compensation to the members of the
 841-2   organization;
 841-3               (9)  promoting the athletic development of boys or
 841-4   girls under the age of 18 years;
 841-5               (10)  preserving or conserving wildlife;
 841-6               (11)  promoting educational development through loans
 841-7   or scholarships to students;
 841-8               (12)  providing halfway house services pursuant to a
 841-9   certification as a halfway house by the pardons and paroles
841-10   division of the Texas Department of Criminal Justice [Board of
841-11   Pardons and Paroles];
841-12               (13)  providing permanent housing and related social,
841-13   health care, and educational facilities for persons who are 62
841-14   years of age or older without regard to the residents' ability to
841-15   pay;
841-16               (14)  promoting or operating an art gallery, museum, or
841-17   collection, in a permanent location or on tour, that is open to the
841-18   public;
841-19               (15)  providing for the organized solicitation and
841-20   collection for distributions through gifts, grants, and agreements
841-21   to nonprofit charitable, education, religious, and youth
841-22   organizations that provide direct human, health, and welfare
841-23   services;
841-24               (16)  performing biomedical or scientific research or
841-25   biomedical or scientific education for the benefit of the public;
841-26               (17)  operating a television station that produces or
841-27   broadcasts educational, cultural, or other public interest
 842-1   programming and that receives grants from the Corporation for
 842-2   Public Broadcasting under 47 U.S.C. Section 396, as amended [and
 842-3   its subsequent amendments];
 842-4               (18)  providing housing for low-income and
 842-5   moderate-income families, for unmarried individuals 62 years of age
 842-6   or older, for handicapped individuals, and for families displaced
 842-7   by urban renewal, through the use of trust assets that are
 842-8   irrevocably and, pursuant to a contract entered into before
 842-9   December 31, 1972, contractually dedicated on the sale or
842-10   disposition of the housing to a charitable organization that
842-11   performs charitable functions described by Subdivision (9);
842-12               (19)  providing housing and related services to persons
842-13   who are 62 years of age or older in a retirement community, if the
842-14   retirement community provides independent living services, assisted
842-15   living services, and nursing services to its residents on a single
842-16   campus:
842-17                     (A)  without regard to the residents' ability to
842-18   pay; or
842-19                     (B)  in which at least four percent of the
842-20   retirement community's combined net resident revenue is provided in
842-21   charitable care to its residents; or
842-22               (20)  providing housing on a cooperative basis to
842-23   students of an institution of higher education if:
842-24                     (A)  the organization is exempt from federal
842-25   income taxation under Section 501(a), [of the] Internal Revenue
842-26   Code of 1986, as amended [and its subsequent amendments], by being
842-27   listed as an exempt entity under Section 501(c)(3) of that code;
 843-1                     (B)  membership in the organization is open to
 843-2   all students enrolled in the institution and is not limited to
 843-3   those chosen by current members of the organization;
 843-4                     (C)  the organization is governed by its members;
 843-5   and
 843-6                     (D)  the members of the organization share the
 843-7   responsibility for managing the housing.
 843-8         [For purposes of satisfying Paragraph (F) of Subdivision (1),
 843-9   a hospital or hospital system may not change its existing fiscal
843-10   year unless the hospital or hospital system changes its ownership
843-11   or corporate structure as a result of a sale or merger.]
843-12         [For purposes of this subsection, a hospital that satisfies
843-13   Paragraph (A), (D), (G), or (H) of Subdivision (1) shall be
843-14   excluded in determining a hospital system's compliance with the
843-15   standards provided by Paragraph (B), (C), (E), or (F) of
843-16   Subdivision (1).]
843-17         [For purposes of this subsection, the terms "charity care,"
843-18   "government-sponsored indigent health care," "health care
843-19   organization," "hospital system," "net patient revenue," "nonprofit
843-20   hospital," and "tax-exempt benefits" have the meanings set forth in
843-21   Sections 311.031 and 311.042, Health and Safety Code.  A
843-22   determination of the amount of community benefits and charity care
843-23   and government-sponsored indigent health care provided by a
843-24   hospital or hospital system and the hospital's or hospital system's
843-25   compliance with the requirements of Section 311.045, Health and
843-26   Safety Code, shall be based on the most recently completed and
843-27   audited prior fiscal year of the hospital or hospital system.]
 844-1         [The providing of charity care and government-sponsored
 844-2   indigent health care in accordance with Paragraph (A) of
 844-3   Subdivision (1) shall be guided by the prudent business judgment of
 844-4   the hospital which will ultimately determine the appropriate level
 844-5   of charity care and government-sponsored indigent health care based
 844-6   on the community needs, the available resources of the hospital,
 844-7   the tax-exempt benefits received by the hospital, and other factors
 844-8   that may be unique to the hospital, such as the hospital's volume
 844-9   of Medicare and Medicaid patients.  These criteria shall not be
844-10   determinative factors, but shall be guidelines contributing to the
844-11   hospital's decision along with other factors which may be unique to
844-12   the hospital.  The formulas contained in Paragraphs (B), (C), (E),
844-13   and (F) of Subdivision (1) shall also not be considered
844-14   determinative of a reasonable amount of charity care and
844-15   government-sponsored indigent health care.]
844-16         [The requirements of this subsection shall not apply to the
844-17   extent a hospital or hospital system demonstrates that reductions
844-18   in the amount of community benefits, charity care, and
844-19   government-sponsored indigent health care are necessary to maintain
844-20   financial reserves at a level required by a bond covenant, are
844-21   necessary to prevent the hospital or hospital system from
844-22   endangering its ability to continue operations, or if the hospital
844-23   or hospital system, as a result of a natural or other disaster, is
844-24   required substantially to curtail its operations.]
844-25         [In any fiscal year that a hospital or hospital system,
844-26   through unintended miscalculation, fails to meet any of the
844-27   standards in Subdivision (1), the hospital or hospital system shall
 845-1   not lose its tax-exempt status without the opportunity to cure the
 845-2   miscalculation in the fiscal year following the fiscal year the
 845-3   failure is discovered by both meeting one of the standards and
 845-4   providing an additional amount of charity care and
 845-5   government-sponsored indigent health care that is equal to the
 845-6   shortfall from the previous fiscal year.  A hospital or hospital
 845-7   system may apply this provision only once every five years.]
 845-8         (e)  A charitable organization must be operated in a way that
 845-9   does not result in accrual of distributable profits, realization of
845-10   private gain resulting from payment of compensation in excess of a
845-11   reasonable allowance for salary or other compensation for services
845-12   rendered, or realization of any other form of private gain and, if
845-13   the organization performs one or more of the charitable functions
845-14   specified by Subsection (d) [of this section] other than a function
845-15   specified by [in] Subdivision (1), (2), (8), (9), (12), (16), or
845-16   (18), be organized as a nonprofit corporation as defined by the
845-17   Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
845-18   Vernon's Texas Civil Statutes).
845-19         (f)  A charitable organization must:
845-20               (1)  use its assets in performing the organization's
845-21   charitable functions or the charitable functions of another
845-22   charitable organization; and
845-23               (2)  by charter, bylaw, or other regulation adopted by
845-24   the organization to govern its affairs direct that on
845-25   discontinuance of the organization by dissolution or otherwise:
845-26                     (A)  the assets are to be transferred to this
845-27   state, the United States, or an educational, religious, charitable,
 846-1   or other similar organization that is qualified as a charitable
 846-2   organization under Section 501(c)(3), Internal Revenue Code of
 846-3   1986, as amended; or
 846-4                     (B)  if required for the organization to qualify
 846-5   as a tax-exempt organization under Section 501(c)(12), Internal
 846-6   Revenue Code of 1986, as amended, the assets are to be transferred
 846-7   directly to the organization's members, each of whom, by
 846-8   application for an acceptance of membership in the organization,
 846-9   has agreed to immediately transfer those assets to this state or to
846-10   an educational, religious, charitable, or other similar
846-11   organization that is qualified as a charitable organization under
846-12   Section 501(c)(3), Internal Revenue Code of 1986, as amended, as
846-13   designated in the bylaws, charter, or regulation adopted by the
846-14   organization.
846-15         (g)  A charitable organization that performs a charitable
846-16   function specified by Subsection (d)(15) [of this section] must:
846-17               (1)  be affiliated with a state or national
846-18   organization that authorizes, approves, or sanctions volunteer
846-19   charitable fundraising organizations;
846-20               (2)  qualify for exemption under Section 501(c)(3),
846-21   Internal Revenue Code of 1986, as amended;
846-22               (3)  be governed by a volunteer board of directors; and
846-23               (4)  distribute contributions to at least five other
846-24   associations to be used for general charitable purposes, with all
846-25   recipients meeting the following criteria:
846-26                     (A)  be governed by a volunteer board of
846-27   directors;
 847-1                     (B)  qualify for exemption under Section
 847-2   501(c)(3), Internal Revenue Code of 1986, as amended;
 847-3                     (C)  receive a majority of annual revenue from
 847-4   private or corporate charitable gifts and government agencies; and
 847-5                     (D)  provide services without regard to the
 847-6   ability of persons receiving the services to pay for the services.
 847-7         (h)  Performance of noncharitable functions by a charitable
 847-8   organization that owns or uses exempt property does not result in
 847-9   loss of an exemption authorized by this section if those other
847-10   functions are incidental to the organization's charitable
847-11   functions.  The division of responsibilities between an
847-12   organization that qualifies as a charitable organization under
847-13   Subsection (c) and another organization will not disqualify the
847-14   organizations or any property owned or used by either organization
847-15   from receiving an exemption under this section if the collaboration
847-16   furthers the provision of one or more of the charitable functions
847-17   described in Subsection (d) and if the other organization:
847-18               (1)  is exempt from federal income taxation under
847-19   Section 501(a), Internal Revenue Code of 1986, as an organization
847-20   described by Section 501(c)(3) of that code;
847-21               (2)  meets the criteria for a charitable organization
847-22   under Subsections (e) and (f); and
847-23               (3)  is under common control with the charitable
847-24   organization described in this subsection.
847-25         (i)  In this section, "building" includes the land that is
847-26   reasonably necessary for use of, access to, and ornamentation of
847-27   the building.
 848-1         (j)  The exemption of an organization preserving or
 848-2   conserving wildlife is limited to land and improvements and may not
 848-3   exceed 1,000 acres in any one county.
 848-4         (k)  In connection with a nursing home or retirement
 848-5   community, for purposes of Subsection (d):
 848-6               (1)  "Assisted living services" means responsible adult
 848-7   supervision of or assistance with routine living functions of an
 848-8   individual in instances where the individual's condition
 848-9   necessitates that supervision or assistance.
848-10               (2)  "Charity care," "government-sponsored indigent
848-11   health care," and "net resident revenue" are determined in the same
848-12   manner for a retirement community or nursing home as for a hospital
848-13   under Section 11.1801(a)(2) [Subsection (d)(1)(B)].
848-14               (3)  "Nursing care services" includes services provided
848-15   by nursing personnel, including patient observation, the promotion
848-16   and maintenance of health, prevention of illness or disability,
848-17   guidance and counseling to individuals and families, and referral
848-18   of patients to physicians, other health care providers, or
848-19   community resources if appropriate.
848-20               (4)  "Retirement community" means a collection of
848-21   various types of housing that are under common ownership and
848-22   designed for habitation by individuals over the age of 62.
848-23               (5)  "Single campus" means a facility designed to
848-24   provide multiple levels of retirement housing that is
848-25   geographically situated on a site at which all levels of housing
848-26   are contiguous to each other on a single property.
848-27         (l)  A charitable organization described by Subsection (d)(3)
 849-1   that provides support to elderly persons must engage primarily in
 849-2   performing charitable functions described by Subsection (d)(3), but
 849-3   may engage in other activities that support or are related to its
 849-4   charitable functions.
 849-5         (m) [(l)]  A property may not be exempted under Subsection
 849-6   (a)(2) for more than three years.
 849-7         (n) [(m)]  For purposes of Subsection (a)(2), an incomplete
 849-8   improvement is under physical preparation if the charitable
 849-9   organization has:
849-10               (1)  engaged in architectural or engineering work, soil
849-11   testing, land clearing activities, or site improvement work
849-12   necessary for the construction of the improvement; or
849-13               (2)  conducted an environmental or land use study
849-14   relating to the construction of the improvement.
849-15         Sec. 11.1801.  CHARITY CARE AND COMMUNITY BENEFITS
849-16   REQUIREMENTS FOR CHARITABLE HOSPITAL. (a)  To qualify as a
849-17   charitable organization under Section 11.18(d)(1), a nonprofit
849-18   hospital or hospital system must provide charity care and community
849-19   benefits as follows:
849-20               (1)  charity care and government-sponsored indigent
849-21   health care must be provided at a level that is reasonable in
849-22   relation to the community needs, as determined through the
849-23   community needs assessment, the available resources of the hospital
849-24   or hospital system, and the tax-exempt benefits received by the
849-25   hospital or hospital system;
849-26               (2)  charity care and government-sponsored indigent
849-27   health care must be provided in an amount equal to at least four
 850-1   percent of the hospital's or hospital system's net patient revenue;
 850-2               (3)  charity care and government-sponsored indigent
 850-3   health care must be provided in an amount equal to at least 100
 850-4   percent of the hospital's or hospital system's tax-exempt benefits,
 850-5   excluding federal income tax; or
 850-6               (4)  charity care and community benefits must be
 850-7   provided in a combined amount equal to at least five percent of the
 850-8   hospital's or hospital system's net patient revenue, provided that
 850-9   charity care and government-sponsored indigent health care are
850-10   provided in an amount equal to at least four percent of net patient
850-11   revenue.
850-12         (b)  A nonprofit hospital that has been designated as a
850-13   disproportionate share hospital under the state Medicaid program in
850-14   the current year or in either of the previous two fiscal years
850-15   shall be considered to have provided a reasonable amount of charity
850-16   care and government-sponsored indigent health care and is
850-17   considered to be in compliance with the standards in Subsection
850-18   (a).
850-19         (c)  A hospital operated on a nonprofit basis that is located
850-20   in a county with a population of less than 50,000 and in which the
850-21   entire county or the population of the entire county has been
850-22   designated as a health professionals shortage area is considered to
850-23   be in compliance with the standards in Subsection (a).
850-24         (d)  A hospital providing health care services to inpatients
850-25   or outpatients without receiving any payment for providing those
850-26   services from any source, including the patient or person legally
850-27   obligated to support the patient, third-party payors, Medicare,
 851-1   Medicaid, or any other state or local indigent care program but
 851-2   excluding charitable donations, legacies, bequests, or grants or
 851-3   payments for research, is considered to be in compliance with the
 851-4   standards in Subsection (a).
 851-5         (e)  For purposes of complying with Subsection (a)(4), a
 851-6   hospital or hospital system may not change its existing fiscal year
 851-7   unless the hospital or hospital system changes its ownership or
 851-8   corporate structure as a result of a sale or merger.
 851-9         (f)  For purposes of this section, a hospital that complies
851-10   with Subsection (a)(1) or that is considered to be in compliance
851-11   with the standards in Subsection (a) under Subsection (b), (c), or
851-12   (d) shall be excluded in determining a hospital system's compliance
851-13   with the standards in Subsection (a)(2), (3), or (4).
851-14         (g)  For purposes of this section, "charity care,"
851-15   "government-sponsored indigent health care," "health care
851-16   organization," "hospital system," "net patient revenue," "nonprofit
851-17   hospital," and "tax-exempt benefits" have the meanings assigned by
851-18   Sections 311.031 and 311.042, Health and Safety Code.  A
851-19   determination of the amount of community benefits and charity care
851-20   and government-sponsored indigent health care provided by a
851-21   hospital or hospital system and the hospital's or hospital system's
851-22   compliance with Section 311.045, Health and Safety Code, shall be
851-23   based on the most recently completed and audited prior fiscal year
851-24   of the hospital or hospital system.
851-25         (h)  The providing of charity care and government-sponsored
851-26   indigent health care in accordance with Subsection (a)(1) shall be
851-27   guided by the prudent business judgment of the hospital, which will
 852-1   ultimately determine the appropriate level of charity care and
 852-2   government-sponsored indigent health care based on the community
 852-3   needs, the available resources of the hospital, the tax-exempt
 852-4   benefits received by the hospital, and other factors that may be
 852-5   unique to the hospital, such as the hospital's volume of Medicare
 852-6   and Medicaid patients.  These criteria shall not be determinative
 852-7   factors, but shall be guidelines contributing to the hospital's
 852-8   decision along with other factors that may be unique to the
 852-9   hospital.  The formulas in Subsections (a)(2), (3), and (4) shall
852-10   also not be considered determinative of a reasonable amount of
852-11   charity care and government-sponsored indigent health care.
852-12         (i)  The requirements of this section shall not apply to the
852-13   extent a hospital or hospital system demonstrates that reductions
852-14   in the amount of community benefits, charity care, and
852-15   government-sponsored indigent health care are necessary to maintain
852-16   financial reserves at a level required by a bond covenant or are
852-17   necessary to prevent the hospital or hospital system from
852-18   endangering its ability to continue operations, or if the hospital
852-19   or hospital system, as a result of a natural or other disaster, is
852-20   required substantially to curtail its operations.
852-21         (j)  In any fiscal year that a hospital or hospital system,
852-22   through unintended miscalculation, fails to meet any of the
852-23   standards in Subsection (a) or fails to be considered to be in
852-24   compliance with the standards in Subsection (a) under Subsection
852-25   (b), (c), or (d), the hospital or hospital system shall not lose
852-26   its tax-exempt status without the opportunity to cure the
852-27   miscalculation in the fiscal year following the fiscal year the
 853-1   failure is discovered by both meeting one of the standards and
 853-2   providing an additional amount of charity care and
 853-3   government-sponsored indigent health care that is equal to the
 853-4   shortfall from the previous fiscal year.  A hospital or hospital
 853-5   system may apply this provision only once every five years.
 853-6         (b)  The following statutes are repealed:
 853-7               (1)  Section 1, Chapter 138, Acts of the 76th
 853-8   Legislature, Regular Session, 1999; and
 853-9               (2)  Chapters 266, 924, and 1443, Acts of the 76th
853-10   Legislature, Regular Session, 1999.
853-11         SECTION 18.002. Sections 11.22(a), (b), and (d), Tax Code,
853-12   are amended to conform to the amendment of Section 2, Article VIII,
853-13   Texas Constitution, by the constitutional amendment proposed by
853-14   H.J.R. No. 68, Acts of the 74th Legislature, Regular Session, 1995,
853-15   to read as follows:
853-16         (a)  A disabled veteran is entitled to an exemption from
853-17   taxation of a portion of the assessed value of a property the
853-18   veteran [he] owns and designates as provided by Subsection (f) of
853-19   this section in accordance with the following schedule:
853-20   an exemption of                   for a disability rating of
853-21   up to:                         at least:    but not greater than:
853-22   $5,000 [$1,500] of the              10%                 30%
853-23   assessed value
853-24   7,500 [2,000]                       31                  50
853-25   10,000 [2,500]                      51                  70
853-26   12,000 [3,000]                      71 and over
853-27         (b)  A disabled veteran is entitled to an exemption from
 854-1   taxation of $12,000 [$3,000] of the assessed value of a property
 854-2   the veteran [he] owns and designates as provided by Subsection (f)
 854-3   of this section if the veteran:
 854-4               (1)  is 65 years of age or older and has a disability
 854-5   rating of at least 10 percent;
 854-6               (2)  is totally blind in one or both eyes; or
 854-7               (3)  has lost the use of one or more limbs.
 854-8         (d)  If an individual dies while on active duty as a member
 854-9   of the armed services of the United States:
854-10               (1)  the individual's surviving spouse is entitled to
854-11   an exemption from taxation of $5,000 [$2,500] of the assessed value
854-12   of the property the spouse owns and designates as provided by
854-13   Subsection (f) of this section; and
854-14               (2)  each of the individual's surviving children who is
854-15   younger than 18 years of age and unmarried is entitled to an
854-16   exemption from taxation of a portion of the assessed value of a
854-17   property the child owns and designates as provided by Subsection
854-18   (f) of this section, the amount of exemption for each eligible
854-19   child to be computed by dividing $5,000 [$2,500] by the number of
854-20   eligible children.
854-21         SECTION 18.003. Section 11.26(l), Tax Code, is amended to
854-22   omit an unnecessary reference to read as follows:
854-23         (l)  For purposes of the limitation on tax increases provided
854-24   by Subsection (g) [as added by this Act or by H.B. No. 4, Acts of
854-25   the 75th Legislature, Regular Session, 1997, as applicable], the
854-26   governing body of a school district in a county with a population
854-27   of fewer than 75,000 in a manner provided by law for official
 855-1   action by the governing body may elect to apply the limitation
 855-2   provided by Subsection (g) to the residence homestead of an
 855-3   individual as if that subsection were in effect on January 1, 1993.
 855-4   The governing body must make the election before January 1, 1999.
 855-5   The election applies only to taxes imposed in a tax year that
 855-6   begins after the tax year in which the election is made.
 855-7         SECTION 18.004. Section 11.43(j), Tax Code, as added by
 855-8   Chapter 194, Acts of the 75th Legislature, Regular Session, 1997,
 855-9   is repealed because it is substantively duplicative of Section
855-10   11.43(j), Tax Code, as added by Chapter 1039, Acts of the 75th
855-11   Legislature, Regular Session, 1997.
855-12         SECTION 18.005. Section 34.015, Tax Code, as amended by
855-13   Chapters 181 and 817, Acts of the 76th Legislature, Regular
855-14   Session, 1999, is redesignated as Section 253.010, Local Government
855-15   Code, and is amended to conform to the changes made by those
855-16   chapters to read as follows:
855-17         Sec. 253.010.  SALE OF REAL PROPERTY TO CERTAIN NONPROFIT OR
855-18   RELIGIOUS ORGANIZATIONS. (a)  Notwithstanding any other provision
855-19   of law, the governing body of a municipality may provide for the
855-20   manner in which any land acquired by the municipality may be sold
855-21   if the land is sold to:
855-22               (1)  a nonprofit organization that develops housing for
855-23   low-income individuals and families as a primary activity to
855-24   promote community-based revitalization of the municipality;
855-25               (2)  a nonprofit corporation described by 26 U.S.C.
855-26   Section 501(c)(3) that:
855-27                     (A)  has been incorporated in this state for at
 856-1   least one year;
 856-2                     (B)  has a corporate purpose to develop
 856-3   affordable housing that is stated in its articles of incorporation,
 856-4   bylaws, or charter;
 856-5                     (C)  has at least one-fourth of its board of
 856-6   directors residing in the municipality; and
 856-7                     (D)  engages primarily in the building, repair,
 856-8   rental, or sale of housing for low-income individuals and families;
 856-9   or
856-10               (3)  a religious organization that:
856-11                     (A)  owns other property located in the
856-12   municipality that is exempt from taxation under Section 11.20, Tax
856-13   Code; and
856-14                     (B)  has entered into a written agreement with
856-15   the municipality regarding the revitalization of the land.
856-16         (b)  A municipality operating under this section may by
856-17   ordinance determine the individuals and families who qualify as
856-18   low-income individuals and families under Subsection (a)(1) or (2).
856-19   In adopting an ordinance under this subsection, the municipality
856-20   shall consider median income of individuals and median family
856-21   income in the area.
856-22         SECTION 18.006. Section 33.43(a), Tax Code, is amended to
856-23   correct a reference to read as follows:
856-24         (a)  A petition initiating a suit to collect a delinquent
856-25   property tax is sufficient if it alleges that:
856-26               (1)  the taxing unit is legally constituted and
856-27   authorized to impose and collect ad valorem taxes on property;
 857-1               (2)  tax in a stated amount was legally imposed on each
 857-2   separately described property for each year specified and on each
 857-3   person named if known who owned the property on January 1 of the
 857-4   year for which the tax was imposed;
 857-5               (3)  the tax was imposed in the county in which the
 857-6   suit is filed;
 857-7               (4)  the tax is delinquent;
 857-8               (5)  penalties, interest, and costs authorized by law
 857-9   in a stated amount for each separately assessed property are due;
857-10               (6)  the taxing unit is entitled to recover each
857-11   penalty that is incurred and all interest that accrues on
857-12   delinquent taxes imposed on the property from the date of the
857-13   judgment to the date of the sale under Section 34.01 or under
857-14   Section 253.010, Local Government Code [34.015], as applicable, if
857-15   the suit seeks to foreclose a tax lien;
857-16               (7)  the person sued owned the property on January 1 of
857-17   the year for which the tax was imposed if the suit seeks to enforce
857-18   personal liability;
857-19               (8)  the person sued owns the property when the suit is
857-20   filed if the suit seeks to foreclose a tax lien;
857-21               (9)  the taxing unit asserts a lien on each separately
857-22   described property to secure the payment of all taxes, penalties,
857-23   interest, and costs due if the suit seeks to foreclose a tax lien;
857-24               (10)  all things required by law to be done have been
857-25   done properly by the appropriate officials; and
857-26               (11)  the attorney signing the petition is legally
857-27   authorized to prosecute the suit on behalf of the taxing unit.
 858-1         SECTION 18.007. Sections 34.04(a) and (d), Tax Code, as
 858-2   amended by Chapters 1185 and 1481, Acts of the 76th Legislature,
 858-3   Regular Session, 1999, are reenacted to read as follows:
 858-4         (a)  A person, including a taxing unit, may file a petition
 858-5   in the court that ordered the seizure or sale setting forth a claim
 858-6   to the excess proceeds.  The petition must be filed before the
 858-7   second anniversary of the date of the sale of the property.  The
 858-8   petition is not required to be filed as an original suit separate
 858-9   from the underlying suit for seizure of the property or foreclosure
858-10   of a tax lien on the property but may be filed under the cause
858-11   number of the underlying suit.
858-12         (d)  Interest or costs may not be allowed under this section.
858-13         SECTION 18.008. Section 151.0101(a), Tax Code, as amended by
858-14   Chapters 394 and 405, Acts of the 76th Legislature, Regular
858-15   Session, 1999, is amended to properly number subdivisions to read
858-16   as follows:
858-17         (a)  "Taxable services" means:
858-18               (1)  amusement services;
858-19               (2)  cable television services;
858-20               (3)  personal services;
858-21               (4)  motor vehicle parking and storage services;
858-22               (5)  the repair, remodeling, maintenance, and
858-23   restoration of tangible personal property, except:
858-24                     (A)  aircraft;
858-25                     (B)  a ship, boat, or other vessel, other than:
858-26                           (i)  a taxable boat or motor as defined by
858-27   Section 160.001;
 859-1                           (ii)  a sports fishing boat; or
 859-2                           (iii)  any other vessel used for pleasure;
 859-3                     (C)  the repair, maintenance, and restoration of
 859-4   a motor vehicle; and
 859-5                     (D)  the repair, maintenance, creation, and
 859-6   restoration of a computer program, including its development and
 859-7   modification, not sold by the person performing the repair,
 859-8   maintenance, creation, or restoration service;
 859-9               (6)  telecommunications services;
859-10               (7)  credit reporting services;
859-11               (8)  debt collection services;
859-12               (9)  insurance services;
859-13               (10)  information services;
859-14               (11)  real property services;
859-15               (12)  data processing services;
859-16               (13)  real property repair and remodeling;
859-17               (14)  security services;      
859-18               (15)  telephone answering services; [and]
859-19               (16)  Internet access service; and [.]
859-20               (17) [(16)]  a sale by a transmission and distribution
859-21   utility, as defined in Section 31.002, Utilities Code, of
859-22   transmission or delivery of service directly to an electricity
859-23   end-use customer whose consumption of electricity is subject to
859-24   taxation under this chapter.
859-25         SECTION 18.009. Section 151.313(a), Tax Code, as amended by
859-26   Chapters 394 and 683, Acts of the 76th Legislature, Regular
859-27   Session, 1999, is reenacted to read as follows:
 860-1         (a)  The following items are exempted from the taxes imposed
 860-2   by this chapter:
 860-3               (1)  a drug or medicine, other than insulin, if
 860-4   prescribed or dispensed for a human or animal by a licensed
 860-5   practitioner of the healing arts;
 860-6               (2)  insulin;
 860-7               (3)  a drug or medicine, without regard to whether it
 860-8   is prescribed or dispensed by a licensed practitioner of the
 860-9   healing arts, that is labeled with a national drug code issued by
860-10   the federal Food and Drug Administration;
860-11               (4)  a hypodermic syringe or needle;
860-12               (5)  a brace; hearing aid or audio loop; orthopedic,
860-13   dental, or prosthetic device; ileostomy, colostomy, or ileal
860-14   bladder appliance; or supplies or replacement parts for the listed
860-15   items;
860-16               (6)  a therapeutic appliance, device, and any related
860-17   supplies specifically designed for those products, if dispensed or
860-18   prescribed by a licensed practitioner of the healing arts, when
860-19   those items are purchased and used by an individual for whom the
860-20   items listed in this subdivision were dispensed or prescribed;
860-21               (7)  corrective lens and necessary and related
860-22   supplies, if dispensed or prescribed by an ophthalmologist or
860-23   optometrist;
860-24               (8)  specialized printing or signalling equipment used
860-25   by the deaf for the purpose of enabling the deaf to communicate
860-26   through the use of an ordinary telephone and all materials, paper,
860-27   and printing ribbons used in that equipment;
 861-1               (9)  a braille wristwatch, braille writer, braille
 861-2   paper and braille electronic equipment that connects to computer
 861-3   equipment, and the necessary adaptive devices and adaptive computer
 861-4   software;
 861-5               (10)  each of the following items if purchased for use
 861-6   by the blind to enable them to function more independently:  a
 861-7   slate and stylus, print enlarger, light probe, magnifier, white
 861-8   cane, talking clock, large print terminal, talking terminal, or
 861-9   harness for guide dog;
861-10               (11)  hospital beds;
861-11               (12)  blood glucose monitoring test strips; and
861-12               (13)  an adjustable eating utensil used to facilitate
861-13   independent eating if purchased for use by a person, including a
861-14   person who is elderly or physically disabled, has had a stroke, or
861-15   is a burn victim, who does not have full use or control of the
861-16   person's hands or arms.
861-17         SECTION 18.010. Section 151.429(g), Tax Code, as amended by
861-18   Chapters 1121 and 1467, Acts of the 76th Legislature, Regular
861-19   Session, 1999, is reenacted to read as follows:
861-20         (g)  The refund provided by this section is conditioned on
861-21   the enterprise project maintaining at least the same level of
861-22   employment of qualified employees as existed at the time it
861-23   qualified for a refund for a period of three years from that date.
861-24   The Texas Department of Economic Development shall annually certify
861-25   to the comptroller whether that level of employment of qualified
861-26   employees has been maintained.  On the Texas Department of Economic
861-27   Development certifying that such a level has not been maintained,
 862-1   the comptroller shall assess that portion of the refund
 862-2   attributable to any such decrease in employment, including penalty
 862-3   and interest from the date of the refund.
 862-4         SECTION 18.011. Section 156.102(b), Tax Code, as amended by
 862-5   Chapters 1359 and 1467, Acts of the 76th Legislature, Regular
 862-6   Session, 1999, is reenacted to read as follows:
 862-7         (b)  For purposes of this section:
 862-8               (1)  a corporation or association that is organized and
 862-9   operated exclusively for the cleaning of beaches and that has no
862-10   part of its net earnings inure to the benefit of a private
862-11   shareholder or individual is organized and operated exclusively for
862-12   a charitable purpose; and
862-13               (2)  a public or private institution of higher
862-14   education is organized and operated exclusively for an educational
862-15   purpose only if the institution is defined as an institution of
862-16   higher education or as a Texas private or independent institution
862-17   of higher education under any subdivision of Section 61.003,
862-18   Education Code.
862-19          ARTICLE 19.  CHANGES RELATING TO TRANSPORTATION CODE
862-20         SECTION 19.001. (a)  Subtitle A, Title 4, Transportation
862-21   Code, is amended to codify Article 9006, Revised Statutes, by
862-22   adding Chapter 60 to read as follows:
862-23                  CHAPTER 60.  MISCELLANEOUS PROVISIONS
862-24         Sec. 60.001.  THROWING BALLAST. (a)  A master or officer in
862-25   charge of a vessel commits an offense if any part of the ballast of
862-26   the vessel is thrown from the vessel into the sea within six miles
862-27   of a bar or harbor in this state.
 863-1         (b)  An offense under this section is a misdemeanor
 863-2   punishable by a fine of not less than $100 or more than $200.
 863-3         (b)  Article 9006, Revised Statutes, is repealed.
 863-4         SECTION 19.002. (a)  Subchapter B, Chapter 225,
 863-5   Transportation Code, is amended to codify Chapter 812, Acts of the
 863-6   75th Legislature, Regular Session, 1997, by adding Section 225.044
 863-7   to read as follows:
 863-8         Sec. 225.044.  SERGIO GONZALEZ, JR., AND ALFREDO GUTIERREZ,
 863-9   JR., M.D., LOOP. (a)  Spur 239 in Val Verde County is designated as
863-10   the Sergio Gonzalez, Jr., and Alfredo Gutierrez, Jr., M.D., Loop.
863-11         (b)  The department shall design and construct markers to be
863-12   placed along Loop 239 in Val Verde County indicating the highway
863-13   number, the designation as the Sergio Gonzalez, Jr., and Alfredo
863-14   Gutierrez, Jr., M.D., Loop, and any other appropriate information. 
863-15         (c)  The department shall erect a marker at each end of the
863-16   loop and at intermediate sites along the loop that the department
863-17   determines are appropriate.
863-18         (b)  Chapter 812, Acts of the 75th Legislature, Regular
863-19   Session, 1997, is repealed.
863-20         SECTION 19.003. (a)  Chapter 257, Transportation Code, is
863-21   amended to codify Article 726a, Revised Statutes, by adding
863-22   Subchapter Z to read as follows:
863-23                 SUBCHAPTER Z.  MISCELLANEOUS PROVISIONS
863-24         Sec. 257.901.  LAND DEVELOPMENT IN ROAD DISTRICT WITH
863-25   OUTSTANDING INDEBTEDNESS. (a)  In this section:
863-26               (1)  "Affected area" means the area:
863-27                     (A)  of an assessment road district; and
 864-1                     (B)  within 1,500 feet of the boundary of an
 864-2   assessment road district.
 864-3               (2)  "Assessment road district" means a road district
 864-4   that has refinanced outstanding bonded indebtedness under
 864-5   Subchapter C, Chapter 1471, Government Code.
 864-6               (3)  "Land development" means any action necessary or
 864-7   customary in connection with the construction of improvements on
 864-8   real property.
 864-9               (4)  "Regulation" means any ordinance, rule,
864-10   regulation, or application or interpretation of an ordinance, rule,
864-11   regulation, or application.
864-12         (b)  After March 9, 1999, a political subdivision shall pay
864-13   the outstanding bonded indebtedness of an assessment road district
864-14   if the political subdivision changes regulations regarding land
864-15   development that apply to more than 20 percent of the land in the
864-16   assessment road district in a manner that reduces:
864-17               (1)  the amount of impervious cover, as defined in the
864-18   regulations; or
864-19               (2)  the total allowable floor area of a building on
864-20   developed land.
864-21         (c)  Subsection (b) does not apply to an affected land owner
864-22   who agrees in writing to the regulation.
864-23         (d)  On request of a person who owns land in an affected
864-24   area, the governing body of an assessment road district by
864-25   resolution may annex any part of the person's land that is within
864-26   two miles of the district's boundaries.
864-27         (e)  After annexation of the land under this section, the
 865-1   governing body of the district shall reapportion the remaining
 865-2   assessment on the owner's land on a per acre basis for all of the
 865-3   owner's land in the district.
 865-4         (f)  Chapter 245, Local Government Code, controls to the
 865-5   extent of any conflict with this section.
 865-6         (g)  This section expires March 10, 2019.
 865-7         (b)  Article 726a, Revised Statutes, is repealed.
 865-8         SECTION 19.004. Section 201.605, Transportation Code, is
 865-9   repealed to conform with the repeal of the law from which it was
865-10   derived by Chapter 876, Acts of the 74th Legislature, Regular
865-11   Session, 1995.
865-12         SECTION 19.005. Section 472.022(e)(2), Transportation Code,
865-13   as amended by Chapters 789 and 965, Acts of the 76th Legislature,
865-14   Regular Session, 1999, is reenacted and amended to read as follows:
865-15               (2)  "Construction or maintenance work zone" means a
865-16   portion of a highway or street:
865-17                     (A)  where highway construction or maintenance is
865-18   being undertaken, other than mobile operations as defined by the
865-19   Texas Manual on Uniform Traffic Control Devices; and
865-20                     (B)  that is marked by signs:
865-21                           (i)  indicating that it is a construction
865-22   or maintenance work zone;
865-23                           (ii)  indicating where the zone begins and
865-24   ends; and
865-25                           (iii)  stating:  "Fines double when workers
865-26   present."
865-27         SECTION 19.006. Section 548.052, Transportation Code, as
 866-1   amended by Chapters 963 and 1423, Acts of the 76th Legislature,
 866-2   Regular Session, 1999, is amended to properly number subdivisions
 866-3   to read as follows:
 866-4         Sec. 548.052.  VEHICLES NOT SUBJECT TO INSPECTION. This
 866-5   chapter does not apply to:
 866-6               (1)  a trailer, semitrailer, pole trailer, or mobile
 866-7   home moving under or bearing a current factory-delivery license
 866-8   plate or current in-transit license plate;
 866-9               (2)  a vehicle moving under or bearing a paper dealer
866-10   in-transit tag, machinery license, disaster license, parade
866-11   license, prorate tab, one-trip permit, antique license, temporary
866-12   24-hour permit, or permit license;
866-13               (3)  a trailer, semitrailer, pole trailer, or mobile
866-14   home having an actual gross weight or registered gross weight of
866-15   4,500 pounds or less;
866-16               (4)  farm machinery, road-building equipment, a farm
866-17   trailer, or a vehicle required to display a slow-moving-vehicle
866-18   emblem under Section 547.703;
866-19               (5)  a former military vehicle, as defined by Section
866-20   502.275; [or]
866-21               (6)  a vehicle qualified for a tax exemption under
866-22   Section 152.092, Tax Code; or [.]
866-23               (7) [(6)]  a vehicle for which a certificate of title
866-24   has been issued but that is not required to be registered.
866-25         SECTION 19.0065.  Section 621.206, Transportation Code, is
866-26   amended to correctly letter subsections to read as follows:
866-27         Sec. 621.206.  MAXIMUM EXTENDED LENGTH OF LOAD. (a)  A
 867-1   vehicle or combination of vehicles may not carry a load that
 867-2   extends more than three feet beyond its front or, except as
 867-3   permitted by other law, more than four feet beyond its rear.
 867-4         (b) [(c)]  Subsection (a) does not apply to vehicles
 867-5   collecting garbage, rubbish, refuse, or recyclable materials which
 867-6   are equipped with front-end loading attachments and containers
 867-7   provided that the vehicle is actively engaged in the collection of
 867-8   garbage, rubbish, refuse, or recyclable materials.
 867-9         SECTION 19.007. Section 681.008, Transportation Code, as
867-10   amended by Chapters 738, 1195, and 1362, Acts of the 76th
867-11   Legislature, Regular Session, 1999, is reenacted and amended to
867-12   read as follows:
867-13         Sec. 681.008.  PARKING PRIVILEGES: CERTAIN VETERANS. (a)  A
867-14   vehicle may be parked for an unlimited period in a parking space or
867-15   area that is designated specifically for persons with physical
867-16   disabilities if:
867-17               (1)  the vehicle is being operated by or for the
867-18   transportation of:
867-19                     (A)  the person who registered the vehicle under
867-20   Section 502.254(a); or
867-21                     (B)  a person described by Section 502.254(b) if
867-22   the vehicle is registered under that subsection; and
867-23               (2)  there are displayed on the vehicle special license
867-24   plates issued under Section 502.254.
867-25         (b)  A vehicle on which license plates issued under Section
867-26   502.254, 502.255, 502.257, 502.259, or 502.260 are displayed is
867-27   exempt from the payment of a parking fee collected through a
 868-1   parking meter charged by a governmental authority other than a
 868-2   branch of the federal government, when being operated by or for the
 868-3   transportation of:
 868-4               (1)  the person who registered the vehicle under
 868-5   Section 502.254(a), 502.255, 502.257, 502.259, or 502.260; or
 868-6               (2)  a person described in Section 502.254(b) if the
 868-7   vehicle is registered under that subsection.
 868-8         (c)  This section does not permit a vehicle to be parked at a
 868-9   time when or a place where parking is prohibited.
868-10         (d) [(b)]  A governmental unit may provide by ordinance or
868-11   order that the exemption provided by Subsection (b) [(a)] also
868-12   applies to payment of a fee or penalty imposed by the governmental
868-13   unit for parking in a parking garage or lot or in a space with a
868-14   limitation on the length of time for parking.
868-15         SECTION 19.008. Section 684.001(5), Transportation Code, is
868-16   amended to correct a reference to read as follows:
868-17               (5)  "Towing company" means a person operating a tow
868-18   truck registered under Chapter 643 [1135, Acts of the 70th
868-19   Legislature, Regular Session, 1987 (Article 6687-9b, Vernon's Texas
868-20   Civil Statutes)].  The term includes the owner, operator, employee,
868-21   or agent of a towing company, but does not include a political
868-22   subdivision of the state.
868-23             ARTICLE 20.  CHANGES RELATING TO UTILITIES CODE
868-24         SECTION 20.001. Section 39.901(e), Utilities Code, is amended
868-25   to correct a reference to read as follows:
868-26         (e)  Not later than May 1 of each year, the commission shall
868-27   transfer from the system benefit fund to the foundation school fund
 869-1   the amounts determined by the Texas Education Agency under
 869-2   Subsections (b) and (c). If in any year the system benefit fund is
 869-3   insufficient to make the transfer designated by the Texas Education
 869-4   Agency, the shortfall shall be included in the projected revenue
 869-5   requirement for the system benefit fund the next time the
 869-6   commission sets the fee under Section 39.903, and the shortfall
 869-7   amount shall be transfered to the Foundation School Program the
 869-8   following year.  Amounts transferred from the system benefit fund
 869-9   under this section may be appropriated only for the support of the
869-10   Foundation School Program and are available, in addition to any
869-11   amounts allocated by the General Appropriations Act, to finance
869-12   actions under Section 41.002(b) or 42.2521 [42.252(e)], Education
869-13   Code.
869-14         SECTION 20.002. Section 55.203(f), Utilities Code, is amended
869-15   to correct a reference to read as follows:
869-16         (f)  The General Services Commission shall cooperate with the
869-17   commission and with publishers to ensure that the subject matter
869-18   listing of programs and telephone numbers in the telephone
869-19   directories are consistent with the categorization developed by the
869-20   Records Management Interagency Coordinating Council under Section
869-21   441.203(j) [441.053], Government Code.
869-22                        ARTICLE 21.  RENUMBERING
869-23         SECTION 21.001. The following provisions of enacted codes are
869-24   renumbered or relettered and appropriate cross-references are
869-25   changed to eliminate duplicate citations or to relocate misplaced
869-26   provisions:
869-27               (1)  Chapter 46, Agriculture Code, as added by Chapter
 870-1   975, Acts of the 76th Legislature, Regular Session, 1999, is
 870-2   renumbered as Chapter 48, Agriculture Code, and Sections 46.001,
 870-3   46.002, 46.003, 46.004, and 46.005, Agriculture Code, as added by
 870-4   that Act, are renumbered as Sections 48.001, 48.002, 48.003,
 870-5   48.004, and 48.005, Agriculture Code, respectively.
 870-6               (2)  Chapter 46, Agriculture Code, as added by Chapter
 870-7   1459, Acts of the 76th Legislature, Regular Session, 1999, is
 870-8   renumbered as Chapter 49, Agriculture Code, and Sections 46.001,
 870-9   46.002, 46.003, 46.004, 46.005, and 46.006, Agriculture Code, as
870-10   added by that Act, are renumbered as Sections 49.001, 49.002,
870-11   49.003, 49.004, 49.005, and 49.006, Agriculture Code, respectively.
870-12               (3)  Chapter 46, Agriculture Code, as added by Chapter
870-13   1074, Acts of the 76th Legislature, Regular Session, 1999, is
870-14   renumbered as Chapter 50, Agriculture Code, and Sections 46.001,
870-15   46.002, 46.003, and 46.004, Agriculture Code, as added by that Act,
870-16   are renumbered as Sections 50.001, 50.002, 50.003, and 50.004,
870-17   Agriculture Code, respectively.
870-18               (4)  Section 11.72, Alcoholic Beverage Code, as added
870-19   by Chapter 577, Acts of the 76th Legislature, Regular Session,
870-20   1999, is renumbered as Section 11.73, Alcoholic Beverage Code.
870-21               (5)  Section 61.86, Alcoholic Beverage Code, as added
870-22   by Chapter 577, Acts of the 76th Legislature, Regular Session,
870-23   1999, is renumbered as Section 61.87, Alcoholic Beverage Code.
870-24               (6)  Subsection (e), Section 154.073, Civil Practice
870-25   and Remedies Code, as added by Chapter 1150, Acts of the 76th
870-26   Legislature, Regular Session, 1999, is relettered as Subsection
870-27   (f), Section 154.073, Civil Practice and Remedies Code.
 871-1               (7)  Subsection (d), Article 2.122, Code of Criminal
 871-2   Procedure, as added by Chapter 197, Acts of the 76th Legislature,
 871-3   Regular Session, 1999, is relettered as Subsection (e), Article
 871-4   2.122, Code of Criminal Procedure.
 871-5               (8)  Subsection (h), Article 26.13, Code of Criminal
 871-6   Procedure, as added by Chapter 425, Acts of the 76th Legislature,
 871-7   Regular Session, 1999, is relettered as Subsection (i), Article
 871-8   26.13, Code of Criminal Procedure.
 871-9               (9)  Article 42.015, Code of Criminal Procedure, as
871-10   added by Chapter 417, Acts of the 76th Legislature, Regular
871-11   Session, 1999, is renumbered as Article 42.012, Code of Criminal
871-12   Procedure.
871-13               (10)  Subsection (e), Section 5, Article 42.12, Code of
871-14   Criminal Procedure, as added by Chapter 580, Acts of the 76th
871-15   Legislature, Regular Session, 1999, is relettered as Subsection
871-16   (f), Section 5, Article 42.12, Code of Criminal Procedure.
871-17               (11)  Subsection (g), Section 11, Article 42.12, Code
871-18   of Criminal Procedure, as added by Chapter 27, Acts of the 76th
871-19   Legislature, Regular Session, 1999, is relettered as Subsection
871-20   (h), Section 11, Article 42.12, Code of Criminal Procedure.
871-21               (12)  Subsection (f), Article 45.012, Code of Criminal
871-22   Procedure, as added by Chapter 701, Acts of the 76th Legislature,
871-23   Regular Session, 1999, is relettered as Subsection (h), Article
871-24   45.012, Code of Criminal Procedure.
871-25               (13)  Article 46.04, Code of Criminal Procedure, as
871-26   added by Chapter 654, Acts of the 76th Legislature, Regular
871-27   Session, 1999, is renumbered as Article 46.05, Code of Criminal
 872-1   Procedure.
 872-2               (14)  Article 61.07, Code of Criminal Procedure, as
 872-3   added by Chapter 492, Acts of the 76th Legislature, Regular
 872-4   Session, 1999, is renumbered as Article 61.10, Code of Criminal
 872-5   Procedure.
 872-6               (15)  Article 61.08, Code of Criminal Procedure, as
 872-7   added by Chapter 491, Acts of the 76th Legislature, Regular
 872-8   Session, 1999, is renumbered as Article 61.11, Code of Criminal
 872-9   Procedure.
872-10               (16)  Subchapter K, Chapter 21, Education Code, as
872-11   added by Chapter 1590, Acts of the 76th Legislature, Regular
872-12   Session, 1999, is relettered as Subchapter L, Chapter 21, Education
872-13   Code, and Sections 21.501, 21.502, and 21.503, Education Code, as
872-14   added by that Act, are renumbered as Sections 21.551, 21.552, and
872-15   21.553, Education Code, respectively.
872-16               (17)  Section 29.155, Education Code, as added by
872-17   Chapter 402, Acts of the 76th Legislature, Regular Session, 1999,
872-18   is renumbered as Section 29.157, Education Code.
872-19               (18)  Section 51.946, Education Code, as added by
872-20   Chapter 307, Acts of the 76th Legislature, Regular Session, 1999,
872-21   is renumbered as Section 51.947, Education Code.
872-22               (19)  Section 51.946, Education Code, as added by
872-23   Chapter 533, Acts of the 76th Legislature, Regular Session, 1999,
872-24   is renumbered as Section 51.948, Education Code.
872-25               (20)  Section 54.010, Education Code, as added by
872-26   Chapter 1558, Acts of the 76th Legislature, Regular Session, 1999,
872-27   is renumbered as Section 54.011, Education Code.
 873-1               (21)  Section 61.086, Education Code, as added by
 873-2   Chapter 1010, Acts of the 76th Legislature, Regular Session, 1999,
 873-3   is renumbered as Section 61.087, Education Code.
 873-4               (22)  Subchapter T, Chapter 61, Education Code, as
 873-5   added by Chapter 833, Acts of the 76th Legislature, Regular
 873-6   Session, 1999, is relettered as Subchapter U, Chapter 61, Education
 873-7   Code.
 873-8               (23)  Subchapter T, Chapter 61, Education Code, as
 873-9   added by Chapter 1480, Acts of the 76th Legislature, Regular
873-10   Session, 1999, is relettered as Subchapter V, Chapter 61, Education
873-11   Code.
873-12               (24)  Subchapter T, Chapter 61, Education Code, as
873-13   added by Chapter 1243, Acts of the 76th Legislature, Regular
873-14   Session, 1999, is relettered as Subchapter W, Chapter 61, Education
873-15   Code, and Sections 61.851, 61.852, 61.853, 61.854, 61.855, 61.856,
873-16   61.857, 61.858, 61.859, 61.860, 61.861, 61.862, and 61.863,
873-17   Education Code, as added by that Act, are renumbered as Sections
873-18   61.921, 61.922, 61.923, 61.924, 61.925, 61.926, 61.927, 61.928,
873-19   61.929, 61.930, 61.931, 61.932, and 61.933, Education Code,
873-20   respectively.
873-21               (25)  Section 87.207, Education Code, as added by
873-22   Chapter 1305, Acts of the 76th Legislature, Regular Session, 1999,
873-23   is renumbered as Section 87.208, Education Code.
873-24               (26)  Section 130.010, Education Code, as added by
873-25   Chapter 1549, Acts of the 76th Legislature, Regular Session, 1999,
873-26   is renumbered as Section 130.0101, Education Code.
873-27               (27)  Chapter 151, Education Code, as added by Chapter
 874-1   1311, Acts of the 76th Legislature, Regular Session, 1999, is
 874-2   renumbered as Chapter 152, Education Code, and Sections 151.001,
 874-3   151.002, 151.003, 151.004, 151.005, and 151.006, Education Code, as
 874-4   added by that Act, are renumbered as Sections 152.001, 152.002,
 874-5   152.003, 152.004, 152.005, and 152.006, Education Code,
 874-6   respectively.
 874-7               (28)  Chapter 151, Education Code, as added by Chapter
 874-8   1381, Acts of the 76th Legislature, Regular Session, 1999, is
 874-9   renumbered as Chapter 153, Education Code, and Sections 151.001,
874-10   151.002, 151.003, 151.004, 151.005, 151.006, 151.007, and 151.008,
874-11   Education Code, as added by that Act, are renumbered as Sections
874-12   153.001, 153.002, 153.003, 153.004, 153.005, 153.006, 153.007, and
874-13   153.008, Education Code, respectively.
874-14               (29)  Subsection (d), Section 51.095, Family Code, as
874-15   added by Chapter 1477, Acts of the 76th Legislature, Regular
874-16   Session, 1999, is relettered as Subsection (e), Section 51.095,
874-17   Family Code.
874-18               (30)  Subsection (p), Section 54.01, Family Code, as
874-19   added by Chapter 1477, Acts of the 76th Legislature, Regular
874-20   Session, 1999, is relettered as Subsection (q), Section 54.01,
874-21   Family Code.
874-22               (31)  Section 201.1065, Family Code, as added by
874-23   Chapter 556, Acts of the 76th Legislature, Regular Session, 1999,
874-24   is renumbered as Section 201.1066, Family Code.
874-25               (32)  Section 231.011, Family Code, as added by Chapter
874-26   228, Acts of the 76th Legislature, Regular Session, 1999, is
874-27   renumbered as Section 231.015, Family Code.
 875-1               (33)  Section 234.006, Family Code, as added by Chapter
 875-2   1072, Acts of the 76th Legislature, Regular Session, 1999, is
 875-3   renumbered as Section 234.010, Family Code.
 875-4               (34)  Section 234.007, Family Code, as added by Chapter
 875-5   1072, Acts of the 76th Legislature, Regular Session, 1999, is
 875-6   renumbered as Section 234.011, Family Code.
 875-7               (35)  Section 301.033, Government Code, as added by
 875-8   Chapter 377, Acts of the 76th Legislature, Regular Session, 1999,
 875-9   is renumbered as Section 301.034, Government Code.
875-10               (36)  Subchapter C, Chapter 401, Government Code, as
875-11   added by Chapter 952, Acts of the 73rd Legislature, Regular
875-12   Session, 1993, is relettered as Subchapter F, Chapter 401,
875-13   Government Code, and Sections 401.031 and 401.032, Government Code,
875-14   as added by that Act, and 401.033, Government Code, as added by
875-15   Chapter 520, Acts of the 76th Legislature, Regular Session, 1999,
875-16   are renumbered as Sections 401.101, 401.102, and 401.103,
875-17   Government Code, respectively.
875-18               (37)  Subsection (h), Section 403.055, Government Code,
875-19   as added by Chapter 583, Acts of the 76th Legislature, Regular
875-20   Session, 1999, is relettered as Subsection (l), Section 403.055,
875-21   Government Code.
875-22               (38)  Subchapter N, Chapter 403, Government Code, as
875-23   added by Chapter 1485, Acts of the 76th Legislature, Regular
875-24   Session, 1999, is relettered as Subchapter O, Chapter 403,
875-25   Government Code.
875-26               (39)  Section 411.0098, Government Code, as added by
875-27   Chapter 150, Acts of the 76th Legislature, Regular Session, 1999,
 876-1   is renumbered as Section 411.0091, Government Code.
 876-2               (40)  Subsection (b), Section 411.088, Government Code,
 876-3   as added by Chapter 1024, Acts of the 76th Legislature, Regular
 876-4   Session, 1999, is relettered as Subsection (c), Section 411.088,
 876-5   Government Code.
 876-6               (41)  Section 443.015, Government Code, as added by
 876-7   Chapter 1141, Acts of the 75th Legislature, Regular Session, 1997,
 876-8   is renumbered as Section 443.0152, Government Code.
 876-9               (42)  Section 493.023, Government Code, as added by
876-10   Chapter 399, Acts of the 76th Legislature, Regular Session, 1999,
876-11   is renumbered as Section 493.024, Government Code.          
876-12               (43)  Section 493.023, Government Code, as added by
876-13   Chapter 541, Acts of the 76th Legislature, Regular Session, 1999,
876-14   is renumbered as Section 493.025, Government Code.
876-15               (44)  Section 497.011, Government Code, as added by
876-16   Chapter 419, Acts of the 76th Legislature, Regular Session, 1999,
876-17   is renumbered as Section 497.012, Government Code.
876-18               (45)  Section 508.225, Government Code, as added by
876-19   Chapter 62, Acts of the 76th Legislature, Regular Session, 1999, is
876-20   renumbered as Section 508.226, Government Code.
876-21               (46)  Section 531.051, Government Code, as added by
876-22   Chapter 1013, Acts of the 76th Legislature, Regular Session, 1999,
876-23   is renumbered as Section 531.053, Government Code.
876-24               (47)  Section 531.052, Government Code, as added by
876-25   Chapter 1013, Acts of the 76th Legislature, Regular Session, 1999,
876-26   is renumbered as Section 531.054, Government Code.
876-27               (48)  Subchapter G, Chapter 531, Government Code, as
 877-1   added by Chapter 446, Acts of the 76th Legislature, Regular
 877-2   Session, 1999, is relettered as Subchapter H, Chapter 531,
 877-3   Government Code.
 877-4               (49)  Section 551.086, Government Code, as added by
 877-5   Chapter 1319, Acts of the 76th Legislature, Regular Session, 1999,
 877-6   is renumbered as Section 551.087, Government Code.
 877-7               (50)  Section 551.086, Government Code, as added by
 877-8   Chapter 312, Acts of the 76th Legislature, Regular Session, 1999,
 877-9   is renumbered as Section 551.088, Government Code.
877-10               (51)  Section 552.0035, Government Code, as added by
877-11   Chapter 1084, Acts of the 76th Legislature, Regular Session, 1999,
877-12   is renumbered as Section 552.0036, Government Code.
877-13               (52)  Section 552.131, Government Code, as added by
877-14   Chapter 405, Acts of the 76th Legislature, Regular Session, 1999,
877-15   is renumbered as Section 552.133, Government Code.
877-16               (53)  Section 552.131, Government Code, as added by
877-17   Chapter 783, Acts of the 76th Legislature, Regular Session, 1999,
877-18   is renumbered as Section 552.134, Government Code.
877-19               (54)  Section 552.131, Government Code, as added by
877-20   Chapter 1335, Acts of the 76th Legislature, Regular Session, 1999,
877-21   is renumbered as Section 552.135, Government Code.
877-22               (55)  Chapter 618, Government Code, as added by Chapter
877-23   1174, Acts of the 76th Legislature, Regular Session, 1999, is
877-24   transferred to Subtitle B, Title 6, Government Code, and renumbered
877-25   as Chapter 669, Government Code, and Sections 618.001, 618.002,
877-26   618.003, and 618.004, Government Code, as added by that Act, are
877-27   renumbered as Sections 669.001, 669.002, 669.003, and 669.004,
 878-1   Government Code, respectively.
 878-2               (56)  Section 651.005, Government Code, as added by
 878-3   Chapter 279, Acts of the 76th Legislature, Regular Session, 1999,
 878-4   is renumbered as Section 651.006, Government Code.
 878-5               (57)  Subchapter H, Chapter 659, Government Code, as
 878-6   added by Chapter 76, Acts of the 74th Legislature, Regular Session,
 878-7   1995, is relettered as Subchapter I, Chapter 659, Government Code.
 878-8               (58)  Section 662.046, Government Code, as added by
 878-9   Chapter 502, Acts of the 76th Legislature, Regular Session, 1999,
878-10   and Section 662.050, Government Code, as added by Chapter 1453,
878-11   Acts of the 76th Legislature, Regular Session, 1999, are renumbered
878-12   as Section 662.047, Government Code.
878-13               (59)  Chapter 666, Government Code, as added by Chapter
878-14   279, Acts of the 76th Legislature, Regular Session, 1999, is
878-15   renumbered as Chapter 667, Government Code, and Sections 666.001,
878-16   666.002, 666.003, 666.004, 666.005, 666.006, 666.007, 666.008, and
878-17   666.009, Government Code, as added by that Act, are renumbered as
878-18   Sections 667.001, 667.002, 667.003, 667.004, 667.005, 667.006,
878-19   667.007, 667.008, and 667.009, Government Code, respectively.
878-20               (60)  Chapter 666, Government Code, as added by Chapter
878-21   1178, Acts of the 76th Legislature, Regular Session, 1999, is
878-22   renumbered as Chapter 668, Government Code, and Sections 666.001
878-23   and 666.002, Government Code, as added by that Act, are renumbered
878-24   as Sections 668.001 and 668.002, Government Code, respectively.
878-25               (61)  Section 813.511, Government Code, as added by
878-26   Chapter 226, Acts of the 76th Legislature, Regular Session, 1999,
878-27   is renumbered as Section 813.512, Government Code.
 879-1               (62)  (reserved for expansion)
 879-2               (63)  Section 2001.006, Government Code, as added by
 879-3   Chapter 1233, Acts of the 76th Legislature, Regular Session, 1999,
 879-4   is renumbered as Section 2001.007, Government Code.
 879-5               (64)  Section 2001.039, Government Code, as added by
 879-6   Chapter 558, Acts of the 76th Legislature, Regular Session, 1999,
 879-7   is renumbered as Section 2001.040, Government Code.
 879-8               (65)  Subsection (e), Section 2003.021, Government
 879-9   Code, as added by Chapter 85, Acts of the 76th Legislature, Regular
879-10   Session, 1999, is relettered as Subsection (f), Section 2003.021,
879-11   Government Code.
879-12               (66)  Section 2054.121, Government Code, as added by
879-13   Chapter 860, Acts of the 76th Legislature, Regular Session, 1999,
879-14   is renumbered as Section 2054.123, Government Code.
879-15               (67)  Section 2054.122, Government Code, as added by
879-16   Chapter 860, Acts of the 76th Legislature, Regular Session, 1999,
879-17   is renumbered as Section 2054.124, Government Code.
879-18               (68)  Section 2054.121, Government Code, as added by
879-19   Chapter 1233, Acts of the 76th Legislature, Regular Session, 1999,
879-20   is renumbered as Section 2054.125, Government Code.
879-21               (69)  Section 2054.121, Government Code, as added by
879-22   Chapter 1573, Acts of the 76th Legislature, Regular Session, 1999,
879-23   is renumbered as Section 2054.126, Government Code.
879-24               (70)  Chapter 2113, Government Code, as added by
879-25   Chapter 1554, Acts of the 76th Legislature, Regular Session, 1999,
879-26   is renumbered as Chapter 2114, Government Code, and Sections
879-27   2113.001, 2113.002, 2113.003, 2113.004, 2113.005, 2113.006, and
 880-1   2113.007, Government Code, as added by that Act, are renumbered as
 880-2   Sections 2114.001, 2114.002, 2114.003, 2114.004, 2114.005,
 880-3   2114.006, and 2114.007, Government Code, respectively.
 880-4               (71)  Chapter 2259, Government Code, as added by
 880-5   Chapter 1498, Acts of the 76th Legislature, Regular Session, 1999,
 880-6   is renumbered as Chapter 2261, Government Code, and Sections
 880-7   2259.001, 2259.002, 2259.003, 2259.051, 2259.052, 2259.101,
 880-8   2259.102, 2259.151, 2259.201, 2259.202, and 2259.203, Government
 880-9   Code, as added by that Act, are renumbered as Sections 2261.001,
880-10   2261.002, 2261.003, 2261.051, 2261.052, 2261.101, 2261.102,
880-11   2261.151, 2261.201, 2261.202, and 2261.203, Government Code,
880-12   respectively.
880-13               (72)  Chapter 46, Health and Safety Code, as added by
880-14   Chapter 857, Acts of the 76th Legislature, Regular Session, 1999,
880-15   is renumbered as Chapter 48, Health and Safety Code, and Sections
880-16   46.001, 46.002, and 46.003, Health and Safety Code, as added by
880-17   that Act, are renumbered as Sections 48.001, 48.002, and 48.003,
880-18   Health and Safety Code, respectively.
880-19               (73)  Chapter 46, Health and Safety Code, as added by
880-20   Chapter 1516, Acts of the 76th Legislature, Regular Session, 1999,
880-21   is renumbered as Chapter 49, Health and Safety Code, and Section
880-22   46.001, Health and Safety Code, as added by that Act, is renumbered
880-23   as Section 49.001, Health and Safety Code.
880-24               (74)  Chapter 93, Health and Safety Code, as added by
880-25   Chapter 823, Acts of the 76th Legislature, Regular Session, 1999,
880-26   is renumbered as Chapter 94, Health and Safety Code, and Sections
880-27   93.001, 93.002, and 93.003, Health and Safety Code, as added by
 881-1   that Act, are renumbered as Sections 94.001, 94.002, and 94.003,
 881-2   Health and Safety Code, respectively.
 881-3               (75)  Chapter 166, Health and Safety Code, as added by
 881-4   Chapter 642, Acts of the 76th Legislature, Regular Session, 1999,
 881-5   is renumbered as Chapter 167, Health and Safety Code, and Section
 881-6   166.001, Health and Safety Code, as added by that Act, is
 881-7   renumbered as Section 167.001, Health and Safety Code.
 881-8               (76)  Subtitle E, Title 5, Health and Safety Code, as
 881-9   amended by Chapter 713, Acts of the 76th Legislature, Regular
881-10   Session, 1999, is relettered as Subtitle F, Title 5, Health and
881-11   Safety Code.
881-12               (77)  Chapter 421, Health and Safety Code, as added by
881-13   Chapter 713, Acts of the 76th Legislature, Regular Session, 1999,
881-14   is renumbered as Chapter 425, Health and Safety Code, and Sections
881-15   421.001 and 421.002, Health and Safety Code, as added by that Act,
881-16   are renumbered as Sections 425.001 and 425.002, Health and Safety
881-17   Code, respectively.
881-18               (78)  Section 431.006, Health and Safety Code, as added
881-19   by Chapter 1298, Acts of the 76th Legislature, Regular Session,
881-20   1999, is renumbered as Section 431.007, Health and Safety Code.
881-21               (79)  Section 461.062, Health and Safety Code, as added
881-22   by Chapter 678, Acts of the 71st Legislature, Regular Session,
881-23   1989, is renumbered as Section 481.062, Health and Safety Code.
881-24               (80)  Section 775.041, Health and Safety Code, as added
881-25   by Chapter 914, Acts of the 76th Legislature, Regular Session,
881-26   1999, is renumbered as Section 775.043, Health and Safety Code.
881-27               (81)  Subsection (v), Section 32.024, Human Resources
 882-1   Code, as added by Chapter 1333, Acts of the 76th Legislature,
 882-2   Regular Session, 1999, is relettered as Subsection (w), Section
 882-3   32.024, Human Resources Code.
 882-4               (82)  Section 302.006, Labor Code, as added by Chapter
 882-5   482, Acts of the 76th Legislature, Regular Session, 1999, is
 882-6   renumbered as Section 302.007, Labor Code.
 882-7               (83)  Section 43.0752, Local Government Code, as added
 882-8   by Chapter 293, Acts of the 76th Legislature, Regular Session,
 882-9   1999, is renumbered as Section 43.0753, Local Government Code.
882-10               (84)  Section 43.905, Local Government Code, as added
882-11   by Chapter 218, Acts of the 76th Legislature, Regular Session,
882-12   1999, is renumbered as Section 43.907, Local Government Code.
882-13               (85)  Section 232.0031, Local Government Code, as added
882-14   by Chapter 460, Acts of the 76th Legislature, Regular Session,
882-15   1999, is renumbered as Section 232.0032, Local Government Code.
882-16               (86)  Section 280.003, Local Government Code, as added
882-17   by Chapter 986, Acts of the 76th Legislature, Regular Session,
882-18   1999, is renumbered as Section 280.004, Local Government Code.
882-19               (87)  Chapter 303, Local Government Code, as added by
882-20   Chapter 405, Acts of the 76th Legislature, Regular Session, 1999,
882-21   is renumbered as Chapter 304, Local Government Code, and Sections
882-22   303.001 and 303.002, Local Government Code, as added by that Act,
882-23   are renumbered as Sections 304.001 and 304.002, Local Government
882-24   Code, respectively.
882-25               (88)  Subchapter H, Chapter 376, Local Government Code,
882-26   as added by Chapter 1017, Acts of the 76th Legislature, Regular
882-27   Session, 1999, is relettered as Subchapter I, Chapter 376, Local
 883-1   Government Code, and Sections 376.301, 376.302, 376.303, 376.304,
 883-2   376.305, 376.306, 376.307, 376.308, 376.309, 376.310, 376.311,
 883-3   376.312, 376.313, 376.314, 376.315, 376.316, 376.317, 376.318,
 883-4   376.319, 376.320, 376.321, 376.322, 376.323, 376.324, 376.325, and
 883-5   376.326, Local Government Code, as added by that Act, are
 883-6   renumbered as Sections 376.351, 376.352, 376.353, 376.354, 376.355,
 883-7   376.356, 376.357, 376.358, 376.359, 376.360, 376.361, 376.362,
 883-8   376.363, 376.364, 376.365, 376.366, 376.367, 376.368, 376.369,
 883-9   376.370, 376.371, 376.372, 376.373, 376.374, 376.375, and 376.376,
883-10   Local Government Code, respectively.
883-11               (89)  Subchapter H, Chapter 376, Local Government Code,
883-12   as added by Chapter 1324, Acts of the 76th Legislature, Regular
883-13   Session, 1999, is relettered as Subchapter J, Chapter 376, Local
883-14   Government Code, and Sections 376.301, 376.302, 376.303, 376.304,
883-15   376.305, 376.306, 376.307, 376.308, 376.309, 376.310, 376.311,
883-16   376.312, 376.313, 376.314, 376.315, 376.316, 376.317, 376.318,
883-17   376.319, 376.320, 376.321, 376.322, 376.323, 376.324, and 376.325,
883-18   Local Government Code, as added by that Act, are renumbered as
883-19   Sections 376.401, 376.402, 376.403, 376.404, 376.405, 376.406,
883-20   376.407, 376.408, 376.409, 376.410, 376.411, 376.412, 376.413,
883-21   376.414, 376.415, 376.416, 376.417, 376.418, 376.419, 376.420,
883-22   376.421, 376.422, 376.423, 376.424, and 376.425, Local Government
883-23   Code, respectively.
883-24               (90)  Chapter 378, Local Government Code, as added by
883-25   Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999,
883-26   is renumbered as Chapter 379, Local Government Code, and Sections
883-27   378.001, 378.002, 378.003, 378.004, 378.005, 378.006, 378.007,
 884-1   378.008, 378.009, 378.010, 378.011, and 378.012, Local Government
 884-2   Code, as added by that Act, are renumbered as Sections 379.001,
 884-3   379.002, 379.003, 379.004, 379.005, 379.006, 379.007, 379.008,
 884-4   379.009, 379.010, 379.011, and 379.012, Local Government Code,
 884-5   respectively.
 884-6               (91)  Chapter 384, Local Government Code, as added by
 884-7   Chapter 1283, Acts of the 76th Legislature, Regular Session, 1999,
 884-8   is renumbered as Chapter 385, Local Government Code, and Sections
 884-9   384.001, 384.002, 384.003, 384.004, 384.005, 384.006, 384.007,
884-10   384.008, 384.009, 384.010, 384.011, and 384.012, Local Government
884-11   Code, as added by that Act, are renumbered as Sections 385.001,
884-12   385.002, 385.003, 385.004, 385.005, 385.006, 385.007, 385.008,
884-13   385.009, 385.010, 385.011, and 385.012, Local Government Code,
884-14   respectively.
884-15               (92)  Chapter 422, Local Government Code, as added by
884-16   Chapter 245, Acts of the 76th Legislature, Regular Session, 1999,
884-17   is renumbered as Chapter 423, Local Government Code, and Sections
884-18   422.001, 422.002, and 422.003, Local Government Code, as added by
884-19   that Act, are renumbered as Sections 423.001, 423.002, and 423.003,
884-20   Local Government Code, respectively.
884-21               (93)  Section 12.48, Penal Code, as added by Chapter
884-22   417, Acts of the 76th Legislature, Regular Session, 1999, is
884-23   renumbered as Section 12.49, Penal Code.
884-24               (94)  Subdivision (5), Subsection (b), Section 30.05,
884-25   Penal Code, as added by Chapter 765, Acts of the 76th Legislature,
884-26   Regular Session, 1999, is renumbered as  Subdivision (6),
884-27   Subsection (b), Section 30.05, Penal Code.
 885-1               (95)  Section 5.010, Property Code, as added by Chapter
 885-2   1239, Acts of the 75th Legislature, Regular Session, 1997, is
 885-3   renumbered as Section 5.013, Property Code.
 885-4               (96)  Chapter 62, Property Code, as added by Chapter
 885-5   742, Acts of the 76th Legislature, Regular Session, 1999, is
 885-6   renumbered as Chapter 63, Property Code, and Sections 62.001,
 885-7   62.002, 62.003, and 62.004, Property Code, as added by that Act,
 885-8   are renumbered as Sections 63.001, 63.002, 63.003, and 63.004,
 885-9   Property Code, respectively.
885-10               (97)  Section 92.013, Property Code, as added by
885-11   Chapter 1439, Acts of the 76th Legislature, Regular Session, 1999,
885-12   is renumbered as Section 92.014, Property Code.
885-13               (98)  Chapter 207, Property Code, as added by Chapter
885-14   871, Acts of the 76th Legislature, Regular Session, 1999, is
885-15   renumbered as Chapter 208, Property Code, and Sections 207.001,
885-16   207.002, 207.003, 207.004, 207.005, 207.006, 207.007, 207.008, and
885-17   207.009, Property Code, as added by that Act, are renumbered as
885-18   Sections 208.001, 208.002, 208.003, 208.004, 208.005, 208.006,
885-19   208.007, 208.008, and 208.009, Property Code, respectively.
885-20               (99)  Subsection (i), Section 41.45, Tax Code, as added
885-21   by Chapter 416, Acts of the 76th Legislature, Regular Session,
885-22   1999, is relettered as Subsection (m), Section 41.45, Tax Code.
885-23               (100)  Subsection (r), Section 151.318, Tax Code, as
885-24   added by Chapter 1040, Acts of the 75th Legislature, Regular
885-25   Session, 1997, is relettered as Subsection (p), Section 151.318,
885-26   Tax Code.
885-27               (101)  Section 351.107, Tax Code, as added by Chapters
 886-1   495 and 1467, Acts of the 76th Legislature, Regular Session, 1999,
 886-2   is renumbered as Section 351.108, Tax Code.
 886-3               (102)  Subsection (h), Section 223.010, Transportation
 886-4   Code, as added by Chapter 902, Acts of the 76th Legislature,
 886-5   Regular Session, 1999, is relettered as Subsection (i), Section
 886-6   223.010, Transportation Code.
 886-7               (103)  Section 225.041, Transportation Code, as added
 886-8   by Chapter 1000, Acts of the 76th Legislature, Regular Session,
 886-9   1999, is renumbered as Section 225.042, Transportation Code.
886-10               (104)  Section 225.041, Transportation Code, as added
886-11   by Chapter 1164, Acts of the 76th Legislature, Regular Session,
886-12   1999, is renumbered as Section 225.043, Transportation Code.
886-13               (105)  Section 502.1585, Transportation Code, as added
886-14   by Chapter 732, Acts of the 76th Legislature, Regular Session,
886-15   1999, is renumbered as Section 502.1586, Transportation Code.
886-16               (106)  Section 502.298, Transportation Code, as added
886-17   by Chapter 862, Acts of the 76th Legislature, Regular Session,
886-18   1999, is renumbered as Section 502.2734, Transportation Code.
886-19               (107)  Section 502.299, Transportation Code, as added
886-20   by Chapter 433, Acts of the 76th Legislature, Regular Session,
886-21   1999, is renumbered as Section 502.2932, Transportation Code.     
886-22               (108)  Section 502.299, Transportation Code, as added
886-23   by Chapter 634, Acts of the 76th Legislature, Regular Session,
886-24   1999, is renumbered as Section 502.2933, Transportation Code.     
886-25               (109)  Section 521.103, Transportation Code, as added
886-26   by Chapter 1189, Acts of the 76th Legislature, Regular Session,
886-27   1999, is renumbered as Section 521.104, Transportation Code.              
 887-1               (110)  Section 55.012, Utilities Code, as added by
 887-2   Chapter 835, Acts of the 76th Legislature, Regular Session, 1999,
 887-3   is repealed.
 887-4               (111)  Section 55.012, Utilities Code, as added by
 887-5   Chapter 1212, Acts of the 76th Legislature, Regular Session, 1999,
 887-6   is renumbered as Section 55.016, Utilities Code.            
 887-7               (112)  Section 5.123, Water Code, as added by Chapters
 887-8   304 and 1082, Acts of the 75th Legislature, Regular Session, 1997,
 887-9   is renumbered as Section 5.126, Water Code.     
887-10               (113)  Section 5.125, Water Code, as added by Chapter
887-11   187, Acts of the 76th Legislature, Regular Session, 1999, is
887-12   repealed.
887-13               (114)  Subchapter M, Chapter 5, Water Code, as added by
887-14   Chapter 287, Acts of the 76th Legislature, Regular Session, 1999,
887-15   is relettered as Subchapter N, Chapter 5, Water Code, and Sections
887-16   5.551, 5.552, 5.553, 5.554, 5.555, 5.556, 5.557, 5.558, and 5.559,
887-17   Water Code, as added by that Act, are renumbered as Sections 5.601,
887-18   5.602, 5.603, 5.604, 5.605, 5.606, 5.607, 5.608, and 5.609, Water
887-19   Code, respectively.
887-20         SECTION 21.002. The following reference changes are made to
887-21   conform the provisions amended to the renumbering changes made by
887-22   Section 21.001 of this Act:
887-23               (1)  Section 46.002, Agriculture Code, as added by
887-24   Chapter 1074, Acts of the 76th Legislature, Regular Session, 1999,
887-25   is renumbered as Section 50.002, Agriculture Code, as provided by
887-26   this article, and amended to read as follows:
887-27         Sec. 50.002 [46.002].  TERM OF AWARD. An award under Section
 888-1   50.001 [46.001] must be granted for a two-year period and may be
 888-2   extended at the end of that period after review.
 888-3               (2)  Subdivision (4), Section 49.001, Agriculture Code,
 888-4   as renumbered from Section 46.001, Agriculture Code, by this
 888-5   article, is amended to read as follows:
 888-6               (4)  "Eligible institution" means an institution of
 888-7   higher education, as that term is defined by Section 61.003,
 888-8   Education Code, that is designated as an eligible institution under
 888-9   Section 49.002(e) [46.002(e)].
888-10               (3)  Subsection (a), Section 154.073, Civil Practice
888-11   and Remedies Code, is amended to read as follows:
888-12         (a)  Except as provided by Subsections (c), (d), [and] (e),
888-13   and (f), a communication relating to the subject matter of any
888-14   civil or criminal dispute made by a participant in an alternative
888-15   dispute resolution procedure, whether before or after the
888-16   institution of formal judicial proceedings, is confidential, is not
888-17   subject to disclosure, and may not be used as evidence against the
888-18   participant in any judicial or administrative proceeding.
888-19               (4)  Section 21.502, Education Code, as added by
888-20   Chapter 1590, Acts of the 76th Legislature, Regular Session, 1999,
888-21   is renumbered as Section 21.552, Education Code, as provided by
888-22   this article, and amended to read as follows:
888-23         Sec. 21.552 [21.502].  PROGRAM ESTABLISHED. The State Board
888-24   for Educator Certification by rule shall establish the Teach for
888-25   Texas Pilot Program consistent with the purposes provided by
888-26   Section 21.551 [21.501].
888-27               (5)  Subsection (c), Section 61.531, Education Code, is
 889-1   amended to read as follows:
 889-2         (c)  A physician who receives repayment assistance under this
 889-3   subchapter may not receive assistance under Subchapter E, Chapter
 889-4   106 [Chapter 46], Health and Safety Code.
 889-5               (6)  Subsection (c), Section 497.010, Government Code,
 889-6   is amended to read as follows:
 889-7         (c)  It is an exception to the application of this section
 889-8   that the article or product sold is a state flag or similar item
 889-9   produced for sale or distribution by the legislature under Section
889-10   301.034 [301.033].
889-11               (7)  Section 552.029, Government Code, is amended to
889-12   read as follows:
889-13         Sec. 552.029.  RIGHT OF ACCESS TO CERTAIN INFORMATION
889-14   RELATING TO INMATE OF DEPARTMENT OF CRIMINAL JUSTICE.
889-15   Notwithstanding Section 508.313 or 552.134 [552.131], the following
889-16   information about an inmate who is confined in a facility operated
889-17   by or under a contract with the Texas Department of Criminal
889-18   Justice is subject to required disclosure under Section 552.021:
889-19               (1)  the inmate's name, identification number, age,
889-20   birthplace, physical description, or general state of health or the
889-21   nature of an injury to or critical illness suffered by the inmate;
889-22               (2)  the inmate's assigned unit or the date on which
889-23   the unit received the inmate, unless disclosure of the information
889-24   would violate federal law relating to the confidentiality of
889-25   substance abuse treatment;
889-26               (3)  the offense for which the inmate was convicted or
889-27   the judgment and sentence for that offense;
 890-1               (4)  the county and court in which the inmate was
 890-2   convicted;
 890-3               (5)  the inmate's earliest or latest possible release
 890-4   dates;
 890-5               (6)  the inmate's parole date or earliest possible
 890-6   parole date;
 890-7               (7)  any prior confinement of the inmate by the Texas
 890-8   Department of Criminal Justice or its predecessor; or
 890-9               (8)  basic information regarding the death of an inmate
890-10   in custody, an incident involving the use of force, or an alleged
890-11   crime involving the inmate.
890-12               (8)  Subsection (a), Section 48.003, Health and Safety
890-13   Code, as renumbered from Section 46.003, Health and Safety Code, by
890-14   this article, is amended to read as follows:
890-15         (a)  The department shall establish and operate a
890-16   certification program for persons who act as promotoras.  In
890-17   establishing the program, the board shall adopt rules that provide
890-18   minimum standards and guidelines, including participation in the
890-19   training and education program under Section 48.002 [46.002], for
890-20   issuance of a certificate to a person under this section.
890-21               (9)  Subsection (a), Section 376.369, Local Government
890-22   Code, as renumbered from Section 376.319, Local Government Code, by
890-23   this article, is amended to read as follows:
890-24         (a)  If authorized at an election held in accordance with
890-25   Section 376.368 [376.318], the district may impose and collect an
890-26   annual ad valorem tax on taxable property in the district for the
890-27   maintenance and operation of the district and the improvements
 891-1   constructed or acquired by the district or for the provision of
 891-2   services.
 891-3               (10)  Subsection (a), Section 376.420, Local Government
 891-4   Code, as renumbered from Section 376.320, Local Government Code, by
 891-5   this article, is amended to read as follows:
 891-6         (a)  The district may impose and collect an annual ad valorem
 891-7   tax on taxable property in the district for the maintenance and
 891-8   operation of the district and the improvements constructed or
 891-9   acquired by the district or for the provision of services only if:
891-10               (1)  two-thirds of the board members vote in favor of
891-11   imposing the tax; and
891-12               (2)  the tax is authorized at an election held in
891-13   accordance with Section 376.419 [376.319].
891-14               (11)  Subsection (b), Section 379.008, Local Government
891-15   Code, as renumbered from Section 378.008, Local Government Code, by
891-16   this article, is amended to read as follows:
891-17         (b)  For the base property and areas adjacent to the base
891-18   property the board shall:
891-19               (1)  promote economic development;
891-20               (2)  attempt to reduce unemployment;
891-21               (3)  encourage the development of new industry by
891-22   private businesses; and
891-23               (4)  encourage financing of projects designated under
891-24   Section 379.009 [378.009].
891-25               (12)  Subsection (b), Section 379.011, Local Government
891-26   Code, as renumbered from Section 378.011, Local Government Code, by
891-27   this article, is amended to read as follows:
 892-1         (b)  Section 25.07(a), Tax Code, applies to a leasehold or
 892-2   other possessory interest in real property granted by an authority
 892-3   for a project designated under Section 379.009(a) [378.009(a)] in
 892-4   the same manner as it applies to a leasehold or other possessory
 892-5   interest in real property constituting a project described by
 892-6   Section 4B(k), Development Corporation Act of 1979 (Article 5190.6,
 892-7   Vernon's Texas Civil Statutes).
 892-8               (13)  Subsection (a), Section 385.007, Local Government
 892-9   Code, as renumbered from Section 384.007, Local Government Code, by
892-10   this article, is amended to read as follows:
892-11         (a)  A district by order may impose a sales and use tax under
892-12   this chapter to finance the operations of the district only if the
892-13   tax is approved at an election held under Section 385.003
892-14   [384.003].
892-15               (14)  Subsection (a), Section 385.010, Local Government
892-16   Code, as renumbered from Section 384.010, Local Government Code, by
892-17   this article, is amended to read as follows:
892-18         (a)  A district that has adopted a sales and use tax under
892-19   this chapter may, by order and subject to Section 385.007(b)
892-20   [384.007(b)], change the rate of the tax or repeal the tax if the
892-21   change or repeal is approved by a majority of the votes received in
892-22   the district at an election held for that purpose.
892-23               (15)  Section 12.48, Penal Code, as added by Chapter
892-24   417, Acts of the 76th Legislature, Regular Session, 1999, is
892-25   renumbered as Section 12.49, Penal Code, as provided by this
892-26   article, and amended to read as follows:
892-27         Sec. 12.49 [12.48].  PENALTY IF CONTROLLED SUBSTANCE USED TO
 893-1   COMMIT OFFENSE. If the court makes an affirmative finding under
 893-2   Article 42.012 [42.015], Code of Criminal Procedure, in the
 893-3   punishment phase of the trial of an offense under Chapter 29,
 893-4   Chapter 31, or Title 5, other than a first degree felony or a Class
 893-5   A misdemeanor, the punishment for the offense is increased to the
 893-6   punishment prescribed for the next highest category of offense.  If
 893-7   the offense is a Class A misdemeanor, the minimum term of
 893-8   confinement for the offense is increased to 180 days.
 893-9               (16)  Subsection (c), Section 63.004, Property Code, as
893-10   renumbered from Section 62.004, Property Code, by this article, is
893-11   amended to read as follows:
893-12         (c)  A lien that is converted to a purchase money lien on
893-13   real property under Section 63.003 [62.003] may be refinanced with
893-14   another lien on the real property to which the manufactured home is
893-15   permanently attached as provided by Section 2.001(b).
893-16               (17)  Subsection (c), Section 208.002, Property Code,
893-17   as renumbered from Section 207.002, Property Code, by this article,
893-18   is amended to read as follows:
893-19         (c)  This chapter applies to property in the area of a
893-20   historic neighborhood that is zoned for or that contains a
893-21   commercial structure, an industrial structure, an apartment
893-22   complex, or a condominium development covered by Title 7 only if
893-23   the owner of the property signed a restrictive covenant that
893-24   includes the property in a common scheme for preservation of
893-25   historic property as described by Section 208.004 [207.004].
893-26               (18)  Subsection (c), Section 208.005, Property Code,
893-27   as renumbered from Section 207.005, Property Code, by this article,
 894-1   is amended to read as follows:
 894-2         (c)  The amendment or termination of a restrictive covenant
 894-3   is effective and applies to each separately owned parcel or tract
 894-4   subject to the common scheme for preservation of historic property
 894-5   if the owners of at least 75 percent of the parcels or tracts who
 894-6   vote on the issue in accordance with Section 208.006 [207.006] vote
 894-7   in favor of the amendment or termination of the restrictive
 894-8   covenant.
 894-9               (19)  Section 223.010(a), Transportation Code, is
894-10   amended to read as follows:
894-11         (a)  Five percent of the contract price shall be retained
894-12   until the entire improvement has been completed and accepted,
894-13   except as provided by Subsections [Subsection] (h) and (i).
894-14               (20)  Subsection (g), Section 521.421, Transportation
894-15   Code, is amended to read as follows:
894-16         (g)  The department shall collect an additional fee of $1 for
894-17   the issuance or renewal of a license to fund the anatomical gift
894-18   educational program established under Chapter 49 [46], Health and
894-19   Safety Code, if the person applying for or renewing a license opts
894-20   to pay the additional fee.  The department shall remit fees
894-21   collected under this subsection to the comptroller, who shall
894-22   maintain the identity of the source of the fees.
894-23               (21)  Subsection (c), Section 521.422, Transportation
894-24   Code, is amended to read as follows:
894-25         (c)  The department shall collect an additional fee of $1 for
894-26   the issuance or renewal of a personal identification card to fund
894-27   the anatomical gift educational program established under Chapter
 895-1   49 [46], Health and Safety Code, if the person applying for or
 895-2   renewing a personal identification card opts to pay the additional
 895-3   fee.  The department shall remit fees collected under this
 895-4   subsection to the comptroller, who shall maintain the identity of
 895-5   the source of the fees.
 895-6               (22)  Subsection (b), Section 39.354, Utilities Code,
 895-7   is amended to read as follows:
 895-8         (b)  In this section, "municipal aggregator" means a person
 895-9   authorized by two or more municipal governing bodies to join the
895-10   bodies into a single purchasing unit to negotiate the purchase of
895-11   electricity from retail electric providers or aggregation by a
895-12   municipality under Chapter 304 [303], Local Government Code.
895-13               (23)  Subsection (b), Section 39.3545, Utilities Code,
895-14   is amended to read as follows:
895-15         (b)  In this section, "political subdivision aggregator"
895-16   means a person or political subdivision corporation authorized by
895-17   two or more political subdivision governing bodies to join the
895-18   bodies into a single purchasing unit or multiple purchasing units
895-19   to negotiate the purchase of electricity from retail electric
895-20   providers for the facilities of the aggregated political
895-21   subdivisions or aggregation by a person or political subdivision
895-22   under Chapter 304 [303], Local Government Code.
895-23         SECTION 21.003. If the number, letter, or designation
895-24   assigned by Section 21.001 of this Act conflicts with a number,
895-25   letter, or designation assigned by another Act of the 77th
895-26   Legislature:
895-27               (1)  the other Act controls, and the change made by
 896-1   Section 21.001 of this Act has no effect; and
 896-2               (2)  any cross-reference change made by Section 21.002
 896-3   of this Act to conform to that change made by Section 21.001 of
 896-4   this Act has no effect.
 896-5                       ARTICLE 22.  EFFECTIVE DATE
 896-6         SECTION 22.001. (a)  Except as provided by Subsection (b) of
 896-7   this section, this Act takes effect September 1, 2001.
 896-8         (b)  Section 8.104 of this Act takes effect July 1, 2001, if
 896-9   this Act receives a vote of two-thirds of all the members elected
896-10   to each house, as provided by Section 39, Article III, Texas
896-11   Constitution.  If this Act does not receive the vote necessary for
896-12   effect of that section on that date, the section takes effect
896-13   September 1, 2001.