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                                                                  H.B. No. 7  




AN ACT
relating to the reorganization of, efficiency in, and other reform measures applying to governmental entities and certain regulatory practices; providing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GOVERNOR'S BUDGET AUTHORITY
SECTION 1.01. Section 401.046(a), Government Code, is amended to read as follows: (a) The governor shall deliver a copy of the governor's budget to each member of the legislature before the governor gives the message to the legislature required by Section 9, Article IV, Texas Constitution, at the commencement [not later than the sixth day] of each regular legislative session. SECTION 1.02. Section 401.047, Government Code, is repealed.
ARTICLE 2. UNCLAIMED PROPERTY
SECTION 2.01. Section 72.101(a), Property Code, is amended to read as follows: (a) Except as provided by this section and Sections 72.1015 and [Section] 72.102, personal property is presumed abandoned if, for longer than three years: (1) the existence and location of the owner of the property is unknown to the holder of the property; and (2) according to the knowledge and records of the holder of the property, a claim to the property has not been asserted or an act of ownership of the property has not been exercised. SECTION 2.02. Subchapter B, Chapter 72, Property Code, is amended by adding Section 72.1015 to read as follows: Sec. 72.1015. UNCLAIMED WAGES. (a) In this section, "wages" has the meaning assigned by Section 61.001, Labor Code. (b) An amount of unclaimed wages is presumed abandoned if, for longer than one year: (1) the existence and location of the person to whom the wages are owed is unknown to the holder of the wages; and (2) according to the knowledge and records of the holder of the wages, a claim to the wages has not been asserted or an act of ownership of the wages has not been exercised. SECTION 2.03. Section 74.001(a), Property Code, as amended by Chapter 465, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (a) Except as provided by Subsection (b), this chapter applies to a holder of property that is presumed abandoned under[: [(1)] Chapter 72, Chapter 73, or Chapter 75 [of this code; or [(2) Subchapter G, Chapter 61, Labor Code]. SECTION 2.04. Section 74.101(a), Property Code, as amended by Chapter 465, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (a) Each holder who on June 30 holds property that is presumed abandoned under Chapter 72, 73, or 75 of this code or under[,] Chapter 154, Finance Code, [or Subchapter G, Chapter 61, Labor Code,] shall file a report of that property on or before the following November 1. The comptroller may require the report to be in a particular format, including a format that can be read by a computer. SECTION 2.05. Section 74.301(a), Property Code, as amended by Chapter 465, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (a) Except as provided by Subsection (c), each holder who on June 30 holds property that is presumed abandoned under Chapter 72, 73, or 75 [of this code or Subchapter G, Chapter 61, Labor Code,] shall deliver the property to the comptroller on or before the following November 1 accompanied by the report required to be filed under Section 74.101. SECTION 2.06. Subchapter G, Chapter 61, Labor Code, as added by Chapter 465, Acts of the 78th Legislature, Regular Session, 2003, is repealed. SECTION 2.07. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect on the 91st day after the last day of the legislative session.
ARTICLE 3. ABANDONMENT OF PROCEEDS ON DEMUTUALIZATION
SECTION 3.01. Section 72.101, Property Code, is amended by adding Subsections (c) and (d) to read as follows: (c) Property distributable in the course of a demutualization or related reorganization of an insurance company is presumed abandoned on the first anniversary of the date the property becomes distributable if, at the time of the first distribution, the last known address of the owner according to the records of the holder of the property is known to be incorrect or the distribution or statements related to the distribution are returned by the post office as undeliverable and the owner has not: (1) communicated in writing with the holder of the property or the holder's agent regarding the interest; or (2) otherwise communicated with the holder regarding the interest as evidenced by a memorandum or other record on file with the holder or its agents. (d) Property distributable in the course of a demutualization or related reorganization of an insurance company that is not subject to Subsection (c) is presumed abandoned as otherwise provided by this section. SECTION 3.02. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect on the 91st day after the last day of the legislative session.
ARTICLE 4. TELECONFERENCE MEETING OF LEGISLATIVE BUDGET BOARD
SECTION 4.01. Section 322.003, Government Code, is amended by adding Subsections (d) and (e) to read as follows: (d) As an exception to Chapter 551 and other law, if the joint chairs of the board are physically present at a meeting, then any number of the other members of the board may attend a meeting of the board by use of telephone conference call, video conference call, or other similar telecommunication device. This subsection applies for purposes of constituting a quorum, for purposes of voting, and for any other purpose allowing a member of the board to otherwise fully participate in any meeting of the board. This subsection applies without exception with regard to the subject of the meeting or topics considered by the members. (e) A meeting held by use of telephone conference call, video conference call, or other similar telecommunication device: (1) is subject to the notice requirements applicable to other meetings; (2) must specify in the notice of the meeting the location of the meeting at which the joint chairs will be physically present; (3) must be open to the public and shall be audible to the public at the location specified in the notice of the meeting as the location of the meeting at which the joint chairs will be physically present; and (4) must provide two-way audio communication between all members of the board attending the meeting during the entire meeting, and if the two-way audio communication link with any member attending the meeting is disrupted at any time, the meeting may not continue until the two-way audio communication link is reestablished. SECTION 4.02. The change in law made by this article applies in relation to a notice given on or after the effective date of this article of a meeting of the Legislative Budget Board.
ARTICLE 5. ENERGY AND WATER CONSERVATION BY STATE AGENCIES
SECTION 5.01. Chapter 447, Government Code, is amended by adding Sections 447.010 and 447.011 to read as follows: Sec. 447.010. FUEL SAVINGS FOR STATE AGENCIES. (a) In this section and in Section 447.011: (1) "Cost-effective" means resulting in fuel consumption reduction with a projected savings in fuel cost over a one-year period that exceeds the cost of purchasing and using a technology. (2) "Fuel-saving technology" means a: (A) device containing no lead metal that is installed on a motor vehicle or non-road diesel and that has been proven to reduce fuel consumption per mile or per hour of operation by at least five percent; (B) fuel additive registered in accordance with 40 C.F.R. Part 79 that contains no known mutagenic materials and that has been proven to reduce fuel consumption per mile or per hour of operation by at least five percent; or (C) fuel registered in accordance with 40 C.F.R. Part 79 that contains no known mutagenic materials and that has been proven to reduce fuel consumption per mile or per hour of operation by at least five percent. (3) "Motor vehicle" and "non-road diesel" have the meanings assigned by Section 386.101, Health and Safety Code. (4) "Proven fuel-saving technologies" means technologies shown to reduce fuel use by at least five percent in: (A) an Environmental Protection Agency fuel economy federal test protocol test performed at a laboratory recognized by the Environmental Protection Agency; (B) a fuel economy test performed in accordance with protocols and at testing laboratories or facilities recognized by the state energy conservation office, the Texas Commission on Environmental Quality, or the Environmental Protection Agency; or (C) a field demonstration performed in accordance with Section 447.011. (b) A state agency with 10 or more motor vehicles or non-road diesels shall reduce the total fuel consumption of the vehicles or diesels by at least five percent from fiscal year 2002 consumption levels through the use of cost-effective proven fuel-saving technologies. (c) A state agency may delay reducing fuel use as described in this section until a list of proven fuel-saving technologies is provided by the state energy conservation office as provided by Section 447.011. (d) A state agency may not purchase or use as a fuel-saving technology a technology that: (1) is known to increase oxides of nitrogen emissions or toxic air contaminants; (2) may be reasonably concluded to degrade air quality or human health or to negatively impact the environment; or (3) is known to affect negatively the manufacturer's warranty of a motor vehicle or a non-road diesel. (e) A state agency may purchase cost-effective proven fuel-saving technologies out of the agency's fuel budget. (f) A state agency shall competitively evaluate similar fuel-saving technologies. (g) A state agency may require a seller of a fuel-saving technology to refund the cost of the technology if it is determined to be ineffective at reducing fuel use by at least five percent before the 91st day after the date the technology is first used by the agency. (h) A state agency may use fuel-saving technologies that the agency determines are cost-effective and may use a fuel-saving technology in applications that provide other benefits, including emissions reductions. (i) A state agency may establish a program for agency employees to voluntarily: (1) purchase fuel-saving technologies; and (2) document reductions in fuel savings and air emissions. (j) A state agency shall annually report to the state energy conservation office on a form provided by the office on the state agency's efforts and progress under this section. (k) This section does not apply to an institution of higher education as defined by Section 61.003, Education Code. Sec. 447.011. FIELD DEMONSTRATIONS. (a) Under the direction of the state energy conservation office, the Texas Department of Transportation shall demonstrate the effectiveness of at least four fuel-saving technologies on a combined maximum of 100 motor vehicles or non-road diesels in accordance with this section to determine the fuel-saving technologies that may cost-effectively reduce fuel consumption and save state revenue. (b) The Texas Department of Transportation shall select varying ages and types of motor vehicles and non-road diesels to demonstrate the fuel-saving technologies and shall give a preference to high-use motor vehicles and non-road diesels in the selection. (c) The Texas Department of Transportation shall demonstrate the performance of fuel-saving technologies by: (1) assessing a technology's performance in the normal course of operations of motor vehicles or non-road diesels; and (2) performing controlled field tests. (d) In selecting the technologies to be evaluated, the state energy conservation office shall: (1) consult with governmental and business organizations that are currently using fuel-saving technology; (2) consider technologies that are proven fuel-saving technologies that have demonstrated fuel economy benefits of five percent or more in field tests or recorded use data of government organizations or businesses that operate fleets; and (3) determine whether each technology selected has the potential to be cost-effective. (e) A fuel-saving technology may be disqualified from being demonstrated or used if it is known to reduce engine performance, reduce the life of the engine, require additional maintenance expenses, or degrade air quality. (f) The Texas Commission on Environmental Quality, the Texas Transportation Institute, The University of Texas Center for Transportation Research, the University of Houston Diesel Emissions Center, or another agency may be designated to assist with executing the demonstration, compiling the results, estimating the potential average fuel savings of the technologies in different applications, or preparing a final report. (g) On completing the demonstration described by this section the state energy conservation office shall rank the fuel-saving technologies based on their fuel savings, other cost savings, and overall cost-effectiveness. The office shall: (1) list recommended applications of the technologies; (2) document other negative or positive effects; and (3) prepare a concise report of these findings. (h) The Texas Commission on Environmental Quality shall obtain information on any fuel-saving technology that appears to reduce particulate matter, oxides of nitrogen, carbon monoxide, or hydrocarbon emissions. The Texas Commission on Environmental Quality may use this information to fund the United States Environmental Protection Agency verification of a technology in accordance with Section 387.003, Health and Safety Code. (i) The state energy conservation office shall provide the report prepared under Subsection (g) to each state agency with 10 or more motor vehicles or non-road diesels and to the Legislative Budget Board. (j) The demonstration and associated reports described by this section shall be completed not later than January 1, 2005. (k) All results of a demonstration project under this section shall be made public on the state energy conservation office's Internet website. (l) The state energy conservation office shall provide quarterly an updated list of all proven fuel-saving technologies on its Internet website. (m) Money from the state highway fund may not be used for the purchase, installation, maintenance, or operation of the fuel-saving technologies being assessed or subjected to controlled field tests under this section. Repairs to state equipment resulting from demonstrations of fuel-saving technologies must be paid from the same funds used to implement this section. SECTION 5.02. Chapter 2113, Government Code, is amended by adding Subchapter E to read as follows:
SUBCHAPTER E. RESTRICTIONS ON CAPITAL EXPENDITURES
Sec. 2113.301. PREFERENCE FOR FINANCING CERTAIN CAPITAL EXPENDITURES WITH MONEY GENERATED BY UTILITY COST SAVINGS CONTRACT. (a) In this section: (1) "State facility purpose" means a purpose related to: (A) the maintenance of a state-owned or state-leased building or facility; or (B) a project as defined by Section 2166.001, including a project described by Section 2166.003. (2) "Utility cost savings contract" means a contract under Subchapter I, Chapter 2166, or other law that guarantees utility cost savings for energy conservation measures to reduce energy or water consumption or to reduce operating costs of governmental facilities. (b) Before a state agency may use appropriated money to make a capital expenditure for a state facility purpose, the state agency must determine whether the expenditure could be financed with money generated by a utility cost savings contract. (c) If it is practicable to do so, a state agency that is using appropriated money must finance a capital expenditure for a state facility purpose with money generated by a utility cost savings contract. (d) If it is not practicable for a state agency that is using appropriated money to finance a capital expenditure for a state facility purpose with money generated by a utility cost savings contract, the state agency must provide justification to the comptroller for the capital expenditure. (e) In determining under Subsection (b) whether a capital expenditure could be financed by a utility cost savings contract, a state agency must consider whether utility cost savings generated by any department of that agency could be a potential means of financing a capital expenditure for any department of that agency. Money generated by a utility cost savings in one department of a state agency may be used to finance capital expenditures for a state facility purpose in any department of that agency. (f) This section does not apply to an institution of higher education as defined by Section 61.003, Education Code. (g) This section does not apply to a capital expenditure for a state facility purpose that requires expeditious action to: (1) prevent a hazard to life, health, safety, welfare, or property; or (2) avoid undue additional cost to the state. (h) The Texas Building and Procurement Commission shall appoint a task force to develop design recommendations that are to be used for state facilities and that encourage rain harvesting and water recycling by state agencies using appropriated money to finance a capital expenditure for a state facility purpose.
ARTICLE 6. ADMINISTRATION OF CERTAIN LEGISLATIVE AGENCIES
SECTION 6.01. Section 321.002(e), Government Code, is amended to read as follows: (e) The lieutenant governor and the speaker are joint chairs of the committee. The committee shall elect [organize by electing] one member to serve as [chairman and one member to serve as] secretary. SECTION 6.02. Sections 321.018(b) and (c), Government Code, are amended to read as follows: (b) Each subpoena must be signed by either of the joint chairs of the committee [chairman] or the secretary of the committee. (c) On the request of either of the joint chairs of the committee [chairman] or the secretary of the committee, the sergeant at arms or an assistant sergeant at arms of either house of the legislature or any peace officer shall serve the subpoena in the manner prescribed for service of a district court subpoena. SECTION 6.03. Section 322.001(b), Government Code, is amended to read as follows: (b) The lieutenant governor [is the chairman of the board] and the speaker are joint chairs of the board [is the vice-chairman]. SECTION 6.04. Sections 322.003(a) and (b), Government Code, are amended to read as follows: (a) A majority of the members of the board from each house constitutes a quorum to transact business. If a quorum is present, the board may act on any matter that is within its jurisdiction by a majority vote. (b) The board shall meet as often as necessary to perform its duties. Meetings may be held at any time at the request [at the call] of either of the joint chairs of the board [chairman] or on written petition of a majority of the members of the board from each house. SECTION 6.05. Section 322.006, Government Code, is amended to read as follows: Sec. 322.006. APPROVAL OF EXPENSES. Before payment may be made on an item of expense for the board, one of the joint chairs of the board [chairman] must approve the expense. SECTION 6.06. Section 322.009, Government Code, is amended to read as follows: Sec. 322.009. INSPECTION COMMITTEES. Either of the joint chairs of the board [The chairman], with the approval of the board, may appoint a committee to visit, inspect, and report on any state institution, department, agency, officer, or employee. SECTION 6.07. Section 322.013(d), Government Code, is amended to read as follows: (d) For purposes of carrying out its duties, the board may administer oaths and issue subpoenas, signed by either of the joint chairs of the board [chairman or vice-chairman], to compel the attendance of witnesses and the production of books, records, and documents. A subpoena of the board shall be served by a peace officer in the manner in which district court subpoenas are served. On application of the board, a district court of Travis County shall compel compliance with a subpoena issued by the board in the same manner as for district court subpoenas. SECTION 6.08. Sections 322.001 through 322.014, Government Code, are designated as Subchapter A, Chapter 322, Government Code, and a heading to that subchapter is added to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 6.09. Subchapter A, Chapter 322, Government Code, as designated by this Act, is amended by adding Sections 322.015 through 322.018 to read as follows: Sec. 322.015. REVIEW OF INTERSCHOLASTIC COMPETITION. The board may periodically review and analyze the effectiveness and efficiency of the policies, management, fiscal affairs, and operations of an organization that is a component or part of a state agency or institution and that sanctions or conducts interscholastic competition. The board shall report the findings to the governor and the legislature. The legislature may consider the board's reports in connection with the legislative appropriations process. Sec. 322.016. PERFORMANCE REVIEW OF SCHOOL DISTRICTS. (a) The board may periodically review the effectiveness and efficiency of the operations of school districts, including the district's expenditures for its officers' and employees' travel services. A review of a school district may be initiated by the board at its discretion or on the request of the school district. A review may be initiated by a school district only by resolution adopted by a majority of the members of the board of trustees of the district. (b) If a review is initiated on the request of the school district, the district shall pay 25 percent of the cost incurred in conducting the review. (c) The board shall: (1) prepare a report showing the results of each review conducted under this section; (2) file the report with the school district, the governor, the lieutenant governor, the speaker of the house of representatives, the chairs of the standing committees of the senate and the house of representatives with jurisdiction over public education, and the commissioner of education; and (3) make the entire report and a summary of the report available to the public on the Internet. Sec. 322.0165. PERFORMANCE REVIEW OF INSTITUTIONS OF HIGHER EDUCATION. (a) In this section, "public junior college" and "general academic teaching institution" have the meanings assigned by Section 61.003, Education Code. (b) The board may periodically review the effectiveness and efficiency of the budgets and operations of: (1) public junior colleges; and (2) general academic teaching institutions. (c) A review under this section may be initiated by the board or at the request of: (1) the governor; or (2) the public junior college or general academic teaching institution. (d) A review may be initiated by a public junior college or general academic teaching institution only at the request of the president of the college or institution or by a resolution adopted by a majority of the governing body of the college or institution. (e) If a review is initiated by a public junior college or general academic teaching institution, the college or institution shall pay 25 percent of the cost incurred in conducting the review. (f) The board shall: (1) prepare a report showing the results of each review conducted under this section; (2) file the report with: (A) the chief executive officer of the public junior college or general academic teaching institution that is the subject of the report; and (B) the governor, the lieutenant governor, the speaker of the house of representatives, the chairs of the standing committees of the senate and of the house of representatives with primary jurisdiction over higher education, and the commissioner of higher education; and (3) make the entire report and a summary of the report available to the public on the Internet. Sec. 322.017. EFFICIENCY REVIEW OF STATE AGENCIES. (a) In this section, "state agency" has the meaning assigned by Section 2056.001. (b) The board periodically may review and analyze the effectiveness and efficiency of the policies, management, fiscal affairs, and operations of state agencies. (c) The board shall report the findings of the review and analysis to the governor and the legislature. (d) The legislature may consider the board's reports in connection with the legislative appropriations process. Sec. 322.018. RECORDS MANAGEMENT REVIEW. (a) In this section, "state agency" has the meaning assigned by Section 2056.001. (b) The board may periodically review and analyze the effectiveness and efficiency of the policies and management of a state governmental committee or state agency that is involved in: (1) analyzing and recommending improvements to the state's system of records management; and (2) preserving the essential records of this state, including records relating to financial management information. SECTION 6.10. Section 323.001(b), Government Code, as amended by Chapter 1328, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (b) The council consists of: (1) the lieutenant governor; (2) the speaker of the house of representatives; (3) the chairman of the house administration committee; (4) six [five] senators from various areas of the state appointed by the president of the senate; and (5) five [nine] other members of the house of representatives from various areas of the state appointed by the speaker. SECTION 6.11. Section 323.001(c), Government Code, is amended to read as follows: (c) The lieutenant governor and the speaker are joint chairs [is the chairman] of the council [and the speaker is the vice-chairman]. SECTION 6.12. Sections 323.003(a) and (b), Government Code, are amended to read as follows: (a) The council shall meet as often as necessary to perform its duties. Meetings may be held at any time at the request of either of the joint chairs of the council. (b) A majority of the [Twelve] members of the council from each house of the legislature constitutes [including the chairman and vice-chairman constitute] a quorum. If a quorum is present, the council may act on any matter that is within its jurisdiction by a majority vote. SECTION 6.13. Section 323.005(c), Government Code, is amended to read as follows: (c) The certificate of either of the joint chairs of the council [chairman or vice-chairman] is sufficient evidence of the validity of a claim. On certification, the comptroller shall issue warrants on the treasury to pay each claim for mileage and per diem expenses, salaries of employees, and other authorized expenses. SECTION 6.14. Sections 323.008(a)-(d), Government Code, are amended to read as follows: (a) If the council determines a need exists, either of the joint chairs [chairman] of the council may appoint statutory revision advisory committees to advise the council on matters relating to the revision of particular subjects of the law. (b) Advisory committees consist of seven members appointed by a joint chair [the chairman] of the council. Advisory committee members serve for a period of two years from the date of appointment. (c) In appointing an advisory committee, a joint chair [the chairman] shall include representatives of the: (1) State Bar of Texas; (2) judiciary; and (3) Texas law schools. (d) An advisory committee shall meet at the call of either of the joint chairs [chairman] of the council. SECTION 6.15. Section 323.011(b), Government Code, is amended to read as follows: (b) A subpoena must be signed by either of the joint chairs [chairman] of the council [or the vice-chairman]. SECTION 6.16. Section 323.012(b), Government Code, is amended to read as follows: (b) On the request of either of the joint chairs [chairman] of the council [or the vice-chairman], the attorney general shall render opinions and give advice and assistance to the council. SECTION 6.17. Sections 325.003(a), (d), and (j), Government Code, are amended to read as follows: (a) The Sunset Advisory Commission consists of five [four] members of the senate and one public member appointed by the lieutenant governor and five [four] members of the house of representatives and one public member appointed by the speaker of the house. Each appointing authority may designate himself as one of the legislative appointees. (d) Legislative members serve four-year terms, with terms staggered so that the terms of as near to one-half of the legislative members appointed by the lieutenant governor as possible and the terms of as near to one-half of the legislative members appointed by the speaker as possible expire September 1 of each odd-numbered year. If the lieutenant governor or the speaker serves on the commission, he continues to serve until resignation from the commission or until he ceases to hold the office. Public members serve two-year terms expiring September 1 of each odd-numbered year. (j) Seven [Six] members of the commission constitute a quorum. A final action or recommendation may not be made unless approved by a record vote of a majority of the commission's full membership. SECTION 6.18. The following laws are repealed: (1) Section 403.020, Government Code; (2) Section 403.0205, Government Code; (3) Section 403.022, Government Code; and (4) Section 403.024, Government Code. SECTION 6.19. (a) If, on the effective date of this article, more than five members of the house of representatives appointed under Section 323.001(b)(5), Government Code, as amended by this article, are serving as members of the Texas Legislative Council: (1) those members' terms on the council expire on the effective date of this article; and (2) the speaker of the house of representatives, as soon as possible on or after the effective date of this article, shall appoint five members of the house to serve as members of the Texas Legislative Council under Section 323.001(b)(5), Government Code, as amended by this article. (b) The lieutenant governor, as soon as possible on or after the effective date of this article, shall appoint an additional senator to serve as a member of the Texas Legislative Council under Section 323.001(b)(4), Government Code, as amended by this article. SECTION 6.20. The lieutenant governor and the speaker of the house of representatives, as soon as possible on or after the effective date of the section of this article that amends Section 325.003, Government Code, shall appoint a member of the senate or the house of representatives, respectively, to serve initial terms on the Sunset Advisory Commission under Section 325.003, Government Code, as amended by this article, expiring September 1, 2005. SECTION 6.21. On the effective date of this article: (1) all records and other property of the comptroller of public accounts that relate to a review of interscholastic competition, a performance review of school districts, an efficiency review of a state agency, or a records management review are transferred to the Legislative Budget Board; (2) all unexpended and unobligated appropriations of the comptroller of public accounts relating to the comptroller's review of interscholastic competition, performance review of school districts, efficiency review of a state agency, or records management review are transferred to the Legislative Budget Board; (3) all employees of the comptroller of public accounts whose primary functions relate to the review of interscholastic competition, performance review of school districts, efficiency review of state agencies, or records management review become employees of the Legislative Budget Board; and (4) any reference in law to the comptroller of public accounts that relates to the review of interscholastic competition, performance review of school districts, efficiency review of state agencies, or records management review means the Legislative Budget Board. SECTION 6.22. The section of this article that amends Section 325.003, Government Code, takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, that section takes effect on the 91st day after the last day of the legislative session.
ARTICLE 7. REPORTS AND ASSESSMENTS REGARDING CERTAIN
ENVIRONMENTAL ISSUES
SECTION 7.01. Section 363.064(a), Health and Safety Code, is amended to read as follows: (a) A regional or local solid waste management plan must: (1) include a description and an assessment of current efforts in the geographic area covered by the plan to minimize production of municipal solid waste, including sludge, and efforts to reuse or recycle waste; (2) identify additional opportunities for waste minimization and waste reuse or recycling; (3) include a description and assessment of existing or proposed community programs for the collection of household hazardous waste; (4) make recommendations for encouraging and achieving a greater degree of waste minimization and waste reuse or recycling in the geographic area covered by the plan; (5) encourage cooperative efforts between local governments in the siting of landfills for the disposal of solid waste; (6) consider the need to transport waste between municipalities, from a municipality to an area in the jurisdiction of a county, or between counties, particularly if a technically suitable site for a landfill does not exist in a particular area; (7) allow a local government to justify the need for a landfill in its jurisdiction to dispose of the solid waste generated in the jurisdiction of another local government that does not have a technically suitable site for a landfill in its jurisdiction; (8) establish recycling rate goals appropriate to the area covered by the plan; (9) recommend composting programs for yard waste and related organic wastes that may include: (A) creation and use of community composting centers; (B) adoption of the "Don't Bag It" program for lawn clippings developed by the Texas Agricultural Extension Service; and (C) development and promotion of education programs on home composting, community composting, and the separation of yard waste for use as mulch; (10) include an inventory of municipal solid waste landfill units, including: (A) landfill units no longer in operation; (B) the exact boundaries of each former landfill unit or, if the exact boundaries are not known, the best approximation of each unit's boundaries; (C) a map showing the approximate boundaries of each former landfill unit, if the exact boundaries are not known; (D) the current owners of the land on which the former landfill units were located; and (E) the current use of the land; (11) assess the need for new waste disposal capacity; and (12) include a public education program[; and [(13) include waste reduction in accordance with the goal established under Section 361.0201(d), to the extent that funds are available]. SECTION 7.02. The heading to Section 5.178, Water Code, is amended to read as follows: Sec. 5.178. ANNUAL REPORTS; BIENNIAL APPENDICES [APPENDIXES]. SECTION 7.03. Section 5.178(b), Water Code, is amended to read as follows: (b) The report due by December 1 of an even-numbered year shall include, in addition: (1) the commission's recommendations for necessary and desirable legislation; and (2) the following reports: (A) the assessments and reports required by Section [Sections] 361.0219(c)[, 361.0232, 361.510, 371.063, and 382.141], Health and Safety Code; (B) the reports required by Section 26.0135(d) [of this code] and Section 5.02, Chapter 133, Acts of the 69th Legislature, Regular Session, 1985; and (C) a summary of the analyses and assessments required by Section 5.1773 [of this code]. SECTION 7.04. (a) Sections 361.020, 361.0201, 361.0232, 361.0233, 361.0234, 361.040(d), 361.0871(c), 361.510, 371.063, and 382.141, Health and Safety Code, are repealed. (b) Section 5.178(c), Water Code, is repealed.
ARTICLE 8. PERMITS OF THE TEXAS COMMISSION ON ENVIRONMENTAL
QUALITY
SECTION 8.01. (a) It is the policy of this state to be effective and efficient with public funds, to provide for effective and efficient management of natural resources, and to serve the people of Texas by making the government more visible, accessible, coherent, consistent, and accountable to the people of Texas. The legislature finds that the Texas Commission on Environmental Quality's procedures for processing permits is cumbersome, confusing, lengthy, and inefficient for citizens, business, political subdivisions, and the commission. (b) The Texas Commission on Environmental Quality's permitting processes warrant, and the legislature directs, an in-depth evaluation, including the identification of problems, potential options, and solutions. The evaluation must solicit and consider input from all stakeholders, including public hearings and the opportunity for submission of written and oral comments. The solutions identified in the final assessment of the commission's permitting processes must ensure that: (1) all relevant environmental protection standards are maintained at a level that at least equals the current level; (2) the commission's permitting processes are streamlined; (3) the commission's permitting processes are user-friendly to citizens and promote sound economic development; and (4) all stakeholder concerns are considered. (c) A seven-member study committee shall conduct the evaluation and final assessment required by Subsection (b) of this section and submit its findings not later than December 1, 2004, to the governor, the lieutenant governor, the speaker of the house of representatives, the Texas Commission on Environmental Quality, and the chair of the standing committee of each house of the legislature with primary jurisdiction over environmental issues. The study committee shall consist of: (1) three appointees of the lieutenant governor; (2) three appointees of the speaker of the house of representatives; and (3) one public member appointed by the governor. (d) It is the intent of the legislature to effectuate the appropriate solutions through legislation at the earliest opportunity subsequent to receipt of the study committee's final assessment. (e) The study committee shall also consider permits for grease trap waste facilities authorized by Chapter 596, Acts of the 78th Legislature, Regular Session, 2003. SECTION 8.02. Section 2, Chapter 596, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: Sec. 2. (a) The Texas Commission on Environmental Quality shall: (1) not later than December [November] 1, 2003: (A) adopt any rules necessary for the implementation of this Act; and (B) notify any person known by the commission to be engaged in the business of composting grease trap waste to submit an application for a permit under Section 361.428(d), Health and Safety Code, as added by this Act; and (2) not later than September 1, 2005 [January 1, 2004], begin issuing permits for the commercial composting of grease trap waste under Sections 361.428(d) and (e), Health and Safety Code, as added by this Act. (b) This Act does not prohibit a person who is engaged in the business of composting grease trap waste on the effective date of this Act from continuing to engage in that business if [the person]: (1) the person submits an application for a permit under Section 361.428(d), Health and Safety Code, as added by this Act, not later than the 30th day after receiving notice from the Texas Commission on Environmental Quality under Subsection (a)(1)(B) of this section; and (2) [receives the permit from] the commission has declared the application administratively complete on or before June 1, 2004. (c) This section does not prohibit the commission from denying a permit application previously declared administratively complete. (d) If the commission denies a permit application under this section, the applicant shall cease the operations for which the applicant applied for a permit. SECTION 8.03. The adoption of rules by the Texas Commission on Environmental Quality under Section 26.040, Water Code, before the effective date of this Act is authorized. A rule adopted by the commission under that section before that date remains in effect and may be amended or repealed by the commission.
ARTICLE 9. OVERSIGHT OF REGIONAL PLANNING COMMISSIONS
SECTION 9.01. The heading to Section 391.009, Local Government Code, is amended to read as follows: Sec. 391.009. ROLE OF STATE AUDITOR, GOVERNOR, AND STATE AGENCIES. SECTION 9.02. Section 391.009, Local Government Code, is amended by amending Subsection (a) and adding Subsections (a-1) and (a-2) to read as follows: (a) To protect the public interest and [or] promote the efficient use of public funds, the governor, with the technical assistance of the state auditor, may draft and [shall] adopt: (1) rules relating to the operation and oversight of a commission; (2) rules relating to the receipt or expenditure of funds by a commission, including: (A) restrictions on the expenditure of any portion of commission funds for certain classes of expenses; and (B) restrictions on the maximum amount of or percentage of commission funds that may be expended on a class of expenses, including indirect costs or travel expenses; (3) annual reporting requirements for a commission; (4) annual audit requirements on funds received or expended by a commission from any source; (5) rules relating to the establishment and use of standards by which the productivity and performance of each commission can be evaluated; and (6) guidelines that commissions and governmental units shall follow in carrying out the provisions of this chapter relating to review and comment procedures. (a-1) The governor may draft and adopt rules under Subsection (a) using negotiated rulemaking procedures under Chapter 2008, Government Code. (a-2) Based on a risk assessment performed by the state auditor and subject to the legislative audit committee's approval for inclusion in the audit plan under Section 321.013, Government Code, the state auditor's office shall assist the governor as provided by Subsection (a). SECTION 9.03. Section 391.0095, Local Government Code, as amended by Chapter 785, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: Sec. 391.0095. AUDIT AND REPORTING REQUIREMENTS. (a) The audit and reporting requirements under Section 391.009(a) shall include a requirement that a commission annually report to the state auditor [governor]: (1) the amount and source of funds received by the commission; (2) the amount and source of funds expended by the commission; (3) an explanation of any method used by the commission to compute an expense of the commission, including computation of any indirect cost of the commission; (4) a report of the commission's productivity and performance during the annual reporting period; (5) a projection of the commission's productivity and performance during the next annual reporting period; (6) the results of an audit of the commission's affairs prepared by an independent certified public accountant; and (7) a report of any assets disposed of by the commission. (b) The annual audit of a commission may be commissioned [by the governor's office or] by the commission or at the direction of the governor's office, as determined by the governor's office, and shall be paid for from the commission's funds. (c) A commission shall submit any other report or an audit to the state auditor and [required by] the governor. (d) If a commission fails to submit a report or audit required under this section or is determined by the state auditor [governor] to have failed to comply with a rule, requirement, or guideline adopted under Section 391.009, the state auditor shall report the failure to the governor's office. The governor may, until the failure is corrected: (1) appoint a receiver to operate or oversee the commission; or (2) withhold any appropriated funds of the commission. (e) A commission shall send to the governor, the state auditor, the comptroller, and the Legislative Budget Board a copy of each report and audit required under this section or under Section 391.009. The state auditor may review each audit and report, subject to a risk assessment performed by the state auditor and to the legislative audit committee's approval of including the review in the audit plan under Section 321.013, Government Code. If the state auditor reviews the audit or report, the state auditor must be given access to working papers and other supporting documentation that the state auditor determines is necessary to perform the review. If the state auditor finds significant issues involving the administration or operation of a commission or its programs, the state auditor shall report its findings and related recommendations to the legislative audit committee, the governor, and the commission. The governor and the legislative audit committee may direct the commission to prepare a corrective action plan or other response to the state auditor's findings or recommendations. The legislative audit committee may direct the state auditor to perform any additional audit or investigative work that the committee determines is necessary. SECTION 9.04. Section 391.0117(e), Local Government Code, is amended to read as follows: (e) A commission shall submit to the state auditor [governor] the commission's salary schedule, including the salaries of all exempt positions, not later than the 45th day before the date of the beginning of the commission's fiscal year. If the state auditor, subject to the legislative audit committee's approval for inclusion in the audit plan under Section 321.013, Government Code, has recommendations to improve [governor objects to] a commission's salary schedule or a portion of the schedule, the state auditor shall report the recommendations to the governor's office. The governor's office may not allow the portion of the schedule for which [that] the state auditor has recommendations to [governor objects to may not] go into effect until revisions or explanations are given that are satisfactory to the governor based on recommendations from the state auditor [and the governor approves that portion of the schedule]. SECTION 9.05. On the effective date of this article, a rule, requirement, or guideline adopted by the governor relating to the oversight of regional planning commissions remains in effect until amended or repealed by the governor.
ARTICLE 10. COMMISSIONER OF INSURANCE
SECTION 10.01. Section 31.023, Insurance Code, is amended to read as follows: Sec. 31.023. QUALIFICATIONS. The commissioner must: (1) be a competent and experienced administrator; (2) be well informed and qualified in the field of insurance and insurance regulation; and (3) have at least five [10] years of experience [as an executive] in the administration of business or government or as a practicing attorney or certified public accountant[, with at least five years of that experience in the field of insurance or insurance regulation]. SECTION 10.02. (a) The commissioner of the Texas Department of Insurance shall compile information relating to the insurers writing medical professional liability insurance in this state, including information relating to: (1) insurers newly writing medical professional liability insurance in this state on and after September 13, 2003; and (2) medical professional liability insurance rates for physicians and other health care providers, including which insurers have changed their rates on or after September 13, 2003. (b) The commissioner shall report on a quarterly basis to the governor, the lieutenant governor, the speaker of the house of representatives, and each member of the legislature on the information obtained under this section. Such reports shall be made no later than the fifth day of November, February, May, and August. (c) This section expires January 1, 2005. SECTION 10.03. The change in law made by this article to Section 31.023, Insurance Code, applies only to the appointment of the commissioner of insurance on or after the effective date of this article. A commissioner of insurance appointed before the effective date of this article is governed by the law as it existed immediately before that date, and that law is continued in effect for that purpose. SECTION 10.04. Subchapter B, Chapter 31, Insurance Code, is amended by adding Section 31.028 to read as follows: Sec. 31.028. TRAINING PROGRAM FOR COMMISSIONER. (a) Not later than the 90th day after the date on which the commissioner takes office, the commissioner shall complete a training program that complies with this section. (b) The training program must provide the commissioner with information regarding: (1) the legislation that created the department; (2) the programs operated by the department; (3) the role and functions of the department; (4) the rules of the department, with an emphasis on the rules that relate to disciplinary and investigatory authority; (5) the current budget for the department; (6) the results of the most recent formal audit of the department; (7) the requirements of: (A) the open meetings law, Chapter 551, Government Code; (B) the public information law, Chapter 552, Government Code; (C) the administrative procedure law, Chapter 2001, Government Code; and (D) other laws relating to public officials, including conflict of interest laws; and (8) any applicable ethics policies adopted by the department or the Texas Ethics Commission. SECTION 10.05. The change in law made by this Act by the addition of Section 31.028, Insurance Code, applies only to the appointment of the commissioner of insurance on or after the effective date of this Act. A commissioner of insurance appointed before the effective date of this Act is governed by the law as it existed immediately before that date, and that law is continued in effect for that purpose.
ARTICLE 11. PARDONS AND PAROLES
SECTION 11.01. Section 492.0131, Government Code, is amended to read as follows: Sec. 492.0131. PAROLE RULES, POLICIES, PROCEDURES. The board and the presiding officer of the Board of Pardons and Paroles [Policy Board] shall jointly review all rules, policies, and procedures of the department and the Board of Pardons and Paroles that relate to or affect the operation of the parole process. The board and the presiding officer of the Board of Pardons and Paroles [policy board] shall identify areas of inconsistency between the department and the Board of Pardons and Paroles and shall amend rules or change policies and procedures as necessary for consistent operation of the parole process. SECTION 11.02. Section 508.001, Government Code, is amended by amending Subdivision (8) and adding Subdivision (10) to read as follows: (8) "Parole commissioner" means a person employed by the board to perform the duties described by Section 508.0441 ["Policy board" means the Board of Pardons and Paroles Policy Board]. (10) "Presiding officer" means the presiding officer of the Board of Pardons and Paroles. SECTION 11.03. Section 508.031(a), Government Code, is amended to read as follows: (a) The board consists of seven [18] members appointed by the governor with the advice and consent of the senate. SECTION 11.04. Section 508.032, Government Code, is amended by adding Subsections (c)-(e) to read as follows: (c)(1) A person who is a former employee of the department may not serve on the board before the second anniversary of the date the person terminated employment with the department. (2) A person who is employed by the department on August 1, 2003, may not serve on the board before August 1, 2005. (d) At any time not more than three members of the board may be former employees of the department. (e) For purposes of Subsections (c) and (d), previous service as a board member is not considered to be employment with the department. SECTION 11.05. Section 508.034, Government Code, is amended to read as follows: Sec. 508.034. GROUNDS FOR REMOVAL. (a) It is a ground for removal from the board that a member: (1) does not have at the time of taking office the qualification required by Section 508.032(b) for appointment to the board; (2) is ineligible for membership under Section 508.033; (3) is unable to discharge the member's duties for a substantial part of the term for which the member is appointed because of illness or disability; or (4) is absent from more than half of the regularly scheduled board or panel meetings that the member is eligible to attend during each calendar year[, except when the absence is excused by majority vote of the board]. (b) [It is a ground for removal from the board and the policy board if a member of the policy board is absent from more than half of the regularly scheduled policy board meetings that the member is eligible to attend during each calendar year. [(c)] The board administrator or the board administrator's designee shall provide to members of the board[, to members of the policy board,] and to employees, as often as necessary, information regarding their qualification for office or employment under this chapter and their responsibilities under applicable laws relating to standards of conduct for state officers or employees. (c) [(d)] The validity of an action of[: [(1)] the board or panel is not affected by the fact that the action is taken when a ground for removal of a board member exists[; and [(2) the policy board is not affected by the fact that the action is taken when a ground for removal of a member of the policy board exists]. (d) [(e)] If the general counsel to the board has knowledge that a potential ground for removal exists, the general counsel shall notify the presiding officer of the board of the potential ground. The presiding officer shall notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal involves the presiding officer, the general counsel to the board shall notify the governor and the attorney general that a potential ground for removal exists. (e) [(f)] It is a ground for removal from the board that a member fails to comply with policies or rules adopted by the [policy] board. SECTION 11.06. Section 508.035, Government Code, is amended by amending Subsection (c) and adding Subsection (d) to read as follows: (c) The presiding officer reports directly to the governor and serves as the administrative head of the [policy board and the] board. (d) The presiding officer may: (1) delegate responsibilities and authority to other members of the board, parole commissioners, or to employees of the board; (2) appoint advisory committees from the membership of the board or from parole commissioners to further the efficient administration of board business; and (3) establish policies and procedures to further the efficient administration of the business of the board. SECTION 11.07. Section 508.036, Government Code, as amended by Section 31.01, Chapter 1170, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: Sec. 508.036. [POLICY BOARD: COMPOSITION;] GENERAL ADMINISTRATIVE DUTIES. (a) The presiding officer [governor shall designate seven members of the board to serve as the Board of Pardons and Paroles Policy Board. The governor shall designate the presiding officer of the board as one of the seven members of the policy board, and the presiding officer of the board shall serve as presiding officer of the policy board. Service on the policy board is an additional duty of office for members appointed to the policy board. [(b) Members of the board designated as members of the policy board serve on the policy board for six-year terms that are concurrent with their six-year terms on the board, with the service of two or three members expiring February 1 of each odd-numbered year. [(c) The policy board] shall: (1) develop and implement policies that clearly separate the policy-making responsibilities of the board and the management responsibilities of the board administrator, parole commissioners, and the staff of the board [adopt rules relating to the decision-making processes used by the board and parole panels]; (2) establish caseloads and required work hours for members of the board and parole commissioners [assign duties to members of the policy board that are in addition to the duties those members have in handling a caseload]; (3) update parole guidelines, assign precedential value to previous decisions of the board relating to the granting of parole and the revocation of parole or mandatory supervision, and develop policies to ensure that members of the board and parole commissioners use guidelines and previous decisions of the board and parole commissioners in making decisions under this chapter; (4) require members of the board and parole commissioners to file activity reports[, on forms provided by the policy board,] that provide information on release decisions made by members of the board and parole commissioners, the workload and hours worked of the members of the board and parole commissioners, and the use of parole guidelines by members of the board and parole commissioners; and (5) report at least annually to the governor and the legislature on the [board] activities of the board and parole commissioners, parole release decisions, and the use of parole guidelines by the board and parole commissioners. (b) The board shall: (1) adopt rules relating to the decision-making processes used by the board and parole panels; (2) prepare information of public interest describing the functions of the board and make the information available to the public and appropriate state agencies; (3) comply with federal and state laws related to program and facility accessibility; and (4) prepare annually a complete and detailed written report that meets the reporting requirements applicable to financial reporting provided in the General Appropriations Act and accounts for all funds received and disbursed by the board during the preceding fiscal year. (c) The board administrator shall prepare and maintain a written plan that describes how a person who does not speak English can be provided reasonable access to the board's programs and services. (d) The board, in performing its duties, is subject to the open meetings law, Chapter 551, and the administrative procedure law, Chapter 2001. This subsection does not affect the provisions of Section 2001.223 exempting hearings and interviews conducted by the board or the division from Section 2001.038 and Subchapters C-H, Chapter 2001. SECTION 11.08. Section 508.0362, Government Code, is amended to read as follows: Sec. 508.0362. TRAINING REQUIRED. (a)(1) A person who is appointed to and qualifies for office as a member of the board [or the policy board] may not vote, deliberate, or be counted as a member in attendance at a meeting of the board [or policy board] until the person completes at least one course of a training program that complies with this section. (2) A parole commissioner employed by the board may not vote or deliberate on a matter described by Section 508.0441 until the person completes at least one course of a training program that complies with this section. (b) A training program must provide information to the person regarding: (1) the enabling legislation that created the board [and the policy board]; (2) the programs operated by the board; (3) the role and functions of the board and parole commissioners; (4) the rules of the board; (5) the current budget for the board; (6) the results of the most recent formal audit of the board; (7) the requirements of the: (A) open meetings law, Chapter 551; (B) open records law, Chapter 552; and (C) administrative procedure law, Chapter 2001; (8) the requirements of the conflict of interest laws and other laws relating to public officials; and (9) any applicable ethics policies adopted by the [policy] board or the Texas Ethics Commission. (c) A person appointed to the board [or policy board] is entitled to reimbursement, as provided by the General Appropriations Act, for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office. SECTION 11.09. Section 508.040(a), Government Code, is amended to read as follows: (a) The presiding officer is responsible for the employment and supervision of [policy board shall employ and supervise]: (1) parole commissioners; (2) a general counsel to the board; (3) [(2)] a board administrator to manage the day-to-day activities of the board; (4) [(3)] hearing officers; (5) [(4)] personnel to assist in clemency and hearing matters; and (6) [(5)] secretarial or clerical personnel. SECTION 11.10. Section 508.041, Government Code, is amended to read as follows: Sec. 508.041. DESIGNEE TRAINING; HANDBOOK. (a) The [policy] board shall develop and implement: (1) a training program that each newly hired employee of the board designated to conduct hearings under Section 508.281 must complete before conducting a hearing without the assistance of a board member or experienced parole commissioner or designee; and (2) a training program to provide an annual update to designees of the board on issues and procedures relating to the revocation process. (b) The [policy] board shall prepare and biennially update a procedural manual to be used by designees of the board. The [policy] board shall include in the manual: (1) descriptions of decisions in previous hearings determined by the [policy] board to have value as precedents for decisions in subsequent hearings; (2) laws and court decisions relevant to decision making in hearings; and (3) case studies useful in decision making in hearings. (c) The [policy] board shall prepare and update as necessary a handbook to be made available to participants in hearings under Section 508.281, such as defense attorneys, persons released on parole or mandatory supervision, and witnesses. The handbook must describe in plain language the procedures used in a hearing under Section 508.281. SECTION 11.11. Section 508.042, Government Code, is amended to read as follows: Sec. 508.042. TRAINING PROGRAM FOR MEMBERS AND PAROLE COMMISSIONERS. (a) The [policy] board shall develop for board members and parole commissioners a comprehensive training and education program on the criminal justice system, with special emphasis on the parole process. (b)(1) A new member may not participate in a vote of the board or a panel, deliberate, or be counted as a member in attendance at a meeting of the board [or policy board] until the member completes the program. (2) A new parole commissioner may not participate in a vote of a panel until the commissioner completes the program. This subdivision does not apply to a new parole commissioner who as a board member completed the program. SECTION 11.12. Subchapter B, Chapter 508, Government Code, is amended by amending Section 508.044 and adding Section 508.0441 to read as follows: Sec. 508.044. POWERS AND DUTIES OF BOARD. [(a)] A board member shall give full time to the duties of the member's office, including[. [(b) In addition to performing the] duties imposed on the board by the Texas Constitution and other law. Sec. 508.0441. RELEASE AND REVOCATION DUTIES. (a) Board[, board] members and parole commissioners shall determine: (1) which inmates are to be released on parole or mandatory supervision; (2) conditions of parole or mandatory supervision, including special conditions; (3) the modification and withdrawal of conditions of parole or mandatory supervision; (4) which releasees may be released from supervision and reporting; and (5) the continuation, modification, and revocation of parole or mandatory supervision. (b) [(c)] The [policy] board shall develop and implement a policy that clearly defines circumstances under which a board member or parole commissioner should disqualify himself or herself from voting on: (1) a parole decision; or (2) a decision to revoke parole or mandatory supervision. (c) [(d)] The [policy] board may adopt reasonable rules as [the policy board considers] proper or necessary relating to: (1) the eligibility of an inmate for release on parole or release to mandatory supervision; (2) the conduct of a parole or mandatory supervision hearing; or (3) conditions to be imposed on a releasee. (d) [(e)] The presiding officer [policy board] may provide a written plan for the administrative review of actions taken by a parole panel by a review panel [the entire membership or by a subset of the entire membership of the board]. (e) [(f)] Board members and parole commissioners shall, at the direction of the presiding officer, file activity reports on duties performed under this chapter. SECTION 11.13. Section 508.045, Government Code, is amended to read as follows: Sec. 508.045. PAROLE PANELS. (a) Except as provided by Section 508.046, board members and parole commissioners shall act in panels composed of three [persons each] in matters of: (1) release on parole; (2) release to mandatory supervision; and (3) revocation of parole or mandatory supervision. (b) The presiding officer [of the board] shall designate the composition of each panel and shall designate panels composed of at least one board member and any combination of board members and parole commissioners. (c) A parole panel may: (1) grant, deny, or revoke parole; (2) revoke mandatory supervision; and (3) conduct parole revocation hearings and mandatory supervision revocation hearings. SECTION 11.14. Section 508.047(a), Government Code, is amended to read as follows: (a) The members of the [policy] board shall meet at least once in each quarter of the calendar year at a site determined by the presiding officer. SECTION 11.15. Section 508.049, Government Code, is amended to read as follows: Sec. 508.049. MISSION STATEMENT. (a) The [policy] board, after consultation with the governor and the Texas Board of Criminal Justice, shall adopt a mission statement that reflects the responsibilities for the operation of the parole process that are assigned to the [policy board, the] board, the division, the department, or the Texas Board of Criminal Justice. (b) The [policy] board shall include in the mission statement a description of specific locations at which the board intends to conduct business related to the operation of the parole process. SECTION 11.16. Section 508.082, Government Code, is amended to read as follows: Sec. 508.082. RULES. The [policy] board shall adopt rules relating to: (1) the submission and presentation of information and arguments to the board, a parole panel, and the department for and in behalf of an inmate; and (2) the time, place, and manner of contact between a person representing an inmate and: (A) a member of the board or a parole commissioner; (B) an employee of the board; or (C) an employee of the department. SECTION 11.17. Section 508.141(g), Government Code, as added by Chapter 349, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (g) The [policy] board shall adopt a policy establishing the date on which the board may reconsider for release an inmate who has previously been denied release. The policy must require the board to reconsider for release an inmate serving a sentence for an offense listed in Section 508.149(a) during a month designated by the parole panel that denied release. The designated month must begin after the first anniversary of the date of the denial and end before the fifth anniversary of the date of the denial. The policy must require the board to reconsider for release an inmate other than an inmate serving a sentence for an offense listed in Section 508.149(a) as soon as practicable after the first anniversary of the date of the denial. SECTION 11.18. Section 508.144(b), Government Code, is amended to read as follows: (b) If a board member or parole commissioner deviates from the parole guidelines in voting on a parole decision, the member or parole commissioner shall: (1) produce a brief written statement describing the circumstances regarding the departure from the guidelines; and (2) place a copy of the statement in the file of the inmate for whom the parole decision was made. SECTION 11.19. Section 508.153(b), Government Code, is amended to read as follows: (b) If more than one person is entitled to appear in person before the board members or parole commissioners, only the person chosen by all persons entitled to appear as the persons' sole representative may appear [before the board members]. SECTION 11.20. Section 508.281(a), Government Code, is amended to read as follows: (a) A releasee, a person released although ineligible for release, or a person granted a conditional pardon is entitled to a hearing before a parole panel or a designated agent of the board under the rules adopted by the [policy] board and within a period that permits a parole panel, a designee of the board, or the department to dispose of the charges within the periods established by Sections 508.282(a) and (b) if the releasee or person: (1) is accused of a violation of the releasee's parole or mandatory supervision or the person's conditional pardon, on information and complaint by a peace officer or parole officer; or (2) is arrested after an ineligible release. SECTION 11.21. Section 508.313(c), Government Code, as amended by Section 3, Chapter 6, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (c) The department, on request or in the normal course of official business, shall provide information that is confidential and privileged under Subsection (a) to: (1) the governor; (2) a member of the board or a parole commissioner; (3) the Criminal Justice Policy Council in performing duties of the council under Section 413.017; or (4) an eligible entity requesting information for a law enforcement, prosecutorial, correctional, clemency, or treatment purpose. SECTION 11.22. (a) Section 508.0361, Government Code, is repealed. (b) Section 31.02, Chapter 1170, Acts of the 78th Legislature, Regular Session, 2003, is repealed. SECTION 11.23. (a) The governor shall appoint new members to the Board of Pardons and Paroles on or before February 1, 2004, and the terms of members serving on January 31, 2004, expire on the appointment of the new members. The governor may, but is not required to, appoint as new members persons who served on the board before February 1, 2004. (b) Of the new members of the Board of Pardons and Paroles, the governor shall appoint two to serve terms expiring February 1, 2005, two to serve terms expiring February 1, 2007, and three to serve terms expiring February 1, 2009. On the expiration of the terms of the initial members of the new board, the term of a member appointed by the governor is six years. (c) On the effective date of this article, a rule of the Board of Pardons and Paroles Policy Board is a rule of the Board of Pardons and Paroles. SECTION 11.24. It is the intent of the legislature that members serving on the Board of Pardons and Paroles on May 1, 2003, be offered the first opportunity to be hired as parole commissioners employed under Chapter 508, Government Code, as amended by this article.
ARTICLE 12. MEMBERS OF TEXAS VETERANS COMMISSION
SECTION 12.01. Section 434.003(c), Government Code, is amended to read as follows: (c) A person having a less than honorable discharge from military service is not eligible to be a member. No two members may reside in the same senatorial district[, and not more than one member may be from a senatorial district composed of a single county].
ARTICLE 13. TRANSFER AND USE OF CERTAIN REAL PROPERTY
SECTION 13.01. Section 4, Chapter 38, General Laws, Acts of the 35th Legislature, Regular Session, 1917, is amended to read as follows: Sec. 4: If any portion greater than one acre of said property be used by said city for any purpose except public park and recreational purposes and purposes incident thereto, title to said property shall revert to the State of Texas free from all claims of said city of Austin. Sections 253.001(b) and (d), Local Government Code, Chapter 272, Local Government Code, Chapter 26, Parks and Wildlife Code, any similar charter provision of said city, and any use restriction imposed by this Act do not apply to the sale, conveyance, or lease of a portion of said property to an owner of an interest in adjoining property if the portion of said property is less than one acre. A lease, sale, or conveyance of any interest in land described by Section 1 or 2 of this Act shall be submitted to the commissioner of the General Land Office for review and comment before the completion of the transaction. If more than one portion of said property is used for a purpose other than a purpose described by Section 2 of this Act, the aggregate of those portions of said property may not exceed one acre.
ARTICLE 14. CERTAIN GOVERNMENTAL CONTRACTS TO BE PERFORMED
IN NONATTAINMENT AREAS FOR NATIONAL AMBIENT AIR QUALITY STANDARDS
SECTION 14.01. Section 2155.451(a), Government Code, as added by Section 19, Chapter 1331, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (a) This section applies only to a contract to be performed, wholly or partly, in a nonattainment area or in an affected county, as those terms are [that term is] defined by Section 386.001, Health and Safety Code. SECTION 14.02. Section 271.907(b), Local Government Code, as added by Section 20, Chapter 1331, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (b) This section applies only to a contract to be performed, wholly or partly, in a nonattainment area or in an affected county, as those terms are [that term is] defined by Section 386.001, Health and Safety Code. SECTION 14.03. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect on the 91st day after the last day of the legislative session.
ARTICLE 15. TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM ASSETS
SECTION 15.01. Section 845.301(a), Government Code, as amended by Chapter 1103, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (a) The assets of the retirement system shall be invested and reinvested without distinction as to their source in accordance with Section 67, Article XVI, Texas Constitution. For purposes of the investment authority of the board of trustees under Section 67, Article XVI, Texas Constitution, "securities" means any investment instrument within the meaning of the term as defined by Section 4, The Securities Act (Article 581-4, Vernon's Texas Civil Statutes), 15 U.S.C. Section 77b(a)(1), or 15 U.S.C. Section 78c(a)(10). Investment decisions are subject to the standard provided in the Texas Trust Code by Section 117.004(b) [Sections 117.004(a)-(c)], Property Code.
ARTICLE 16. PARTICIPATION OF CERTAIN GOVERNMENTAL EMPLOYEES
AND RETIREES IN CERTAIN GROUP BENEFIT PLANS
SECTION 16.01. Section 1551.102, Insurance Code, is amended by adding Subsection (i) to read as follows: (i) Subject to Section 1551.323, an individual and the individual's dependents are eligible to participate in the group benefits program as an annuitant and the dependents of an annuitant if the individual: (1) served in a position for which the individual was eligible to participate in the group benefits program under Section 1551.101 on or before August 31, 2003; and (2) at the time of retirement meets the requirements for eligibility for participation in the program as an annuitant as those requirements existed on August 31, 2003. SECTION 16.02. Section 1551.111, Insurance Code, is amended by adding Subsection (e) to read as follows: (e) Subject to Section 1551.323, an individual and the individual's dependents are eligible to participate in the group benefits program as an annuitant and the dependents of an annuitant as described under this section if the individual: (1) served as an officer or employee as described by Subsection (b)(1) on or before August 31, 2003; and (2) at the time of retirement meets the requirements for eligibility for participation in the program as an annuitant as those requirements existed on August 31, 2003. SECTION 16.03. Section 1551.112, Insurance Code, is amended by adding Subsection (c) to read as follows: (c) Subject to Section 1551.323, an individual and the individual's dependents are eligible to participate in the group benefits program as an annuitant and the dependents of an annuitant as described under this section if the individual: (1) served in a position described by Subsection (a) on or before August 31, 2003; and (2) at the time of retirement meets the requirements for eligibility for participation in the program as an annuitant as those requirements existed on August 31, 2003. SECTION 16.04. Subchapter G, Chapter 1551, Insurance Code, is amended by adding Section 1551.323 to read as follows: Sec. 1551.323. COST OF CERTAIN ANNUITANTS. (a) An annuitant eligible to participate under Section 1551.102(i), 1551.111(e), or 1551.112(c) is, except as provided by this subsection, required to pay the total cost, as determined by the board, attributable to the participation of that individual and the dependents of that individual until the date the individual is 65 years of age. If the General Appropriations Act or other similar legislation addresses the payment of those costs, those costs shall be paid in the manner specified by that legislation. (b) This section applies only to an individual who is eligible to participate as an annuitant under Section 1551.102(i), 1551.111(e), or 1551.112(c) and who is not eligible to participate under another provision of Section 1551.102, 1551.111, or 1551.112. SECTION 16.05. Section 1575.004, Insurance Code, as amended by Chapter 1231, Chapter 201, and Chapter 1276, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows: Sec. 1575.004. DEFINITION OF RETIREE. (a) In this chapter, "retiree" means: (1) an individual not eligible for coverage under a plan provided under Chapter 1551 or 1601 who: (A) is at least 65 years of age and has taken a service retirement under the Teacher Retirement System of Texas with at least 10 years of service credit in the system, which may include up to five years of military service credit, but which may not include any other service credit purchased for equivalent or special service credit [for actual service in public schools in this state]; [or] (B) was employed in actual service in public schools in this state during or before the 2003-2004 school year and at the time of retirement meets the requirements for eligibility as a retiree as those requirements existed on August 31, 2004; (C) purchased equivalent or special service credit, and: (i) had that service credited on or before August 31, 2003; (ii) retires on or before August 31, 2009; (iii) at the time of retirement, meets the requirements for eligibility for the group program for coverage as a retiree as those requirements existed on August 31, 2004, including using up to five years of out-of-state service toward retiree eligibility; and (iv) has taken a service retirement under the Teacher Retirement System of Texas without reduction for early age; (D) has taken a service retirement under the Teacher Retirement System of Texas and who has at least 10 years of service credit in the system, which may include up to [for actual public service in the public schools in this state or has at least five years of service credit for actual public service in the public schools in this state and has] five years of military service credit but which may not include any other service credit purchased for equivalent or special service credit [credited in the Teacher Retirement System of Texas], and the sum of the individual's age and amount of service credit described by this paragraph [earned for service in the public schools of this state] equals or exceeds the number 80; or (E) has taken a service retirement under the Teacher Retirement System of Texas on or before August 31, 2004, and who is enrolled in the group program on August 31, 2004; or (2) an individual who: (A) has taken a disability retirement under the Teacher Retirement System of Texas; and (B) is entitled to receive monthly benefits from the Teacher Retirement System of Texas. (b) Each year of service credit in the system that an individual would have received but for the individual's participation in the deferred retirement option plan under Subchapter I, Chapter 824, Government Code, is considered a year of service credit solely for the purpose of meeting the definition of "retiree" under Subsection (a)(1)(A) or (D). (c) In this section, "public school" has the meaning assigned by Section 821.001, Government Code. SECTION 16.06. Section 1575.161(b), Insurance Code, as added by Chapter 1231 and Chapter 201, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows: (b) In addition to the enrollment periods authorized under Subsection (a), a retiree who: (1) is enrolled in the group program as of August 31, 2004, and who is 65 years of age or older on that date may select coverage as described by Subsections (c) and (d) on September 1, 2004; [or] (2) is enrolled in the group program as of August 31, 2004, and who is 65 years of age after that date may select coverage as described by Subsections (c) and (d) on the date that the retiree is 65 years of age; or (3) enrolls in the group program on or after September 1, 2004, and who is 65 years of age or older on or after that date may select coverage as described in Subsections (c) and (d) on the date that the retiree is 65 years of age. SECTION 16.07. Section 1575.161, Insurance Code, as added by Chapter 213, Acts of the 78th Legislature, Regular Session, 2003, is redesignated as Section 1575.170, Insurance Code. SECTION 16.08. Section 1575.211, Insurance Code, as added by Chapter 1231 and Chapter 201, Acts of the 78th Legislature, Regular Session, 2003, is amended by adding Subsection (c) to read as follows: (c) A retiree eligible to participate under Section 1575.004(a)(1)(B) is, except as provided by this subsection, required to pay the total cost, as determined by the trustee, attributable to the participation of that individual and the dependents of that individual until the date the individual is otherwise eligible under Section 1575.004. The General Appropriations Act or other similar legislation may specify a different allocation of total costs for retirees eligible to participate under Section 1575.004(a)(1)(B) and the dependents of those retirees. This subsection applies only to an individual who is eligible to participate as an annuitant under Section 1575.004(a)(1)(B) and who is not otherwise eligible to participate under another provision of Section 1575.004 at the time of retirement. SECTION 16.09. Subchapter E, Chapter 3, Insurance Code, is amended by adding Article 3.50-8A to read as follows: Art. 3.50-8A. ADMINISTRATION OF ACTIVE EMPLOYEE HEALTH COVERAGE OR COMPENSATION SUPPLEMENTATION. (a) In administering the program for active employee health coverage or compensation supplementation established under Article 3.50-8 of this code before September 1, 2004, in accordance with Article 3, Chapter 313, Acts of the 78th Legislature, Regular Session, 2003, each year, the Teacher Retirement System of Texas, as trustee, shall deliver to each school district, including a school district that is ineligible for state aid under Chapter 42, Education Code, each other education district that is a member of the Teacher Retirement System of Texas, each participating charter school, and each regional education service center, state funds in an amount, as determined by the trustee, equal to: (1) the product of the number of full-time active employees employed by the district, school, or service center, other than in the capacity of administrators, multiplied by $500 or a greater amount as provided by the General Appropriations Act for purposes of Article 3.50-8 of this code; and (2) the product of the number of part-time active employees employed by the district, school, or service center, other than in the capacity of administrators, multiplied by $250 or a greater amount as provided by the General Appropriations Act for purposes of Article 3.50-8 of this code. (b) An administrator of a district, charter school, or service center described by Subsection (a) of this article is not eligible to receive state funds under the program for active employee health coverage or compensation supplementation. (c) For purposes of this article, an individual is an administrator of a district, charter school, or service center described by Subsection (a) of this article if: (1) 50 or more percent of the individual's time is reported under any combination of the following role identifications in the Public Education Information Management System (PEIMS), or under any subsequently created role identifications that describe roles that are substantially similar to the ones identified in this subdivision: (A) central administrators: (i) assistant or associate superintendent (004); (ii) instructional officer (central office, 012); (iii) superintendent, CAO, CEO, or president (027); (iv) teacher supervisor (central office, 028); (v) vocational education coordinator (central office, 032); (vi) athletic director (central office, 040); (vii) business manager (043); (viii) tax assessor or collector (044); (ix) director--personnel/human resources (045); or (x) registrar (central office, 055); or (B) campus administrators: (i) assistant principal (003); (ii) instructional officer (not central office, 012); (iii) principal (020); (iv) teacher supervisor (not central office, 028); (v) vocational education coordinator (not central office, 032); (vi) athletic director (not central office, 040); or (vii) registrar (not central office, 055); (2) the individual is employed by a regional education service center and 50 or more percent of the individual's time is reported under any combination of the following role identifications in the Public Education Information Management System (PEIMS), or under any subsequently created role identifications that describe roles that are substantially similar to the ones identified in this subdivision: (A) executive director (60); (B) assistant, associate, or deputy executive director (61); (C) component or department director (62); or (D) coordinator, manager, or supervisor (63); or (3) regardless of how the individual's time is reported in the Public Education Information Management System (PEIMS), 50 or more percent of the individual's time is in a role that is substantially similar to a role described by Subdivision (1) or (2) of this subsection, as determined by the reporting entity or combination of entities. (d) This article applies notwithstanding Section 2(a), Article 3.50-8, of this code, as that subsection existed before amendment by Chapter 313, Acts of the 78th Legislature, Regular Session, 2003, or as that subsection was amended by Section 57, Chapter 201, Acts of the 78th Legislature, Regular Session, 2003. (e) Sections 2(b), (c), and (d), Article 3.50-8, of this code, as those sections existed before amendment by Chapter 313, Acts of the 78th Legislature, Regular Session, 2003, apply to the delivery of state funds under Subsection (a) of this article. (f) The terms used in this article have the meanings assigned by Section 1, Article 3.50-8 of this code. (g) This article expires September 1, 2004. SECTION 16.10. (a) Except as otherwise provided by this section, this article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect on the 91st day after the last day of the legislative session. (b) Sections 16.05 and 16.08 of this article take effect September 1, 2004.
ARTICLE 17. CLOSURE OF CERTAIN PROGRAMS ON LOW-PERFORMING CAMPUSES
SECTION 17.01. Section 39.132(b), Education Code, as amended by Chapter 342, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (b) If a campus has been a low-performing campus for a period of two consecutive years or more, the commissioner shall order the closure of the district or charter program on the campus or reconstitute the campus. In reconstituting the campus, a special campus intervention team shall be assembled for the purpose of deciding which educators may be retained at that campus. If an educator is not retained, the educator may [shall] be assigned to another position in the district. [(1) the educator's employment with the school district may be terminated under Section 21.157, if applicable; or [(2) the educator may be assigned to another position in the district.]
ARTICLE 18. PARTICIPATION IN STATE EMPLOYEE CHARITABLE CAMPAIGN
SECTION 18.01. A federation or organization that has participated in the state employee charitable campaign authorized by Subchapter I, Chapter 659, Government Code, is not barred from participation in the program, both in terms of actual participation and the purposes for which the contributions are used, solely as a result of changes made in the law by Sections 35, 36, 37, and 121, Chapter 1310, Acts of the 78th Legislature, Regular Session, 2003. This section is not intended to excuse a federation or organization from compliance with any other law, rule, or state policy.
ARTICLE 19. CERTAIN AGREEMENTS OF THE
TEXAS DEPARTMENT OF TRANSPORTATION
SECTION 19.01. Subchapter C, Chapter 201, Transportation Code, is amended by adding Section 201.1055 to read as follows: Sec. 201.1055. AGREEMENTS WITH PRIVATE ENTITIES. Notwithstanding any other law, including Subchapter A, Chapter 2254, Government Code, Chapters 2165, 2166, and 2167, Government Code, and Sections 202.052, 202.053, 203.051, 203.052, and 223.001 of this code, the department and a private entity that offers the best value to the state may enter into an agreement that includes: (1) both design and construction of a district office headquarters facility located in a county with a population of 3.3 million or more; (2) a lease of department-owned real property in a district that includes a county with a population of 3.3 million or more to the private entity; (3) a provision authorizing the private entity to construct and retain ownership of a building on property leased to the entity under Subdivision (2); and (4) a provision under which the department agrees to enter into an agreement to lease with an option or options to purchase a building constructed on property leased to the entity under Subdivision (2).
ARTICLE 20. TAX EXEMPTION FOR CERTAIN
MEDICAL CENTER DEVELOPMENTS
SECTION 20.01. Section 11.23, Tax Code, is amended by adding Subsection (j-1) to read as follows: (j-1) Medical Center Development in Populous Counties. In a county described by Section 201.1055(1), Transportation Code, all real and personal property owned by a nonprofit corporation, as defined in the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes), and held for use in the development or operation of a medical center area or areas in which the nonprofit corporation has donated land for a state medical, dental, or nursing school, and for other hospital, medical, educational, or nonprofit uses and uses reasonably related thereto, or for governmental or public purposes, including the relief of traffic congestion, and not leased or otherwise used with a view to profit, is exempt from all ad valorem taxation as though the property were, during that time, owned and held by the state for health and educational purposes. In connection with the application or enforcement of a deed restriction or a covenant related to the property, a use or purpose described in this subsection shall also be considered to be a hospital, medical, or educational use, or a use that is reasonably related to a hospital, medical, or educational use. SECTION 20.02. Section 11.43(c), Tax Code, as amended by Chapter 407, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (c) An exemption provided by Section 11.13, 11.17, 11.18, 11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), [or] (j), or (j-1), 11.29, 11.30, or 11.31, once allowed, need not be claimed in subsequent years, and except as otherwise provided by Subsection (e), the exemption applies to the property until it changes ownership or the person's qualification for the exemption changes. However, the chief appraiser may require a person allowed one of the exemptions in a prior year to file a new application to confirm the person's current qualification for the exemption by delivering a written notice that a new application is required, accompanied by an appropriate application form, to the person previously allowed the exemption. SECTION 20.03. This article takes effect on the 91st day after the last day of the legislative session and applies only to the ad valorem taxation of property for a tax year that begins on or after January 1, 2004.
ARTICLE 21. ALCOHOLIC BEVERAGE REGULATION
SECTION 21.01. Section 105.07(b), Alcoholic Beverage Code, as added by Chapter 946, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (b) Notwithstanding any other provision of this code, in addition to any other period during which the sale and consumption of alcohol is authorized under this code: (1) a licensed or permitted premises located in a sports venue may sell alcoholic beverages between 10 a.m. and noon; [(2) a licensed or permitted premises located in a public entertainment facility that has provisions for overnight camping may allow a person to bring an alcoholic beverage onto the premises, consume the beverage on the premises, and remove the beverage from the premises;] and (2) [(3)] a person may consume alcoholic beverages at a sports venue between 10 a.m. and noon. SECTION 21.02. Section 28.13, Alcoholic Beverage Code, is amended by adding Subsections (d) and (e) to read as follows: (d) A mixed beverage permit may be issued under this section to a boat regularly used for voyages in international waters regardless of whether the sale of mixed beverages is lawful in the area of the home port. A person having authority to deliver alcoholic beverages to a mixed beverage permit holder in the county where the licensed premises is located may deliver alcoholic beverages purchased by the permit holder. Subsection (a)(2) does not apply to this subsection. (e) The provisions of Section 109.53 that relate to residency requirements and compliance with Texas laws of incorporation do not apply to the holders of a mixed beverage permit under this section. SECTION 21.03. Section 11.641(c), Alcoholic Beverage Code, as added by Chapter 1223, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (c) A civil penalty, including cancellation of a permit, may not be imposed on the basis of a criminal prosecution in which the defendant was found not guilty, the criminal charges were dismissed, or there has not been final adjudication. SECTION 21.04. (a) Section 32.03, Alcoholic Beverage Code, is amended by adding Subsection (k) to read as follows: (k) A private club registration permit may not be issued to or maintained by a club for a premises located in a dry area if the club operates a sexually oriented business, as defined by Section 243.002, Local Government Code, on the premises. (b) Section 32.03(k), Alcoholic Beverage Code, as added by this section, applies to a permit issued or renewed on or after the effective date of this section. A permit issued or renewed before the effective date of this section is governed by the law in effect immediately before that date only until the first renewal date for the permit that occurs on or after the effective date of this section, and that law is continued in effect for that purpose. SECTION 21.05. Section 28.13(c), Alcoholic Beverage Code, is repealed. SECTION 21.06. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect on the 91st day after the last day of the legislative session.
ARTICLE 22. COMMISSIONED PEACE OFFICERS OF THE
TEXAS DEPARTMENT OF PUBLIC SAFETY
SECTION 22.01. Section 12.03, Article IX, Chapter 1330, Acts of the 78th Legislature, Regular Session, 2003 (the General Appropriations Act), is amended by adding Subsection (e) to read as follows: (e) Regardless of the date on which an employee described by this subsection retires, the appropriation of the Department of Public Safety for fiscal year 2004 or 2005 may not be reduced under Subsection (a) of this section as the result of the retirement of a Department of Public Safety employee who is a commissioned peace officer and who retires as provided by Section 814.1051, Government Code, as added by Chapter 735, Acts of the 78th Legislature, Regular Session, 2003. The Department of Public Safety may use money that would otherwise have been reduced under Subsection (a) of this section only to comply with Rider 39 following the appropriation to the department. Lump-sum retirement incentive payments for employees of the Department of Public Safety who are commissioned peace officers and who retire as provided by Section 814.1051, Government Code, shall be paid in accordance with Subsections (b)(1) and (c) of this section.
ARTICLE 23. INTEGRITY AND DISCLOSURE IN THE
STATE TAX SYSTEM
SECTION 23.01. Chapter 321, Government Code, is amended by adding Section 321.0138 to read as follows: Sec. 321.0138. REVIEW OF STATE TAX SETTLEMENTS AND OTHER DECISIONS. (a) This section applies to: (1) a settlement of a claim for a tax, refund, or credit of a tax, penalty, or interest imposed by Title 2, Tax Code; (2) a settlement of a taxpayer suit under Chapter 112, Tax Code; or (3) any circumstance in which a taxpayer received a warrant, offset, check, payment, or credit from the comptroller or comptroller's office arising from the filing of a tax return with the state. (b) The state auditor and the committee shall review the comptroller's records of all tax refunds, credits, payments, warrants, offsets, checks, and settlements for the preceding six years from the effective date of this section. The state auditor and the committee may review the comptroller's records of all tax refunds, credits, payments, warrants, offsets, checks, and settlements that occur following the effective date of this section. Notwithstanding any other law, in reviewing these tax refunds, credits, payments, warrants, offsets, checks, and settlements, the state auditor and the committee are entitled to access to related information to the same extent they would be entitled under Section 321.013 if the information were in a department or entity that is subject to audit. In accordance with Section 321.013(h), neither the state auditor nor the committee may conduct audits of private entities concerning the collection or remittance of taxes or fees to this state. (c) Within six months following the effective date of this section, the comptroller shall provide to the state auditor information designated by the state auditor, after consultation with the comptroller, relating to tax refunds, credits, payments, warrants, offsets, checks, and settlements made in the past six years as requested by the state auditor. Commencing February 1, 2004, on a monthly basis, the comptroller shall provide to the state auditor information designated by the state auditor relating to tax refunds, credits, payments, warrants, offsets, checks, and settlements to which this section applies. (d) A review by the state auditor under this section is considered an audit for purposes of the application of Section 552.116, relating to confidentiality of audit working papers. Information obtained or possessed by the state auditor or the committee that is confidential under law when in the possession of the comptroller remains confidential while in the possession of the state auditor or committee, except as provided by Subsection (e). (e) The committee shall determine the manner in which the state auditor shall report information obtained pursuant to Subsection (b). The report may include any information obtained during the review, except that the report may not be formatted in a manner or include any information that discloses or effectively discloses the specific identity of an individual or taxpayer. The report must state the information by category or by numeric pseudonym and may include other information maintained by the Texas Ethics Commission. (f) Except as provided by Subsection (e), this section does not affect any other law relating to confidentiality of information relating to tax information, including Sections 111.006, 151.027, and 171.206, Tax Code. (g) This section does not affect any other law relating to release of information for legislative purposes, including Section 552.008, Government Code. SECTION 23.02. This article takes effect February 1, 2004.
ARTICLE 24. COMPTROLLER OF PUBLIC ACCOUNTS
SECTION 24.01. Section 403.0131, Government Code, is amended to read as follows: Sec. 403.0131. APPROPRIATION CERTIFICATION [SUMMARY]. (a) Not later than the 10th day, excluding Sundays, after the date on which an act making an appropriation is reported enrolled by the house of origin, the comptroller shall complete the evaluation and certification of the appropriation required by Section 49a(b), Article III, Texas Constitution. (b) As soon as practical after the comptroller certifies the appropriations made by the legislature in a regular or special session, the comptroller shall prepare a summary table that details the basis for the certification of all major funds. The table must be similar in format and detail to the summary tables of the major fund estimates published in the comptroller's biennial revenue estimate and must include the biennial appropriations from all major funds. The comptroller shall deliver a copy of each table prepared under this section to the governor, the lieutenant governor, the speaker of the house of representatives, each member of the legislature, and the Legislative Budget Board.
ARTICLE 25. PROMOTION PARTNERSHIP BETWEEN
THE TEXAS DEPARTMENT OF AGRICULTURE AND
CERTAIN COMMODITY PRODUCERS BOARDS
SECTION 25.01. Chapter 12, Agriculture Code, is amended by adding Section 12.0176 to read as follows: Sec. 12.0176. COOPERATION WITH CERTAIN COMMODITY PRODUCERS BOARDS. (a) The department may, to the extent that resources are available, enter into a cooperative agreement with a commodity producers board to increase the effectiveness and efficiency of the promotion of Texas agricultural products. (b) A cooperative agreement may include: (1) provisions relating to the programs instituted by the department under this chapter and Chapter 46; (2) provisions relating to board contributions for promotional costs; and (3) any other provisions the department and the board consider appropriate. (c) Funds contributed by a board under an agreement under this section are not state funds. SECTION 25.02. Section 41.002(1), Agriculture Code, is amended to read as follows: (1) "Agricultural commodity" means an agricultural, horticultural, viticultural, or vegetable product, bees and honey, planting seed, rice, livestock or livestock product, or poultry or poultry product, produced in this state, either in its natural state or as processed by the producer. The term does not include flax [or cattle]. SECTION 25.03. Chapter 41, Agriculture Code, is amended by adding Subchapter H to read as follows:
SUBCHAPTER H. TEXAS BEEF MARKETING, EDUCATION,
RESEARCH, AND PROMOTION
Sec. 41.151. DEFINITIONS. In this subchapter: (1) "Beef products" means products produced in whole or in part from beef. The term does not include milk or products made from milk. (2) "Board" means the board of directors of the Texas Beef Council. (3) "Council" means the Texas Beef Council. (4) "Producer" means a person who owns or acquires ownership of cattle, except that a person is not a producer if the person's only share in the proceeds of a sale of cattle or beef is a sales commission, handling fee, or other service fee. Sec. 41.152. DECLARATION OF POLICY. (a) The legislature intends that the promotion, marketing, research, and educational efforts regarding beef and beef products under this subchapter use existing cattle industry infrastructure to the extent possible. (b) The council shall be recognized as the entity to plan, implement, and operate research, education, promotion, and marketing programs under this subchapter. Sec. 41.153. ADMINISTRATIVE COSTS. The department may recover costs for administration of this subchapter. Sec. 41.154. ANNUAL REPORT. The council shall deliver to the commissioner and the appropriate oversight committee in the senate and house of representatives an annual report giving details of its efforts to carry out the purposes of this subchapter. Sec. 41.155. CONFLICT WITH GENERAL COMMODITY LAW PROVISIONS. To the extent that the provisions of this subchapter conflict with other provisions of this chapter, the provisions of this subchapter prevail. Sec. 41.156. BOARD MEMBERS. (a) The board is composed of 21 members appointed by the commissioner as follows: (1) three representatives of the Texas and Southwestern Cattle Raisers Association; (2) three representatives of the Texas Cattle Feeders Association; (3) three representatives of the Texas Farm Bureau; (4) two representatives of the Independent Cattlemen's Association; (5) two representatives of the Texas purebred cattle industry; (6) two representatives of the Texas dairy industry; (7) two representatives of the Livestock Marketing Association of Texas; (8) one representative of meat packer and exporter associations; (9) one representative of Texas CattleWomen; and (10) two at-large directors. (b) A board member serves a one-year term. (c) The commissioner shall fill a vacancy on the board by appointment for the unexpired term. Sec. 41.157. GENERAL POWERS OF COUNCIL. The council may take action or exercise other authority as necessary to execute any act authorized by this subchapter or the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes). Sec. 41.158. DONATIONS. The council may accept gifts, donations, and grants of money, including appropriated funds, from state government, federal government, local governments, private corporations, or other persons, to be used for the purposes of this subchapter. Sec. 41.159. BORROWING. The council may borrow money on approval of the commissioner. Sec. 41.160. ASSESSMENTS; APPLICABILITY OF OTHER LAW. (a) The commissioner, on the recommendation of the council, shall propose the maximum assessment in a referendum under Section 41.162. (b) If an assessment referendum is approved, the council shall collect the assessment. (c) An assessment levied on producers may be applied to efforts relating to the marketing, education, research, and promotion of beef and beef products in Texas, the United States, and international markets. (d) Assessments collected by the council are not state funds and are not required to be deposited in the state treasury. (e) Section 41.083 applies to an assessment collected by the council under this subchapter. Section 41.082 does not apply to an assessment collected under this subchapter. Sec. 41.161. FINANCIAL OVERSIGHT. (a) The commissioner shall annually review and approve the council's operating budget. (b) The commissioner and the state auditor at any time may inspect the financial records of the council. Sec. 41.162. CONDUCT OF REFERENDUM; BALLOTING. (a) On the recommendation of the council, the commissioner shall conduct a referendum authorized under this subchapter. (b) Only a producer who has owned cattle in the last 12 months before the date of the referendum is eligible to vote in the referendum. (c) An eligible producer may vote only once in a referendum. (d) Each producer's vote is entitled to equal weight regardless of the producer's volume of production. (e) A referendum is approved if a simple majority of votes are cast in favor of the referendum. (f) Individual voter information, including an individual's vote in a referendum conducted under this section, is confidential and not subject to disclosure under Chapter 552, Government Code. (g) The council shall pay all expenses incurred in conducting a referendum. Sec. 41.163. RULES. The commissioner may adopt rules as necessary to implement this subchapter, including rules relating to: (1) the auditing of the financial records of the council; (2) fidelity bonds required for certain council employees; (3) conflicts of interest; (4) penalties; and (5) a statewide referendum under Section 41.156. Sec. 41.164. PENALTIES. (a) A person who violates this subchapter or a rule adopted under this subchapter commits an offense. (b) An offense under this section is a Class C misdemeanor.
ARTICLE 26. LIABILITY OF MUNICIPAL HOSPITAL CONTRACTOR
SECTION 26.01. Sections 261.051 and 261.052, Health and Safety Code, as added by Chapter 204, Acts of the 78th Legislature, Regular Session, 2003, are amended to read as follows: Sec. 261.051. DEFINITION. In this subchapter, "municipal hospital management contractor" means a nonprofit corporation, partnership, or sole proprietorship that manages or operates a hospital or provides services under a contract with a municipality or municipal hospital authority. Sec. 261.052. LIABILITY OF A MUNICIPAL HOSPITAL MANAGEMENT CONTRACTOR. A municipal hospital management contractor in its management or operation of a hospital under a contract with a municipality or a municipal hospital authority is considered a governmental unit for purposes of Chapters 101, 102, and 108, Civil Practice and Remedies Code, and any employee of the contractor is, while performing services under the contract for the benefit of the hospital, an employee of the municipality for the purposes of Chapters 101, 102, and 108, Civil Practice and Remedies Code.
ARTICLE 27. PUBLIC INFORMATION
SECTION 27.01. Subchapter A, Chapter 552, Government Code, is amended by adding Section 552.010 to read as follows: Sec. 552.010. STATE GOVERNMENTAL BODIES: FISCAL AND OTHER INFORMATION RELATING TO MAKING INFORMATION ACCESSIBLE. (a) Each state governmental body shall report to the Texas Building and Procurement Commission the information the commission requires regarding: (1) the number and nature of requests for information the state governmental body processes under this chapter in the period covered by the report; and (2) the cost to the state governmental body in that period in terms of capital expenditures and personnel time of: (A) responding to requests for information under this chapter; and (B) making information available to the public by means of the Internet or another electronic format. (b) The Texas Building and Procurement Commission shall design and phase in the reporting requirements in a way that: (1) minimizes the reporting burden on state governmental bodies; and (2) allows the legislature and state governmental bodies to estimate the extent to which it is cost-effective for state government, and if possible the extent to which it is cost-effective or useful for members of the public, to make information available to the public by means of the Internet or another electronic format as a supplement or alternative to publicizing the information only in other ways or making the information available only in response to requests made under this chapter. (c) The commission shall share the information reported under this section with the open records steering committee.
ARTICLE 28. DEBT COLLECTION PRACTICES
SECTION 28.01. Section 392.304(a), Finance Code, as amended by Chapter 851, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows: (a) Except as otherwise provided by this section, in debt collection or obtaining information concerning a consumer, a debt collector may not use a fraudulent, deceptive, or misleading representation that employs the following practices: (1) using a name other than the: (A) true business or professional name or the true personal or legal name of the debt collector while engaged in debt collection; or (B) name appearing on the face of the credit card while engaged in the collection of a credit card debt; (2) failing to maintain a list of all business or professional names known to be used or formerly used by persons collecting consumer debts or attempting to collect consumer debts for the debt collector; (3) representing falsely that the debt collector has information or something of value for the consumer in order to solicit or discover information about the consumer; (4) failing to disclose clearly in any communication with the debtor the name of the person to whom the debt has been assigned or is owed when making a demand for money; (5) in the case of a third-party debt collector, failing to disclose, except in a formal pleading made in connection with a legal action: (A) that the communication [debt collector] is an attempt [attempting] to collect a debt and that any information obtained will be used for that purpose, if the communication is the initial written or oral communication between the third-party debt collector and [with] the debtor; or (B) that the communication is from a debt collector, if the communication is a subsequent written or oral communication between the third-party debt collector and [with] the debtor; (6) using a written communication that fails to indicate clearly the name of the debt collector and the debt collector's street address or post office box and telephone number if the written notice refers to a delinquent consumer debt; (7) using a written communication that demands a response to a place other than the debt collector's or creditor's street address or post office box; (8) misrepresenting the character, extent, or amount of a consumer debt, or misrepresenting the consumer debt's status in a judicial or governmental proceeding; (9) representing falsely that a debt collector is vouched for, bonded by, or affiliated with, or is an instrumentality, agent, or official of, this state or an agency of federal, state, or local government; (10) using, distributing, or selling a written communication that simulates or is represented falsely to be a document authorized, issued, or approved by a court, an official, a governmental agency, or any other governmental authority or that creates a false impression about the communication's source, authorization, or approval; (11) using a seal, insignia, or design that simulates that of a governmental agency; (12) representing that a consumer debt may be increased by the addition of attorney's fees, investigation fees, service fees, or other charges if a written contract or statute does not authorize the additional fees or charges; (13) representing that a consumer debt will definitely be increased by the addition of attorney's fees, investigation fees, service fees, or other charges if the award of the fees or charges is subject to judicial discretion; (14) representing falsely the status or nature of the services rendered by the debt collector or the debt collector's business; (15) using a written communication that violates the United States postal laws and regulations; (16) using a communication that purports to be from an attorney or law firm if it is not; (17) representing that a consumer debt is being collected by an attorney if it is not; [or] (18) representing that a consumer debt is being collected by an independent, bona fide organization engaged in the business of collecting past due accounts when the debt is being collected by a subterfuge organization under the control and direction of the person who is owed the debt; or (19) using any other false representation or deceptive means to collect a debt or obtain information concerning a consumer.
ARTICLE 29. TRAVEL SERVICES CONTRACTS
SECTION 29.01. Section 44.044, Education Code, as added by Chapter 482, Acts of the 78th Legislature, Regular Session, 2003, is repealed.
ARTICLE 30. FINANCIAL DISCLOSURE FOR BOARDS OF TRUSTEES OF CERTAIN SCHOOL DISTRICTS
SECTION 30.01. Section 11.064, Education Code, as added by Chapter 249, Acts of the 78th Legislature, Regular Session, 2003, is amended by amending Subsections (a) and (c) and adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as follows: (a) The board of trustees [A trustee] of an independent school district by resolution adopted by majority vote may require each member of the board to [with an enrollment of at least 5,000 students shall] file the financial statement required of state officers under Subchapter B, Chapter 572, Government Code, with: (1) the board of trustees; and (2) the Texas Ethics Commission. (a-1) Not later than the 15th day after the date a board of trustees adopts a resolution under Subsection (a), the board shall deliver a certified copy of the resolution to the Texas Ethics Commission. (a-2) A resolution adopted under Subsection (a) applies beginning on January 1 of the second year following the year in which the resolution is adopted. A member of a board of trustees that has adopted a resolution under Subsection (a) is not required to include, in a financial disclosure statement under this section, financial activity occurring before January 1 of the year following the year in which the resolution is adopted. (a-3) The commissioner by order shall require the members of the board of trustees of an independent school district to file the financial statement required of state officers under Subchapter B, Chapter 572, Government Code, in the same manner as the members of a board of trustees that have adopted a resolution under Subsection (a) if the commissioner determines that: (1) a board member has failed to comply with filing and recusal requirements applicable to the member under Chapter 171, Local Government Code; (2) the district financial accounting practices are not adequate to safeguard state and district funds; or (3) the district has not met a standard set by the commissioner in the financial accountability rating system. (a-4) The commissioner may require filing financial statements under Subsection (a-3) covering not more than three fiscal years and beginning on January 1 of the second year following the date of the commissioner's order. A member of a board of trustees subject to an order issued under Subsection (a-3) is not required to include, in a financial disclosure statement subject to this section, financial activity occurring before January 1 of the year following the year in which the order is issued. The commissioner may renew the requirement if the commissioner determines that a condition described by Subsection (c) continues to exist. (c) A trustee serving in a school district that has adopted a resolution under Subsection (a) or that is subject to an order issued under Subsection (a-3) [subject to this section] commits an offense if the trustee fails to file the statement required by the resolution or order [this section]. An offense under this section is a Class B misdemeanor. SECTION 30.02. Section 6.08, Chapter 249, Acts of the 78th Legislature, Regular Session, 2003, is repealed. SECTION 30.03. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect on the 91st day after the last day of the legislative session.
ARTICLE 31. AIRCRAFT POOLING BOARD
SECTION 31.01. (a) The Texas Department of Transportation may enter into an interagency contract with the State Aircraft Pooling Board. The existing interagency contract, as amended on September 30, 2003, remains in effect until the governor, the lieutenant governor, and the speaker of the house of representatives have all approved a new interagency contract entered into under this subsection. (b) A new interagency contract entered into under this section: (1) must be for a term remaining in the biennium; and (2) may only be terminated if: (A) all parties have received at least 30 days' notice of the proposed termination; and (B) the governor, the lieutenant governor, and the speaker of the house of representatives all consent to the termination. (c) The Texas Department of Transportation shall operate under the interagency contract on a full cost recovery basis and may not allow differential rates for any reason.
ARTICLE 32. JUDICIAL DISTRICTS
SECTION 32.01. Section 10, Chapter 1306, Acts of the 78th Legislature, Regular Session, 2003, is amended by amending Subsection (c) and adding Subsection (d) to read as follows: (c) The [414th,] 415th, [419th,] 420th, 421st, and 422nd judicial districts are created January 15, 2004 [September 1, 2005]. (d) The 414th and 419th judicial districts are created September 1, 2005. SECTION 32.02. Section 11, Chapter 1306, Acts of the 78th Legislature, Regular Session, 2003, is amended by amending Subsection (c) and adding Subsection (d) to read as follows: (c) Sections [2,] 3, [6,] 7, 8, and 9 of this Act take effect January 15, 2004 [September 1, 2005]. (d) Sections 2 and 6 of this Act take effect September 1, 2005.
ARTICLE 33. SALE OR LEASE OF CERTAIN VACANT PUBLIC LAND
SECTION 33.01. Section 51.178(a), Natural Resources Code, is amended to read as follows: (a) A person may apply for good-faith-claimant status not later than the 90th day after: (1) the date of a final order by the commissioner finding that a vacancy exists [at the time an application is filed under Section 51.176]; or (2) the date of final judgment by a court that a vacancy exists, if the commissioner does not find that a vacancy exists [not later than the 60th day after the date notice of acceptance is published as required under Section 51.179(d)]. SECTION 33.02. The changes in law made by this article apply only to a vacancy application existing or made on or after the effective date of this Act.
ARTICLE 34. EFFECTIVE DATE
SECTION 34.01. Except as otherwise provided by this Act, this Act takes effect on the 91st day after the last day of the legislative session. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 7 was passed by the House on September 17, 2003, by a non-record vote; that the House refused to concur in Senate amendments to H.B. No. 7 on September 29, 2003, and requested the appointment of a conference committee to consider the differences between the two houses; and that the House adopted the conference committee report on H.B. No. 7 on October 12, 2003, by the following vote: Yeas 79, Nays 35, 1 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 7 was passed by the Senate, with amendments, on September 25, 2003, by the following vote: Yeas 21, Nays 8; at the request of the House, the Senate appointed a conference committee to consider the differences between the two houses; and that the Senate adopted the conference committee report on H.B. No. 7 on October 10, 2003, by the following vote: Yeas 21, Nays 10. ______________________________ Secretary of the Senate APPROVED: __________________ Date __________________ Governor