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By: McCall H.B. No. 2425
A BILL TO BE ENTITLED
AN ACT
relating to state and certain local fiscal matters; making an
appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 103.051(a), Civil Practice and Remedies
Code, is amended to read as follows:
(a) To apply for compensation under this subchapter, the
claimant must file with the [judicial section of the] comptroller's
judiciary section [office]:
(1) an application for compensation provided for that
purpose by the comptroller;
(2) a verified copy of the pardon or court order
justifying the application for compensation; [and]
(3) a statement provided by the Texas Department of
Criminal Justice verifying the length of incarceration; and
(4) a certification of the claimant's actual innocence
of the crime for which the claimant was sentenced that is signed by
the attorney representing the state in the prosecution of felonies
in the county in which the sentence was rendered.
SECTION 2. Section 14(e), Article 42.12, Code of Criminal
Procedure, as added by Chapter 1188, Acts of the 76th Legislature,
Regular Session, 1999, is amended to read as follows:
(e) The clerk of a court that collects a fee imposed under
Subsection (c)(2) shall remit the fee to the comptroller not later
than the last day of the month following the end of the calendar
quarter in which the fee is collected, and the comptroller shall
deposit the fee into the general revenue fund. If the clerk does
not collect a fee imposed under Subsection (c)(2), the clerk is not
required to file any report required by the comptroller relating to
the collection of the fee. In requiring the payment of a fee under
Subsection (c)(2), the judge shall consider fines, fees, and other
necessary expenses for which the defendant is obligated in
establishing the amount of the fee. The judge may not:
(1) establish the fee in an amount that is greater than
25 percent of the defendant's gross income while the defendant is a
participant in residential aftercare; or
(2) require the defendant to pay the fee at any time
other than a time at which the defendant is both employed and a
participant in residential aftercare.
SECTION 3. Section 19(f), Article 42.12, Code of Criminal
Procedure, is amended to read as follows:
(f) A community corrections and supervision department
shall remit fees collected under Subsection (e) of this section to
the comptroller not later than the last day of the month following
the end of the calendar quarter in which the fee is collected. The
comptroller shall deposit the fee in the special revenue fund to the
credit of the sexual assault program established under Section
44.0061, Health and Safety Code. If the department does not collect
a fee imposed under Subsection (e), the department is not required
to file any report required by the comptroller relating to the
collection of the fee.
SECTION 4. Section 44.901, Education Code, as amended by
Chapter 573, Acts of the 77th Legislature, Regular Session, 2001,
is amended to read as follows:
Sec. 44.901. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR WATER
CONSERVATION MEASURES]. (a) In this section, "energy savings
performance contract" means a contract for energy or water
conservation measures to reduce energy or water consumption or
operating costs of school facilities in which the estimated savings
in utility costs resulting from the measures is guaranteed to
offset the cost of the measures over a specified period. The term
includes a contract for the installation or implementation of:
[The board of trustees of a school district may enter into a
contract for energy or water conservation measures to reduce energy
or water consumption or operating costs of school facilities in
accordance with this section.
[(b) A contract to which this section applies includes a
contract for the installation of:]
(1) insulation of a [the] building structure
[structures] and systems within the building;
(2) storm windows or doors, caulking or
weatherstripping, multiglazed windows or doors, heat absorbing or
heat reflective glazed and coated window or door systems, or other
window or door system modifications that reduce energy consumption;
(3) automatic energy control systems, including
computer software and technical data licenses;
(4) heating, ventilating, or air-conditioning system
modifications or replacements that reduce energy or water
consumption;
(5) lighting fixtures that increase energy
efficiency;
(6) energy recovery systems;
(7) electric systems improvements;
(8) water-conserving fixtures, appliances, and
equipment or the substitution of non-water-using fixtures,
appliances, and equipment;
(9) water-conserving landscape irrigation equipment;
(10) landscaping measures that reduce watering
demands and capture and hold applied water and rainfall, including:
(A) landscape contouring, including the use of
berms, swales, and terraces; and
(B) the use of soil amendments that increase the
water-holding capacity of the soil, including compost;
(11) rainwater harvesting equipment and equipment to
make use of water collected as part of a storm-water system
installed for water quality control;
(12) equipment for recycling or reuse of water
originating on the premises or from other sources, including
treated municipal effluent;
(13) equipment needed to capture water from
nonconventional, alternate sources, including air conditioning
condensate or graywater, for nonpotable uses;
(14) metering equipment needed to segregate water use
in order to identify water conservation opportunities or verify
water savings; or
(15) other energy or water conservation-related
improvements or equipment, [(]including improvements or equipment
relating to renewable energy or nonconventional water sources or
water reuse[)].
(b) The board of trustees of a school district may enter
into an energy savings performance contract in accordance with this
section.
(c) Each [All] energy or water conservation measure
[measures] must comply with current local, state, and federal
construction, plumbing, and environmental codes and regulations.
Notwithstanding [anything to the contrary in] Subsection (a) [(b)],
an energy savings performance [a] contract may [for energy or water
conservation measures shall] not include improvements or equipment
that allow or cause water from any condensing, cooling, or
industrial process or any system of nonpotable usage over which the
public water supply system officials do not have sanitary control,
to be returned to the potable water supply.
(d) The [person with whom the] board may enter into energy
savings performance contracts only with persons who are [must be]
experienced in the design, implementation, and installation of the
energy or water conservation measures addressed by the contract.
(e) Before entering into an energy savings performance [a]
contract [for energy or water conservation measures], the board
shall require the provider of the energy or water conservation
measures to file with the board a payment and performance bond
relating to the installation of the [energy or water conservation]
measures in accordance with Chapter 2253, Government Code. The
[that is in an amount the] board [finds reasonable and necessary to
protect the interests of the school district and that] may also
require a separate bond to cover the value of the guaranteed savings
on the contract [and is conditioned on the faithful execution of the
terms of the contract].
(f) An energy savings performance contract [Energy or water
conservation measures with respect to existing buildings or
facilities] may be financed:
(1) under a lease/purchase contract that has a term
not to exceed 15 years from the final date of installation and that
meets federal tax requirements for tax-free municipal leasing or
long-term financing;
(2) with the proceeds of bonds; or
(3) under a contract with the provider of the energy or
water conservation measures that has a term not to exceed 15 years
from the final date of installation.
(g) An energy savings performance [A] contract [for energy
or water conservation measures] shall contain provisions requiring
[pursuant to which] the provider of the energy or water
conservation measures to guarantee [guarantees] the amount of the
savings to be realized by the school district under the contract.
If the term of an energy savings performance [a] contract [for
energy or water conservation measures] exceeds one year, the school
district's contractual obligations in any one year during the term
of the contract beginning after the final date of installation may
not exceed the total energy, water, wastewater, and operating cost
savings, including [but not limited to] electrical, gas, water,
wastewater, or other utility cost savings and operating cost
savings resulting from the measures, [automatic monitoring and
control] as determined by the school district in this subsection,
divided by the number of years in the contract term.
(h) An energy savings performance [A] contract shall [under
this section may] be let according to the procedures established
for procuring certain professional services by Section 2254.004,
Government Code [under competitive proposal procedures]. Notice of
the request for qualifications [proposals] shall be published in
the manner provided for competitive bidding. [Requests for
proposals must solicit quotations and must specify the relative
importance of guaranteed savings, price, return on investment,
financial performance and stability, quality, technical ability,
experience, and other evaluation factors. The contract shall be
awarded to the responsible offeror whose proposal, following
negotiations, is determined to be the most advantageous to the
school district considering the guaranteed savings and other
evaluation factors set forth in the request for proposals.]
(i) Before [To obtain the best final offers, the school
district may allow proposal revisions after submissions and before
the award of the contract.
[(j) Prior to] entering into an energy savings performance
[a] contract [under this section], the board must require that the
cost savings projected by an offeror be reviewed by a licensed
professional engineer who is not an officer or employee of an
offeror for the contract under review or otherwise associated with
the contract or the offeror. An engineer who reviews a contract
shall maintain the confidentiality of any proprietary information
the engineer acquires while reviewing the contract. Sections
1001.053 and 1001.407, Occupations Code, apply [Section 19, The
Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
Statutes), applies] to work performed under the contract.
SECTION 5. Section 51.927, Education Code, as amended by
Chapter 573, Acts of the 77th Legislature, Regular Session, 2001,
is amended to read as follows:
Sec. 51.927. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR WATER
CONSERVATION MEASURES]. (a) In this section, "energy savings
performance contract" means a contract for energy or water
conservation measures to reduce energy or water consumption or
operating costs of institutional facilities in which the estimated
savings in utility costs resulting from the measures is guaranteed
to offset the cost of the measures over a specified period. The
term [The governing board of an institution of higher education may
enter into a contract for energy or water conservation measures to
reduce energy or water consumption or operating costs of
institutional facilities in accordance with this section.
[(b) A contract to which this section applies] includes a
contract for the installation or implementation of:
(1) insulation of a building structure and systems
within a building;
(2) storm windows or doors, caulking or weather
stripping, multiglazed windows or doors, heat-absorbing or
heat-reflective glazed and coated window or door systems, or other
window or door system modifications that reduce energy consumption;
(3) automatic energy control systems, including
computer software and technical data licenses;
(4) heating, ventilating, or air conditioning system
modifications or replacements that reduce energy or water
consumption;
(5) lighting fixtures that increase energy
efficiency;
(6) energy recovery systems;
(7) electric systems improvements;
(8) water-conserving fixtures, appliances, and
equipment or the substitution of non-water-using fixtures,
appliances, and equipment;
(9) water-conserving landscape irrigation equipment;
(10) landscaping measures that reduce watering
demands and capture and hold applied water and rainfall, including:
(A) landscape contouring, including the use of
berms, swales, and terraces; and
(B) the use of soil amendments that increase the
water-holding capacity of the soil, including compost;
(11) rainwater harvesting equipment and equipment to
make use of water collected as part of a storm-water system
installed for water quality control;
(12) equipment for recycling or reuse of water
originating on the premises or from other sources, including
treated municipal effluent;
(13) equipment needed to capture water from
nonconventional, alternate sources, including air conditioning
condensate or graywater, for nonpotable uses;
(14) metering equipment needed to segregate water use
in order to identify water conservation opportunities or verify
water savings; or
(15) other energy or water conservation-related
improvements or equipment, [(]including improvements or equipment
related to renewable energy or nonconventional water sources or
water reuse[)].
(b) The governing board of an institution of higher
education may enter into an energy savings performance contract in
accordance with this section.
(c) Each [All] energy or water conservation measure
[measures] must comply with current local, state, and federal
construction, plumbing, and environmental codes and regulations.
Notwithstanding [anything to the contrary in] Subsection (a) [(b)],
an energy savings performance [a] contract may [for energy or water
conservation measures shall] not include improvements or equipment
that allow or cause water from any condensing, cooling, or
industrial process or any system of nonpotable usage over which the
public water supply system officials do not have sanitary control,
to be returned to the potable water supply.
(d) The [entity with whom the] board may enter into energy
savings performance contracts only with entities that are [must be]
experienced in the design, implementation, and installation of the
energy or water conservation measures addressed by the contract.
(e) Before entering into an energy savings performance [a]
contract [for energy or water conservation measures], the board
shall require the provider of the energy or water conservation
measures to file with the board a payment and performance bond in
accordance with Chapter 2253, Government Code. The [that is in an
amount the] board may also require a separate bond to cover the
value of the guaranteed savings on [finds reasonable and necessary
to protect the interests of the institution and is conditioned on
the faithful execution of the terms of] the contract.
(f) The board may enter into an energy savings performance
[a] contract for a period of more than one year only [for energy or
water conservation measures with an entity] if the board finds that
the amount the institution would spend on the energy or water
conservation measures will not exceed the amount to be saved in
energy, water, wastewater, and operating costs over 15 years from
the date of installation. If the term of the [a] contract [for
energy or water conservation measures] exceeds one year, the
institution's [board's] contractual obligation in any year during
the term of the contract beginning after the final date of
installation may not exceed the total energy, water, wastewater,
and operating cost savings, including [but not limited to]
electrical, gas, water, wastewater, or other utility cost savings
and operating cost savings resulting from the measures [automatic
monitoring and control], as determined by the board in this
subsection, divided by the number of years in the contract term
beginning after the final date of installation. The board shall
consider all costs of the energy or water conservation measures,
including costs of design, engineering, installation, maintenance,
repairs, and debt service.
(g) An energy savings performance contract [Energy or water
conservation measures] may be financed:
(1) under a lease/purchase contract that has a term
not to exceed 15 years from the final date of installation and that
meets federal tax requirements for tax-free municipal leasing or
long-term financing, including a lease/purchase contract under the
master equipment lease purchase program administered by the Texas
Public Finance Authority under Chapter 1232, Government Code;
(2) with the proceeds of bonds; or
(3) under a contract with the provider of the energy or
water conservation measures that has a term not to exceed 15 years
from the final date of installation.
(h) An energy savings performance [A] contract [for energy
or water conservation measures] shall contain provisions requiring
[pursuant to which] the provider of the energy or water
conservation measures to guarantee [guarantees] the amount of the
savings to be realized by the institution of higher education under
the contract. [The Master Equipment Lease Purchase Program
operated by the Texas Public Finance Authority may be utilized by an
institution to fund a contract for energy or water conservation
measures so long as the costs of the energy or water conservation
measures, including costs of design, engineering, installation,
maintenance, repairs, and anticipated debt service requirements of
the Master Equipment Lease Purchase Program, do not exceed the
total energy and operating cost savings, as described in Subsection
(f), beginning after the final date of installation.]
(i) An energy savings performance [A] contract shall [under
this section may] be let according to the procedures established
for procuring certain professional services by Section 2254.004,
Government Code [under competitive sealed proposal procedures].
Notice of the request for qualifications [proposals] shall be given
in the manner provided by Section 2156.002 [for in Chapter 2156],
Government Code. The Texas Higher Education Coordinating Board, in
consultation with the State Energy Conservation Office [and the
Texas Energy Coordination Council] with regard to energy and water
conservation measures, shall establish guidelines and an approval
process for awarding energy savings performance contracts [awarded
under this section]. The guidelines must require that the cost
savings projected by an offeror be reviewed by a licensed
professional engineer who is not an officer or employee of an
offeror for the contract under review or otherwise associated with
the contract. An engineer who reviews a contract shall maintain the
confidentiality of any proprietary information the engineer
acquires while reviewing the contract. A contract is not required
to be reviewed or approved by the State Energy Conservation Office
[or Texas Energy Coordination Council]. Sections 1001.053 and
1001.407, Occupations Code, apply [Section 19, The Texas
Engineering Practice Act (Article 3271a, Vernon's Texas Civil
Statutes), applies] to work performed under the contract. [The
contract shall be awarded to the responsible offeror whose
proposal, following negotiations, is determined by the institution
to be the most advantageous to the institution considering the
guaranteed savings and other evaluation factors set forth in the
request for proposals, except that if the institution finds that no
offer is acceptable, it shall refuse all offers.]
(j) [In accordance with regulations adopted by the
institution, the institution may conduct discussions with offerors
who submit proposals and who are determined to be reasonably
qualified for the award of the contract. Offerors shall be treated
fairly and equally with respect to any opportunity for discussion
and revision of proposals. To obtain the best final offers, the
institution may allow proposal revisions after submissions and
before the award of the contract.
[(k) If provided in a request for proposals under Subsection
(i), proposals shall be opened in a manner that avoids disclosure of
the contents to competing offerors and keeps the proposals secret
during negotiations. All proposals are open for public inspection
after a contract is awarded unless the information is excepted from
disclosure under Chapter 552, Government Code.
[(l)] The legislature shall base an institution's
appropriation for energy, water, and wastewater costs during a
fiscal year on the sum of:
(1) the institution's estimated energy, water, and
wastewater costs for that fiscal year; and
(2) if an energy savings performance [a] contract
[under this section] is in effect, the institution's estimated net
savings resulting from the contract during the contract term,
divided by the number of years in the contract term.
SECTION 6. Section 54.619, Education Code, is amended by
adding Subsection (j) to read as follows:
(j) The board may temporarily suspend new enrollment in the
program on the request of the comptroller as the comptroller
considers necessary to ensure the actuarial soundness of the fund.
SECTION 7. Section 54.624, Education Code, is amended to
read as follows:
Sec. 54.624. SENIOR COLLEGE PLAN. (a) Through the senior
college plan, a prepaid tuition contract shall provide prepaid
tuition and required fees for the beneficiary to attend a public
senior college or university for a specified number of
undergraduate credit hours not to exceed the typical number of
hours required for a baccalaureate degree awarded by a public
senior college or university.
(b) When the beneficiary of a senior college plan prepaid
tuition contract enrolls in a public senior college or university,
the university shall accept as payment in full of the beneficiary's
tuition and required fees the lesser of:
(1) the amount of tuition and required fees charged by
the institution; or
(2) an amount paid by the board under the contract
equal to the weighted average amount of tuition and required fees of
all public senior colleges and universities for that semester or
other academic period as determined by the board.
(c) Each public senior college or university shall provide
the information requested by the board on or before June 1 each year
to assist the board in determining the weighted average amount of
tuition and required fees of all public senior colleges and
universities for each semester or other academic term of the
following academic year for purposes of this section.
SECTION 8. Section 403.016(f), Government Code, is amended
to read as follows:
(f)(1) Except as provided by Subdivisions [Subdivision] (2)
and (4) and subject to any limitation in rules adopted by the
comptroller, an automated clearinghouse, or the federal
government, the comptroller may use the electronic funds transfer
system to deposit payments only to one or more accounts of a payee
at one or more financial institutions, including credit unions.
(2) The comptroller may also use the electronic funds
transfer system to deposit a portion of an employee's gross pay into
the employee's account at a credit union as prescribed by
Subchapter G, Chapter 659.
(3) A single electronic funds transfer may contain
payments to multiple payees. Individual transfers or warrants are
not required for each payee.
(4) The comptroller may also use the electronic funds
transfer system to deposit a portion of an employee's gross pay into
an account of an eligible state employee organization for a
membership as prescribed by Subchapter G, Chapter 659.
SECTION 9. Section 403.027(g), Government Code, is amended
to read as follows:
(g) In this section, "digital signature" means an
electronic identifier intended by the person using it to have the
same force and effect as the use of a manual signature [has the
meaning assigned by Section 2.108(d), Business & Commerce Code].
SECTION 10. Section 403.054, Government Code, is amended by
amending Subsection (b) and adding Subsection (i) to read as
follows:
(b) The comptroller may not issue a replacement warrant if:
(1) the comptroller has paid the original warrant,
unless the comptroller:
(A) has received [obtained] a refund of the
payment; or
(B) is satisfied that the state agency on whose
behalf the comptroller issued the original warrant has taken
reasonable steps to obtain a refund of the payment;
(2) the period during which the comptroller may pay
the original warrant has expired under Section 404.046 or other
applicable law;
(3) the payee of the replacement warrant is not the
same as the payee of the original warrant; or
(4) the comptroller is prohibited by a payment law
[Section 403.055 or 481.0841, or by Section 57.48, Education Code,]
from issuing a warrant to the payee of the replacement warrant.
(i) In this section, "payment law" means:
(1) Section 403.055;
(2) Section 57.48, Education Code;
(3) Section 231.007, Family Code; or
(4) any similar law that prohibits the comptroller
from issuing a warrant or initiating an electronic funds transfer
to a person.
SECTION 11. Sections 403.092(a) and (b), Government Code,
are amended to read as follows:
(a) To allow efficient management of the cash flow of the
general revenue fund and to avoid a temporary cash deficiency in
that fund, the comptroller may transfer available [surplus] cash,
except constitutionally dedicated revenues, between funds that are
managed by or in the custody of the comptroller [state treasury].
As soon as practicable the comptroller shall return the available
[surplus] cash to the fund from which it was transferred. The
comptroller shall preserve the [fund] equity of the fund from which
the cash was transferred and shall allocate the earned [depository]
interest as if the transfer had not been made.
(b) If the comptroller submits a statement under Article
III, Section 49a, of the Texas Constitution when available
[surplus] cash transferred under Subsection (a) is in the general
revenue fund, the comptroller shall indicate in that statement that
the transferred available [surplus] cash is in the general revenue
fund, is a liability of that fund, and is not available for
appropriation by the legislature except as necessary to return cash
to the fund from which it was transferred as required by Subsection
(a).
SECTION 12. Sections 403.1042(b), (c), (e), and (f),
Government Code, are amended to read as follows:
(b) The advisory committee is composed of 11 members
appointed [by the advisory committee] as follows:
(1) one member appointed [nominated] by the
comptroller to represent a public hospital or hospital district
located in a county with a population of 50,000 or less or a public
hospital owned or maintained by a municipality;
(2) one member appointed [nominated] by the political
subdivision that, in the year preceding the appointment, received
the largest annual distribution paid from the account;
(3) one member appointed [nominated] by the political
subdivision that, in the year preceding the appointment, received
the second largest annual distribution paid from the account;
(4) four members appointed [nominated] by political
subdivisions that:
(A) in the year preceding the appointment,
received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th
largest annual distribution paid from the account; and
(B) do not have an appointee [a nominee] serving
on the advisory committee at the time of appointment;
(5) one member appointed [nominated] by the County
Judges and Commissioners Association of Texas;
(6) one member appointed [nominated] by the North and
East Texas County Judges and Commissioners Association;
(7) one member appointed [nominated] by the South
Texas County Judges and Commissioners Association; and
(8) one member appointed [nominated] by the West Texas
County Judges and Commissioners Association.
(c) A commissioners court that sets the tax rate for a
hospital district must approve any person appointed [nominated] by
the hospital district to serve on the advisory committee.
(e) Except as provided by this subsection, members
[Members] of the advisory committee serve staggered six-year terms
expiring on August 31 of each odd-numbered year. A member of the
advisory committee whose term expires or who attempts to resign
from the committee remains a member of the committee until the
member's successor is appointed.
(f) An individual or entity authorized to make an
appointment [or nominate someone for appointment] to the advisory
committee created under this section shall attempt to appoint [or
nominate] persons who represent the gender composition, minority
populations, and geographic regions of the state.
SECTION 13. Section 404.024, Government Code, is amended by
amending Subsection (b) and adding Subsection (l) to read as
follows:
(b) State funds not deposited in state depositories shall be
invested by the comptroller in:
(1) direct security repurchase agreements;
(2) reverse security repurchase agreements;
(3) direct obligations of or obligations the principal
and interest of which are guaranteed by the United States;
(4) direct obligations of or obligations guaranteed by
agencies or instrumentalities of the United States government;
(5) bankers' acceptances that:
(A) are eligible for purchase by the Federal
Reserve System;
(B) do not exceed 270 days to maturity; and
(C) are issued by a bank that has received the
highest short-term credit rating by a nationally recognized
investment rating firm;
(6) commercial paper that:
(A) does not exceed 270 days to maturity; and
(B) except as provided by Subsection (i), has
received the highest short-term credit rating by a nationally
recognized investment rating firm;
(7) contracts written by the treasury in which the
treasury grants the purchaser the right to purchase securities in
the treasury's marketable securities portfolio at a specified price
over a specified period and for which the treasury is paid a fee and
specifically prohibits naked-option or uncovered option trading;
(8) direct obligations of or obligations guaranteed by
the Inter-American Development Bank, the International Bank for
Reconstruction and Development (the World Bank), the African
Development Bank, the Asian Development Bank, and the International
Finance Corporation that have received the highest credit rating by
a nationally recognized investment rating firm;
(9) bonds issued, assumed, or guaranteed by the State
of Israel;
(10) obligations of a state or an agency, county,
city, or other political subdivision of a state;
(11) mutual funds secured by obligations that are
described by Subdivisions (1) through (6), including pooled funds:
(A) established by the Texas Treasury
Safekeeping Trust Company;
(B) operated like a mutual fund; and
(C) with portfolios consisting only of
dollar-denominated securities; and
(12) foreign currency for the sole purpose of
facilitating investment by state agencies that have the authority
to invest in foreign securities.
(l) The comptroller may lend securities under procedures
established by the comptroller. The procedures must be consistent
with industry practice and must include a requirement to fully
secure the loan with cash, obligations, or a combination of cash and
obligations. In this subsection, "obligation" means an item
described by Subsections (b)(1)-(6).
SECTION 14. Section 404.102, Government Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) The comptroller may incorporate a special-purpose trust
company called the Texas Treasury Safekeeping Trust Company. The
purposes of the trust company are to provide a means for the
comptroller to obtain direct access to services provided by the
Federal Reserve System and to enable the comptroller to manage,
disburse, transfer, safekeep, and invest funds and securities more
efficiently and economically by using established and reasonable
financial practices, including the pooling of funds and the lending
of securities to the extent practical or necessary. The
comptroller may deposit funds and securities with the trust company
to achieve its purpose.
(c) The trust company may establish government investment
pools consisting of state agency funds not required to be deposited
in the state treasury and local government funds that are placed
into the pools for investment or reinvestment by the trust company.
A state agency or local government may place funds into the pools
for investment or reinvestment as authorized by Subsection (a) or
other law. In this subsection, "local government" and "state
agency" have the meanings assigned by Section 2256.002.
SECTION 15. Section 404.107(b), Government Code, is amended
to read as follows:
(b) A participant that has money or securities on [Agencies
and local political subdivisions of the state and nonprofit
corporations, foundations, and other charitable organizations
created on behalf of the state or an agency or local political
subdivision of the state that are authorized or required to]
deposit [money and securities] with the trust company shall pay the
fees provided in [established on] the trust company's fee schedule
developed under Section 404.103(f). The trust company may:
(1) deduct a fee from the principal or earning of a
participant on deposit with the trust company; or
(2) require a participant to pay a fee from an amount
not on deposit with the trust company.
SECTION 16. Section 404.123(b), Government Code, is amended
to read as follows:
(b) The committee may impose a limit on the sum of the total
amount of the notes outstanding and the total outstanding liability
of the general revenue fund under Section 403.092 [may not at any
time exceed 25 percent of the taxes and revenues to be credited to
the general revenue fund for the fiscal year as determined by the
comptroller, based on the certification made by the comptroller in
the enactment of the General Appropriations Act applicable to that
fiscal year].
SECTION 17. Chapter 447, Government Code, as amended by
Chapters 573, 1158, and 1398, Acts of the 77th Legislature, Regular
Session, 2001, is reenacted to read as follows:
CHAPTER 447. STATE ENERGY CONSERVATION OFFICE
Sec. 447.001. GOVERNANCE AND GENERAL AUTHORITY. The state
energy conservation office:
(1) is under the direction and control of the
comptroller;
(2) shall promote the policies enumerated in this
chapter; and
(3) may act in any capacity authorized by state or
federal law.
Sec. 447.002. INFORMATION; PROCEDURES AND RULES; MEASURES
AND PROGRAMS. (a) The state energy conservation office shall
develop and provide energy and water conservation information for
the state.
(b) The state energy conservation office may establish
procedures and adopt rules relating to the development and
implementation of energy and water conservation measures and
programs applicable to state buildings and facilities.
(c) A procedure established or a rule adopted under
Subsection (b) may include provisions relating to:
(1) the retrofitting of existing state buildings and
facilities with energy-saving or water-saving devices; and
(2) the energy-related or water-related renovation of
those buildings and facilities.
(d) To the extent that the governor receives money
appropriated for energy and water efficiency measures and programs,
the governor, through the state energy conservation office, shall
implement measures and programs that the state energy conservation
office identifies as encouraging energy or water conservation by
state government.
(e) A state agency shall implement an energy or water
conservation measure or program in accordance with plans developed
under Section 447.009.
(f) The state energy conservation office shall coordinate
all water conservation-related activities with the Texas Water
Development Board. The board shall assist the office in the
development of all proposed water conservation and reuse
requirements and provide training and expertise to the office
regarding water conservation issues.
Sec. 447.003. LIAISON TO FEDERAL GOVERNMENT. The state
energy conservation office is the state liaison to the federal
government for the implementation and administration of federal
programs relating to state agency energy matters. The office shall
administer state programs established under:
(1) Part D, Title III, Energy Policy and Conservation
Act (42 U.S.C. Section 6321 et seq.), and its subsequent
amendments;
(2) Part G, Title III, Energy Policy and Conservation
Act (42 U.S.C. Section 6371 et seq.), and its subsequent
amendments; and
(3) other federal energy conservation programs as
assigned to the office by the governor or the legislature.
Sec. 447.004. DESIGN STANDARDS. (a) The state energy
conservation office shall establish and publish mandatory energy
and water conservation design standards for each new state building
or major renovation project, including a new building or major
renovation project of a state-supported institution of higher
education. The office shall define "major renovation project" for
purposes of this section and shall review and update the standards
biennially.
(b) The standards established under Subsection (a) must:
(1) include performance and procedural standards for
the maximum energy and water conservation allowed by the latest and
most cost-effective technology that is consistent with the
requirements of public health, safety, and economic resources;
(2) be stated in terms of energy and water consumption
levels;
(3) consider the various types of building uses; and
(4) allow for design flexibility.
(c) Any procedural standard established under this section
must be directed toward specific design and building practices that
produce good thermal resistance and low infiltration and toward
requiring practices in the design of mechanical and electrical
systems that maximize energy and water efficiency. The procedural
standards must address, as applicable:
(1) insulation;
(2) lighting;
(3) ventilation;
(4) climate control;
(5) water-conserving fixtures, appliances, and
equipment or the substitution of non-water-using fixtures,
appliances, and equipment;
(6) water-conserving landscape irrigation equipment;
(7) landscaping measures that reduce watering demands
and capture and hold applied water and rainfall, including:
(A) landscape contouring, including the use of
berms, swales, and terraces; and
(B) the use of soil amendments that increase the
water-holding capacity of the soil, including compost;
(8) rainwater harvesting equipment and equipment to
make use of water collected as part of a storm-water system
installed for water quality control;
(9) equipment for recycling or reusing water
originating on the premises or from other sources, including
treated municipal effluent;
(10) equipment needed to capture water from
nonconventional, alternate sources, including air conditioning
condensate or graywater, for nonpotable uses;
(11) metering equipment needed to segregate water use
in order to identify water conservation opportunities or verify
water savings;
(12) special energy requirements of health-related
facilities of higher education and state agencies; and
(13) any other item that the state energy conservation
office considers appropriate.
(d) A state agency or an institution of higher education
shall submit a copy of its design and construction manuals to the
state energy conservation office as the office considers necessary
to demonstrate compliance by the agency or institution with the
standards established under this section.
(e) A state agency or an institution of higher education may
not begin construction of a new state building or a major renovation
project before the design architect or engineer for the
construction or renovation has:
(1) certified to the agency or institution that the
construction or renovation complies with the standards established
under this section; and
(2) provided a copy of that certification to the state
energy conservation office.
Sec. 447.005. ENERGY AND WATER EFFICIENCY PROJECTS.
Subject to applicable state and federal laws or guidelines, the
state energy conservation office may:
(1) implement an energy or water efficiency project at
a state agency; or
(2) assist the agency in implementing the project
through an energy or water efficiency program.
Sec. 447.006. ADDITIONAL ENERGY AND WATER SERVICES. (a)
The state energy conservation office may provide additional energy
and water services, including:
(1) training of designated state employees in energy
and water management, energy-accounting techniques,
water-accounting techniques, and energy efficient and water
efficient design and construction;
(2) technical assistance regarding energy efficient
and water efficient capital improvements, energy efficient and
water efficient building design, and cogeneration and thermal
storage investments;
(3) technical assistance to the state auditor or a
state agency regarding energy and water management performance
audits and the monitoring of utility bills to detect billing
errors;
(4) technical assistance to a state agency regarding
third-party financing of an energy efficient and water efficient
capital improvement project; and
(5) other energy-related and water-related assistance
that the office considers appropriate, if the assistance is
requested by a state agency, an institution of higher education, a
consortium of institutions of higher education, or another
governmental entity created by state law.
(b) Using available state, federal, or oil overcharge
funds, the state energy conservation office may provide technical
assistance to a state agency or an institution of higher education
in analyzing or negotiating rates for electricity or natural gas
supplies from a locally certificated electric supplier, a natural
gas supplier, or a state-owned energy resource, including a
transportation charge for natural gas.
(c) A state agency or an institution of higher education may
request the assistance of the state energy conservation office
before negotiating or contracting for the supply or transportation
of natural gas or electricity.
(d) A state agency or an institution of higher education
with expertise in rate analysis, negotiation, or any other matter
related to the procurement of electricity and natural gas supplies
from a locally certificated electric supplier, a natural gas
supplier, or a state-owned energy resource may assist the state
energy conservation office whenever practicable. The attorney
general on request shall assist the office and other state agencies
and institutions of higher education in negotiating rates for
electricity and other terms of electric utility service.
(e) Using available funds from any source, the state energy
conservation office may assist a state agency, an institution of
higher education, a consortium of institutions of higher education,
or another governmental entity created by state law to further the
goals and pursue the policies of the state in energy research as may
be determined by the governor or the legislature. The office may
assist a state agency in implementing current federal energy
policy.
(f) The state energy conservation office on request may
negotiate rates for electricity and other terms of electric utility
service for a state agency or an institution of higher education.
The office also may negotiate the rates and the other terms of
service for a group of agencies or institutions in a single
contract.
(g) The state energy conservation office may analyze the
rates for electricity charged to and the amount of electricity used
by state agencies and institutions of higher education to determine
ways the state could obtain lower rates and use less electricity.
Each state agency, including the Public Utility Commission of
Texas, and institution of higher education shall assist the office
in obtaining the information the office needs to perform its
analysis.
Sec. 447.007. ENERGY AND WATER AUDITS. (a) The state
energy conservation office may audit a state-owned building used by
a state agency to assist the agency in reducing energy and water
consumption and costs through improved energy and water efficiency.
(b) Based on any audit performed under Subsection (a), the
state energy conservation office may recommend changes to improve
energy and water efficiency.
(c) Each state agency or institution of higher education
shall review and audit utility billings and contracts to detect
billing errors. Any contract with a private person to conduct the
review or audit must comply with all applicable provisions of
Subchapter A, Chapter 2254, regarding professional services
contracts. The contract may not be awarded on a contingent fee
basis unless the governor determines that the contract is
necessary, reasonable, and prudent.
Sec. 447.008. ENERGY-SAVING AND WATER-SAVING DEVICES OR
MEASURES. (a) On approval by the state energy conservation office,
a state agency that reduces its energy or water expenses may use any
funds saved by the agency from appropriated utility funds for the
purchase of an energy-saving or water-saving device or measure.
For purposes of this section, "energy-saving or water-saving device
or measure" means a device or measure that directly reduces:
(1) energy or water costs; or
(2) the energy or water consumption of equipment,
including a lighting, heating, ventilation, air-conditioning
system, or other water-using system, without materially altering
the quality of the equipment.
(b) A state agency, in accordance with the recommendations
of an energy or water audit, may purchase energy-saving and
water-saving devices or measures from appropriated utility funds if
the savings in utility funds projected by the audit will offset the
purchase. The agency shall retain in its files a copy of the
recommendation and repayment schedule as evidence of the projected
savings.
Sec. 447.009. ENERGY AND WATER MANAGEMENT PLANNING. (a)
The state energy conservation office shall provide energy and water
management planning assistance to a state agency or an institution
of higher education, including:
(1) preparation by the agency or institution of a
long-range plan for the delivery of reliable, cost-effective
utility services for the state agency or institution;
(2) assistance to the Department of Public Safety for
energy emergency contingency planning, using state or federal funds
when available;
(3) assistance to each state agency or institution of
higher education in preparing comprehensive energy and water
management plans; and
(4) assistance to state agencies other than
institutions of higher education in meeting the requirements of
Section 447.002, including assistance in scheduling and assigning
priorities to implementation plans to ensure that state agencies
adopt qualified cost-effective efficiency measures and programs
for all state facilities not later than September 1, 2006.
(b) A state agency or an institution of higher education
shall develop the plan described in Subsection (a)(1) and submit
the plan to the state energy conservation office upon request. The
agency or institution shall use the plan in preparing its five-year
construction and major renovation plans. After other energy-saving
or water-saving alternatives are considered, district heating and
cooling or on-site generation of electricity may be considered in
planning for reliable, efficient, and cost-effective utility
services.
(c) The state energy conservation office shall prepare
guidelines for preparation of the plan described in Subsection
(a)(3). A state agency or an institution of higher education that
occupies a state-owned building shall prepare and implement a
five-year energy and water management plan and shall submit that
plan to the office upon request. The agency or institution shall
update its plan biennially. A state agency or an institution of
higher education that occupies a building not owned by the state
shall cooperate with the office in addressing the energy or water
management of that building.
(d) The comprehensive energy and water management plan
described in Subsection (a)(3) shall be included in the five-year
construction and major repair and rehabilitation plans for
institutions of higher education as required by Section 61.0651,
Education Code.
SECTION 18. Subchapter G, Chapter 659, Government Code, is
amended by adding Section 659.1031 to read as follows:
Sec. 659.1031. DEDUCTION OF MEMBERSHIP FEES FOR ELIGIBLE
STATE EMPLOYEE ORGANIZATIONS. (a) An employee of a state agency
may authorize in writing a deduction each pay period from the
employee's salary or wage payment for payment to an eligible state
employee organization of a membership fee in the organization.
(b) In this section, "eligible state employee organization"
means a state employee organization with a membership of at least
2,000 active or retired state employees who hold or who have held
certification from the Commission on Law Enforcement Officer
Standards and Education.
SECTION 19. Section 659.104(a), Government Code, is amended
to read as follows:
(a) An authorization for a deduction under this subchapter
must direct the comptroller or, if applicable, the appropriate
financial officer of an institution of higher education to transfer
the withheld funds to the program, eligible state employee
organization, or credit union designated by the employee.
SECTION 20. Section 659.110, Government Code, is amended to
read as follows:
Sec. 659.110. RULES. The comptroller may establish
procedures and adopt rules to administer the credit union and the
eligible state employee organization membership fee deduction
programs [program] authorized by this subchapter.
SECTION 21. Section 659.253, Government Code, is amended to
read as follows:
Sec. 659.253. TRANSFER WITHIN AGENCY FROM EXEMPT TO
CLASSIFIED POSITION. (a) Except as provided by Subsection (b), a
[A] state employee who transfers [moves] within a state agency from
an exempt [a] position [exempt from the state's position
classification plan] to a classified position is entitled to [will]
receive an annual salary in the [proper] salary group to which the
classified position is allocated.
(b) During the fiscal biennium in which a state employee
transfers within a state agency from an exempt position to a
classified position, the employee's annual salary rate after the
transfer may not [to] exceed:
(1) the rate for the salary step equal to the rate
received by the employee when holding the [employee's current]
exempt position [salary] or the rate for the next higher salary
step, if the classified position is allocated [moving] to a
[position in a] salary group that is divided into steps; or
(2) the rate received by the employee when holding the
[employee's current] exempt position [salary] or the maximum rate
of the [new] salary group to which the classified position is
allocated, whichever is lower, if the classified position is
allocated to [moving to a position in] a salary group that is not
divided into steps.
[(b) Except as provided by this section, a state agency that
at any time during a state fiscal biennium pays a state employee an
exempt salary specifically established in the General
Appropriations Act may not subsequently during the state fiscal
biennium pay the employee a greater salary under Salary Schedule A,
B, or C of the General Appropriations Act.]
(c) A merit salary increase for [state agency that pays] a
state employee who transfers to a classified position from an
exempt position for which the [an exempt] salary is specifically
established in the General Appropriations Act [and that then
transfers the employee to a position in which the employee is paid
under Salary Schedule A, B, or C of the General Appropriations Act]
may not take effect if:
(1) the employee has spent less than [grant a merit
salary increase to the employee until at least] six months in the
classified position; or
(2) the increase would cause the salary limitation
prescribed by Subsection (b) to be exceeded [after the date that the
agency begins to pay the employee under Salary Schedule A, B, or C
of the General Appropriations Act].
(d) The Legislative Budget Board and the governor together
may approve an exception to the salary limitations prescribed by
Subsection (b) [this section] for a state employee:
(1) on receiving the employing state agency's
application for the exception; and
(2) if the employee's job responsibilities with the
state agency have changed substantially during the [state fiscal]
biennium.
(e) In this section:
(1) "Classified position" means a position classified
under the state's position classification plan.
(2) "Exempt position" means a position exempt from the
state's position classification plan.
SECTION 22. Subchapter K, Chapter 659, Government Code, is
amended by adding Section 659.2531 to read as follows:
Sec. 659.2531. TRANSFER WITHIN AGENCY BETWEEN CLASSIFIED
POSITIONS ALLOCATED TO SAME SALARY GROUP. (a) In this section:
(1) "Classified position" means a position classified
under the state's position classification plan.
(2) "Transfer" means the transfer of a state employee
within a state agency between two classified positions that:
(A) are allocated to the same salary group; and
(B) have different position titles as listed in
the General Appropriations Act.
(b) Except as provided by Subsection (c), a state employee's
annual salary rate immediately after a transfer may not exceed:
(1) the rate for the salary step that is one step
higher than the salary step at which the employee was paid
immediately before the transfer, if the classified position to
which the employee transfers is allocated to a salary group that is
divided into steps; or
(2) 103.4 percent of the employee's annual salary rate
immediately before the transfer, if the classified position to
which the employee transfers is allocated to a salary group that is
not divided into steps.
(c) A state employee's annual salary rate immediately after
a transfer may not exceed the maximum rate for the appropriate
salary group.
SECTION 23. Section 659.255, Government Code, is amended to
read as follows:
Sec. 659.255. MERIT SALARY INCREASES; ONE-TIME MERIT
PAYMENTS. (a) In this [This] section:
(1) "Classified employee" means a state employee who
holds a classified position.
(2) "Classified position" means a position [applies
only to positions] classified under the state's position
classification plan.
(3) "Merit salary increase" means an increase in
compensation to:
(A) a higher step rate in the same classified
salary group, if the classified employee is compensated under
Salary Schedule A of the General Appropriations Act; or
(B) a higher rate within the range of the same
classified salary group, if the classified employee is compensated
under Salary Schedule B of the General Appropriations Act.
(b) [A state agency administrator may grant merit salary
increases including one-time merit payments to employees
compensated under Salary Schedules A and B of the General
Appropriations Act whose job performance and productivity are
consistently above that normally expected or required. For
classified employees compensated under Salary Schedule A of the
General Appropriations Act, a merit increase involves an increase
in an employee's salary to a higher step rate in the same salary
group. For classified employees compensated under Salary Schedule
B of the General Appropriations Act, a merit increase involves an
increase in an employee's salary to a higher rate within the range
of the same salary group. Merit increases including one-time merit
payments are subject to the restrictions prescribed by Subsections
(c)-(e).
[(c)] The comptroller shall prescribe accounting and
reporting procedures as necessary to ensure the availability of
information reflecting each state agency's use of merit salary
increases, including one-time merit payments.
(c) Each state agency shall establish:
(1) a procedure for determining the eligibility of a
classified employee to receive a merit salary increase or a
one-time merit payment from the agency; and
(2) requirements for substantiating the eligibility
of a classified employee who receives a merit salary increase or a
one-time merit payment from the agency.
(d) Merit salary increases and [including] one-time merit
payments shall be applied throughout the range of classified salary
groups used by each state agency.
(e) A state agency may award a merit salary increase to a
classified employee in relation to the employee's performance in
the current classified position held by the employee if [For an
employee to be eligible for a merit salary increase or a one-time
merit payment, the following additional criteria must be met]:
(1) the employee has [must have] been employed by the
[state] agency in that position for at least six continuous months
before [prior to] the effective date [award] of the increase [or
payment];
(2) the effective date of the increase is at least six
months after the effective date of the employee's [must have
elapsed since the employee's] last:
(A) promotion; [, enhanced compensation award
authorized by the General Appropriations Act, one-time merit
payment,] or
(B) merit salary increase for performance in that
position [at the agency]; [and]
(3) the agency has complied with Subsection (c);
(4) the employee's job performance and productivity in
that position are consistently above that normally expected or
required; and
(5) the effective date of the increase is at least six
months after the effective date of the agency's last:
(A) payment to the employee of an enhanced
compensation award authorized by the General Appropriations Act; or
(B) one-time merit payment for performance in
that position.
(f) A state agency may make a one-time merit payment to a
classified employee in relation to the employee's performance in
the current classified position held by the employee if:
(1) the employee has been employed by the agency in
that position for at least six continuous months before the
effective date of the payment;
(2) the effective date of the payment is at least six
months after the effective date of the employee's last:
(A) promotion; or
(B) merit salary increase for performance in that
position;
(3) the agency has complied with Subsection (c);
(4) the employee's job performance and productivity in
that position are consistently above that normally expected or
required; and
(5) the effective date of the payment is at least six
months after the effective date of the agency's last:
(A) payment to the employee of an enhanced
compensation award authorized by the General Appropriations Act; or
(B) one-time merit payment for performance in
that position. [criteria for granting merit salary increases or
one-time merit payments must include specific criteria and
documentation to substantiate the granting of a merit increase or
one-time merit payment.]
SECTION 24. Subchapter K, Chapter 659, Government Code, is
amended by adding Section 659.262 to read as follows:
Sec. 659.262. ADMINISTRATION. The comptroller may
establish procedures and adopt rules to administer this subchapter.
SECTION 25. Section 661.152(d), Government Code, is amended
to read as follows:
(d) An employee accrues vacation leave and may carry
vacation leave forward from one fiscal year to the next in
accordance with the following schedule: Maximum Hours
Carried Forward
Hours Accrued From One Fiscal
Per Month for Year to the Nex
Employees With Total Full-time for a Full-time
State Employment of: Employment Employee
the comptroller;
[(3)] the Legislative Reference Library;
(3) [(4)] the state auditor; and
(4) [(5)] the Legislative Budget Board.
(b) A state agency's annual report must cover an entire
fiscal year. The agency shall submit the report not later than
December 31 of each year [the date and in the form prescribed by the
comptroller].
SECTION 28. Section 2113.205(b), Government Code, is
amended to read as follows:
(b) The comptroller may authorize a [A] state agency to
[may] use money appropriated for a particular fiscal year to pay the
entire cost or amount of a service, including an Internet
connection, a periodical subscription, a maintenance contract, a
post office box rental, insurance, or a surety or honesty bond,
regardless of whether the service is provided over [it covers] more
than one fiscal year.
SECTION 29. Section 2162.001, Government Code, is amended
to read as follows:
Sec. 2162.001. DEFINITIONS [DEFINITION]. In this chapter:
(1) "Council" [, "council"] means the State Council on
Competitive Government.
(2) "Local government" means a county, municipality,
special district, school district, junior college district, or
other legally constituted political subdivision of the state.
SECTION 30. Section 2162.102, Government Code, is amended
by adding Subsection (d) to read as follows:
(d) To the extent the council determines is feasible, a
local government may voluntarily participate in a contract awarded
by the council or a state agency under this chapter. A local
government that purchases a good or a service under a contract
awarded under this chapter is considered to have satisfied any
state law requiring the local government to follow a competitive
purchasing procedure for the purchase.
SECTION 31. Section 2166.406, Government Code, as amended
by Chapter 573, Acts of the 77th Legislature, Regular Session,
2001, is amended to read as follows:
Sec. 2166.406. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR
WATER CONSERVATION MEASURES]. (a) In this section, "energy
savings performance contract" means a contract for energy or water
conservation measures to reduce energy or water consumption or
operating costs of governmental facilities in which the estimated
savings in utility costs resulting from the measures is guaranteed
to offset the cost of the measures over a specified period. The term
[Notwithstanding any other provisions of this chapter, the
governing body of a state agency, without the consent of the
commission, may enter into a contract for energy conservation
measures to reduce energy or water consumption or operating costs
of governmental facilities in accordance with this section.
[(b) A contract authorized under this section] includes a
contract for the installation of:
(1) insulation of a [the] building structure and
systems within the building;
(2) storm windows or doors, caulking or weather
stripping, multiglazed windows or doors, heat absorbing or heat
reflective glazed and coated window or door systems, or other
window or door system modifications that reduce energy consumption;
(3) automatic energy control systems, including
computer software and technical data licenses;
(4) heating, ventilating, or air-conditioning system
modifications or replacements that reduce energy or water
consumption;
(5) lighting fixtures that increase energy
efficiency;
(6) energy recovery systems;
(7) electric systems improvements;
(8) water-conserving fixtures, appliances, and
equipment or the substitution of non-water-using fixtures,
appliances, and equipment;
(9) water-conserving landscape irrigation equipment;
(10) landscaping measures that reduce watering
demands and capture and hold applied water and rainfall, including:
(A) landscape contouring, including the use of
berms, swales, and terraces; and
(B) the use of soil amendments that increase the
water-holding capacity of the soil, including compost;
(11) rainwater harvesting equipment and equipment to
make use of water collected as part of a storm-water system
installed for water quality control;
(12) equipment for recycling or reuse of water
originating on the premises or from other sources, including
treated municipal effluent;
(13) equipment needed to capture water from
nonconventional, alternate sources, including air conditioning
condensate or graywater, for nonpotable uses;
(14) metering equipment needed to segregate water use
in order to identify water conservation opportunities or verify
water savings; or
(15) other energy or water conservation-related
improvements or equipment including improvements or equipment
related to renewable energy or nonconventional water sources or
water reuse.
(b) Notwithstanding any other provision of this chapter, a
state agency, without the consent of the commission, may enter into
an energy savings performance contract in accordance with this
section.
(c) Each [All] energy or water conservation measure
[measures] must comply with current local, state, and federal
construction, plumbing, and environmental codes and regulations.
Notwithstanding [anything to the contrary in] Subsection (a) [(b)],
an energy savings performance [a] contract may [for energy or water
conservation measures shall] not include improvements or equipment
that allow or cause water from any condensing, cooling, or
industrial process or any system of nonpotable usage over which the
public water supply system officials do not have sanitary control
to be returned to the potable water supply.
(d) A state agency may enter into energy savings performance
[The entity with whom the board] contracts only with a person who is
[must be] experienced in the design, implementation, and
installation of the energy or water conservation measures addressed
by the contract.
(e) Before entering into an energy savings performance [a]
contract [for energy or water conservation measures], a [the
governing body of the] state agency shall require the provider of
the energy or water conservation measures to file with the agency
[governing body] a payment and performance bond relating to the
installation of the measures in accordance with Chapter 2253. The
agency may also require a separate bond to cover the value of the
guaranteed savings on the contract [that is in an amount the
governing body finds reasonable and necessary to protect the
interests of the state agency and that is conditioned on the
faithful execution of the terms of the contract].
(f) The state agency may enter into an energy savings
performance [a] contract for a period of more than one year only
[for energy or water conservation measures with an entity] if the
state agency finds that the amount the state agency would spend on
the energy or water conservation measures will not exceed the
amount to be saved in energy, water, wastewater, and operating
costs over 15 years from the date of installation.
(g) An energy savings performance contract [Energy or water
conservation measures] with respect to existing buildings or
facilities may be financed:
(1) under a lease/purchase contract that has a term
not to exceed 15 years from the final date of installation and that
meets federal tax requirements for tax-free municipal leasing or
long-term financing, including a lease/purchase contract under the
master equipment lease purchase program administered by the Texas
Public Finance Authority under Chapter 1232;
(2) with the proceeds of bonds; or
(3) under a contract with the provider of the energy or
water conservation measures that has a term not to exceed 15 years
from the final date of installation.
(h) An energy savings performance [A] contract [for energy
or water conservation measures] shall contain provisions requiring
[pursuant to which] the provider of the energy or water
conservation measures to guarantee [guarantees] the amount of the
savings to be realized by the state agency under the contract. If
the term of the [a] contract [for energy or water conservation
measures] exceeds one year, the agency's contractual obligation,
including costs of design, engineering, installation, and
anticipated debt service, in any one year during the term of the
contract beginning after the final date of installation may not
exceed the total energy, water, wastewater, and operating cost
savings, including [but not limited to] electrical, gas, water,
wastewater, or other utility cost savings and operating cost
savings resulting from the measures [automatic monitoring and
control], as determined by the state agency in this subsection,
divided by the number of years in the contract term.
(i) An energy savings performance [A] contract shall [under
this section may] be let according to the procedures established
for procuring certain professional services by Section 2254.004
[under competitive sealed proposal procedures]. Notice of the
request for qualifications [proposals] shall be given in the manner
provided by Section 2156.002 [for in Chapter 2156]. The State
Energy Conservation Office shall establish guidelines and an
approval process for awarding energy savings performance contracts
[awarded under this section]. The guidelines adopted under this
subsection must require that the cost savings projected by an
offeror be reviewed by a licensed professional engineer who is not
an officer or employee of an offeror for the contract under review
or otherwise associated with the contract. An engineer who reviews
a contract shall maintain the confidentiality of any proprietary
information the engineer acquires while reviewing the contract. An
energy savings performance contract may not be entered into unless
the contract has been approved by the State Energy Conservation
Office. Sections 1001.053 and 1001.407, Occupations Code, apply
[Section 19, The Texas Engineering Practice Act (Article 3271a,
Vernon's Texas Civil Statutes), applies] to work performed under
the contract. [The contract shall be awarded to the responsible
offeror whose proposal, following negotiations, is determined to be
the most advantageous to the state agency considering the savings
and other evaluation factors set forth in the request for proposals
except that if the state agency finds that no offer is acceptable,
it shall refuse all offers.]
(j) [In accordance with regulations adopted by the state
agency, the state agency may conduct discussions with offerors who
submit proposals and who are determined to be reasonably qualified
for the award of the contract. Offerors shall be treated fairly and
equally with respect to any opportunity for discussion and revision
of proposals.
[(k) If provided in a request for proposals, proposals shall
be opened in a manner that avoids disclosure of the contents to
competing offerors and keeps the proposals secret during
negotiations. All proposals are open for public inspection after a
contract is awarded unless the information is excepted from
disclosure under Chapter 552.
[(l) To obtain the best final offers, the state agency may
allow proposal revisions after submissions and before the award of
a contract for energy or water conservation measures. Final review
and approval of the contract will be provided by the State Energy
Conservation Office.
[(m)] The legislature shall base an agency's appropriation
for energy, water, and wastewater costs during a fiscal year on the
sum of:
(1) the agency's estimated energy, water, and
wastewater costs for that fiscal year; and
(2) if an energy savings performance [a] contract
[under this section] is in effect, the agency's estimated net
savings resulting from the contract during the contract term,
divided by the number of years in the contract term.
SECTION 32. Section 2251.025(b), Government Code, is
amended to read as follows:
(b) The rate of interest that [Interest] accrues on an
overdue payment is [at] the rate in effect on September 1 of the
fiscal year in which the payment becomes overdue. The rate in
effect on September 1 is equal to the sum of:
(1) one percent; and
(2) the prime rate as published in the Wall Street
Journal on the first day of July of the preceding fiscal year that
does not fall on a Saturday or Sunday [each month].
SECTION 33. Section 2252.903(e), Government Code, is
amended by adding Subdivision (4) to read as follows:
(4) "Written contract" does not include a contract the
payments for which must be made through the comptroller's issuance
of warrants or initiation of electronic funds transfers under
Section 404.046, 404.069, or 2103.003.
SECTION 34. Section 2305.012, Government Code, is amended
to read as follows:
Sec. 2305.012. ADMINISTRATION [STAFF]; ASSISTANCE. (a)
The energy office shall [provide staff to] implement and administer
this chapter.
(b) The energy office or the governor through the energy
office may [also] enlist the assistance of a private entity or a
state agency, department, commission, or other entity to:
(1) evaluate or review a proposal;
(2) audit a program participant or a supervising state
agency;
(3) perform administrative duties under this chapter;
or
(4) develop eligibility or evaluation criteria.
SECTION 35. Section 2305.032(a), Government Code, is
amended to read as follows:
(a) The energy office under the loanstar revolving loan
program may [approve and finance projects that] provide loans to
finance energy and water efficiency measures for public facilities
[eligible applicants for energy-saving capital improvements.
Projects approved by the energy office should benefit:
[(1) a state agency or institution of higher
education;
[(2) a public school;
[(3) a political subdivision of the state;
[(4) a small to medium-sized business; and
[(5) a public or nonprofit hospital or health care
facility].
SECTION 36. Sections 2305.033(b) and (d), Government Code,
are amended to read as follows:
(b) In accordance with Part D, Title III [B], Energy Policy
and Conservation Act (42 U.S.C. Sec. 6321 et seq.), and its
subsequent amendments, the energy office, under the program, shall
distribute funds for projects that save measurable quantities of
energy.
(d) A proposal under Subsection (b) must:
(1) promote the conservation of energy; or [and]
(2) improve the efficient use of energy through
activities that result in quantifiable energy savings, including:
(A) energy audits of buildings;
(B) technical assistance in reducing energy
bills;
(C) training to building operators and fiscal
officers on various energy issues such as utility bill analysis and
energy management techniques; or [and]
(D) other technical assistance to programs for
which funds are appropriated.
SECTION 37. Section 2305.034, Government Code, is amended
to read as follows:
Sec. 2305.034. STATE AGENCIES PROGRAM. The energy office
is the supervising agency for the state agencies program that may
distribute funds through Chapter 447. Projects funded under this
section may include:
(1) energy manager training;
(2) energy savings performance contracting services,
including:
(A) education and training;
(B) contract review and approval;
(C) third-party contract review;
(D) development and dissemination of guidelines;
and
(E) identification of contract financing sources
[described by Section 51.927, Education Code];
(3) energy-efficient design assistance for new
facilities, including major renovation;
(4) projects for state building design standards
compliance;
(5) projects to create awareness of model energy codes
at the local and state levels;
(6) projects to develop and maintain the state's
utility database; and
(7) other appropriate energy and information
applications.
SECTION 38. Section 2305.039(b), Government Code, is
amended to read as follows:
(b) A project may:
(1) assist a service provider in providing services
such as:
(A) [traffic light synchronization;
[(B) fleet management;
[(C)] computerized transit routing that is
energy efficient;
(B) commuting solutions
[(D) car-care clinics;
[(E) vanpooling or ridesharing efforts]; and
(C) [(F)] public education related to mass
transit;
[(G) driver training in energy conservation
awareness; and
[(H) transportation services for the elderly or
persons with a disability;] and
(2) include studies to improve existing systems and
plan for future transportation systems in this state.
SECTION 39. Section 2306.783(a), Government Code, as added
by Chapter 432, Acts of the 77th Legislature, Regular Session,
2001, is amended to read as follows:
(a) The Texas Interagency Council for the Homeless is
composed of:
(1) one representative from each of the following
agencies, appointed by the administrative head of that agency:
(A) the Texas Department of Health;
(B) the Texas Department of Human Services;
(C) the Texas Department of Mental Health and
Mental Retardation;
(D) the Texas Department of Criminal Justice;
(E) the Texas Department on Aging;
(F) the Texas Rehabilitation Commission;
(G) the Texas Education Agency;
(H) the Texas Commission on Alcohol and Drug
Abuse;
(I) the Department of Protective and Regulatory
Services;
(J) the Health and Human Services Commission;
(K) the Texas Workforce Commission;
(L) the Texas Youth Commission; and
(M) the Texas Veterans Commission;
(2) [one representative from the office of the
comptroller appointed by the comptroller;
[(3)] two representatives from the department, one
each from the community affairs division and the housing finance
division, appointed by the director; and
(3) [(4)] three members representing service
providers to the homeless, one each appointed by the governor, the
lieutenant governor, and the speaker of the house of
representatives.
SECTION 40. Articles 4.51(2) and (13), Insurance Code, are
amended to read as follows:
(2) "Allocation date" means the date on which the
certified investors of a certified capital company are allocated
premium tax credits [certified capital] by the comptroller under
this subchapter.
(13) "State premium tax liability" means:
(A) any liability incurred by any person under
Subchapter A of this chapter; or
(B) if the tax liability imposed under Subchapter
A of this chapter on January 1, 2003 [2001], is eliminated or
reduced, any tax liability imposed on an insurance company or other
person that had premium tax liability under Subchapter A of this
chapter on that date.
SECTION 41. Article 4.52, Insurance Code, is amended to
read as follows:
Art. 4.52. DUTIES OF COMPTROLLER; RULES; IMPLEMENTATION.
The comptroller shall administer this subchapter and shall [may]
adopt rules and forms as necessary to implement this subchapter.
The rules must provide that:
(1) the comptroller shall begin accepting
applications for certification as a certified capital company not
later than the 30th day after the date the rules are adopted; and
(2) the comptroller shall accept premium tax credit
allocation claims on behalf of certified investors on a date not
later than the 120th day after the date the rules are adopted.
SECTION 42. Article 4.65(a), Insurance Code, is amended to
read as follows:
(a) A certified investor who makes an investment of
certified capital shall in the year of investment earn a vested
credit against state premium tax liability equal to 100 percent of
the certified investor's investment of certified capital, subject
to the limits imposed by this subchapter. Beginning with the tax
report due March 1, 2009, for the 2008 tax year, a [A] certified
investor may take up to 25 [10] percent of the vested premium tax
credit in any taxable year of the certified investor. The credit
may not be applied to estimated payments due in 2008.
SECTION 43. Article 4.66(a), Insurance Code, is amended to
read as follows:
(a) A premium tax credit allocation claim must be prepared
and executed by a certified investor on a form provided by the
comptroller. The certified capital company must file the claim with
the comptroller on the date on which the comptroller accepts
premium tax credit allocation claims on behalf of certified
investors under rules adopted under Article 4.52(2) of this code
[not later than February 15, 2002]. The premium tax credit
allocation claim form must include an affidavit of the certified
investor under which the certified investor becomes legally bound
and irrevocably committed to make an investment of certified
capital in a certified capital company in the amount allocated even
if the amount allocated is less than the amount of the claim,
subject only to the receipt of an allocation under Article 4.68 of
this code.
SECTION 44. Article 4.67(b), Insurance Code, is amended to
read as follows:
(b) The total amount of certified capital for which premium
tax credits may be allowed for all certified investors under this
subchapter may not exceed the amount that would entitle all
certified investors in certified capital companies to take total
credits of $50 [$20] million in a year.
SECTION 45. Article 4.68(c), Insurance Code, is amended to
read as follows:
(c) Not later than the 15th day after the date on which the
comptroller accepts premium tax credit allocation claims on behalf
of certified investors under rules adopted under Article 4.52(2) of
this code [March 1, 2002], the comptroller shall notify each
certified capital company of the amount of tax credits allocated to
each certified investor. Each certified capital company shall
notify each certified investor of their premium tax credit
allocation.
SECTION 46. Article 4.73(a), Insurance Code, is amended to
read as follows:
(a) The comptroller shall prepare a biennial report with
respect to results of the implementation of this subchapter. The
report must include:
(1) the number of certified capital companies holding
certified capital;
(2) the amount of certified capital invested in each
certified capital company;
(3) the amount of certified capital the certified
capital company has invested in qualified businesses as of January
1, 2006 [2004], and the cumulative total for each subsequent year;
(4) the total amount of tax credits granted under this
subchapter for each year that credits have been granted;
(5) the performance of each certified capital company
with respect to renewal and reporting requirements imposed under
this subchapter;
(6) with respect to the qualified businesses in which
certified capital companies have invested:
(A) the classification of the qualified
businesses according to the industrial sector and the size of the
business;
(B) the total number of jobs created by the
investment and the average wages paid for the jobs; and
(C) the total number of jobs retained as a result
of the investment and the average wages paid for the jobs; and
(7) the certified capital companies that have been
decertified or that have failed to renew the certification and the
reason for any decertification.
SECTION 47. The heading to Chapter 302, Local Government
Code, is amended to read as follows:
CHAPTER 302. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR WATER
CONSERVATION MEASURES] FOR LOCAL GOVERNMENTS
SECTION 48. Section 302.001, Local Government Code, is
amended to read as follows:
Sec. 302.001. DEFINITIONS [DEFINITION]. In this chapter:
(1) "Energy savings performance contract" means a
contract for energy or water conservation measures to reduce energy
or water consumption or operating costs of local government
facilities in which the estimated savings in utility costs
resulting from the measures is guaranteed to offset the cost of the
measures over a specified period. The term includes a contract for
the installation or implementation of:
(A) insulation of a building structure and
systems within the building;
(B) storm windows or doors, caulking or weather
stripping, multiglazed windows or doors, heat-absorbing or
heat-reflective glazed and coated window or door systems, or other
window or door system modifications that reduce energy consumption;
(C) automatic energy control systems, including
computer software and technical data licenses;
(D) heating, ventilating, or air-conditioning
system modifications or replacements that reduce energy or water
consumption;
(E) lighting fixtures that increase energy
efficiency;
(F) energy recovery systems;
(G) electric systems improvements;
(H) water-conserving fixtures, appliances, and
equipment or the substitution of non-water-using fixtures,
appliances, and equipment;
(I) water-conserving landscape irrigation
equipment;
(J) landscaping measures that reduce watering
demands and capture and hold applied water and rainfall, including:
(i) landscape contouring, including the use
of berms, swales, and terraces; and
(ii) the use of soil amendments that
increase the water-holding capacity of the soil, including compost;
(K) rainwater harvesting equipment and equipment
to make use of water collected as part of a storm-water system
installed for water quality control;
(L) equipment for recycling or reuse of water
originating on the premises or from other sources, including
treated municipal effluent;
(M) equipment needed to capture water from
nonconventional, alternate sources, including air-conditioning
condensate or graywater, for nonpotable uses;
(N) metering equipment needed to segregate water
use in order to identify water conservation opportunities or verify
water savings; or
(O) other energy or water conservation-related
improvements or equipment, including improvements or equipment
relating to renewable energy or nonconventional water sources or
water reuse.
(2) "Local [, "local] government" means a county,
municipality, or other political subdivision of this state. The
term [local government] does not include a school district
authorized to enter into an energy savings performance [a] contract
[for energy or water conservation measures] under Section 44.901,
Education Code.
SECTION 49. Section 302.002, Local Government Code, is
amended to read as follows:
Sec. 302.002. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR
WATER CONSERVATION MEASURES]. (a) The governing body of a local
government may enter into an energy savings performance [a]
contract [for energy or water conservation measures to reduce
energy or water consumption or operating costs of governmental
facilities] in accordance with this chapter.
(b) Each [A contract authorized under this chapter includes
a contract for the installation or implementation of:
[(1) insulation of the building structure and systems
within the building;
[(2) storm windows or doors, caulking or weather
stripping, multiglazed windows or doors, heat-absorbing or
heat-reflective glazed and coated window or door systems, or other
window or door system modifications that reduce energy consumption;
[(3) automatic energy control systems, including
computer software and technical data licenses;
[(4) heating, ventilating, or air conditioning system
modifications or replacements that reduce energy or water
consumption;
[(5) lighting fixtures that increase energy
efficiency;
[(6) energy recovery systems;
[(7) electric systems improvements;
[(8) water-conserving fixtures, appliances, and
equipment or the substitution of non-water-using fixtures,
appliances, and equipment;
[(9) water-conserving landscape irrigation equipment;
[(10) landscaping measures that reduce watering
demands and capture and hold applied water and rainfall, including:
[(A) landscape contouring, including the use of
berms, swales, and terraces; and
[(B) the use of soil amendments that increase the
water-holding capacity of the soil, including compost;
[(11) rainwater harvesting equipment and equipment to
make use of water collected as part of a storm-water system
installed for water quality control;
[(12) equipment for recycling or reuse of water
originating on the premises or from other sources, including
treated municipal effluent;
[(13) equipment needed to capture water from
nonconventional, alternate sources, including air conditioning
condensate or graywater, for nonpotable uses;
[(14) metering equipment needed to segregate water use
in order to identify water conservation opportunities or verify
water savings; or
[(15) other energy or water conservation-related
improvements or equipment, including improvements or equipment
related to renewable energy or nonconventional water sources or
water reuse.
[(c) All] energy or water conservation measure [measures]
must comply with current local, state, and federal construction,
plumbing, and environmental codes and regulations.
Notwithstanding Section 302.001(1) [anything to the contrary in
Subsection (b)], an energy savings performance [a] contract may
[for energy or water conservation measures shall] not include
improvements or equipment that allow or cause water from any
condensing, cooling, or industrial process or any system of
nonpotable usage over which public water supply system officials do
not have sanitary control to be returned to the potable water
supply.
SECTION 50. Section 302.003, Local Government Code, as
amended by Chapter 1319, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
Sec. 302.003. PAYMENT AND PERFORMANCE BOND.
Notwithstanding any other law [to the contrary], before entering
into an energy savings performance [a] contract [for energy
conservation measures], the governing body of the local government
shall require the provider of the energy or water conservation
measures to file with the governing body a payment and performance
bond relating to the installation of the [energy conservation]
measures in accordance with Chapter 2253, Government Code. The
governing body may also require a separate bond to cover the value
of the guaranteed savings on the contract.
SECTION 51. Section 302.004, Local Government Code, is
amended to read as follows:
Sec. 302.004. METHOD OF FINANCING; TERMS OF CONTRACT. (a)
An energy savings performance contract [Energy or water
conservation measures with respect to buildings or facilities] may
be financed:
(1) under a lease-purchase contract that has a term
not to exceed 15 years from the final date of installation and that
meets federal tax requirements for tax-free municipal leasing or
long-term financing;
(2) with the proceeds of bonds; or
(3) under a contract with the provider of the energy or
water conservation measures that has a term not to exceed 15 years
from the final date of installation.
(b) An energy savings performance [The] contract shall
contain provisions requiring [pursuant to which] the provider of
the energy or water conservation measures to guarantee [guarantees]
the amount of the savings to be realized by the local government
under the contract. If the term of the [a] contract [for energy or
water conservation measures] exceeds one year, the local
government's contractual obligations in any one year during the
term of the contract beginning after the final date of installation
may not exceed the total energy, water, wastewater, and operating
cost savings, including [but not limited to] electrical, gas,
water, wastewater, or other utility cost savings and operating cost
savings resulting from the measures as determined by the local
government in this subsection, divided by the number of years in the
contract term.
SECTION 52. Section 302.005, Local Government Code, as
amended by Chapters 573 and 1319, Acts of the 77th Legislature,
Regular Session, 2001, is reenacted and amended to read as follows:
Sec. 302.005. BIDDING PROCEDURES; AWARD OF CONTRACT. (a)
An energy savings performance [A] contract under this chapter may
be let in accordance with the procedures established for procuring
certain professional services by Section 2254.004, Government
Code. Notice of the request for qualifications shall be published
in the manner provided for competitive bidding.
(b) Before [(d) Prior to] entering into an energy savings
performance [a] contract [under this section], the governing body
must require that the cost savings projected by an offeror be
reviewed by a licensed [professional] engineer who is not an
officer or employee of an offeror for the contract under review or
otherwise associated with the contract or the offeror. An engineer
who reviews a contract shall maintain the confidentiality of any
proprietary information the engineer acquires while reviewing the
contract. Sections 1001.053 and 1001.407, Occupations Code, apply
[Section 19, The Texas Engineering Practice Act (Article 3271a,
Vernon's Texas Civil Statutes), applies] to work performed under
the contract.
SECTION 53. Section 74.103, Property Code, is amended by
adding Subsection (d) to read as follows:
(d) The comptroller may determine the liability of a holder
required to file a property report under Section 74.101 using the
best information available to the comptroller if the records of the
holder are unavailable or incomplete for any portion of the
required retention period.
SECTION 54. Section 74.501, Property Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) On receipt of a claim form and all necessary
documentation and as may be appropriate under the circumstances,
the comptroller may approve the claim of:
(1) the reported owner of the property;
(2) if the reported owner died testate:
(A) the appropriate legal beneficiaries of the
owner as provided by the last will and testament of the owner that
has been accepted into probate or filed as a muniment of title; or
(B) the executor of the owner's last will and
testament who holds current letters testamentary;
(3) if the reported owner died intestate:
(A) the legal heirs of the owner as provided by
Section 38, Probate Code; or
(B) the court-appointed administrator of the
owner's estate;
(4) the legal heirs of the reported owner as
established by an affidavit of heirship order signed by a judge of
the county probate court or by a county judge;
(5) if the reported owner is a minor child or an adult
who has been adjudged incompetent by a court of law, the parent or
legal guardian of the child or adult;
(6) if the reported owner is a corporation:
(A) the president or chair of the board of
directors of the corporation, on behalf of the corporation; or
(B) any person who has legal authority to act on
behalf of the corporation;
(7) if the reported owner is a corporation that has
been dissolved or liquidated:
(A) the sole surviving shareholder of the
corporation, if there is only one surviving shareholder;
(B) the surviving shareholders of the
corporation in proportion to their ownership of the corporation, if
there is more than one surviving shareholder;
(C) the corporation's bankruptcy trustee; or
(D) the court-ordered receiver for the
corporation; or
(8) any other person that is entitled to receive the
unclaimed property under other law or comptroller policy.
(e) The comptroller may not pay to the following persons a
claim to which this section applies:
(1) a creditor, a judgment creditor, a lienholder, or
an assignee of the reported owner or of the owner's heirs; or
(2) a person holding a power of attorney from the
reported owner or the owner's heirs.
SECTION 55. Subchapter H, Chapter 74, Property Code, is
amended by adding Section 74.7085 to read as follows:
Sec. 74.7085. HEARING. (a) If, after an examination of
records under Section 74.702, the comptroller determines that a
person holds unclaimed property that should have been delivered to
the comptroller as provided by this chapter, the person may
petition the comptroller for a hearing on that determination and on
the imposition of any interest or penalty resulting from that
determination.
(b) A person must file a petition for a hearing with the
comptroller under this section not later than the 30th day after the
date the determination is made. If a petition for a hearing is not
filed before the expiration of the period provided by this
subsection, the determination is final on the expiration of that
period.
SECTION 56. Section 112.058(a), Tax Code, is amended to
read as follows:
(a) Payments [Except as provided in Subsections (b) and (c)
of this section, payments] made under protest are to be handled as
follows:
(1) An officer who receives payments made under
protest as required by Section 112.051 [of this code] shall each day
send to the comptroller the payments, a list of the persons making
the payments, and a written statement that the payments were made
under protest.
(2) The comptroller shall, immediately on receipt,
credit the payments to each fund to which the tax or fee paid under
protest is allocated by law.
(3) The comptroller shall maintain detailed records of
payments made under protest.
(4) A payment under protest bears pro rata interest.
The pro rata interest is the amount of interest earned by the
protested funds [that would be due if the amount had been placed in
the suspense account of the comptroller].
SECTION 57. Section 151.011(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Subsection (c) of this section,
"use" means the exercise of a right or power incidental to the
ownership of tangible personal property over tangible personal
property, including tangible personal property that has been
processed, fabricated, or manufactured into other property or
attached to or incorporated into other property transported into
this state, and, except as provided by Section 151.056(b) of this
code, includes the incorporation of tangible personal property into
real estate or into improvements of real estate whether or not the
real estate is subsequently sold.
SECTION 58. Section 151.027, Tax Code, is amended by
amending Subsection (c) and adding Subsections (d) and (e) to read
as follows:
(c) This section does not prohibit:
(1) the examination of information, if authorized by
the comptroller, by another state officer or law enforcement
officer, by a tax official of another state, by a tax official of
the United Mexican States, or by an official of the United States if
a reciprocal agreement exists;
(2) the delivery to a taxpayer, or a taxpayer's
authorized representative, of a copy of a report or other paper
filed by the taxpayer under this chapter;
(3) the publication of statistics classified to
prevent the identification of a particular report or items in a
particular report;
(4) the use of records, reports, or information
secured, derived, or obtained by the attorney general or the
comptroller in an action under this chapter against the same
taxpayer who furnished the information;
(5) the delivery to a successor, receiver, executor,
administrator, assignee, or guarantor of a taxpayer of information
about items included in the measure and amounts of an unpaid tax or
amounts of tax, penalties, and interest required to be collected;
(6) the delivery of information to an eligible
municipality in accordance with Section 321.3022 or 321.3023; or
(7) the release of information in or derived from a
record, report, or other instrument required to be furnished under
this chapter by a governmental body, as that term is defined in
Section 552.003, Government Code.
(d) Unless otherwise authorized by law, an officer or
employee of an eligible municipality, or an agent acting on behalf
of that municipality, who obtains access to information relating to
a seller under Section 321.3023 may not:
(1) reveal the information or any part of the
information, such as a seller's business affairs, operations,
profits, losses, or expenditures, to an unauthorized person;
(2) permit the information or any abstract or part of
the information to be seen or examined by an unauthorized person; or
(3) retain the information after the person's service
as an officer or employee of the municipality ends or the person's
contract with the municipality expires.
(e) A person who violates Subsection (d) commits an offense.
An offense under this subsection is a Class A misdemeanor.
SECTION 59. Section 151.318, Tax Code, is amended by
amending Subsections (b) and (s) and adding Subsection (q-1) to
read as follows:
(b) The exemption includes:
(1) chemicals, catalysts, and other materials that are
used during a manufacturing, processing, or fabrication operation
to produce or induce a chemical or physical change, to remove
impurities, or to make the product more marketable; [and]
(2) semiconductor fabrication cleanrooms and
equipment; and
(3) pharmaceutical biotechnology cleanrooms and
equipment.
(q-1) For purposes of Subsection (b), "pharmaceutical
biotechnology cleanrooms and equipment" means all tangible
personal property, without regard to whether the property is
affixed to or incorporated into realty, used in connection with the
manufacturing, processing, or fabrication in a cleanroom
environment of a pharmaceutical biotechnology product, without
regard to whether the property is actually contained in the
cleanroom environment. The term includes integrated systems,
fixtures, and piping, all property necessary or adapted to reduce
contamination or to control airflow, temperature, humidity,
chemical purity, or other environmental conditions or
manufacturing tolerances, and production equipment and machinery.
The term does not include the building or a permanent, nonremovable
component of the building that houses the cleanroom environment.
The term includes moveable cleanroom partitions and cleanroom
lighting. "Pharmaceutical biotechnology cleanrooms and equipment"
are not "intraplant transportation equipment" as that term is used
in Subsection (c)(1).
(s) The following do not apply to the semiconductor
fabrication cleanrooms and equipment in Subsection (q) or the
pharmaceutical biotechnology cleanrooms and equipment in
Subsection (q-1):
(1) limitations in Subsection (a)(2) that refer to
tangible personal property directly causing chemical and physical
changes to the product being manufactured, processed, or fabricated
for ultimate sale;
(2) Subsection (c)(1); and
(3) Subsection (c)(4).
SECTION 60. Section 151.3181, Tax Code, is amended by
adding Subsection (h) to read as follows:
(h) The use of "pharmaceutical biotechnology cleanrooms and
equipment," as that term is defined by Section 151.318(q-1), to
manufacture, process, or fabricate a pharmaceutical biotechnology
product that is not sold is not a divergent use if the use occurs
during the certification process by the United States Food and Drug
Administration.
SECTION 61. (a) Subchapter L, Chapter 151, Tax Code, is
amended by adding Section 151.715 to read as follows:
Sec. 151.715. COLLECTION ON EXEMPT ITEMS OR OVERCHARGING.
(a) A person is subject to a civil penalty of $1,000 if the person
continues to collect tax on an exempt item or to overcharge tax on a
taxable item after receiving two written notices from the
comptroller in relation to those actions. The person is subject to
the civil penalty regardless of whether the person remits the
collected tax to the comptroller.
(b) Each violation of Subsection (a) is subject to a
separate civil penalty.
(b) This section takes effect September 1, 2003, and applies
to a violation that occurs on or after that date, regardless of when
the comptroller provided the written notices required by Section
151.715(a), Tax Code, as added by this section. A violation that
occurs before the effective date of this section is governed by the
law in effect on the date the violation occurred, and that law is
continued in effect for that purpose.
SECTION 62. Section 153.119(d), Tax Code, is amended to
read as follows:
(d) If the quantity of gasoline used in Texas by auxiliary
power units or power take-off equipment on any motor vehicle can be
accurately measured while the motor vehicle is stationary by any
metering or other measuring device or method designed to measure
the fuel separately from fuel used to propel the motor vehicle, the
comptroller may approve and adopt the use of any device as a basis
for determining the quantity of gasoline consumed in those
operations for tax credit or tax refund. The climate-control air
conditioning or heating system of a motor vehicle that has a primary
purpose of providing for the convenience or comfort of the operator
or passengers is not a power take-off system, and a refund may not
be allowed for the tax paid on any portion of the gasoline that is
used for that purpose.
SECTION 63. Section 153.222(d), Tax Code, is amended to
read as follows:
(d) If the quantity of diesel fuel used in Texas by
auxiliary power units or power take-off equipment on any motor
vehicle can be accurately measured while the motor vehicle is
stationary by any metering or other measuring device or method
designed to measure the fuel separately from fuel used to propel the
motor vehicle, the comptroller may approve and adopt the use of any
device as a basis for determining the quantity of diesel fuel
consumed in those operations for tax credit or tax refund. If no
separate metering device or other approved measuring method is
provided, the following credit or refund procedures are authorized.
A permitted supplier, a dyed diesel fuel bonded user, or an
agricultural bonded user who operates diesel-powered motor
vehicles equipped with a power take-off or a diesel-powered
auxiliary power unit mounted on the motor vehicle and using the fuel
supply tank of the motor vehicle may be allowed a deduction from the
taxable gallons used in this state in each motor vehicle so
equipped. The comptroller shall determine the percentage of the
deduction. A user who is required to pay the tax on diesel fuel used
in motor vehicles so equipped may file a claim for a refund not to
exceed the percentage allowed by the comptroller of the total
taxable fuel used in this state in each motor vehicle so equipped.
The climate-control air conditioning or heating system of a motor
vehicle that has a primary purpose of providing for the convenience
or comfort of the operator or passengers is not a power take-off
system, and a refund may not be allowed for the tax paid on any
portion of the diesel fuel that is used for that purpose.
SECTION 64. Section 201.057, Tax Code, is amended by
amending Subsections (e) and (f) and adding Subsection (k) to read
as follows:
(e) The operator of a proposed or existing gas well,
including a gas well that has not been completed, or the operator of
any proposed or existing oil or gas well within a commission
approved co-production project, may apply to the commission for
certification that the well produces or will produce high-cost gas.
Such application, if seeking certification as high-cost gas
according to Subsection (a)(2)(A), must be in writing and must be
made not later than the first anniversary of [may be made at any
time after] the first day of production. The application may be
made but is not required to be made concurrently with a request for
a determination that gas produced from the well is high-cost
natural gas for purposes of the Natural Gas Policy Act of 1978 (15
U.S.C. Section 3301 et seq.) or with a request for commission
approval of a co-production project. The commission may require an
applicant to provide the commission with any relevant information
required to administer this section. For purposes of this section,
a determination that gas is high-cost natural gas according to
Subsection (a)(2)(A) or a determination that gas is produced from
within a commission approved co-production project is a
certification that the gas is high-cost gas for purposes of this
section, and in that event additional certification is not required
to qualify for the exemption or tax reduction provided by this
section.
(f) To qualify for the exemption or tax reduction provided
by this section, the person responsible for paying the tax must
apply to the comptroller. The application must contain the
certification of the commission that the well produces high-cost
gas and, if the application is for a well spudded or completed after
September 1, 1995, must contain a report of drilling and completion
costs incurred for each well on a form and in the detail as
determined by the comptroller. Drilling and completion costs for a
recompletion shall only include current and contemporaneous costs
associated with the recompletion. Notwithstanding any other
provision of this section, to obtain the maximum tax exemption or
tax deduction, an application to the comptroller for certification
according to Subsection (a)(2)(A) must be filed with the
comptroller not later than the first anniversary of the first day of
production [at the later of the 180th day after the date of first
production or the 45th day after the date of approval by the
commission. If the application is not filed by the applicable
deadline, the tax exemption or tax deduction is reduced by 10
percent for the period beginning on the 180th day after the first
day of production and ending on the date on which the application is
filed with the comptroller. An application to the comptroller for
certification according to Subsection (a)(2)(B) may not be filed
before January 1, 1990, or after December 31, 1998]. The
comptroller shall approve the application of a person who
demonstrates that the gas is eligible for the exemption or tax
reduction. The comptroller may require a person applying for the
exemption or tax reduction to provide any relevant information in
the person's monthly report that the comptroller considers
necessary to administer this section. The commission shall notify
the comptroller in writing immediately if it determines that an oil
or gas well previously certified as producing high-cost gas does
not produce high-cost gas or if it takes any action or discovers any
information that affects the eligibility of gas for an exemption or
tax reduction under this section.
(k) A person who, on September 1, 2003, otherwise meets the
requirements necessary to file an application with the commission
and the comptroller for certification, except for the requirement
that the application be made not later than the first anniversary of
the first day of production, must submit the application for
certification before March 1, 2004, to be eligible for the tax
exemption or tax deduction provided by this section. This
subsection expires March 1, 2004.
SECTION 65. Section 201.101, Tax Code, is amended to read as
follows:
Sec. 201.101. MARKET VALUE. (a) In this section:
(1) "Allowable marketing costs" means direct costs
for:
(A) compressing the gas sold;
(B) dehydrating the gas sold;
(C) sweetening the gas sold; and
(D) delivering the gas to the purchaser.
(2) "Direct costs" means the cost of equipment that
physically performs the activity and the direct labor associated
with the activity.
(b) The market value of gas is its value at the mouth of the
well from which it is produced. The value of the gas is computed by
taking the producer's gross receipts for the gas and deducting
allowable marketing costs incurred by the producer to transport the
gas from the outlet of a lease separator to the market.
SECTION 66. Section 201.102, Tax Code, is amended to read as
follows:
Sec. 201.102. CASH SALES. If gas is sold for cash only, the
tax shall be computed on the producer's gross cash receipts.
Payments from a purchaser of gas to a producer for the purpose of
reimbursing the producer for taxes due under this chapter or for the
purpose of reimbursing the producer for costs incurred are [not]
part of the gross cash receipts unless the reimbursement amount for
taxes due under this chapter is separately stated in the sales
contract.
SECTION 67. Section 313.021(2), Tax Code, is amended to
read as follows:
(2) "Qualified property" means:
(A) land:
(i) that is located in an area designated as
a reinvestment zone under Chapter 311 or 312 or as an enterprise
zone under Chapter 2303, Government Code;
(ii) on which a person proposes to
construct a new building or erect or affix a new improvement that
does not exist before the date the owner applies for a limitation on
appraised value under this subchapter;
(iii) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(iv) on which, in connection with the new
building or new improvement described by Subparagraph (ii), the
owner of the land proposes to:
(a) make a qualified investment in an
amount equal to at least the minimum amount required by Section
313.023; and
(b) create at least 25 new jobs;
(B) the new building or other new improvement
described by Paragraph (A)(ii); and
(C) tangible personal property that:
(i) is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(ii) except for new equipment described in
Section 151.318(q) or (q-1), is first placed in service in the new
building or in or on the new improvement described by Paragraph
(A)(ii), or on the land on which that new building or new
improvement is located, if the personal property is ancillary and
necessary to the business conducted in that new building or in or on
that new improvement.
SECTION 68. Section 321.3022, Tax Code, is amended by
amending Subsection (a) and adding Subsection (i) to read as
follows:
(a) The comptroller on request shall provide to a
municipality that has adopted a tax under this chapter and that has
a population of not more than 275,000 information relating to the
amount of tax paid to the municipality under this chapter during the
preceding or current calendar year by each person doing business in
the municipality who annually remits to the comptroller state and
local sales tax payments of more than $25,000 [$100,000].
(i) Notwithstanding Chapter 551, Government Code, the
governing body of a municipality is not required to confer with one
or more employees or a third party in an open meeting to receive
information or question the employees or third party regarding the
information received by the municipality under this section.
SECTION 69. Section 321.3022(f), Tax Code, is amended to
read as follows:
(f) Information received by a municipality under this
section is confidential, is not open to public inspection, and may
be used only for the purpose of economic forecasting, for internal
auditing of a tax paid to the municipality under this chapter, or
for the purpose described in Subsection (g).
SECTION 70. Subchapter D, Chapter 321, Tax Code, is amended
by adding Section 321.3023 to read as follows:
Sec. 321.3023. INFORMATION ON CERTAIN TAXPAYERS. (a) A
municipality that has imposed a tax under this chapter may provide
to the comptroller information relating to:
(1) a seller that the municipality, in good faith,
believes has not collected or reported to the comptroller as
required by law revenue from a tax imposed by the municipality under
this chapter; or
(2) tax revenue that the municipality, in good faith,
believes has been paid by a seller but that was not properly
reported by the seller as being revenue from a tax imposed by the
municipality under this chapter.
(b) After investigating the information provided under
Subsection (a), the comptroller may provide to the municipality
information relating to whether the seller failed to:
(1) collect or report to the comptroller as required
by law revenue from a tax imposed by the municipality under this
chapter and, if so:
(A) the name and taxpayer identification number
of the seller; and
(B) the amount of municipal tax revenue that was
not collected or reported; or
(2) report collected tax revenue as being revenue from
a tax imposed by the municipality under this chapter and, if so:
(A) the name and taxpayer identification number
of the seller; and
(B) the amount of revenue that should have been
reported as being revenue from a tax imposed by the municipality
under this chapter.
(c) The municipality may request, and the comptroller may
provide, information described by Subsection (b) for any tax
reporting period that ended during the four-year period preceding
the date on which the municipality requested the information.
(d) Sections 151.027(d) and (e) apply to an officer or
employee of the municipality or agent acting on behalf of the
municipality who is authorized to examine information provided by
the comptroller under this section.
(e) To receive information under Subsection (b), the
governing body of a municipality requesting the information must
certify to the comptroller by resolution:
(1) the name of each officer or employee of the
municipality or agent acting on behalf of the municipality who will
be authorized to examine the information; and
(2) that each agent named in the resolution as
authorized to examine the information:
(A) has a contract with the municipality to
perform that service on the date the resolution is adopted;
(B) is prohibited under that contract from
disclosing any part of the information or any information derived
from that information to any person other than a municipal officer
or employee named in the resolution as authorized to examine the
information;
(C) is prohibited under that contract from
performing consulting services for a seller, other than another
political subdivision, during the term of the contract;
(D) has received notice that the information is
confidential by law and that Sections 151.027(d) and (e) apply to
the agent; and
(E) is prohibited under that contract from
retaining the information or any information derived from that
information after the contract expires.
(f) If the comptroller believes that information obtained
by a municipality under Subsection (b) has been disclosed to a
person not named in the municipality's resolution as authorized to
examine the information or has been used for a purpose that does not
comply with law, the comptroller may:
(1) refuse to provide additional information to the
municipality;
(2) require the municipality to return information the
comptroller previously provided; or
(3) place conditions on the eligibility of the
municipality to receive information in the future.
SECTION 71. Section 256.009, Transportation Code, is
amended to read as follows:
Sec. 256.009. REPORT TO COMPTROLLER. (a) Not later than
January 30 of each year, the county auditor or, if the county does
not have a county auditor, the official having the duties of the
county auditor shall file a report with the comptroller that
includes:
(1) an account of how the money allocated to a county
under Section 256.002 during the preceding year was spent;
(2) a description, including location, of any new
roads constructed in whole or in part with the money allocated to a
county under Section 256.002 during the preceding year;
(3) any other information related to the
administration of Sections 256.002 and 256.003 that the comptroller
requires; and
(4) [stating] the total amount of expenditures for
county road and bridge construction, maintenance, rehabilitation,
right-of-way acquisition, and utility construction and other
appropriate road expenditures of county funds in the preceding
county fiscal year that are required by the constitution or other
law to be spent on public roads or highways.
(b) The report must be in a form prescribed by the
comptroller.
(c) [(b)] The comptroller may distribute money under
Section 256.002(a) to a county only if the most recent report
required by Subsection (a) has been filed.
(d) A county official or employee shall provide to the
comptroller on request any information necessary to determine the
legality of the use of money allocated under Section 256.002.
SECTION 72. The following are repealed:
(1) Section 44.901, Education Code, as amended by
Chapter 1319, Acts of the 77th Legislature, Regular Session, 2001;
(2) Section 51.927, Education Code, as amended by
Chapter 1319, Acts of the 77th Legislature, Regular Session, 2001;
(3) Section 395.103, Finance Code;
(4) Subchapters O and P, Chapter 403, Government Code;
(5) Section 2166.406, Government Code, as amended by
Chapter 1319, Acts of the 77th Legislature, Regular Session, 2001;
(6) Section 2305.025, Government Code;
(7) Section 2305.073, Government Code;
(8) Section 2305.074, Government Code;
(9) Section 2305.076, Government Code;
(10) Section 2305.032(c), Government Code;
(11) Section 2305.033(c), Government Code;
(12) Article 4.74, Insurance Code;
(13) Section 302.003, Local Government Code, as
amended by Chapter 573, Acts of the 77th Legislature, Regular
Session, 2001;
(14) Sections 112.058(b) and (c), Tax Code;
(15) Sections 256.003(b) and (c), Transportation
Code; and
(16) Sections 1.02(b)-(i), Chapter 753, Acts of the
76th Legislature, Regular Session, 1999.
SECTION 73. (a) For the fiscal biennium beginning
September 1, 2003, the comptroller is appropriated from the general
revenue fund the amount needed to return any available cash that was
transferred to that fund from a fund outside the state treasury and
to maintain the equity of the fund from which the transfer was made,
as required by Section 403.092, Government Code, as amended by this
Act.
(b) The changes in law made by this Act to Sections 54.619,
54.622, and 54.624, Education Code, apply to each academic term or
semester that begins after the effective date of this Act, other
than a term or semester before the 2003 fall semester.
(c) The changes in law made by this Act to Section 403.1042,
Government Code, do not affect the entitlement of a member serving
on the tobacco settlement permanent trust account advisory
committee immediately before the effective date of this Act to
serve the remainder of the member's current term. As the terms of
the members of the tobacco settlement permanent trust account
investment advisory committee first expire after the effective date
of this Act, the entities authorized to appoint the committee
members under Section 403.1042(b), Government Code, as amended by
this Act, shall appoint their successors.
(d) Section 659.2531, Government Code, as added by this Act,
applies only to a transfer that takes effect on or after September
1, 2003. A transfer that takes effect before September 1, 2003, is
governed by the law in effect on the effective date of the transfer,
and the former law is continued in effect for that purpose. In this
subsection, "transfer" has the meaning assigned by Section
659.2531, Government Code, as added by this Act.
(e) The changes in law made by this Act to Section 659.255,
Government Code, apply only to a merit salary increase or a one-time
merit payment that takes effect or is made on or after September 1,
2003. A merit salary increase or a one-time merit payment that
takes effect or is made before September 1, 2003, is governed by the
law in effect on the date the increase takes effect or the payment
is made, and the former law is continued in effect for that purpose.
(f) The rate of interest that accrues on a payment that
becomes overdue on or after September 1, 2004, is the rate
determined under Section 2251.025(b), Government Code, as amended
by this Act. The rate of interest that accrues on a payment that
becomes overdue before September 1, 2004, is the rate determined
under the law in effect before July 1, 2004, and the former law is
continued in effect for that purpose.
(g) The changes in law made by this Act to Section 2252.903,
Government Code, apply only to a written contract that is entered
into on or after September 1, 2003. A written contract that is
entered into before September 1, 2003, is governed by the law in
effect on the date the contract is entered into, and the former law
is continued in effect for that purpose.
(h) The changes in law made by this Act to Section 74.103,
Property Code, apply only to an examination begun on or after
September 1, 2003. An examination begun before September 1, 2003,
is governed by the law in effect on the date the examination begins,
and the former law is continued in effect for that purpose.
(i) The changes in law made by this Act to Sections
153.119(d) and 153.222(d), Tax Code, apply only to fuel used on or
after September 1, 2003, for climate-control air conditioning or
heating in a motor vehicle. Fuel used before that date is governed
by the law in effect on the date the fuel is used, and that law is
continued in effect for that purpose.
SECTION 74. The comptroller shall adopt rules and forms as
necessary to implement Subchapter B, Chapter 4, Insurance Code, as
amended by this Act, not later than the 90th day after the effective
date of this Act.
SECTION 75. (a) Except as provided by this section, this
Act takes effect immediately if it 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 Act takes effect
September 1, 2003.
(b) The amendments by this Act to the following sections
take effect September 1, 2003:
(1) Section 14(e), Article 42.12, Code of Criminal
Procedure, as added by Chapter 1188, Acts of the 76th Legislature,
Regular Session, 1999;
(2) Section 19(f), Article 42.12, Code of Criminal
Procedure;
(3) Section 659.253, Government Code;
(4) Section 659.255, Government Code;
(5) Sections 2101.0115(a) and (b), Government Code;
(6) Section 2113.205(b), Government Code;
(7) Section 2252.903(e), Government Code;
(8) Section 74.103, Property Code;
(9) Section 74.501, Property Code;
(10) Section 112.058(a), Tax Code;
(11) Section 153.119(d), Tax Code;
(12) Section 153.222(d), Tax Code;
(13) Sections 201.057(e), (f), and (k), Tax Code;
(14) Section 201.101, Tax Code;
(15) Section 201.102, Tax Code; and
(16) Section 256.009, Transportation Code.
(c) The amendment by this Act to Section 2251.025(b),
Government Code, takes effect July 1, 2004.
(d) The repeal by this Act of Section 395.103, Finance Code,
and Sections 112.058(b) and (c), Tax Code, takes effect September
1, 2003.
(e) Sections 659.2531 and 659.262, Government Code, as
added by this Act, take effect September 1, 2003.
(f) The amendment by this Act to Section 151.011(a), Tax
Code, takes effect October 1, 2003.