78R7256 CBH-D

By:  Raymond                                                      H.B. No. 3500



A BILL TO BE ENTITLED

AN ACT

relating to the imposition and use of a homeland security fee.                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 171, Tax Code, is amended 
by adding Section 171.003 to read as follows:
	Sec. 171.003.  HOMELAND SECURITY FEE SURCHARGE.  (a)  An 
additional homeland security fee is imposed on each corporation 
subject to the tax imposed by this chapter.
	(b)  A corporation's homeland security fee is equal to the 
amount computed by multiplying the corporation's net taxable earned 
surplus by 0.5 percent.
	(c)  A corporation is not required to pay the homeland 
security fee for a period if the corporation is not required to pay 
a tax for that period under Section 171.002(d).
	(d)  Notwithstanding Section 171.401, revenue from the fee 
imposed by this section shall be deposited to the homeland security 
account in the general revenue fund.  Money in the homeland security 
account may be appropriated  only as follows:
		(1)  one-third of the money may be appropriated only to 
the Texas Department of Health to provide funding for bioterrorism 
programs administered by the department;
		(2)  one-third of the money may be appropriated only to 
the Department of Public Safety to provide funding for a grant 
program to assist local police and fire departments in funding 
homeland security projects and needs as provided by Section 
411.0093, Government Code; and
		(3)  the remainder of the money may be appropriated 
only to the Texas Education Agency to provide homeland security 
grants to public schools as provided by Section 7.060, Education 
Code.
	SECTION 2.  Subchapter A, Chapter 411, Government Code, is 
amended by adding Section 411.0093 to read as follows:
	Sec. 411.0093.  HOMELAND SECURITY GRANTS.  (a) The 
department shall establish a grant program to award grants to local 
police and fire departments to fund local projects and needs 
relating to homeland security.
	(b)  The department shall use money appropriated to the 
department from the homeland security account to provide funding 
for the grants.
	(c)  In awarding grants under this section, the department 
shall give priority to police and fire departments located in areas 
that border the United Mexican States.
	(d)  The department by rule shall prescribe:                            
		(1)  an application process;                                           
		(2)  eligibility criteria; and                                         
		(3)  a procedure for reviewing and evaluating an 
application.        
	SECTION 3.  Subchapter C, Chapter 7, Education Code, is 
amended by adding Section 7.060 to read as follows:
	Sec. 7.060.  HOMELAND SECURITY GRANTS.  (a)  The 
commissioner shall establish a grant program to award grants to 
school districts to fund local projects and needs relating to 
homeland security.
	(b)  The commissioner shall use money appropriated to the 
agency from the homeland security account to provide funding for 
the grants.
	(c)  The commissioner by rule shall prescribe:                          
		(1)  an application process;                                           
		(2)  eligibility criteria; and                                         
		(3)  a procedure for reviewing and evaluating an 
application.        
	SECTION 4.  This Act takes effect January 1, 2004, and 
applies to a report originally due on or after that date.