By: Ellis S.B. No. 1952
A BILL TO BE ENTITLED
AN ACT
relating to the reorganization of, efficiency in, regulation by,
and other reform measures applying to state government; providing
penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. ABOLITION OF TEXAS COMMISSION ON PRIVATE SECURITY
SECTION 1.01. Subchapter A, Chapter 1702, Occupations Code,
is amended by adding Section 1702.005 to read as follows:
Sec. 1702.005. COMMISSION ABOLISHED AND FUNCTIONS
TRANSFERRED. (a) The commission is abolished, and all powers,
duties, personnel, property, assets, and obligations of the
commission are transferred to the Department of Public Safety of
the State of Texas. The validity of a prior action of the
commission is not affected by the abolishment.
(b) All rules of the commission relating to a transferred
power or duty remain in effect as rules of the Department of Public
Safety of the State of Texas until amended or repealed by the
Department of Public Safety of the State of Texas.
(c) A reference in this chapter or another law to the
commission means the Department of Public Safety of the State of
Texas.
ARTICLE 2. IMPOSITION OF CERTAIN FEES
SECTION 2.01. Subchapter B, Chapter 1052, Occupations Code,
is amended by adding Section 1052.0541 to read as follows:
Sec. 1052.0541. FEE INCREASE. (a) The fee for the
issuance of a certificate of registration under this chapter and
the fee for the renewal of a certificate of registration under this
chapter is increased by $200.
(b) Of each fee increase collected, $50 shall be deposited
in the foundation school fund and $150 shall be deposited in the
general revenue fund.
SECTION 2.02. Subchapter B, Chapter 1053, Occupations Code,
is amended by adding Section 1053.0521 to read as follows:
Sec. 1053.0521. FEE INCREASE. (a) The fee for the
issuance of a certificate of registration under this chapter and
the fee for the renewal of a certificate of registration under this
chapter is increased by $200.
(b) Of each fee increase collected, $50 shall be deposited
in the foundation school fund and $150 shall be deposited in the
general revenue fund.
SECTION 2.03. Subchapter D, Chapter 1071, Occupations Code,
is amended by adding Section 1071.1521 to read as follows:
Sec. 1071.1521. FEE INCREASE. (a) The fee for the
issuance of a certificate of registration to a registered
professional land surveyor under this chapter and the fee for the
renewal of a certificate of registration for a registered
professional land surveyor under this chapter is increased by $200.
(b) Of each fee increase collected, $50 shall be deposited
in the foundation school fund and $150 shall be deposited in the
general revenue fund.
(c) This section does not apply to state agency employees
who are employed by the state as land surveyors.
SECTION 2.04. Subchapter B, Chapter 1152, Occupations Code,
is amended by adding Section 1152.053 to read as follows:
Sec. 1152.053. FEE INCREASE. (a) The fee for the
registration of a person under this chapter and the fee for the
renewal of a registration under this chapter is increased by $200.
(b) Of each fee increase collected, $50 shall be deposited
in the foundation school fund and $150 shall be deposited in the
general revenue fund.
SECTION 2.05. The change in law made by this article applies
only to the issuance or renewal of a certificate of registration
under Chapter 1052, 1053, or 1071, Occupations Code, or the
issuance or renewal of a registration under Chapter 1152,
Occupations Code, on or after the effective date of this article. A
certificate of registration or registration issued or renewed
before the effective date of this article is governed by the law in
effect on the date of the issuance or renewal, and the former law is
continued in effect for that purpose.
ARTICLE 3. LEASE OF SPACE IN STATE-OWNED PARKING LOTS AND GARAGES
SECTION 3.01. Subchapter E, Chapter 2165, Government Code,
is amended by adding Section 2165.2035 to read as follows:
Sec. 2165.2035. LEASE OF SPACE IN STATE-OWNED PARKING LOTS
AND GARAGES. (a) In this section, "lease" includes a management
agreement.
(b) The commission shall develop private, commercial uses
for state-owned parking lots and garages located in the City of
Austin at locations the commission determines are appropriate for
commercial uses outside of normal business hours.
(c) The commission may contract with a private vendor to
manage the commercial use of state-owned parking lots and garages.
(d) Money received from a lease under this program shall be
deposited to the credit of the general revenue fund.
(e) On or before December 1 of each even-numbered year, the
commission shall submit a report to the legislature and the
Legislative Budget Board describing the effectiveness of the
program under this section.
(f) The limitation on the amount of space allocated to
private tenants prescribed by Section 2165.205(b) does not apply to
the lease of a state-owned parking lot or garage under this section.
(g) Any lease of a state-owned parking lot or garage under
this section must contain a provision that allows state employees
who work hours other than regular working hours under Section
658.005 to retain their parking privileges in a state-owned parking
lot or garage.
(h) Nonprofit, charitable, and other community
organizations may apply to use state parking lots and garages
located in the City of Austin in the area bordered by West Fourth
Street, Lavaca Street, West Third Street, and Nueces Street free of
charge or at a reduced rate. The executive director shall develop a
form to be used to make such applications. The form shall require
information related to:
(1) the dates and times of the free use requested;
(2) the nature of the applicant's activities
associated with the proposed use of state parking lots and garages;
and
(3) any other information determined by the executive
director to be necessary to evaluate an application.
(i) To be considered timely, an application must be
submitted at least one month before the proposed use, unless this
provision is waived by the executive director.
(j) The executive director may approve or reject an
application made under Subsection (h).
ARTICLE 4. MANAGEMENT AND CONSTRUCTION OF STATE AGENCY OFFICE
SPACE AND OTHER FACILITIES
SECTION 4.01. Subchapter A, Chapter 2165, Government Code,
is amended by adding Section 2165.007 to read as follows:
Sec. 2165.007. FACILITIES MANAGEMENT SERVICES. (a) In
this section, "facilities management services" means any state
agency facilities management service that is not unique to carrying
out a program of the agency. The term includes services related to
facilities construction, facilities management, general building
and grounds maintenance, cabling, and facility reconfiguration.
(b) Notwithstanding any other law, the commission shall
provide facilities management services in relation to all state
agency facilities in Travis County or a county adjacent to Travis
County. The commission's duty does not apply to:
(1) a facility owned or operated by an institution of
higher education;
(2) military facilities;
(3) facilities owned or operated by the Texas
Department of Criminal Justice;
(4) facilities owned or operated by the Texas Youth
Commission;
(5) facilities owned or operated by the Texas
Department of Transportation;
(6) the Capitol, including the Capitol Extension, the
General Land Office building, the Bob Bullock Texas State History
Museum, and any museum located on the Capitol grounds;
(7) a facility determined by the commission to be
completely residential; or
(8) state agency facilities that serve as regional or
field offices.
SECTION 4.02. Subchapter B, Chapter 2165, Government Code,
is amended by adding Section 2165.057 to read as follows:
Sec. 2165.057. MANAGEMENT OF FACILITIES. (a) The
commission shall develop and implement policies that clearly define
the responsibilities of the commission and the commission's staff
that relate to conducting facilities management services for state
agency facilities under Section 2165.007.
(b) The state energy conservation office shall provide
utility management services for state agency facilities for which
the commission provides facilities management services under
Section 2165.007.
SECTION 4.03. Subsection (c), Section 2165.104, Government
Code, is amended to read as follows:
(c) To the extent possible without sacrificing critical
public or client services, the commission may not allocate usable
office space, as defined by the commission, to a state agency under
Article I, II, V, VI, VII, or VIII of the General Appropriations Act
or to the Texas Higher Education Coordinating Board, the Texas
Education Agency, the State Board for Educator Certification, the
Telecommunications Infrastructure Fund Board, or the Office of
Court Administration of the Texas Judicial System in an amount that
exceeds an average of 135 [153] square feet per agency employee for
each agency site. To the extent that any of those agencies
allocates its own usable office space, as defined by the
commission, the agency shall allocate the space to achieve the
required ratio. This subsection does not apply to:
(1) an agency site at which there are so few employees
that it is not practical to apply this subsection to that site, as
determined by the commission [fewer than 16 employees are located];
and
(2) an agency site at which it is not practical to
apply this subsection because of the site's type of space or use of
space, as determined by the commission [warehouse space;
[(3) laboratory space;
[(4) storage space exceeding 1,000 gross square feet;
[(5) library space;
[(6) space for hearing rooms used to conduct hearings
required under the administrative procedure law, Chapter 2001; or
[(7) another type of space specified by commission
rule, if the commission determines that it is not practical to apply
this subsection to that space].
SECTION 4.04. On September 1, 2003:
(1) all powers and duties of a state agency that relate
to the facilities management services treated by Subsection (b),
Section 2165.007, Government Code, as added by this article, are
transferred to the Texas Building and Procurement Commission or the
state energy conservation office, as appropriate;
(2) all obligations and contracts of a state agency
that relate to the transferred services are transferred to the
Texas Building and Procurement Commission or the state energy
conservation office, as appropriate;
(3) all records and other property in the custody of a
state agency that relate to the transferred services and all funds
appropriated by the legislature to a state agency that relate to the
transferred services are transferred to the Texas Building and
Procurement Commission or the state energy conservation office, as
appropriate;
(4) all complaints and investigations that are pending
before a state agency that relate to the transferred services are
transferred without change in status to the Texas Building and
Procurement Commission or the state energy conservation office, as
appropriate; and
(5) a rule or form adopted by a state agency that
relates to the transferred services is considered to be a rule or
form of the Texas Building and Procurement Commission and remains
in effect until altered by the commission or the state energy
conservation office, as appropriate.
SECTION 4.05. The change in law made by Section 4.03 of this
article applies only to a lease for usable office space entered into
or renewed on or after September 1, 2003. A lease entered into or
renewed before September 1, 2003, shall be reviewed by the Texas
Building and Procurement Commission as the lease comes up for
renewal to determine whether it would be cost-effective to bring
the lease into compliance with Subsection (c), Section 2165.104,
Government Code, as amended by this article.
SECTION 4.06. Notwithstanding any other law, including
Subchapter A, Chapter 2254, and Chapters 2165, 2166, and 2167,
Government Code, and Sections 202.052, 202.053, 203.051, 203.052,
and 223.001, Transportation Code, the Texas Department of
Transportation may enter into one or more agreements with a private
entity offering the best value to the state that includes:
(1) both design and construction of the department's
several district office headquarters facilities;
(2) a lease of department-owned real property to the
private entity;
(3) provisions authorizing the private entity to
construct and retain ownership of buildings on property leased to
the private entity under Subdivision (2) of this section;
(4) provisions under which the department agrees to
enter into an agreement to lease with an option or options to
purchase for the buildings constructed on the leased property; and
(5) any other provisions the department considers
advantageous to the state.
ARTICLE 5. DISPOSAL OF SURPLUS AND SALVAGE PROPERTY
SECTION 5.01. Section 2175.061, Government Code, is amended
by adding Subsections (c) and (d) to read as follows:
(c) The commission may by rule determine the best method of
disposal for surplus and salvage property of the state under this
chapter.
(d) The commission may not provide for the disposal of real
property of the state under this chapter.
SECTION 5.02. Section 2175.134, Government Code, is amended
by amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) Proceeds from the sale of surplus or salvage property,
less the cost of advertising the sale, the cost of selling the
surplus or salvage property, including the cost of auctioneer
services, and the amount of the fee collected under Section
2175.131, shall be deposited to the credit of the general revenue
fund of the state treasury [appropriate appropriation item of the
state agency for which the sale was made].
(c) Proceeds from the sale of surplus and salvage property
of the State Aircraft Pooling Board shall be deposited to the credit
of the board.
SECTION 5.03. Subsection (a), Section 2175.182, Government
Code, is amended to read as follows:
(a) The commission is responsible for the disposal of
surplus or salvage property under this subchapter. The commission
may take physical possession of the property. [A state agency
maintains ownership of property throughout the disposal process.]
SECTION 5.04. Subsection (b), Section 2175.185, Government
Code, is amended to read as follows:
(b) On receiving notice under this section, the comptroller
shall, if necessary,[:
[(1) debit and credit the proper appropriations; and
[(2)] adjust state property accounting records.
SECTION 5.05. Section 2175.191, Government Code, is amended
by amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) Proceeds from the sale of surplus or salvage property,
less the cost of advertising the sale, the cost of selling the
surplus or salvage property, including the cost of auctioneer
services, and the amount of the fee collected under Section
2175.188, shall be deposited to the credit of the general revenue
fund of the state treasury [appropriate appropriation item of the
state agency for which the sale was made].
(c) Proceeds from the sale of surplus and salvage property
of the State Aircraft Pooling Board shall be deposited to the credit
of the board.
SECTION 5.06. Section 2175.361, Government Code, is amended
to read as follows:
Sec. 2175.361. DEFINITIONS. In this subchapter:
(1) "Federal act" means the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. Section 541 et seq.
[484]), as amended, or any other federal law providing for the
disposal of federal surplus property.
(2) "Federal property" means federal surplus property
acquired:
(A) by the commission or under the commission's
jurisdiction under this subchapter; and
(B) under 40 U.S.C. Section 483c, 549, or 550, or
under any other federal law providing for the disposal [Section
484(j) or (k)] of [the] federal surplus property [act]. [The term
includes federal real property acquired under Section 484(k) of the
federal act.]
SECTION 5.07. Subsection (a), Section 2175.362, Government
Code, is amended to read as follows:
(a) The commission is the designated state agency under 40
U.S.C. Section 549 and any other federal law providing for the
disposal [484(j)] of [the] federal surplus property [act].
SECTION 5.08. Section 2175.364, Government Code, is amended
to read as follows:
Sec. 2175.364. COMMISSION ASSISTANCE IN PROCUREMENT AND USE
OF PROPERTY. The commission may:
(1) disseminate information and assist a potential
applicant regarding the availability of federal real property;
(2) assist in the processing of an application for
acquisition of federal real property and related personal property
under 40 U.S.C. Section 550 or any other federal law providing for
the disposal [484(k)] of [the] federal surplus property [act];
(3) act as an information clearinghouse for an entity
that may be eligible to acquire federal property and, as necessary,
assist the entity to obtain federal property;
(4) assist in assuring use of the property; and
(5) engage in an activity relating to the use of
federal property by another state agency, institution, or
organization engaging in or receiving assistance under a federal
program.
SECTION 5.09. Section 2175.367, Government Code, is amended
to read as follows:
Sec. 2175.367. CONTRACTS. The commission may enter into an
agreement, including:
(1) a cooperative agreement with a federal agency
under 40 U.S.C. Section 549 or any other federal law providing for
the disposal [484(n)] of [the] federal surplus property [act];
(2) an agreement with a state agency for surplus
property of a state agency that will promote the administration of
the commission's functions under this subchapter; or
(3) an agreement with a group or association of state
agencies for surplus property that will promote the administration
of the commission's functions under this subchapter.
SECTION 5.10. Subsection (b), Section 2175.134, and
Subsection (b), Section 2175.191, Government Code, are repealed.
SECTION 5.11. This article applies only to surplus and
salvage property of the state sold on or after September 1, 2003.
ARTICLE 6. CREDIT ESTABLISHED IN STATE RETIREMENT SYSTEMS
SECTION 6.01. Section 812.003, Government Code, is amended
by amending Subsection (d) and adding Subsections (e) through (h)
to read as follows:
(d) For persons whose employment or office holding begins on
or after September 1, 2005, membership [Membership] in the employee
class begins on the first day the [a] person is employed or holds
office.
(e) For persons whose employment or office holding begins
before September 1, 2005, membership in the employee class begins
on the 91st day after the first day a person is employed or holds
office.
(f) A person who is reemployed or who again holds office
after withdrawing contributions under Subchapter B for previous
service credited in the employee class begins membership in the
employee class on the 91st day after the first day the person is
reemployed or again holds office.
(g) Notwithstanding any other provision of law, a member may
establish service credit only as provided by Section 813.514 for
service performed during the 90-day waiting period provided by
Subsection (e) or (f).
(h) Subsections (e), (f), and (g) and this subsection expire
September 1, 2005.
SECTION 6.02. Subchapter F, Chapter 813, Government Code,
is amended by adding Section 813.514 to read as follows:
Sec. 813.514. CREDIT PURCHASE OPTION FOR CERTAIN SERVICE.
(a) A member may establish service credit under this section in
the employee class only for service performed during a 90-day
waiting period to become a member after beginning employment or
holding office.
(b) A member may establish service credit under this section
by depositing with the retirement system, for each month of service
credit, the actuarial present value, at the time of deposit, of the
additional standard retirement annuity benefits that would be
attributable to the purchase of the service credit under this
section based on rates and tables recommended by the retirement
system's actuary and adopted by the board of trustees.
(c) After a member makes the deposits required by this
section, the retirement system shall grant the member one month of
equivalent membership service credit for each month of credit
approved. A member may establish not more than three months of
equivalent membership service credit under this section.
(d) The retirement system shall deposit the amount of the
actuarial present value of the service credit purchased in the
member's individual account in the employees saving account.
(e) The board of trustees may adopt rules to administer this
section, including rules that impose restrictions on the
application of this section as necessary to cost-effectively
administer this section.
SECTION 6.03. Section 822.001, Government Code, is amended
by adding Subsections (c) through (f) to read as follows:
(c) Membership in the retirement system begins on the 91st
day after the first day a person is employed.
(d) A person who is reemployed after withdrawing
contributions for previous service credit begins membership on the
91st day after the first day the person is reemployed.
(e) Notwithstanding any other provision of law, a member may
establish credit only as provided by Section 823.406 for service
performed during the 90-day waiting period provided by Subsection
(c) or (d).
(f) Subsections (c), (d), and (e) and this subsection expire
September 1, 2005.
SECTION 6.04. Section 823.002, Government Code, is amended
to read as follows:
Sec. 823.002. SERVICE CREDITABLE IN A YEAR. (a) The board
of trustees by rule shall determine how much service in any year is
equivalent to one year of service credit, but in no case may all of a
person's service in one school year be creditable as more than one
year of service. Service that has been credited by the retirement
system on annual statements for a period of five or more years may
not be deleted or corrected because of an error in crediting unless
the error concerns three or more years of service credit or was
caused by fraud.
(b) The rules adopted by the board of trustees under
Subsection (a) must provide that the 90-day waiting periods
described by Sections 822.001(c) and (d) be applied with regard to
contributions during a member's first year of service under either
of those subsections in a manner that, to the greatest extent
possible, minimizes the cost to the retirement system. This
subsection expires September 1, 2005.
SECTION 6.05. Subchapter E, Chapter 823, Government Code,
is amended by adding Section 823.406 to read as follows:
Sec. 823.406. CREDIT PURCHASE OPTION FOR CERTAIN SERVICE.
(a) A member may establish membership service credit under this
section only for service performed during a 90-day waiting period
to become a member after beginning employment.
(b) A member may establish service credit under this section
by depositing with the retirement system, for each month of service
credit, the actuarial present value, at the time of deposit, of the
additional standard retirement annuity benefits that would be
attributable to the purchase of the service credit under this
section, based on rates and tables recommended by the retirement
system's actuary and adopted by the board of trustees.
(c) After a member makes the deposits required by this
section, the retirement system shall grant the member one month of
equivalent membership service credit for each month of credit
approved.
(d) The retirement system shall deposit the amount of the
actuarial present value of the service credit purchased in the
member's individual account in the employees saving account.
(e) The board of trustees may adopt rules to administer this
section.
SECTION 6.06. Section 812.003, Government Code, as amended
by this article, and Section 813.514, Government Code, as added by
this article, apply only to a person who is first employed by or
begins to hold an office of the state on or after the effective date
of this article and to a former employee or office holder who has
withdrawn retirement contributions under Subchapter B, Chapter
812, Government Code, and is reemployed by or begins to again hold
an office of the state on or after the effective date of this
article.
SECTION 6.07. Section 822.001, Government Code, as amended
by this article, and Section 823.406, Government Code, as added by
this article, apply only to a person who is first employed on or
after the effective date of this article and to a former employee
who has withdrawn retirement contributions under Section 822.003,
Government Code, and is reemployed on or after the effective date of
this article.
SECTION 6.08. The requirements of Subsection (b), Section
823.002, Government Code, as added by this article, apply to
persons whose employment begins on or after the effective date of
this article. The board of trustees of the Teacher Retirement
System of Texas shall adopt rules implementing the requirements of
that subsection as soon as practicable after the effective date of
this article.
SECTION 6.09. This article takes effect July 1, 2003, if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
effect on that date, this article takes effect September 1, 2003.
ARTICLE 7. STATE AGENCY HUMAN RESOURCES STAFFING AND FUNCTIONS
SECTION 7.01. Subtitle B, Title 6, Government Code, is
amended by adding Chapter 670 to read as follows:
CHAPTER 670. HUMAN RESOURCES STAFFING AND FUNCTIONS
Sec. 670.001. DEFINITIONS. In this chapter:
(1) "Human resources employee" does not include an
employee whose primary job function is enforcement of Title VI or
Title VII of the Civil Rights Act of 1964.
(2) "State agency" means a department, commission,
board, office, authority, council, or other governmental entity in
the executive branch of government that is created by the
constitution or a statute of this state and has authority not
limited to a geographical portion of the state. The term does not
include a university system or institution of higher education as
defined by Section 61.003, Education Code.
Sec. 670.002. HUMAN RESOURCES STAFFING FOR LARGE STATE
AGENCIES. A state agency with 500 or more full-time equivalent
employees shall adjust the agency's human resources staff to
achieve a human resources employee-to-staff ratio of not more than
one human resources employee for every 85 staff members.
Sec. 670.003. HUMAN RESOURCES STAFFING FOR MEDIUM-SIZED AND
SMALL STATE AGENCIES; OUTSOURCING. (a) The State Council on
Competitive Government shall determine the cost-effectiveness of
consolidating the human resources functions of or contracting with
private entities to perform the human resources functions of state
agencies that employ fewer than 500 full-time equivalent employees.
(b) If the council determines that contracting with private
entities is cost-effective, the council shall issue a request for
proposals for vendors to perform the human resources functions of
the agencies.
(c) The council shall determine which human resources
functions are subject to the contract and which functions the
agency may select to perform itself.
(d) Each agency shall pay for the contracts for human
resources functions out of the agency's human resources budget.
SECTION 7.02. (a) Not later than January 1, 2004, each
state agency with 500 or more full-time equivalent employees shall
comply with the human resources employee-to-staff ratio
requirements in Section 670.002, Government Code, as added by this
article.
(b) Not later than January 1, 2004, the State Council on
Competitive Government shall conduct an initial feasibility study
to determine the cost-effectiveness of consolidating the human
resources functions of or contracting with private entities to
perform human resources functions of state agencies under Section
670.003, Government Code, as added by this article.
ARTICLE 8. AGENCY STAFFING AND PRODUCTIVITY
SECTION 8.01. Effective September 1, 2003, Section 651.004,
Government Code, is amended by adding Subsections (c-1) and (d) to
read as follows:
(c-1) A state agency in the executive branch of state
government that employs more than 100 full-time equivalent
employees may not, after August 31, 2004, employ more than one
full-time equivalent employee in a management position for every
eight full-time equivalent employees that the agency employs in
nonmanagerial staff positions. This subsection expires September
1, 2005.
(d) A state agency that believes that the minimum
management-to-staff ratios required by this section are
inappropriate for that agency may appeal to the Legislative Budget
Board. The Legislative Budget Board by rule shall adopt appeal
procedures.
SECTION 8.02. Effective March 1, 2004, Section 651.004,
Government Code, is amended by adding Subsection (c-2) to read as
follows:
(c-2) A state agency in the executive branch of state
government that employs more than 100 full-time equivalent
employees may not, after August 31, 2005, employ more than one
full-time equivalent employee in a management position for every
nine full-time equivalent employees that the agency employs in
nonmanagerial staff positions. This subsection expires September
1, 2006.
SECTION 8.03. Effective September 1, 2005, Section 651.004,
Government Code, is amended by adding Subsection (c-3) to read as
follows:
(c-3) A state agency in the executive branch of state
government that employs more than 100 full-time equivalent
employees may not, after August 31, 2006, employ more than one
full-time equivalent employee in a management position for every 10
full-time equivalent employees that the agency employs in
nonmanagerial staff positions. This subsection expires September
1, 2007.
SECTION 8.04. (a) Effective September 1, 2006, Section
651.004, Government Code, is amended by adding Subsection (c) to
read as follows:
(c) A state agency in the executive branch of state
government that employs more than 100 full-time equivalent
employees may not employ more than one full-time equivalent
employee in a management position for every 11 full-time equivalent
employees that the agency employs in nonmanagerial staff positions.
(b) A state agency in the executive branch of government
shall achieve the management-to-staff ratio required by Subsection
(c), Section 651.004, Government Code, as added by this section,
not later than August 31, 2007.
SECTION 8.05. Subchapter K, Chapter 659, Government Code,
is amended by adding Section 659.262 to read as follows:
Sec. 659.262. ADDITIONAL COMPENSATION FOR CERTAIN
CLASSIFIED STATE EMPLOYEES. (a) In this section, "state agency"
means an agency of any branch of state government that employs
individuals who are classified under Chapter 654.
(b) To enhance the recruitment of competent personnel for
certain classified employee positions, a state agency may provide
to a state employee, at the time of the employee's hiring for a
classified position, additional compensation in the form of a
one-time recruitment payment not to exceed $5,000. If the employee
discontinues employment with the state agency for any reason less
than three months after the date of receiving the recruitment
payment, the employee shall refund to the state agency the full
amount of the recruitment payment. If the employee discontinues
employment with the state agency for any reason three months or
longer but less than 12 months after the date of receiving the
recruitment payment, the employee shall refund to the state agency
an amount computed by:
(1) subtracting from 12 months the number of complete
calendar months the employee worked after the date of receiving the
recruitment payment;
(2) dividing the number of months computed under
Subdivision (1) by 12 months; and
(3) multiplying the fraction computed under
Subdivision (2) by the amount of the recruitment payment.
(c) To enhance the retention of employees who are employed
in certain classified positions that are identified by the chief
administrator of a state agency as essential for the state agency's
operations, a state agency may enter into a deferred compensation
contract with a classified employee to provide to the employee a
one-time additional compensation payment not to exceed $5,000 to be
added to the employee's salary payment the month after the
conclusion of the 12-month period of service under the deferred
compensation contract.
(d) To be eligible to enter into a contract for deferred
compensation under Subsection (c), a state employee must have
already completed at least 12 months of service in a classified
position.
(e) The chief administrator of a state agency shall
determine whether additional compensation is necessary under this
section on a case-by-case basis, considering:
(1) the criticality of the employee position in the
operations of the state agency;
(2) evidence of high turnover rates among employees
filling the position or an extended period during which the
position is or has in the past been vacant;
(3) evidence of a shortage of employees qualified to
fill the position or a shortage of qualified applicants; and
(4) other relevant factors.
(f) Before an agency provides or enters into a contract to
provide additional compensation to an employee under this section,
the chief administrator of the state agency must certify to the
comptroller in writing the reasons why the additional compensation
is necessary.
(g) Additional compensation paid to an employee under this
section is specifically exempted from any limitation on salary or
salary increases prescribed by this chapter.
SECTION 8.06. Subsection (b), Section 656.048, Government
Code, is repealed.
ARTICLE 9. ABANDONMENT OF PROCEEDS ON DEMUTUALIZATION
SECTION 9.01. Section 72.101, Property Code, is amended by
adding Subsections (c) and (d) to read as follows:
(c) Property distributable in the course of a
demutualization, rehabilitation, or related reorganization of an
insurance company is presumed abandoned on the first anniversary of
the date the property becomes distributable if, on that date:
(1) the last known address of the owner according to
the records of the holder of the property is known to be incorrect
or the distribution or statements related to the distribution are
returned by the post office as undeliverable; and
(2) the owner has not:
(A) communicated in writing with the holder of
the property or the holder's agent regarding the interest; or
(B) otherwise communicated with the holder
regarding the interest as evidenced by a memorandum or other record
on file with the holder or its agents.
(d) Property distributable in the course of a
demutualization, rehabilitation, or related reorganization of an
insurance company that is not subject to Subsection (c) is presumed
abandoned as otherwise provided by this section.
SECTION 9.02. Section 74.301, Property Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) Except as provided by Subsection (c) or (d), each holder
who on June 30 holds property that is presumed abandoned under
Chapter 72, 73, or 75 shall deliver the property to the comptroller
on or before the following November 1 accompanied by the report
required to be filed under Section 74.101.
(d) If the property subject to delivery under Subsection (a)
is proceeds from the demutualization, rehabilitation, or related
reorganization of an insurance company, the holder shall deliver
the property and required report to the comptroller on or before the
following August 1.
SECTION 9.03. This article takes effect June 30, 2003, if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
this article to take effect on that date, this article takes effect
September 1, 2003.
ARTICLE 10. SALES TAX ON MOTOR VEHICLES
SECTION 10.01. Section 152.002, Tax Code, is amended by
adding Subsection (f) to read as follows:
(f) Notwithstanding Subsection (a), the total consideration
of a used motor vehicle is the amount on which the tax is computed as
provided by Section 152.0412.
SECTION 10.02. Subsection (a), Section 152.041, Tax Code,
is amended to read as follows:
(a) The tax assessor-collector of the county in which an
application for registration or for a Texas certificate of title is
made shall collect taxes imposed by this chapter, subject to
Section 152.0412, unless another person is required by this chapter
to collect the taxes.
SECTION 10.03. Subchapter C, Chapter 152, Tax Code, is
amended by adding Section 152.0412 to read as follows:
Sec. 152.0412. STANDARD PRESUMPTIVE VALUE; USE BY TAX
ASSESSOR-COLLECTOR. (a) In this section, "standard presumptive
value" means the average retail value of a motor vehicle as
determined by the Texas Department of Transportation, based on a
nationally recognized motor vehicle industry reporting service.
(b) If the amount paid for a motor vehicle subject to the tax
imposed by this chapter is equal to or greater than the standard
presumptive value of the vehicle, a county tax assessor-collector
shall compute the tax on the amount paid.
(c) If the amount paid for a motor vehicle subject to the tax
imposed by this chapter is less than the standard presumptive value
of the vehicle, a county tax assessor-collector shall compute the
tax on the standard presumptive value unless the purchaser
establishes the retail value of the vehicle as provided by
Subsection (d).
(d) A county tax assessor-collector shall compute the tax
imposed by this chapter on the retail value of a motor vehicle if:
(1) the retail value is shown on an appraisal
certified by an adjuster licensed under Article 21.07-4, Insurance
Code, or by a motor vehicle dealer operating under Subchapter B,
Chapter 503, Transportation Code;
(2) the appraisal is on a form prescribed by the
comptroller for that purpose; and
(3) the purchaser of the vehicle obtains the appraisal
not later than the 20th day after the date of purchase.
(e) On request, a motor vehicle dealer operating under
Subchapter B, Chapter 503, Transportation Code, shall provide a
certified appraisal of the retail value of a motor vehicle. The
comptroller by rule shall establish a fee that a dealer may charge
for providing the certified appraisal. The county tax
assessor-collector shall retain a copy of a certified appraisal
received under this section for a time period to be promulgated by
the comptroller.
(f) The Texas Department of Transportation shall maintain
information on the standard presumptive values of motor vehicles as
part of the department's registration and title system. The
department shall update the information at least quarterly each
calendar year.
SECTION 10.04. (a) Not later than September 1, 2003, the
Texas Department of Transportation shall:
(1) establish standard presumptive values for motor
vehicles as provided by Section 152.0412, Tax Code, as added by this
Act;
(2) modify the department's registration and title
system as needed to include that information and administer that
section; and
(3) make that information available through the system
to all county tax assessor-collectors.
(b) The comptroller shall certify the date on which the
Texas Department of Transportation's registration and title
system, as modified under Subsection (a) of this section, is in use
by the 25 county tax assessor-collectors that remitted to the
comptroller the largest amount of taxes imposed under Chapter 152,
Tax Code, during the state fiscal year ending August 31, 2003.
(c) If the date certified by the comptroller under
Subsection (b) of this section is later than September 23, 2003, the
Texas Department of Transportation shall transfer $8 million from
the state highway fund to the general revenue fund on the first day
of each month after that date until the earlier of:
(1) the date the comptroller issues the certification
under Subsection (b) of this section; or
(2) the date the total amount transferred under this
subsection equals the lesser of:
(A) $200 million; or
(B) the total amount in the state highway fund
that is not allocated as the result of a requirement in the Texas
Constitution.
ARTICLE 11. INSURANCE FOR VOLUNTEER MEMBERS OF STATE BOARDS
SECTION 11.01. Subsection (c), Section 1551.101, Insurance
Code, as effective June 1, 2003, is amended to read as follows:
(c) Subject to Section 1551.321, an [An] individual is
eligible to participate in the group benefits program as provided
by Subsection (a) if the individual is appointed, subject to
confirmation by the senate, as a member of the governing body with
administrative responsibility over a statutory state agency that
has statewide jurisdiction and whose employees are covered by this
chapter.
SECTION 11.02. Subchapter G, Chapter 1551, Insurance Code,
as effective June 1, 2003, is amended by adding Section 1551.321 to
read as follows:
Sec. 1551.321. STATE CONTRIBUTION FOR CERTAIN INDIVIDUALS.
(a) The state or a state agency may not make any contribution to
the cost of any coverages or benefits provided under this chapter
for an individual described by Section 1551.101(c) or a dependent
of the individual.
(b) An individual described by Section 1551.101(c) who
participates in the group benefits program shall pay to the
trustee, in the manner specified by the trustee, the full cost of
the coverages or benefits provided to the individual or a dependent
of the individual.
SECTION 11.03. (a) The change in law made by this article
by the addition of Section 1551.321, Insurance Code, applies only
to group coverages provided under the group benefits program
established under Chapter 1551, Insurance Code, on and after
September 1, 2003.
(b) Not later than the 30th day after the effective date of
Section 1551.321, Insurance Code, as added by this article, the
Employees Retirement System of Texas shall notify each individual
eligible to participate in the group benefits program under Chapter
1551, Insurance Code, in accordance with Subsection (c), Section
1551.101, Insurance Code, of the applicable requirements of Section
1551.321, Insurance Code.
ARTICLE 12. UNCLAIMED PROPERTY
SECTION 12.01. Subsection (a), Section 72.101, Property
Code, is amended to read as follows:
(a) Except as provided by this section and Sections 72.1015
and [Section] 72.102, personal property is presumed abandoned if,
for longer than three years:
(1) the existence and location of the owner of the
property is unknown to the holder of the property; and
(2) according to the knowledge and records of the
holder of the property, a claim to the property has not been
asserted or an act of ownership of the property has not been
exercised.
SECTION 12.02. Subchapter B, Chapter 72, Property Code, is
amended by adding Section 72.1015 to read as follows:
Sec. 72.1015. UNCLAIMED WAGES. (a) In this section,
"wages" has the meaning assigned by Section 61.001, Labor Code.
(b) An amount of unclaimed wages is presumed abandoned if,
for longer than one year:
(1) the existence and location of the person to whom
the wages are owed is unknown to the holder of the wages; and
(2) according to the knowledge and records of the
holder of the wages, a claim to the wages has not been asserted or an
act of ownership of the wages has not been exercised.
ARTICLE 13. APPROVAL OF STATE SECURITY
SECTION 13.01. Section 1231.041, Government Code, is
amended to read as follows:
Sec. 1231.041. APPROVAL OF STATE SECURITY. (a) An entity,
including a state agency, may not issue a state security unless:
(1) the board approves the issuance; or
(2) the security is exempted under Section
1231.022(2).
(b) In this section, "state security" includes commercial
paper or other similar short-term state security issued for the
interim financing of a project that will be permanently financed
with tuition revenue bonds or state securities secured by general
revenue of the state.
ARTICLE 14. JOINT EMERGENCY ORDERS RELATING TO STATE AGENCIES
SECTION 14.01. Subchapter F, Chapter 401, Government Code,
is amended by adding Section 401.105 to read as follows:
Sec. 401.105. JOINT EMERGENCY ORDERS. (a) In this
section, "state agency" includes an institution of higher education
as defined by Section 61.003, Education Code, other than a public
junior college. The term does not include a state agency that is
headed by a statewide-elected official.
(b) For the purposes of this section, an emergency is the
occurrence of gross fiscal mismanagement or misappropriation of
funds or a natural or man-made disaster.
(c) If the governor determines that an emergency exists, the
governor shall submit to the Legislative Budget Board a plan that:
(1) identifies the emergency in reasonable detail;
(2) proposes changes in the organization and
operations of a state agency that the governor considers necessary
as a result of the emergency; and
(3) identifies changes in the budget or appropriation
for the agency that are required as a result of the proposed changes
in the organization and operations of the agency.
(d) If the Legislative Budget Board agrees that an emergency
exists, the board may agree with the governor's proposed plan or may
propose modifications in the plan submitted under Subsection (c).
Upon agreement, the governor and the board may jointly issue an
emergency order requiring the agency to implement the changes in
its organization and operations as provided in the order.
(e) An emergency order issued jointly by the governor and
the Legislative Budget Board under this section has the force and
effect of law.
(f) The governor and the Legislative Budget Board may
jointly amend or rescind an emergency order issued under this
section at any time.
ARTICLE 15. TEXAS HIGHER EDUCATION COORDINATING BOARD
SECTION 15.01. Section 61.022, Education Code, is amended
to read as follows:
Sec. 61.022. MEMBERS OF BOARD; APPOINTMENT; TERMS OF
OFFICE. The board shall consist of nine [18] members appointed by
the governor so as to provide representation from all areas of the
state with the advice and consent of the senate, and as the
constitution provides. Members of the board serve staggered
six-year terms. The terms of one-third of the members expire August
31 of each odd-numbered year. [Of the initial appointments to the
board six shall be for terms which shall expire August 31, 1967, six
for terms which shall expire August 31, 1969, and six for terms
which shall expire on August 31, 1971, or at such time as their
successors are appointed and have qualified. Thereafter, the
governor shall appoint members for terms of six years. Members of
the Texas Commission on Higher Education are eligible for
appointment to the board.] No member may be employed
professionally for remuneration in the field of education during
his term of office.
SECTION 15.02. To achieve an orderly transition from 18 to 9
positions on the Texas Higher Education Coordinating Board, the
governor on August 31, 2003, or September 1, 2003, shall appoint
only three persons to the coordinating board for terms expiring on
August 31, 2009. On, or as soon as possible after, August 31, 2005,
the governor shall appoint only four members to the coordinating
board for terms expiring on August 31, 2011. On, or as soon as
possible after, August 31, 2007, the governor shall appoint only
two members to the coordinating board for terms expiring on August
31, 2013. As terms on the coordinating board expire on and after
August 31, 2009, the governor shall appoint three members to the
coordinating board in accordance with Section 61.022, Education
Code, as amended by this Act.
ARTICLE 16. REVIEW OF UNIVERSITY SYSTEM ADMINISTRATION
SECTION 16.01. Subchapter C, Chapter 61, Education Code, is
amended by adding Section 61.0515 to read as follows:
Sec. 61.0515. REVIEW OF UNIVERSITY SYSTEM ADMINISTRATION.
(a) The board shall perform a review of the organization and
operations of each university system office to:
(1) identify appropriate organizational structures
for university systems and system offices;
(2) identify and quantify workforce and other
resources at each system office used to provide services and
functions common to each system office; and
(3) determine the extent to which system
administration employees are performing services and functions
that are also provided by employees of individual component
institutions of each university system.
(b) In the review, the board shall identify the number and
types of administrative and executive positions in the
administration of each university system, and shall examine each
major function, service, or activity performed by university system
offices, including:
(1) central administration;
(2) academic affairs coordination and support;
(3) general counsel and other legal services;
(4) budgeting, accounting, and data reporting;
(5) fiscal management;
(6) facilities planning and construction;
(7) governmental relations;
(8) audit services;
(9) real estate management;
(10) information technology services; and
(11) aircraft operation and usage.
(c) Not later than November 1, 2004, the board shall prepare
a report of the review and deliver the report to the governor,
lieutenant governor, speaker of the house of representatives,
Legislative Budget Board, and chair of the standing committee of
each house of the legislature with primary jurisdiction over higher
education. In the report, the board shall state its findings and
identify opportunities for legislative and administrative action
relating to:
(1) the reorganization of university system offices
and functions;
(2) the consolidation or reorganization of university
systems; and
(3) the consolidation or centralization of functions,
services, or activities of university system offices.
(d) In the report, the board shall identify potential
reductions in personnel and other cost savings associated with each
legislative or administrative action the board identifies under
Subsection (c).
(e) This section expires September 1, 2005.
ARTICLE 17. FEES FOR RAIL SAFETY PROGRAM
SECTION 17.01. Article 6448a, Revised Statutes, is amended
to read as follows:
Art. 6448a. IMPLEMENTATION OF FEDERAL RAILROAD SAFETY ACT
OF 1970
Sec. 1. The Railroad Commission of Texas is hereby
authorized to perform any act and issue any rules and orders as
permitted by the Federal Railroad Safety Act of 1970 (45 U.S.C.A.
431 et seq.).
Sec. 2. (a) The Railroad Commission of Texas by rule shall
adopt and provide for the collection of reasonable fees to be
assessed annually against railroads operating within this state.
The amount of a fee imposed under this article may not exceed an
amount estimated by the commission to be sufficient in the
aggregate to recover the costs of administering the commission's
rail safety program.
(b) To provide for the equitable allocation of the cost of
administering the commission's rail safety program among
railroads, the commission may consider the gross ton miles for
railroad operations within this state for each railroad operating
in the state when assessing a fee.
(c) A fee collected under this section shall be deposited to
the credit of the general revenue fund.
ARTICLE 18. ECONOMIC IMPACT OF LOTTERY CONTRACTS
SECTION 18.01. Section 466.101, Government Code, is amended
by adding Subsections (f) through (i) to read as follows:
(f) In awarding a contract under this chapter or evaluating
a bid or proposal relating to a contract, the executive director may
consider a vendor's economic impact to the state or a political
subdivision of the state.
(g) For contracts for which the executive director will
consider a vendor's economic impact under Subsection (f), the
commission by rule shall prescribe:
(1) the type of documentation a vendor must submit to
demonstrate the vendor's potential economic impact; and
(2) the manner and methodology by which the executive
director will evaluate a vendor's economic impact.
(h) The methodology developed under Subsection (g) to
determine a vendor's economic impact to this state or a political
subdivision of this state is subject to audit by the state auditor
based on a risk assessment performed by the state auditor and
subject to the legislative audit committee's approval for inclusion
of the work in the audit plan under Section 321.013(c).
(i) In this section, "economic impact" means the number of:
(1) current employees in this state and the amount of
wages being paid to those employees, including any subcontractor's
employees and wages; and
(2) full-time equivalent positions to be created in
this state and the additional amount of wages to be paid to
employees in this state as a result of awarding a contract,
including a proposed subcontractor's employees and wages.
ARTICLE 19. WRITTEN COMMENTS BY THE GENERAL LAND OFFICE ON TEXAS
BUILDING AND PROCUREMENT COMMISSION LEASES
SECTION 19.01. The following sections are repealed:
(1) Section 2165.154, Government Code; and
(2) Section 2165.204, Government Code.
ARTICLE 20. DEFINITION OF RECYCLED PRODUCT
SECTION 20.01. Section 2155.445, Government Code, is
amended by adding Subsection (d) to read as follows:
(d) In addition to the products covered by the definition
adopted by rule under this section, in this section "recycled
product" includes recycled steel products. The preference for
recycled steel products under this section applies also to products
purchased in connection with projects described by Section
2166.003.
ARTICLE 21. JOINT INTERIM COMMITTEE ON POSTCONVICTION
EXONERATIONS
SECTION 21.01. (a) The joint interim committee on
postconviction exonerations is established to:
(1) study the causes of and investigate wrongful
criminal convictions;
(2) identify appropriate improvements in the criminal
justice system to prevent future wrongful convictions;
(3) recommend policies, procedures, practices, and
legislation needed to prevent future wrongful convictions; and
(4) assess the procedures used by counties to ensure
due process and suggest a statewide model for procedures ensuring
due process.
(b) The joint interim committee is composed of the following
nine members:
(1) an attorney who represents the state in the
prosecution of felonies, as appointed by the attorney general;
(2) two members of the criminal justice committee of
the senate who are appointed by the lieutenant governor;
(3) two members of the criminal jurisprudence
committee of the house of representatives who are appointed by the
speaker of the house of representatives;
(4) a member of the judiciary who is appointed by the
chief justice of the supreme court;
(5) two law professors who are appointed by the
chancellor of The University of Texas System, one of whom works in
the forensic science field; and
(6) a criminal defense attorney who is appointed by
the Texas Criminal Defense Lawyers Association.
(c) The lieutenant governor shall designate one of the
members of the criminal justice committee of the senate appointed
to the joint interim committee as described by Subsection (b) of
this section to serve as the chair of the interim committee.
(d) The joint interim committee shall meet initially at the
call of the chair of the interim committee, and the interim
committee shall subsequently hold meetings and public hearings at
the call of the chair. To the extent that it is financially
possible, the interim committee shall hold public hearings in
multiple locations across this state.
(e) The interim committee may issue process as provided by
the senate and house of representatives rules of procedure and by
Section 301.024, Government Code, and has all other powers and
duties provided to special committees by the senate and house of
representatives rules of procedure, by Subchapter B, Chapter 301,
Government Code, and by policies of the committees on
administration.
(f) From the contingent expense fund of the senate and the
contingent expense fund of the house of representatives equally,
the members of the interim committee shall be reimbursed for
expenses incurred in carrying out the provisions of this Act in
accordance with the senate and house of representatives rules of
procedure and the policies of the committees on administration.
Other necessary expenses of operation shall be paid from the
contingent expense fund of the senate and the contingent expense
fund of the house of representatives equally.
(g) Not later than October 1, 2004, the joint interim
committee shall prepare and deliver to the governor, the lieutenant
governor, and the speaker of the house of representatives copies of
a report containing the interim committee's findings and
recommendations.
SECTION 21.02. A person or association required to appoint
a member to the joint interim committee on postconviction
exonerations shall make the appointment not later than October 1,
2003.
ARTICLE 22. ECONOMIC DEVELOPMENT PROGRAMS
SECTION 22.01. Subchapter B, Chapter 481, Government Code,
is amended by adding Section 481.0215 to read as follows:
Sec. 481.0215. COORDINATION OF ECONOMIC DEVELOPMENT
EFFORTS. (a) The executive director of the department shall work
with the legislature and state agencies to identify grants and
programs at all levels of government and to maximize access to
federal funds for economic development.
(b) At the direction of the governor, the executive director
of the department shall work with each state agency that
administers a program relating to job training or job creation,
including the Texas Workforce Commission, the Council on Workforce
and Economic Competitiveness, the Department of Agriculture, and
the Office of Rural Affairs, to address the challenges facing the
agencies relating to job training and job creation.
(c) The executive director of the department may form
partnerships or enter into agreements with private entities and
develop connections with existing businesses in this state for the
purpose of improving the marketing of this state through networking
and clarifying the potential of the businesses for expansion.
SECTION 22.02. Subchapter E, Chapter 481, Government Code,
is amended by adding Section 481.078 to read as follows:
Sec. 481.078. TEXAS ENTERPRISE FUND. (a) The Texas
enterprise fund is an account in the general revenue fund.
(b) The following amounts shall be deposited in the fund:
(1) any amounts appropriated by the legislature for
the fund;
(2) interest earned on the investment of money in the
fund; and
(3) gifts, grants, and other donations received for
the fund.
(c) The fund may be used for economic development,
infrastructure development, community development, job training
programs, and business incentives, and new military missions at
Texas military installations.
(d) The fund may be temporarily used by the comptroller for
cash management purposes.
(e) The governor may negotiate on behalf of the state to
grant money from the fund and may only direct the use of money from
the fund with the express written consent of the lieutenant
governor and the speaker of the house of representatives.
(f) Before granting money from the fund, the governor may
enter into a written agreement with the entity being granted funds
specifying that:
(1) if all or any portion of the amount of the grant is
used to build infrastructure or make any other type of capital
improvement, the state must:
(A) retain a lien or other interest in the
capital improvement in proportion to the percentage of the grant
amount used to pay for the capital improvement; and
(B) ensure that if the capital improvement is
sold, the recipient repays the department, with interest at the
agreed rate and terms, any state money used to pay for the capital
improvement and shares with this state a proportionate amount of
any profit realized from the sale; and
(2) if, on the expiration of a date provided in the
agreement, the grant recipient fails to use an amount awarded under
this section for any of the purposes for which the grant was
intended, the recipient shall repay that amount and any related
interest to the state at the agreed rate and on the agreed terms.
SECTION 22.03. Subchapter K, Chapter 481, Government Code,
is amended by adding Section 481.169 to read as follows:
Sec. 481.169. ADVISORY BOARD OF ECONOMIC DEVELOPMENT
STAKEHOLDERS. (a) An advisory board of economic development
stakeholders is created to assist the department.
(b) The advisory board is composed of seven members who
serve staggered four-year terms. The governor shall appoint three
members, the lieutenant governor shall appoint two members, and the
speaker of the house of representatives shall appoint two members
to the advisory board. The governor, lieutenant governor, and
speaker of the house of representatives shall each appoint one of
the initial members to a two-year term. Thereafter, each member of
the advisory board shall be appointed to a four-year term.
(c) The advisory board shall collect and disseminate
information on federal, state, local, and private community
economic development programs, including loans, grants, and other
funding sources.
SECTION 22.04. Section 311.0125, Tax Code, is amended by
adding Subsection (e) to read as follows:
(e) The Texas Department of Economic Development may
recommend that a taxing unit enter into a tax abatement agreement
with a person under this chapter. In determining whether to approve
an agreement to abate taxes on real property in a reinvestment zone
under Subsection (b), the board of directors of the reinvestment
zone and the governing body of a taxing unit shall consider any
recommendation made by the Texas Department of Economic
Development.
SECTION 22.05. Section 312.204, Tax Code, is amended by
adding Subsection (g) to read as follows:
(g) The Texas Department of Economic Development may
recommend that a taxing unit enter into a tax abatement agreement
with a person under this chapter. In determining whether to enter
into a tax abatement agreement under this section, the governing
body of a municipality shall consider any recommendation made by
the Texas Department of Economic Development.
SECTION 22.06. Section 312.402, Tax Code, is amended by
adding Subsection (f) to read as follows:
(f) The Texas Department of Economic Development may
recommend that a taxing unit enter into a tax abatement agreement
with a person under this chapter. In determining whether to enter
into a tax abatement agreement under this section, the
commissioners court of a county shall consider any recommendation
made by the Texas Department of Economic Development.
SECTION 22.07. Section 313.025, Tax Code, is amended by
adding Subsection (g) to read as follows:
(g) The Texas Department of Economic Development may
recommend that a school district grant a person a limitation on
appraised value under this chapter. In determining whether to
grant an application, the governing body of the school district
shall consider any recommendation made by the Texas Department of
Economic Development.
ARTICLE 23. BOARD OF PARDONS AND PAROLES
SECTION 23.01. Section 508.001, Government Code, is amended
by amending Subdivision (8) and adding Subdivision (10) to read as
follows:
(8) "Parole commissioner" means a person employed by
the board to perform the duties described by Section 508.0441
["Policy board" means the Board of Pardons and Paroles Policy
Board].
(10) "Presiding officer" means the presiding officer
of the Board of Pardons and Paroles.
SECTION 23.02. Subsection (a), Section 508.031, Government
Code, is amended to read as follows:
(a) The board consists of seven [18] members appointed by
the governor with the advice and consent of the senate.
SECTION 23.03. Section 508.034, Government Code, is amended
to read as follows:
Sec. 508.034. GROUNDS FOR REMOVAL. (a) It is a ground for
removal from the board that a member:
(1) does not have at the time of taking office the
qualification required by Section 508.032(b) for appointment to the
board;
(2) is ineligible for membership under Section
508.033;
(3) is unable to discharge the member's duties for a
substantial part of the term for which the member is appointed
because of illness or disability; or
(4) is absent from more than half of the regularly
scheduled board or panel meetings that the member is eligible to
attend during each calendar year, except when the absence is
excused by [majority vote of] the presiding officer [board].
(b) [It is a ground for removal from the board and the policy
board if a member of the policy board is absent from more than half
of the regularly scheduled policy board meetings that the member is
eligible to attend during each calendar year.
[(c)] The board administrator or the board administrator's
designee shall provide to members of the board[, to members of the
policy board,] and to employees, as often as necessary, information
regarding their qualification for office or employment under this
chapter and their responsibilities under applicable laws relating
to standards of conduct for state officers or employees.
(c) [(d)] The validity of an action of[:
[(1)] the board or panel is not affected by the fact
that the action is taken when a ground for removal of a board member
exists[; and
[(2) the policy board is not affected by the fact that
the action is taken when a ground for removal of a member of the
policy board exists].
(d) [(e)] If the general counsel to the board has knowledge
that a potential ground for removal exists, the general counsel
shall notify the presiding officer of the board of the potential
ground. The presiding officer shall notify the governor and the
attorney general that a potential ground for removal exists. If the
potential ground for removal involves the presiding officer, the
general counsel to the board shall notify the governor and the
attorney general that a potential ground for removal exists.
(e) [(f)] It is a ground for removal from the board that a
member fails to comply with policies or rules adopted by the
[policy] board.
SECTION 23.04. Section 508.035, Government Code, is amended
by amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) The presiding officer reports directly to the governor
and serves as the administrative head of the [policy board and the]
board.
(d) The presiding officer may:
(1) delegate responsibilities and authority to other
members of the board, parole commissioners, or to employees of the
board;
(2) appoint advisory committees from the membership of
the board or from parole commissioners to further the efficient
administration of board business; and
(3) establish policies and procedures to further the
efficient administration of the business of the board.
SECTION 23.05. Section 508.036, Government Code, is amended
to read as follows:
Sec. 508.036. [POLICY BOARD: COMPOSITION;] GENERAL
ADMINISTRATIVE DUTIES. (a) The presiding officer [governor shall
designate six members of the board to serve as the Board of Pardons
and Paroles Policy Board. The governor shall designate the
presiding officer of the board as one of the six members of the
policy board, and the presiding officer of the board shall serve as
presiding officer of the policy board. Service on the policy board
is an additional duty of office for members appointed to the policy
board.
[(b) Members of the board designated as members of the
policy board serve on the policy board for six-year terms that are
concurrent with their six-year terms on the board, with the service
of two members expiring February 1 of each odd-numbered year.
[(c) The policy board] shall:
(1) develop and implement policies that clearly
separate the policy-making responsibilities of the board and the
management responsibilities of the board administrator, parole
commissioners, and the staff of the board [adopt rules relating to
the decision-making processes used by the board and parole panels];
(2) establish caseloads and required work hours for
members of the board and parole commissioners [assign duties to
members of the policy board that are in addition to the duties those
members have in handling a caseload];
(3) update parole guidelines, assign precedential
value to previous decisions of the board relating to the granting of
parole and the revocation of parole or mandatory supervision, and
develop policies to ensure that members of the board and parole
commissioners use guidelines and previous decisions of the board
and parole commissioners in making decisions under this chapter;
(4) require members of the board and parole
commissioners to file activity reports[, on forms provided by the
policy board,] that provide information on release decisions made
by members of the board and parole commissioners, the workload and
hours worked of the members of the board and parole commissioners,
and the use of parole guidelines by members of the board and parole
commissioners; and
(5) report at least annually to the governor and the
legislature on the [board] activities of the board and parole
commissioners, parole release decisions, and the use of parole
guidelines by the board and parole commissioners.
(b) The board shall:
(1) adopt rules relating to the decision-making
processes used by the board and parole panels;
(2) prepare information of public interest describing
the functions of the board and make the information available to the
public and appropriate state agencies;
(3) comply with federal and state laws related to
program and facility accessibility; and
(4) prepare annually a complete and detailed written
report that meets the reporting requirements applicable to
financial reporting provided in the General Appropriations Act and
accounts for all funds received and disbursed by the board during
the preceding fiscal year.
(c) The board administrator shall prepare and maintain a
written plan that describes how a person who does not speak English
can be provided reasonable access to the board's programs and
services.
(d) The board, in performing its duties, is subject to the
open meetings law, Chapter 551, and the administrative procedure
law, Chapter 2001. This subsection does not affect the provisions
of Section 2001.223 exempting hearings and interviews conducted by
the board or the division from Section 2001.038 and Subchapters
C-H, Chapter 2001.
SECTION 23.06. Section 508.0362, Government Code, is
amended to read as follows:
Sec. 508.0362. TRAINING REQUIRED. (a)(1) A person who is
appointed to and qualifies for office as a member of the board [or
the policy board] may not vote, deliberate, or be counted as a
member in attendance at a meeting of the board [or policy board]
until the person completes at least one course of a training program
that complies with this section.
(2) A parole commissioner employed by the board may
not vote or deliberate on a matter described by Section 508.0441
until the person completes at least one course of a training program
that complies with this section.
(b) A training program must provide information to the
person regarding:
(1) the enabling legislation that created the board
[and the policy board];
(2) the programs operated by the board;
(3) the role and functions of the board and parole
commissioners;
(4) the rules of the board;
(5) the current budget for the board;
(6) the results of the most recent formal audit of the
board;
(7) the requirements of the:
(A) open meetings law, Chapter 551;
(B) open records law, Chapter 552; and
(C) administrative procedure law, Chapter 2001;
(8) the requirements of the conflict of interest laws
and other laws relating to public officials; and
(9) any applicable ethics policies adopted by the
[policy] board or the Texas Ethics Commission.
(c) A person appointed to the board [or policy board] is
entitled to reimbursement, as provided by the General
Appropriations Act, for the travel expenses incurred in attending
the training program regardless of whether the attendance at the
program occurs before or after the person qualifies for office.
SECTION 23.07. Subsection (a), Section 508.040, Government
Code, is amended to read as follows:
(a) The presiding officer is responsible for the employment
and supervision of [policy board shall employ and supervise]:
(1) parole commissioners;
(2) a general counsel to the board;
(3) [(2)] a board administrator to manage the
day-to-day activities of the board;
(4) [(3)] hearing officers;
(5) [(4)] personnel to assist in clemency and hearing
matters; and
(6) [(5)] secretarial or clerical personnel.
SECTION 23.08. Section 508.041, Government Code, is amended
to read as follows:
Sec. 508.041. DESIGNEE TRAINING; HANDBOOK. (a) The
[policy] board shall develop and implement:
(1) a training program that each newly hired employee
of the board designated to conduct hearings under Section 508.281
must complete before conducting a hearing without the assistance of
a board member or experienced parole commissioner or designee; and
(2) a training program to provide an annual update to
designees of the board on issues and procedures relating to the
revocation process.
(b) The [policy] board shall prepare and biennially update a
procedural manual to be used by designees of the board. The
[policy] board shall include in the manual:
(1) descriptions of decisions in previous hearings
determined by the [policy] board to have value as precedents for
decisions in subsequent hearings;
(2) laws and court decisions relevant to decision
making in hearings; and
(3) case studies useful in decision making in
hearings.
(c) The [policy] board shall prepare and update as necessary
a handbook to be made available to participants in hearings under
Section 508.281, such as defense attorneys, persons released on
parole or mandatory supervision, and witnesses. The handbook must
describe in plain language the procedures used in a hearing under
Section 508.281.
SECTION 23.09. Section 508.042, Government Code, is amended
to read as follows:
Sec. 508.042. TRAINING PROGRAM FOR MEMBERS AND PAROLE
COMMISSIONERS. (a) The [policy] board shall develop for board
members and parole commissioners a comprehensive training and
education program on the criminal justice system, with special
emphasis on the parole process.
(b)(1) A new member may not participate in a vote of the
board or a panel, deliberate, or be counted as a member in
attendance at a meeting of the board [or policy board] until the
member completes the program.
(2) A new parole commissioner may not participate in a
vote of a panel until the commissioner completes the program. This
subdivision does not apply to a new parole commissioner who as a
board member completed the program.
SECTION 23.10. Subchapter B, Chapter 508, Government Code,
is amended by amending Section 508.044 and adding Section 508.0441
to read as follows:
Sec. 508.044. POWERS AND DUTIES OF BOARD. [(a)] A board
member shall give full time to the duties of the member's office,
including[.
[(b) In addition to performing the] duties imposed on the
board by the Texas Constitution and other law.
Sec. 508.0441. RELEASE AND REVOCATION DUTIES. (a) Board[,
board] members and parole commissioners shall determine:
(1) which inmates are to be released on parole or
mandatory supervision;
(2) conditions of parole or mandatory supervision,
including special conditions;
(3) the modification and withdrawal of conditions of
parole or mandatory supervision;
(4) which releasees may be released from supervision
and reporting; and
(5) the continuation, modification, and revocation of
parole or mandatory supervision.
(b) [(c)] The [policy] board shall develop and implement a
policy that clearly defines circumstances under which a board
member or parole commissioner should disqualify himself or herself
from voting on:
(1) a parole decision; or
(2) a decision to revoke parole or mandatory
supervision.
(c) [(d)] The [policy] board may adopt reasonable rules as
[the policy board considers] proper or necessary relating to:
(1) the eligibility of an inmate for release on parole
or release to mandatory supervision;
(2) the conduct of a parole or mandatory supervision
hearing; or
(3) conditions to be imposed on a releasee.
(d) [(e)] The presiding officer [policy board] may provide
a written plan for the administrative review of actions taken by a
parole panel by a review panel [the entire membership or by a subset
of the entire membership of the board].
(e) [(f)] Board members and parole commissioners shall, at
the direction of the presiding officer, file activity reports on
duties performed under this chapter.
SECTION 23.11. Section 508.045, Government Code, is amended
to read as follows:
Sec. 508.045. PAROLE PANELS. (a) Except as provided by
Section 508.046, board members and parole commissioners shall act
in panels composed of three [persons each] in matters of:
(1) release on parole;
(2) release to mandatory supervision; and
(3) revocation of parole or mandatory supervision.
(b) The presiding officer [of the board] shall designate the
composition of each panel, and may designate panels composed only
of board members, composed only of parole commissioners, or
composed of any combination of members and parole commissioners.
(c) A parole panel may:
(1) grant, deny, or revoke parole;
(2) revoke mandatory supervision; and
(3) conduct parole revocation hearings and mandatory
supervision revocation hearings.
SECTION 23.12. Subsection (a), Section 508.047, Government
Code, is amended to read as follows:
(a) The members of the [policy] board shall meet at least
once in each quarter of the calendar year at a site determined by
the presiding officer.
SECTION 23.13. Subsection (b), Section 508.047, Government
Code, is amended to read as follows:
(b) Except as provided by Article 48.011, Code of Criminal
Procedure, the [The] members of the board are not required to meet
as a body to perform the members' duties in clemency matters.
SECTION 23.14. Section 508.049, Government Code, is amended
to read as follows:
Sec. 508.049. MISSION STATEMENT. (a) The [policy] board,
after consultation with the governor and the Texas Board of
Criminal Justice, shall adopt a mission statement that reflects the
responsibilities for the operation of the parole process that are
assigned to the [policy board, the] board, the division, the
department, or the Texas Board of Criminal Justice.
(b) The [policy] board shall include in the mission
statement a description of specific locations at which the board
intends to conduct business related to the operation of the parole
process.
SECTION 23.15. Section 508.082, Government Code, is amended
to read as follows:
Sec. 508.082. RULES. The [policy] board shall adopt rules
relating to:
(1) the submission and presentation of information and
arguments to the board, a parole panel, and the department for and
in behalf of an inmate; and
(2) the time, place, and manner of contact between a
person representing an inmate and:
(A) a member of the board or a parole
commissioner;
(B) an employee of the board; or
(C) an employee of the department.
SECTION 23.16. Subsection (b), Section 508.144, Government
Code, is amended to read as follows:
(b) If a board member or parole commissioner deviates from
the parole guidelines in voting on a parole decision, the member or
parole commissioner shall:
(1) produce a brief written statement describing the
circumstances regarding the departure from the guidelines; and
(2) place a copy of the statement in the file of the
inmate for whom the parole decision was made.
SECTION 23.17. Subsection (b), Section 508.153, Government
Code, is amended to read as follows:
(b) If more than one person is entitled to appear in person
before the board members or parole commissioners, only the person
chosen by all persons entitled to appear as the persons' sole
representative may appear [before the board members].
SECTION 23.18. Subsection (a), Section 508.281, Government
Code, is amended to read as follows:
(a) A releasee, a person released although ineligible for
release, or a person granted a conditional pardon is entitled to a
hearing before a parole panel or a designated agent of the board
under the rules adopted by the [policy] board and within a period
that permits a parole panel, a designee of the board, or the
department to dispose of the charges within the periods established
by Sections 508.282(a) and (b) if the releasee or person:
(1) is accused of a violation of the releasee's parole
or mandatory supervision or the person's conditional pardon, on
information and complaint by a peace officer or parole officer; or
(2) is arrested after an ineligible release.
SECTION 23.19. Subsection (c), Section 508.313, Government
Code, is amended to read as follows:
(c) The department may provide information that is
confidential and privileged under Subsection (a) to:
(1) the governor;
(2) a member of the board or a parole commissioner;
(3) the Criminal Justice Policy Council in performing
duties of the council under Section 413.017; or
(4) an eligible entity requesting information for a
law enforcement, prosecutorial, correctional, clemency, or
treatment purpose.
SECTION 23.20. Section 492.0131, Government Code, is
amended to read as follows:
Sec. 492.0131. PAROLE RULES, POLICIES, PROCEDURES. The
board and the presiding officer of the Board of Pardons and Paroles
[Policy Board] shall jointly review all rules, policies, and
procedures of the department and the Board of Pardons and Paroles
that relate to or affect the operation of the parole process. The
board and the presiding officer of the Board of Pardons and Paroles
[policy board] shall identify areas of inconsistency between the
department and the Board of Pardons and Paroles and shall amend
rules or change policies and procedures as necessary for consistent
operation of the parole process.
SECTION 23.21. Section 551.124, Government Code, is amended
to read as follows:
Sec. 551.124. BOARD OF PARDONS AND PAROLES. At the call of
the presiding officer of the Board of Pardons and Paroles, the board
may hold a hearing on clemency matters by telephone conference
call. Other than the deliberations of the board, the proceedings at
the telephone conference call hearing shall be recorded and made
available to the public in the same manner as if the members of the
board had met as a body to hold the hearing.
SECTION 23.22. Chapter 48, Code of Criminal Procedure, is
amended by adding Article 48.011 to read as follows:
Art. 48.011. MEETINGS: CAPITAL CASE. (a) In a capital
case, the members of the Board of Pardons and Paroles shall perform
the members' duties in clemency matters by meeting as a body or by
participating in a telephone conference call as permitted by
Section 551.124, Government Code.
(b) The Board of Pardons and Paroles shall deliberate
privately, but at the conclusion of deliberations each board member
shall announce publicly the member's individual decision as to
whether to recommend clemency and shall sign the member's name with
the member's written recommendation and reasons for that
recommendation.
(c) The Board of Pardons and Paroles shall adopt rules as
necessary to implement the requirements of this article.
SECTION 23.23. Section 508.0361, Government Code, is
repealed.
SECTION 23.24. (a) The governor shall appoint new members
to the Board of Pardons and Paroles on or before January 1, 2004,
and the terms of members serving on December 31, 2003, expire on the
appointment of the new members. The governor may appoint but is not
required to appoint as new members persons who served on the board
before January 1, 2004.
(b) Of the new members of the Board of Pardons and Paroles,
the governor shall appoint two to serve terms expiring February 1,
2005, two to serve terms expiring February 1, 2007, and three to
serve terms expiring February 1, 2009. On the expiration of the
terms of the initial members of the new board, the term of a member
appointed by the governor is six years.
(c) On September 1, 2003, a rule of the Board of Pardons and
Paroles Policy Board is a rule of the Board of Pardons and Paroles.
SECTION 23.25. (a) The changes in law made by Sections
23.13, 23.21, and 23.22 of this article apply only to a
consideration by the Board of Pardons and Paroles regarding a
clemency matter in a capital case that occurs on or after the
effective date of this article.
(b) The Board of Pardons and Paroles shall adopt the rules
required by Subsection (c), Article 48.011, Code of Criminal
Procedure, as added by this article, not later than October 1, 2003.
ARTICLE 24. TEACHER PAPERWORK AND EDUCATION PROGRAMS AND SERVICES
SECTION 24.01. Section 11.164, Education Code, is amended
to read as follows:
Sec. 11.164. RESTRICTING WRITTEN INFORMATION [REPORTS].
(a) The [On an annual basis, the] board of trustees of each school
district shall limit redundant requests for information and[, after
soliciting recommendations from each campus-level committee and
the district-level committee, consider] the number and length of
written reports that a classroom teacher is [employees of the
district are] required to prepare. A classroom teacher may not be
required to prepare any written information other than:
(1) any report concerning the health, safety, or
welfare of a student;
(2) a report of a student's grade on an assignment or
examination;
(3) a report of a student's academic progress in a
class or course;
(4) a report of a student's grades at the end of each
grade reporting period;
(5) a textbook report;
(6) a unit or weekly lesson plan that outlines, in a
brief and general manner, the information to be presented during
each period at the secondary level or in each subject or topic at
the elementary level;
(7) an attendance report;
(8) any report required for accreditation review;
(9) any information required by a school district that
relates to a complaint, grievance, or actual or potential
litigation and that requires the classroom teacher's involvement;
or
(10) any information specifically required by law,
rule, or regulation.
(b) The board of trustees shall review paperwork
requirements imposed on classroom teachers and shall transfer to
existing noninstructional staff a reporting task that can
reasonably be accomplished by that staff.
(c) This section does not preclude a school district from
collecting essential information, in addition to information
specified under Subsection (a), from a classroom teacher on
agreement between the classroom teacher and the district.
SECTION 24.02. Subchapter C, Chapter 29, Education Code, is
amended by adding Section 29.089 to read as follows:
Sec. 29.089. MENTORING SERVICES PROGRAM. (a) Each school
district may provide a mentoring services program to students at
risk of dropping out of school, as defined by Section 29.081.
(b) A district that provides a mentoring services program
using funds allocated under Section 42.152 must meet standards
adopted by the governor under the mentoring initiative established
by the governor.
(c) The board of trustees of the district shall obtain the
consent of a student's parent or guardian before allowing the
student to participate in the program.
(d) The board of trustees of the district may arrange for
any public or private community-based organization to come to the
district's schools and implement the program.
SECTION 24.03. Section 42.152, Education Code, is amended
by adding Subsection (c-1) to read as follows:
(c-1) Notwithstanding Subsection (c), funds allocated under
this section may be used to fund a district's mentoring services
program under Section 29.089.
SECTION 24.04. (a) Chapter 32, Education Code, is amended
by adding Subchapter D to read as follows:
SUBCHAPTER D. EDUCATION INTERNET PORTAL
Sec. 32.151. DEFINITION. In this subchapter, "portal"
means the education Internet portal required by this subchapter.
Sec. 32.152. EDUCATION INTERNET PORTAL; GENERAL PURPOSES.
(a) The agency, with assistance from the Department of Information
Resources and with participation by the Texas Higher Education
Coordinating Board, interested school districts, and interested
persons in the private sector, shall establish and maintain an
education Internet portal for use by school districts, teachers,
parents, and students.
(b) The portal must serve as a single point of access to
educational resources. In addition to any other purpose specified
by this subchapter or any other educational purpose, the portal may
be used to:
(1) alleviate inequities in access to educational
resources by providing access to on-line courses;
(2) improve student academic performance by providing
access to tutorial materials, instructional materials that have
been shown to improve academic performance, and other interactive
materials, including materials that assess an individual student's
knowledge and prepare the student for the administration of a
standardized assessment instrument, including an assessment
instrument administered under Section 39.023;
(3) provide school districts with access to
administrative software and other electronic tools designed to
promote administrative efficiency and intra-district
communication;
(4) provide secure access to student assessment data;
or
(5) provide links to appropriate educational
resources and experts available through the Internet.
Sec. 32.153. ADMINISTRATION. (a) The agency has
responsibility for general administration and oversight of the
portal and for approving the content of all information made
available through the portal.
(b) The Department of Information Resources shall:
(1) host the portal through the project known as
TexasOnline;
(2) organize the portal in a manner that simplifies
portal use and administration;
(3) provide any necessary technical advice to the
agency, including advice relating to equipment required in
connection with the portal;
(4) provide a method for maintaining the information
made available through the portal; and
(5) cooperate with the agency in linking the agency's
Internet site to the portal.
(c) The Department of Information Resources may assist the
agency with technical advice regarding contracting with vendors for
services in connection with the portal.
(d) The joint advisory committee established under Section
61.077, or any successor to that committee with advisory
responsibility for coordination between secondary and
postsecondary education, shall serve in an advisory capacity to the
agency and the Department of Information Resources in connection
with functions relating to the portal.
Sec. 32.154. ON-LINE COURSES. (a) The agency may
coordinate the identification and development of on-line courses
made available through the portal. A course may not be made
available through the portal unless the course is reviewed by the
agency and approved by the commissioner.
(b) In coordinating, developing, and reviewing courses to
be made available through the portal, the agency shall give
priority to any course that is not readily available to students
throughout the state and for which there is a critical need.
(c) A course made available through the portal must be
aligned with state curriculum requirements under Section 28.002 and
the essential knowledge and skills identified under that section.
(d) The agency may develop quality assurance criteria to be
used by the agency in developing and reviewing courses made
available through the portal. The criteria must include components
relating to:
(1) course content;
(2) instructor qualifications;
(3) validity of assessment procedures;
(4) security features; and
(5) degree of interactivity.
Sec. 32.155. ON-LINE COURSE SCHOLARSHIPS. (a) Using funds
available for that purpose, the agency may award a scholarship for
the costs of an on-line course to a student who demonstrates that:
(1) the student has inequitable access to the course;
and
(2) access to the course would improve the likelihood
of the student's academic success.
(b) The commissioner may adopt criteria to be used in
awarding scholarships under this section. The criteria must limit
the availability of scholarships to students who:
(1) are enrolled in a public school on a full-time
basis; or
(2) were enrolled in a public school on a full-time
basis for at least three months during the preceding school year and
indicate an intent to enroll in a public school on a full-time basis
for at least three months during the school year for which the
scholarship is offered.
Sec. 32.156. ON-LINE TEXTBOOKS. (a) The agency may
develop and adopt strategies for making textbooks available through
the portal or through other means in an electronic format as an
alternative or supplement to traditional textbooks.
(b) In developing and adopting strategies under this
section, the agency shall seek to achieve a system under which a
student may, in addition to a traditional textbook, be provided
with secure Internet access to each textbook used by the student.
Sec. 32.157. SCHOOL DISTRICT ADMINISTRATIVE SOFTWARE AND
ELECTRONIC TOOLS. (a) The agency may:
(1) identify effective Internet-based administrative
software and other electronic tools that may be used by school
districts to improve district administrative functions; and
(2) pursue efforts to make that software and other
electronic tools available through the portal for use by school
districts on a voluntary basis.
(b) The agency may assist school districts in identifying
sources of funding that may be used by districts to pay any costs
associated with using administrative software and other electronic
tools available through the portal. To the extent that funds are
available to the agency, the agency may provide administrative
software and other electronic tools through the portal at no cost to
specific school districts selected by the agency based on
demonstrated need.
Sec. 32.158. STUDENT ASSESSMENT DATA. (a) The agency may
establish a secure, interoperable system to be implemented through
the portal under which school districts can readily access student
assessment data for use in developing strategies for improving
student performance.
(b) In establishing the system required by this section, the
agency shall seek to further the goal of providing school districts
with access to student performance information at the classroom
level.
Sec. 32.159. FEES. (a) The agency may charge school
districts, teachers, parents, students, and other persons a
reasonable fee for services or information provided through the
portal.
(b) The total amount of fees charged under this section may
not exceed the amount necessary to pay costs associated with the
development, administration, and maintenance of the portal.
(c) An individual fee charged to a person under this section
for a service or information may not exceed the amount that the
person would be required to pay to obtain the service or information
from a commercial source or through another means of access other
than the portal.
(d) To the extent possible, the agency shall make services
and information available through the portal at no cost to school
districts, teachers, parents, students, and other persons.
Sec. 32.160. VENDOR PARTICIPATION. (a) The agency may
seek proposals from private vendors for providing on-line courses
or other materials or services through the portal in accordance
with this subchapter. A vendor may not provide an on-line course or
other material or service through the portal without approval by
the agency.
(b) The agency may require a vendor, as a condition of
approval of the vendor's proposal, to:
(1) pay:
(A) all or part of the costs of providing the
on-line course or other material or service;
(B) an access fee to be used by the agency in
paying the general costs of maintaining the portal; or
(C) both the amounts described by Paragraphs (A)
and (B); and
(2) if applicable, provide on-line course
scholarships to students in accordance with criteria adopted by the
commissioner.
Sec. 32.161. FUNDING. (a) The agency may not use general
revenue funds to pay the costs of developing, administering, and
maintaining the portal. The agency may use amounts available to the
agency from:
(1) gifts, grants, or donations;
(2) vendor payments described by Section 32.160(b); or
(3) arrangements with nonprofit or private entities
approved by the agency.
(b) To the extent possible considering other statutory
requirements, the commissioner and agency shall encourage the use
of textbook funds and technology allotment funds under Section
31.021(b)(2) in a manner that facilitates the development and use
of the portal.
Sec. 32.162. STATEWIDE LICENSING AND CONTRACTING. As
appropriate to promote the availability through the portal of
services and information specified by this subchapter at no cost to
users or at a reasonable cost, the agency may negotiate statewide
licenses or discounts with software vendors and other persons
offering applications that are suitable for use through the portal.
Sec. 32.163. OUTREACH AND TRAINING. (a) The agency may
conduct outreach activities to provide information regarding the
portal to school districts, teachers, parents, and students.
(b) The agency may provide training to school districts and
teachers in use of the portal. Training in use of the portal may be
made available to parents and students by the agency or school
districts, as determined by commissioner rule.
(b) Not later than January 1, 2005, the Texas Education
Agency shall submit a report to the legislature that contains
recommendations for maximizing the benefits of providing access to
textbooks or other educational materials through the Internet using
the education Internet portal required by Subchapter D, Chapter 32,
Education Code, as added by this section.
(c) The Texas Education Agency and the Department of
Information Resources shall coordinate agency and department
activities in implementing Subchapter D, Chapter 32, Education
Code, as added by this section, with relevant ongoing activities
relating to modification of the Public Education Information
Management System (PEIMS) and other systems necessary to conform
state educational reporting processes with educational reporting
requirements imposed by federal law.
SECTION 24.05. (a) Chapter 38, Education Code, is amended
by adding Subchapter C to read as follows:
SUBCHAPTER C. CARE OF STUDENTS WITH DIABETES
Sec. 38.101. DEFINITIONS. In this subchapter:
(1) "Individual health care plan" means the document
required by Section 38.102.
(2) "School" means an elementary or secondary school
of an independent school district.
(3) "School employee" means a person employed by:
(A) a school;
(B) a local health department that assists a
school under this subchapter; or
(C) another entity with which a school has
contracted to perform its duties under this subchapter.
(4) "Trained diabetes care assistant" means a school
employee who has completed the training required by Section 38.103.
Sec. 38.102. INDIVIDUAL HEALTH CARE PLAN. (a) An
individual health care plan must be developed for each student with
diabetes who will seek care for the student's diabetes while at
school. The plan shall be developed by:
(1) the student's parent or guardian; and
(2) the student's personal health care team, which
should include the student's physician.
(b) An individual health care plan must:
(1) identify the health care services the student may
receive at school; and
(2) be signed by the student's parent or guardian and
the student's personal health care team.
(c) The parent or guardian of a student with diabetes who
seeks care for the student's diabetes while the student is at school
shall submit to the school a copy of the student's individual health
care plan. The plan must be submitted to and reviewed by the
school:
(1) before the beginning of the school year;
(2) on enrollment of the student, if the student
enrolls in the school after the beginning of the school year; or
(3) as soon as practicable following a diagnosis of
diabetes for the student.
Sec. 38.103. TRAINED DIABETES CARE ASSISTANT. (a) The
Texas Diabetes Council shall develop, with the assistance of the
following entities, guidelines for the training of school employees
in the care of students with diabetes:
(1) the School Health Program of the Texas Department
of Health;
(2) the American Diabetes Association;
(3) the Juvenile Diabetes Research Foundation
International;
(4) the American Association of Diabetes Educators;
(5) the agency; and
(6) the Texas School Nurses Organization.
(b) A school employee is not required to be a health care
professional to be designated as a trained diabetes care assistant.
The board of trustees of a school district may not require a school
employee to serve as a trained diabetes care assistant.
(c) If a school nurse is assigned to a campus:
(1) the school nurse may be recognized as a trained
diabetes care assistant at that campus; or
(2) the school nurse may supervise one or more other
school employees acting as trained diabetes care assistants.
(d) A school nurse may be recognized as a trained diabetes
care assistant without completing the training under this section
if:
(1) the nurse is a registered nurse; and
(2) the nurse has received formal advanced training in
diabetes care as part of the nurse's continuing education.
(e) If a school nurse is not assigned to a campus:
(1) each trained diabetes care assistant must have
access, for emergency or informational assistance, to an individual
who has expertise in the care of persons with diabetes, such as a
physician, registered nurse, certified dietitian educator, or
licensed dietitian; or
(2) the school must have access to a licensed health
care professional who is a member of the student's personal health
care team.
(f) Training under this section must be provided annually by
a health care professional with expertise in the care of persons
with diabetes. The training must be provided before the beginning
of the school year or as soon as practicable following:
(1) the enrollment of a student with diabetes at a
campus that previously had no students with diabetes; or
(2) a diagnosis of diabetes for a student at a campus
that previously had no students with diabetes.
(g) The training must include instruction in:
(1) recognizing signs of hypoglycemia and
hyperglycemia;
(2) steps to take if the blood glucose levels of a
student with diabetes are outside the target ranges indicated by
the student's individual health care plan;
(3) how to follow a physician's instructions
concerning diabetes medication dosages, administration, and
frequency of administration;
(4) performing finger-sticks to check blood glucose
levels, checking ketone levels, and recording the results of those
checks;
(5) administering glucagon and insulin and recording
the results of the administration; and
(6) the recommended schedules and food intake for
meals and snacks for a student with diabetes, the effect of physical
activity on blood glucose levels, and the steps to take if a
student's schedule is disrupted.
(h) The training must be provided without charge to the
school employee receiving the training.
(i) The board of trustees of a school district shall ensure
that there is at least one trained diabetes care assistant at each
campus attended by one or more students with diabetes.
Sec. 38.104. INFORMATION FOR CERTAIN EMPLOYEES. A school
district shall provide to each school employee who is responsible
for transporting a student with diabetes or for supervising a
student with diabetes during an off-campus activity a one-page
information sheet that:
(1) identifies the student with diabetes;
(2) identifies potential emergencies involving the
student's diabetes and appropriate responses to such emergencies;
and
(3) provides telephone numbers of persons the employee
may contact in an emergency involving the student's diabetes.
Sec. 38.105. REQUIRED CARE OF STUDENTS WITH DIABETES.
(a) At the written request of a parent or guardian of a student
with diabetes and in compliance with the student's individual
health care plan, a trained diabetes care assistant shall:
(1) respond to the student's blood glucose level if it
is outside the target range specified in the student's individual
health care plan; and
(2) assist the student in following instructions
regarding meals, snacks, and physical activity.
(b) A school shall ensure to the greatest extent practicable
that the trained diabetes care assistant is present and available
to provide the required care to a student with diabetes during the
regular school day.
(c) A school district may not restrict the assignment of a
student with diabetes to a particular campus on the basis that the
campus does not have the required trained diabetes care assistants.
(d) A trained diabetes care assistant who performs an
activity described by Subsection (a) in compliance with the
individual health care plan of a student with diabetes:
(1) is not considered to be engaging in the practice
of:
(A) professional nursing under Chapter 301,
Occupations Code, or other state law; or
(B) vocational nursing under Chapter 302,
Occupations Code, or other state law; and
(2) is exempt from any applicable state law or rule
that restricts the activities that may be performed by a person who
is not a health care professional.
Sec. 38.106. INDEPENDENT MONITORING AND TREATMENT. On the
written request signed by a parent or guardian of a student with
diabetes, and if permitted by the student's individual health care
plan, a school shall permit the student to:
(1) perform blood glucose level checks;
(2) administer insulin through the insulin delivery
system the student uses;
(3) treat hypoglycemia and hyperglycemia;
(4) possess on the student's person at any time any
supplies or equipment necessary to monitor and care for the
student's diabetes; and
(5) otherwise attend to the management and care of the
student's diabetes in the classroom, in any area of the school or
school grounds, or at any school-related activity.
(b) Subchapter C, Chapter 38, Education Code, as added by
this section, applies beginning with the 2004-2005 school year.
SECTION 24.06. (a) Section 11.164, Education Code, as
amended by this article, applies beginning with the 2003-2004
school year.
(b) Section 24.01 of this Act takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, Section 24.01 of this Act takes effect September
1, 2003.
ARTICLE 25. TEXAS B-ON-TIME LOAN PROGRAM
SECTION 25.01. Chapter 56, Education Code, is amended by
adding Subchapter Q to read as follows:
SUBCHAPTER Q. TEXAS B-ON-TIME LOAN PROGRAM
Sec. 56.451. DEFINITIONS. In this subchapter:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "Eligible institution" means:
(A) an institution of higher education; or
(B) a private or independent institution of
higher education.
(3) "General academic teaching institution," "private
or independent institution of higher education," "public junior
college," and "public technical institute" have the meanings
assigned by Section 61.003.
Sec. 56.452. PROGRAM NAME; PURPOSE. (a) The student loan
program authorized by this subchapter is known as the Texas
B-On-time loan program, and an individual loan awarded under this
subchapter is known as a Texas B-On-time loan.
(b) The purpose of this subchapter is to provide no-interest
loans to eligible students to enable those students to attend all
public and private or independent institutions of higher education
in this state.
Sec. 56.453. ADMINISTRATION OF PROGRAM; RULES. (a) The
coordinating board shall:
(1) administer the Texas B-On-time loan program;
(2) determine the repayment and other terms of a Texas
B-On-time loan; and
(3) in consultation with the student financial aid
officers of eligible institutions, adopt any rules necessary to
implement the program or this subchapter.
(b) The coordinating board may charge and collect a loan
origination fee from a person who receives a Texas B-On-time loan to
be used by the board to pay for the operating expenses for making
loans under this subchapter.
(c) The total amount of Texas B-On-time loans awarded may
not exceed the amount available in the Texas B-On-time student loan
account under Section 56.463.
Sec. 56.454. PERSONS NOT ELIGIBLE. (a) A person is not
eligible to receive a Texas B-On-time loan if the person has been
granted a baccalaureate degree.
(b) A person may not receive a Texas B-On-time loan for more
than 150 semester credit hours or the equivalent.
Sec. 56.455. INITIAL ELIGIBILITY FOR LOAN. To be eligible
initially for a Texas B-On-time loan, a person must:
(1) be a resident of this state for purposes of
Subchapter B, Chapter 54;
(2) meet one of the following academic requirements:
(A) be a graduate of a public or accredited
private high school in this state who graduated not earlier than the
2002-2003 school year under the recommended or advanced high school
program established under Section 28.025(a); or
(B) have received an associate degree from an
eligible institution not earlier than May 1, 2005;
(3) be enrolled for a full course load for an
undergraduate student, as determined by the coordinating board, in
an undergraduate degree or certificate program at an eligible
institution;
(4) be eligible for federal financial aid, except that
a person is not required to meet any financial need requirement
applicable to a particular federal financial aid program; and
(5) comply with any additional nonacademic
requirement adopted by the coordinating board under this
subchapter.
Sec. 56.456. CONTINUING ELIGIBILITY AND ACADEMIC
PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a
Texas B-On-time loan, a person may continue to receive a Texas
B-On-time loan for each semester or term in which the person is
enrolled at an eligible institution only if the person:
(1) is enrolled for a full course load for an
undergraduate student, as determined by the coordinating board, in
an undergraduate degree or certificate program at an eligible
institution;
(2) is eligible for federal financial aid, except that
a person is not required to meet any financial need requirement
applicable to a particular federal financial aid program;
(3) makes satisfactory academic progress toward a
degree or certificate as determined by the institution at which the
person is enrolled, if the person is enrolled in the person's first
academic year at the institution;
(4) completed at least 75 percent of the semester
credit hours attempted by the person in the most recent academic
year and has a cumulative grade point average of at least 2.5 on a
four-point scale or the equivalent on all coursework previously
attempted at institutions of higher education, if the person is
enrolled in any academic year after the person's first academic
year; and
(5) complies with any additional nonacademic
requirement adopted by the coordinating board.
(b) If a person fails to meet any of the requirements of
Subsection (a) after the completion of any semester or term, the
person may not receive a Texas B-On-time loan for the next semester
or term in which the person enrolls. A person may become eligible
to receive a Texas B-On-time loan in a subsequent semester or term
if the person:
(1) completes a semester or term during which the
person is not eligible for a Texas B-On-time loan; and
(2) meets all of the requirements of Subsection (a).
(c) A person who is eligible to receive a Texas B-On-time
loan continues to remain eligible to receive the Texas B-On-time
loan if the person enrolls in or transfers to another eligible
institution.
(d) A person who qualifies for and subsequently receives a
Texas B-On-time loan, who receives an undergraduate certificate or
associate degree, and who, not later than the 12th month after the
month the person receives the certificate or degree, enrolls in a
program leading to a higher-level undergraduate degree continues to
be eligible for a Texas B-On-time loan to the extent other
eligibility requirements are met.
Sec. 56.457. WAIVER OF COURSE LOAD REQUIREMENT. (a) The
coordinating board shall adopt rules to allow a person who is
otherwise eligible to receive a Texas B-On-time loan, in the event
of a hardship or other good cause, to receive a Texas B-On-time loan
while enrolled in a number of semester credit hours that is less
than the number of semester credit hours required under Section
56.455 or 56.456, as applicable.
(b) The coordinating board may not allow a person to receive
a Texas B-On-time loan while enrolled in fewer than six semester
credit hours.
Sec. 56.458. LOAN USE. A person receiving a Texas B-On-time
loan may use the money to pay for any usual and customary costs of
attendance at an eligible institution incurred by the student,
including tuition, fees, books, and room and board.
Sec. 56.459. LOAN AMOUNT. (a) The amount of a Texas
B-On-time loan for a semester or term for a student enrolled
full-time at an eligible institution other than an institution
covered by Subsection (b), (c), or (d) is an amount determined by
the coordinating board as the average statewide amount of tuition
and required fees that a resident student enrolled full-time in an
undergraduate degree program would be charged for that semester or
term at general academic teaching institutions.
(b) The amount of a Texas B-On-time loan for a student
enrolled full-time at a private or independent institution of
higher education is an amount determined by the coordinating board
as the average statewide amount of tuition and required fees that a
resident student enrolled full-time in an undergraduate degree
program would be charged for that semester or term at general
academic teaching institutions.
(c) The amount of a Texas B-On-time loan for a student
enrolled full-time at a public technical institute is the amount
determined by the coordinating board as the average statewide
amount of tuition and required fees that a resident student
enrolled full-time in an associate degree or certificate program
would be charged for that semester or term at public technical
institutes.
(d) The amount of a Texas B-On-time loan for a student
enrolled full-time at a public junior college is the amount
determined by the coordinating board as the average statewide
amount of tuition and required fees that a student who is a resident
of the junior college district and is enrolled full-time in an
associate degree or certificate program would be charged for that
semester or term at public junior colleges.
(e) Not later than January 31 of each year, the coordinating
board shall publish the amounts of each loan established by the
board for each type of institution for the academic year beginning
the next fall semester.
(f) If in any academic year the amount of money in the Texas
B-On-time student loan account is insufficient to provide the loans
to all eligible persons in amounts specified by this section, the
coordinating board shall determine the amount of available money
and shall allocate that amount to eligible institutions in
proportion to the number of full-time equivalent undergraduate
students enrolled at each institution. Each institution shall use
the money allocated to award Texas B-On-time loans to eligible
students enrolled at the institution selected according to
financial need.
Sec. 56.460. NOTIFICATION OF PROGRAM; RESPONSIBILITIES OF
SCHOOL DISTRICTS. (a) The coordinating board shall distribute to
each eligible institution and to each school district a copy of the
rules adopted under this subchapter.
(b) Each school district shall notify its middle school
students, junior high school students, and high school students,
those students' teachers and counselors, and those students'
parents or guardians of the Texas B-On-time loan program and the
eligibility requirements of the program.
Sec. 56.461. LOAN PAYMENT DEFERRED. The repayment of a
Texas B-On-time loan received by a student under this subchapter is
deferred as long as the student remains continuously enrolled in an
undergraduate degree or certificate program at an eligible
institution.
Sec. 56.462. LOAN FORGIVENESS. A student who receives a
Texas B-On-time loan shall be forgiven the amount of the student's
loan if the student is awarded an undergraduate certificate or
degree at an eligible institution with a cumulative grade point
average of at least 3.0 on a four-point scale or the equivalent:
(1) within:
(A) four calendar years after the date the
student initially enrolled in the institution or another eligible
institution if:
(i) the institution is a four-year
institution; and
(ii) the student is awarded a degree other
than a degree in engineering, architecture, or any other program
determined by the coordinating board to require more than four
years to complete;
(B) five calendar years after the date the
student initially enrolled in the institution or another eligible
institution if:
(i) the institution is a four-year
institution; and
(ii) the student is awarded a degree in
engineering, architecture, or any other program determined by the
coordinating board to require more than four years to complete; or
(C) two years after the date the student
initially enrolled in the institution or another eligible
institution if the institution is a public junior college or public
technical institute; or
(2) with a total number of semester credit hours,
including transfer credit hours and hours earned exclusively by
examination, that is not more than six hours more than the minimum
number of semester credit hours required to complete the
certificate or degree.
Sec. 56.463. TEXAS B-ON-TIME STUDENT LOAN ACCOUNT.
(a) The Texas B-On-time student loan account is an account in the
general revenue fund. The account consists of gifts and grants and
legislative appropriations received under Section 56.464, tuition
set aside under Section 56.465, and other money required by law to
be deposited in the account.
(b) Money in the Texas B-On-time student loan account may be
used only as provided by this subchapter.
Sec. 56.464. FUNDING. (a) The coordinating board may
solicit and accept gifts and grants from any public or private
source for the purposes of this subchapter.
(b) The coordinating board may issue and sell general
obligation bonds under Subchapter F, Chapter 52, for the purposes
of this subchapter.
(c) The legislature may appropriate money for the purposes
of this subchapter.
Sec. 56.465. TUITION SET ASIDE FOR PROGRAM. (a) The
governing board of each institution of higher education shall cause
to be set aside five percent of the amount of the tuition charged to
a student at the institution under Section 54.0513 that is in excess
of the amount that would have been charged to the student under that
section for the same semester or term in the 2002-2003 academic
year.
(b) The amount of tuition set aside under Subsection (a)
shall be deposited to the credit of the Texas B-On-time student loan
account established under Section 56.463.
SECTION 25.02. Subsection (d), Section 52.82, Education
Code, is amended to read as follows:
(d) The total amount of bonds issued by the board in a state
fiscal year may not exceed $125 [$100] million.
SECTION 25.03. Section 52.89, Education Code, is amended by
amending Subsection (c) and adding Subsection (c-1) to read as
follows:
(c) The board shall deposit to the credit of the fund any
[the] proceeds from the sale of bonds [in the fund], excluding:
(1) any accrued interest on the bonds which shall be
deposited in the board interest and sinking fund relating to the
bonds; and
(2) proceeds from the sale of bonds issued by the board
under Section 56.464(b) to provide Texas B-On-time student loans.
(c-1) Notwithstanding Subsection (c), proceeds from the
sale of bonds issued by the board under Section 56.464(b) to provide
Texas B-On-time student loans may be deposited to the credit of the
fund by resolution of the board.
SECTION 25.04. Subchapter F, Chapter 52, Education Code, is
amended by amending Section 52.90 and adding Section 52.91 to read
as follows:
Sec. 52.90. LOANS FROM FUND. (a) The board:
(1) shall make a loan from the fund to a student who
qualifies for a loan under Subchapter C; and
(2) may make a loan from the fund to a student who
qualifies for a Texas B-On-time student loan under Subchapter Q,
Chapter 56 [of this chapter].
(b) Loans from the fund are governed by Subchapter C of this
chapter or Subchapter Q, Chapter 56, as appropriate, as if made
under that subchapter, except to the extent of conflict with this
subchapter.
(c) The board may charge and collect a loan origination fee
from a person [student] who receives a loan from the fund. The
board may use the fee to pay operating expenses for making loans
under this section.
Sec. 52.91. BONDS FOR TEXAS B-ON-TIME STUDENT LOAN PROGRAM.
(a) The board shall deposit to the credit of the Texas B-On-time
student loan account established under Section 56.463 any proceeds
from the sale of bonds issued by the board to fund Texas B-On-time
student loans under Section 56.464(b), other than:
(1) accrued interest on the bonds, which shall be
deposited to the credit of the interest and sinking fund related to
the bonds; and
(2) any proceeds from the sale of the bonds that the
board by resolution deposits to the student loan auxiliary fund
under Section 52.89(c-1).
(b) The board by resolution may establish as provided by
Section 52.03 one or more interest and sinking funds to be used for
any purpose relating to the Texas B-On-time student loan program
established under Subchapter Q, Chapter 56.
(c) The board shall repay bonds issued by the board to fund
the Texas B-On-time student loan program using legislative
appropriations and money collected by the board as repayment for
Texas B-On-time student loans awarded by the board. The board may
not use money collected by the board as repayment for student loans
awarded by the board under Subchapter C to repay bonds issued by the
board for the Texas B-On-time student loan program under Section
56.464(b).
SECTION 25.05. Section 1372.037, Government Code, is
amended to read as follows:
Sec. 1372.037. LIMITATIONS ON GRANTING OF RESERVATIONS FOR
INDIVIDUAL PROJECTS. Before September 1, for any one project, the
board may not grant a reservation for that year that is greater
than:
(1) $25 million, if the issuer is an issuer of
qualified mortgage bonds, other than the Texas Department of
Housing and Community Affairs;
(2) $50 million, if the issuer is an issuer of a
state-voted issue, other than the Texas Higher Education
Coordinating Board, or $125 [$75] million, if the issuer is the
Texas Higher Education Coordinating Board;
(3) the amount to which the Internal Revenue Code
limits issuers of qualified small issue bonds and enterprise zone
facility bonds, if the issuer is an issuer of those bonds;
(4) the lesser of $15 million or 15 percent of the
amount set aside for reservation by issuers of qualified
residential rental project bonds, if the issuer is an issuer of
those bonds;
(5) $35 million, if the issuer is an issuer authorized
by Section 53.47, Education Code, to issue qualified student loan
bonds; or
(6) $25 million, if the issuer is any other issuer of
bonds that require an allocation.
SECTION 25.06. (a) The Texas Higher Education
Coordinating Board and the eligible institutions shall award loans
under the Texas B-On-time student loan program established under
Subchapter Q, Chapter 56, Education Code, as added by this article,
beginning with the 2003 fall semester.
(b) The Texas Higher Education Coordinating Board shall
adopt the initial rules for awarding loans under the Texas
B-On-time student loan program established under Subchapter Q,
Chapter 56, Education Code, as added by this article, as soon as
practicable after the effective date of this article. The
coordinating board may adopt those initial rules in the manner
provided by law for emergency rules.
SECTION 25.07. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect September 1, 2003.
ARTICLE 26. THE BUSINESS OF INSURANCE; PAST DISCRIMINATION
SECTION 26.01. Section 5, Article 21.21-6, Insurance Code,
as added by Chapter 415, Acts of the 74th Legislature, Regular
Session, 1995, is amended to read as follows:
Sec. 5. SANCTIONS. (a) Any legal entity engaged in the
business of insurance in this state found to be in violation of or
failing to comply with this article is subject to the sanctions
authorized by Chapter 82 [in Article 1.10] of this code or[,
including] administrative penalties authorized by Chapter 84
[under Article 1.10E] of this code. The commissioner may also
utilize the cease and desist procedures authorized by Chapter 83
[Article 1.10A] of this code.
(b) It is not a defense to an action of the commissioner
under Subsection (a) of this section that the contract giving rise
to the alleged violation was entered into before the effective date
of this article.
SECTION 26.02. Subchapter B, Chapter 21, Insurance Code, is
amended by adding Article 21.21-6A to read as follows:
Art. 21.21-6A. CRIMINAL PENALTY. (a) In this article,
"person" means a legal entity engaged in the business of life
insurance described in Subdivisions (a), (b), (e), (f), and (j),
Section 2, Article 21.21-6 of this code, as added by Chapter 415,
Acts of the 74th Legislature, Regular Session, 1995, or an officer
or director of one of those entities.
(b) A person commits an offense if the person with criminal
negligence:
(1) offers insurance coverage at a premium based on a
rate that is, because of race, color, religion, ethnicity, or
national origin, different from another premium rate offered or
used by the person for the same coverage, other than for
classifications applicable alike to persons of every race, color,
religion, ethnicity, or national origin; or
(2) collects an insurance premium based on a rate that
is, because of race, color, religion, ethnicity, or national
origin, different from another premium rate offered or used by the
person for the same coverage, other than for classifications
applicable alike to persons of every race, color, religion,
ethnicity, or national origin.
(c) An offense under this article is a state jail felony.
SECTION 26.03. Subsection (c), Section 3, Article 21.21-8,
Insurance Code, is amended to read as follows:
(c) All actions under this article must be commenced on or
before the second anniversary of [within 12 months after] the date
on which the plaintiff was denied insurance or the unfair act
occurred or the date the plaintiff, in the exercise of reasonable
diligence, should have discovered the occurrence of the unfair act.
SECTION 26.04. Section 1, Article 21.74, Insurance Code, is
amended by amending Subdivisions (1) and (2) and adding Subdivision
(4) to read as follows:
(1) "Holocaust victim" means a person who was killed
or injured, or who lost real or personal property or financial
assets, as the result of discriminatory laws, policies, or actions
directed against any discrete group of which the person was a
member, during the period of 1920 to 1945, inclusive, in Germany,
areas occupied by Germany, [or] countries allied with Germany, or
countries that were sympathizers with Germany.
(2) "Insurer" means an insurance company or other
entity engaged in the business of insurance or reinsurance in this
state. The term includes:
(A) a capital stock company, a mutual company, or
a Lloyd's plan; and
(B) any parent, subsidiary, reinsurer, successor
in interest, managing general agent, or affiliated company, at
least 50 percent of the stock of which is in common ownership with
an insurer engaged in the business of insurance in this state.
(4) "Proceeds" means the face value or other payout
value of insurance policies and annuities plus reasonable interest
to date of payment without diminution for wartime or immediate
postwar currency devaluation.
SECTION 26.05. Article 21.74, Insurance Code, is amended by
adding Sections 2A and 2B to read as follows:
Sec. 2A. FILINGS AND CERTIFICATES OF INSURANCE. (a) This
section applies to each insurer engaging in business in the state
that, directly or through a related company, sold to persons in
Europe insurance policies described by Section 1 of this article or
dowry or educational insurance policies that were in effect during
the period of 1920 to 1945, whether the sale occurred before or
after the insurer and the related company became related.
(b) Each insurer shall file or cause to be filed with the
commissioner the following information:
(1) the number of insurance policies described by
Subsection (a) of this section sold by the insurer or a related
company;
(2) the holder, beneficiary, and current status of the
policies; and
(3) the city of origin, domicile, or address for each
policyholder listed in the policies.
(c) Each insurer shall certify:
(1) that the proceeds of the policies described by
Subsection (a) of this section have been paid to the designated
beneficiaries or their heirs in circumstances in which that person
or those persons, after diligent search, could be located and
identified;
(2) that the proceeds of the policies, in
circumstances in which the beneficiaries or heirs could not, after
diligent search, be located or identified, have been distributed to
Holocaust survivors or to qualified charitable nonprofit
organizations for the purpose of assisting Holocaust survivors;
(3) that a court of law has certified in a legal
proceeding resolving the rights of unpaid policyholders and their
heirs and beneficiaries a plan for the distribution of the
proceeds; or
(4) that the proceeds have not been distributed and
the amount of those proceeds.
(d) The commissioner by rule shall require that insurers
update the information submitted to the commissioner under this
section at reasonable intervals.
Sec. 2B. ESTABLISHMENT AND MAINTENANCE OF REGISTRY; PUBLIC
ACCESS. (a) The commissioner shall establish and maintain within
the department a central registry containing records and
information relating to insurance policies described by Section
2A(a) of this article of Holocaust victims, living and deceased.
The registry shall be known as the Holocaust Era Insurance
Registry.
(b) The commissioner by rule shall establish appropriate
mechanisms to ensure public access to the registry.
(c) Information contained in the registry:
(1) is public information;
(2) is not subject to any exceptions to disclosure
under Chapter 552, Government Code; and
(3) cannot be withheld from disclosure under any other
law.
SECTION 26.06. (a) Article 21.21-6A, Insurance Code, as
added by this article, applies only to an offense committed on or
after the effective date of this article. An offense committed
before the effective date of this article is governed by the law in
effect immediately before the effective date of this article, and
that law is continued in effect for that purpose. For the purposes
of this subsection, an offense is committed before the effective
date of this article if any element of the offense occurs before
that date.
(b) Subsection (c), Section 3, Article 21.21-8, Insurance
Code, as amended by this article, applies to a cause of action for
which the limitations period established under that subsection
before its amendment by this article has not expired on the
effective date of this article.
SECTION 26.07. Not later than the 180th day after the
effective date of this article, an insurer subject to Article
21.74, Insurance Code, as amended by this article, shall file the
information and certification required by Section 2A, Article
21.74, Insurance Code.
ARTICLE 27. OIL SPILL PREVENTION AND RESPONSE
SECTION 27.01. Subsection (c), Section 40.002, Natural
Resources Code, is amended to read as follows:
(c) The legislature intends by this chapter to exercise the
police power of the state to protect its coastal waters and adjacent
shorelines by conferring upon the Commissioner of the General Land
Office the power to:
(1) prevent spills and discharges of oil by requiring
and monitoring preventive measures and response planning;
(2) provide for prompt response to abate and contain
spills and discharges of oil and ensure the removal and cleanup of
pollution from such spills and discharges;
[(3) provide for development of a state coastal
discharge contingency plan through planning and coordination with
the Texas Natural Resource Conservation Commission to protect
coastal waters from all types of spills and discharges;] and
(3) [(4)] administer a fund to provide for funding
these activities and to guarantee the prompt payment of certain
reasonable claims resulting from spills and discharges of oil.
SECTION 27.02. Subdivisions (13), (17), and (22), Section
40.003, Natural Resources Code, are amended to read as follows:
(13) "Hazardous substance" means any substance,
except oil, designated as hazardous by the Environmental Protection
Agency pursuant to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et
seq.) and designated by the Texas [Natural Resource Conservation]
Commission on Environmental Quality.
(17) "Oil" means oil of any kind or in any form,
including but not limited to crude oil, petroleum, fuel oil,
sludge, oil refuse, and oil mixed with wastes other than dredged
spoil, but does not include petroleum, including crude oil or any
fraction thereof, which is specifically listed or designated as a
hazardous substance under Subparagraphs (A) through (F) of Section
101(14) of the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.) and which is
subject to the provisions of that Act, and which is so designated by
the Texas [Natural Resource Conservation] Commission on
Environmental Quality.
(22) "Response costs" means:
(A) with respect to an actual or threatened
discharge of oil, all costs incurred in an attempt to prevent,
abate, contain, and remove pollution from the discharge, including
costs of removing vessels or structures under this chapter, and
costs of any reasonable measures to prevent or limit damage to the
public health, safety, or welfare, public or private property, or
natural resources; or
(B) with respect to an actual or threatened
discharge of a hazardous substance, only costs incurred to
supplement the response operations of the Texas [Natural Resource
Conservation] Commission on Environmental Quality.
SECTION 27.03. Section 40.005, Natural Resources Code, is
amended to read as follows:
Sec. 40.005. ADMINISTRATION OF HAZARDOUS SUBSTANCE SPILL
RESPONSE AND CLEANUP. The General Land Office, under the direction
and control of the commissioner, is the state's lead agency for
initiating response to all actual or threatened unauthorized
discharges of oil. In the event of an unauthorized discharge of a
hazardous substance, nothing in this chapter shall preclude the
Texas [Natural Resource Conservation] Commission on Environmental
Quality from at the earliest time practicable assuming response and
cleanup duties pursuant to Subchapter G, Chapter 26, Water Code[,
and the state coastal discharge contingency plan].
SECTION 27.04. Section 40.052, Natural Resources Code, is
amended to read as follows:
Sec. 40.052. HAZARDOUS SUBSTANCES DISCHARGES. If the
unauthorized discharge involves predominantly a hazardous
substance, the Texas [Natural Resource Conservation] Commission on
Environmental Quality shall carry out responsibility for
abatement, containment, removal, and cleanup of the hazardous
substances discharged, pursuant to Subchapter G, Chapter 26, Water
Code[, and to the state coastal discharge contingency plan].
SECTION 27.05. Subsection (c), Section 40.101, Natural
Resources Code, is amended to read as follows:
(c) In order to prevent duplication of effort among state
agencies, the commissioner shall utilize the expertise of the Texas
[Natural Resource Conservation] Commission on Environmental
Quality on technical and scientific actions, including but not
limited to:
(1) taking samples in the spill area;
(2) monitoring meteorological conditions that may
affect spill response operations; and
(3) regulating disposal of spilled material.
SECTION 27.06. Subsection (b), Section 40.103, Natural
Resources Code, is amended to read as follows:
(b) Any person or discharge cleanup organization that
renders assistance in abating, containing, or removing pollution
from any unauthorized discharge of oil may receive compensation
from the fund for response costs, provided the commissioner
approves compensation prior to the assistance being rendered.
[Prior approval for compensation may be provided for in the state
coastal discharge contingency plan.] The commissioner, on petition
and for good cause shown, may waive the prior approval
prerequisite.
SECTION 27.07. Section 40.104, Natural Resources Code, is
amended to read as follows:
Sec. 40.104. QUALIFIED IMMUNITY FOR RESPONSE ACTIONS.
(a) No action taken by any person or discharge cleanup
organization to abate, contain, or remove pollution from an
unauthorized discharge of oil, whether such action is taken
voluntarily, or pursuant to the national contingency plan [or state
coastal discharge contingency plan], or pursuant to a discharge
response plan required under this chapter, or pursuant to the
request of an authorized federal or state official, or pursuant to
the request of the responsible person, shall be construed as an
admission of responsibility or liability for the discharge.
(b) No person or discharge cleanup organization that
voluntarily, or pursuant to the national contingency plan [or the
state coastal discharge contingency plan], or pursuant to any
discharge response plan required under this chapter, or pursuant to
the request of an authorized federal or state official, or pursuant
to the request of the responsible person, renders assistance or
advice in abating, containing, or removing pollution from an
unauthorized discharge of oil is liable for response costs,
damages, or civil penalties resulting from acts or omissions
committed in rendering such assistance or advice, except for acts
or omissions of gross negligence or wilful misconduct.
SECTION 27.08. Subdivision (1), Subsection (a), Section
40.107, Natural Resources Code, is amended to read as follows:
(1) In any action to recover natural resources
damages, the amount of damages established by the commissioner in
conjunction with the trustees[, according to the procedures and
plans contained in the state coastal discharge contingency plan,]
shall create a rebuttable presumption of the amount of such
damages.
SECTION 27.09. Subdivisions (1) and (4), Subsection (c),
Section 40.107, Natural Resources Code, are amended to read as
follows:
(1) The commissioner, in conjunction with the
trustees, shall develop an inventory that identifies and catalogs
the physical locations, the seasonal variations in location, and
the current condition of natural resources; provides for data
collection related to coastal processes; and identifies the
recreational and commercial use areas that are most likely to
suffer injury from an unauthorized discharge of oil. The inventory
shall be completed by September 1, 1995[, and shall be incorporated
into the state coastal discharge contingency plan after public
review and comment].
(4) The commissioner shall adopt administrative
procedures and protocols for the assessment of natural resource
damages from an unauthorized discharge of oil. As developed
through negotiated rulemaking with the trustees and other
interested parties, the procedures and protocols shall require the
trustees to assess natural resource damages by considering the
unique characteristics of the spill incident and the location of
the natural resources affected. These procedures and protocols
shall be adopted by rule, by the trustee agencies after
negotiation, notice, and public comment, by June 1, 1994[, and
shall be incorporated into the state coastal discharge contingency
plan].
SECTION 27.10. Section 40.116, Natural Resources Code, is
amended to read as follows:
Sec. 40.116. AUDITS, INSPECTIONS, AND DRILLS. The
commissioner may subject a vessel subject to Section 40.114 of this
code[, as a condition to being granted entry into any port in this
state,] or a terminal facility to an announced or unannounced
audit, inspection, or drill to determine the discharge prevention
and response capabilities of the terminal facility or vessels. Any
vessel drill conducted by the commissioner shall be in cooperation
and conjunction with the United States Coast Guard, and the
commissioner's participation may not interfere with the schedule of
the vessel.
SECTION 27.11. Subsection (b), Section 40.151, Natural
Resources Code, is amended to read as follows:
(b) The coastal protection fund is established in the state
treasury to be used by the commissioner as a nonlapsing revolving
fund only for carrying out the purposes of this chapter and of
Subchapter H, Chapter 33. To this fund shall be credited all fees,
penalties, judgments, reimbursements, interest or income on the
fund, and charges provided for in this chapter and the fee revenues
levied, collected, and credited pursuant to this chapter. The fund
shall not exceed $50 million.
SECTION 27.12. Subsection (a), Section 40.152, Natural
Resources Code, is amended to read as follows:
(a) Money in the fund may be disbursed for the following
purposes and no others:
(1) administrative expenses, personnel and training
expenses, and equipment maintenance and operating costs related to
implementation and enforcement of this chapter;
(2) response costs related to abatement and
containment of actual or threatened unauthorized discharges of oil
incidental to unauthorized discharges of hazardous substances;
(3) response costs and damages related to actual or
threatened unauthorized discharges of oil;
(4) assessment, restoration, rehabilitation, or
replacement of or mitigation of damage to natural resources damaged
by an unauthorized discharge of oil;
(5) in an amount not to exceed $50,000 annually, the
small spill education program;
(6) in an amount not to exceed $1,250,000 annually,
interagency contracts under Section 40.302;
(7) the purchase of response equipment under Section
40.105 within two years of the effective date of this chapter, in an
amount not to exceed $4 million; thereafter, for the purchase of
equipment to replace equipment that is worn or obsolete;
(8) [an inventory under Section 40.107, to be
completed by September 1, 1995, in an amount not to exceed $6
million;
[(9)] other costs and damages authorized by this
chapter; [and]
(9) [(10)] in an amount not to exceed the interest
accruing to the fund annually, erosion response projects under
Subchapter H, Chapter 33; and
(10) in conjunction with the Railroad Commission of
Texas, costs related to the plugging of abandoned or orphaned oil
wells located on state-owned submerged lands.
SECTION 27.13. Subdivision (3), Subsection (g), Section
40.254, Natural Resources Code, is amended to read as follows:
(3) [A person who fails to comply with Subdivision (2)
of this subsection waives the right to judicial review.] On failure
of the person to comply with the order or file a petition for
judicial review [Subdivision (2) of this subsection], the
commissioner may refer the matter to the attorney general for
collection and enforcement.
SECTION 27.14. Subdivision (1), Subsection (h), Section
40.254, Natural Resources Code, is amended to read as follows:
(1) If a penalty is reduced or not assessed, the
commissioner shall[:
[(A)] remit to the person charged the appropriate
amount of any penalty payment plus accrued interest[; or
[(B) execute a release of the bond if a
supersedeas bond has been posted].
SECTION 27.15. Subdivisions (1), (2), and (3), Subsection
(a), Section 40.258, Natural Resources Code, are amended to read as
follows:
(1) The commissioner shall promulgate rules [and a
state coastal discharge contingency plan] that, to the greatest
extent practicable, conform to the national contingency plan and
rules promulgated under federal law.
(2) The commissioner may impose requirements under
such rules [and the state coastal discharge contingency plan] that
are in addition to or vary materially from federal requirements if
the state interests served by the requirements substantially
outweigh the burdens imposed on those subject to the requirements.
(3) Any request for judicial review of any rule [or any
provision of the state coastal discharge contingency plan based on
Subdivision (1) or (2) of this subsection] must be filed in a
district court in Travis County within 90 days of the effective date
of the rule or plan challenged.
SECTION 27.16. The following provisions of the Natural
Resources Code are repealed:
(1) Sections 40.006, 40.053, 40.115, and 40.303;
(2) Subsection (f), Section 40.110;
(3) Subsection (b), Section 40.117;
(4) Subsection (e), Section 40.151; and
(5) Subdivision (2), Subsection (g), Section 40.254.
ARTICLE 28. REPORTS
SECTION 28.01. Subsection (a), Section 363.064, Health and
Safety Code, is amended to read as follows:
(a) A regional or local solid waste management plan must:
(1) include a description and an assessment of current
efforts in the geographic area covered by the plan to minimize
production of municipal solid waste, including sludge, and efforts
to reuse or recycle waste;
(2) identify additional opportunities for waste
minimization and waste reuse or recycling;
(3) include a description and assessment of existing
or proposed community programs for the collection of household
hazardous waste;
(4) make recommendations for encouraging and
achieving a greater degree of waste minimization and waste reuse or
recycling in the geographic area covered by the plan;
(5) encourage cooperative efforts between local
governments in the siting of landfills for the disposal of solid
waste;
(6) consider the need to transport waste between
municipalities, from a municipality to an area in the jurisdiction
of a county, or between counties, particularly if a technically
suitable site for a landfill does not exist in a particular area;
(7) allow a local government to justify the need for a
landfill in its jurisdiction to dispose of the solid waste
generated in the jurisdiction of another local government that does
not have a technically suitable site for a landfill in its
jurisdiction;
(8) establish recycling rate goals appropriate to the
area covered by the plan;
(9) recommend composting programs for yard waste and
related organic wastes that may include:
(A) creation and use of community composting
centers;
(B) adoption of the "Don't Bag It" program for
lawn clippings developed by the Texas Agricultural Extension
Service; and
(C) development and promotion of education
programs on home composting, community composting, and the
separation of yard waste for use as mulch;
(10) include an inventory of municipal solid waste
landfill units, including:
(A) landfill units no longer in operation;
(B) the exact boundaries of each former landfill
unit or, if the exact boundaries are not known, the best
approximation of each unit's boundaries;
(C) a map showing the approximate boundaries of
each former landfill unit, if the exact boundaries are not known;
(D) the current owners of the land on which the
former landfill units were located; and
(E) the current use of the land;
(11) assess the need for new waste disposal capacity;
and
(12) include a public education program[; and
[(13) include waste reduction in accordance with the
goal established under Section 361.0201(d), to the extent that
funds are available].
SECTION 28.02. The heading to Section 5.178, Water Code, is
amended to read as follows:
Sec. 5.178. ANNUAL REPORTS; BIENNIAL APPENDICES
[APPENDIXES].
SECTION 28.03. Subsection (b), Section 5.178, Water Code,
is amended to read as follows:
(b) The report due by December 1 of an even-numbered year
shall include, in addition:
(1) the commission's recommendations for necessary and
desirable legislation; and
(2) the following reports:
(A) the assessments and reports required by
Section [Sections] 361.0219(c)[, 361.0232, 361.510, 371.063, and
382.141], Health and Safety Code;
(B) the reports required by Section 26.0135(d)
[of this code] and Section 5.02, Chapter 133, Acts of the 69th
Legislature, Regular Session, 1985; and
(C) a summary of the analyses and assessments
required by Section 5.1773 [of this code].
SECTION 28.04. (a) The following provisions of the Health
and Safety Code are repealed:
(1) Sections 361.020, 361.0201, 361.0232, 361.0233,
361.0234, 361.510, 371.063, and 382.141;
(2) Subsection (d), Section 361.040; and
(3) Subsection (c), Section 361.0871.
(b) Subsection (c), Section 5.178, Water Code, is repealed.
ARTICLE 29. SCHOOL BUS SAFETY STANDARDS
SECTION 29.01. Subsection (a), Section 34.002, Education
Code, is amended to read as follows:
(a) The Department of Public Safety, with the advice of the
[General Services Commission and the] Texas Education Agency, shall
establish safety standards for school buses used to transport
students in accordance with Section 34.003 [34.002, Education
Code].
SECTION 29.02. Subsections (a) and (b), Section 547.7015,
Transportation Code, are amended to read as follows:
(a) The department [General Services Commission, with the
advice of the department,] shall adopt and enforce rules governing
the design, color, lighting and other equipment, construction, and
operation of a school bus for the transportation of schoolchildren
that is:
(1) owned and operated by a school district in this
state; or
(2) privately owned and operated under a contract with
a school district in this state.
(b) In adopting rules under this section, the department
[General Services Commission] shall emphasize:
(1) safety features; and
(2) long-range, maintenance-free factors.
SECTION 29.03. Rules that were adopted under Section
547.7015, Transportation Code, before the effective date of this
article and that are in effect on the effective date of this article
are continued in effect as rules of the Department of Public Safety
until the rules are amended, repealed, or superseded by an action of
the department.
ARTICLE 30. CORPORATE ETHICS AND INTEGRITY
SECTION 30.01. Subchapter B, Chapter 402, Government Code,
is amended by adding Section 402.0231 to read as follows:
Sec. 402.0231. CORPORATE INTEGRITY UNIT. (a) In this
section, "corporate fraud" means a violation of state or federal
law or rules relating to fraud committed by a corporation, limited
liability company, or registered limited liability partnership or
an officer, director, or partner of those entities while acting in a
representative capacity.
(b) A corporate integrity unit is created within the office
of the attorney general to assist in the enforcement of the laws
relating to corporate fraud or other similar illegal activities.
The unit shall:
(1) assist district attorneys and county attorneys in
the investigation and prosecution of corporate fraud or other
similar illegal activities allegedly committed by corporations,
limited liability companies, and registered limited liability
partnerships;
(2) assist state agencies with investigation of
complaints and administrative enforcement actions for corporate
fraud violations, including the assessment of an administrative
penalty or other administrative sanction; and
(3) serve as a clearinghouse for information relating
to the investigation and prosecution of corporate fraud and other
similar illegal activities in this state.
(c) To the extent allowed by law, a state agency or local law
enforcement agency shall cooperate with the corporate integrity
unit by providing information requested by the unit as necessary to
carry out the purposes of this section. Information disclosed
under this subsection is confidential and not subject to disclosure
under Chapter 552.
SECTION 30.02. Subchapter Z, Chapter 2252, Government Code,
is amended by adding Section 2252.904 to read as follows:
Sec. 2252.904. CONTRACTS WITH COMPANIES; FINANCIAL
DISCLOSURES. (a) In this section:
(1) "Branch" means a location of a financial
institution, other than the financial institution's home office, at
which the financial institution does business.
(2) "Certified audit" means an audit of the company's
books, records, and accounts and the company's systems of internal
control performed by an independent certified public accountant in
accordance with generally accepted auditing standards.
(3) "Company" means a corporation, partnership,
limited partnership, registered limited liability partnership,
trust, association, joint stock company, joint venture, limited
liability company, or other form of business organization. The
term does not include a sole proprietorship or individual.
(4) "County in which the financial institution does
business" means any county in which the financial institution has a
branch or home office.
(5) "Financial irregularity" means an intentional
misstatement or omission of information relating to a financial
transaction or matter. The term includes embezzlement, fraud, and
the falsification of records to misappropriate assets.
(6) "Independent certified public accountant" means a
certified public accountant who:
(A) is not affiliated with, is not an employee,
principal, or direct or indirect owner of, and is not in any way
controlled by the audited company; and
(B) meets independence standards adopted by
appropriate standard-setting or regulatory entities.
(7) "State governmental entity" means:
(A) a board, commission, department, office, or
other agency in the executive branch of state government created
under the constitution or a statute of the state, including an
institution of higher education as defined by Section 61.003,
Education Code;
(B) the legislature or a legislative agency; or
(C) the Texas Supreme Court, the Texas Court of
Criminal Appeals, a court of appeals, a state judicial agency, or
the State Bar of Texas.
(b) A company, including a financial institution, that
enters into a contract with a state governmental entity that
involves the expenditure of state funds of more than $1 million or
the deposit of state funds of $1 million or more shall:
(1) immediately report to the entity any financial
irregularity relating to the contract or the company's financial
position that is detrimental to the interest of the entity;
(2) annually during the contract period submit to the
entity a certified audit of the company's operations, except as
provided by Subsection (g); and
(3) if the company is a financial institution, file:
(A) an itemized report covering the preceding
year stating separately for each county in which the financial
institution does business, the financial institution's community
reinvestment activities, mortgage loan activities and practices,
and compliance with fair lending standards in the respective
county; and
(B) any other related information as specified by
the comptroller.
(c) The auditor's opinion in an audit required by Subsection
(b)(2) must state whether the financial statements of the audited
company present fairly, in all material respects and in accordance
with accounting principles generally accepted in the United States,
its financial position and results of operations relating to the
obligation, receipt, expenditure, and use of state funds.
(d) A company that violates Subsection (b)(1) commits an
offense. An offense under this subsection is a Class A misdemeanor.
(e) A company that violates Subsection (b)(2) or (b)(3) is
liable to the state for a civil penalty in an amount not to exceed
$10,000. The attorney general may bring suit to recover the civil
penalty imposed under this subsection.
(f) If the attorney general prevails in an action for
recovery of a civil penalty under Subsection (e), the attorney
general is entitled to recover reasonable attorney's fees incurred
in obtaining the penalty.
(g) A federally insured financial institution that has less
than $500 million in assets may, in lieu of a certified audit
required by Subsection (b)(2), submit a directors examination
conducted by an independent certified public accountant in
accordance with the Statement of Standards for Attestation
Engagements.
(h) For purposes of Subsection (b), the amount of
expenditures or deposit of state funds with respect to a single
financial institution means the aggregate amount of those
expenditures or deposits at the financial institution's home office
and at each branch of the financial institution in this state.
SECTION 30.03. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2263 to read as follows:
CHAPTER 2263. ETHICS AND DISCLOSURE REQUIREMENTS FOR OUTSIDE
FINANCIAL ADVISORS AND SERVICE PROVIDERS
Sec. 2263.001. APPLICABILITY. (a) This chapter applies in
connection with the management or investment of any state funds
managed or invested:
(1) under the Texas Constitution or other law,
including Chapters 404 and 2256; and
(2) by or for:
(A) a public retirement system as defined by
Section 802.001 that provides service retirement, disability
retirement, or death benefits for officers or employees of the
state;
(B) an institution of higher education as defined
by Section 61.003, Education Code; or
(C) another entity that is part of state
government and that manages or invests state funds or for which
state funds are managed or invested.
(b) This chapter applies in connection with the management
or investment of state funds without regard to whether the funds are
held in the state treasury.
(c) This chapter does not apply to or in connection with a
state governmental entity that does not manage or invest state
funds and for which state funds are managed or invested only by the
comptroller.
Sec. 2263.002. DEFINITION. In this chapter, "financial
advisor or service provider" includes a person or business entity
who acts as a financial advisor, financial consultant, money or
investment manager, or broker.
Sec. 2263.003. CONSTRUCTION WITH OTHER LAW. To the extent
of a conflict between this chapter and another law, the law that
imposes a stricter ethics or disclosure requirement controls.
Sec. 2263.004. ETHICS REQUIREMENTS FOR OUTSIDE FINANCIAL
ADVISORS OR SERVICE PROVIDERS. (a) The governing body of a state
governmental entity by rule shall adopt standards of conduct
applicable to financial advisors or service providers who are not
employees of the state governmental entity, who provide financial
services to the state governmental entity or advise the state
governmental entity or a member of the governing body of the state
governmental entity in connection with the management or investment
of state funds, and who:
(1) may reasonably be expected to receive, directly or
indirectly, more than $10,000 in compensation from the entity
during a fiscal year; or
(2) render important investment or funds management
advice to the entity or a member of the governing body of the
entity, as determined by the governing body.
(b) A contract under which a financial advisor or service
provider renders financial services or advice to a state
governmental entity or other person as described by Subsection (a)
is voidable by the state governmental entity if the financial
advisor or service provider violates a standard of conduct adopted
under this section.
Sec. 2263.005. DISCLOSURE REQUIREMENTS FOR OUTSIDE
FINANCIAL ADVISOR OR SERVICE PROVIDER. (a) A financial advisor or
service provider described by Section 2263.004 shall disclose in
writing to the administrative head of the applicable state
governmental entity and to the state auditor:
(1) any relationship the financial advisor or service
provider has with any party to a transaction with the state
governmental entity, other than a relationship necessary to the
investment or funds management services that the financial advisor
or service provider performs for the state governmental entity, if
a reasonable person could expect the relationship to diminish the
financial advisor's or service provider's independence of judgment
in the performance of the person's responsibilities to the state
governmental entity; and
(2) all direct or indirect pecuniary interests the
financial advisor or service provider has in any party to a
transaction with the state governmental entity, if the transaction
is connected with any financial advice or service the financial
advisor or service provider provides to the state governmental
entity or to a member of the governing body in connection with the
management or investment of state funds.
(b) The financial advisor or service provider shall
disclose a relationship described by Subsection (a) without regard
to whether the relationship is a direct, indirect, personal,
private, commercial, or business relationship.
(c) A financial advisor or service provider described by
Section 2263.004 shall file annually a statement with the
administrative head of the applicable state governmental entity and
with the state auditor. The statement must disclose each
relationship and pecuniary interest described by Subsection (a) or,
if no relationship or pecuniary interest described by that
subsection existed during the disclosure period, the statement must
affirmatively state that fact.
(d) The annual statement must be filed not later than
February 1 on a form prescribed by the governmental entity, other
than the state auditor, receiving the form. The statement must
cover the reporting period of the previous calendar year. The state
auditor shall develop and recommend a uniform form that other
governmental entities receiving the form may prescribe.
(e) The financial advisor or service provider shall
promptly file a new or amended statement with the administrative
head of the applicable state governmental entity and with the state
auditor whenever there is new information to report under
Subsection (a).
Sec. 2263.006. PUBLIC INFORMATION. Chapter 552 controls
the extent to which information contained in a statement filed
under this chapter is subject to required public disclosure or
excepted from required public disclosure.
SECTION 30.04. Section B, Article 1.03, Texas Miscellaneous
Corporation Laws Act (Article 1302-1.03, Vernon's Texas Civil
Statutes), is amended to read as follows:
B. Except to the extent that any provisions of this Act are
expressly made inapplicable by any provision of the Texas Business
Corporation Act, the Texas Non-Profit Corporation Act, or any
special Statute of this State pertaining to a particular type of
corporation and except as otherwise provided by Article 5.20 of
this Act, this Act shall govern (1) all domestic corporations,
including without limitation those corporations heretofore or
hereafter organized under any Statute of the State, and (2) only to
the extent expressly provided in this Act, all foreign
corporations, including without limitation those corporations
heretofore or hereafter granted a permit to do business under any
Statute of the State.
SECTION 30.05. Part Five, Texas Miscellaneous Corporation
Laws Act (Article 1302-5.01 et seq., Vernon's Texas Civil
Statutes), is amended by adding Article 5.20 to read as follows:
Art. 5.20. CERTIFICATION OF FALSE OR MISLEADING FINANCIAL
REPORT; CRIMINAL PENALTY. (a) In this section:
(1) "Corporate official" means the president or other
chief executive officer, the chief financial officer, or any other
officer of or person performing a similar function for a
corporation or other company that is required to file a periodic
report under Section 13(a) or 15(d), Securities Exchange Act of
1934 (15 U.S.C. Sections 78m(a), 78o(d)).
(2) "Financial report" means a balance sheet, an
income or loss statement, a cash flow statement, or any other
presentation of financial information, however denominated,
concerning a corporation or other company that is intended to
portray a significant portion of the company's financial position.
(b) A corporate official who signs a sworn statement
certifying that information contained in a financial report fairly
represents, as of the period presented in the report, the financial
condition or results of operation of the company issuing the report
commits an offense if the corporate official makes the
certification knowing that the report contains false or misleading
information that affects or may affect the finances or operations
of the issuing company, as appropriate, in any material respect.
(c) An offense under this section is a state jail felony.
SECTION 30.06. Subchapter D, Chapter 371, Finance Code, is
amended by adding Section 371.184 to read as follows:
Sec. 371.184. RESTRICTIONS ON TRANSACTIONS INVOLVING
INTERESTED PARTIES. (a) In this section:
(1) "Controlling shareholder" means a shareholder or
group of affiliated shareholders that owns 25 percent or more of the
shares eligible to vote in any election of directors or other
matters typically requiring shareholder approval.
(2) "Interested party" means, with respect to a
corporation or other business entity:
(A) a controlling shareholder;
(B) a member of the board of directors or its
equivalent;
(C) an executive officer of the corporation or
business entity;
(D) a member of the immediate family of a
controlling shareholder, director, or executive officer; or
(E) an affiliate of the corporation or other
business entity, a controlling shareholder, director, or executive
officer of an affiliate, or a member of the immediate family of a
controlling shareholder, director, or executive officer of an
affiliate.
(b) A corporation or other business entity that holds a
license under this chapter and whose shares are publicly traded may
not engage in a transaction with an interested party that, when
aggregated with all transactions with that person or any other
interested party during the corporation's fiscal year, involves a
total of $100,000 or more, unless that transaction receives prior
approval of a majority of the holders of outstanding shares of the
corporation's or other business entity's capital stock or its
equivalent, including capital stock that is not otherwise entitled
to vote, who are not interested parties, voting together as a single
class of capital stock.
SECTION 30.07. The office of the attorney general is not
required to implement Section 402.0231, Government Code, as added
by this article, unless a specific appropriation for the
implementation is provided in the General Appropriations Act, Acts
of the 78th Legislature, Regular Session, 2003.
SECTION 30.08. Each state governmental entity required to
adopt rules under Chapter 2263, Government Code, as added by this
article, shall adopt its initial rules in time for the rules to take
effect not later than January 1, 2004.
ARTICLE 31. ADJUTANT GENERAL
SECTION 31.01. Subsection (b), Section 431.022, Government
Code, is amended to read as follows:
(b) The adjutant general is appointed by the governor, with
the advice and consent of the senate if in session, to a term
expiring February 1 of each odd-numbered year. To be qualified for
appointment as adjutant general a person must:
(1) when appointed be serving as a federally
recognized officer of not less than field grade in the Texas
National Guard;
(2) have previously served on active duty or active
duty for training with the army, [or] air force, or marines; and
(3) have completed at least 10 years' service as a
federally recognized reserve or active duty commissioned officer
with an active unit of the United States armed forces, the National
Guard, or the Texas National Guard, including at least five years
with the Texas National Guard.
ARTICLE 32. GOVERNOR'S BUDGET AUTHORITY
SECTION 32.01. Subsection (a), Section 401.046, Government
Code, is amended to read as follows:
(a) The governor shall deliver a copy of the governor's
budget to each member of the legislature before the governor gives
the message to the legislature required by Section 9, Article IV,
Texas Constitution, at the commencement [not later than the sixth
day] of each regular legislative session.
SECTION 32.02. Section 401.047, Government Code, is
repealed.
ARTICLE 33. COMMISSIONER OF INSURANCE
SECTION 33.01. Section 31.023, Insurance Code, is amended
to read as follows:
Sec. 31.023. QUALIFICATIONS. The commissioner must:
(1) be a competent and experienced administrator;
(2) be well informed and qualified in the field of
insurance and insurance regulation; and
(3) have at least 10 years of experience as an
executive in the administration of business or government or as a
practicing attorney or certified public accountant[, with at least
five years of that experience in the field of insurance or insurance
regulation].
SECTION 33.02. The change in law made by this article to
Section 31.023, Insurance Code, applies only to the appointment of
the commissioner of insurance on or after the effective date of this
article. A commissioner of insurance appointed before the
effective date of this article is governed by the law as it existed
immediately before that date, and that law is continued in effect
for this purpose.
ARTICLE 34. MEMBERS OF PARKS AND WILDLIFE COMMISSION
SECTION 34.01. Subsection (d), Section 11.012, Parks and
Wildlife Code, is amended to read as follows:
(d) In making appointments under this section, the
governor:
(1) shall:
(A) attempt to include persons with expertise in
diverse fields, including fields such as historic preservation,
conservation, and outdoor recreation; and
(B) consider the commission's composition in
terms of:
(i) the geographical areas represented by
members of the commission; and
(ii) the appropriate balance of
representatives from rural and urban areas; and
(2) may include persons who have an interest in and
knowledge of hunting, fishing, wildlife, environmental concerns,
land or water use issues, or water quality issues.
SECTION 34.02. (a) As soon as possible on or after
September 1, 2003, the governor shall appoint nine members to the
Parks and Wildlife Commission under Section 11.012, Parks and
Wildlife Code, as amended by this article. The governor shall
designate:
(1) three members, including one public member, for
terms expiring February 1, 2005;
(2) three members, including one public member, for
terms expiring February 1, 2007; and
(3) three members, including one public member, for
terms expiring February 1, 2009.
(b) The governor may reappoint a person who served as a
member of the Parks and Wildlife Commission before September 1,
2003.
(c) The position of a member of the Parks and Wildlife
Commission serving immediately before September 1, 2003, is
abolished at the time five or more of the newly appointed directors
qualify for office. Until the abolition of the members' positions
occurs under this section, the members serving immediately before
September 1, 2003, have the same powers and duties that the members
had immediately before that date and the commission continues to be
composed in the way it was composed before that date, and the former
law is continued in effect for that purpose.
ARTICLE 35. DESIGNATION OF PRESIDING OFFICERS
SECTION 35.01. Chapter 651, Government Code, is amended by
adding Section 651.008 to read as follows:
Sec. 651.008. APPOINTMENT OF PRESIDING OFFICERS BY
GOVERNOR. (a) In this section, "state agency" means a department,
commission, board, office, council, authority, or other agency in
the executive branch of state government that is created by the
constitution or a statute of this state, including:
(1) a university system or institution of higher
education as defined by Section 61.003, Education Code; and
(2) a river authority as defined by Section 30.003,
Water Code.
(b) Notwithstanding other law, the governor may designate a
member of the governing body of each state agency as the presiding
officer of that governing body to serve in that capacity at the
pleasure of the governor.
ARTICLE 36. LIMITATIONS APPLICABLE TO CERTAIN GROUP INSURANCE
PROGRAMS
SECTION 36.01. Subchapter E, Chapter 3, Insurance Code, is
amended by adding Article 3.50-7A to read as follows:
Art. 3.50-7A. LIMITATIONS APPLICABLE TO TEXAS SCHOOL
EMPLOYEES UNIFORM GROUP COVERAGE PROGRAM. (a) This article
applies only to the uniform group coverage program established
under Article 3.50-7 of this code. A term used in this article has
the meaning assigned by Section 2, Article 3.50-7 of this code.
(b) The Teacher Retirement System of Texas, as trustee, may
not contract for or provide a health coverage plan that excludes
from participation in the network a general hospital that:
(1) is located in a county, all or part of which is
located within the geographical service area of the health coverage
plan, in which at least two, but not more than four, general
hospitals are located; and
(2) agrees to provide medical and health care services
under the plan subject to the same terms and conditions as other
hospital providers under the plan.
SECTION 36.02. (a) Section 1551.205, Insurance Code, is
amended to conform to Section 30, Chapter 1231, Acts of the 77th
Legislature, Regular Session, 2001, and further amended to read as
follows:
Sec. 1551.205. LIMITATIONS. (a) The board of trustees may
not contract for or provide a coverage plan that:
(1) excludes or limits coverage or services for
acquired immune deficiency syndrome, as defined by the Centers for
Disease Control and Prevention of the United States Public Health
Service, or human immunodeficiency virus infection; or
(2) provides coverage for serious mental illness that
is less extensive than the minimum coverage [provided] for serious
mental [any physical] illness required by Section 3, Article
3.51-14.
(b) The board of trustees may not contract for or provide a
coverage plan that excludes from participation in the network a
general hospital that:
(1) is located in a county, all or part of which is
located within the geographical service area of the health coverage
plan, in which at least two, but not more than four, general
hospitals are located; and
(2) agrees to provide medical and health care services
under the plan subject to the same terms and conditions as other
hospital providers under the plan.
(b) Section 30, Chapter 1231, Acts of the 77th Legislature,
Regular Session, 2001, is repealed.
SECTION 36.03. Subchapter D, Chapter 1575, Insurance Code,
is amended by adding Section 1575.163 to read as follows:
Sec. 1575.163. LIMITATIONS. The Teacher Retirement System
of Texas, as trustee, may not contract for or provide a health
benefit plan that excludes from participation in the network a
general hospital that:
(1) is located in a county, all or part of which is
located within the geographical service area of the health coverage
plan, in which at least two, but not more than four, general
hospitals are located; and
(2) agrees to provide medical and health care services
under the plan subject to the same terms and conditions as other
hospital providers under the plan.
ARTICLE 37. REGULATION OF INDUSTRIALIZED HOUSING
SECTION 37.01. Subsection (c), Section 1202.002,
Occupations Code, is amended to read as follows:
(c) Industrialized housing does not include:
(1) a residential structure that exceeds four [three]
stories or 69 [49] feet in height as measured from the finished
grade elevation at the building entrance to the peak of the roof;
(2) housing constructed of a sectional or panelized
system that does not use a modular component; or
(3) a ready-built home constructed in a manner in
which the entire living area is contained in a single unit or
section at a temporary location for the purpose of selling and
moving the home to another location.
ARTICLE 38. TELECONFERENCE MEETING OF THE LEGISLATIVE BUDGET
BOARD
SECTION 38.01. Section 322.003, Government Code, is amended
by adding Subsections (d) and (e) to read as follows:
(d) As an exception to Chapter 551 and other law, if the
chairman and vice-chairman of the board are physically present at a
meeting, then any number of the other members of the board may
attend a meeting of the board by use of telephone conference call,
video conference call, or other similar telecommunication device.
This subsection applies for purposes of constituting a quorum, for
purposes of voting, and for any other purpose allowing a member of
the board to otherwise fully participate in any meeting of the
board. This subsection applies without exception with regard to
the subject of the meeting or topics considered by the members.
(e) A meeting held by use of telephone conference call,
video conference call, or other similar telecommunication device:
(1) is subject to the notice requirements applicable
to other meetings;
(2) must specify in the notice of the meeting the
location of the meeting;
(3) must be open to the public and shall be audible to
the public at the location specified in the notice of the meeting as
the location of the meeting; and
(4) must provide two-way audio communication between
all parties attending the meeting during the entire meeting.
ARTICLE 39. DISCLOSURE ON POLITICAL ADVERTISING
SECTION 39.01. Section 251.001, Election Code, is amended
by amending Subdivision (16) and adding Subdivision (21) to read as
follows:
(16) "Political advertising" means a communication
containing express advocacy relating to an election for [supporting
or opposing a candidate for nomination or election to] a public
office or office of a political party[, a political party, a public
officer,] or a measure that:
(A) in return for consideration, is published in
a newspaper, magazine, or other periodical or is broadcast by radio
or television or any other electronic transmission; or
(B) appears in a pamphlet, circular, flier,
billboard or other sign, bumper sticker, or similar form of written
communication.
(21) "Express advocacy" means a communication that
advocates the election or defeat of a clearly identified candidate
or officeholder or measure by containing the words or phrases such
as: "elect," "vote for," "reelect," "support," "cast your ballot
for," "(name of candidate) for (name of office)," "vote against,"
"defeat," or "reject."
SECTION 39.02. Section 255.001, Election Code, is amended
to read as follows:
Sec. 255.001. REQUIRED DISCLOSURE ON POLITICAL
ADVERTISING. (a) A person may not knowingly cause to be
published, distributed, or broadcasted [enter into a contract or
other agreement to print, publish, or broadcast] political
advertising that does not indicate in the advertising:
(1) that it is political advertising; and
(2) the full name of:
(A) [either the individual who personally
entered into the contract or agreement with the printer, publisher,
or broadcaster or] the person who paid for the political
advertising;
(B) the political committee authorizing the
political advertising; or
(C) the full name of the candidate or
specific-purpose committee supporting the candidate, if such
political advertising is authorized by the candidate [that
individual represents; and
[(3) in the case of advertising that is printed or
published, the address of either the individual who personally
entered into the agreement with the printer or publisher or the
person that individual represents].
(a-1) A person may not knowingly use, cause or permit to be
used, or continue to use any printed, published, displayed, or
broadcast political advertising that the person knows does not
include the disclosure required by Subsection (a). A person is
presumed to know that the use of political advertising is
prohibited by this subsection if the commission notifies the person
in writing that the use is prohibited. A person who learns that
political advertising signs, as defined by Section 255.007, that
have been distributed do not include the disclosure required by
Subsection (a) or include a disclosure that does not comply with
Subsection (a) does not commit a continuing violation of this
subsection if the person makes a good faith attempt to remove or
correct the signs. A person who learns that printed political
advertising other than a political advertising sign that has been
distributed does not include the disclosure required by Subsection
(a) or includes a disclosure that does not comply with Subsection
(a) is not required to attempt to recover the political advertising
and does not commit a continuing violation of this subsection as to
any previously distributed political advertising.
(b) This section does not apply to tickets or invitations to
political fund-raising events or to campaign buttons, pins, hats,
or similar campaign materials, or to circulars or flyers that cost
in aggregate to publish and distribute less than $500.
(c) A person who violates this section is liable to the
state for a civil penalty that may be levied by the commission in
its discretion in an amount not to exceed $4,000 [commits an
offense. An offense under this section is a Class A misdemeanor].
ARTICLE 40. TEXAS A&M UNIVERSITY--CORPUS CHRISTI NATURAL
RESOURCES CENTER
SECTION 40.01. Subchapter E, Chapter 87, Education Code, is
amended by adding Section 87.403 to read as follows:
Sec. 87.403. CARLOS F. TRUAN NATURAL RESOURCES CENTER. The
natural resources center located at Texas A&M University--Corpus
Christi that was dedicated on August 6, 1996, shall be known as the
Carlos F. Truan Natural Resources Center. The board shall take
appropriate action to ensure that the center is identified as
provided by this section.
ARTICLE 41. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY PERMITTING
AUTHORITY
SECTION 41.01. Section 382.0564, Health and Safety Code, is
amended to read as follows:
Sec. 382.0564. NOTIFICATION TO OTHER GOVERNMENTAL
ENTITIES. (a) The commission by rule may allow for notification
of and review by the administrator and affected states of permit
applications, revisions, renewals, or draft permits prepared under
Sections 382.054-382.0543.
(b) The commission shall mail notice of intent to obtain a
permit, permit amendment, or other authorization for a
rock-crushing facility associated with blasting operations to an
affected municipality.
(c) An affected municipality entitled to notice under
Subsection (b) may submit comments to the commission within 30 days
of receiving a notice of intent under Subsection (b).
(d) The commission may not issue a permit, permit amendment,
or other authorization for a rock-crushing facility associated with
blasting operations if the commission receives from an affected
municipality a resolution in opposition to issuance of the permit,
permit amendment, or other authorization during the 30-day comment
period.
(e) For purposes of this section, "affected municipality"
means a municipality whose primary source of drinking water is an
aquifer made, wholly or partly, of water-bearing limestone or
dolomite which is located in a county:
(1) that is adjacent to a county with a population of
500,000 or more; and
(2) in which is located a portion of a body of water
into which a discharge of pollutants is prohibited by the
commission under 30 T.A.C. Chapter 311.
ARTICLE 42. CARRYING OF WEAPONS BY CERTAIN OFFICERS AND
INVESTIGATORS
SECTION 42.01. Section 46.15, Penal Code, is amended by
amending Subsection (a) and adding Subsection (g) to read as
follows:
(a) Sections 46.02 and 46.03 do not apply to:
(1) peace officers, including commissioned peace
officers of a recognized state, or special investigators under
Article 2.122, Code of Criminal Procedure, and neither section
prohibits a peace officer or special investigator from carrying a
weapon in this state, including in an establishment in this state
serving the public, regardless of whether the peace officer or
special investigator is engaged in the actual discharge of the
officer's or investigator's duties while carrying the weapon;
(2) parole officers and neither section prohibits an
officer from carrying a weapon in this state if the officer is:
(A) engaged in the actual discharge of the
officer's duties while carrying the weapon; and
(B) in compliance with policies and procedures
adopted by the Texas Department of Criminal Justice regarding the
possession of a weapon by an officer while on duty;
(3) community supervision and corrections department
officers appointed or employed under Section 76.004, Government
Code, and neither section prohibits an officer from carrying a
weapon in this state if the officer is:
(A) engaged in the actual discharge of the
officer's duties while carrying the weapon; and
(B) authorized to carry a weapon under Section
76.0051, Government Code; or
(4) a judge or justice of the supreme court, the court
of criminal appeals, a court of appeals, a district court, a
criminal district court, a constitutional county court, a statutory
county court, a justice court, or a municipal court who is licensed
to carry a concealed handgun under Subchapter H, Chapter 411,
Government Code.
(g) In this section, "recognized state" means another state
with which the attorney general of this state, with the approval of
the governor of this state, negotiated an agreement after
determining that the other state:
(1) has firearm proficiency requirements for peace
officers; and
(2) fully recognizes the right of peace officers
commissioned in this state to carry weapons in the other state.
SECTION 42.02. The change in law made by this article
applies only to an offense committed on or after September 1, 2003.
An offense committed before September 1, 2003, is covered by the
law in effect when the offense was committed, and the former law is
continued in effect for that purpose. For purposes of this section,
an offense was committed before September 1, 2003, if any element
of the offense was committed before that date.
ARTICLE 43. DESIGNATING THE POET LAUREATE, STATE MUSICIAN, AND
STATE ARTISTS
SECTION 43.01. Subsection (d), Section 1, Article 6139k,
Revised Statutes, as added by Chapter 1412, Acts of the 77th
Legislature, Regular Session, 2001, is amended to read as follows:
(d) The individuals designated as poet laureate, as state
musician, and as state artists keep the designation for two years
[one year] from the date of the designation ceremony.
SECTION 43.02. Section 2, Article 6139k, Revised Statutes,
as added by Chapter 1412, Acts of the 77th Legislature, Regular
Session, 2001, is amended by amending Subsections (a), (b), and (d)
and adding Subsections (e) and (f) to read as follows:
(a) The Texas poet laureate, state musician, and state
artist committee consists of the following seven members:
(1) one member of the public appointed by the
governor;
(2) two [three] members of the public appointed by the
lieutenant governor; [and]
(3) one senator appointed by the lieutenant governor;
(4) two [three] members of the public appointed by the
speaker of the house of representatives; and
(5) the chair of the house committee that has primary
jurisdiction over arts and cultural matters.
(b) The [One member appointed by the speaker of the house of
representatives must be the] chair of the house committee that has
primary jurisdiction over arts and cultural matters [who] serves on
the committee as an additional duty of the chairmanship.
(d) The member of the house of representatives on the
committee serves as presiding officer of the committee. The
presiding officer of the committee serves a two-year term that
expires on October 1 of each odd-numbered year [The members of the
committee shall select a presiding officer from the members of the
committee].
(e) The committee shall meet in November of each
even-numbered year to decide who to designate as the poet laureate,
state musician, and state artists. In January of each odd-numbered
year, the committee shall designate the poet laureate, state
musician, and state artists.
(f) The presiding officer of the committee shall call the
meetings of the committee.
SECTION 43.03. Section 3, Article 6139k, Revised Statutes,
as added by Chapter 1412, Acts of the 77th Legislature, Regular
Session, 2001, is amended by amending Subsection (d) and adding
Subsection (e) to read as follows:
(d) Not later than September 30 of each even-numbered year,
the [The] Texas Commission on the Arts shall submit to the Texas
poet laureate, state musician, and state artist committee a list of
not more than 10 individuals who are worthy of being designated as
the poet laureate, a list of not more than 10 individuals who are
worthy of being designated as the state musician, a list of not more
than 10 individuals who are worthy of being designated as the state
artist for two-dimensional media, and a list of not more than 10
individuals who are worthy of being designated as the state artist
for three-dimensional media.
(e) The Texas Commission on the Arts shall adopt rules
relating to the solicitation, acceptance, and processing of
nominations for the poet laureate, state musician, and state
artists under this section.
SECTION 43.04. Article 6139k, Revised Statutes, as added by
Chapter 1412, Acts of the 77th Legislature, Regular Session, 2001,
is amended by adding Section 5 to read as follows:
Sec. 5. RESOLUTION NAMING POET LAUREATE, STATE MUSICIAN,
AND STATE ARTISTS. Not later than February 1 of each odd-numbered
year, the presiding officer of the Texas poet laureate, state
musician, and state artist committee shall draft a concurrent
resolution for consideration by the legislature that acknowledges
the naming of the poet laureate, state musician, and state artists.
SECTION 43.05. (a) This article takes effect October 1,
2003.
(b) On the effective date of this article, the term of each
member of the Texas poet laureate, state musician, and state artist
committee expires. As soon as practicable after the effective date
of this article, the governor, lieutenant governor, and speaker of
the house of representatives shall appoint the members of the Texas
poet laureate, state musician, and state artist committee that meet
the requirements of Section 2, Article 6139k, Revised Statutes, as
added by Chapter 1412, Acts of the 77th Legislature, Regular
Session, 2001, as amended by this article.
ARTICLE 44. SCHOOL SAFETY REGULATIONS AND SAFETY TRAINING PROGRAM
SECTION 44.01. Chapter 33, Education Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. SAFETY REGULATIONS FOR CERTAIN EXTRACURRICULAR
ACTIVITIES
Sec. 33.101. APPLICABILITY. This subchapter applies to
each public school in this state and to any other school in this
state subject to University Interscholastic League regulations.
Sec. 33.102. SAFETY TRAINING REQUIRED. (a) The
commissioner by rule shall develop and adopt a safety training
program as provided by this section. In developing the program, the
commissioner may use materials available from the American Red
Cross or another appropriate entity.
(b) The following persons must satisfactorily complete the
safety training program:
(1) a coach, trainer, or sponsor for an
extracurricular athletic activity;
(2) except as provided by Subsection (f), a physician
who is employed by a school or school district or who volunteers to
assist with an extracurricular athletic activity; and
(3) a director responsible for a school marching band.
(c) The safety training program must include:
(1) certification of participants by the American Red
Cross, the American Heart Association, or a similar organization,
as determined by the commissioner;
(2) annual training in:
(A) emergency action planning;
(B) cardiopulmonary resuscitation if the person
is not required to obtain certification under Section 33.086;
(C) communicating effectively with 9-1-1
emergency service operators and other emergency personnel; and
(D) recognizing symptoms of potentially
catastrophic injuries, including head and neck injuries,
concussions, injuries related to second impact syndrome, asthma
attacks, heatstroke, cardiac arrest, and injuries requiring use of
a defibrillator; and
(3) at least once each school year, a safety drill that
incorporates the training described by Subdivision (2) and
simulates various injuries described by Subdivision (2)(D).
(d) A student participating in an extracurricular athletic
activity must receive training related to:
(1) recognizing the symptoms described by Subsection
(c)(2)(D); and
(2) the risks of using supplements designed or
marketed to enhance athletic performance.
(e) The safety training program and the training under
Subsection (d) may each be conducted by a school or school district
or by an organization described by Subsection (c)(1).
(f) A physician who is employed by a school or school
district or who volunteers to assist with an extracurricular
athletic activity is exempt from the requirements of Subsection (b)
if the physician attends a continuing medical education course that
specifically addresses emergency medicine for athletic team
physicians.
Sec. 33.103. RECOMMENDATION RELATED TO HEART SCREENING.
The University Interscholastic League shall recommend that each
student participating in an extracurricular athletic activity
receive a heart screening.
Sec. 33.104. CERTAIN UNSAFE ATHLETIC ACTIVITIES
PROHIBITED. A coach, trainer, or sponsor for an extracurricular
athletic activity may not encourage or permit a student
participating in the activity to engage in any unreasonably
dangerous athletic technique that unnecessarily endangers the
health of a student, including using a helmet or any other sports
equipment as a weapon.
Sec. 33.105. CERTAIN SAFETY PRECAUTIONS REQUIRED. (a) A
coach, trainer, or sponsor for an extracurricular athletic activity
shall at each athletic practice or competition ensure that:
(1) each student participating in the activity is
permitted adequate access to water;
(2) any prescribed asthma medication for a student
participating in the activity is readily available to the student;
(3) if available at the school, a defibrillator is
readily accessible for use at the practice or competition;
(4) emergency lanes providing access to the practice
or competition area are open and clear; and
(5) heatstroke prevention materials are readily
available.
(b) A referee, umpire, or other official at an
extracurricular athletic competition may prohibit a student from
participating in the competition if:
(1) the official observes a violation of Subsection
(a); or
(2) the official determines that the removal would
likely prevent the death of or serious injury to the student.
(c) If a student participating in an extracurricular
athletic activity, including a practice or competition, is rendered
unconscious during the activity, the student may not:
(1) return to the practice or competition during which
the student was rendered unconscious; or
(2) continue to participate in any extracurricular
athletic activity until the student receives written authorization
from a physician.
Sec. 33.106. COMPLIANCE; ENFORCEMENT. (a) On request, a
school shall make available to the public proof of compliance for
each person enrolled in, employed by, or volunteering for the
school who is required to receive safety training described by
Section 33.102.
(b) The superintendent of a school district or the director
of a school subject to this subchapter shall maintain complete and
accurate records of the district's or school's compliance with
Section 33.102.
(c) A school campus that is determined by the school's
superintendent or director to be in noncompliance with Section
33.102, 33.104, or 33.105 shall discontinue all extracurricular
athletic activities offered by the school campus, including all
practices and competitions, until the superintendent or director
determines that the school campus is in compliance.
Sec. 33.107. CONTACT INFORMATION. (a) The commissioner
shall maintain an existing telephone number and an electronic mail
address to allow a person to report a violation of this subchapter.
(b) Each school that offers an extracurricular athletic
activity shall prominently display at the administrative offices of
the school the telephone number and electronic mail address
maintained under Subsection (a).
Sec. 33.108. UNIVERSITY INTERSCHOLASTIC LEAGUE MEDICAL
ADVISORY BOARD SUBCOMMITTEE. (a) The director of the University
Interscholastic League shall appoint a subcommittee from among the
membership of the league's medical advisory board. The director or
the director's designee shall serve as the subcommittee's presiding
officer.
(b) The subcommittee shall prepare a statement of the risks
of injury resulting from participation in extracurricular athletic
activities. The University Interscholastic League shall post the
text of the statement on the league's Internet website and provide
to each student participating in an extracurricular athletic
activity and to the student's parent or guardian a copy of the
statement.
Sec. 33.109. NOTICE REQUIRED. A school that offers an
extracurricular athletic activity shall provide to each student
participating in an extracurricular athletic activity and to the
student's parent or guardian a copy of the text of Sections
33.101-33.108.
Sec. 33.110. INCORPORATION OF SAFETY REGULATIONS. The
University Interscholastic League shall incorporate the provisions
of Sections 33.103-33.108 into the league's constitution and
contest rules.
SECTION 44.02. This article takes effect September 1, 2003,
and applies beginning with the 2004-2005 school year, except that
Sections 33.104 and 33.108, Education Code, as added by this
article, apply beginning with the 2003-2004 school year.
ARTICLE 45. ENVIRONMENT; PERMITS FOR CERTAIN CONCRETE PLANTS
SECTION 45.01. Section 382.05101, Health and Safety Code,
is amended to read as follows:
Sec. 382.05101. DE MINIMIS AIR CONTAMINANTS. The
commission may develop by rule the criteria to establish a de
minimis level of air contaminants for facilities or groups of
facilities below which a permit under Section 382.0518 or 382.0519,
a standard permit under Section 382.05195 or 382.05198, or a permit
by rule under Section 382.05196 is not required.
SECTION 45.02. Subsection (c), Section 382.0511, Health and
Safety Code, is amended to read as follows:
(c) The commission may authorize changes in a federal source
to proceed before the owner or operator obtains a federal operating
permit or revisions to a federal operating permit if:
(1) the changes are de minimis under Section
382.05101; or
(2) the owner or operator:
(A) has obtained a preconstruction permit or
permit amendment required by Section 382.0518; or
(B) is operating under:
(i) a standard permit under Section
382.05195 or 382.05198;
(ii) [,] a permit by rule under Section
382.05196;[,] or
(iii) an exemption allowed under Section
382.057.
SECTION 45.03. Subchapter C, Chapter 382, Health and Safety
Code, is amended by adding Sections 382.05198 and 382.05199 to read
as follows:
Sec. 382.05198. STANDARD PERMIT FOR CERTAIN CONCRETE
PLANTS. (a) The commission shall issue a standard permit for a
permanent concrete plant that performs wet batching, dry batching,
or central mixing and that meets the following requirements:
(1) production records must be maintained on site
while the plant is in operation until the second anniversary of the
end of the period to which they relate;
(2) each cement or fly ash storage silo and weigh
hopper must be equipped with a fabric or cartridge filter or vented
to a fabric or cartridge filter system;
(3) each fabric or cartridge filter, fabric or
cartridge filter system, and suction shroud must be maintained and
operated properly with no tears or leaks;
(4) excluding the suction shroud filter system, each
filter system must be designed to meet a standard of at least 0.01
outlet grain loading as measured in grains per dry standard cubic
foot;
(5) each filter system and each mixer loading and
batch truck loading emissions control device must meet a
performance standard of no visible emissions exceeding 30 seconds
in a five-minute period as determined using United States
Environmental Protection Agency Test Method 22 as that method
existed on September 1, 2003;
(6) if a cement or fly ash silo is filled during
nondaylight hours, the silo filter system exhaust must be
sufficiently illuminated to enable a determination of compliance
with the performance standard described by Subdivision (5);
(7) the conveying system for the transfer of cement or
fly ash to and from each storage silo must be totally enclosed,
operate properly, and be maintained without any tears or leaks;
(8) except during cement or fly ash tanker connection
or disconnection, each conveying system for the transfer of cement
or fly ash must meet the performance standard described by
Subdivision (5);
(9) a warning device must be installed on each bulk
storage silo to alert the operator in sufficient time for the
operator to stop loading operations before the silo is filled to a
level that may adversely affect the pollution abatement equipment;
(10) if filling a silo results in failure of the
pollution abatement system or failure to meet the performance
standard described by Subdivision (5), the failure must be
documented and reported to the commission;
(11) each road, parking lot, or other area at the plant
site that is used by vehicles must be paved with a cohesive hard
surface that is properly maintained, cleaned, and watered so as to
minimize dust emissions;
(12) each stockpile must be sprinkled with water or
dust-suppressant chemicals or covered so as to minimize dust
emissions;
(13) material used in the batch that is spilled must be
immediately cleaned up and contained or dampened so as to minimize
dust emissions;
(14) production of concrete at the plant must not
exceed 300 cubic yards per hour;
(15) a suction shroud or other pickup device must be
installed at the batch drop point or, in the case of a central mix
plant, at the drum feed and vented to a fabric or cartridge filter
system with a minimum capacity of 5,000 cubic feet per minute of
air;
(16) the bag filter and capture system must be
properly designed to accommodate the increased flow from the
suction shroud and achieve a control efficiency of at least 99.5
percent;
(17) the suction shroud baghouse exhaust must be
located more than 100 feet from any property line;
(18) stationary equipment, stockpiles, and vehicles
used at the plant, except for incidental traffic and vehicles as
they enter and exit the site, must be located or operated more than
100 feet from any property line; and
(19) the central baghouse must be located at least 440
yards from any building used as a single or multifamily residence,
school, or place of worship at the time the application to use the
permit is filed with the commission if the plant is located in:
(A) an area that is not subject to municipal
zoning regulations; and
(B) a county with a population of at least one
million.
(b) Notwithstanding Subsection (a)(18), the commission
shall issue a standard permit for a permanent concrete plant that
performs wet batching, dry batching, or central mixing and does not
meet the requirements of that subdivision if the plant meets the
other requirements of Subsection (a) and:
(1) each road, parking lot, and other traffic area
located within the distance of a property line provided by
Subsection (a)(18) is bordered by dust-suppressing fencing or
another barrier at least 12 feet high; and
(2) each stockpile located within the applicable
distance of a property line is contained within a three-walled
bunker that extends at least two feet above the top of the
stockpile.
Sec. 382.05199. STANDARD PERMIT FOR CERTAIN CONCRETE BATCH
PLANTS: NOTICE AND HEARING. (a) A person may not begin
construction of a permanent concrete plant that performs wet
batching, dry batching, or central mixing under a standard permit
issued under Section 382.05198 unless the commission authorizes the
person to use the permit as provided by this section. The notice
and hearing requirements of Subsections (b)-(g) apply only to an
applicant for authorization to use a standard permit issued under
Section 382.05198. An applicant for a permit for a concrete plant
that does not meet the requirements of a standard permit issued
under Section 382.05198 must comply with:
(1) Section 382.058 to obtain authorization to use a
standard permit issued under Section 382.05195 or a permit by rule
adopted under Section 382.05196; or
(2) Section 382.056 to obtain a permit issued under
Section 382.0518.
(b) An applicant for an authorization to use a standard
permit under Section 382.05198 must publish notice under this
section not later than the earlier of:
(1) the 30th day after the date the applicant receives
written notice from the executive director that the application is
technically complete; or
(2) the 75th day after the date the executive director
receives the application.
(c) The applicant must publish notice at least once in a
newspaper of general circulation in the municipality in which the
plant is proposed to be located or in the municipality nearest to
the proposed location of the plant. If the elementary or middle
school nearest to the proposed plant provides a bilingual education
program as required by Subchapter B, Chapter 29, Education Code,
the applicant must also publish the notice at least once in an
additional publication of general circulation in the municipality
or county in which the plant is proposed to be located that is
published in the language taught in the bilingual education
program. This requirement is waived if such a publication does not
exist or if the publisher refuses to publish the notice.
(d) The notice must include:
(1) a brief description of the proposed location and
nature of the proposed plant;
(2) a description, including a telephone number, of
the manner in which the executive director may be contacted for
further information;
(3) a description, including a telephone number, of
the manner in which the applicant may be contacted for further
information;
(4) the location and hours of operation of the
commission's regional office at which a copy of the application is
available for review and copying; and
(5) a brief description of the public comment process,
including the time and location of the public hearing, and the
mailing address and deadline for filing written comments.
(e) The public comment period begins on the first date
notice is published under Subsection (b) and extends to the close of
the public hearing.
(f) Section 382.056 of this code and Chapter 2001,
Government Code, do not apply to a public hearing held under this
section. A public hearing held under this section is not an
evidentiary proceeding. Any person may submit an oral or written
statement concerning the application at the public hearing. The
applicant may set reasonable limits on the time allowed for oral
statements at the public hearing.
(g) The applicant, in cooperation with the executive
director, must hold the public hearing not less than 30 days and not
more than 45 days after the first date notice is published under
Subsection (b). The public hearing must be held in the county in
which the plant is proposed to be located.
(h) Not later than the 35th day after the date the public
hearing is held, the executive director shall approve or deny the
application for authorization to use the standard permit. The
executive director shall base the decision on whether the
application meets the requirements of Section 382.05198. The
executive director shall consider all comments received during the
public comment period and at the public hearing in determining
whether to approve the application. If the executive director
denies the application, the executive director shall state the
reasons for the denial and any modifications to the application
that are necessary for the proposed plant to qualify for the
authorization.
(i) The executive director shall issue a written response to
any public comments received related to the issuance of an
authorization to use the standard permit at the same time as or as
soon as practicable after the executive director grants or denies
the application. Issuance of the response after the granting or
denial of the application does not affect the validity of the
executive director's decision to grant or deny the application.
The executive director shall:
(1) mail the response to each person who filed a
comment; and
(2) make the response available to the public.
ARTICLE 46. TEXAS DEPARTMENT OF MENTAL HEALTH AND
MENTAL RETARDATION; VOLUNTARY ADMISSION TO
STATE SCHOOL
SECTION 46.01. Subchapter B, Chapter 593, Health and Safety
Code, is amended by adding Section 593.0225 to read as follows:
Sec. 593.0225. CRITERIA FOR VOLUNTARY ADMISSION; WAITING
LIST. (a) The board by rule shall provide that a state school
shall admit any adult person with mental retardation for whom an
application for voluntary admission is filed if:
(1) the state school has funded bed space for the
person to be admitted for care; and
(2) the state school would provide the least
restrictive environment appropriate to the person's care.
(b) Each state school shall maintain a waiting list of
persons who desire voluntary admission to a state school and who
were denied admission because of lack of bed space.
(c) The department shall ensure that persons seeking state
services for a person with mental retardation are informed of the
criteria established in rules adopted under Subsection (a), of the
waiting list required by Subsection (b), and of the addresses and
telephone numbers of each state school.
(d) The board may adopt rules to facilitate the application
process for voluntary admission to a state school, the maintenance
of the waiting list required by Subsection (b), and the provision of
information as required by Subsection (c).
SECTION 46.02. The Texas Department of Mental Health and
Mental Retardation shall ensure that persons on a waiting list
maintained by a mental retardation authority for admission to a
state school are informed of:
(1) criteria established in rules adopted under
Section 593.0225, Health and Safety Code, as added by this
article;
(2) the waiting lists required by that section; and
(3) the address and telephone number of each state
school.
SECTION 46.03. This article applies to an application for
voluntary admission filed on or after September 1, 2003. An
application for voluntary admission filed before that date is
governed by the law in effect on the date the application was filed,
and that law is continued in effect for that purpose.
ARTICLE 47. PREVENTING AND DETECTING IDENTITY THEFT
SECTION 47.01. Section 20.01, Business & Commerce Code, is
amended by adding Subdivisions (7) and (8) to read as follows:
(7) "Security alert" means a notice placed on a
consumer file that alerts a recipient of a consumer report
involving that consumer file that the consumer's identity may have
been used without the consumer's consent to fraudulently obtain
goods or services in the consumer's name.
(8) "Security freeze" means a notice placed on a
consumer file that prohibits a consumer reporting agency from
releasing a consumer report involving that consumer file without
the express authorization of the consumer.
SECTION 47.02. Section 20.03, Business & Commerce Code, is
amended by adding Subsection (d) to read as follows:
(d) Any written disclosure to a consumer by a consumer
reporting agency under this chapter must include a written
statement that explains in clear and simple language the consumer's
rights under this chapter and includes:
(1) the process for receiving a consumer report or
consumer file;
(2) the process for requesting or removing a security
alert or freeze;
(3) the toll-free telephone number for requesting a
security alert;
(4) applicable fees;
(5) dispute procedures;
(6) the process for correcting a consumer file or
report; and
(7) information on a consumer's right to bring an
action in court or arbitrate a dispute.
SECTION 47.03. Chapter 20, Business & Commerce Code, is
amended by adding Sections 20.031 through 20.038 to read as
follows:
Sec. 20.031. REQUESTING SECURITY ALERT. On a request in
writing or by telephone and with proper identification provided by
a consumer, a consumer reporting agency shall place a security
alert on the consumer's consumer file not later than 24 hours after
the date the agency receives the request. The security alert must
remain in effect for not less than 90 days after the date the agency
places the security alert on the file. There is no limit on the
number of security alerts a consumer may request. At the end of a
90-day security alert, on request in writing or by telephone and
with proper identification provided by the consumer, the agency
shall provide the consumer with a copy of the consumer's file. A
consumer may include with the security alert request a telephone
number to be used by persons to verify the consumer's identity
before entering into a transaction with the consumer.
Sec. 20.032. NOTIFICATION OF SECURITY ALERT. A consumer
reporting agency shall notify a person who requests a consumer
report if a security alert is in effect for the consumer file
involved in that report and include a verification telephone number
for the consumer if the consumer has provided a number under Section
20.031.
Sec. 20.033. TOLL-FREE SECURITY ALERT REQUEST NUMBER. A
consumer reporting agency shall maintain a toll-free telephone
number that is answered at all times to accept security alert
requests from consumers.
Sec. 20.034. REQUESTING SECURITY FREEZE. (a) On written
request sent by certified mail that includes proper identification
provided by a consumer, a consumer reporting agency shall place a
security freeze on a consumer's consumer file not later than the
fifth business day after the date the agency receives the request.
(b) On written request for a security freeze provided by a
consumer under Subsection (a), a consumer reporting agency shall
disclose to the consumer the process of placing, removing, and
temporarily lifting a security freeze and the process for allowing
access to information from the consumer's consumer file for a
specific requestor or period while the security freeze is in
effect.
(c) A consumer reporting agency shall, not later than the
10th business day after the date the agency receives the request for
a security freeze:
(1) send a written confirmation of the security freeze
to the consumer; and
(2) provide the consumer with a unique personal
identification number or password to be used by the consumer to
authorize a removal or temporary lifting of the security freeze
under Section 20.037.
Sec. 20.035. NOTIFICATION OF CHANGE. If a security freeze
is in place, a consumer reporting agency shall notify the consumer
in writing of a change in the consumer file to the consumer's name,
date of birth, social security number, or address not later than 30
calendar days after the date the change is made. The agency shall
send notification of a change of address to the new address and
former address. This section does not require notice of an
immaterial change, including a street abbreviation change or
correction of a transposition of letters or misspelling of a word.
Sec. 20.036. NOTIFICATION OF SECURITY FREEZE. A consumer
reporting agency shall notify a person who requests a consumer
report if a security freeze is in effect for the consumer file
involved in that report.
Sec. 20.037. REMOVAL OR TEMPORARY LIFTING OF SECURITY
FREEZE. (a) On a request in writing or by telephone and with
proper identification provided by a consumer, including the
consumer's personal identification number or password provided
under Section 20.034, a consumer reporting agency shall remove a
security freeze not later than the third business day after the date
the agency receives the request.
(b) On a request in writing or by telephone and with proper
identification provided by a consumer, including the consumer's
personal identification number or password provided under Section
20.034, a consumer reporting agency, not later than the third
business day after the date the agency receives the request, shall
temporarily lift the security freeze for:
(1) a certain properly designated period; or
(2) a certain properly identified requestor.
(c) A consumer reporting agency may develop procedures
involving the use of a telephone, a facsimile machine, the
Internet, or another electronic medium to receive and process a
request from a consumer under this section.
(d) A consumer reporting agency shall remove a security
freeze placed on a consumer file if the security freeze was placed
due to a material misrepresentation of fact by the consumer. The
consumer reporting agency shall notify the consumer in writing
before removing the security freeze under this subsection.
Sec. 20.038. EXEMPTION FROM SECURITY FREEZE. A security
freeze does not apply to a consumer report provided to:
(1) a state or local governmental entity, including a
law enforcement agency or court or private collection agency, if
the entity, agency, or court is acting under a court order, warrant,
subpoena, or administrative subpoena;
(2) a child support agency as defined by Section
101.004, Family Code, acting to investigate or collect child
support payments or acting under Title IV-D of the Social Security
Act (42 U.S.C. Section 651 et seq.);
(3) the Health and Human Services Commission acting
under Section 531.102, Government Code;
(4) the comptroller acting to investigate or collect
delinquent sales or franchise taxes;
(5) a tax assessor-collector acting to investigate or
collect delinquent ad valorem taxes;
(6) a person for the purposes of prescreening as
provided by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et
seq.);
(7) a person with whom the consumer has an account or
contract or to whom the consumer has issued a negotiable
instrument, or the person's subsidiary, affiliate, agent,
assignee, or prospective assignee, for purposes related to that
account, contract, or instrument;
(8) a subsidiary, affiliate, agent, assignee, or
prospective assignee of a person to whom access has been granted
under Section 20.037(b);
(9) a person who administers a credit file monitoring
subscription service to which the consumer has subscribed; or
(10) a person for the purpose of providing a consumer
with a copy of the consumer's report on the consumer's request.
SECTION 47.04. Section 20.04, Business & Commerce Code, is
amended to read as follows:
Sec. 20.04. CHARGES FOR CERTAIN DISCLOSURES OR
SERVICES. (a) Except as provided by Subsection (b), a consumer
reporting agency may impose a reasonable charge on a consumer for
the disclosure of information pertaining to the consumer or for
placing a security freeze on a consumer file. The amount of the
charge may not exceed $8. On January 1 of each year, a consumer
reporting agency may increase the charge for disclosure to a
consumer or for placing a security freeze. The increase, if any,
must be based proportionally on changes to the Consumer Price Index
for All Urban Consumers as determined by the United States
Department of Labor with fractional changes rounded to the nearest
50 cents.
(b) A consumer reporting agency may not charge a fee for:
(1) a request by a consumer for a copy of the
consumer's file:
(A) made not later than the 60th day after the
date on which adverse action is taken against the consumer; or
(B) made on the expiration of the 90-day security
alert;
(2) notification of the deletion of information that
is found to be inaccurate or can no longer be verified sent to a
person designated by the consumer, as prescribed by Section 611 of
the Fair Credit Reporting Act (15 U.S.C. Section 1681i), as
amended;
(3) a set of instructions for understanding the
information presented on the consumer report; [or]
(4) a toll-free telephone number that consumers may
call to obtain additional assistance concerning the consumer report
or to request a security alert;
(5) a request for a security freeze made by a consumer
who has submitted to the consumer reporting agency a copy of a valid
police report, investigative report, or complaint made under
Section 32.51, Penal Code; or
(6) a request for a security alert made by a consumer.
SECTION 47.05. Chapter 20, Business & Commerce Code, is
amended by adding Sections 20.11 and 20.12 to read as follows:
Sec. 20.11. INJUNCTIVE RELIEF; CIVIL PENALTY. (a) The
attorney general may file a suit against a person for:
(1) injunctive relief to prevent or restrain a
violation of this chapter; or
(2) a civil penalty in an amount not to exceed $2,000
for each violation of this chapter.
(b) If the attorney general brings an action against a
person under Subsection (a) and an injunction is granted against
the person or the person is found liable for a civil penalty, the
attorney general may recover reasonable expenses, court costs,
investigative costs, and attorney's fees.
(c) Each day a violation continues or occurs is a separate
violation for purposes of imposing a penalty under this section.
Sec. 20.12. DECEPTIVE TRADE PRACTICE. A violation of this
chapter is a false, misleading, or deceptive act or practice under
Subchapter E, Chapter 17.
SECTION 47.06. Subchapter D, Chapter 35, Business &
Commerce Code, is amended by adding Section 35.58 to read as
follows:
Sec. 35.58. CONFIDENTIALITY OF SOCIAL SECURITY
NUMBER. (a) A person, other than government or a governmental
subdivision or agency, may not:
(1) intentionally communicate or otherwise make
available to the public an individual's social security number;
(2) display an individual's social security number on
a card or other device required to access a product or service
provided by the person;
(3) require an individual to transmit the individual's
social security number over the Internet unless the connection with
the Internet is secure or the number is encrypted;
(4) require an individual's social security number for
access to an Internet website, unless a password or unique personal
identification number or other authentication device is also
required for access; or
(5) print an individual's social security number on
any materials, other than a form or application, that are sent by
mail, unless state or federal law requires that the individual's
social security number be included in the materials.
(b) A person that is using an individual's social security
number before January 1, 2004, in a manner prohibited by Subsection
(a) may continue that use if:
(1) the use is continuous; and
(2) the person provides annual disclosure to the
individual stating that on written request from the individual the
person will cease to use the individual's social security number in
a manner prohibited by Subsection (a).
(c) A person, other than government or a governmental
subdivision or agency, may not deny services to an individual
because the individual makes a written request under Subsection
(b).
(d) This section does not apply to:
(1) the collection, use, or release of a social
security number that is required by state or federal law, including
Chapter 552, Government Code; or
(2) the use of a social security number for internal
verification or administrative purposes.
SECTION 47.07. Subchapter D, Chapter 35, Business &
Commerce Code, is amended by adding Section 35.59 to read as
follows:
Sec. 35.59. VERIFICATION OF CONSUMER IDENTITY. (a) In
this section:
(1) "Consumer report" has the meaning assigned by
Section 20.01.
(2) "Extension of credit" does not include an increase
in the dollar limit of an existing open-end credit plan as defined
by Regulation Z (12 C.F.R. Section 226.2), as amended, or any change
to, or review of, an existing credit account.
(3) "Security alert" has the meaning assigned by
Section 20.01.
(b) A person who receives notification of a security alert
under Section 20.032 in connection with a request for a consumer
report for the approval of a credit-based application, including an
application for an extension of credit, a purchase, lease, or
rental agreement for goods, or for an application for a
noncredit-related service, may not lend money, extend credit, or
authorize an application without taking reasonable steps to verify
the consumer's identity.
(c) If a consumer has included with a security alert a
specified telephone number to be used for identity verification
purposes, a person who receives that number with a security alert
must take reasonable steps to contact the consumer using that
number before lending money, extending credit, or completing any
purchase, lease, or rental of goods, or approving any
noncredit-related services.
(d) If a person uses a consumer report to facilitate the
extension of credit or for any other transaction on behalf of a
subsidiary, affiliate, agent, assignee, or prospective assignee,
that person, rather than the subsidiary, affiliate, agent,
assignee, or prospective assignee, may verify the consumer's
identity.
SECTION 47.08. (a) Except as provided by Subsection (b) of
this section, this article takes effect September 1, 2003.
(b) Section 35.58, Business & Commerce Code, as added by
this article, takes effect January 1, 2004.
ARTICLE 48. LICENSE PLATES
SECTION 48.01. Subchapter A, Chapter 502, Transportation
Code, is amended by adding Section 502.010 to read as follows:
Sec. 502.010. ISSUANCE AND DISPLAY OF LICENSE PLATE FOR
CERTAIN VEHICLES. (a) This section applies only to a vehicle that
is owned by this state or a political subdivision of this state,
other than a law enforcement vehicle that:
(1) is registered under Section 502.206; or
(2) is not registered under Section 502.206, but is
intended for use in covert criminal investigations, as designated
in the application for registration.
(b) Notwithstanding anything in this chapter to the
contrary, including Section 502.180, the department shall issue
only one license plate for attachment at the rear of a vehicle to
which this section applies.
(c) Notwithstanding anything in this chapter to the
contrary, including Section 502.404(a), a person is entitled to
operate on a public highway a vehicle to which this section applies
that displays only one license plate if the plate is attached at the
rear of the vehicle.
(d) In any provision of this chapter that relates to the
issuance or display of "license plates," "plates," or a "set of
plates," for a vehicle to which this section applies, the term means
only one license plate.
ARTICLE 49. RESTRICTIONS ON CERTAIN LANDFILL PERMITS
SECTION 49.01. Section 361.122, Health and Safety Code, is
amended to read as follows:
Sec. 361.122. DENIAL OF CERTAIN LANDFILL PERMITS. (a) The
commission may not issue a permit for a Type IV landfill if:
(1) the proposed site is located within 100 feet of a
canal that is used as a public drinking water source or for
irrigation of crops used for human or animal consumption;
(2) the proposed site is located in a county with a
population of more than 225,000 that is located adjacent to the Gulf
of Mexico; and
(3) prior to final consideration of the application by
the commission, the commissioners of the county in which the
facility is located have adopted a resolution recommending denial
of the application.
(b) In addition to the restriction on the location of a Type
IV landfill under Subsection (a), the commission may not issue a
permit for a Type IV landfill if, on or before January 13, 2003, the
proposed facility was determined by the applicable regional
planning commission created under Chapter 391, Local Government
Code, to be incompatible with a regional solid waste management
plan adopted under Section 363.062.
ARTICLE 50. LIQUID WASTES MANIFESTS
SECTION 50.01. Subchapter B, Chapter 361, Health and Safety
Code, is amended by adding Section 361.034 to read as follows:
Sec. 361.034. RECORDS AND MANIFESTS REQUIRED FOR CERTAIN
LIQUID WASTES. (a) The commission by rule shall require a person
who generates, collects, conveys, transports, processes, stores,
or disposes of sewage sludge, water treatment sludge, domestic
septage, chemical toilet waste, grit trap waste, or grease trap
waste to keep records and use a uniform manifest as prescribed by
commission rule to ensure that the waste is transported to an
appropriate processing, storage, or disposal facility or site
permitted or authorized for that purpose.
(b) The rules must require the person who generates the
waste, the person who transports the waste, and the person who
disposes of the waste each to retain, for not less than three years,
a copy of a transportation manifest that records the generator,
transporter, and disposal site and method.
(c) The rules must require that aggregate amounts of waste
recorded on the manifests required under this section match the
amounts of waste reported to the commission annually. The
commission may require copies of manifests to be submitted with
reports to the commission or at other times.
SECTION 50.02. The Texas Commission on Environmental
Quality shall adopt rules under Section 361.034, Health and Safety
Code, as added by this article, as soon as practicable so that the
rules take effect not later than March 1, 2004.
SECTION 50.03. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect September 1, 2003.
ARTICLE 51. EMINENT DOMAIN JURISDICTION FOR CERTAIN CIVIL COURTS
AT LAW
SECTION 51.01. Section 25.1032, Government Code, is amended
by adding Subsection (m) to read as follows:
(m) Notwithstanding any other provision, a county civil
court at law has concurrent jurisdiction with the district court in
Harris County of eminent domain proceedings, both statutory and
inverse, regardless of the amount in controversy.
ARTICLE 52. TEXASNEXTSTEP GRANT PROGRAM
SECTION 52.01. Chapter 56, Education Code, is amended by
adding Subchapter R to read as follows:
SUBCHAPTER R. TEXASNEXTSTEP GRANT PROGRAM
Sec. 56.481. DEFINITIONS. In this subchapter:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "Eligible institution" means:
(A) a public junior college;
(B) a public technical institute; or
(C) a public state college.
(3) "Institution of higher education," "public junior
college," "public technical institute," and "public state college"
have the meanings assigned by Section 61.003.
(4) "Textbook costs" means the costs of textbooks and
similar educational materials required for course work at an
eligible institution.
Sec. 56.482. PROGRAM NAME; PURPOSE. (a) The student
financial assistance program authorized by this subchapter is known
as the TexasNextStep grant program, and an individual grant awarded
under this subchapter is known as a TexasNextStep grant.
(b) The purpose of this subchapter is to provide a grant of
money to enable eligible students to attend two-year public
institutions of higher education in this state.
Sec. 56.483. ADMINISTRATION OF PROGRAM. (a) The
coordinating board shall administer the TexasNextStep grant
program and shall adopt any rules necessary to implement the
TexasNextStep grant program or this subchapter. The coordinating
board shall consult with the student financial aid officers of
eligible institutions in developing the rules.
(b) The coordinating board shall adopt rules to provide a
TexasNextStep grant to an eligible student enrolled in an eligible
institution in a manner consistent with the administration of
federal student financial aid programs.
(c) The total amount of grants awarded under the
TexasNextStep grant program may not exceed the amount available for
the program from appropriations, gifts, grants, or other funds.
(d) In determining who should receive a TexasNextStep
grant, the coordinating board and the eligible institutions shall
give highest priority to awarding TexasNextStep grants to students
who demonstrate the greatest financial need.
Sec. 56.484. INITIAL ELIGIBILITY FOR GRANT. (a) To be
eligible initially for a grant under the TexasNextStep grant
program, a person must:
(1) be a resident of this state as determined by
coordinating board rules;
(2) meet financial need requirements as defined by the
coordinating board;
(3) not later than the 16th month after the month in
which the person graduated from high school, enroll or have
enrolled as an entering student for at least one-half of a full
course load for an entering student, as determined by the
coordinating board, in an associate degree or certificate program
at an eligible institution;
(4) have graduated from:
(A) a public high school in this state; or
(B) an accredited private high school or a home
school or other nontraditional educational program in this state;
(5) have applied for any available financial aid or
assistance;
(6) meet eligibility requirements necessary to
receive federal student financial aid, other than requirements
regarding financial need; and
(7) comply with any additional nonacademic
requirement adopted by the coordinating board under this
subchapter.
(b) A person is not eligible to receive a TexasNextStep
grant if the person:
(1) has been granted an associate or baccalaureate
degree; or
(2) is concurrently enrolled in an institution of
higher education other than an eligible institution, unless the
person is enrolled in the person's final semester or term at the
eligible institution before completing the person's associate
degree or certificate program and the person enrolls in one or more
courses that, if successfully completed, would allow the person to
complete the degree or certificate requirements.
(c) A person may not receive a TexasNextStep grant for more
than 90 semester credit hours or the equivalent, including any
developmental course work required by an eligible institution.
(d) Subject to Section 56.457(b)(2), a person may receive a
TexasNextStep grant regardless of whether the person is eligible
for a TEXAS grant or a TEXAS grant II.
(e) A person may not receive a TexasNextStep grant for a
semester or term that begins on or after the third anniversary of
the initial award of a TexasNextStep grant to the person.
Sec. 56.485. CONTINUING ELIGIBILITY AND ACADEMIC
PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a
TexasNextStep grant, a person may continue to receive a
TexasNextStep grant during each semester or term in which the
person is enrolled at an eligible institution only if the person:
(1) meets financial need requirements as defined by
the coordinating board;
(2) is enrolled in an associate degree or certificate
program at an eligible institution;
(3) except as provided by Subsection (b), is enrolled
for at least one-half of a full course load for a student in an
associate degree or certificate program, as determined by the
coordinating board;
(4) makes satisfactory academic progress toward an
associate degree or certificate;
(5) meets eligibility requirements necessary to
receive federal student financial aid, other than requirements
regarding financial need; and
(6) complies with any additional nonacademic
requirement adopted by the coordinating board.
(b) A person is exempt from the one-half course load
requirement of Subsection (a)(3) if the TexasNextStep grant is
awarded for the person's final semester or term before the person
completes the person's degree or certificate program and the person
enrolls in one or more courses that, if successfully completed,
would allow the person to complete the degree or certificate
requirements. A person who qualifies for an exemption under this
subsection is not eligible for a TexasNextStep grant in a
subsequent semester or term, regardless of whether the person
graduates as planned.
(c) If a person fails to meet any of the requirements of
Subsection (a) after the completion of any semester or term, the
person may not receive a TexasNextStep grant during the next
semester or term in which the person enrolls. A person may become
eligible to receive a TexasNextStep grant in a subsequent semester
or term if the person:
(1) completes a semester or term during which the
person is not eligible for the grant; and
(2) meets all the requirements of Subsection (a).
(d) For purposes of this section, a person makes
satisfactory academic progress toward an associate degree or
certificate only if the person meets the standards for academic
progress as determined by the eligible institution.
(e) A person's eligibility to receive a TexasNextStep grant
is not affected by the person's enrollment in or transfer to another
eligible institution.
Sec. 56.486. GRANT USE. A person receiving a TexasNextStep
grant may use the money to pay any usual and customary cost of
attendance at an eligible institution incurred by the person. The
institution may disburse all or part of the proceeds of a
TexasNextStep grant to an eligible person only if the tuition and
required fees and textbook costs incurred by the person at the
institution have been paid.
Sec. 56.487. GRANT AMOUNT. (a) The amount of a
TexasNextStep grant for a student enrolled full-time at an eligible
institution is the amount determined by the coordinating board as
the average amount of tuition and required fees and textbook costs
that a resident student enrolled full-time in an associate degree
or certificate program would be charged for that semester or term at
the institution, except that if the eligible institution is a
public junior college, the average amount of those charges shall be
computed without including the portion of tuition and required fees
charged only to a student who resides outside the junior college
district.
(b) The coordinating board shall adopt rules that:
(1) allow the coordinating board to increase or
decrease, in proportion to the number of semester credit hours in
which a student is enrolled, the amount of a TexasNextStep grant
award under this section to a student who is enrolled in a number of
semester credit hours in excess of or below the number of semester
credit hours described in Section 56.484(a)(3) or 56.485(a)(3); and
(2) require the coordinating board to reduce the
amount of a TexasNextStep grant by the amount of any state or
federal gift aid for which the person receiving the grant is
eligible if that aid could be applied, according to the terms of the
aid, toward the person's tuition and required fees and textbook
costs at the eligible institution.
(c) Not later than January 31 of each year, the coordinating
board shall publish the amounts of each grant established by the
board with respect to an eligible institution for the academic year
beginning the next fall semester.
(d) An eligible institution may not:
(1) charge a person attending the institution who also
receives a TexasNextStep grant an amount of tuition and required
fees in excess of the amount of the TexasNextStep grant received by
the person for tuition and required fees, except that if the
eligible institution is a public junior college, the institution
may charge an additional amount to the person based on the person's
residence outside the junior college district; or
(2) deny admission to or enrollment in the institution
based on a person's eligibility to receive a TexasNextStep grant or
a person's receipt of a TexasNextStep grant.
Sec. 56.488. BIENNIAL REPORT. The coordinating board shall
track the academic performance and subsequent educational
attainment of grant recipients, by institution, and report this
information biennially to the legislature and the comptroller.
Sec. 56.489. APPROPRIATIONS. This subchapter may not be
implemented and grants may not be awarded under this subchapter in
any state fiscal year unless the legislature appropriates money to
fully fund the TEXAS grant program under Subchapter M, as added by
Chapter 1590, Acts of the 76th Legislature, Regular Session, 1999,
for that same fiscal year.
SECTION 52.02. (a) The change in law made by this article
in adding Subchapter R, Chapter 56, Education Code, applies
beginning with the 2004–2005 academic year, except that the Texas
Higher Education Coordinating Board may not award a TexasNextStep
grant under that subchapter to an entering student who enrolls in an
eligible institution before the 2005-2006 academic year.
(b) The Texas Higher Education Coordinating Board shall
adopt rules for the administration of Subchapter R, Chapter 56,
Education Code, as added by this article, as soon as practicable
after this article takes effect. For that purpose, the
coordinating board may adopt the initial rules in the manner
provided by law for emergency rules.
ARTICLE 53. TEXAS RACING COMMISSION
SECTION 53.01. Section 3.07, Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes) is amended by amending
Subsection (f) and adding Subsection (h) to read as follows:
(f) The association is responsible for the cost of approved
charges for [animal] drug testing services only for animals racing
at the association's racetrack [under this section]. The
commission shall adopt rules to allocate responsibility for the
costs of human drug testing of a licensee.
(h) The commission by rule may determine the expiration date
of outstanding tickets and pari-mutuel vouchers. Pari-mutuel
vouchers that expire may be used by an association to pay the
charges associated with medication or drug testing. If the amount
of the expired pari-mutuel vouchers held exceeds the amount needed
to pay the charges, the association shall pay the excess to the
commission for deposit in the general revenue fund.
SECTION 53.02. Article 6, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes) is amended by adding Section 6.20 to
read as follows:
Sec. 6.20. EXPEDITED LICENSE. (a) The commission shall
adopt rules providing for expedited licensing for appropriate
applications in which a person was previously licensed.
(b) An application filed under this section must be for the
same class of license under which the person previously operated.
The commission shall develop an expedited application form and
procedure for issuing licenses under this section. The commission
shall grant a license to an applicant under this section if the
commission determines:
(1) no grounds for denial of the license exist under
Section 6.06 of this Act; and
(2) the applicant will comply with all commission
rules.
(c) The commission shall waive any rule requiring an
application fee associated with the processing of an application
filed under this section, but may require reimbursement by the
applicant for costs charged to the commission by the Department of
Public Safety or the State Office of Administrative Hearings for a
background investigation or administrative proceedings required
for the application.
(d) A license issued under this section is subject to all
requirements in this Act or commission rule regarding the licensing
and operation of pari-mutuel racetracks.
ARTICLE 54. REGULATION OF BINGO
SECTION 54.01. Subdivision (5), Section 2001.002,
Occupations Code, is amended to read as follows:
(5) "Bingo equipment" means equipment used, made, or
sold for the purpose of use in bingo. The term:
(A) includes:
(i) a machine or other device from which
balls or other items are withdrawn to determine the letters and
numbers or other symbols to be called;
(ii) an electronic or mechanical
cardminding device;
(iii) a pull-tab dispenser;
(iv) a bingo card; [and]
(v) a bingo ball; and
(vi) any other device commonly used in the
direct operation of a bingo game; and
(B) does not include:
(i) a bingo game set commonly manufactured
and sold as a child's game for a retail price of $20 or less unless
the set or a part of the set is used in bingo subject to regulation
under this chapter; or
(ii) a commonly available component part of
bingo equipment such as a light bulb or[,] fuse[, or bingo ball].
SECTION 54.02. Subchapter B, Chapter 2001, Occupations
Code, is amended by adding Section 2001.059 to read as follows:
Sec. 2001.059. ADVISORY OPINIONS. (a) A person may
request from the commission an advisory opinion regarding
compliance with this chapter and the rules of the commission.
(b) The commission shall respond to a request under
Subsection (a) not later than the 60th day after the date a request
is received, unless the commission determines that the request does
not contain sufficient facts to provide an answer on which the
requestor may rely. In that event, the commission shall request
additional information from the requestor not later than the 10th
day after the date the request is received. If the commission
requests additional information, the commission shall respond to
the request not later than the 60th day after the date additional
information is received pursuant to the request for additional
information.
(c) A person who requests an advisory opinion under
Subsection (a) may act in reliance on the opinion in the conduct of
any activity under any license issued under this chapter if the
conduct is substantially consistent with the opinion and the facts
stated in the request.
(d) An advisory opinion issued under this section is not a
rule under Subchapter B, Chapter 2001, Government Code, and the
rulemaking requirements of that subchapter do not apply to a
request for an advisory opinion or any advisory opinion issued by
the commission.
(e) Nothing in this section precludes the commission from
requesting an attorney general opinion under Section 402.042,
Government Code. In the event the commission requests an attorney
general opinion on a matter that is the subject of an advisory
opinion request under this section, the deadlines established under
Subsection (b) are tolled until 30 days following the issuance of
the attorney general opinion.
(f) The commission may delegate all or part of the authority
and procedures for issuing advisory opinions under this section to
an employee of the commission.
SECTION 54.03. Section 2001.103, Occupations Code, is
amended by adding Subsections (e) through (h) to read as follows:
(e) Notwithstanding Subsection (c), an authorized
organization that holds a regular license to conduct bingo may
receive not more than 12 temporary licenses during the 12-month
period following the issuance or renewal of the license.
(f) An authorized organization that holds a regular license
to conduct bingo may apply for all or any portion of the total
number of temporary licenses to which the organization is entitled
under Subsection (e) in one application without stating the days or
times for which the organization will use the temporary licenses.
(g) An organization that has been issued a temporary license
under Subsection (f) shall notify the commission of the specific
date and time of the bingo occasion for which the temporary license
will be used before using the license. If the commission receives
the notification by noon of the day before the day the temporary
license will be used, the commission shall verify receipt of the
notice before the end of the business day on which the notice is
received. If the commission does not receive the notification by
noon of the day before the day the temporary license will be used,
the commission shall verify receipt of the notice before noon of the
business day that follows the day the commission received the
notice.
(h) A verification under Subsection (g) may be delivered by
facsimile, e-mail, or any other means reasonably contemplated to
arrive before the time the temporary license will be used.
SECTION 54.04. Section 2001.104, Occupations Code, is
amended by adding Subsection (d) to read as follows:
(d) An applicant shall pay the fees established under
Subsection (a) annually. An applicant for a license or renewal of a
license may obtain a license that is effective for two years by
paying an amount equal to two times the amount of the annual license
fee plus $25.
SECTION 54.05. Section 2001.105, Occupations Code, is
amended by adding Subsection (c) to read as follows:
(c) Except as provided by Section 2001.104(d), a license
issued under this subchapter is effective for one year.
SECTION 54.06. Subchapter C, Chapter 2001, Occupations
Code, is amended by adding Section 2001.108 to read as follows:
Sec. 2001.108. LICENSE AMENDMENT FOR CHANGE OF BINGO
PREMISES OR OCCASIONS. (a) A licensed authorized organization and
the licensed commercial lessor at which the organization conducts
or will conduct bingo may file a joint application with the
commission to change the premises at which the organization may
conduct bingo or the times of the organization's bingo occasions to
allow the organization to conduct bingo at the same time and
premises that another licensed authorized organization is licensed
to conduct bingo, if the other organization has ceased, or will
cease, conducting bingo at that time and premises. The application
must state whether the other organization has ceased or will cease
conducting bingo at that time and premises because:
(1) the organization has abandoned or will abandon its
licensed time or premises; or
(2) the organization's lease has been or will be
terminated.
(b) If the other organization ceased or will cease
conducting bingo for the reason stated in Subsection (a)(1), the
commission must act on the joint application filed under Subsection
(a) not later than the 10th day after the date the application is
filed with the commission.
(c) If the other organization ceased or will cease
conducting bingo for the reason stated in Subsection (a)(2), the
commission must act on the joint application filed under Subsection
(a) not later than the 10th day after the date the application is
filed with the commission or the date on which the termination takes
effect, whichever is later.
(d) If the commission fails to act within the time provided
by Subsection (b) or (c), the licensed authorized organization may
act as if the change in premises or bingo occasions has been
approved by the commission and may conduct bingo at the new premises
or during the new bingo occasion until the commission acts on the
application.
(e) Notwithstanding Subsection (d), the commission may
issue temporary licenses to one or more licensed authorized
organizations that conduct bingo at the same location as an
organization that has ceased or will cease to conduct bingo, which
are in addition to the number of temporary licenses each
organization is entitled to under another provision of this
chapter. The commission is not required to act on a joint
application under Subsection (a) within the time provided by this
section if the number of additional temporary licenses is
sufficient to allow the other organizations at the location to
conduct bingo during the licensed times of the organization that
has ceased or will cease to conduct bingo.
SECTION 54.07. Section 2001.152, Occupations Code, is
amended by adding Subsection (c) to read as follows:
(c) Notwithstanding Subsection (a), the commission may
issue a commercial lessor license under Subsection (a)(2) or (3)
only if there is not a licensed commercial lessor whose premises is
located in the county in which an applicant for a license under
Subsection (a)(2) or (3) proposes to locate a bingo premises. This
subsection does not prohibit the renewal of an existing license.
This subsection expires September 1, 2005.
SECTION 54.08. Section 2001.158, Occupations Code, is
amended by adding Subsection (d) to read as follows:
(d) An applicant for a commercial lessor license shall pay
the fees established under Subsection (a) annually. An applicant
for a license or renewal of a license may obtain a license that is
effective for two years by paying an amount equal to two times the
amount of the annual license fee plus $25.
SECTION 54.09. Subsection (c), Section 2001.159,
Occupations Code, is amended to read as follows:
(c) Except as provided by Section 2001.158(d), the [The]
period may not exceed one year.
SECTION 54.10. Section 2001.214, Occupations Code, is
amended to read as follows:
Sec. 2001.214. LICENSE TERM. (a) Except as provided by
Subsection (b), a [A] manufacturer's or distributor's license is
effective for one year unless revoked or suspended by the
commission.
(b) A manufacturer or distributor may obtain a license that
is effective for two years by paying an amount equal to two times
the amount of the annual license fee plus $1,000.
SECTION 54.11. Subsection (a), Section 2001.218,
Occupations Code, is amended to read as follows:
(a) Each sale or lease of bingo supplies or equipment to a
license holder under this chapter must be on terms of immediate
payment or on terms requiring payment not later than the 30th day
after the date of actual delivery.
SECTION 54.12. Section 2001.307, Occupations Code, is
amended to read as follows:
Sec. 2001.307. MAXIMUM LICENSE TERM. Except as otherwise
provided by this chapter, a [A] license issued under this chapter
may not be effective for more than one year.
SECTION 54.13. Subchapter G, Chapter 2001, Occupations
Code, is amended by adding Sections 2001.313 and 2001.314 to read as
follows:
Sec. 2001.313. REGISTRY OF APPROVED BINGO WORKERS. (a) To
minimize duplicate criminal history background checks by the
commission and the costs incurred by organizations and individuals,
the commission shall maintain a registry of persons on whom the
commission has conducted a criminal history background check and
who are approved to be involved in the conduct of bingo or to act as
a bingo operator.
(b) A person listed in the registry may be involved in the
conduct of bingo or act as an operator at any location at which
bingo is lawfully conducted.
(c) The commission shall make the registry information
available to the public by publishing it on the commission's
website and by responding to telephone, e-mail, and facsimile
requests. This subsection does not require the commission to
disclose information that is confidential by law.
(d) A person who is not listed on the registry established
by this section may not act as an operator, manager, cashier, usher,
caller, or sales person for a licensed authorized organization.
(e) The commission may refuse to add a person's name to, or
remove a person's name from, the registry established by this
section if, after notice and a hearing, the person is finally
determined to have:
(1) been convicted of an offense listed under Section
2001.105(b);
(2) converted bingo equipment in a premises to an
improper use;
(3) converted funds that are in, or that should have
been in, the bingo account of any licensed authorized organization;
(4) taken any action, individually or in concert with
another person, that affects the integrity of any bingo game to
which this chapter applies; or
(5) acted as an operator, manager, cashier, usher,
caller, or sales person for a licensed authorized organization
without being listed on the registry established under this
section.
(f) A licensed authorized organization shall report to the
commission or its designee the discovery of any conduct on the part
of a person registered or required to be registered under this
section where there is substantial basis for believing that the
conduct would constitute grounds for removal of the person's name
from, or refusal to add the person's name to, the registry
established by this section. A statement made in good faith to the
commission or to an adjudicative body in connection with any such
report may not be the basis for an action for defamation of
character.
(g) A person who has been finally determined to have taken
action prohibited by Subsection (e)(2), (3), (4), or (5) cannot be
listed on the registry of approved bingo workers and cannot work as
a bingo worker for one year from the date of such determination.
Upon expiration of the one year period, the person is eligible for
listing on the registry provided a licensee subject to this chapter
makes application to list the person. In such event, the commission
shall take into consideration the facts and circumstances that
occurred that lead to the applicable action under Subsection
(e)(2)-(5) in deciding whether to list the person on the registry.
Sec. 2001.314. IDENTIFICATION CARD FOR APPROVED BINGO
WORKER. (a) The commission may require a person listed in the
registry maintained under Section 2001.313 to wear an
identification card to identify the person to license holders,
bingo players, and commission staff while the person is on duty
during the conduct of bingo. The commission by rule shall prescribe
the form and content of the card.
(b) The commission shall provide the identification card
and shall provide a form to be completed by a person that allows the
person to prepare the identification card. The commission shall
collect a reasonable charge to cover the cost of providing the card
or form.
(c) An identification card required by the commission under
this section to be worn by a person while on duty during the conduct
of bingo must be in substantial compliance with the form and content
requirements prescribed by the commission under this section.
(d) The commission may not require any other person licensed
under this chapter, or a person acting on the license holder's
behalf, to wear an identification card, whether or not the person is
present or performing the person's duties during the conduct of
bingo.
SECTION 54.14. Section 2001.411, Occupations Code, is
amended by adding Subsection (e) to read as follows:
(e) The commission may not prohibit an operator responsible
for conducting, promoting, or administering bingo from acting as a
bingo caller for a licensed authorized organization during a bingo
occasion. This subsection does not relieve the operator of the duty
to be available to a commission employee or bingo player if required
by this chapter.
SECTION 54.15. Subchapter I, Chapter 2001, Occupations
Code, is amended by adding Section 2001.4115 to read as follows:
Sec. 2001.4115. JOINT EMPLOYMENT OF BINGO EMPLOYEES. Two
or more licensed authorized organizations conducting bingo at the
same premises may jointly hire bingo employees. One organization
may act as the employee's employer and the other organization may
reimburse the employing organization for the other organization's
share of the employee's compensation and other employment-related
costs. A reimbursement under this section is an authorized expense
and must be made from the bingo account of the reimbursing
organization.
SECTION 54.16. Section 2001.413, Occupations Code, is
amended to read as follows:
Sec. 2001.413. ADMISSION CHARGE REQUIRED. Except as
provided by Section 2001.4155, a [A] licensed authorized
organization may not offer or provide to a person the opportunity to
play bingo without charge.
SECTION 54.17. Section 2001.415, Occupations Code, is
amended to read as follows:
Sec. 2001.415. ADVERTISEMENTS. (a) A person other than a
licensed authorized organization, licensed commercial lessor, or
the commission may not advertise bingo.
(b) A licensed authorized organization, licensed commercial
lessor, or the commission may include in an advertisement or
promotion the amount of a prize or series of prizes offered at a
bingo occasion.
SECTION 54.18. Subchapter I, Chapter 2001, Occupations
Code, is amended by adding Section 2001.4155 to read as follows:
Sec. 2001.4155. GIFT CERTIFICATES. (a) Nothing in this
chapter prohibits a licensed authorized organization from selling
or redeeming a gift certificate that entitles the bearer of the
certificate to play a bingo game, including instant bingo.
(b) A licensed authorized organization that sells or
redeems a gift certificate must keep adequate records relating to
the gift certificate as provided by commission rule.
SECTION 54.19. Chapter 2001, Occupations Code, is amended
by adding Subchapter I-1 to read as follows:
SUBCHAPTER I-1. UNIT ACCOUNTING
Sec. 2001.431. DEFINITIONS. In this subchapter:
(1) "Unit" means two or more licensed authorized
organizations that conduct bingo at the same location joining
together to share revenues, authorized expenses, and inventory
related to bingo operations.
(2) "Unit accounting" means a method by which licensed
authorized organizations that are members of a unit account for the
sharing of revenues, authorized expenses, and inventory related to
bingo operations.
(3) "Unit accounting agreement" means a written
agreement by all the licensed authorized organizations that are
members of a unit that contains, at a minimum:
(A) the taxpayer name and number of each licensed
authorized organization that is a member of the unit;
(B) the method by which the net proceeds of the
bingo operations of the unit will be apportioned among the members
of the unit;
(C) the name of the unit manager or designated
agent of the unit; and
(D) the methods by which the unit may be
dissolved and by which one or more members of the unit may withdraw
from participation in the unit, including the distribution of
funds, records, and inventory and the allocation of authorized
expenses and liabilities on dissolution or withdrawal of one or
more members of the unit.
(4) "Unit manager" means an individual licensed under
this subchapter to be responsible for the revenues, authorized
expenses, and inventory of a unit.
Sec. 2001.432. FORMING ACCOUNTING UNIT. (a) Two or more
licensed authorized organizations may form and operate a unit as
provided by this subchapter by:
(1) executing a unit accounting agreement; and
(2) stating in the unit accounting agreement whether
the unit will use:
(A) a unit manager; or
(B) a designated agent.
(b) More than one unit may be formed at a single location. A
licensed authorized organization may not be a member of more than
one unit.
(c) This subchapter does not require a licensed authorized
organization to join a unit. Except as provided by Subsection (d),
whether to join or withdraw from a unit is at the discretion of each
licensed authorized organization.
(d) The members of a unit may determine whether to allow
another licensed authorized organization to join the unit. The
terms of the withdrawal of a member from the unit are governed by
the unit accounting agreement.
Sec. 2001.433. APPLICABILITY OF CHAPTER. A licensed
authorized organization that uses unit accounting is subject to the
other provisions of this chapter to the extent the provisions are
applicable and are not inconsistent with this subchapter.
Sec. 2001.434. CONDUCT OF BINGO. (a) Each licensed
authorized organization that is a member of a unit shall conduct its
bingo games separately from the bingo games of the other members of
the unit.
(b) A unit may purchase or lease bingo supplies and
equipment in the same manner as a licensed authorized organization.
(c) A licensed distributor may sell or lease bingo supplies
or equipment to a unit in the same manner as the distributor sells
or leases bingo supplies and equipment to a licensed authorized
organization.
Sec. 2001.435. UNIT ACCOUNTING. (a) A unit:
(1) shall establish and maintain one checking account
designated as the unit's bingo account;
(2) shall maintain one inventory of bingo supplies and
equipment for use in the bingo operations of members of the unit; and
(3) may maintain an interest-bearing savings account
designated as the unit's bingo savings account.
(b) Each member of a unit shall deposit into the unit's
bingo account all funds derived from the conduct of bingo, less the
amount awarded as cash prizes under Sections 2001.420(a) and (b).
The deposit shall be made not later than the next business day after
the day of the bingo occasion on which the receipts were obtained.
(c) All authorized expenses and distributions of the unit
and its members shall be paid from the unit's bingo checking
account.
Sec. 2001.436. DISBURSEMENT OF FUNDS BY DISSOLVED UNIT.
(a) Sections 2001.457(a) and (b) apply to a unit formed under this
subchapter. For purposes of this subchapter, the requirements of
Sections 2001.457(a) and (b) that are applicable to a licensed
authorized organization shall be applied to a unit.
(b) A unit that has dissolved for any reason and has
unexpended bingo funds shall disburse those funds to the bingo
account of each member of the unit before the end of the next
calendar quarter after the calendar quarter in which the unit
dissolves.
(c) For purposes of the application of Sections 2001.457(a)
and (b) to a unit under this section:
(1) "adjusted gross receipts" means gross receipts
less the amount of cost of goods purchased by a unit and prizes paid
in the preceding quarter; and
(2) "cost of goods purchased by a unit" means the cost
of bingo paper and pull-tab bingo tickets purchased by the unit and
payments to distributors for electronic card-minding devices.
Sec. 2001.437. UNIT MANAGER; LICENSE. (a) If the unit
accounting agreement of a unit states that a unit manager is
responsible for compliance with commission rules and this chapter,
the unit manager is responsible for:
(1) the filing of one quarterly report for the unit on
a form prescribed by the commission; and
(2) the payment of taxes and fees and the maintenance
of the bingo inventory and financial records of the unit.
(b) A unit with a unit manager shall notify the commission
of the name of the unit manager and immediately notify the
commission of any change of unit manager.
(c) A person may not provide services as a unit manager to
licensed authorized organizations that form a unit unless the
person holds a unit manager license under this subchapter. A person
designated as an agent under Section 2001.438(b) is not a unit
manager on account of that designation for purposes of this
section.
(d) An applicant for a unit manager license must file with
the commission a written application on a form prescribed by the
commission that includes:
(1) the name and address of the applicant;
(2) information regarding whether the applicant, or
any officer, director, or employee of the applicant, has been
convicted of a felony, criminal fraud, gambling or gambling-related
offense, or crime of moral turpitude; and
(3) any other information required by commission rule.
(e) The commission by rule shall establish an annual license
fee for a unit manager license in an amount reasonable to defray
administrative costs plus any costs incurred to conduct a criminal
background check.
(f) A person who holds a unit manager license shall post a
bond or other security pursuant to Section 2001.514.
(g) A person is not eligible for a unit manager license
under this subchapter if the person, or any officer, director, or
employee of the person:
(1) has been convicted of a felony, criminal fraud, a
gambling or gambling-related offense, or crime of moral turpitude,
if less than 10 years has elapsed since the termination of a
sentence, parole, or community supervision served for the offense;
(2) is an owner, officer, or director of a licensed
commercial lessor, is employed by a licensed commercial lessor, or
is related to a licensed commercial lessor within the second degree
by consanguinity or affinity, unless the holder of the license is a
licensed authorized organization or an association of licensed
authorized organizations; or
(3) holds or is listed on another license under this
chapter, unless the holder of the license is a licensed authorized
organization or an association of licensed authorized
organizations.
(h) A unit manager must complete the training required by
Section 2001.107.
Sec. 2001.438. AGREEMENT WITHOUT UNIT MANAGER. (a) This
section applies to a unit if the unit accounting agreement for the
unit:
(1) does not state that a unit manager will be
responsible for compliance with the rules of the commission and
this chapter; or
(2) states that the unit will use a designated agent.
(b) The unit shall designate with the commission an agent
who will be responsible for providing the commission access to all
inventory and financial records of the unit on request of the
commission.
(c) The agent designated under Subsection (b) may not:
(1) hold or be listed on another license issued under
this chapter, unless the holder of the license is a licensed
authorized organization or an association of licensed authorized
organizations; or
(2) be an owner, officer, or director of a licensed
commercial lessor, be employed by a licensed commercial lessor, or
be related to a licensed commercial lessor within the second degree
by consanguinity or affinity, unless the holder of the license is a
licensed authorized organization or an association of licensed
authorized organizations.
(d) The unit shall immediately notify the commission of any
change in the agent designated under Subsection (b).
(e) The designated agent must complete the training
required by Section 2001.107.
(f) Each licensed authorized organization that is a member
of the unit shall be jointly and severally liable for:
(1) compliance with the requirements of this
subchapter and the rules of the commission relating to the filing of
required reports;
(2) the maintenance of bingo inventory and financial
records; and
(3) the payment of taxes, fees, and any penalties
imposed for a violation of this subchapter or commission rules
related to the operations of the unit.
(g) Each licensed authorized organization that is a member
of the unit may be made a party to any administrative or judicial
action relating to the enforcement of this subchapter or the rules
of the commission pertaining to the operation of the unit.
Sec. 2001.439. TRUST AGREEMENT. (a) Notwithstanding any
other provision of this subchapter, a unit may be formed pursuant to
a trust agreement between two or more licensed authorized
organizations that conduct bingo at the same location. The
agreement must:
(1) designate one of the organizations as the trustee;
(2) designate a person who will carry out the duties
described by Section 2001.438(b);
(3) specify the method by which the unit will comply
with the requirements of Section 2001.436(a); and
(4) state that the trustee is responsible for
compliance with the rules of the commission and this chapter.
(b) The commission by rule may prohibit a person from
serving as a unit manager or as a designated agent for a unit that
does not use a unit manager if the person has failed to comply with
the duties required of the person as a unit manager or designated
agent.
(c) The commission may prohibit a person who serves as a
designated agent that is listed on a license under this chapter,
including having been approved by the commission to work in the
bingo operations of a licensed authorized organization or as an
operator, from holding or being listed on any license or from being
approved to work in the bingo operations of any licensed authorized
organization or to serve as an operator if the person has failed to
comply with the duties required of the person as a unit manager or
designated agent.
SECTION 54.20. Section 2001.451, Occupations Code, is
amended by amending Subsection (b) and adding Subsection (b-1) to
read as follows:
(b) A licensed authorized organization shall deposit in the
bingo account all funds derived from the conduct of bingo, less the
amount awarded as cash prizes under Sections 2001.420(a) and (b).
Except as provided by Subsection (b-1), a [A] deposit must be made
not later than the next business day after the day of the bingo
occasion on which the receipts were obtained.
(b-1) A licensed authorized organization may deposit funds
derived from the conduct of bingo that are paid through a debit card
transaction in the bingo account not later than 72 hours after the
transaction.
SECTION 54.21. Section 2001.454, Occupations Code, is
amended to read as follows:
Sec. 2001.454. USE OF NET PROCEEDS FOR CHARITABLE PURPOSES.
(a) A licensed authorized organization shall devote to the [a]
charitable purposes of the organization [purpose] its net proceeds
of bingo and any rental of premises.
(b) Except as otherwise provided by law, the [The] net
proceeds derived from bingo and any rental of premises are
dedicated to the [a] charitable purposes of the organization
[purpose] only if directed to a cause, deed, or activity that is
consistent with the federal tax exemption the organization obtained
under 26 U.S.C. Section 501 and under which the organization
qualifies as a nonprofit organization as defined by Section
2001.002[:
[(1) benefits an indefinite number of needy or
deserving persons in this state by:
[(A) enhancing their opportunity for religious
or educational advancement;
[(B) relieving them from disease, suffering, or
distress;
[(C) contributing to their physical well-being;
[(D) assisting them in establishing themselves
in life as worthy and useful citizens; or
[(E) increasing their comprehension of and
devotion to the principles on which this nation was founded and
enhancing their loyalty to their government; or
[(2) initiates, performs, or fosters worthy public
works in this state or enables or furthers the erection or
maintenance of public structures in this state]. If the
organization is not required to obtain a federal tax exemption
under 26 U.S.C. Section 501, the organization's net proceeds are
dedicated to the charitable purposes of the organization only if
directed to a cause, deed, or activity that is consistent with the
purposes and objectives for which the organization qualifies as an
authorized organization under Section 2001.002.
SECTION 54.22. Subsection (a), Section 2001.458,
Occupations Code, is amended to read as follows:
(a) An item of expense may not be incurred or paid in
connection with the conduct of bingo except an expense that is
[those expenses that are] reasonable or necessary to conduct bingo,
including an expense [and necessarily expended] for:
(1) advertising, including the cost of printing bingo
gift certificates;
(2) security;
(3) repairs to premises and equipment;
(4) bingo supplies and equipment;
(5) prizes;
(6) stated rental or mortgage and insurance expenses;
(7) bookkeeping, legal, or accounting services
related to bingo;
(8) fees [in amounts authorized by the commission] for
callers, cashiers, ushers, janitorial services, and utility
supplies and services; [and]
(9) license fees;
(10) attending a bingo seminar or convention required
under Section 2001.107; and
(11) debit card transaction fees.
SECTION 54.23. Subsection (a), Section 2001.459,
Occupations Code, is amended to read as follows:
(a) The following items of expense incurred or paid in
connection with the conduct of bingo must be paid from an
organization's bingo account:
(1) advertising, including the cost of printing bingo
gift certificates;
(2) security during a bingo occasion;
(3) the purchase or repair of bingo supplies and
equipment;
(4) prizes, other than authorized cash prizes;
(5) stated rental expenses;
(6) bookkeeping, legal, or accounting services;
(7) fees for callers, cashiers, and ushers;
(8) janitorial services;
(9) license fees; and
(10) payment for services provided by a system service
provider.
SECTION 54.24. Subsection (a), Section 2001.504,
Occupations Code, is amended to read as follows:
(a) A tax or fee authorized or imposed under this subchapter
is due and is payable by the license holder or a person conducting
bingo without a license to the commission quarterly on or before the
25th [15th] day of the month succeeding each calendar quarter.
SECTION 54.25. Subsection (b), Section 2001.602,
Occupations Code, is amended to read as follows:
(b) In determining the amount of the penalty, the
[executive] director shall consider:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the prohibited acts;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
SECTION 54.26. Subsections (a) and (b), Section 2001.603,
Occupations Code, are amended to read as follows:
(a) If, after investigating a possible violation and the
facts surrounding that possible violation, the [executive]
director determines that a violation has occurred, the [executive]
director may issue a violation report stating the facts on which the
conclusion that a violation occurred is based, recommending that an
administrative penalty be imposed on the person alleged to have
committed the violation, and recommending the amount of the
proposed penalty. The [executive] director shall base the
recommended amount of the proposed penalty on the seriousness of
the violation determined by consideration of the factors set out in
Section 2001.602(b).
(b) Not later than the 14th day after the date on which the
report is issued, the [executive] director shall give written
notice of the report to the person alleged to have committed the
violation.
SECTION 54.27. Section 2001.604, Occupations Code, is
amended to read as follows:
Sec. 2001.604. PENALTY TO BE PAID OR HEARING REQUESTED.
(a) Not later than the 20th day after the date the person receives
the notice, the person may:
(1) accept the recommendation of the [executive]
director, including the recommended administrative penalty; or
(2) make a written request for a hearing on the
determination.
(b) If the person accepts the [executive] director's
determination, the [executive] director by order shall approve the
determination and impose the proposed penalty.
SECTION 54.28. Subsection (a), Section 2001.605,
Occupations Code, is amended to read as follows:
(a) If the person timely requests a hearing or does not
respond to the notice in the time provided by Section 2001.604(a),
the [executive] director shall set a hearing and give notice of the
hearing to the person.
SECTION 54.29. Section 2001.606, Occupations Code, is
amended to read as follows:
Sec. 2001.606. DECISION BY [EXECUTIVE] DIRECTOR. (a) Based
on the findings of fact and conclusions of law and the
recommendations of the hearings examiner, the [executive] director
by order:
(1) may find that a violation has occurred and may
impose an administrative penalty; or
(2) may find that a violation has not occurred.
(b) The [executive] director shall give notice of the order
to the person. The notice must include:
(1) separate statements of the findings of fact and
conclusions of law;
(2) the amount of any penalty imposed;
(3) a statement of the right of the person to judicial
review of the order; and
(4) other information required by law.
SECTION 54.30. Subsections (b) and (c), Section 2001.607,
Occupations Code, are amended to read as follows:
(b) Within the 30-day period, a person who acts under
Subsection (a)(3) may:
(1) stay enforcement of the penalty by:
(A) paying the penalty to the court for placement
in an escrow account; or
(B) giving to the court a supersedeas bond
approved by the court for the amount of the penalty that is
effective until all judicial review of the order is final; or
(2) request the court to stay enforcement of the
penalty by:
(A) filing with the court a sworn affidavit of
the person stating that the person is financially unable to pay the
penalty and is financially unable to give the supersedeas bond; and
(B) giving a copy of the affidavit to the
[executive] director by certified mail.
(c) On receipt of a copy of the affidavit as provided by
Subsection (b)(2), the [executive] director may file with the
court, not later than the fifth day after the date the copy is
received, a contest to the affidavit. The court shall hold a
hearing on the facts alleged in the affidavit as soon as practicable
and shall stay the enforcement of the penalty on finding that the
alleged facts are true. The person who files an affidavit has the
burden of proving that the person is financially unable to pay the
penalty and to give a supersedeas bond.
SECTION 54.31. Section 2001.608, Occupations Code, is
amended to read as follows:
Sec. 2001.608. COLLECTION OF PENALTY. If the person does
not pay the administrative penalty and the enforcement of the
penalty is not stayed, the [executive] director may refer the
matter to the attorney general for collection of the penalty.
SECTION 54.32. Subchapter H, Chapter 151, Tax Code, is
amended by adding Section 151.3105 to read as follows:
Sec. 151.3105. BINGO EQUIPMENT PURCHASED BY CERTAIN
ORGANIZATIONS. Bingo equipment, as defined by Section 2001.002,
Occupations Code, is exempted from the taxes imposed by this
chapter if the bingo equipment is:
(1) purchased by an organization licensed to conduct
bingo under Chapter 2001, Occupations Code, that is exempt from the
payment of federal income taxes under Section 501(a), Internal
Revenue Code of 1986, as amended, by being listed as an exempt
organization under Section 501(c)(3), (4), (8), (10), or (19),
Internal Revenue Code of 1986, as amended; and
(2) used exclusively to conduct bingo authorized under
Chapter 2001, Occupations Code.
SECTION 54.33. Subsection (b), Section 2001.409,
Occupations Code, is repealed.
SECTION 54.34. (a) The changes in law made by this article
governing eligibility of a person for a license apply only to the
issuance or renewal of a license by the Texas Lottery Commission
under Chapter 2001, Occupations Code, as amended by this article,
on or after the effective date of this article. A license issued by
the commission under those laws before the effective date of this
article is governed by the applicable licensing requirements in
effect when the license was last issued or renewed until the license
expires or is renewed as provided by Chapter 2001, Occupations
Code, as amended by this article.
(b) The change in law made by this article to Section
2001.454, Occupations Code, applies to the charitable
disbursements made by a licensed authorized organization beginning
with disbursements for the second quarter of 2004. A charitable
disbursement made by a licensed authorized organization for a
quarter before the second quarter of 2004 is governed by the law in
effect immediately before the effective date of this article, and
the former law is continued in effect for that purpose.
(c) An authorized organization licensed to conduct bingo
before the effective date of this article may renew its license,
notwithstanding that the organization has not been in existence for
the time required under a rule of the Texas Lottery Commission
adopted under Section 2001.101, Occupations Code, if the
organization meets all other requirements for the renewal of the
license.
ARTICLE 55. ORGANIZATION OF CERTAIN STATE AGENCIES; TRANSFER OF
CERTAIN FUNCTIONS
PART 1. CREATION OF LEGISLATIVE INFORMATION SERVICES BOARD;
ABOLITION OF TEXAS LEGISLATIVE COUNCIL AND TRANSFER OF ITS
FUNCTIONS
SECTION 55.01. Subtitle C, Title 3, Government Code, is
amended by adding Chapter 327 to read as follows:
CHAPTER 327. LEGISLATIVE INFORMATION SERVICES BOARD
Sec. 327.001. DEFINITIONS. In this chapter:
(1) "Board" means the Legislative Information
Services Board.
(2) "Director" means the director of the board.
Sec. 327.002. CREATION. The Legislative Information
Services Board is an agency of the legislative branch of state
government.
Sec. 327.003. LEGISLATIVE INFORMATION SERVICES BOARD.
(a) The board consists of:
(1) the lieutenant governor;
(2) the speaker of the house of representatives;
(3) the chairs of the senate and house administration
committees;
(4) five other senators from various areas of the
state appointed by the lieutenant governor; and
(5) five other members of the house of representatives
from various areas of the state appointed by the speaker.
(b) The lieutenant governor and the speaker of the house of
representatives serve alternate terms as the chairman and vice
chairman of the board. The terms are for two years and expire on
February 1 of each odd-numbered year.
(c) Members of the board serve without compensation but are
entitled to reimbursement for actual and necessary expenses
incurred in attending meetings and performing official functions.
(d) Actual and necessary expenses are paid from funds
appropriated to the board.
Sec. 327.004. DIRECTOR. (a) The board shall appoint a
director to serve at the pleasure of the board.
(b) The board shall set the salary of the director.
Sec. 327.005. PERSONNEL. (a) The director, with the
approval of the board, may employ professional and clerical
personnel.
(b) The board shall set the salaries of the personnel
employed by the director.
Sec. 327.006. GIFTS AND GRANTS. (a) The board may accept
gifts, grants, and donations from any organization described in
Section 501(c)(3), Internal Revenue Code of 1986, for the purposes
of funding any activity under this chapter.
(b) All gifts, grants, and donations must be accepted in an
open meeting by a majority of the voting members of the board and
reported in the public record of the board with the name of the
donor and purpose of the gift, grant, or donation.
Sec. 327.007. DUTIES. The board shall provide computer
support services to the legislative branch of state government,
including:
(1) installing and maintaining computer equipment;
(2) testing new software and hardware;
(3) developing custom software;
(4) maintaining a local area network; and
(5) providing computer training and assistance.
Sec. 327.008. ELECTRONIC AVAILABILITY OF LEGISLATIVE
INFORMATION THROUGH THE INTERNET. (a) In this section:
(1) "Internet" means the largest nonproprietary
nonprofit cooperative public computer network, popularly known as
the Internet.
(2) "Legislative information" means:
(A) a list of all the members of each house of the
legislature;
(B) a list of the committees of the legislature
and their members;
(C) the full text of each bill as filed and as
subsequently amended, substituted, engrossed, or enrolled in
either house of the legislature;
(D) the full text of each amendment or substitute
adopted by a legislative committee for each bill filed in either
house of the legislature;
(E) the calendar of each house of the
legislature, the schedule of legislative committee hearings, and a
list of the matters pending on the floor of each house of the
legislature;
(F) detailed procedural information about how a
bill filed in either house of the legislature becomes law,
including detailed timetable information concerning the times
under the constitution or the rules of either house when the
legislature may take certain actions on a bill;
(G) the district boundaries or other identifying
information for the following types of districts in Texas:
(i) house of representatives districts;
(ii) senate districts;
(iii) State Board of Education districts;
and
(iv) United States congressional
districts; and
(H) other information related to the legislative
process that in the board's opinion should be made available
through the Internet.
(b) The board, to the extent it considers it to be feasible
and appropriate, may make legislative information available to the
public through the Internet.
(c) The board may make available to the public through the
Internet any documentation that describes the electronic digital
formats of legislative information.
(d) The access to legislative information provided for
under this section:
(1) is in addition to the public's access to the
information through other electronic or print distribution of the
information;
(2) does not alter, diminish, or relinquish any
copyright or other proprietary interest or entitlement of the State
of Texas or a private entity under contract with the state; and
(3) is subject to Section 327.009.
Sec. 327.009. COMPUTER ACCESS, INFORMATION, AND USE.
(a) The board shall consider each application for direct access to
a computer under its control in which confidential information is
stored or processed or that is connected with another computer in
which confidential information is stored or processed and solely
shall determine whether or not to permit direct access by the
applicant. Direct access to such a computer may not be permitted
unless protection of confidential information is ensured.
(b) If public information of the board is stored in a
computer-readable form, the board has exclusive authority to
determine the form in which the information will be reproduced for
the requestor of the information.
(c) Notwithstanding Subchapter F, Chapter 552, the board
has exclusive authority to determine the charge for direct access
to a computer under its control and the charge for information
reproduced for a requestor.
(d) The board may consider the needs of persons with
disabilities when making decisions regarding the formats in which
information is made available under this chapter.
Sec. 327.010. COMPUTER SECURITY; PENALTY. (a) A person
commits an offense if the person intentionally or knowingly gains
access to information stored or maintained by a computer under the
control of the board and the person is not authorized by the board
to have access to that information.
(b) A person commits an offense if the person intentionally,
knowingly, or recklessly damages, destroys, deletes, or alters or
impairs access to or use of information stored or maintained by a
computer under the control of the board and the person is not
authorized by the board to do so.
(c) Subsection (b) does not apply to an interruption of
utility service or other service that causes the damage,
destruction, deletion, or alteration of or impairment of access to
or use of the information unless the interruption was intended to
have that result.
(d) An offense under this section is a Class A misdemeanor.
SECTION 55.02. The following laws are repealed:
(1) Section 276.008, Election Code;
(2) Chapter 323, Government Code;
(3) Section 2053.004, Government Code; and
(4) Section 6.14, Tax Code.
PART 2. TRANSFER OF FINANCIAL AUDIT FUNCTIONS FROM STATE AUDITOR
TO LEGISLATIVE BUDGET BOARD
SECTION 55.03. Chapter 322, Government Code, is amended by
adding Section 322.002 to read as follows:
Sec. 322.002. DEFINITIONS. In this chapter:
(1) "Board" means the Legislative Budget Board.
(2) "Department" includes every department, agency,
board, bureau, institution, or commission of the state.
SECTION 55.04. Chapter 322, Government Code, is amended by
adding Sections 322.015 through 322.026 to read as follows:
Sec. 322.015. FINANCIAL AND COMPLIANCE AUDITS: POWERS AND
DUTIES. (a) The board shall conduct financial audits of all
departments, including institutions of higher education, as
specified in the audit plan required under Subsection (c). The
board may conduct an audit or investigation of any entity receiving
funds from the state.
(b) The board shall conduct the audits in accordance with
generally accepted auditing standards as prescribed by the American
Institute of Certified Public Accountants, the Governmental
Accounting Standards Board, the United States General Accounting
Office, or other professionally recognized entities that prescribe
auditing standards.
(c) The board shall devise an audit plan for the state for
each fiscal year. In the plan, the board shall consider
recommendations concerning coordination of agency functions made
by representatives of the Performance Review Commission. The board
shall also consider the extent to which a department has received a
significant increase in appropriations, including a significant
increase in federal or other money passed through to the
department, and shall review procurement activities for compliance
with Section 2161.123. The plan shall provide for the auditing of
federal programs at least once in each fiscal biennium and shall
ensure that audit requirements of all bond covenants and other
credit or financial agreements are satisfied.
(d) At any time during an audit or investigation, the board
may require the assistance of the administrative head, official,
auditor, accountant, or other employees of the entity being audited
or investigated.
(e) The board is entitled to access to all of the books,
accounts, confidential or unconfidential reports, vouchers, or
other records of information in any department or entity subject to
audit, including access to all electronic data.
(f) The board has access to information and data the release
of which is restricted under federal law only with the approval of
the appropriate federal administrative agency. The board shall
have access to copyrighted or restricted information obtained by
the office of the comptroller under subscription agreements and
used in the preparation of economic estimates only for audit
purposes.
(g) The board may conduct compliance and financial audits as
defined by Sections 322.016 and 322.017 and specified in the audit
plan.
(h) To the extent that the performance of the powers and
duties of the board under law is not impeded, the board shall make
reasonable efforts to coordinate requests for employee assistance
under Subsection (d) or requests for access to books, accounts,
vouchers, records, or data under Subsection (e) or (f) so as not to
hinder the daily operations of the audited entity.
(i) The board may not conduct audits of private entities
concerning collection or remittance of taxes or fees to the state if
the entity is subject to audit by another state agency for the taxes
or fees.
(j) If the board determines that a change in an accounting
system is necessary, the board shall consider the present system of
books, records, accounts, and reports to ensure that the transition
will be gradual and that the past and present records will be
coordinated into the new system.
Sec. 322.016. COMPLIANCE AUDIT. A compliance audit is an
audit to determine:
(1) whether the audited entity has obligated,
expended, received, and used state funds in accordance with the
purpose for which those funds have been appropriated or otherwise
authorized by law;
(2) whether the audited entity has obligated,
expended, received, and used state funds in accordance with any
limitations, restrictions, conditions, or mandatory directions
imposed by law on those obligations, expenditures, receipts, or
uses;
(3) in the case of a local or private entity or agency,
whether the records, books, and accounts of the audited entity
fairly and accurately reflect the entity's financial and fiscal
operations relating to the obligation, receipt, expenditure, and
use of state funds or funds represented as being collected for a
state purpose;
(4) whether the collections of state revenues and
receipts by the audited entity are in accordance with applicable
laws and regulations; and
(5) whether money or negotiable securities or similar
assets handled by the audited entity on behalf of the state or
received from the state and held in trust by the audited entity have
been properly and legally administered.
Sec. 322.017. FINANCIAL AUDIT. A financial audit is an
audit to determine:
(1) in the case of the state or a department, whether
the records, books, and accounts of the audited entity accurately
reflect its financial and fiscal operations;
(2) whether the audited entity is maintaining
effective accounting control over revenues, obligations,
expenditures, assets, and liabilities;
(3) whether the accounting and record-keeping of
collections of state revenues and receipts by the audited entity
are fair, accurate, and in accordance with law;
(4) whether the accounting and record-keeping of money
or negotiable securities or similar assets handled by the audited
entity on behalf of the state or received from the state and held in
trust by the audited entity are proper, accurate, and in accordance
with law; and
(5) whether financial reports of the audited entity
are fairly presented.
Sec. 322.018. FINANCIAL AND COMPLIANCE AUDIT REPORTS.
(a) The board shall prepare a written report for each financial or
compliance audit conducted by the board.
(b) The written report must include a management letter with
comments about internal controls, compliance with state or federal
laws, and recommendations for improving operations or program
effectiveness, as applicable. The report must also include an
opinion on fair presentation of financial statements if the board
considers an opinion to be necessary.
(c) The board shall file a copy of each report prepared
under this section with:
(1) the governor;
(2) the lieutenant governor;
(3) the speaker of the house of representatives;
(4) the secretary of state;
(5) the Legislative Reference Library;
(6) each member of the governing body and the
administrative head of each entity that is the subject of the
report; and
(7) members of the legislature on a committee with
oversight responsibility for the entity or program that is the
subject of the report.
(d) The board shall maintain a complete file containing:
(1) copies of each audit report; and
(2) audit work papers and other evidence relating to
the work of the board.
(e) The board shall maintain the files required by
Subsection (d) for at least eight years after the date on which the
information is filed.
(f) Each audited department or entity shall report on the
manner in which the department or entity addressed the findings and
recommendations that are included in a report prepared by the board
under this section. The board shall prescribe the form and schedule
for a report by the department or entity under this subsection.
(g) If a department or entity does not implement a change
recommended by the board's report, the department or entity shall
file a report with the persons specified by Subsection (c). The
report must:
(1) identify the recommendation the department or
entity did not implement; and
(2) state the reason the department or entity did not
implement the recommendation.
Sec. 322.019. IMPROPER PRACTICES AND ILLEGAL TRANSACTIONS.
(a) If in the course of an audit the board finds evidence of
improper practices of financial administration, inadequate fiscal
records, or uneconomical use of resources, the board, after
consulting with the head of the department being audited, shall
immediately report the evidence to the governor and to the
administrative head and the chairman of the governing body of the
affected department.
(b) If in the course of an audit the board finds evidence of
an illegal transaction, the board, after consulting with the head
of the department, shall immediately report the transaction to the
governor and the appropriate legal authority.
(c) Immediately after receiving a report alleging improper
practices of financial administration or uneconomical use of
resources, the board shall review the report and shall consult with
and may hold hearings with the administrative head and the chairman
of the governing body of the affected department regarding the
report.
(d) If the administrative head or the governing body of the
affected department refuses to make the changes recommended by the
board at a hearing under Subsection (c) or refuses to provide any
additional information or reports requested, the board shall report
the refusal to the legislature.
Sec. 322.020. REVIEW AND OVERSIGHT OF FUNDS AND ACCOUNTS
RECEIVING COURT COSTS. (a) The board may review each fund and
account into which money collected as a court cost is directed by
law to be deposited to determine whether:
(1) the money is being used for the purpose for which
the money is collected; and
(2) the amount of the court cost is appropriate,
considering the purpose for which the cost is collected.
(b) The board may perform reviews under this section as
specified in the audit plan developed under Section 322.015.
(c) The board shall make the findings of a review performed
under this section available to the public and shall report the
findings to the governor, the chief justice of the supreme court,
and the presiding judge of the court of criminal appeals. The
report may include the board's recommendations for legislation or
policy changes.
Sec. 322.021. SUBPOENAS. (a) The board may subpoena
witnesses or any books, records, or other documents reasonably
necessary to conduct an examination under this chapter.
(b) Each subpoena must be signed by the chairman or the
secretary of the board.
(c) On the request of the chairman or the secretary of the
board, the sergeant at arms or an assistant sergeant at arms of
either house of the legislature or any peace officer shall serve the
subpoena in the manner prescribed for service of a district court
subpoena.
(d) If the person to whom a subpoena is directed fails to
comply, the board may bring suit in district court to enforce the
subpoena. If the court determines that good cause exists for the
issuance of the subpoena, the court shall order compliance. The
court may modify the requirements of a subpoena that the court
determines are unreasonable. Failure to comply with the order of
the district court is punishable as contempt.
(e) The board may provide for the compensation of subpoenaed
witnesses. The amount of compensation may not exceed the amount
paid to a witness subpoenaed by a district court in a civil
proceeding.
Sec. 322.022. INTERFERENCE WITH AUDIT OR INVESTIGATION.
(a) An officer or employee of this state or of an entity subject to
audit or investigation by the board commits an offense if the
officer or employee:
(1) refuses to immediately permit the board to examine
or have access to the books, accounts, reports, vouchers, papers,
documents, or electronic data to which the board is entitled under
Section 322.015(e) or (f) or other law, or access to the cash drawer
or cash from the officer's or employee's department;
(2) interferes with an examination by the board; or
(3) refuses to make a report required by this chapter.
(b) An offense under this section is a Class A misdemeanor.
Sec. 322.023. COORDINATION OF CERTAIN AUDITS.
(a) Notwithstanding any other law, a state agency, or a
corporation that is dedicated to the benefit of a state agency and
that meets the criteria specified by Section B, Article 2.23B,
Texas Non-Profit Corporation Act (Article 1396-2.23B, Vernon's
Texas Civil Statutes), may employ a private auditor to audit the
state agency or corporation only if:
(1) the agency or corporation is authorized to do so by
law or through a delegation of authority from the board;
(2) the scope of the proposed audit has been submitted
to the board for review and comment; and
(3) the services of the private auditor are procured
through a competitive selection process in a manner allowed by law.
(b) At the joint direction of the lieutenant governor and
the speaker of the house of representatives, the board shall
provide contract management services to the agency or corporation
for an audit described by this section.
Sec. 322.024. GIFTS AND GRANTS. (a) The board may accept
gifts, grants, and donations from any organization described in
Section 501(c)(3), Internal Revenue Code of 1986, for the purpose
of funding any activity under this chapter.
(b) All gifts, grants, and donations must be accepted in an
open meeting by a majority of the voting members of the board and
reported in the public record of the committee with the name of the
donor and purpose of the gift, grant, or donation.
Sec. 322.025. COORDINATION OF INVESTIGATIONS. (a) If the
administrative head of a department or entity that is subject to
audit by the board has reasonable cause to believe that money
received from the state by the department or entity or by a client
or contractor of the department or entity may have been lost,
misappropriated, or misused or that other fraudulent or unlawful
conduct has occurred in relation to the operation of the department
or entity, the administrative head shall report the reason and
basis for the belief to the board. The board may investigate the
report or may monitor any investigation conducted by the department
or entity.
(b) The board, in consultation with state agencies and
institutions, shall prescribe the form, content, and timing of a
report required by this section.
(c) All records of a communication by or to the board
relating to a report to the board under Subsection (a) are audit
working papers of the board.
(d) In this section, "audit working papers" means all
documentary and other information prepared or maintained in
conducting an audit or investigation, including all intra-agency
and interagency communications relating to an audit or
investigation and all draft reports or portions thereof.
Sec. 322.026. SEAL. The board shall obtain a seal with
"Legislative Budget Board, State of Texas" engraved around the
margin and a five-pointed star in the center to be used to
authenticate official documents issued by the board.
SECTION 55.05. Chapter 321, Government Code, is repealed.
PART 3. CREATION OF PERFORMANCE REVIEW COMMISSION; ABOLITION OF
SUNSET ADVISORY COMMISSION AND TRANSFER OF FUNCTIONS TO PERFORMANCE
REVIEW COMMISSION
SECTION 55.06. Section 325.002, Government Code, is amended
to read as follows:
Sec. 325.002. DEFINITIONS. In this chapter:
(1) ["State agency" means an agency expressly made
subject to this chapter.
[(2)] "Advisory committee" means a committee,
council, commission, or other entity created under state law whose
primary function is to advise a state agency.
(2) [(3)] "Commission" means the Performance Review
[Sunset Advisory] Commission.
(3) "Department" includes every department, agency,
board, bureau, institution, or commission of the state.
(4) "State agency" means an agency expressly made
subject to this chapter.
SECTION 55.07. Section 325.003, Government Code, is amended
by amending the section heading and Subsections (a), (d), and (i) to
read as follows:
Sec. 325.003. PERFORMANCE REVIEW [SUNSET ADVISORY]
COMMISSION.
(a) The Performance Review [Sunset Advisory] Commission
consists of the lieutenant governor and three other [four] members
of the senate and one public member appointed by the lieutenant
governor and the speaker of the house of representatives and three
other [four] members of the house of representatives and one public
member appointed by the speaker of the house. [Each appointing
authority may designate himself as one of the legislative
appointees.]
(d) Legislative members other than the lieutenant governor
and the speaker of the house of representatives serve four-year
terms, with terms staggered so that the terms of one-half of the
legislative members appointed by the lieutenant governor and the
terms of one-half of the legislative members appointed by the
speaker expire September 1 of each odd-numbered year. The [If the]
lieutenant governor and [or] the speaker shall serve [serves] on
the commission[, he continues to serve] until resignation from the
commission or until the lieutenant governor or speaker [he] ceases
to hold the office. Public members serve two-year terms expiring
September 1 of each odd-numbered year.
(i) The speaker of the house of representatives is the
chairman of the commission [shall have a chairman and vice-chairman
as presiding officers. The chairmanship and vice-chairmanship must
alternate every two years between the two membership groups
appointed by the lieutenant governor and the speaker. The chairman
and vice-chairman may not be from the same membership group. The
lieutenant governor shall designate a presiding officer from his
appointed membership group and the speaker shall designate the
other presiding officer from his appointed membership group].
SECTION 55.08. Subsection (a), Section 325.008, Government
Code, is amended to read as follows:
(a) Before September 1 of the even-numbered year before the
year in which a state agency subject to this chapter and its
advisory committees are abolished, the commission shall:
(1) review and take action necessary to verify the
reports submitted by the agency under Section 325.007;
(2) consult the Legislative Budget Board, the
Governor's Budget and Planning Office, [the State Auditor,] and the
comptroller of public accounts, or their successors, on the
application to the agency of the criteria provided in Section
325.011;
(3) conduct a performance evaluation of the agency
based on the criteria provided in Section 325.011 and prepare a
written report; and
(4) review the implementation of commission
recommendations contained in the reports presented to the
legislature during the preceding legislative session.
SECTION 55.09. Chapter 325, Government Code, is amended by
adding Sections 325.0081 through 325.0086 to read as follows:
Sec. 325.0081. OTHER POWERS AND DUTIES. (a) The
commission shall conduct performance audits of all departments,
including institutions of higher education, as specified in the
audit plan developed under Subsection (c).
(b) The commission shall conduct the audits in accordance
with generally accepted auditing standards as prescribed by the
American Institute of Certified Public Accountants, the
Governmental Accounting Standards Board, the United States General
Accounting Office, or other professionally recognized entities
that prescribe auditing standards.
(c) The commission shall develop and approve an audit plan
for the state for each fiscal year. In devising the plan, the
commission shall consider recommendations concerning coordination
of agency functions made jointly by representatives of the
commission and the Legislative Budget Board.
(d) At any time during an audit the commission may require
the assistance of the administrative head, official, auditor,
accountant, or other employees of the entity being audited.
(e) The commission is entitled to access to all of the
books, accounts, confidential or unconfidential reports, vouchers,
or other records of information in any department or entity subject
to audit, including access to all electronic data except as
provided by Subsection (f).
(f) The commission has access to information and data the
release of which is restricted under federal law only with the
approval of the appropriate federal administrative agency. The
commission shall have access to copyrighted or restricted
information obtained by the comptroller under subscription
agreements and used in the preparation of economic estimates only
for audit purposes.
(g) The commission may conduct economy and efficiency
audits and effectiveness audits as defined by this chapter and
specified in the audit plan.
(h) To the extent that the performance of the powers and
duties of the commission under law is not impeded, the commission
shall make reasonable efforts to coordinate requests for employee
assistance under Subsection (d) or requests for access to books,
accounts, vouchers, records, or data under Subsection (e) or (f) so
as not to hinder the daily operations of the audited entity.
Sec. 325.0082. ECONOMY AND EFFICIENCY AUDIT. An economy
and efficiency audit is an audit to determine:
(1) whether the audited entity is managing or
utilizing its resources, including personnel, property, equipment,
and space, in an economical and efficient manner;
(2) causes of inefficiencies or uneconomical
practices, including inadequacies in management information
systems, internal and administrative procedures, organizational
structure, use of resources, allocation of personnel, purchasing,
policies, and equipment; and
(3) whether program and statistical reports of the
audited entity contain useful data and are fairly presented.
Sec. 325.0083. EFFECTIVENESS AUDIT. An effectiveness audit
is an audit to determine, according to established or designated
program objectives, responsibilities or duties, statutes and
regulations, program performance criteria, or program evaluation
standards:
(1) whether the objectives and intended benefits are
being achieved efficiently and effectively; and
(2) whether the program duplicates, overlaps, or
conflicts with another state program.
Sec. 325.0084. IMPROPER PRACTICES AND ILLEGAL
TRANSACTIONS. (a) If in the course of an audit the commission
finds evidence of uneconomical use of resources or ineffective
program performance, the commission, after consulting with the head
of the department, shall immediately report the evidence to the
governor and the administrative head and the chairman of the
governing body of the affected department.
(b) If in the course of an audit the commission finds
evidence of an illegal transaction, the commission, after
consulting with the head of the department, shall immediately
report the transaction to the governor and the appropriate legal
authority.
(c) The commission shall review a report alleging
uneconomical use of resources or ineffective program performance
immediately. The commission shall consult with and may hold
hearings with the administrative head and the chairman of the
governing body of the affected department regarding the report.
(d) If the administrative head or the governing body of the
affected department refuses to make the changes recommended by the
commission at the hearing or provide any additional information or
reports requested, the commission shall report the refusal to the
legislature.
Sec. 325.0085. REVIEW OF INTERSCHOLASTIC COMPETITION. The
commission may periodically review and analyze the effectiveness
and efficiency of the policies, management, fiscal affairs, and
operations of an organization that is a component or part of a state
agency or institution and that sanctions or conducts
interscholastic competition. The commission shall report the
findings to the governor, lieutenant governor, and speaker of the
house of representatives. The legislature may consider the
commission's reports in connection with the legislative
appropriations process.
Sec. 325.0086. RECORDS MANAGEMENT REVIEW. (a) The
commission may periodically review and analyze the effectiveness
and efficiency of the policies and management of a state
governmental committee or state agency that is involved in:
(1) analyzing and recommending improvements to the
state's system of records management; and
(2) preserving the essential records of this state,
including records relating to financial management information.
(b) In this section, "state agency" has the meaning assigned
by Section 2056.001.
SECTION 55.10. Section 403.0205, Government Code, is
repealed.
PART 4. POWERS AND FUNCTIONS OF THE STATE PRESERVATION BOARD
SECTION 55.11. Section 443.007, Government Code, is amended
by adding Subsection (e) to read as follows:
(e) The board may adopt any management or oversight method
or procedure reasonably necessary to ensure that the requirements
under Subsection (a) are met in the most economical and efficient
manner.
SECTION 55.12. Chapter 443, Government Code, is amended by
adding Section 443.0232 to read as follows:
Sec. 443.0232. CONSULTATION WITH THE LEGISLATIVE
INFORMATION SERVICES BOARD. (a) The board shall consult with the
Legislative Information Services Board regarding the installation
of information technology equipment in the Capitol, the General
Land Office Building, and their grounds. The interest of
preservation must be balanced against the need of the legislative
branch of state government for computer hardware and other types of
office machinery and communication tools.
(b) The consultation under Subsection (a) shall include an
analysis of:
(1) the extent of any permanent changes in the
appearance of the buildings or their grounds likely to be caused by
the installation of information technology equipment, including
wiring and antennas;
(2) methods for minimizing the impact of the
installation on the appearance of the buildings or grounds; and
(3) ways to ensure that any necessary alterations in
the appearance of the buildings or grounds conform, to the extent
reasonably practicable, with the architectural and historical
integrity of the buildings or grounds.
PART 5. CONFORMING AMENDMENTS
SECTION 55.13. Subsection (a), Section 81.113, Government
Code, is amended to read as follows:
(a) Except as provided by Subsection (b), the state bar
shall credit an attorney licensed in this state with meeting the
minimum continuing legal education requirements of the state bar
for a reporting year if during the reporting year the attorney is
employed full-time as an attorney by:
(1) the senate;
(2) the house of representatives;
(3) a committee, division, department, or office of
the senate or house;
(4) [the Texas Legislative Council;
[(5)] the Legislative Budget Board;
(5) [(6)] the Legislative Reference Library;
[(7) the office of the state auditor;] or
(6) [(8)] the Performance Review [Sunset Advisory]
Commission.
SECTION 55.14. Subsection (a), Section 301.021, Government
Code, is amended to read as follows:
(a) If for any reason it is necessary to obtain assistance
in addition to the services provided by the Legislative Budget
Board [State Auditor], attorney general, [Texas Legislative
Council,] or Department of Public Safety, each general
investigating committee may employ and compensate assistants to
assist in any investigation, audit, or legal matter.
SECTION 55.15. Subsection (a), Section 301.028, Government
Code, is amended to read as follows:
(a) Each standing committee, including a general
investigating committee, may request necessary assistance from all
state agencies, departments, and offices, including:
(1) the Legislative Budget Board [State Auditor];
(2) [the Texas Legislative Council;
[(3)] the Department of Public Safety; and
(3) [(4)] the attorney general.
SECTION 55.16. Subsections (a) and (d), Section 301.041,
Government Code, are amended to read as follows:
(a) A duly appointed senator's or representative's
membership on the Legislative Budget Board, Legislative Library
Board, [Legislative Audit Committee, Texas] Legislative
Information Services Board [Council], or any other interim
committee terminates if the member:
(1) resigns the membership;
(2) ceases membership in the legislature for any
reason; or
(3) fails to be nominated or elected to the
legislature for the next term.
(d) In filling a vacancy created under this section, the
lieutenant governor or the speaker may appoint a senator or
representative, as appropriate, other than a committee chairman
designated by law to serve as a member of the Legislative Budget
Board, Legislative Library Board, [Legislative Audit Committee,
Texas] Legislative Information Services Board [Council], or any
other interim committee. An appointment made under this subsection
does not constitute an appointment to any position other than that
of a member of a board[, council,] or committee covered by this
section.
SECTION 55.17. Section 302.032, Government Code, is amended
to read as follows:
Sec. 302.032. LEGISLATIVE BRIBERY: PROMISES OR THREATS. A
person commits an offense if, with the intent to influence a member
of or candidate for the house of representatives in casting a vote
for speaker of the house of representatives, the person:
(1) promises or agrees to cause:
(A) the appointment of a person to a chairmanship
or vice-chairmanship of a house committee or subcommittee;
(B) the appointment of a person to a particular
house committee or subcommittee, the Legislative Budget Board, the
[Texas] Legislative Information Services Board [Council], the
Legislative Library Board, [the Legislative Audit Committee,] or
any other position the speaker appoints;
(C) preferential treatment on any legislation or
appropriation;
(D) the employment of a person; or
(E) economic benefit to a person; or
(2) threatens to cause:
(A) the failure to appoint a person to a
chairmanship or vice-chairmanship of a house committee or
subcommittee;
(B) the failure to appoint a person to a
particular house committee or subcommittee, the Legislative Budget
Board, the [Texas] Legislative Information Services Board
[Council], the Legislative Library Board, [the Legislative Audit
Committee,] or any other position the speaker appoints;
(C) unfavorable treatment on any legislation or
appropriation;
(D) the refusal of or removal from employment of
a person; or
(E) the withholding of economic benefit from a
person.
SECTION 55.18. Section 302.033, Government Code, is amended
to read as follows:
Sec. 302.033. LEGISLATIVE BRIBERY: ACCEPTING BENEFITS. A
member of or candidate for the house of representatives commits an
offense if, on the representation or understanding that the member
or candidate will cast a vote for a particular person for speaker of
the house of representatives, the member or candidate solicits,
accepts, or agrees to accept:
(1) the appointment of or refusal to appoint a person
to a chairmanship or vice-chairmanship of a house committee or
subcommittee;
(2) the appointment of or refusal to appoint a person
to a particular house committee or subcommittee, the Legislative
Budget Board, the [Texas] Legislative Information Services Board
[Council], the Legislative Library Board, [the Legislative Audit
Committee,] or any other position the speaker appoints;
(3) preferential or unfavorable treatment on any
legislation or appropriation;
(4) the employment of, refusal of employment of, or
removal from employment of a person; or
(5) economic benefit to or withholding of economic
benefit from a person.
SECTION 55.19. Section 306.007, Government Code, is amended
to read as follows:
Sec. 306.007. MINUTES AND REPORTS ELECTRONICALLY AVAILABLE
TO LEGISLATURE. A state officer or board, commission, or other
agency in the executive branch of state government, and an agency in
the judicial branch of state government other than a court, shall
make reports required by law and minutes of meetings of the agency's
governing body available to members of the legislature and to
agencies in the legislative branch of state government in an
electronic format determined by the [Texas] Legislative
Information Services Board [Council].
SECTION 55.20. Section 326.001, Government Code, is amended
to read as follows:
Sec. 326.001. DEFINITION. In this chapter, "legislative
agency" means:
(1) the senate;
(2) the house of representatives;
(3) a committee, division, department, or office of
the senate or house;
(4) the [Texas] Legislative Information Services
Board [Council];
(5) the Legislative Budget Board;
(6) the Legislative Reference Library; or
(7) [the office of the State Auditor; or
[(8)] any other agency in the legislative branch of
state government.
SECTION 55.21. Subsections (a) and (b), Section 326.003,
Government Code, are amended to read as follows:
(a) The [State Auditor's Office,] Legislative Budget
Board[,] and the Performance Review [Sunset Advisory] Commission
shall form a committee to make recommendations relating to the
coordination of the agencies' functions.
(b) The committee shall meet on a regular basis at least
quarterly. The director of the Legislative Budget Board [State
Auditor] shall call each meeting.
SECTION 55.22. Subsection (b), Section 468.003, Government
Code, is amended to read as follows:
(b) The [Texas] Legislative Information Services Board
[Council] shall provide office space and other support in Austin
necessary for the state demographer to perform the demographer's
duties for the legislature.
SECTION 55.23. Subsection (d), Section 531.203, Government
Code, is amended to read as follows:
(d) The committee may use staff of standing committees in
the senate and house of representatives with appropriate
jurisdiction, the Department of Information Resources, [the state
auditor, the Texas Legislative Council,] and the Legislative Budget
Board in carrying out its responsibilities.
SECTION 55.24. Subdivision (11), Section 572.002,
Government Code, is amended to read as follows:
(11) "State employee" means an individual, other than
a state officer, who is employed by:
(A) a state agency;
(B) the Supreme Court of Texas, the Court of
Criminal Appeals of Texas, a court of appeals, or the Texas Judicial
Council; or
(C) either house of the legislature or a
legislative agency, council, or committee, including the
Legislative Budget Board, the [Texas] Legislative Information
Services Board [Council], [the State Auditor's Office,] and the
Legislative Reference Library.
SECTION 55.25. Subsection (a), Section 660.203, Government
Code, is amended to read as follows:
(a) An individual is entitled to reimbursement for the
actual expense of meals and lodging incurred while performing the
duties of the individual's office or employment if the individual
is:
(1) a judicial officer;
(2) a chief administrative officer of a state agency,
subject to Subsection (c);
(3) [the executive director of the Texas Legislative
Council;
[(4)] the secretary of the senate;
(4) [(5)] a member of the Texas Natural Resource
Conservation Commission, the Texas Workforce Commission, the
Public Utility Commission of Texas, the Board of Pardons and
Paroles, or the Sabine River Compact Administration; or
(5) [(6)] a full-time member of a board and receives a
salary from the state for service on that board.
SECTION 55.26. Section 660.206, Government Code, is amended
to read as follows:
Sec. 660.206. REPRESENTATION OF CERTAIN OFFICERS AND
EMPLOYEES. (a) A state employee who is designated by a member of
the legislature, a judicial officer, a chief administrator of a
state agency, [the executive director of the Texas Legislative
Council,] the secretary of the senate, or a board member to
represent the designating party at a particular meeting or
conference is entitled to reimbursement for the actual expense of
meals and lodging on the trip.
(b) A member of the legislature, a judicial officer, a chief
administrator of a state agency, [the executive director of the
Texas Legislative Council,] the secretary of the senate, and a
board member may authorize a state employee traveling with the
authorizing party to a particular meeting or conference to receive
reimbursement for the actual expense of the employee's meals and
lodging on the trip.
SECTION 55.27. Subsection (a), Section 762.003, Government
Code, is amended to read as follows:
(a) The commission is composed of:
(1) nine members appointed by the governor; and
(2) [the executive director of the Texas Legislative
Council or a person designated by the executive director; and
[(3)] in addition to the persons described by
Subdivision [Subdivisions] (1) [and (2)], residents of this state
who have long service in the cause of uniformity in state
legislation as shown by:
(A) at least 20 years of service representing the
state as an associate member of the national conference;
(B) election as a life member of the national
conference; or
(C) at least 15 years of service as a member of
the commission and at least five years of combined service as a
judge or justice of a trial or appellate court of this state.
SECTION 55.28. Section 762.011, Government Code, is amended
to read as follows:
Sec. 762.011. SUPPORT SERVICES. The [Texas] Legislative
Information Services Board [Council] shall provide accounting,
clerical, and other support services necessary for the commission
to carry out its duties.
SECTION 55.29. Subsection (c), Section 2052.0021,
Government Code, is amended to read as follows:
(c) A state agency shall make each report required by law
available to members of the legislature in an electronic format
determined by the [Texas] Legislative Information Services Board
[Council]. The agency shall promptly send a suitable printed copy
of the report to a member of the legislature at the request of the
member.
SECTION 55.30. Subsection (d), Section 2056.002,
Government Code, is amended to read as follows:
(d) A state agency shall send two copies of each plan to both
the Legislative Reference Library and the state publications
clearinghouse of the Texas State Library and one copy each to:
(1) the governor;
(2) the lieutenant governor;
(3) the speaker of the house of representatives;
(4) the Legislative Budget Board; and
(5) the Performance Review [Sunset Advisory]
Commission[;
[(6) the state auditor; and
[(7) the comptroller].
SECTION 55.31. Section 2056.010, Government Code, is
amended to read as follows:
Sec. 2056.010. AGENCY CONFORMANCE TO STRATEGIC PLAN. The
Performance Review [comptroller, the Sunset Advisory] Commission,
the [state auditor, the] Legislative Budget Board, or another
agency that conducts performance audits of a state agency shall
consider in the evaluation of an agency the extent to which the
agency conforms to the agency's strategic plan.
SECTION 55.32. Section 2102.009, Government Code, is
amended to read as follows:
Sec. 2102.009. ANNUAL REPORT. The internal auditor shall
prepare an annual report and submit the report before November 1 of
each year to the governor, the Legislative Budget Board, the
Performance Review [Sunset Advisory] Commission, the [state
auditor, the] state agency's governing board, and the
administrator. The Legislative Budget Board [state auditor] shall
prescribe the form and content of the report[, subject to the
approval of the legislative audit committee].
SECTION 55.33. Subsections (a) and (c), Section 2102.0091,
Government Code, are amended to read as follows:
(a) A state agency shall file with the Performance Review
[Sunset Advisory] Commission, the budget division of the governor's
office, [the state auditor,] and the Legislative Budget Board a
copy of each report submitted to the state agency's governing board
or the administrator of the state agency if the state agency does
not have a governing board by the agency's internal auditor.
(c) In addition to the requirements of Subsection (a), a
state agency shall file with the budget division of the governor's
office[, the state auditor,] and the Legislative Budget Board any
action plan or other response issued by the state agency's
governing board or the administrator of the state agency if the
state agency does not have a governing board in response to the
report of the state agency's internal auditor.
SECTION 55.34. Section 2155.203, Government Code, is
amended to read as follows:
Sec. 2155.203. PURCHASES BY LEGISLATURE AND LEGISLATIVE
AGENCIES. A house of the legislature, or an agency, council, or
committee of the legislature, including the Legislative Budget
Board, the [Texas] Legislative Information Services Board
[Council], [the state auditor's office,] and the Legislative
Reference Library, may use the commission's purchasing services for
purchasing goods and services, including items covered by Section
21, Article XVI, Texas Constitution.
SECTION 55.35. Section 2158.065, Government Code, is
amended to read as follows:
Sec. 2158.065. DISTRIBUTION OF PRINTED LAWS. The secretary
of state shall distribute the printed laws of each session of the
legislature as follows:
(1) one copy each to:
(A) the governor;
(B) the lieutenant governor;
(C) the speaker of the house of representatives;
(D) each court of appeals; and
(E) each county law library;
(2) [10 copies to the Texas Legislative Council;
[(3)] 15 copies to the Legislative Reference Library;
(3) [(4)] 30 copies to the State Law Library; and
(4) [(5)] 60 copies to the Texas State Library.
SECTION 55.36. Subsection (c), Section 201.403,
Transportation Code, is amended to read as follows:
(c) Not later than February 1 of each year, the director
shall report to the commission, each house of the legislature, and
the Performance Review [Sunset Advisory] Commission on the
department's progress in the recruitment and hiring of women and
minority applicants.
SECTION 55.37. Subsection (c), Section 41.060, Utilities
Code, is amended to read as follows:
(c) The commission shall prepare a report for the
Performance Review [Sunset Advisory] Commission that includes
information submitted and responses by electric cooperatives in
accordance with the Performance Review [Sunset Advisory]
Commission's schedule for reviewing the commission.
SECTION 55.38. Subsection (a), Section 12, Chapter 357,
Acts of the 64th Legislature, Regular Session, 1975 (Article
4413(32e), Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) The [Texas Legislative Council, the] Legislative Budget
Board, [the Legislative Audit Committee,] the Advisory Commission
on Intergovernmental Relations, and the Division of Planning
Coordination shall, through their respective administrative
officers, furnish staff assistance to the committee upon request.
SECTION 55.39. Subsection (a), Section 11, Chapter 672,
Acts of the 65th Legislature, Regular Session, 1977 (Article
4413(42a), Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) The [Texas Legislative Council, the] Legislative Budget
Board, [the Legislative Audit Committee,] the Texas Advisory
Commission on Intergovernmental Relations, and the Division of
Planning Coordination shall, through their respective
administrative officers, furnish staff assistance to the committee
upon request.
PART 6. TRANSITION
SECTION 55.40. (a) The Texas Legislative Council is
abolished effective September 1, 2003.
(b) On September 1, 2003:
(1) all functions and activities assigned to or
performed by the information systems division of the Texas
Legislative Council immediately before that date are transferred to
the Legislative Information Services Board;
(2) all funds, obligations, contracts, property, and
records of the Texas Legislative Council relating to the services
performed by the information systems division of the Texas
Legislative Council are transferred to the Legislative Information
Services Board;
(3) all employees of the information systems division
of the Texas Legislative Council become employees of the
Legislative Information Services Board;
(4) all of the property and records of the Texas
Legislative Council relating to the services performed by the legal
and research divisions of the Texas Legislative Council are
transferred to either the senate or the house of representatives,
as determined by the lieutenant governor and the speaker of the
house of representatives;
(5) all employees of the legal and research divisions
of the Texas Legislative Council become employees of either the
senate or house of representatives, as determined by the lieutenant
governor and the speaker of the house of representatives; and
(6) a reference in law to the Texas Legislative
Council that relates to the services performed by the information
systems division of the Texas Legislative Council means the
Legislative Information Services Board.
SECTION 55.41. (a) The office of state auditor and the
legislative audit committee are abolished but continue in effect
until December 1, 2003, for the sole purpose of transferring to the
Legislative Budget Board all the rights, powers, duties, and
functions exercised by the state auditor and the legislative audit
committee immediately before the effective date of this Act. The
transfer must be completed not later than December 1, 2003.
(b) All the funds, contracts, property, personnel, and
records of the office of the state auditor and the legislative audit
committee are transferred to the Legislative Budget Board for the
purpose of performing the audit functions that the state auditor
was authorized or required to perform immediately before the
effective date of this Act.
(c) A reference in law or in an administrative rule to the
state auditor or the office of the state auditor or the legislative
audit committee means the Legislative Budget Board.
(d) A reference in law to a financial or compliance audit
under Chapter 321, Government Code, as repealed by this Act, means
an audit under Chapter 322, Government Code, as amended by this Act.
(e) A reference in law to an efficiency audit, an economy
audit, or a program audit under Chapter 321, Government Code, as
repealed by this Act, means an audit under Chapter 325, Government
Code (Texas Sunset Act), as amended by this Act.
SECTION 55.42. (a) The Sunset Advisory Commission is
abolished and the offices of the members of the commission serving
on the effective date of this Act are abolished.
(b) The validity of an action taken by the Sunset Advisory
Commission before it is abolished under Subsection (a) of this
section is not affected by the abolishment.
SECTION 55.43. On September 1, 2003:
(1) a rule, standard, or form adopted by the Sunset
Advisory Commission is a rule, standard, or form of the Performance
Review Commission and remains in effect until changed by the
Performance Review Commission;
(2) a reference in law to the Sunset Advisory
Commission means the Performance Review Commission;
(3) all money, contracts, leases, rights, and
obligations of the Sunset Advisory Commission are transferred to
the Performance Review Commission;
(4) all property, including records, in the custody of
the Sunset Advisory Commission becomes the property of the
Performance Review Commission; and
(5) all funds appropriated by the legislature to the
Sunset Advisory Commission are transferred to the Performance
Review Commission.
SECTION 55.44. On September 1, 2003, the lieutenant
governor shall assume the chairmanship of the Legislative
Information Services Board and the speaker of the house of
representatives shall assume the vice chairmanship of the board.
The initial terms of the lieutenant governor and the speaker of the
house of representatives expire February 1, 2005.
ARTICLE 56. ENERGY CONSERVATION IN STATE BUILDINGS
SECTION 56.01. Subsection (e), Section 447.004, Government
Code, as amended by Chapters 573, 1158, and 1398, Acts of the 77th
Legislature, Regular Session, 2001, is reenacted and amended to
read as follows:
(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 appropriate authority having
jurisdiction [agency or institution] that the construction or
renovation complies with:
(A) the standards established under this
section; and
(B) the alternative energy and energy-efficient
architectural and engineering design evaluation requirements under
Sections 2166.401, 2166.403, and 2166.408; and
(2) provided [a copy of that certification] to the
appropriate authority having jurisdiction and the state energy
conservation office copies of:
(A) each certification under Subdivision (1);
and
(B) any written evaluation or detailed economic
feasibility study prepared in accordance with Section 2166.401,
2166.403, or 2166.408.
SECTION 56.02. Subsection (a), Section 2166.153,
Government Code, is amended to read as follows:
(a) A project analysis consists of:
(1) a complete description of the project and a
justification of the project prepared by the using agency;
(2) a detailed estimate of the amount of space needed
to meet the needs of the using agency and to allow for realistic
growth;
(3) a description of the proposed project prepared by
a design professional that:
(A) includes schematic plans and outline
specifications describing the type of construction and probable
materials to be used; and
(B) is sufficient to establish the general scope
and quality of construction;
(4) an estimate of the probable cost of construction;
(5) a description of the proposed site of the project
and an estimate of the cost of site preparation;
(6) an overall estimate of the cost of the project,
including necessary funding for life-cycle costing, whole building
integrated design, commissioning, and postoccupancy building
performance verification;
(7) information prepared under Section 2166.451 about
historic structures considered as alternatives to new
construction;
(8) an evaluation of energy alternatives and
energy-efficient architectural and engineering design alternatives
as required by Sections [Section] 2166.401, 2166.403, and 2166.408;
and
(9) other information required by the commission.
SECTION 56.03. The section heading to section 2166.403,
Government Code, is amended to read as follows:
Sec. 2166.403. ALTERNATIVE ENERGY AND ENERGY-EFFICIENT
ARCHITECTURAL AND ENGINEERING DESIGN IN NEW BUILDING CONSTRUCTION.
SECTION 56.04. Section 2166.403, Government Code, is
amended by amending Subsections (b) and (c) and adding Subsections
(b-1) and (b-2) to read as follows:
(b) During the planning phase of the proposed construction,
the commission, or the governing body of the appropriate agency or
institution that is undertaking a project otherwise exempt from
this chapter under Section 2166.003, must present a detailed
written evaluation at [shall verify in] an open meeting to verify
the economic feasibility of:
(1) using energy-efficient architectural or
engineering design alternatives; or
(2) incorporating into the building's design and
proposed energy system alternative energy devices for space heating
and cooling, water heating, electrical loads, and interior
lighting.
(b-1) A detailed written evaluation under Subsection (b)
must be made available to the public at least 30 days before the
open meeting at which it is presented.
(b-2) In each detailed written evaluation under Subsection
(b), the [The] commission or governing body shall determine
economic feasibility for each function by comparing the estimated
cost of providing energy for all or part of the function using
conventional design practices and energy systems or operating under
conventional architectural or engineering designs with the
estimated cost of providing energy for all or part of the function
using alternative energy devices or operating under alternative
energy-efficient architectural or engineering designs during the
economic life of the building. The comptroller's state energy
conservation office, or its successor, must approve any methodology
or electronic software used by the commission or governing body, or
an entity contracting with the commission or governing body, to
make a comparison or determine feasibility under this subsection.
(c) If the use of alternative energy devices or
energy-efficient architectural design alternatives for a
particular function is determined to be economically feasible under
Subsection (b-2) [(b)], the commission or governing body shall
include the use of alternative energy devices or energy-efficient
architectural design alternatives for that function in the
construction plans.
SECTION 56.05. Subdivision (1), Subsection (d), Section
2166.403, Government Code, is amended to read as follows:
(1) "Alternative energy" means a renewable energy
resource. The term includes solar energy, biomass energy,
geothermal energy, and wind energy.
SECTION 56.06. Subchapter I, Chapter 2166, Government Code,
is amended by adding Section 2166.408 to read as follows:
Sec. 2166.408. EVALUATION OF ARCHITECTURAL AND ENGINEERING
DESIGN ALTERNATIVES. (a) For each project for which a project
analysis is prepared under Subchapter D and for which architectural
or engineering design choices will affect the energy efficiency of
the building, the commission or the private design professional
retained by the commission shall prepare a written evaluation of
energy-efficient architectural or engineering design alternatives
for the project.
(b) The evaluation must include information about the
economic and environmental impact of various energy-efficient
architectural or engineering design alternatives, including an
evaluation of economic and environmental costs both initially and
over the life of the architectural or engineering design.
(c) The evaluation must identify the best architectural and
engineering designs for the project considering both economic and
environmental costs and benefits.
SECTION 56.07. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
this article to take effect immediately, this article takes effect
September 1, 2003.
ARTICLE 57. PAUL C. MORENO STATE OFFICE BUILDING
SECTION 57.01. The state office building located in El
Paso, Texas, shall be known as the "Paul C. Moreno State Office
Building", in honor of State Representative Paul C. Moreno.
SECTION 57.02. The Texas Building and Procurement
Commission shall take appropriate action to ensure the building is
identified as provided by this article.
ARTICLE 58. SALE OF DESERT PLANTS
SECTION 58.01. Subtitle F, Title 5, Agriculture Code, is
amended by adding Chapter 122 to read as follows:
CHAPTER 122. SALE OF DESERT PLANTS
Sec. 122.001. DEFINITION. In this chapter, "desert plant"
means the following genera of plants:
(1) Agave;
(2) Ariocarpus;
(3) Echinocactus;
(4) Echinocereus;
(5) Ferocactus;
(6) Fouquieria;
(7) Mammillaria;
(8) Opuntia; and
(9) Yucca.
Sec. 122.002. ADMINISTRATION. The department shall
administer this chapter and adopt rules necessary for its
enforcement.
Sec. 122.003. REQUIREMENTS FOR SALE OR TRANSPORT. Unless a
desert plant is marked as provided by Section 122.005, a person may
not:
(1) sell the plant;
(2) offer the plant for sale; or
(3) transport the plant out of this state.
Sec. 122.004. REGISTRATION REQUIRED. (a) A person who
grows or harvests a desert plant for sale must register with the
department.
(b) A person described by Subsection (a) must include the
following with the registration information provided to the
department:
(1) a statement that the desert plants provided for
sale will be harvested from the person's property; or
(2) written documentation from the owner of the
property from which the desert plants will be harvested granting
the person selling or offering to sell the plants the authority to
harvest the plants.
Sec. 122.005. MARKING OF DESERT PLANTS. (a) A person
subject to Section 122.004 shall mark each desert plant harvested
for sale under this chapter with an identification mark prescribed
by the department.
(b) The department may charge a fee for providing an
identification mark under this section.
Sec. 122.006. STOP-SALE ORDER. In enforcing this chapter,
the department may issue and enforce a written or printed order to
stop the sale of a desert plant or a shipment of desert plants that
is not marked as provided by Section 122.005. If an order is
issued, a person may not sell the plant or shipment until it has
been properly marked.
Sec. 122.007. AUTHORITY TO SEIZE PLANTS. In enforcing this
chapter, the department with or without process may seize a desert
plant or a shipment of desert plants that is:
(1) not marked as provided by Section 122.005; and
(2) intended for transfer out of this state.
Sec. 122.008. PENALTY. (a) A person commits an offense if
the person advertises, sells, or offers for sale a desert plant or a
shipment of desert plants that is not clearly and distinctly marked
as provided by Section 122.005.
(b) An offense under this section is punishable by:
(1) a fine not to exceed $1,000;
(2) imprisonment for a term not to exceed 180 days; or
(3) both fine and imprisonment under this subsection.
SECTION 58.02. Section 12.020, Agriculture Code, is amended
by amending Subsections (a) and (b) and adding Subsection (c-1) to
read as follows:
(a) If a person violates a provision of this code described
by Subsection (c) or (c-1) [of this section] or a rule or order
adopted by the department under a provision of this code described
by Subsection (c) or (c-1) [of this section], the department may
assess an administrative penalty against the person as provided by
this section.
(b) The penalty for each violation may be in an amount not to
exceed the maximum provided by Subsection (c) or (c-1) [of this
section]. Each day a violation continues or occurs may be
considered a separate violation for purposes of penalty
assessments.
(c-1) In addition to provisions described by Subsection
(c), Chapter 122 is subject to this section and the applicable
penalty amount is $500.
SECTION 58.03. Not later than December 1, 2003, the
Department of Agriculture shall adopt rules to administer Chapter
122, Agriculture Code, as added by this article.
SECTION 58.04. Chapter 122, Agriculture Code, as added by
this article, and Section 12.020, Agriculture Code, as amended by
this article, take effect January 1, 2004.
ARTICLE 59. CONTINUING EDUCATION EXEMPTION
SECTION 59.01. Any requirement for continuing education
hours because of any professional certification license, or other
form of authorization, held by a member of the legislature or an
employee of the legislative branch of government is satisfied
because of the person's legislative service during the period the
person holds office or is employed in the legislative branch. This
section supersedes any other applicable law to the extent of any
conflict.
ARTICLE 60. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY LANDFILL
REGULATION
SECTION 60.01. As soon as practicable after the effective
date of this article, the Texas Commission on Environmental Quality
shall adopt rules governing all aspects of the management and
operation of a new commercial landfill facility that proposes to
accept nonhazardous industrial solid waste for which a permit has
not been issued on or before the effective date of this article.
SECTION 60.02. (a) The Texas Commission on Environmental
Quality shall suspend the permitting process for any pending
application for a permit for a new commercial landfill facility
that proposes to accept nonhazardous industrial solid waste until
the rules adopted under Section 60.01 of this article take effect.
(b) The Texas Commission on Environmental Quality shall
provide that the rules adopted under Section 60.01 of this article
apply to every application for a permit for a new commercial
landfill facility that proposes to accept nonhazardous industrial
solid waste that is filed on or after the effective date of this
article and every application for a permit for a new commercial
landfill facility that proposes to accept nonhazardous industrial
solid waste that is pending on the effective date of this article.
(c) The Texas Commission on Environmental Quality may allow
an applicant who filed such an application that is pending on the
effective date of this article to amend the application to conform
to the rules adopted under Section 60.01 of this article.
ARTICLE 61. CONFLICTS CLAUSE; EFFECTIVE DATE
SECTION 61.01. In the event of a conflict between a
provision of this Act and another Act passed by the 78th
Legislature, Regular Session, 2003, that becomes law, this Act
prevails and controls regardless of the relative dates of
enactment.
SECTION 61.02. Except as otherwise provided by this Act,
this Act takes effect September 1, 2003.