By: Ellis S.B. No. 1952
(In the Senate - Filed May 15, 2003; May 15, 2003, read
first time and referred to Committee on Government Organization;
May 20, 2003, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 6, Nays 0; May 20, 2003,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1952 By: Ellis
A BILL TO BE ENTITLED
AN ACT
relating to the reorganization of, efficiency in, and other reform
measures applying to state government.
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Safety of the State of Texas until amended or repealed by the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.
ARTICLE 4. MANAGEMENT AND CONSTRUCTION OF STATE AGENCY OFFICE
SPACE
SECTION 4.01. 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 4.02. The change in law made by Section 4.01 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 4.03. 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. Subsection (a), Section 2175.134, Government
Code, is amended 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].
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. Subsection (a), Section 2175.191, Government
Code, is amended 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].
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) and (f) to
read as follows:
(d) Membership in the employee class begins on the 91st day
after the first day a person is employed or holds office.
(e) 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.
(f) Notwithstanding any other provision of law, a member may
establish credit only as provided by Section 813.514 for service
performed during the 90-day waiting period provided by Subsection
(d) or (e).
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 credit under this section in the
employee class only for service performed during the 90-day waiting
period provided by Section 812.003(d) or (e).
(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), (d), and (e) to read as follows:
(c) Membership in the retirement system begins on the 91st
day after the first day a person is employed or holds office.
(d) A person who is reemployed or who again holds office
after withdrawing contributions for previous service credit begins
membership on the 91st day after the first day the person is
reemployed or again holds office.
(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).
SECTION 6.04. 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 the 90-day waiting period
provided by Section 822.001(c) or (d).
(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 6.05. 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 6.06. 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.
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. DEFINITION. In this chapter, "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 September 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. 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.
(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 $23 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) After making a determination that an emergency exists,
the governor may submit to the Legislative Budget Board a plan that:
(1) identifies the emergency in reasonable detail; and
(2) proposes changes in the organization and
operations of a state agency that the governor considers necessary
as a result of the emergency.
(c) If the Legislative Budget Board agrees with the
governor's determination under Subsection (b), 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.
(d) An emergency order issued jointly by the governor and
the Legislative Budget Board under this section has the force and
effect of law.
(e) 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. TEXAS TRANSPORTATION INSTITUTE
SECTION 18.01. Chapter 88, Education Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. TEXAS TRANSPORTATION INSTITUTE
Sec. 88.301. DEFINITION. In this subchapter, "institute"
means the Texas Transportation Institute, a component of The Texas
A&M University System.
Sec. 88.302. FUNDING; LIMITATION ON GENERAL REVENUE.
(a) General revenue of the state may not be appropriated or used to
fund an activity or program of the institute if money from the state
highway fund could lawfully be appropriated and used to fund the
activity or program.
(b) In any request or proposal by the board to the
legislature, Legislative Budget Board, or Texas Higher Education
Coordinating Board for an appropriation for the institute, the
board shall include a description of each major activity or program
of the center and a statement of the board's opinion whether the
activity or program could be lawfully funded in whole or part by
money from the state highway fund.
SECTION 18.02. Section 88.302, Education Code, as added by
this article, does not affect the validity of an appropriation made
to the Texas Transportation Institute before the effective date of
this article or the use of the appropriated money by the
institution.
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. TEXAS INNOCENCE COMMISSION
SECTION 21.01. Chapter 43, Code of Criminal Procedure, is
amended by adding Article 43.27 to read as follows:
Art. 43.27. TEXAS INNOCENCE COMMISSION
Sec. 1. CREATION. The Texas Innocence Commission is
created on the date the governor determines the need for the
creation of the commission.
Sec. 2. COMPOSITION. (a) The commission is composed of
nine members. The governor shall appoint two members, one of whom
must be a dean of a law school and one of whom must be a law
enforcement officer. The attorney general shall appoint one
member, who must be an attorney who represents the state in the
prosecution of felonies. The chair of the criminal justice
committee of the senate shall appoint one member, who may be a
member of the legislature. The chair of the criminal jurisprudence
committee of the house of representatives shall appoint one member,
who may be a member of the legislature. The chief justice of the
supreme court shall appoint one member, who must be a member of the
judiciary. The chancellor of The University of Texas System shall
appoint two members, one who must be a law professor and one who
must work in the forensic science field. The Texas Criminal Defense
Lawyers Association shall appoint one member, who must be a
criminal defense lawyer.
(b) Each member serves a two-year term.
(c) The governor shall designate a member to serve as
presiding officer.
Sec. 3. DUTIES. (a) The commission shall investigate
thoroughly all post-conviction exonerations, including convictions
vacated based on a plea to time served, to:
(1) ascertain errors and defects in the criminal
procedure used to prosecute the defendant's case at issue;
(2) identify errors and defects in the criminal
justice process in this state generally;
(3) develop solutions and methods to correct the
identified errors and defects; and
(4) identify procedures and programs to prevent future
wrongful convictions.
(b) The commission may enter into contracts for research
services as considered necessary to complete the investigation of a
particular case, including forensic testing and autopsies.
(c) The commission may administer oaths and issue
subpoenas, signed by the presiding officer, to compel the
production of documents and the attendance of witnesses as
considered necessary to conduct a thorough investigation. A
subpoena of the commission shall be served by a peace officer in the
manner in which district court subpoenas are served. On
application of the commission, a district court of Travis County
shall compel compliance with the subpoena in the same manner as for
district court subpoenas.
Sec. 4. REPORT. (a) The commission shall compile a
detailed annual report of its findings and recommendations,
including any proposed legislation to implement procedures and
programs to prevent future wrongful convictions.
(b) The report shall be made available to the public on
request.
(c) The findings and recommendations contained in the
report may not be used as binding evidence in a subsequent civil or
criminal proceeding.
Sec. 5. SUBMISSION. The commission shall submit the report
described by Section 4 to the governor, the lieutenant governor,
and the speaker of the house of representatives not later than
December 1 of each even-numbered year.
Sec. 6. RESPONSE. Not later than the 60th day after the
date of receipt of the report required by this article, the
governor, lieutenant governor, and speaker of the house of
representatives shall, singly or jointly, issue a formal written
response to the findings and recommendations of the commission.
Sec. 7. REIMBURSEMENT. A member of the commission is not
entitled to compensation but is entitled to reimbursement for the
member's travel expenses as provided by Chapter 660, Government
Code, and the General Appropriations Act.
Sec. 8. ASSISTANCE. The Texas Legislative Council, the
Legislative Budget Board, the Criminal Justice Policy Council, and
The University of Texas at Austin shall assist the commission in
performing the commission's duties.
Sec. 9. OTHER LAW. The commission is not subject to Chapter
2110, Government Code.
SECTION 21.02. The appointments to the Texas Innocence
Commission as required by Article 43.27, Code of Criminal
Procedure, as added by this article, shall be made not later than
the 60th day after the commission is created.
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.
(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 Legislative Budget
Board.
(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
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) 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. (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 25.06. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect 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) "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.
(2) "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.
(3) "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.
(4) "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.
(5) "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 that enters into a contract with a state
governmental entity that involves the expenditure of more than $1
million 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; and
(2) annually during the contract period submit to the
entity a certified audit of the company's operations, except as
provided by Subsection (g).
(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) 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.
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. 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 30.07. 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. CONFLICTS CLAUSE; EFFECTIVE DATE
SECTION 38.01. 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 38.02. Except as otherwise provided by this Act,
this Act takes effect September 1, 2003.
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