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79S10029 JJT-D
By: Keffer of Eastland H.B. No. 23
A BILL TO BE ENTITLED
AN ACT
relating to state and certain local fiscal matters; providing civil
and criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 103.051, Civil Practice and Remedies
Code, is amended by amending Subsection (a) and adding Subsection
(b-1) to read as follows:
(a) To apply for compensation under this subchapter, the
claimant must file with the comptroller's judiciary section:
(1) an application for compensation provided for that
purpose by the comptroller;
(2) a verified copy of the pardon or court order
justifying the application for compensation; and
(3) a statement provided by the Texas Department of
Criminal Justice verifying the length of incarceration[; and
[(4) a certification of the claimant's actual
innocence of the crime for which the claimant was sentenced that is
signed by the attorney representing the state in the prosecution of
felonies in the county in which the sentence was rendered].
(b-1) The comptroller's duty on receipt of an application is
limited to the ministerial function of determining the completeness
of the application. If the comptroller determines that the
claimant's application does not provide all of the documentation
required by Subsection (a), the comptroller shall deny the claim
without prejudice.
SECTION 2. Article 103.002, Code of Criminal Procedure, is
amended to read as follows:
Art. 103.002. CERTAIN COSTS BARRED. (a) An officer may not
impose a cost or fee for a service not performed or for a service or
purpose for which a cost or fee is not expressly provided by law.
(b) All moneys collected as costs or fees that are not
expressly provided by law shall be remitted to the comptroller for
deposit into the general revenue fund to be administered under
Chapters 101 and 111, Tax Code.
SECTION 3. Article 103.0031(e), Code of Criminal Procedure,
is amended to read as follows:
(e) If a county or municipality has entered into a contract
under Subsection (a) and a person pays an amount that is less than
the aggregate total to be collected under Subsections (a) and (b),
[the allocation to the comptroller, the county or municipality,
and] the private attorney or vendor shall receive 30 percent of the
total amount collected, not to exceed the amount added as the
collection fee, and the remainder of the amount collected shall be
allocated in accordance with this chapter and Chapter 133, Local
Government Code [be reduced proportionately].
SECTION 4. Section 43.002(a), Education Code, is amended to
read as follows:
(a) On the first working day of each month in a state fiscal
year, the agency [comptroller] shall transfer from the permanent
school fund to the available school fund an amount equal to
one-twelfth of the annual distribution from the permanent school
fund to the available school fund as provided by Section 5(a),
Article VII, Texas Constitution, for the fiscal year.
SECTION 5. Section 51.009(c), Education Code, is amended to
read as follows:
(c) Each of the following shall be accounted for as
educational and general funds:
(1) net tuition, special course fees charged under
Sections 54.051(e) and (l), lab fees, student teaching fees,
organized activity fees, and proceeds from the sale of educational
and general equipment[, and indirect cost recovery fees]; and
(2) hospital and clinic fees received by a state-owned
clinical care facility that is operated using general revenue fund
appropriations for patient care.
SECTION 6. Section 63.202, Education Code, is amended by
amending Subsection (b) and adding Subsection (h) to read as
follows:
(b) Except as provided by Subsections (c), [and] (d), and
(h), money in the fund established under this subchapter may not be
used for any purpose.
(h) Expenses of managing and administering the assets of the
fund shall be paid from the fund.
SECTION 7. Section 63.302, Education Code, is amended by
amending Subsection (b) and adding Subsection (h) to read as
follows:
(b) Except as provided by Subsections (c), [and] (e), and
(h), money in the fund established under this subchapter may not be
used for any purpose.
(h) Expenses of managing and administering the assets of the
fund shall be paid from the fund.
SECTION 8. Sections 25.0015(b) and (c), Government Code,
are amended to read as follows:
(b) For a county that participates under Section 51.702(f)
under a resolution adopted and filed with the comptroller before
September 1, 2003, the amount shall be paid to the county's salary
fund in equal quarterly [monthly] installments, and of each $35,000
paid a county, $30,000 shall be paid from funds appropriated from
the judicial fund, and $5,000 shall be paid from funds appropriated
from the general revenue fund.
(c) For a county that participates under Section 51.702(f)
under a resolution adopted or filed with the comptroller on or after
September 1, 2003, the amount shall be paid to the county's salary
fund in equal quarterly [monthly] installments from funds
appropriated from the judicial fund.
SECTION 9. Section 25.00211(b), Government Code, is amended
to read as follows:
(b) The amount shall be paid to the county treasury for
deposit in the contributions fund created under Section 25.00213 in
equal quarterly [monthly] installments from funds appropriated
from the judicial fund.
SECTION 10. Section 26.007(b), Government Code, is amended
to read as follows:
(b) The amount shall be paid to the county's salary fund in
equal quarterly [monthly] installments from funds appropriated
from the judicial fund.
SECTION 11. Sections 74.061(c) and (h), Government Code,
are amended to read as follows:
(c) [The salary of a retired judge or justice while assigned
under this chapter shall be paid out of money appropriated from the
general revenue fund for that purpose in an amount equal to the
compensation received from state and county sources of the judge of
the court to which he is assigned.] The salary of a retired judge or
justice while assigned shall be determined pro rata for the period
of time that the judge or justice actually sits as the assigned
judge. The salary of a retired statutory county court judge
assigned under this chapter to serve in a district court shall be
paid by the state in the same manner as the salary of a retired
district judge assigned under this chapter to serve in a district
court is paid by the state.
(h) Notwithstanding Subsection (d) [(c)], the salary from
the state of a retired judge or justice assigned to a district court
is determined pro rata on [the sum of the regular judge's salary
from the county plus] the greater of:
(1) the regular judge's salary from the state on August
31, 1997; or
(2) 85 percent of the regular judge's salary from the
state, or a greater percentage of that salary, not to exceed 100
percent, as established by the General Appropriations Act for any
fiscal year.
SECTION 12. Section 2107.003, Government Code, is amended
to read as follows:
Sec. 2107.003. COLLECTION BY ATTORNEY GENERAL,
COMPTROLLER, OR OUTSIDE AGENT. (a) Except as provided by Section
2107.004 [Subsection (c)], a state agency shall report an
uncollected and delinquent obligation to [request] the attorney
general for collection. The state agency must report the
obligation on or before the 120th day after the date the obligation
becomes past due or delinquent [to collect an obligation before the
agency may employ, retain, or contract with a person other than a
full-time employee of the state agency to collect the obligation].
(b) The attorney general:
(1) shall provide legal services for collection of the
obligation;
(2) may authorize the requesting state agency to
employ, retain, or contract, subject to approval by the attorney
general, with one or more persons to collect the obligation; or
(3) if the attorney general determines it to be
economical and in the best interest of the state, may contract with
one or more persons [a person other than a full-time employee of the
agency] to collect the [an] obligation [that the attorney general
cannot collect].
(c) The comptroller may employ, retain, or contract with a
person other than a full-time state employee to collect delinquent
obligations that are owed the comptroller in the comptroller's
official capacity, are not collected through normal collection
procedures, and do not meet the guidelines adopted for collection
by the attorney general. A proposed contract under this subsection
shall be reviewed by the attorney general and may include a
collection fee computed on the amounts collected under the
contract.
(d) The agency contracting under Subsection (b) is entitled
to recover from the obligor, in addition to the amount of the
obligation, the costs incurred in undertaking the collection,
including the costs of a contract under this section. The obligor
is liable for costs of recovery under this section in an amount
equal to 30 percent of the sum of the amount of the obligation and
any penalty and interest due on the obligation.
(e) A contract formed under Subsection (b) must provide for
the compensation due to the contractor. The amount of the
compensation shall be equal to 30 percent of the sum of the
collected amount of:
(1) the obligation;
(2) any penalty; and
(3) any interest.
(f) A contract formed under Subsection (b) or (c) may permit
or require the contractor to pursue a judicial action to collect the
amount of the obligation in a proper court in or outside of this
state.
(g) In a suit in a Texas state court brought by a contractor
to collect an obligation under this section, the state is not:
(1) required to post security for costs;
(2) liable for costs; and
(3) liable for fees for:
(A) service of process;
(B) attorneys ad litem;
(C) arbitration; or
(D) mediation.
(h) An amount collected under a contract formed under
Subsection (b), including the costs of recovery and court costs or
other costs, shall be deposited in the fund or account to which the
obligation was required to be deposited. The contracting agency
shall pay the compensation due under the contract to the contractor
and shall pay to the applicable court any court costs collected.
(i) The contracting agency shall require a person
contracting under Subsection (b) to post a bond or other security in
an amount the contracting agency determines is sufficient to cover
all revenue or other property of the state that is expected to come
into the possession or control of the contractor in the course of
providing contract services.
(j) A person who contracts under Subsection (b) is an agent
of this state for purposes of determining priority of a claim to be
collected under the contract with respect to claims of other
creditors. The contractor does not exercise any sovereign power of
the state.
(k) The contracting state agency may provide a person
contracting under Subsection (b) any information, including
confidential information, that the agency is not prohibited from
sharing under an agreement with another state or with the United
States and that is:
(1) in the custody of the agency holding the claim; and
(2) necessary to the collection of the obligation.
(l) A person acting under a contract formed under Subsection
(b) or (c) and each employee or agent of that person is subject to
all prohibitions against the disclosure of confidential
information obtained from the contracting agency, the reporting
state agency, or their employees. A contractor or the contractor's
employee or agent who discloses confidential information in
violation of the prohibition is subject to the same penalties for
that disclosure as would apply to the contracting agency or its
employees.
(m) The contracting agency shall require a person who
contracts under Subsection (b) to obtain and maintain insurance
adequate to provide reasonable coverage for damages negligently,
recklessly, or intentionally caused by the contractor or the
contractor's employee or agent in the course of collecting an
obligation under the contract and to protect this state from
liability for those damages. The state is not liable for and may
not indemnify a person acting under a contract under Subsection (b)
for damages negligently, recklessly, or intentionally caused by the
contractor or the contractor's employee or agent in the course of
collecting an obligation under the contract.
(n) In addition to grounds for termination provided by the
contract terms, the attorney general or the contracting agency, as
applicable, may terminate a contract formed under Subsection (b) if
the contractor or the contractor's employee or agent:
(1) violates the federal Fair Debt Collection
Practices Act (15 U.S.C. Section 1692 et seq.);
(2) discloses confidential information to a person not
authorized to receive the information; or
(3) performs any act that results in a final judgment
for damages against this state.
SECTION 13. Section 2254.102(c), Government Code, is
amended to read as follows:
(c) This subchapter does not apply to a contract:
(1) with an agency to collect an obligation under
Section 2107.003(b); or
(2) for legal services entered into by an institution
of higher education under Section 153.006, Education Code.
SECTION 14. Sections 403.071(g) and (h), Government Code,
are amended to read as follows:
(g) Notwithstanding Subsection (a), the comptroller [and a
state agency] may [contract in writing for the comptroller to]
audit claims presented by a [the] state agency after the
comptroller prepares warrants or uses the electronic funds transfer
system to pay the claims. The [If the comptroller and a state
agency execute a contract, the] comptroller may determine [decide]
the types of claims that will be audited after payment.
(h) [This subsection applies if the comptroller and a state
agency have contracted in accordance with Subsection (g).] The
comptroller shall audit claims after payment under Subsection (g)
in the same manner [way] that the comptroller audits claims before
payment under Subsection (a). The comptroller may establish
requirements and adopt rules concerning the time that a state
agency must retain documentation in its files to enable a
postpayment audit. If a postpayment audit by the comptroller shows
that a claim presented by a state agency was invalid, the
comptroller may:
(1) implement procedures to ensure that similar
invalid claims from the state agency are not paid in the future;
(2) report to the governor, the lieutenant governor,
the speaker of the house of representatives, the state auditor, and
the Legislative Budget Board the results of the audit;
(3) require the state agency to obtain a refund of the
monies from the payee; and
(4) [cancel the contract with the state agency; and
[(5)] reduce the state agency's remaining
appropriations by the amount of the claim.
SECTION 15. Section 403.074(d), Government Code, is amended
to read as follows:
(d) Except as provided by Subsection (g), or Article 26.051,
Code of Criminal Procedure, the comptroller may not pay under this
section a single claim in excess of $25,000, or an aggregate of
claims by a single claimant during a biennium in excess of $25,000.
For the purposes of this subsection, all claims that were
originally held by one person are considered held by a single
claimant regardless of whether those claims were later transferred.
SECTION 16. Section 404.024, Government Code, is amended by
adding Subsection (m) to read as follows:
(m) In entering into a direct security repurchase agreement
or a reverse security repurchase agreement, the comptroller may
agree to accept cash on an overnight basis in lieu of the
securities, obligations, or participation certificates identified
in Section 404.001(3). Cash held by the state under this subsection
is not a deposit of state or public funds for the purposes of any
law, including this subchapter or Subchapter D, that requires a
deposit of state or public funds to be collateralized by eligible
securities.
SECTION 17. Section 404.124(c), Government Code, is amended
to read as follows:
(c) The committee may determine whether the notes will be
sold on a negotiated or competitive bid basis. If the committee
determines that competitive bids are appropriate, the underwriter
of any notes issued under this section shall be selected by the
method of sale that is most advantageous to the state under the
circumstances, including a sale using an Internet auction site. An
[solicitation of sealed bids and an] appropriate bid notice shall
be published at least one time in one or more recognized financial
publications of general circulation published within the state and
one or more recognized financial publications of general
circulation published outside the state. Unless all bids are
rejected, the underwriter shall be selected from the bids received.
The comptroller may not sell the notes in a manner not approved.
SECTION 18. Subchapter A, Chapter 659, Government Code, is
amended by adding Section 659.007 to read as follows:
Sec. 659.007. EARNINGS STATEMENTS. (a) In this section,
"state agency" has the meaning assigned by Section 403.013.
(b) A state agency may provide a written or electronic
earnings statement to an officer or employee of the agency.
(c) The comptroller may adopt rules and establish
procedures concerning the earnings statements provided by state
agencies that under Subchapter C, Chapter 2101, are required to use
the uniform statewide payroll system.
SECTION 19. Section 659.255(a)(3), Government Code, is
amended to read as follows:
(3) "Merit salary increase" means an increase in
compensation to:
(A) a higher step rate in the same classified
salary group, if the classified employee is compensated under a
salary group that is divided into steps [Salary Schedule A of the
General Appropriations Act]; or
(B) a higher rate within the range of the same
classified salary group, if the classified employee is compensated
under a salary group that is not divided into steps [Salary Schedule
B of the General Appropriations Act].
SECTION 20. Sections 659.256(c) and (f), Government Code,
are amended to read as follows:
(c) When an employee is promoted within [to a position in a
higher salary group in] Salary Schedule A of the General
Appropriations Act or from Salary Schedule B or C of the General
Appropriations Act to Salary Schedule A of the General
Appropriations Act, the employee shall receive a salary rate that
is at least 3.4 percent [one step] higher than the employee's salary
rate before promotion or the minimum rate of the new salary range,
whichever is higher, and may, at the discretion of the state agency
administrator, receive an annual salary rate up to and including
the maximum rate of the new salary range. [When an employee is
promoted from a position in Salary Schedule B or C of the General
Appropriations Act to a position in Salary Schedule A of the General
Appropriations Act, the employee shall receive a step rate that is
at least one step above the rate the employee received before
promotion or the minimum rate of the new salary range, whichever is
higher, and may, at the discretion of the state agency
administrator, receive an annual rate up to and including the
maximum rate of the new salary range.]
(f) Notwithstanding the other provisions of this section,
an employee whose salary prior to promotion exceeds the maximum
rate of the employee's assigned salary group may not receive more
than the maximum rate of the new salary group, even if the increase
is less than one step in a salary group that is divided into steps
[Salary Schedule A of the General Appropriations Act] or 3.4
percent in a salary group that is not divided into steps [Salary
Schedule B of the General Appropriations Act].
SECTION 21. Section 659.257(c), Government Code, is amended
to read as follows:
(c) When an employee is demoted within [to a position in a
lower salary group in] Salary Schedule A of the General
Appropriations Act or from Salary Schedule B or C of the General
Appropriations Act to Salary Schedule A of the General
Appropriations Act, the employee will receive a salary rate of at
least 3.4 percent [one step] below the rate the employee received
before demotion. [When an employee is demoted from a position in
Salary Schedule B or C of the General Appropriations Act to a
position in Salary Schedule A of the General Appropriations Act,
the employee shall receive a step rate that is at least 3.4 percent
below the rate the employee received before demotion.]
SECTION 22. Section 660.024(a), Government Code, is amended
to read as follows:
(a) The chief administrator of a state agency must give
advance written approval for any travel related to official state
business for which a reimbursement for travel expenses is claimed
or for which an advance for travel expenses to be incurred is
sought. The advance written approval may be communicated
electronically. [A copy of the written approval shall be submitted
with the travel voucher to the comptroller in accordance with
Section 660.027.]
SECTION 23. Sections 660.027(b), (d), and (e), Government
Code, are amended to read as follows:
(b) A voucher submitted under Subsection (a) is valid only
if:
(1) the state agency submitting the voucher approves
it in accordance with Chapter 2103 and, if required by law,
certifies the voucher; and
(2) the state employee who incurred the travel expense
or, if the employee is unavailable, another individual acceptable
to the comptroller approves the description, information, and
documentation required by Subsection (d) [voucher] in writing or
electronically, except that the employee's approval is not required
if another person is required by law to provide the approval.
(d) A voucher must be supported by:
(1) a description of [describe] the official state
business performed; and
(2) [be accompanied by] the information and
documentation that the comptroller considers necessary for the
comptroller to determine compliance with this chapter, the travel
provisions of the General Appropriations Act, and the rules adopted
by the comptroller under this chapter.
(e) The comptroller may require a state agency to provide to
the comptroller the description, information, and documentation
required under [by] Subsection (d):
(1) on the form adopted by the comptroller under
Subsection (c);
(2) electronically;
(3) by submitting receipts or other documents; or
(4) [(3)] by any [a] combination of Subdivisions (1),
[and] (2), and (3).
SECTION 24. Section 1431.001(2), Government Code, is
amended to read as follows:
(2) "Eligible countywide district" means:
(A) a flood control district or a hospital
district the boundaries of which are substantially coterminous with
the boundaries of a county with a population of three million or
more; or
(B) a hospital district created in a county with
a population of more than 800,000 in which no hospital district was
located before September 1, 2003.
SECTION 25. Section 2256.011, Government Code, is amended
by amending Subsection (a) and adding Subsection (e) to read as
follows:
(a) A fully collateralized repurchase agreement is an
authorized investment under this subchapter if the repurchase
agreement:
(1) has a defined termination date;
(2) except as provided by Subsection (e), is secured
by obligations described by Section 2256.009(a)(1); [and]
(3) requires the securities being purchased by the
entity to be pledged to the entity, held in the entity's name, and
deposited at the time the investment is made with the entity or with
a third party selected and approved by the entity; and
(4) is placed through a primary government securities
dealer, as defined by the Federal Reserve, or a financial
institution doing business in this state.
(e) For purposes of this section, an entity may agree to
secure the agreement by accepting cash on an overnight basis in lieu
of the obligations identified in Section 2256.009(a)(1). Cash held
by an entity under this subsection is not a deposit of public funds
for purposes of any statute, including Chapter 2257, that requires
a deposit of public funds to be collateralized by eligible
securities.
SECTION 26. Section 302.001, Local Government Code, is
amended by amending Subdivision (1) and adding Subdivision (3) to
read as follows:
(1) "Energy savings performance contract" means a
contract for energy or water conservation or usage measures to
reduce energy or water consumption or net operating costs or to
increase energy-related or water-related revenues of local
government facilities in which the estimated savings in utility
costs or the estimated increase in revenues resulting from the
measures is guaranteed to offset the cost of the measures over a
specified period. The term includes a contract for the
installation or implementation of:
(A) insulation of a building structure and
systems within the building;
(B) storm windows or doors, caulking or weather
stripping, multiglazed windows or doors, heat-absorbing or
heat-reflective glazed and coated window or door systems, or other
window or door system modifications that reduce energy consumption;
(C) automatic energy control systems, including
computer software and technical data licenses;
(D) heating, ventilating, or air-conditioning
system modifications or replacements that reduce energy or water
consumption;
(E) lighting fixtures that increase energy
efficiency;
(F) energy recovery systems;
(G) electric systems improvements;
(H) water-conserving fixtures, appliances, and
equipment or the substitution of non-water-using fixtures,
appliances, and equipment;
(I) water-conserving landscape irrigation
equipment;
(J) landscaping measures that reduce watering
demands and capture and hold applied water and rainfall, including:
(i) landscape contouring, including the use
of berms, swales, and terraces; and
(ii) the use of soil amendments that
increase the water-holding capacity of the soil, including compost;
(K) rainwater harvesting equipment and equipment
to make use of water collected as part of a storm-water system
installed for water quality control;
(L) equipment for recycling or reuse of water
originating on the premises or from other sources, including
treated municipal effluent;
(M) equipment needed to capture water from
nonconventional, alternate sources, including air-conditioning
condensate or graywater, for nonpotable uses;
(N) metering equipment [needed to segregate
water use in order to identify water conservation opportunities or
verify water savings]; or
(O) other energy or water conservation-related
improvements or equipment, including improvements or equipment
relating to renewable energy or nonconventional water sources or
water reuse.
(3) "Usage measure" means a technology or practice
related to the use of energy or water.
SECTION 27. Section 302.002(b), Local Government Code, is
amended to read as follows:
(b) Each energy or water conservation or usage measure must
comply with current local, state, and federal construction,
plumbing, and environmental codes and regulations.
Notwithstanding Section 302.001(1), an energy savings performance
contract may not include improvements or equipment that allow or
cause water from any condensing, cooling, or industrial process or
any system of nonpotable usage over which public water supply
system officials do not have sanitary control to be returned to the
potable water supply.
SECTION 28. Section 302.003, Local Government Code, is
amended to read as follows:
Sec. 302.003. PAYMENT AND PERFORMANCE BOND.
Notwithstanding any other law, before entering into an energy
savings performance contract, the governing body of the local
government shall require the provider of the energy or water
conservation or usage measures to file with the governing body a
payment and performance bond relating to the installation of the
measures in accordance with Chapter 2253, Government Code. The
governing body may also require a separate bond to cover the value
of the guaranteed savings on the contract.
SECTION 29. Section 302.004, Local Government Code, is
amended to read as follows:
Sec. 302.004. METHOD OF FINANCING; TERMS OF CONTRACT. (a)
An energy savings performance contract may be financed:
(1) under a lease-purchase contract that has a term
not to exceed 15 years from the final date of installation and that
meets federal tax requirements for tax-free municipal leasing or
long-term financing;
(2) with the proceeds of bonds; or
(3) under a contract with the provider of the energy or
water conservation or usage measures that has a term not to exceed
15 years from the final date of installation.
(b) An energy savings performance contract shall contain
provisions requiring the provider of the energy or water
conservation or usage measures to guarantee the amount of the
savings or the increased revenues, or both, to be realized by the
local government under the contract. If the term of the contract
exceeds one year, the local government's contractual obligations in
any one year during the term of the contract beginning after the
final date of installation may not exceed the total energy, water,
wastewater, and operating cost savings or increased revenues, or
both, including electrical, gas, water, wastewater, or other
utility cost savings and operating cost savings or increased
revenues, or both, resulting from the measures as determined by the
local government in this subsection, divided by the number of years
in the contract term.
SECTION 30. Section 302.005(b), Local Government Code, is
amended to read as follows:
(b) Before entering into an energy savings performance
contract, the governing body must require that the cost savings or
increased revenues, or both, projected by an offeror be reviewed by
a licensed engineer who is not an officer or employee of an offeror
for the contract under review or otherwise associated with the
contract or the offeror. An engineer who reviews a contract shall
maintain the confidentiality of any proprietary information the
engineer acquires while reviewing the contract. Sections 1001.053
and 1001.407, Occupations Code, apply to work performed under the
contract.
SECTION 31. Section 430.003, Local Government Code, is
amended to read as follows:
Sec. 430.003. EXEMPTIONS OF CERTAIN [STATE] PROPERTY FROM
INFRASTRUCTURE FEES. (a) No county, municipality, or utility
district may collect from a state agency or public or private
institution of higher education, including a public junior college
as defined by Section 61.003, Education Code, any fee charged for
the development or maintenance of programs of facilities for the
control of excess water or storm water.
(b) This section as it relates to institutes of higher
education does not apply to a municipality with a population of less
than 25,000.
SECTION 32. Section 433(a), Probate Code, is amended to
read as follows:
(a) Mode of Recovery. When funds of an estate have been paid
to the comptroller, any heir, devisee, or legatee of the estate, or
their assigns, or any of them, may recover the portion of such funds
to which he, she, or they are entitled. The person claiming such
funds shall institute suit on or before the fourth anniversary of
the date of the order requiring payment to the comptroller, by
petition filed in the district court of Travis County, against the
comptroller, setting forth the plaintiff's right to such funds, and
the amount claimed by him. Any heir, devisee, legatee, or their
assigns of an estate whose funds were paid to the state treasurer
under this chapter before September 1, 1991, must initiate suit
under this section not later than September 1, 2009.
SECTION 33. Section 74.101(a), Property Code, is amended to
read as follows:
(a) Each holder who on June 30 holds property that is
presumed abandoned under Chapter 72, 73, or 75 of this code or under
Chapter 154, Finance Code, shall file a report of that property on
or before the following November 1. The comptroller may require the
report to be in a particular format, including an electronic [a]
format that can be read by a computer if the holder is reporting 10
or more items of property.
SECTION 34. Section 74.401, Property Code, is amended by
adding Subsection (f) to read as follows:
(f) The comptroller may sell as a gift, novelty, or
collectible item, but not as an investment, a stock, bond,
certificate, or similar instrument that is nonredeemable and
nontransferable because it has been canceled or issued by a company
that has been dissolved or terminated and the existence of which has
not been revived or reinstated. The comptroller may sell an
instrument under this subsection at a public sale or in another
manner determined to be appropriate by the comptroller, including
an online sale. Before selling an instrument under this
subsection, the comptroller must stamp the face of the instrument
with a prominent mark indicating that the instrument has been
canceled. At the time of the sale and of the delivery of the
instrument to the purchaser, the comptroller must provide written
notice to the purchaser as required by this subsection. The notice
must be printed in a font size that is at least as large as the
largest font size on the page of the notice and include statements
substantially similar to the following:
"(1) the comptroller is not a registered
broker-dealer;
(2) this instrument is not being sold for investment
purposes; and
(3) this instrument is nonredeemable and
nontransferable because it has been canceled or issued by a company
that has been dissolved or terminated and the existence of which has
not been revived or reinstated."
SECTION 35. Section 74.507(b), Property Code, is amended to
read as follows:
(b) The person who informs a potential claimant and by
contract or other written agreement is to receive a percentage of
the value of the property may not file or receive a [form to] claim
form on behalf of a claimant.
SECTION 36. Section 74.601, Property Code, is amended by
adding Subsection (g) to read as follows:
(g) If an owner does not assert a claim for unclaimed funds
reported to the comptroller and the owner is reported to be the
state or a state agency, the comptroller may deposit the unclaimed
funds to the credit of the general revenue fund. The comptroller
may establish procedures and adopt rules as necessary to implement
this section.
SECTION 37. (a) Section 6.03, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a) or any change in the
method or procedure for appointing directors adopted under Section
6.031 before the date this subsection becomes effective, in an
appraisal district established for a county with a population of
less than 5,000, one director is appointed by the governing body of
the most populous municipality that participates in the district,
excluding the population of any portion of a municipality for which
another appraisal district appraises property. The governing body
of the municipality shall make the appointment by resolution and
submit the resolution to the chief appraiser before December 15. If
a vacancy occurs on the board of directors in the position held by
the member appointed by the governing body, the governing body
shall appoint a person to fill the vacancy. The governing body may
recall a member appointed by the governing body by submitting a
resolution to the chief appraiser stating that the municipality is
recalling the member. A change under Section 6.031 made after this
subsection becomes effective is not valid if the governing body
adopts a resolution opposing the change and files it with the chief
appraiser. The municipality is considered to be a taxing unit
entitled to vote on the appointment of board members for purposes of
Section 6.034. The other directors are appointed in the manner
otherwise applicable to the district under this section or Section
6.031 by the other taxing units that participate in the appraisal
district. If those directors are appointed as provided by this
section, the total dollar amount of taxes imposed in the district by
the municipality is excluded from the calculation of the voting
entitlements of the other taxing units. The governing body of the
municipality may not participate in a vote to fill a vacancy in a
position on the board held by a member appointed by the other taxing
units or to recall a member of the board appointed by the other
taxing units.
(b) The change in law made by this section applies only to
the selection of appraisal district directors for terms beginning
on or after January 1, 2006. The change in law made by this section
does not affect the selection of appraisal district directors for
terms beginning before that date.
(c) If the directors of an appraisal district described by
Section 6.03(a-1), Tax Code, as added by this Act, serve staggered
terms, one of the directors must be appointed by the governing body
of the most populous municipality that participates in the district
at:
(1) the first election of directors after the
effective date of this section, if the board of directors consists
of an even number of directors; or
(2) the first election of directors after the
effective date of this section at which the greater number of
directors is elected, if the board of directors consists of an odd
number of directors.
(d) If this section takes effect October 21, 2005, in an
appraisal district in which one member of the board of directors
will be appointed under Section 6.03(a-1), Tax Code, as added by
this Act, for a term beginning January 1, 2006, the chief appraiser
shall indicate on the ballot prepared under Section 6.03(j), Tax
Code, for the October 30, 2006, deadline provided by that section
that one member of the board of directors will be so appointed, that
the number of directors to be appointed using that ballot is reduced
accordingly, and that the municipality entitled to make the
appointment under Section 6.03(a-1) is not entitled to vote to fill
the other board positions. The chief appraiser shall omit from the
ballot the nominations made by the municipality entitled to make
the appointment under Section 6.03(a-1).
(e) This section 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 section takes effect October 21, 2005.
SECTION 38. Subchapter C, Chapter 41, Tax Code, is amended
by adding Section 41.445 to read as follows:
Sec. 41.445. NOTICE OF FILING OF NOTICE OF PROTEST. (a) On
request of a taxing unit that participates in the appraisal
district, the secretary of the appraisal review board shall send by
regular mail to the presiding officer of the governing body of the
taxing unit a copy of each notice of protest pertaining to:
(1) a property that is or may be taxable by the taxing
unit; or
(2) a property that is or may be taxable by the taxing
unit and that is appraised by the chief appraiser at more than a
certain amount, as specified by the taxing unit.
(b) The secretary shall mail a copy of a notice of protest as
required by this section not later than the 10th day after the date
the notice is filed.
SECTION 39. Sections 41.47(a) and (d), Tax Code, are
amended to read as follows:
(a) Not later than the 30th day after the date the notice of
a protest is filed or as soon thereafter as practicable, the [The]
appraisal review board hearing the [a] protest shall determine the
protest and make its decision by written order.
(d) The board shall deliver by certified mail a notice of
issuance of the order and a copy of the order to the property owner
and the chief appraiser. In addition, the board shall send by
regular mail a notice of issuance of the order and a copy of the
order to the presiding officer of the governing body of each taxing
unit to which a copy of the notice of protest was mailed under
Section 41.445.
SECTION 40. Section 43.04, Tax Code, is amended to read as
follows:
Sec. 43.04. SUIT TO COMPEL COMPLIANCE WITH DEADLINES. The
governing body of a taxing unit may sue the chief appraiser or
members of the appraisal review board, as applicable, for failure
to comply with the deadlines imposed by Section 25.22(a), 26.01(a),
[or] 41.12, or 41.47(a). If the court finds that the chief
appraiser or appraisal review board failed to comply for good cause
shown, the court shall enter an order fixing a reasonable deadline
for compliance. If the court finds that the chief appraiser or
appraisal review board failed to comply without good cause, the
court shall enter an order requiring the chief appraiser or
appraisal review board to comply with the deadline not later than
the 10th day after the date the judgment is signed. In a suit
brought under this section, the court may enter any other order the
court considers necessary to ensure compliance with the court's
deadline or the applicable statutory requirements. Failure to obey
an order of the court is punishable as contempt.
SECTION 41. Section 41.445, Tax Code, as added by this Act,
and Sections 41.47 and 43.04, Tax Code, as amended by this Act,
apply only to a protest the notice of which is filed on or after
January 1, 2006.
SECTION 42. (a) Section 151.304(b), Tax Code, is amended to
read as follows:
(b) In this section, "occasional sale" means:
(1) one or two sales of taxable items, other than an
amusement service, at retail during a 12-month period by a person
who does not habitually engage, or hold himself out as engaging, in
the business of selling taxable items at retail;
(2) the sale of the entire operating assets of a
business or of a separate division, branch, or identifiable segment
of a business;
(3) a transfer of all or substantially all the
property used by a person in the course of an activity if after the
transfer the real or ultimate ownership of the property is
substantially similar to that which existed before the transfer;
[or]
(4) the sale of not more than 10 admissions for
amusement services during a 12-month period by a person who does not
hold himself out as engaging, or does not habitually engage, in
providing amusement services; or
(5) the sale of tangible personal property by an
individual if:
(A) the property was originally bought by the
individual or a member of the individual's family for the personal
use of the individual or the individual's family;
(B) the individual does not hold a permit issued
under this chapter and is not required to obtain a permit as a
"seller" or "retailer" as those terms are defined by Section
151.008;
(C) the individual does not employ an auctioneer,
broker, or factor, other than an online auction, to sell the
property; and
(D) the total receipts from sales of the
individual's tangible personal property in a calendar year does not
exceed $3,000.
(b) The change in law made by this section does not affect
tax liability accruing before the effective date of this section.
That liability continues in effect as if this section had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
(c) This section takes effect August 1, 2005, if this Act
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this section takes effect November 1, 2005.
SECTION 43. (a) Subchapter L, Chapter 151, Tax Code, is
amended by adding Section 151.715 to read as follows:
Sec. 151.715. COLLECTION OF AMOUNTS IN EXCESS OF TAX
IMPOSED; CIVIL PENALTY. (a) A person may not collect as a tax
imposed by this chapter:
(1) any amount that exceeds the tax actually imposed
by this chapter on the sale of a taxable item; or
(2) any amount on the sale of an item that is exempt
from the tax imposed by this chapter.
(b) The comptroller shall send a written notice to a person
who violates Subsection (a) that directs the person to cease
collecting amounts described by that subsection. If, after the
person receives two written notices from the comptroller, the
person continues collecting an amount described by that subsection,
the person shall pay a penalty of $1,000 for each sale on which the
person collects an amount described by that subsection.
(c) The penalty provided by this section is assessed without
regard to whether the person against whom the penalty is assessed
remits to the comptroller the excess amounts collected.
(d) Provided, that for the purpose of the notices required
under this section, any person required to collect and remit sales
tax may designate a contact address to which the notice must be sent
before the penalty provided for in this section may be assessed.
(e) The comptroller of public accounts shall adopt rules
relating to the administration of this section which shall include
a safe harbor from the penalties imposed by this section where the
person acted in good faith and the over-collection of the tax was
not the result of a wilful disregard of the comptroller's rules.
(f) Over-collections subject to the penalties provided in
this section shall not constitute grounds for any cause of action by
any person or group of similarly situated persons where the person
making the over-collection remitted the tax to the comptroller and
assigns the right to refund to the consumer who paid the tax.
(g) Businesses which may be regarded as retailers under
Section 151.024 who pre-collect sales tax prior to the final retail
sale are not responsible for civil penalties under this section.
(b) Section 151.715, Tax Code, as added by this section,
applies only to the sale of an item that occurs on or after the
effective date of this section. The sale of an item that occurs
before the effective date of this section is governed by the law in
effect on the date the sale occurred, and the former law is
continued in effect for that purpose.
SECTION 44. Section 162.001, Tax Code, is amended by
amending Subdivisions (9), (19), (20), (42), (43), and (55) and
adding Subdivision (22-a) to read as follows:
(9) "Blending" means the mixing together of one or
more [petroleum] products with other products [another product],
regardless of the original character of the product blended, to
produce a product that is offered for sale, sold, or used as a motor
fuel or [if the product obtained by the blending] is capable of use
in the generation of power for the propulsion of a motor vehicle.
The term does not include mixing that occurs in the process of
refining by the original refiner of crude petroleum or the
commingling of products during transportation in a pipeline.
(19) "Diesel fuel" means kerosene or another liquid,
or a combination of liquids blended together, offered for sale,
sold, [that is suitable for] or used as a fuel for a [for the
propulsion of] diesel-powered engine [motor vehicles]. The term
includes products commonly referred to as kerosene, light cycle
oil, #1 diesel fuel, #2 diesel fuel, dyed or undyed diesel fuel,
aviation jet fuel, biodiesel, distillate fuel, cutter stock, or
heating oil, but does not include gasoline, aviation gasoline, or
liquefied gas.
(20) "Distributor" means a person who acquires motor
fuel, [from a licensed supplier, permissive supplier, or another
licensed distributor and] who makes sales at wholesale, and whose
activities may also include sales at retail. The term includes a
person engaged in the tax-free sale of dyed diesel fuel that is
delivered into the fuel supply tanks of marine vessels.
(22-a) "Dyed diesel fuel dealer" means a dealer who
acquires dyed diesel fuel from a licensed supplier, permissive
supplier, or distributor for resale and delivery by the dealer into
the fuel supply tanks of motorboats, refrigeration units, or other
off-highway equipment at a retail location.
(42) "Motor fuel" means gasoline, diesel fuel,
liquefied gas, and other products that are offered for sale, sold,
or [can be] used as propellants for [to propel] a motor vehicle.
(43) "Motor fuel transporter" means a person who
transports gasoline, diesel fuel, [or] gasoline blended fuel, or
other motor fuel to which the person does not own title outside the
bulk transfer/terminal system by means of a transport vehicle, a
railroad tank car, or a marine vessel.
(55) "Shipping document" means a delivery document
issued [by a terminal or bulk plant operator] in conjunction with
the sale, transfer, or transport [removal] of motor fuel [from the
terminal or bulk plant]. A shipping document issued by a terminal
operator shall be machine printed. All other shipping documents [A
shipping document issued by a bulk plant] shall be typed or
handwritten on a preprinted form or machine printed.
SECTION 45. Section 162.004, Tax Code, is amended by
amending Subsections (a) and (b) and adding Subsections (a-1) and
(h) to read as follows:
(a) A person may not transport in this state any motor fuel
by barge, vessel, railroad tank car, or transport vehicle unless
the person has a shipping document for the motor fuel that complies
with this section.
(a-1) A terminal operator or operator of a bulk plant shall
give a shipping document to the person who operates the barge,
vessel, railroad tank car, or transport vehicle into which motor
fuel is loaded at the terminal rack or bulk plant rack.
(b) A [The] shipping document [issued by the terminal
operator or operator of a bulk plant] shall contain the following
information and any other information required by the comptroller:
(1) the terminal control number of the terminal or
physical address of the bulk plant from which the motor fuel was
received;
(2) the name [and license number] of the purchaser;
(3) the date the motor fuel was loaded;
(4) the net gallons loaded, or the gross gallons
loaded if the fuel was purchased from a bulk plant;
(5) the destination state of the motor fuel, as
represented by the purchaser of the motor fuel or the purchaser's
agent; and
(6) a description of the product being transported.
(h) This section does not apply to motor fuel that is
delivered into the fuel supply tank of a motor vehicle.
SECTION 46. Sections 162.016(a), (b), (d), and (e), Tax
Code, are amended to read as follows:
(a) A person may not import motor fuel to a destination in
this state or export motor fuel to a destination outside this state
by any means unless the person possesses a shipping document for
that fuel [created by the terminal or bulk plant at which the fuel
was received]. The shipping document must include:
(1) the name and physical address of the terminal or
bulk plant from which the motor fuel was received for import or
export;
(2) the name [and federal employer identification
number, or the social security number if the employer
identification number is not available,] of the carrier
transporting the motor fuel;
(3) the date the motor fuel was loaded;
(4) the type of motor fuel;
(5) the number of gallons:
(A) in temperature-adjusted gallons if purchased
from a terminal for export or import; or
(B) in temperature-adjusted gallons or in gross
gallons if purchased from a bulk plant;
(6) the destination of the motor fuel as represented
by the purchaser of the motor fuel and the number of gallons of the
fuel to be delivered, if delivery is to only one state;
(7) the name[, federal employer identification
number, license number, and physical address] of the purchaser of
the motor fuel;
(8) the name of the person responsible for paying the
tax imposed by this chapter, as given to the terminal by the
purchaser if different from the licensed supplier or distributor;
[and]
(9) the destination state of each portion of a split
load of motor fuel if the motor fuel is to be delivered to more than
one state; and
(10) any other information that, in the opinion of the
comptroller, is necessary for the proper administration of this
chapter.
(b) The [terminal or bulk plant shall provide the] shipping
documents shall be provided to the importer or exporter.
(d) A seller, transporter, or receiver of [terminal, a bulk
plant, the carrier, the licensed distributor or supplier, and the
person that received the] motor fuel shall:
(1) retain a copy of the shipping document until at
least the fourth anniversary of the date the fuel is received; and
(2) provide a copy of the document to the comptroller
or any law enforcement officer not later than the 10th working day
after the date a request for the copy is received.
(e) An importer or exporter shall keep in the person's
possession the shipping document [issued by the terminal or bulk
plant] when transporting motor fuel imported into this state or for
export from this state. The importer or exporter shall show the
document to the comptroller or a peace officer on request. The
comptroller may delegate authority to inspect the document to other
governmental agencies. The importer or exporter shall provide a
copy of the shipping document to the person that receives the fuel
when it is delivered.
SECTION 47. Sections 162.101(b) and (c), Tax Code, are
amended to read as follows:
(b) A tax is imposed at the time gasoline is imported into
this state, other than by a bulk transfer, for delivery to a
destination in this state. The supplier or permissive supplier
shall collect the tax imposed by this subchapter from the person who
imports the gasoline into this state. If the seller is not a
supplier or permissive supplier, then the person who imports the
gasoline into this state shall pay the tax.
(c) A tax is imposed on the removal [sale or transfer] of
gasoline from [in] the bulk transfer/terminal system in this state
[by a supplier to a person who does not hold a supplier's license].
The supplier shall collect the tax imposed by this subchapter from
the person who orders the removal from [sale or transfer in] the
bulk transfer terminal system.
SECTION 48. Section 162.103(d), Tax Code, is amended to
read as follows:
(d) A person who sells gasoline in this state, other than by
a bulk transfer, on which tax has not been paid for any purpose
other than a purpose exempt under Section 162.104 shall at the time
of sale collect the tax from the purchaser or recipient of gasoline
in addition to the selling price and is liable to this state for the
taxes imposed [collected at the time and] in the manner provided by
this chapter.
SECTION 49. Section 162.113(d), Tax Code, is amended to
read as follows:
(d) The supplier or permissive supplier shall [has the
right], after notifying the comptroller of the licensed
distributor's or licensed importer's failure to remit taxes under
this section, [to] terminate the ability of the licensed
distributor or licensed importer to defer the payment of gasoline
tax. The supplier or permissive supplier shall reinstate without
delay the right of the licensed distributor or licensed importer to
defer the payment of gasoline tax after the comptroller provides to
the supplier or permissive supplier notice that the licensed
distributor or licensed importer is in good standing with the
comptroller for the purposes of the gasoline tax imposed under this
subchapter.
SECTION 50. Section 162.115, Tax Code, is amended by adding
Subsection (m-1) to read as follows:
(m-1) In addition to the records specifically required by
this section, a license holder shall keep any other record required
by the comptroller.
SECTION 51. Sections 162.116(a) and (d), Tax Code, are
amended to read as follows:
(a) The monthly return and supplements of each supplier and
permissive supplier shall contain for the period covered by the
return:
(1) [the number of net gallons of gasoline received by
the supplier or permissive supplier during the month, sorted by
product code, seller, point of origin, destination state, carrier,
and receipt date;
[(2)] the number of net gallons of gasoline removed at
a terminal rack during the month from the account of the supplier,
sorted by product code, person receiving the gasoline, terminal
code, and carrier;
(2) [(3)] the number of net gallons of gasoline
removed during the month for export, sorted by product code, person
receiving the gasoline, terminal code, destination state, and
carrier;
(3) [(4)] the number of net gallons of gasoline
removed during the month from a terminal located in another state
for conveyance to this state, as indicated on the shipping document
for the gasoline, sorted by product code, person receiving the
gasoline, terminal code, and carrier;
(4) [(5)] the number of net gallons of gasoline the
supplier or permissive supplier sold during the month in
transactions exempt under Section 162.104, sorted by [product code,
carrier,] purchaser[, and terminal code;
[(6) the number of net gallons of gasoline sold in the
bulk transfer/terminal system in this state to any person not
holding a supplier's or permissive supplier's license]; and
(5) [(7)] any other information required by the
comptroller.
(d) For purposes of Subsection (c), all payments or credits
in reduction of a customer's account must be applied ratably
between motor fuels and other goods sold to the customer, and the
credit allowed will be the tax on the number of gallons represented
by the motor fuel portion of the credit. The comptroller may not
require a supplier or permissive supplier to remit from a payment or
credit in reduction of a customer's account any tax for which the
supplier or permissive supplier was allowed to take a credit.
SECTION 52. Section 162.118, Tax Code, is amended to read as
follows:
Sec. 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S
RETURN. The monthly return and supplements of each distributor
shall contain for the period covered by the return:
(1) the number of net gallons of gasoline received by
the distributor during the month, sorted by product code and[,]
seller[, point of origin, destination state, carrier, and receipt
date];
(2) the number of net gallons of gasoline removed at a
terminal rack by the distributor during the month, sorted by
product code, seller, and terminal code[, and carrier];
(3) the number of net gallons of gasoline removed by
the distributor during the month for export, sorted by product
code, terminal code, bulk plant address, destination state, and
carrier;
(4) the number of net gallons of gasoline removed by
the distributor during the month from a terminal located in another
state for conveyance to this state, as indicated on the shipping
document for the gasoline, sorted by product code, seller, terminal
code, bulk plant address, and carrier;
(5) the number of net gallons of gasoline the
distributor sold during the month in transactions exempt under
Section 162.104, sorted by product code and purchaser; and
(6) any other information required by the comptroller.
SECTION 53. Section 162.127, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The comptroller shall issue a refund warrant to a
distributor not later than the 60th day after the date a valid
refund claim is filed with the comptroller. If the comptroller does
not issue the refund warrant by that date, the amount of the refund
draws interest at the rate provided by Section 111.064 beginning on
the 61st day after the date the valid refund claim is filed and
ending on a date not more than 10 days before the date of the refund
warrant.
SECTION 54. Section 162.128(d), Tax Code, is amended to
read as follows:
(d) A supplier, [or] permissive supplier, distributor,
importer, exporter, or blender that determines taxes were
erroneously reported and remitted or that paid more taxes than were
due this state because of a mistake of fact or law may take a credit
on the monthly tax report on which the error has occurred and tax
payment made to the comptroller. The credit must be taken before
the expiration of the applicable period of limitation as provided
by Chapter 111.
SECTION 55. Sections 162.201(b) and (c), Tax Code, are
amended to read as follows:
(b) A tax is imposed at the time diesel fuel is imported into
this state, other than by a bulk transfer, for delivery to a
destination in this state. The supplier or permissive supplier
shall collect the tax imposed by this subchapter from the person who
imports the diesel fuel into this state. If the seller is not a
supplier or permissive supplier, the person who imports the diesel
fuel into this state shall pay the tax.
(c) A tax is imposed on the removal [sale or transfer] of
diesel fuel from [in] the bulk transfer/terminal system [in this
state by a supplier to a person who does not hold a supplier's
license]. The supplier shall collect the tax imposed by this
subchapter from the person who orders the removal from [sale or
transfer in] the bulk transfer/terminal system.
SECTION 56. Section 162.203(d), Tax Code, is amended to
read as follows:
(d) A person who sells diesel fuel in this state, other than
by a bulk transfer, on which tax has not been paid for any purpose
other than a purpose exempt under Section 162.204 shall at the time
of sale collect the tax from the purchaser or recipient of diesel
fuel in addition to the selling price and is liable to this state
for the taxes imposed [collected at the time and] in the manner
provided by this chapter.
SECTION 57. Section 162.204(a), Tax Code, is amended to
read as follows:
(a) The tax imposed by this subchapter does not apply to:
(1) diesel fuel sold to the United States for its
exclusive use, provided that the exemption does not apply to diesel
fuel sold or delivered to a person operating under a contract with
the United States;
(2) diesel fuel sold to a public school district in
this state for the district's exclusive use;
(3) diesel fuel sold to a commercial transportation
company that provides public school transportation services to a
school district under Section 34.008, Education Code, and that uses
the diesel fuel only to provide those services;
(4) diesel fuel exported by either a licensed supplier
or a licensed exporter from this state to any other state, provided
that:
(A) for diesel fuel in a situation described by
Subsection (d), the bill of lading indicates the destination state
and the supplier collects the destination state tax; or
(B) for diesel fuel in a situation described by
Subsection (e), the bill of lading indicates the destination state,
the diesel fuel is subsequently exported, and the exporter is
licensed in the destination state to pay that state's tax and has an
exporter's license issued under this subchapter;
(5) diesel fuel moved by truck or railcar between
licensed suppliers or licensed permissive suppliers and in which
the diesel fuel removed from the first terminal comes to rest in the
second terminal, provided that the removal from the second terminal
rack is subject to the tax imposed by this subchapter;
(6) diesel fuel delivered or sold into a storage
facility of a licensed aviation fuel dealer from which the diesel
fuel will be delivered solely into the fuel supply tanks of aircraft
or aircraft servicing equipment, or sold from one licensed aviation
fuel dealer to another licensed aviation fuel dealer who will
deliver the diesel fuel exclusively into the fuel supply tanks of
aircraft or aircraft servicing equipment;
(7) diesel fuel exported to a foreign country if the
bill of lading indicates the foreign destination and the fuel is
actually exported to the foreign country;
(8) dyed diesel fuel sold or delivered by a supplier to
another supplier and dyed diesel fuel sold or delivered by a
supplier or distributor into the bulk storage facility of a dyed
diesel fuel dealer or dyed diesel fuel bonded user or to a purchaser
who provides a signed statement as provided by Section 162.206;
(9) the volume of water, fuel ethanol, biodiesel, or
mixtures thereof that are blended together with taxable diesel fuel
when the finished product sold or used is clearly identified on the
retail pump, storage tank, and sales invoice as a combination of
diesel fuel and water, fuel ethanol, biodiesel, or mixtures
thereof;
(10) dyed diesel fuel sold by a supplier or permissive
supplier to a distributor, or by a distributor to another
distributor;
(11) dyed diesel fuel delivered by a license holder
into the fuel supply tanks of railway engines, motorboats, or
refrigeration units or other stationary equipment powered by a
separate motor from a separate fuel supply tank;
(12) dyed kerosene when delivered by a supplier,
distributor, or importer into a storage facility at a retail
business from which all deliveries are exclusively for heating,
cooking, lighting, or similar nonhighway use; or
(13) diesel fuel used by a person, other than a
political subdivision, who owns, controls, operates, or manages a
commercial motor vehicle as defined by Section 548.001,
Transportation Code, if the fuel:
(A) is delivered exclusively into the fuel supply
tank of the commercial motor vehicle; and
(B) is used exclusively to transport passengers
for compensation or hire between points in this state on a fixed
route or schedule.
SECTION 58. Section 162.205(a), Tax Code, is amended to
read as follows:
(a) A person shall obtain the appropriate license or
licenses issued by the comptroller before conducting the activities
of:
(1) a supplier, who may also act as a distributor,
importer, exporter, blender, dyed diesel fuel dealer, motor fuel
transporter, or aviation fuel dealer without securing a separate
license, but who is subject to all other conditions, requirements,
and liabilities imposed on those license holders;
(2) a permissive supplier, who may also act as a
distributor, importer, exporter, blender, dyed diesel fuel dealer,
motor fuel transporter, or aviation fuel dealer without securing a
separate license but who is subject to all other conditions,
requirements, and liabilities imposed on those license holders;
(3) a distributor, who may also act as an importer,
exporter, blender, dyed diesel fuel dealer, or motor fuel
transporter without securing a separate license, but who is subject
to all other conditions, requirements, and liabilities imposed on
those license holders;
(4) an importer, who may also act as an exporter,
blender, or motor fuel transporter without securing a separate
license, but who is subject to all other conditions, requirements,
and liabilities imposed on those license holders;
(5) a terminal operator;
(6) an exporter;
(7) a blender;
(8) a motor fuel transporter;
(9) an aviation fuel dealer;
(10) an interstate trucker; [or]
(11) a dyed diesel fuel bonded user; or
(12) a dyed diesel fuel dealer.
SECTION 59. Section 162.206, Tax Code, is amended by
amending Subsection (c) and adding Subsections (c-1), (g-1), and
(k) to read as follows:
(c) A person may not make a tax-free purchase and a licensed
supplier or distributor may not make a tax-free sale to a purchaser
of any dyed diesel fuel under this section using a signed statement
for the first sale or purchase and for any subsequent sale or
purchase[:
[(1) for the purchase or the sale of more than 7,400
gallons of dyed diesel fuel in a single delivery; or
[(2)] in a calendar month for [in which the person has
previously purchased from all sources or in which the licensed
supplier has previously sold to that purchaser] more than:
(1) [(A)] 10,000 gallons of dyed diesel fuel;
(2) [(B)] 25,000 gallons of dyed diesel fuel if the
purchaser stipulates in the signed statement that all of the fuel
will be consumed by the purchaser in the original production of, or
to increase the production of, oil or gas and furnishes the supplier
with a letter of exception issued by the comptroller; or
(3) [(C)] 25,000 gallons of dyed diesel fuel if the
purchaser stipulates in the signed statement that all of the fuel
will be consumed by the purchaser in agricultural off-highway
equipment.
(c-1) The monthly limitations prescribed by Subsection (c)
apply regardless of whether the dyed diesel fuel is purchased in a
single transaction during that month or in multiple transactions
during that month.
(g-1) For purposes of this section, the purchaser is
considered to have furnished the signed statement to the licensed
supplier or distributor if the supplier or distributor verifies
that the purchaser has an end user number issued by the comptroller.
The licensed supplier or distributor shall use the comptroller's
Internet website or other materials provided or produced by the
comptroller to verify this information.
(k) Properly completed signed statements should be in the
possession of the licensed supplier or distributor at the time the
sale of dyed diesel fuel occurs. If the licensed supplier or
distributor is not in possession of the signed statements within 60
days after the date written notice requiring possession of them is
given to the licensed supplier or distributor by the comptroller,
exempt sales claimed by the licensed supplier or distributor that
require delivery of the signed statements shall be disallowed. If
the licensed supplier or distributor delivers the signed statements
to the comptroller within the 60-day period, the comptroller may
verify the reason or basis for the signed statements before
allowing the exempt sales. An exempt sale may not be granted on the
basis of signed statements delivered to the comptroller after the
60-day period.
SECTION 60. Section 162.211(b), Tax Code, is amended to
read as follows:
(b) The license issued to an aviation fuel dealer or dyed
diesel fuel dealer is permanent and is valid until the license is
surrendered by the holder or canceled by the comptroller.
SECTION 61. Section 162.213, Tax Code, is amended to read as
follows:
Sec. 162.213. LICENSE HOLDER STATUS LIST. (a) The
comptroller, on or before December 20 of each year, shall make
available to all license holders an alphabetical list of licensed
suppliers, permissive suppliers, distributors, aviation fuel
dealers, importers, exporters, blenders, terminal operators, dyed
diesel fuel dealers, and dyed diesel fuel bonded users. A
supplemental list of additions and deletions shall be made
available to the license holders each month. A current and
effective license or the list furnished by the comptroller is
evidence of the validity of the license until the comptroller
notifies license holders of a change in the status of a license
holder.
(b) A licensed supplier or permissive supplier who sells
diesel fuel tax-free to a supplier, [or] permissive supplier, or
aviation fuel dealer whose license has been canceled or revoked
under this chapter, or who sells dyed diesel fuel to a distributor,
dyed diesel fuel dealer, or dyed diesel fuel bonded user whose
license has been canceled or revoked under this chapter, is liable
for any tax due on diesel fuel sold after receiving notice of the
cancellation or revocation.
(c) The comptroller shall notify all license holders under
this chapter when a canceled or revoked license is subsequently
reinstated and include in the notice the effective date of the
reinstatement. Sales to a supplier, permissive supplier,
distributor, aviation fuel dealer, dyed diesel fuel dealer, or dyed
diesel fuel bonded user after the effective date of the
reinstatement may be made tax-free.
SECTION 62. Section 162.214(d), Tax Code, is amended to
read as follows:
(d) The supplier or permissive supplier shall [has the
right], after notifying the comptroller of the licensed
distributor's or licensed importer's failure to remit taxes under
this section, [to] terminate the ability of the licensed
distributor or licensed importer to defer the payment of diesel
fuel tax. The supplier or permissive supplier shall reinstate
without delay the right of the licensed distributor or licensed
importer to defer the payment of diesel fuel tax after the
comptroller provides to the supplier or permissive supplier notice
that the licensed distributor or licensed importer is in good
standing with the comptroller for the purposes of diesel fuel tax
imposed under this subchapter.
SECTION 63. Section 162.215(d), Tax Code, is amended to
read as follows:
(d) An aviation fuel dealer and a dyed diesel fuel dealer
are [is] not required to file a return.
SECTION 64. Section 162.216, Tax Code, is amended by adding
Subsections (l-1) and (m-1) to read as follows:
(l-1) A dyed diesel fuel dealer shall keep:
(1) a record showing the number of gallons of:
(A) dyed and undyed diesel fuel inventories on
hand at the first of each month;
(B) dyed and undyed diesel fuel purchased or
received, showing the name of the seller and the date of each
purchase or receipt;
(C) dyed and undyed diesel fuel sold or used,
showing the date of the sale or use; and
(D) dyed and undyed diesel fuel lost by fire,
theft, or accident; and
(2) for dyed diesel fuel an invoice containing:
(A) the stamped or preprinted name and address of
the seller;
(B) the name of the purchaser;
(C) the date of delivery of the dyed diesel fuel;
(D) the number of gallons of dyed diesel fuel
delivered;
(E) the type or description of the off-highway
equipment into which the dyed diesel fuel is delivered; and
(F) a notice stating "DYED DIESEL FUEL,
NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE."
(m-1) In addition to the records specifically required by
this section, a license holder shall keep any other record required
by the comptroller.
SECTION 65. Sections 162.217(a) and (d), Tax Code, are
amended to read as follows:
(a) The monthly return and supplements of each supplier and
permissive supplier shall contain for the period covered by the
return:
(1) [the number of net gallons of diesel fuel received
by the supplier or permissive supplier during the month, sorted by
product code, seller, point of origin, destination state, carrier,
and receipt date;
[(2)] the number of net gallons of diesel fuel removed
at a terminal rack during the month from the account of the
supplier, sorted by product code, person receiving the diesel fuel,
terminal code, and carrier;
(2) [(3)] the number of net gallons of diesel fuel
removed during the month for export, sorted by product code, person
receiving the diesel fuel, terminal code, destination state, and
carrier;
(3) [(4)] the number of net gallons of diesel fuel
removed during the month from a terminal located in another state
for conveyance to this state, as indicated on the shipping document
for the diesel fuel, sorted by product code, person receiving the
diesel fuel, terminal code, and carrier;
(4) [(5)] the number of net gallons of diesel fuel the
supplier or permissive supplier sold during the month in
transactions exempt under Section 162.204, sorted by [product code,
carrier,] purchaser[, and terminal code;
[(6) the number of net gallons of diesel fuel sold in
the bulk transfer/terminal system in this state to any person not
holding a supplier's or permissive supplier's license]; and
(5) [(7)] any other information required by the
comptroller.
(d) For the purpose of Subsection (c), all payments or
credits in reduction of a customer's account must be applied
ratably between motor fuels and other goods sold to the customer,
and the credit allowed will be the tax on the number of gallons
represented by the motor fuel portion of the credit. The
comptroller may not require a supplier or permissive supplier to
remit from a payment or credit in reduction of a customer's account
any tax for which the supplier or permissive supplier was allowed to
take a credit.
SECTION 66. Section 162.219, Tax Code, is amended to read as
follows:
Sec. 162.219. INFORMATION REQUIRED ON DISTRIBUTOR'S
RETURN. The monthly return and supplements of each distributor
shall contain for the period covered by the return:
(1) the number of net gallons of diesel fuel received
by the distributor during the month, sorted by product code and[,]
seller [, point of origin, destination state, carrier, and receipt
date];
(2) the number of net gallons of diesel fuel removed at
a terminal rack by the distributor during the month, sorted by
product code, seller, and terminal code[, and carrier];
(3) the number of net gallons of diesel fuel removed by
the distributor during the month for export, sorted by product
code, terminal code, bulk plant address, destination state, and
carrier;
(4) the number of net gallons of diesel fuel removed by
the distributor during the month from a terminal located in another
state for conveyance to this state, as indicated on the shipping
document for the diesel fuel, sorted by product code, seller,
terminal code, bulk plant address, and carrier;
(5) the number of net gallons of diesel fuel the
distributor sold during the month in transactions exempt under
Section 162.204, sorted by product code and by the entity receiving
the diesel fuel;
(6) the number of net gallons of[,] dyed diesel fuel
sold to a purchaser under a signed statement[,] or dyed diesel fuel
sold to a dyed diesel fuel bonded user, sorted by product code and
by the entity receiving the diesel fuel; and
(7) [(6)] any other information required by the
comptroller.
SECTION 67. Section 162.229, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The comptroller shall issue a refund warrant to a
distributor not later than the 60th day after the date a valid
refund claim is filed with the comptroller. If the comptroller does
not issue the refund warrant by that date, the amount of the refund
draws interest at the rate provided by Section 111.064 beginning on
the 61st day after the date the valid refund claim is filed and
ending on a date not more than 10 days before the date of the refund
warrant.
SECTION 68. Section 162.230(d), Tax Code, is amended to
read as follows:
(d) A supplier, [or] permissive supplier, distributor,
importer, exporter, or blender that determines taxes were
erroneously reported and remitted or that paid more taxes than were
due to this state because of a mistake of fact or law may take a
credit on the monthly tax report on which the error has occurred and
tax payment made to the comptroller. The credit must be taken
before the expiration of the applicable period of limitation as
provided by Chapter 111.
SECTION 69. Section 162.402(d), Tax Code, is amended to
read as follows:
(d) A person [operating a bulk plant or terminal] who issues
a shipping document that does not conform with the requirements of
Section 162.016(a) is liable to this state for a civil penalty of
$2,000 or five times the amount of the unpaid tax, whichever is
greater, for each occurrence.
SECTION 70. Sections 162.404(c) and (d), Tax Code, are
amended to read as follows:
(c) The prohibition under Section 162.403(32) does not
apply to the tax-free sale or distribution of diesel fuel
authorized by Section 162.204(a)(1) [162.204(1)], (2), or (3).
(d) The prohibition under Section 162.403(33) does not
apply to the tax-free sale or distribution of gasoline under
Section 162.104(a)(1) [162.104(1)], (2), or (3).
SECTION 71. The heading to Section 162.409, Tax Code, is
amended to read as follows:
Sec. 162.409. ISSUANCE OF BAD CHECK TO LICENSED
DISTRIBUTOR, [OR] LICENSED SUPPLIER, OR PERMISSIVE SUPPLIER.
SECTION 72. Sections 162.409(a) and (d), Tax Code, are
amended to read as follows:
(a) A person commits an offense if:
(1) the person issues or passes a check or similar
sight order for the payment of money knowing that the issuer does
not have sufficient funds in or on deposit with the bank or other
drawee for the payment in full of the check or order as well as all
other checks or orders outstanding at the time of issuance;
(2) the payee on the check or order is a licensed
distributor, [or] licensed supplier, or permissive supplier; and
(3) the payment is for an obligation or debt that
includes a tax under this chapter to be collected by the licensed
distributor, [or] licensed supplier, or permissive supplier.
(d) A person who makes payment on an obligation or debt that
includes a tax under this chapter and pays with an insufficient
funds check issued to a licensed distributor, [or] licensed
supplier, or permissive supplier may be held liable for a penalty
equal to the total amount of tax not paid to the licensed
distributor, [or] licensed supplier, or permissive supplier.
SECTION 73. Subchapter E, Chapter 162, Tax Code, is amended
by adding Section 162.410 to read as follows:
Sec. 162.410. ELECTION OF OFFENSES. If a violation of a
provision of this chapter by a person constitutes a criminal
offense under another law of this state, the state may elect the
offense for which it will prosecute the person.
SECTION 74. Sections 162.016(c) and (h), Tax Code, are
repealed.
SECTION 75. Sections 44-74 of this Act apply only to taxes
imposed on or after the effective date of those sections. Taxes
imposed before the effective date of those sections are governed by
the law in effect on the date the taxes were imposed, and that law is
continued in effect for that purpose.
SECTION 76. This section and Sections 44-75 of this Act take
effect November 1, 2005.
SECTION 77. Section 311.0125, Tax Code, is amended by
adding Subsection (f) to read as follows:
(f) If under this section a municipality has entered into a
tax abatement agreement with an owner of real or personal property
in a reinvestment zone designated under this chapter, the
municipality may not enter into a tax abatement agreement
authorized by any other law of this state in connection with the
same property of that owner.
SECTION 78. Subchapter D, Chapter 373A, Local Government
Code, as added by H.B. No. 525, Acts of the 79th Legislature,
Regular Session, 2005, is amended by adding Section 373A.159 to
read as follows:
Sec. 373A.159. TAX ABATEMENT AGREEMENTS. (a) A taxing unit
may enter into a tax abatement agreement with an owner of real or
personal property in a homestead preservation reinvestment zone,
regardless of whether the taxing unit deposits or agrees to deposit
any portion of its tax increment into the tax increment fund for the
zone.
(b) To be effective, an agreement to abate ad valorem taxes
on real property in a homestead preservation reinvestment zone
under this section must be approved by:
(1) the governing body of the municipality that
administers the zone; and
(2) the governing body of each taxing unit that
imposes ad valorem taxes on real property in the zone and deposits
or agrees to deposit any of its tax increment into the tax increment
fund for the zone.
(c) In any contract entered into by the governing body of
the municipality that administers a homestead preservation
reinvestment zone in connection with bonds or other obligations,
the governing body may covenant that it will not approve an ad
valorem tax abatement agreement that applies to real property in
that zone.
(d) If a taxing unit enters into an ad valorem tax abatement
agreement authorized by this section, ad valorem taxes that are
abated under that agreement are not considered taxes to be imposed
or produced by that taxing unit in calculating the amount of:
(1) the tax increment of that taxing unit; or
(2) that taxing unit's deposit to the tax increment
fund for the homestead preservation reinvestment zone.
SECTION 79. Sections 373A.157(c) and (e), Local Government
Code, as added by H.B. No. 525, Acts of the 79th Legislature,
Regular Session, 2005, are amended to read as follows:
(c) At least 45 [50] percent of the revenue from the tax
increment fund expended annually must benefit families that have a
yearly income at or below 50 percent of the area median family
income, adjusted for family size.
(e) The municipality must spend at least 70 [80] percent of
the revenue expended annually from the tax increment fund for the
purchase of real property and the construction or rehabilitation of
affordable housing in the zone. The municipality may spend not more
than 10 percent of the revenue expended annually from the tax
increment fund for administration of the zone. Not more than 10
percent of the revenue expended annually from the tax increment
fund may be spent for infrastructure improvements necessary to
support the construction or rehabilitation of affordable housing in
the zone.
SECTION 80. Section 623.052(b), Transportation Code, is
amended to read as follows:
(b) Before a person may operate a vehicle under this
section, the person must:
(1) contract with the department to indemnify the
department for the cost of the maintenance and repair for damage
caused by a vehicle crossing that part of the highway; and
(2) execute an adequate surety bond to compensate for
the cost of maintenance and repair, approved by [the comptroller
and] the attorney general, with a corporate surety authorized to do
business in this state, conditioned on the person fulfilling each
obligation of the agreement.
SECTION 81. Section 404.024, Government Code, is amended by
amending Subsections (b) and (l) and adding Subsections (n) and (o)
to read as follows:
(b) State funds not deposited in state depositories shall be
invested by the comptroller in:
(1) direct security repurchase agreements;
(2) reverse security repurchase agreements;
(3) direct obligations of or obligations the principal
and interest of which are guaranteed by the United States;
(4) direct obligations of or obligations guaranteed by
agencies or instrumentalities of the United States government;
(5) bankers' acceptances that:
(A) are eligible for purchase by the Federal
Reserve System;
(B) do not exceed 270 days to maturity; and
(C) are issued by a bank whose other comparable
short-term obligations are rated in [that has received] the highest
short-term [credit] rating category, within which there may be
subcategories or gradations, including such subcategories or
gradations as "rating category" or "rated," indicating relative
standing by a nationally recognized statistical rating
organization, as defined by Rule 2a-7 (17 C.F.R. Part 270.2a-7),
promulgated under the Investment Company Act of 1940 by the
Securities and Exchange Commission [investment rating firm];
(6) commercial paper that:
(A) does not exceed 270 days to maturity; and
(B) except as provided by Subsection (i), is
issued by an entity whose other comparable short-term obligations
are rated in [has received] the highest short-term [credit] rating
category by a nationally recognized statistical rating
organization [investment rating firm];
(7) contracts written by the treasury in which the
treasury grants the purchaser the right to purchase securities in
the treasury's marketable securities portfolio at a specified price
over a specified period and for which the treasury is paid a fee and
specifically prohibits naked-option or uncovered option trading;
(8) direct obligations of or obligations guaranteed by
the Inter-American Development Bank, the International Bank for
Reconstruction and Development (the World Bank), the African
Development Bank, the Asian Development Bank, and the International
Finance Corporation that have received the highest long-term
[credit] rating categories for debt obligations by a nationally
recognized statistical rating organization [investment rating
firm];
(9) bonds issued, assumed, or guaranteed by the State
of Israel;
(10) obligations of a state or an agency, county,
city, or other political subdivision of a state;
(11) mutual funds secured by obligations that are
described by Subdivisions (1) through (6), including pooled funds:
(A) established by the Texas Treasury
Safekeeping Trust Company;
(B) operated like a mutual fund; and
(C) with portfolios consisting only of
dollar-denominated securities; [and]
(12) foreign currency for the sole purpose of
facilitating investment by state agencies that have the authority
to invest in foreign securities;
(13) asset-backed securities, as defined by the
Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Part
270.2a-7), that are rated at least A or its equivalent by a
nationally recognized statistical rating organization and that
have a weighted-average maturity of five years or less; and
(14) corporate debt obligations that are rated at
least A or its equivalent by a nationally recognized statistical
rating organization and mature in five years or less from the date
on which the obligations were "acquired," as defined by the
Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Part
270.2a-7).
(l) The comptroller may lend securities under procedures
established by the comptroller. The procedures must be consistent
with industry practice and must include a requirement to fully
secure the loan with cash, obligations described by Subsections
(b)(1)-(6), or a combination of cash and the described obligations.
Notwithstanding any provision to the contrary, cash may be
reinvested in the items permitted under Subsection (b) or mutual
funds secured by the items permitted under Subsection (b) [In this
subsection, "obligation" means an item described by Subsections
(b)(1)-(6)].
(n) In entering into a direct security repurchase agreement
or a reverse security repurchase agreement, the comptroller may
agree to accept cash on an overnight basis in lieu of the
securities, obligations, or participation certificates identified
in Section 404.001(3). Cash held by the state under this subsection
is not a deposit of state or public funds for purposes of any
statute, including this subchapter or Subchapter D, that requires a
deposit of state or public funds to be collateralized by eligible
securities.
(o) Notwithstanding any other law to the contrary, any
government investment pool created to function as a money market
mutual fund and managed by the comptroller or the Texas Treasury
Safekeeping Trust Company may invest the funds it receives in
investments that are "eligible securities," as defined by the
Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Part
270.2a-7), if it maintains a dollar-weighted average portfolio
maturity of 90 days or less, with the maturity of each portfolio
security calculated in accordance with Rule 2a-7 (17 C.F.R. Part
270.2a-7), and meets the diversification requirements of Rule 2a-7.
SECTION 82. Section 2256.016, Government Code, is amended
by amending Subsections (a) and (f) and adding Subsection (i) to
read as follows:
(a) An entity may invest its funds and funds under its
control through an eligible investment pool if the governing body
of the entity by rule, order, ordinance, or resolution, as
appropriate, authorizes investment in the particular pool. An
investment pool created to function as a money market mutual fund
may invest the funds it receives from entities in investments that
are "eligible securities," as defined by the Securities and
Exchange Commission in Rule 2a-7 (17 C.F.R. Part 270.2a-7),
promulgated under the Investment Company Act of 1940. Any other
[An] investment pool shall invest the funds it receives from
entities in authorized investments permitted by this subchapter.
(f) To be eligible to receive funds from and invest funds on
behalf of an entity under this chapter, a public funds investment
pool created to function as a money market mutual fund must:
(1) mark its portfolio to market daily, and, to the
extent reasonably possible, stabilize at a $1 net asset value. If
the ratio of the market value of the portfolio divided by the book
value of the portfolio is less than 0.995 or greater than 1.005,
portfolio holdings shall be sold as necessary to maintain the ratio
between 0.995 and 1.005;
(2) maintain a dollar-weighted average portfolio
maturity of 90 days or less, with the maturity of each portfolio
security calculated in accordance with Rule 2a-7 (17 C.F.R. Part
270.2a-7); and
(3) meet the diversification requirements of Rule 2a-7
(17 C.F.R. Part 270.2a-7) promulgated by the Securities and
Exchange Commission.
(i) In this section, "stated maturity date" means the
average life of a security with periodic principal payments, the
number of days until the next interest rate reset date for variable
rate securities, or the final maturity date for all other
securities.
SECTION 83. (a) Section 442.015, Government Code, is
amended by adding Subsection (h) to read as follows:
(h) The comptroller may manage the assets of the Texas
preservation trust fund account in the same manner as the
comptroller may manage the assets of certain permanent funds under
Section 403.1068.
(b) Section 285.063, Health and Safety Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) The district shall submit to the comptroller a
description of the boundaries of the district and a map of the
district clearly showing the district's boundaries at the same time
the district submits the results of the election held under this
subchapter.
(c) Section 775.0753, Health and Safety Code, is amended by
adding Subsection (d) to read as follows:
(d) The district shall submit to the comptroller a
description of the boundaries of the district and a map of the
district clearly showing the district's boundaries at the same time
the district submits the results of the election held under this
subchapter.
(d) Section 776.0753, Health and Safety Code, is amended by
adding Subsection (d) to read as follows:
(d) The district shall submit to the comptroller a
description of the boundaries of the district and a map of the
district clearly showing the district's boundaries at the same time
the district submits the results of the election held as provided by
this subchapter.
(e) Article 1.16(b), Insurance Code, is amended to read as
follows:
(b) Assessments for the expenses of such domestic
examination which shall be sufficient to meet all the expenses and
disbursements necessary to comply with the provisions of the laws
of Texas relating to the examination of insurance companies and to
comply with the provisions of this Article and Articles 1.17 and
1.18 of this Code, shall be made by the State Board of Insurance
upon the corporations or associations to be examined taking into
consideration annual premium receipts, and/or admitted assets that
are not attributable to 90 percent of pension plan contracts as
defined in Section 818(a) of the Internal Revenue Code of 1986 (26
U.S.C. Section 818(a)), and/or insurance in force; provided such
assessments shall be made and collected as follows: (1) expenses
attributable directly to a specific examination including
employees' salaries and expenses and expenses provided by Section
803.007 [Article 1.28] of this Code shall be collected at the time
of examination; (2) assessments calculated annually for each
corporation or association which take into consideration annual
premium receipts, and/or admitted assets that are not attributable
to 90 percent of pension plan contracts as defined in Section 818(a)
of the Internal Revenue Code of 1986 (26 U.S.C. Section 818(a)),
and/or insurance in force shall be assessed annually for each such
corporation or association. In computing the assessments, the
board may not consider insurance premiums for insurance contracted
for by a state or federal governmental entity to provide welfare
benefits to designated welfare recipients or contracted for in
accordance with or in furtherance of Title 2, Human Resources Code,
or the federal Social Security Act (42 U.S.C. Section 301 et seq.).
The amount of all examination and evaluation fees paid in each
taxable year to the State of Texas by an insurance carrier shall be
allowed as a credit on the amount of premium taxes due [under this
article]. The limitations provided by Sections 803.007(1) and
(2)(B) of this code for domestic insurance companies apply to
foreign insurance companies.
(f) Section 222.002(b), Insurance Code, is amended to read
as follows:
(b) Except as otherwise provided by this section, in
determining an insurer's taxable gross premiums or a health
maintenance organization's taxable gross revenues, the insurer or
health maintenance organization shall include the total gross
amounts of premiums, membership fees, assessments, dues, revenues,
and other considerations received by the insurer or health
maintenance organization in a calendar year from any kind of health
maintenance organization certificate or contract or insurance
policy or contract covering risks on individuals or groups [a
person] located in this state and arising from the business of a
health maintenance organization or the business of life insurance,
accident insurance, health insurance, life and accident insurance,
life and health insurance, health and accident insurance, life,
health, and accident insurance, including variable life insurance,
credit life insurance, and credit accident and health insurance for
profit or otherwise or for mutual benefit or protection.
(g) Section 223.003(a), Insurance Code, is amended to read
as follows:
(a) An annual tax is imposed on all [each title insurance
company that receives] premiums from the business of title
insurance. The rate of the tax is 1.35 percent of [the] title
insurance [company's] taxable premiums for a calendar year,
including any premiums retained by a title insurance agent as
provided by Section 223.005. For purposes of this chapter, a person
engages in the business of title insurance if the person engages in
an activity described by Section 2501.005.
(h) Section 252.003, Insurance Code, is amended to read as
follows:
Sec. 252.003. PREMIUMS SUBJECT TO TAXATION. An insurer
shall pay maintenance taxes under this chapter on the correctly
reported gross premiums [collected] from writing insurance in this
state against loss or damage by:
(1) bombardment;
(2) civil war or commotion;
(3) cyclone;
(4) earthquake;
(5) excess or deficiency of moisture;
(6) explosion as defined by Article 5.52;
(7) fire;
(8) flood;
(9) frost and freeze;
(10) hail;
(11) insurrection;
(12) invasion;
(13) lightning;
(14) military or usurped power;
(15) an order of a civil authority made to prevent the
spread of a conflagration, epidemic, or catastrophe;
(16) rain;
(17) riot;
(18) the rising of the waters of the ocean or its
tributaries;
(19) smoke or smudge;
(20) strike or lockout;
(21) tornado;
(22) vandalism or malicious mischief;
(23) volcanic eruption;
(24) water or other fluid or substance resulting from
the breakage or leakage of sprinklers, pumps, or other apparatus
erected for extinguishing fires, water pipes, or other conduits or
containers;
(25) weather or climatic conditions; [or]
(26) windstorm;
(27) an event covered under a home warranty insurance
policy; or
(28) an event covered under an inland marine insurance
policy.
(i) Section 271.002(a), Insurance Code, is amended to read
as follows:
(a) A maintenance fee is imposed on all [each insurer with
gross] premiums subject to assessment under Section 271.006.
(j) Section 1502.053, Insurance Code, is amended to read as
follows:
Sec. 1502.053. EXEMPTION FROM CERTAIN TAXES. (a) The
issuer of a children's health benefit plan approved under Section
1502.051 is not subject to the premium tax or the tax on revenues
imposed under Chapter 222 with respect to money received for
coverage provided under that plan.
(b) The issuer of a children's health benefit plan is not
subject to the retaliatory tax imposed under Chapter 281 with
respect to money received for coverage provided under that plan.
(k) Section 383.101, Local Government Code, is amended by
adding Subsection (d) to read as follows:
(d) The district shall submit to the comptroller a
description of the boundaries of the district and a map of the
district clearly showing the district's boundaries at the same time
the district submits the results of the election held under this
subchapter.
(l) Section 387.012, Local Government Code, is amended to
read as follows:
Sec. 387.012. EFFECTIVE DATE OF TAX. (a) The adoption of
the tax, the change of the tax rate, or the repeal of the tax takes
effect on the first day of the first calendar quarter occurring
after the expiration of the first complete quarter occurring after
the date the comptroller receives a notice of the results of the
election adopting, changing, or repealing the tax.
(b) The district shall submit to the comptroller a
description of the boundaries of the district and a map of the
district clearly showing the district's boundaries at the same time
the district submits the results of the election held under this
chapter.
(m) Section 21.05(e), Tax Code, is amended to read as
follows:
(e) For purposes of this subchapter, a commercial aircraft
shall mean an instrumentality of air commerce that is:
(1) primarily engaged in the transportation of cargo,
passengers, or equipment for others for consideration at least 50
percent of the time;
(2) economically employed when it is moving from point
to point as a means of transportation for a fee, flat rate, or
expense charge; and
(3) operated or managed by a certificated air carrier.
A certificated air carrier is one engaged in interstate or
intrastate commerce under authority of the Federal Aviation
Administration of the U.S. Department of Transportation under 14
C.F.R. Part 121 or 135.
(n) Subchapter B, Chapter 111, Tax Code, is amended by
adding Section 111.0515 to read as follows:
Sec. 111.0515. RESTRICTED OR CONDITIONAL PAYMENTS OF TAXES,
PENALTIES, AND INTEREST PROHIBITED. Unless the restriction or
condition is authorized by this title, a restriction or condition
placed on a check in payment of taxes by the maker of the check that
purports to limit the amount of taxes owed to an amount less than
that stated in the comptroller's records, or a restriction or
condition placed on a check in payment of penalties and interest on
delinquent taxes by the maker that purports to limit the amount of
the penalties and interest to an amount less than the amount of
penalties and interest accrued on the delinquent taxes, is void.
(o) Subchapter B, Chapter 111, Tax Code, is amended by
adding Section 111.065 to read as follows:
Sec. 111.065. EXPEDITIOUS ASSISTANCE FOR TAXPAYERS. (a)
As expeditiously as possible, the comptroller shall:
(1) refund or credit any amount of tax overpaid by a
person; and
(2) correct any erroneous assessment.
(b) The comptroller shall amend any audit or the records of
any audit period as expeditiously as possible if necessary to
comply with Subsection (a).
(p) Section 111.107, Tax Code, is amended to read as
follows:
Sec. 111.107. WHEN REFUND OR CREDIT IS PERMITTED. (a)
Except as otherwise expressly provided, a person may request a
refund or a credit or the comptroller may make a refund or issue a
credit for the overpayment of a tax imposed by this title at any
time before the expiration of the period during which the
comptroller may assess a deficiency for the tax and not thereafter
unless the refund or credit is requested:
(1) under Subchapter B of Chapter 112 and the refund is
made or the credit is issued under a court order;
(2) under the provision of Section 111.104(c)(3)
applicable to a refund claim filed after a jeopardy or deficiency
determination becomes final; or
(3) under Chapter 162 [153], except Section
162.126(f), 162.128(d), 162.228(f), or 162.230(d) [153.1195(e),
153.121(d), 153.2225(e), or 153.224(d)].
(b) A person may not refile a refund claim for the same
transaction or item, tax type, period, and ground or reason that was
previously denied by the comptroller in a refund hearing.
(q) Sections 151.011(a) and (c), Tax Code, are amended to
read as follows:
(a) Except as provided by Subsection (c) [of this section],
"use" means the exercise of a right or power incidental to the
ownership of tangible personal property over tangible personal
property, including tangible personal property other than printing
[printed] material that has been processed, fabricated, or
manufactured into other property or attached to or incorporated
into other property transported into this state, and, except as
provided by Section 151.056(b) [of this code], includes the
incorporation of tangible personal property into real estate or
into improvements of real estate whether or not the real estate is
subsequently sold.
(c) "Use" does not include the sale of tangible personal
property or a taxable service in the regular course of business, the
transfer of a taxable service as an integral part of the transfer of
tangible personal property in the regular course of business, or
the transfer of tangible personal property as an integral part of
the transfer of a taxable service in the regular course of business.
"Use" also does not include the sale outside this state of raw
materials that are processed, fabricated, or manufactured into
printed materials outside this state if the printed materials are
subsequently brought or delivered into this state.
(r) Section 151.3111(b), Tax Code, is amended to read as
follows:
(b) Subsection (a) does not apply to the performance of a
service on:
(1) tangible personal property that would be exempted
solely because of the exempt status of the seller of the property;
(2) tangible personal property that is exempted solely
because of the application of Section 151.303, 151.304, or 151.306;
(3) motor vehicles, trailers, or semitrailers as
defined, taxed, or exempted by Chapter 152; [or]
(4) a taxable boat or motor as defined by Section
160.001; [.]
(5) tangible [(6) Tangible] personal property exempt
under Section 151.326; or
(6) through December 31, 2007, tangible personal
property that is exempted solely because of the application of
Section 151.3162.
(s) Sections 151.3162(d) and (e), Tax Code, are amended to
read as follows:
(d) The exemption provided by Subsection (b) takes effect
January 1, 2008. Until that date, a person is entitled to an
exemption [a credit or refund] of a portion of the taxes paid under
this chapter on an item that after January 1, 2008, will be exempted
from the taxes imposed by this chapter under Subsection (b). The
amount of the exemption [credit or refund] is determined as
follows:
(1) for an item for which the taxable event occurs on
or after October 1, 2001, and before January 1, 2004, the taxpayer
is entitled to an exemption [a refund or credit] in an amount equal
to 33 percent of the tax paid on the item;
(2) for an item for which the taxable event occurs on
or after January 1, 2004, and before January 1, 2006, the taxpayer
is entitled to an exemption [a refund or credit] in an amount equal
to 50 percent of the tax paid on the item; and
(3) for an item for which the taxable event occurs on
or after January 1, 2006, and before January 1, 2008, the taxpayer
is entitled to an exemption [a refund or credit] in an amount equal
to 75 percent of the tax paid on the item.
(e) A taxpayer entitled to a credit or refund under
Subsection (d), as that subsection existed on September 30, 2005,
may elect to receive either a credit or a refund. A taxpayer who
elects to receive a credit must claim the credit on the return for a
period that ends not later than the first anniversary of the date on
which the taxable event occurred. A taxpayer who elects to receive
a refund must apply to the comptroller for the refund before or
during the calendar year following the year in which the tax on the
item was paid.
(t) Section 171.110, Tax Code, is amended by adding
Subsection (m) to read as follows:
(m) Except as otherwise provided by this section, in
computing taxable earned surplus, a corporation is considered to
have made an election to use the same methods used in filing its
federal income tax return.
(u) Section 171.1121(b), Tax Code, is amended to read as
follows:
(b) Except as otherwise provided by this section, a
corporation shall use the same accounting methods to apportion
taxable earned surplus as the corporation used to compute taxable
earned surplus [in computing reportable federal taxable income].
(v) Section 171.801(2), Tax Code, is amended to read as
follows:
(2) "Qualified capital investment" means tangible
personal property, as defined by 26 C.F.R. Section 1.1245-3(b)(1),
that is first placed in service in a strategic investment area, or
first placed in service in a county with a population of less than
50,000 by a corporation primarily engaged in agricultural
processing, and that is described as Section 1245 property by [in]
Section 1245(a), Internal Revenue Code, such as engines, machinery,
tools, and implements used in a trade or business or held for
investment and subject to an allowance for depreciation, cost
recovery under the accelerated cost recovery system, or
amortization. The term does not include land [real property] or
buildings and their structural components. Property that is leased
under a capitalized lease is considered a "qualified capital
investment," but property that is leased under an operating lease
is not considered a "qualified capital investment." Property
expensed under Section 179, Internal Revenue Code, is not
considered a "qualified capital investment."
(w) Section 183.053(b), Tax Code, is amended to read as
follows:
(b) The total of bonds, certificates of deposit, letters of
credit, or other security determined to be sufficient by the
comptroller of a permittee subject to the tax imposed by this
chapter shall be in an amount that the comptroller determines to be
sufficient to protect the fiscal interests of the state. The
comptroller may not set the amount of security at less than $1,000
or more than the greater of $100,000 or four times the amount of the
permittee's average monthly tax liability [$50,000].
(x) Sections 313.021(1) and (2), Tax Code, are amended to
read as follows:
(1) "Qualified investment" means:
(A) tangible personal property, as defined by 26
C.F.R. Section 1.1245-3(b)(1), that is first placed in service in
this state during the applicable qualifying time period that begins
on or after January 1, 2002, and is described as Section 1245
property by Section 1245(a), Internal Revenue Code of 1986;
(B) tangible personal property that is first
placed in service in this state during the applicable qualifying
time period that begins on or after January 1, 2002, without regard
to whether the property is affixed to or incorporated into real
property, and that is used in connection with the manufacturing,
processing, or fabrication in a cleanroom environment of a
semiconductor product, without regard to whether the property is
actually located in the cleanroom environment, including:
(i) integrated systems, fixtures, and
piping;
(ii) all property necessary or adapted to
reduce contamination or to control airflow, temperature, humidity,
chemical purity, or other environmental conditions or
manufacturing tolerances; and
(iii) production equipment and machinery,
moveable cleanroom partitions, and cleanroom lighting; or
(C) a building or a permanent, nonremovable
component of a building that is built or constructed during the
applicable qualifying time period that begins on or after January
1, 2002, and that houses tangible personal property described by
Paragraph (A) or (B).
(2) "Qualified property" means:
(A) land:
(i) that is located in an area designated as
a reinvestment zone under Chapter 311 or 312 or as an enterprise
zone under Chapter 2303, Government Code;
(ii) on which a person proposes to
construct a new building or erect or affix a new improvement that
does not exist before the date the owner applies for a limitation on
appraised value under this subchapter;
(iii) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(iv) on which, in connection with the new
building or new improvement described by Subparagraph (ii), the
owner of the land, or the owner of a leasehold interest in the land,
proposes to:
(a) make a qualified investment in an
amount equal to at least the minimum amount required by Section
313.023; and
(b) create at least 25 new jobs;
(B) the new building or other new improvement
described by Paragraph (A)(ii); and
(C) tangible personal property that:
(i) is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(ii) except for new equipment described in
Section 151.318(q) or (q-1), is first placed in service in the new
building or in or on the new improvement described by Paragraph
(A)(ii), or on the land on which that new building or new
improvement is located, if the personal property is ancillary and
necessary to the business conducted in that new building or in or on
that new improvement.
(y) Section 321.203, Tax Code, is amended by amending
Subsections (b)-(e) and adding Subsection (n) to read as follows:
(b) If a retailer has only one place of business in this
state, all of the retailer's retail sales of taxable items
[tangible personal property] are consummated at that place of
business except as provided by Subsection (e).
(c) If a retailer has more than one place of business in this
state, a sale of a taxable item [tangible personal property] by the
retailer is consummated at the retailer's place of business:
(1) from which the retailer ships or delivers the item
[property], if the retailer ships or delivers the item [property]
to a point designated by the purchaser or lessee; or
(2) where the purchaser or lessee takes possession of
and removes the item [property], if the purchaser or lessee takes
possession of and removes the item [property] from a place of
business of the retailer.
(d) If neither the possession of a taxable item [tangible
personal property] is taken at nor shipment or delivery of the item
[property] is made from the retailer's place of business in this
state, the sale is consummated at:
(1) the retailer's place of business in this state
where the order is received; or
(2) if the order is not received at a place of business
of the retailer, the place of business from which the retailer's
salesman who took the order operates.
(e) A sale of a taxable item [tangible personal property] is
consummated at the location in this state to which the item
[property] is shipped or delivered or at which possession is taken
by the customer if transfer of possession of the item [property]
occurs at, or shipment or delivery of the item [property]
originates from, a location in this state other than a place of
business of the retailer and if:
(1) the retailer is an itinerant vendor who has no
place of business;
(2) the retailer's place of business where the
purchase order is initially received or from which the retailer's
salesman who took the order operates is outside this state; or
(3) the purchaser places the order directly with the
retailer's supplier and the item [property] is shipped or delivered
directly to the purchaser by the supplier.
(n) A sale of a service described by Section 151.0047 to
remodel, repair, or restore nonresidential real property is
consummated at the location of the job site. However, if the job
site includes areas in multiple municipalities, the sale is
consummated at:
(1) the retailer's place of business in this state
where the order is received; or
(2) if the order is not received at a place of business
of the retailer, the place of business from which the retailer's
agent who took the order operates.
(z) Section 321.302, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) For purposes of Subsection (c)(3), "full amount of the
tax due" means the amount of municipal tax to be allocated that can
be determined without a comptroller's audit of the person's
records.
(aa) Section 321.503, Tax Code, is amended to read as
follows:
Sec. 321.503. STATE'S SHARE. Before sending any money to a
municipality under this subchapter the comptroller shall deduct two
percent of the amount of the taxes collected within the
municipality during the period for which a distribution is made as
the state's charge for its services under this chapter and shall[,
subject to premiums payments under Section 321.501(c),] credit the
money deducted to the general revenue fund.
(bb) Section 323.102(c), Tax Code, is amended to read as
follows:
(c) A tax imposed under Section 323.105 of this code or
Chapter 326 or 383, Local Government Code, takes effect on the first
day of the first calendar quarter after the expiration of the first
complete calendar quarter occurring after the date on which the
comptroller receives a notice of the action as required by Section
323.405(b).
(cc) Section 323.203, Tax Code, is amended by amending
Subsections (b)-(e) and adding Subsection (m) to read as follows:
(b) If a retailer has only one place of business in this
state, all of the retailer's retail sales of taxable items
[tangible personal property] are consummated at that place of
business except as provided by Subsection (e).
(c) If a retailer has more than one place of business in this
state, a sale of a taxable item [tangible personal property] by the
retailer is consummated at the retailer's place of business:
(1) from which the retailer ships or delivers the item
[property], if the retailer ships or delivers the item [property]
to a point designated by the purchaser or lessee; or
(2) where the purchaser or lessee takes possession of
and removes the item [property], if the purchaser or lessee takes
possession of and removes the item [property] from a place of
business of the retailer.
(d) If neither the possession of a taxable item [tangible
personal property] is taken at nor shipment or delivery of the item
[property] is made from the retailer's place of business in this
state, the sale is consummated at:
(1) the retailer's place of business in this state
where the order is received; or
(2) if the order is not received at a place of business
of the retailer, the place of business from which the retailer's
salesman who took the order operates.
(e) A sale of a taxable item [tangible personal property] is
consummated at the location in this state to which the item
[property] is shipped or delivered or at which possession is taken
by the customer if transfer of possession of the item [property]
occurs at, or shipment or delivery of the item [property]
originates from, a location in this state other than a place of
business of the retailer and if:
(1) the retailer is an itinerant vendor who has no
place of business;
(2) the retailer's place of business where the
purchase order is initially received or from which the retailer's
salesman who took the order operates is outside this state; or
(3) the purchaser places the order directly with the
retailer's supplier and the item [property] is shipped or delivered
directly to the purchaser by the supplier.
(m) A sale of a service described by Section 151.0047 to
remodel, repair, or restore nonresidential real property is
consummated at the location of the job site. However, if the job
site includes areas in multiple municipalities, the sale is
consummated at:
(1) the retailer's place of business in this state
where the order is received; or
(2) if the order is not received at a place of business
of the retailer, the place of business from which the retailer's
agent who took the order operates.
(dd) Section 323.503, Tax Code, is amended to read as
follows:
Sec. 323.503. STATE'S SHARE. Before sending any money to a
county under this subchapter the comptroller shall deduct two
percent of the amount of the taxes collected within the county
during the period for which a distribution is made as the state's
charge for its services under this chapter and shall[, subject to
premiums payments under Section 323.501(c),] credit the money
deducted to the general revenue fund.
(ee) The heading to Subchapter A, Chapter 16, Utilities
Code, is amended to read as follows:
SUBCHAPTER A. ASSESSMENT ON UTILITY GROSS RECEIPTS [PUBLIC
UTILITIES]
(ff) The heading to Section 16.001, Utilities Code, is
amended to read as follows:
Sec. 16.001. ASSESSMENT ON UTILITY GROSS RECEIPTS [PUBLIC
UTILITIES].
(gg) Sections 16.001(a) and (b), Utilities Code, are
amended to read as follows:
(a) To defray the expenses incurred in the administration of
this title, an assessment is imposed on each telecommunications
utility, electric [public] utility, retail electric provider, and
electric cooperative within the jurisdiction of the commission that
serves the ultimate consumer, including each interexchange
telecommunications carrier.
(b) An assessment under this section is equal to one-sixth
of one percent of the telecommunications utility's, electric
[public] utility's, retail electric provider's, or electric
cooperative's gross receipts from rates charged to the ultimate
consumer in this state.
(hh) Section 16.002(b), Utilities Code, is amended to read
as follows:
(b) A telecommunications utility, electric [public]
utility, retail electric provider, or electric cooperative may
instead make quarterly payments due August 15, November 15,
February 15, and May 15.
(ii) The following sections of the Tax Code are repealed:
(1) Section 151.103(d);
(2) Section 151.202(c);
(3) Section 321.203(l), Tax Code, as added by Chapter
1310, Acts of the 78th Legislature, Regular Session, 2003; and
(4) Section 323.203(l).
(jj) The changes in law made by this Act to Section 201.102,
Tax Code, apply to a refund claim or determination under Chapter
111, Tax Code, without regard to whether the taxes that are the
subject of the refund claim or determination are due before, on, or
after the effective date of this Act.
(kk) This section takes effect January 1, 2006.
SECTION 84. Section 161.081, Health and Safety Code, is
amended by adding Subdivision (7) to read as follows:
(7) "Attempt" means committing an act amounting to
more than mere preparation that tends but fails to effect the
commission of the offense intended.
SECTION 85. Subchapter H, Chapter 161, Health and Safety
Code, is amended by adding Section 161.0821 to read as follows:
Sec. 161.0821. PURCHASE OF CIGARETTES OR TOBACCO PRODUCTS
BY PERSONS YOUNGER THAN 18 YEARS OF AGE PROHIBITED. (a) A person
who is younger than 18 years of age commits an offense if the person
purchases or attempts to purchase cigarettes or tobacco products.
(b) It is an exception to the application of this section
that the person younger than 18 years of age is participating in an
investigation or compliance inspection in accordance with Section
161.088 on behalf of the comptroller or a local law enforcement
agency.
(c) If conduct constituting an offense under this section
also constitutes an offense under another section of this code or
another provision of law, the actor may be prosecuted under either
this section or the other section or provision.
(d) An offense under this section is a Class C misdemeanor.
SECTION 86. (a) Section 161.084, Health and Safety Code, is
amended by amending Subsection (b) and adding Subsection (f) to
read as follows:
(b) The sign must include the statement:
PURCHASING OR ATTEMPTING TO PURCHASE TOBACCO PRODUCTS BY A
MINOR UNDER 18 YEARS OF AGE IS PROHIBITED BY LAW. SALE OR PROVISION
OF TOBACCO PRODUCTS TO A MINOR UNDER 18 YEARS OF AGE IS PROHIBITED
BY LAW. UPON CONVICTION, A CLASS C MISDEMEANOR, INCLUDING A FINE OF
UP TO $500, MAY BE IMPOSED. VIOLATIONS MAY BE REPORTED TO THE TEXAS
COMPTROLLER'S OFFICE BY CALLING (insert toll-free telephone
number). PREGNANT WOMEN SHOULD NOT SMOKE. SMOKERS ARE MORE LIKELY
TO HAVE BABIES WHO ARE BORN PREMATURE OR WITH LOW BIRTHWEIGHT.
(f) The comptroller may accept gifts and grants from any
public or private source to perform the comptroller's duties under
this section.
(b) The comptroller shall adopt rules as necessary to
implement Section 161.084, Health and Safety Code, as amended by
this Act, not later than the 90th day after the effective date of
this Act.
SECTION 87. Section 2303.401, Government Code, is amended
to read as follows:
Sec. 2303.401. DEFINITIONS. In this subchapter:
(1) "Certified job" means a new or retained job that:
(A) has provided at least 1,820 hours of
employment a year to a qualified employee of a qualified business as
described by Section 2303.402;
(B) is intended to exist for at least three years
after the date on which the comptroller makes the initial
certification of hiring commitments for the qualified business
under Section 2303.516(d); and
(C) has been certified by the comptroller as
eligible for receipt of a state benefit under this chapter.
(2) "New permanent job" means a new employment
position created by a qualified business as described by Section
2303.402 that:
(A) has provided at least 1,820 hours of
employment a year to a qualified employee; and
(B) is intended to exist at the qualified
business site for at least three years after the date on which a
state benefit is received as authorized by this chapter.
(3) [(2)] "Retained job" means a job that existed with
a qualified business before designation of the business's project
or activity as an enterprise project that:
(A) has provided employment to a qualified
employee of at least 1,820 hours annually; and
(B) is intended to be an employment position for
at least three years after the date on which a state benefit is
received as authorized by this chapter.
SECTION 88. Section 2303.4072, Government Code, is amended
to read as follows:
Sec. 2303.4072. ENTERPRISE PROJECT CLAIM FOR STATE BENEFIT.
A person must make a claim to the comptroller for a state benefit as
prescribed under this chapter and Chapters 151 and 171, Tax Code,
not later than six [18] months after the date on which the term of
the enterprise project designation expires as provided by Section
2303.404.
SECTION 89. Section 2303.504, Government Code, as amended
by Section 2.02, Chapter 1134, Acts of the 77th Legislature,
Regular Session, 2001, is amended to read as follows:
Sec. 2303.504. STATE TAX REFUNDS AND CREDITS; REPORT. (a)
In this section, "triple jumbo enterprise project" has the meaning
assigned by Section 2303.407.
(a-1) Subject to Section 2303.516, an enterprise project is
entitled to:
(1) a refund of state taxes under Section 151.429, Tax
Code; and
(2) a franchise tax credit under Subchapter P or Q,
Chapter 171, Tax Code, but only if the enterprise project was
designated as an enterprise project on or after September 1, 2003,
and approved as a triple jumbo enterprise project on or before
September 1, 2004.
(b) At the time of receipt of any tax benefit available as a
result of participating in the enterprise zone program, including a
state sales and use tax refund or franchise tax credit, three
percent of the amount of the tax benefit shall be transferred to the
Texas economic development bank fund under Subchapter B, Chapter
489, to defray the cost of administering this chapter.
(c) Not later than the 60th day after the last day of each
fiscal year, the comptroller shall report to the bank the statewide
total of actual jobs created, actual jobs retained, and the tax
refunds and credits made under this section during that fiscal
year.
SECTION 90. Sections 2303.516(b) and (d), Government Code,
are amended to read as follows:
(b) The comptroller [bank] may determine that the business
or project is not entitled to a refund or credit of state taxes
under Section 2303.504(a-1) if the comptroller [bank] finds that:
(1) the business or project is not willing to
cooperate with the comptroller [bank] in providing the comptroller
[bank] with the information the comptroller [bank] needs to
determine state benefits [make the determination under Subsection
(a)]; or
(2) the business or project has substantially failed
to follow through on any commitments made by it or on its behalf
under this chapter.
(d) A qualified business may obtain a state benefit, earned
through a specific enterprise project designation, on completion
of:
(1) a certification of the project or activity for
completeness that is conducted [an audit performed] by the
comptroller to verify [that will certify] hiring commitments of a
qualified business under this chapter;
(2) a certification conducted by the comptroller to
verify [and eligible] purchases of taxable items made by or on
behalf of the [a] qualified business under this chapter; and
(3) a verification of the capital investment for the
project or activity, conducted by the comptroller, to determine the
level of benefit achieved by the qualified business.
SECTION 91. Section 2303.517, Government Code, is amended
to read as follows:
Sec. 2303.517. REPORT. Before obtaining a state benefit,
the qualified business must submit to the comptroller [bank] a
certified report of the actual number of jobs created or retained
and the capital investment made at or committed to the qualified
business site.
SECTION 92. (a) Sections 151.429(a), (b), (c), (e), and
(g), Tax Code, are amended to read as follows:
(a) An enterprise project is eligible for a refund in the
amount provided by this section of the taxes imposed by this chapter
on purchases of taxable items [:
[(1) equipment or machinery sold to an enterprise
project for use at the qualified business site;
[(2) building materials sold to an enterprise project
for use in remodeling, rehabilitating, or constructing a structure
at the qualified business site;
[(3) labor for remodeling, rehabilitating, or
constructing a structure by an enterprise project at the qualified
business site; and
[(4) electricity and natural gas purchased and
consumed in the normal course of business at the qualified business
site].
(b) Subject to the limitations provided by Subsection (c) of
this section, an enterprise project qualifies for a refund of taxes
under this section based on the amount of capital investment made at
the qualified business site and refund per job with a maximum refund
to be included in a computation of a tax refund for the project. A
capital investment at the qualified business site of:
(1) $40,000 to $399,999 will result in a refund of up
to $2,500 per job with a maximum refund of $25,000 for the creation
or retention of 10 certified jobs;
(2) $400,000 to $999,999 will result in a refund of up
to $2,500 per job with a maximum refund of $62,500 for the creation
or retention of 25 certified jobs;
(3) $1,000,000 to $4,999,999 will result in a refund
of up to $2,500 per job with a maximum refund of $312,500 for the
creation or retention of 125 certified jobs;
(4) $5,000,000 to $149,999,999 will result in a refund
of up to $2,500 per job with a maximum refund of $1,250,000 for the
creation or retention of 500 certified jobs;
(5) $150,000,000 to $249,999,999 will result in a
refund of up to $5,000 per job with a maximum refund of $2,500,000
for the creation or retention of 500 certified jobs; or
(6) $250,000,000 or more will result in a refund of up
to $7,500 per job with a maximum refund of $3,750,000 for the
creation or retention of 500 certified jobs.
(c) The total amount of tax refund that an enterprise
project may apply for in a state fiscal year may not exceed
$250,000. If an enterprise project qualifies in a state fiscal year
for a refund of taxes in an amount in excess of the limitation
provided by this subsection, it may apply for a refund of those
taxes in a subsequent year, subject to the $250,000 limitation for
each year. The total amount that may be refunded to an enterprise
project under this section may not exceed the amount determined by
multiplying $250,000 by the number of state fiscal years during
which the enterprise project created one or more certified jobs for
qualified employees.
(e) In this section:
(1) "Enterprise project" means a person designated by
the Texas Economic Development Bank as an enterprise project under
Chapter 2303, Government Code.
(2) "Enterprise zone," "qualified employee," and
"qualified hotel project" have the meanings assigned to those terms
by Section 2303.003, Government Code.
(3) "New permanent job" means a new employment
position created by a qualified business as described by Section
2303.402, Government Code, that:
(A) has provided at least 1,820 hours of
employment a year to a qualified employee; and
(B) is intended to exist for at least three years
after a state benefit is received under Chapter 2303, Government
Code.
(4) "Retained job" has the meaning assigned by Section
2303.401, Government Code.
(4-a) "Certified job" has the meaning assigned by
Section 2303.401, Government Code.
(5) "Double jumbo enterprise project" and "triple
jumbo enterprise project" have the meanings assigned by Section
2303.407, Government Code.
(g) The refund provided by this section is conditioned on
the enterprise project maintaining for a three-year period at least
the same number [level] of certified jobs [employment of qualified
employees] as existed on the date the comptroller initially
certified the hiring commitments for the project under Section
2303.516(d), Government Code [at the time it qualified for a refund
for a period of three years from that date]. The comptroller shall
annually certify whether that number [level] of certified jobs
[employment of qualified employees] has been maintained. On
certifying that such a number [level] has not been maintained, the
comptroller shall assess that portion of the refund attributable to
any such decrease in certified jobs [employment], including penalty
and interest from the date of the refund.
(b) The change in law made by this section to Section
151.429, Tax Code, applies only to an application for a tax refund
made on or after the effective date of this Act. An application for
a tax refund made before the effective date of this Act is governed
by the law in effect on the date the application was made, and the
former law is continued in effect for that purpose.
SECTION 93. (a) Section 151.4291(a), Tax Code, is amended
to read as follows:
(a) A defense readjustment project is eligible for a refund
in the amount provided by this section of the taxes imposed by this
chapter on purchases of taxable items [:
[(1) equipment or machinery sold to a defense
readjustment project for use in a readjustment zone;
[(2) building materials sold to a defense readjustment
project for use in remodeling, rehabilitating, or constructing a
structure in a readjustment zone;
[(3) labor for remodeling, rehabilitating, or
constructing a structure by a defense readjustment project in a
readjustment zone; and
[(4) electricity and natural gas purchased and
consumed in the normal course of business in the readjustment
zone].
(b) The change in law made by this section to Section
151.4291, Tax Code, applies only to an application for a tax refund
made on or after the effective date of this Act. An application for
a tax refund made before the effective date of this Act is governed
by the law in effect on the date the application was made, and the
former law is continued in effect for that purpose.
SECTION 94. Section 171.721(2), Tax Code, is amended to
read as follows:
(2) "Strategic investment area" means an area that is
determined by the comptroller under Section 171.726 that is:
(A) a county within this state with above state
average unemployment and below state average per capita income;
(B) an area within this state that is:
(i) an area consisting of a federally
designated empowerment zone and associated developable areas; or
(ii) a federally designated renewal
community [urban enterprise community or an urban enhanced
enterprise community]; or
(C) a defense economic readjustment zone
designated under Chapter 2310, Government Code.
SECTION 95. Section 171.751, Tax Code, is amended by adding
Subdivision (5-a) and amending Subdivisions (8) and (9) to read as
follows:
(5-a) "Enterprise project" means a person designated
as an enterprise project under Chapter 2303, Government Code, on or
after September 1, 2003, and approved as a triple jumbo enterprise
project, as defined by Section 2303.407, Government Code, on or
before September 1, 2004.
(8) "Qualified business" means an establishment:
(A) primarily engaged in agricultural
processing, central administrative offices, distribution, data
processing, manufacturing, research and development, or
warehousing;
(B) that was designated as an enterprise project
under Chapter 2303, Government Code, on or after September 1, 2003,
and approved as a triple jumbo enterprise project, as defined by
Section 2303.407, Government Code, on or before September 1, 2004;
or
(C) that was designated as a defense readjustment
project under Chapter 2310, Government Code, on or after September
1, 2001.
(9) "Qualifying job" means:
(A) a new permanent full-time job that:
(i) [(A)] is located in:
(a) [(i)] a strategic investment
area; or
(b) [(ii)] a county within this state
with a population of less than 50,000, if the job is created by a
business primarily engaged in agricultural processing;
(ii) [(B)] requires at least 1,600 hours of
work a year;
(iii) [(C)] pays at least 110 percent of
the county average weekly wage for the county where the job is
located;
(iv) [(D)] is covered by a group health
benefit plan for which the business pays at least 80 percent of the
premiums or other charges assessed under the plan for the employee;
(v) [(E)] is not transferred from one area
in this state to another area in this state; and
(vi) [(F)] is not created to replace a
previous employee;
(B) a new permanent full-time job created by an
enterprise project at a qualified business site, as defined by
Section 2303.003, Government Code, regardless of whether the job
meets the qualifications prescribed by Paragraph (A)(i)(a); or
(C) a new permanent full-time job created by a
qualified business described by Subdivision (8)(C).
SECTION 96. Subchapter P, Chapter 171, Tax Code, is amended
by adding Section 171.7542 to read as follows:
Sec. 171.7542. LENGTH OF CREDIT. (a) This section applies
only to a corporation that was:
(1) designated as an enterprise project on or after
September 1, 2003, and approved as a triple jumbo enterprise
project, as defined by Section 2303.407, Government Code, on or
before September 1, 2004; or
(2) designated as a defense readjustment project under
Chapter 2310, Government Code, on or after September 1, 2001.
(b) Notwithstanding Section 171.753, a corporation to which
this section applies may establish a one-time credit equal to 25
percent of the total wages and salaries paid or to be paid by the
corporation for qualifying jobs created during the period beginning
on the date the project is designated as an enterprise project or as
a defense readjustment project, as applicable, through December 31,
2008. Wages and salaries for each qualifying job may only be
counted once in calculating the credit.
(c) Subject to Sections 171.755 and 171.756, the
corporation may claim:
(1) the entire amount of the credit established under
Subsection (b) on the first report originally due on or after
January 1, 2006; or
(2) an equal portion of the total credit established
under Subsection (b) on each report originally due on or after
January 1, 2006, and before January 1, 2009.
(d) A corporation that establishes the credit authorized by
Subsection (b) shall provide to the comptroller an estimate of the
total wages and salaries on which the corporation establishes the
credit. The corporation shall provide the estimate on the first
report originally due on or after January 1, 2006.
(e) The credit provided by this section is conditioned on
the corporation attaining the total level of wages and salaries for
qualifying jobs estimated in Subsection (b). After December 31,
2008, the comptroller shall certify whether that level was
attained. On certifying that such level has not been attained, the
comptroller shall assess that portion of the credit attributable to
any such deficiency, including penalty and interest from the date
the credit was taken.
(f) This section expires January 1, 2009.
SECTION 97. Section 171.801, Tax Code, is amended by
amending Subdivision (2) and adding Subdivision (4) to read as
follows:
(2) "Qualified capital investment" means tangible
personal property first placed in service in a strategic investment
area, [or] first placed in service in a county with a population of
less than 50,000 by a corporation primarily engaged in agricultural
processing, first placed in service by an enterprise project,
regardless of whether the project is located in an enterprise zone,
as defined by Section 2303.003, Government Code, or first placed in
service by a defense readjustment project, and that is described in
Section 1245(a), Internal Revenue Code, such as engines, machinery,
tools, and implements used in a trade or business or held for
investment and subject to an allowance for depreciation, cost
recovery under the accelerated cost recovery system, or
amortization. The term does not include real property or buildings
and their structural components. Property that is leased under a
capitalized lease is considered a "qualified capital investment,"
but property that is leased under an operating lease is not
considered a "qualified capital investment." Property expensed
under Section 179, Internal Revenue Code, is not considered a
"qualified capital investment."
(4) "Defense readjustment project" and "enterprise
project" have the meanings assigned by Section 171.751.
SECTION 98. Section 171.8015, Tax Code, is amended to read
as follows:
Sec. 171.8015. TANGIBLE PERSONAL PROPERTY FIRST PLACED IN
SERVICE BY [IN] AN ENTERPRISE PROJECT [ZONE]. For purposes of
determining whether an investment is a "qualified capital
investment" under Section 171.801, "tangible personal property
first placed in service by [in] an enterprise project [zone]"
includes tangible personal property:
(1) purchased by an enterprise project [by a qualified
business] for placement in an incomplete improvement that is under
active construction or other physical preparation;
(2) identified by a purchase order, invoice, billing,
sales slip, or contract; and
(3) physically present at the enterprise project's
qualified business site, as defined by Section 2303.003, Government
Code, [zone] and in use by the enterprise project on the original
due date of the report on which the credit is established [qualified
business not later than September 30, 2005].
SECTION 99. Section 171.802, Tax Code, is amended by
amending Subsection (c) and adding Subsection (d-1) to read as
follows:
(c) A corporation may claim a credit or take a carryforward
credit without regard to whether the strategic investment area or
enterprise zone in which it made the qualified capital investment
subsequently loses its designation as a strategic investment area
or enterprise zone, if applicable.
(d-1) A corporation may qualify for the credit provided by
this subchapter, regardless of whether the corporation meets the
qualifications prescribed by Subsection (b), if that corporation
was:
(1) designated as an enterprise project on or after
September 1, 2003, and approved as a triple jumbo enterprise
project, as defined by Section 2303.407, Government Code, on or
before September 1, 2004, without regard to whether the enterprise
project is located in an enterprise zone; or
(2) designated as a defense readjustment project under
Chapter 2310, Government Code, on or after September 1, 2001.
SECTION 100. Section 171.804, Tax Code, is amended to read
as follows:
Sec. 171.804. LENGTH OF CREDIT. (a) Except as provided by
Subsection (b), the [The] credit established shall be claimed in
five equal installments of one-fifth the credit amount over the
five consecutive reports beginning with the report based upon the
period during which the qualified capital investment was made.
(b) Subject to Section 171.805 and notwithstanding Section
171.803, an enterprise project or a defense readjustment project
may:
(1) establish a credit equal to 7.5 percent of the
qualified capital investment made beginning on the date the project
is designated through the ending date on which earned surplus is
based for the report. The corporation may claim the entire credit
earned on the first report originally due on or after September 1,
2003; and
(2) on each subsequent report originally due before
January 1, 2009, establish and claim a credit equal to 7.5 percent
of the qualified capital investment made during the period on which
earned surplus is based for the report.
(c) This section expires January 1, 2009.
SECTION 101. Section 351.102, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) As soon as practicable after each state fiscal year, the
comptroller shall report to the legislature for that fiscal year
the amount of state funds paid under Subsection (c).
SECTION 102. (a) Section 21.02, Tax Code, is amended by
amending Subsection (a) and adding Subsection (e) to read as
follows:
(a) Except as provided by Subsections [Subsection] (b) and
(e) and by Sections 21.021, 21.04, and 21.05, tangible personal
property is taxable by a taxing unit if:
(1) it is located in the unit on January 1 for more
than a temporary period;
(2) it normally is located in the unit, even though it
is outside the unit on January 1, if it is outside the unit only
temporarily;
(3) it normally is returned to the unit between uses
elsewhere and is not located in any one place for more than a
temporary period; or
(4) the owner resides (for property not used for
business purposes) or maintains the owner's [his] principal place
of business in this state (for property used for business purposes)
in the unit and the property is taxable in this state but does not
have a taxable situs pursuant to Subdivisions (1) through (3) of
this section.
(e) This subsection does not apply to a drilling rig
designed for offshore drilling or exploration operations. A mobile
portable drilling rig, and equipment associated with the drilling
rig, is taxable by the taxing unit in which the rig is located on
January 1 if the rig was located in the unit for the preceding 365
consecutive days. If the rig and associated equipment was not
located at its January 1 location for the preceding 365 days, it is
taxable by the taxing unit in which the owner's principal place of
business in this state is located on January 1.
(b) Section 21.02, Tax Code, as amended by Subsection (a) of
this section, applies only to an ad valorem tax year that begins on
or after January 1, 2006.
(c) This section takes effect January 1, 2006.
SECTION 103. (a) Section 52.006, Property Code, is amended
to read as follows:
Sec. 52.006. DURATION OF LIEN. (a) Except as provided by
Subsection (b), a [A] judgment lien continues for 10 years
following the date of recording and indexing the abstract, except
that if the judgment becomes dormant during that period the lien
ceases to exist.
(b) Notwithstanding Section 34.001, Civil Practice and
Remedies Code, a judgment in favor of the state or a state agency,
as that term is defined by Section 403.055, Government Code, does
not become dormant. A properly filed abstract of the judgment
continues to constitute a lien under Section 52.001 until the
earlier of the 20th anniversary of the date the abstract is recorded
and indexed or the date the judgment is satisfied or the lien is
released. The judgment lien may be renewed for one additional
20-year period by filing, before the expiration of the initial
20-year period, a renewed abstract of judgment in the same manner as
the original abstract of judgment is filed. The renewed judgment
lien relates back to the date the original abstract of judgment was
filed.
(b) The change in law made by this Act by amending Section
52.006, Property Code, applies to:
(1) a judgment, if the judgment is not then dormant,
that exists on the effective date of this Act;
(2) a judgment lien on record before the effective
date of this Act; or
(3) a judgment entered or abstract of judgment
recorded and indexed on or after the effective date of this Act.
SECTION 104. Chapter 403, Government Code, is amended by
adding Subchapter O to read as follows:
SUBCHAPTER O. INDIVIDUAL DEVELOPMENT ACCOUNTS FOR CERTAIN
LOW-INCOME INDIVIDUALS AND HOUSEHOLDS
Sec. 403.351. DEFINITIONS. In this subchapter:
(1) "Financial institution" has the meaning assigned
by Section 201.101, Finance Code.
(2) "Individual development account" means a deposit
account established by a participant at a financial institution
selected by a sponsoring organization.
(3) "Participant" means an individual or household
that has entered into an agreement with a sponsoring organization
to participate in the program.
(4) "Program" means the individual development
account program established under this subchapter.
(5) "Service provider" means a person to whom a
qualified expenditure from a participant's individual development
account is made. The term includes:
(A) a public or private institution of higher
education;
(B) a provider of occupational or vocational
education, including a proprietary school;
(C) a mortgage lender;
(D) a title insurance company;
(E) the lessor or vendor of office supplies or
equipment or retail space, office space, or other business space;
and
(F) any other provider of goods or services used
for the commencement of a business.
(6) "Sponsoring organization":
(A) means a nonprofit organization that is:
(i) exempt from taxation under Section
501(a), Internal Revenue Code of 1986, as an organization described
by Section 501(c)(3) of that code; and
(ii) selected by the comptroller to
establish and administer individual development accounts under the
program; and
(B) includes an Indian tribe, as defined by
Section 4(12) of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. Section 4103(12)),
including any tribal subsidiary, division, or other wholly owned
tribal entity of an Indian tribe.
Sec. 403.352. ESTABLISHMENT OF PROGRAM; RULES. (a) The
comptroller by rule shall develop and implement a program under
which:
(1) individual development accounts are facilitated
and administered by sponsoring organizations for eligible
low-income individuals and households to provide those individuals
and households with an opportunity to accumulate assets and to
facilitate and mobilize savings; and
(2) sponsoring organizations are provided grant funds
for use in administering the program and matching qualified
expenditures made by program participants. At least 85 percent of
the grant funds must be used by the sponsoring organization for
matching qualified expenditures.
(b) The comptroller shall contract with sponsoring
organizations to facilitate the establishment of and to administer
the individual development accounts in accordance with the rules
adopted by the comptroller. The comptroller's rules promulgated to
implement this subchapter shall include guidelines for contract
monitoring, reporting, and termination of grant recipients.
(c) In adopting rules under the program, the comptroller
shall state the selection criteria for sponsoring organizations.
The comptroller shall give priority to organizations that have
demonstrated:
(1) a capacity to administer individual account
programs; and
(2) a commitment to serve areas of the state that
currently do not have individual development account programs
available.
Sec. 403.353. PARTICIPANT ELIGIBILITY. (a) The
comptroller by rule shall establish eligibility criteria for
participants in the program.
(b) The eligibility criteria established by the comptroller
must:
(1) require an eligible individual or member of an
eligible household, other than an eligible individual or member of
an eligible household receiving supplemental security income or
other public disability payments, to agree to make regular
contributions to the individual's or household's individual
development account from the individual's or household's earned
income;
(2) provide that the annual income of an eligible
individual or household may not exceed 200 percent of the poverty
level according to the federal Office of Management and Budget
poverty index;
(3) establish the rate at which a participant's
contributions to the individual development account may be matched,
not to exceed the match rate established by the federal Assets for
Independence Act (Pub. L. No. 105-285); and
(4) establish limits on the amount of matching funds a
participant is eligible to receive, not to exceed the limit on
federal matching funds established by the federal Assets for
Independence Act.
Sec. 403.354. CONTRIBUTIONS AND EXPENDITURES BY
PARTICIPANT. (a) A participant may contribute to the
participant's individual development account.
(b) A participant's contributions to the participant's
individual development account shall accrue interest.
(c) A participant may withdraw money from the participant's
account only to pay for the following qualified expenditures:
(1) postsecondary educational or training expenses
for the adult account holder and dependent children;
(2) the expenses of purchasing or financing a home for
the adult account holder for the first time;
(3) the expenses of a self-employment enterprise; and
(4) start-up business expenses for the adult account
holder.
Sec. 403.355. DUTIES OF SPONSORING ORGANIZATIONS. (a) The
comptroller shall promulgate rules that establish the duties of
sponsoring organizations that shall include recruiting
requirements, standards for determination of eligibility of
participants, education of participants, operations and account
management, solicitation of matching funds, and such other subjects
as may be deemed necessary by the comptroller to carry out the
purposes and objectives of this subchapter.
(b) Each sponsoring organization shall provide to the
comptroller any information necessary to evaluate the sponsoring
organization's performance in fulfilling the duties outlined in
Subsection (a).
Sec. 403.356. MATCHING FUNDS; LIMITATIONS ON AMOUNT AND
AVAILABILITY. (a) At the time a participant in the program makes a
withdrawal for a qualified expenditure described by Section
403.504(c) from the participant's individual development account,
the participant shall receive matching funds from the sponsoring
organization, payable directly to the service provider.
(b) If federal Assets for Independence Act money is used as
matching funds, the amount of federal matching funds spent for each
individual development account may not exceed the limits
established by the federal Assets for Independence Act. If money
other than federal Assets for Independence Act money is used as
matching funds, the comptroller by rule may set a different limit on
the amount of matching funds that may be spent for each account.
(c) This subchapter may not be construed to create an
entitlement of a participant to receive matching funds. The number
of participants who receive matching funds under the program in any
year is limited by the amount of funds available for that purpose in
that year.
Sec. 403.357. TERMINATION OF ACCOUNT FOR UNQUALIFIED
WITHDRAWALS. (a) The comptroller by rule shall establish
guidelines to ensure that a participant does not withdraw funds in
the individual development account, except for a qualified
expenditure described by Section 403.504(c). These guidelines
shall:
(1) include a requirement that a sponsoring
organization approve a participant's request to make a withdrawal
from an individual development account in writing;
(2) provide that no participant may withdraw funds
from an individual development account earlier than six months
after the date on which the participant first deposits funds in the
account; and
(3) require a participant to reimburse the individual
development account for any funds withdrawn for a purpose other
than for a qualified expenditure described by Section 403.504(c).
(b) The sponsoring organization shall instruct the
financial institution to terminate the participant's account if the
participant does not comply with the guidelines established under
Subsection (a).
(c) A participant whose individual development account is
terminated under this section is entitled to withdraw from the
participant's account the amount of money the participant
contributed to the account and any interest that has accrued on that
amount.
Sec. 403.358. FUNDING. (a) The legislature may
appropriate money for the purposes of this subchapter.
(b) The comptroller may accept gifts, grants, and donations
from any public or private source for the purposes of this
subchapter.
Sec. 403.359. INTERAGENCY CONTRACTS. The comptroller may
enter into interagency contracts with other state agencies to
facilitate the effective administration of this subchapter.
SECTION 105. Subchapter G, Chapter 2303, Government Code,
is amended by adding Section 2303.5056 to read as follows:
Sec. 2303.5056. REFUND, REBATE, OR PAYMENT OF TAX PROCEEDS
TO CONVENTION CENTER HOTEL PROJECT. (a) In this section, "eligible
taxable proceeds" means taxable proceeds generated, paid, or
collected by a hotel described by Subsection (b) or a business at
that hotel, including hotel occupancy taxes, ad valorem taxes,
sales and use taxes, and mixed beverage taxes.
(b) This section applies only to a hotel proposed to be
constructed, remodeled, or rehabilitated by a municipality or a
nonprofit municipally sponsored local government corporation
created under Chapter 431, Transportation Code, that is within
3,000 feet of the property line of a convention center owned by a
municipality having a population of more than 500,000 that borders
the United Mexican States.
(c) For a period that may not exceed 10 years, a
governmental body, including a municipality, county, or political
subdivision, may agree to rebate, refund, or pay eligible taxable
proceeds of the governmental body to the owner of a hotel described
by Subsection (b) at which the eligible taxable proceeds were
generated.
(d) A municipality in which a hotel described by Subsection
(b) is located may agree to guarantee from hotel occupancy taxes the
bonds or other obligations of a municipally sponsored local
government corporation created under Chapter 431, Transportation
Code, that were issued or incurred to pay the cost of construction,
remodeling, or rehabilitation of a convention center hotel project.
(e) An agreement under this section must be in writing,
contain an expiration date, and require the beneficiary to provide
documentation necessary to support a claim.
(f) A governmental body that makes an agreement under this
section shall make the rebate, refund, or payment directly to the
beneficiary.
SECTION 106. Section 351.001(2), Tax Code, is amended to
read as follows:
(2) "Convention center facilities" or "convention
center complex" means facilities that are primarily used to host
conventions and meetings. The term means civic centers, civic
center buildings, auditoriums, exhibition halls, and coliseums
that are owned by the municipality or other governmental entity or
that are managed in whole or part by the municipality. In a
municipality with a population of 1.5 million or more, "convention
center facilities" or "convention center complex" means civic
centers, civic center buildings, auditoriums, exhibition halls,
and coliseums that are owned by the municipality or other
governmental entity or that are managed in part by the
municipality, hotels owned by the municipality or a nonprofit
municipally sponsored local government corporation created under
Chapter 431, Transportation Code, within 1,000 feet of a convention
center owned by the municipality, or a historic hotel owned by the
municipality or a nonprofit municipally sponsored local government
corporation created under Chapter 431, Transportation Code, within
one mile of a convention center owned by the municipality. The term
includes parking areas or facilities that are for the parking or
storage of conveyances and that are located at or in the vicinity of
other convention center facilities. The term also includes a hotel
owned by or located on land that is owned by an eligible central
municipality or by a nonprofit corporation acting on behalf of an
eligible central municipality and that is located within 1,000 feet
of a convention center facility owned by the municipality. The term
also includes a hotel proposed to be constructed, remodeled, or
rehabilitated by a municipality or a nonprofit municipally
sponsored local government corporation created under Chapter 431,
Transportation Code, that is within 3,000 feet of the property line
of a convention center owned by a municipality having a population
of more than 500,000 that borders the United Mexican States.
SECTION 107. Section 351.102(a), Tax Code, is amended to
read as follows:
(a) Subject to the limitations provided by this subchapter,
a municipality may pledge the revenue derived from the tax imposed
under this chapter for the payment of bonds that are issued under
Section 1504.002(a), Government Code, for one or more of the
purposes provided by Section 351.101 or, in the case of a
municipality of 1,500,000 or more or a municipality that has a
population of more than 500,000 and that borders the United Mexican
States, for the payment of principal of or interest on bonds or
other obligations of a municipally sponsored local government
corporation created under Chapter 431, Transportation Code, that
were issued to pay the cost of the acquisition and construction of a
convention center hotel or the cost of acquisition, remodeling, or
rehabilitation of a historic hotel structure; provided, however,
such pledge may only be that portion of the tax collected at such
hotel.
SECTION 108. Section 403.016, Government Code, is amended
by adding Subsection (k) to read as follows:
(k) Notwithstanding other provisions of the law, the
comptroller is authorized to enter into an interagency agreement
with the Health and Human Services Commission to implement a method
of salary payment using electronic paycards for employees of health
and human services agencies.
(1) The comptroller may solicit proposals to implement
the electronic paycards with a private vendor.
(2) If cost-effective, the comptroller may replace
warrants with the electronic paycard.
(3) Employees may not be charged for the electronic
paycard or the receipt of salary payment on the electronic paycard.
(4) The comptroller may adopt rules as necessary to
implement this subsection.
SECTION 109. (a) Section 11.18(d), Tax Code, is amended to
read as follows:
(d) A charitable organization must be organized exclusively
to perform religious, charitable, scientific, literary, or
educational purposes and, except as permitted by Subsections (h)
and (l), engage exclusively in performing one or more of the
following charitable functions:
(1) providing medical care without regard to the
beneficiaries' ability to pay, which in the case of a nonprofit
hospital or hospital system means providing charity care and
community benefits in accordance with Section 11.1801;
(2) providing support or relief to orphans,
delinquent, dependent, or handicapped children in need of
residential care, abused or battered spouses or children in need of
temporary shelter, the impoverished, or victims of natural disaster
without regard to the beneficiaries' ability to pay;
(3) providing support to elderly persons, including
the provision of recreational or social activities and facilities
designed to address the special needs of elderly persons, or to the
handicapped, without regard to the beneficiaries' ability to pay;
(4) preserving a historical landmark or site;
(5) promoting or operating a museum, zoo, library,
theater of the dramatic or performing arts, or symphony orchestra
or choir;
(6) promoting or providing humane treatment of
animals;
(7) acquiring, storing, transporting, selling, or
distributing water for public use;
(8) answering fire alarms and extinguishing fires with
no compensation or only nominal compensation to the members of the
organization;
(9) promoting the athletic development of boys or
girls under the age of 18 years;
(10) preserving or conserving wildlife;
(11) promoting educational development through loans
or scholarships to students;
(12) providing halfway house services pursuant to a
certification as a halfway house by the pardons and paroles
division of the Texas Department of Criminal Justice;
(13) providing permanent housing and related social,
health care, and educational facilities for persons who are 62
years of age or older without regard to the residents' ability to
pay;
(14) promoting or operating an art gallery, museum, or
collection, in a permanent location or on tour, that is open to the
public;
(15) providing for the organized solicitation and
collection for distributions through gifts, grants, and agreements
to nonprofit charitable, education, religious, and youth
organizations that provide direct human, health, and welfare
services;
(16) performing biomedical or scientific research or
biomedical or scientific education for the benefit of the public;
(17) operating a television station that produces or
broadcasts educational, cultural, or other public interest
programming and that receives grants from the Corporation for
Public Broadcasting under 47 U.S.C. Section 396, as amended;
(18) providing housing for low-income and
moderate-income families, for unmarried individuals 62 years of age
or older, for handicapped individuals, and for families displaced
by urban renewal, through the use of trust assets that are
irrevocably and, pursuant to a contract entered into before
December 31, 1972, contractually dedicated on the sale or
disposition of the housing to a charitable organization that
performs charitable functions described by Subdivision (9);
(19) providing housing and related services to persons
who are 62 years of age or older in a retirement community, if the
retirement community provides independent living services,
assisted living services, and nursing services to its residents on
a single campus:
(A) without regard to the residents' ability to
pay; or
(B) in which at least four percent of the
retirement community's combined net resident revenue is provided in
charitable care to its residents; [or]
(20) providing housing on a cooperative basis to
students of an institution of higher education if:
(A) the organization is exempt from federal
income taxation under Section 501(a), Internal Revenue Code of
1986, as amended, by being listed as an exempt entity under Section
501(c)(3) of that code;
(B) membership in the organization is open to all
students enrolled in the institution and is not limited to those
chosen by current members of the organization;
(C) the organization is governed by its members;
and
(D) the members of the organization share the
responsibility for managing the housing; or
(21) operating a radio station that broadcasts
educational, cultural, or other public interest programming,
including classical music, and that is funded entirely through
donations made by listeners or other donors.
(b) Section 11.18(d), Tax Code, as amended by this section,
applies only to an ad valorem tax year that begins on or after
January 1, 2006.
SECTION 110. (a) Subchapters A and C, Chapter 2108,
Government Code, are repealed.
(b) The heading to Subchapter B, Chapter 2108, Government
Code, is repealed.
(c) Sections 2108.0235, 2108.025 through 2108.036, and
2108.039, Government Code, are repealed.
(d) The Texas Incentive and Productivity Commission
established under Subchapter A, Chapter 2108, Government Code, as
that subchapter existed prior to repeal by this Act, is abolished on
the effective date of this Act.
SECTION 111. Section 162.227, Tax Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) A license holder may take a credit on a return for the
period in which the purchase occurred, and a person who does not
hold a license may file a refund claim with the comptroller, if the
license holder or person paid tax on diesel fuel and the diesel fuel
is used in this state:
(1) as a feedstock or other component in the further
manufacturing of tangible personal property for resale not as a
motor fuel; or
(2) in the original production of oil or gas or to
increase the production of oil or gas.
SECTION 112. (a) Chapter 161, Health and Safety Code, is
amended by adding Subchapter V to read as follows:
SUBCHAPTER V. INTERNET OR MAIL-ORDER SALES OF
CIGARETTES AND TOBACCO PRODUCTS
Sec. 161.651. DEFINITIONS. (a) In this subchapter:
(1) "Cigarette" has the meaning assigned by Section
154.001, Tax Code.
(2) "Tobacco product" has the meaning assigned by
Sections 155.001(15)(C)-(E), Tax Code.
(b) In this subchapter, "common carrier," "consumer,"
"distributor," "importer," "manufacturer," "permit holder,"
"retailer," and "wholesaler" have the meanings assigned by Section
154.001 or 155.001, Tax Code, as applicable.
Sec. 161.652. APPLICABILITY OF SUBCHAPTER TO INDIAN TRIBES.
This subchapter does not apply to cigarette or tobacco product
sales by an Indian tribe, as defined by 25 U.S.C. Section 450b(e),
or by members of the Indian tribe, to a consumer in this state if the
consumer is a verified adult member of that Indian tribe and the
buyer and seller are each located on land over which the tribe
exercises governmental power and that is owned or occupied by that
tribe.
Sec. 161.653. CERTAIN DELIVERIES OF CIGARETTES AND TOBACCO
PRODUCTS PROHIBITED. (a) A distributor, importer, manufacturer,
retailer, wholesaler, or other person engaged in the business of
manufacturing, distributing, or selling cigarettes or tobacco
products, including selling cigarettes or tobacco products over the
Internet or through mail-order sales, may not sell, offer for sale,
deliver, or cause to be delivered any cigarettes or tobacco
products to a person in this state except in a face-to-face
transaction at the time of purchase unless the cigarettes or
tobacco products are in a container or wrapping plainly and visibly
marked on the exterior in a manner that indicates that there are
cigarettes or tobacco products inside and the sale or delivery is
made to one of the following persons for purposes other than
personal consumption by the recipient:
(1) a permit holder, including the holder's employees
or agents;
(2) a manufacturer or importer of tobacco products or
an export warehouse proprietor with a federal permit under 26
U.S.C. Section 5712 or an operator of a federally designated
customs bonded warehouse under 19 U.S.C. Section 1311 or 1555; or
(3) a person who is an officer, employee, or agent of
the United States government, this state, or a department, agency,
instrumentality, or political subdivision of the United States or
this state acting within the scope of the person's official duties.
(b) A person within the jurisdiction of this state's laws
may not knowingly transport cigarettes or tobacco products on
behalf of another person for commercial or business purposes for
delivery to a person in this state other than a person described by
Subsection (a)(1), (2), or (3). This subsection does not apply to a
common carrier or commercial delivery service that in the ordinary
course of business does not use bills of lading or other shipping
documents to identify the contents of packages transported by the
carrier or commercial delivery service.
(c) Except as specifically provided by Subsection (b), this
section does not apply to a common carrier or other delivery service
operating within the scope of its business as a common carrier or
delivery service.
Sec. 161.654. PERMIT HOLDER LIST. The comptroller shall
compile and make available on the comptroller's Internet website
and by other means a list of all persons who hold a permit under
Subchapter D, Chapter 154, or Subchapter C, Chapter 155, Tax Code.
The comptroller shall periodically update the list of persons
holding a permit under those subchapters.
Sec. 161.655. VIOLATOR'S LIST. (a) The comptroller shall
maintain a list of persons the comptroller determines have violated
Section 161.653(a) or are violating or offering to violate that
subsection.
(b) The comptroller shall provide to the United States
Postal Service, each common carrier and commercial delivery service
operating in this state, and any other person who delivers
cigarettes or tobacco products into or within this state a copy of
this subchapter and the list maintained under Subsection (a). The
comptroller shall provide updated copies of the list as the
comptroller determines is appropriate.
(c) Before adding a person to the list maintained under
Subsection (a), the comptroller shall provide 10 days' written
notice and an opportunity to be heard to that person. The notice
must include the text of this subchapter. The notice may be made by
an electronic communication.
(d) The list maintained under Subsection (a) is
confidential and not subject to disclosure under Chapter 552,
Government Code. The comptroller and each person who receives a
copy of the list from the comptroller under this section must
maintain the list as confidential and may use the list only to
comply with this subchapter.
Sec. 161.656. CARRIER AND DELIVERY SERVICE
RESPONSIBILITIES. (a) A person who is a common carrier or
commercial delivery service within the jurisdiction of this state's
laws who receives a copy of a list maintained under Section 161.655
may not, with the specific purpose of intentionally assisting in
the violation of this subchapter, make any deliveries in this state
on behalf of a person identified in the list. A person who is a
common carrier or commercial delivery service and who receives a
list maintained under Section 161.655 may make deliveries in this
state on behalf of a person who is identified in the list if:
(1) the person making the delivery knows or
affirmatively believes in good faith that the package does not
contain cigarettes or tobacco products; or
(2) the delivery is made to a person described by
Section 161.653(a)(1), (2), or (3).
(b) A person who delivers cigarettes or tobacco products and
receives a copy of a list maintained under Section 161.655:
(1) is not required to:
(A) inspect a package being delivered to
determine whether the package contains cigarettes or tobacco
products;
(B) determine whether the list is complete,
accurate, and up to date; or
(C) determine whether any person ordering or
requesting a delivery is in compliance with this subchapter;
(2) is not subject to any penalty for:
(A) failing to make a specific delivery on behalf
of a person on the list; or
(B) establishing and following a policy of not
making deliveries:
(i) in this state on behalf of a person on
the list;
(ii) of cigarettes or tobacco products in
this state; or
(iii) of cigarettes or tobacco products in
this state for any person that is not a distributor, manufacturer,
retailer, or wholesaler;
(3) is not subject to criminal penalties for a
violation of this subchapter unless the person intentionally
violates this subchapter for the specific purpose of:
(A) assisting a person engaged in the business of
manufacturing, distributing, or selling cigarettes or tobacco
products to violate this subchapter; or
(B) profiting from the violation of this
subchapter by another person; and
(4) may collect an additional fee from the person's
customers who order deliveries of cigarettes or tobacco products to
recover any costs incurred by the person related to complying with
this subchapter.
(c) An employee of a common carrier or commercial delivery
service or of any other person making deliveries for a carrier or
delivery service is not subject to criminal or civil penalties for
violating this subchapter unless the employee knowingly violates
this subchapter for the specific purpose of assisting a person
engaged in the business of manufacturing, distributing, or selling
cigarettes or tobacco products in violation of this subchapter.
Sec. 161.657. CIVIL PENALTIES. (a) Except as provided in
Section 161.656(c), a person who violates this subchapter is
subject to a civil penalty for each violation in an amount:
(1) of at least $500 and not more than the greater of
$5,000 or five times the value of the cigarettes or tobacco products
at issue; and
(2) equal to any profits, gain, gross receipts, or
other benefits received from the violation.
(b) A person who violates Section 161.653(a) must reimburse
this state and the applicable political subdivisions of this state
for all unpaid taxes that would otherwise have been imposed by this
state and those political subdivisions on the cigarettes and
tobacco products in question, plus interest, and for any other
damages incurred by the state or the political subdivision as a
result of the violation.
Sec. 161.658. CRIMINAL PENALTIES. Except as provided by
Sections 161.656(b)(3) and (c), a person who knowingly violates
Section 161.653 or 161.656(a) commits an offense. An offense under
this subsection is a Class A misdemeanor, except that if it is shown
on the trial of the offense that the person has a previous
conviction under this subsection, the offense is a state jail
felony.
Sec. 161.659. COSTS. (a) The comptroller shall deposit an
amount equal to 50 percent of the civil penalties recovered by this
state under this subchapter to be appropriated only to the
comptroller, department, attorney general, and other state
agencies to enforce this subchapter or make related investigations
or to enforce other state laws relating to contraband cigarettes
and tobacco products, the collection of taxes on cigarettes and
tobacco products, and the prohibition of cigarette and tobacco
product sales to minors.
(b) In a civil action brought to enforce this subchapter,
the state is entitled to recover the costs of investigation, costs
of the action, and reasonable attorney's fees, plus interest.
Sec. 161.660. ENFORCEMENT. (a) The attorney general may
bring an action in the appropriate court in this state to enforce
this subchapter by seeking civil penalties and related damages or
equitable relief, including an action to prevent or restrain
actions by a person or a person controlling the person that violate
this subchapter or assist or encourage a violation of this
subchapter.
(b) On providing at least 15 days' notice to the attorney
general, enforcement officials of a political subdivision of this
state may bring an action in the appropriate court in this state, or
join an action being brought by the attorney general, to seek
damages and equitable relief or to prevent or restrain actions by a
person or a person controlling the person that violate this
subchapter or assist or encourage a violation of this subchapter.
(c) On providing at least 15 days' notice to the attorney
general, a person who holds a valid permit under 26 U.S.C. Section
5712 may bring an action in the appropriate court in this state, or
join an action being brought by the attorney general, to prevent or
restrain actions by a person or a person controlling the person that
violate this subchapter or assist or encourage a violation of this
subchapter.
(d) On receiving notice from another person of the person's
intent to bring an action under this subchapter in the appropriate
court in this state, the attorney general may choose to join in the
other person's action or bring an action by this state in its stead
and shall inform the person providing notice of how the attorney
general will proceed not later than the 15th day after receiving the
notice.
(e) The attorney general shall make public, by posting on
the Internet and other means, a list of all actions taken to enforce
this subchapter and a list of all persons found to have violated
this subchapter, including the persons' names, addresses, and any
other information the attorney general believes may be useful to
other jurisdictions enforcing laws prohibiting or restricting
cigarette or tobacco product sales for personal consumption in
which the seller and buyer do not initiate and complete the entire
transaction in each other's physical presence.
(b) Effective September 1, 2006, Subchapter R, Chapter 161,
Health and Safety Code, as added by Chapter 730, Acts of the 78th
Legislature, Regular Session, 2003, is repealed.
(c) Not later than January 1, 2006, the comptroller shall
post the list of persons who hold permits under Subchapter D,
Chapter 154, Tax Code, or Subchapter C, Chapter 155, Tax Code, as
required by Section 161.654, Health and Safety Code, as added by
this section.
(d) Not later than June 1, 2006, the comptroller shall
create and distribute the list as required by Section 161.655,
Health and Safety Code, as added by this section.
(e) Notwithstanding Subchapter V, Chapter 161, Health and
Safety Code, as added by this section, a person is not subject to a
penalty for a violation of that subchapter before September 1,
2006.
(f) The change in law made by this section applies only to an
offense committed on or after September 1, 2006. An offense
committed before September 1, 2006, is covered by the law in effect
when the offense was committed, and the former law is continued in
effect for that purpose. For purposes of this subsection, an
offense was committed before September 1, 2006, if any element of
the offense was committed before that date.
(g) This section takes effect November 1, 2005, except that
Sections 161.657-161.660, Health and Safety Code, as added by this
section, take effect September 1, 2006.
SECTION 113. (a) Article 59.01(2), Code of Criminal
Procedure, as amended by H.B. No. 840, H.B. No. 1048, H.B. No. 2018,
and H.B. No. 2275, 79th Legislature, Regular Session, 2005, is
reenacted and amended to read as follows:
(2) "Contraband" means property of any nature,
including real, personal, tangible, or intangible, that is:
(A) used in the commission of:
(i) any first or second degree felony under
the Penal Code;
(ii) any felony under Section 15.031(b),
20.05, 21.11, 38.04, Subchapter B of Chapter 43, or Chapter 29, 30,
31, 32, 33, 33A, or 35, Penal Code;
(iii) any felony under The Securities Act
(Article 581-1 et seq., Vernon's Texas Civil Statutes); or
(iv) any offense under Chapter 49, Penal
Code, that is punishable as a felony of the third degree or state
jail felony, if the defendant has been previously convicted three
times of an offense under that chapter;
(B) used or intended to be used in the commission
of:
(i) any felony under Chapter 481, Health
and Safety Code (Texas Controlled Substances Act);
(ii) any felony under Chapter 483, Health
and Safety Code;
(iii) a felony under Chapter 153, Finance
Code;
(iv) any felony under Chapter 34, Penal
Code;
(v) a Class A misdemeanor under Subchapter
B, Chapter 365, Health and Safety Code, if the defendant has been
previously convicted twice of an offense under that subchapter;
(vi) any felony under Chapter 152, Finance
Code;
(vii) any felony under Chapter 31, 32, or
37, Penal Code, that involves the state Medicaid program, or any
felony under Chapter 36, Human Resources Code; [or]
(viii) a Class A misdemeanor or state jail
felony under Subchapter V, Chapter 161, Health and Safety Code; or
(ix) a Class B misdemeanor under Section
35.60, Business & Commerce Code;
(C) the proceeds gained from the commission of a
felony listed in Paragraph (A) or (B) of this subdivision, a
misdemeanor listed in Paragraph (B)(ix) [(B)(viii)] of this
subdivision, or a crime of violence;
(D) acquired with proceeds gained from the
commission of a felony listed in Paragraph (A) or (B) of this
subdivision, a misdemeanor listed in Paragraph (B)(ix) [(B)(viii)]
of this subdivision, or a crime of violence; or
(E) used to facilitate or intended to be used to
facilitate the commission of a felony under Section 15.031 or
43.25, Penal Code.
(b) The change in law made by this section applies only to an
offense committed on or after September 1, 2006. An offense
committed before September 1, 2006, is covered by the law in effect
when the offense was committed, and the former law is continued in
effect for that purpose. For purposes of this subsection, an
offense was committed before September 1, 2006, if any element of
the offense was committed before that date.
(c) This section takes effect September 1, 2006.
SECTION 114. Notwithstanding any other law, the Health and
Human Services Commission and other health and human services
agencies may utilize digital signatures for administrative
functions and may require the use of digital signatures for
business transactions, if the commission determines that their use
is cost-effective.
SECTION 115. The following laws are repealed:
(1) Section 2303.516(c), Government Code;
(2) Section 981.056, Insurance Code; and
(3) Section 162.016(h), Tax Code.
SECTION 116. (a) Except as provided by Subsection (b) of
this section or as otherwise provided by this Act, this Act takes
effect immediately if it receives a vote of two-thirds of all the
members elected to each house, as provided by Section 39, Article
III, Texas Constitution. If this Act does not receive the vote
necessary for immediate effect:
(1) the changes, reenactments, and additions in law
made by this Act to the statutes that are not specifically listed in
this section take effect on the 91st day after the last day of the
legislative session, except as otherwise provided by this Act; and
(2) the changes in law made by this Act to the
following statutes take effect November 1, 2005:
(A) Section 103.0031, Code of Criminal
Procedure;
(B) Sections 25.0015, 25.00211, 26.007, 74.061,
403.071, 404.024, 660.024, 660.027, 2256.011, and 2256.016,
Government Code;
(C) Section 433, Probate Code;
(D) Sections 74.101, 74.401, 74.507, and 74.601,
Property Code; and
(E) Section 623.052, Transportation Code.
(b) The changes in law made by this Act by amending the
following statutes or adding the following statutes take effect
November 1, 2005:
(1) Section 43.002, Education Code;
(2) Sections 659.255, 659.256, 659.257, 2303.401,
2303.4072, 2303.504, 2303.516, and 2303.517, Government Code; and
(3) Sections 151.429, 151.4291, 151.715, 171.721,
171.751, 171.7542, 171.801, 171.8015, 171.802, and 171.804, Tax
Code.