By: Pitts H.B. No. 3540
A BILL TO BE ENTITLED
AN ACT
relating to certain fiscal matters affecting governmental
entities; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. DELAYED ELIGIBILITY FOR MEMBERSHIP IN EMPLOYEES
RETIREMENT SYSTEM OF TEXAS
SECTION 1.01. Section 812.003(e), Government Code, is
amended to read as follows:
(e) Membership [For persons whose employment or office
holding begins before September 1, 2005, membership] in the
employee class begins on the 91st day after the first day a person
is employed or holds office.
SECTION 1.02. Sections 812.003(d) and (h), Government Code,
are repealed.
ARTICLE 2. WAIVER OF AND SUPPLEMENTAL HEALTH COVERAGE
FOR STATE EMPLOYEES
SECTION 2.01. Section 1551.104(a), Insurance Code, is
amended to read as follows:
(a) Subject to Sections 1551.101 and 1551.102, each
full-time employee is covered automatically by the basic coverage
plan for employees and each annuitant is covered by the basic
coverage plan for annuitants unless:
(1) participation is specifically waived as provided
by Section 1551.1045;
(2) the employee or annuitant is expelled from the
program under Section 1551.351; or
(3) eligibility is otherwise limited by this chapter.
SECTION 2.02. Subchapter C, Chapter 1551, Insurance Code,
is amended by adding Section 1551.1045 to read as follows:
Sec. 1551.1045. WAIVER. (a) Subject to Subsections (b) and
(c), an employee or annuitant may waive in writing any coverage
provided under this chapter.
(b) To waive coverage under the basic coverage plan for
employees, a full-time employee must demonstrate, in the manner
required by the board of trustees, that the employee is:
(1) covered by another health benefit plan that
provides substantially equivalent coverage, as determined by the
board of trustees, to the coverage provided to employees by the
basic coverage plan; or
(2) eligible for benefits under the TRICARE Military
Health System.
(c) To waive coverage under the basic coverage plan for
annuitants for the purpose of eligibility for an incentive payment
under Section 1551.222, an annuitant must demonstrate, in the
manner required by the board of trustees, that the annuitant is:
(1) covered by another health benefit plan that
provides substantially equivalent coverage, as determined by the
board of trustees, to the coverage provided to annuitants by the
basic coverage plan; or
(2) eligible for benefits under the TRICARE Military
Health System.
SECTION 2.03. Subchapter E, Chapter 1551, Insurance Code,
is amended by adding Sections 1551.221 and 1551.222 to read as
follows:
Sec. 1551.221. OPTIONAL SUPPLEMENTAL HEALTH COVERAGE FOR
INDIVIDUALS ELIGIBLE UNDER TRICARE MILITARY HEALTH SYSTEM. (a)
The board of trustees shall offer, as an optional coverage under the
group benefits program, a supplemental health coverage program.
(b) Under the supplemental health coverage program, an
employee or annuitant who is eligible to participate in the group
benefits program and who is also eligible for benefits under the
TRICARE Military Health System may elect to receive primary
coverage under the TRICARE Military Health System. An employee or
annuitant participating in the supplemental health coverage
program must waive basic coverage through the group benefits
program, but receives supplemental health coverage under this
section.
(c) The cost of supplemental health coverage provided under
this section may be paid in the same manner as the cost of other
optional coverage is paid under Subchapter G.
(d) The board of trustees shall contract to purchase the
supplemental health coverage in accordance with Sections
1551.213-1551.216.
(e) The board of trustees may adopt rules to implement this
section.
Sec. 1551.222. INCENTIVE PAYMENTS. (a) The board of
trustees may allow an incentive payment under this section to an
employee or annuitant who elects to waive coverage under the basic
coverage plan for employees or annuitants as provided by Section
1551.1045(b) or (c).
(b) The incentive payment authorized by this section is in
the amount authorized by the General Appropriations Act and may be
used by the employee or annuitant, in the manner prescribed by the
board of trustees, only to pay for other group coverage plans
provided under the group benefits program, including the
supplemental health coverage offered under Section 1551.221.
(c) The board of trustees, at the time of initial enrollment
in the group benefits program and during subsequent open-enrollment
periods, shall inform employees and annuitants that they may make
an election described by Subsection (a), if eligible, and receive
any authorized incentive payment.
SECTION 2.04. Subchapter G, Chapter 1551, Insurance Code,
is amended by adding Section 1551.324 to read as follows:
Sec. 1551.324. REDUCTION IN CONTRIBUTION FOR CERTAIN ACTIVE
EMPLOYEES AND ANNUITANTS; INCENTIVE PAYMENTS. (a) Notwithstanding
any other provision of this subchapter, the state contribution for
an employee's coverage or an annuitant's coverage under this
chapter may be reduced, as provided in the General Appropriations
Act, to reflect the reduced cost of coverage for an employee or
annuitant who elects to waive basic coverage as provided by Section
1551.1045(b) or (c).
(b) Instead of the full state contribution for an employee
or annuitant who makes an election described by Subsection (a), the
state may contribute, as specified by the General Appropriations
Act, an amount for the incentive payment authorized by Section
1551.222.
ARTICLE 3. COMPENSATION FOR CERTAIN STATE EMPLOYEES WHO RETURN TO
STATE EMPLOYMENT
SECTION 3.01. Section 659.042, Government Code, is amended
to read as follows:
Sec. 659.042. EXCLUSIONS. The following are not entitled
to longevity pay under this subchapter:
(1) a member of the legislature;
(2) an individual who holds a statewide office that is
normally filled by vote of the people;
(3) an independent contractor or an employee of an
independent contractor;
(4) a temporary employee;
(5) an officer or employee of a public junior college;
[or]
(6) an academic employee of a state institution of
higher education; or
(7) a state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee.
SECTION 3.02. Section 659.126, Government Code, is amended
to read as follows:
Sec. 659.126. LOSS OF ELIGIBILITY TO RECEIVE BENEFIT
REPLACEMENT PAY. (a) An eligible state employee who leaves state
employment after August 31, 1995, for at least 30 consecutive days
[12 consecutive months], on returning to state employment or on
assuming a state office, is ineligible to receive benefit
replacement pay.
(b) An eligible state-paid judge who leaves office after
August 31, 1995, for at least 30 consecutive days [12 consecutive
months], on return to state office or on accepting a state
employment, is ineligible to receive benefit replacement pay.
(c) For purposes of Subsection (a), a state employee is not
considered to have left state employment:
(1) while the state employee is on an unpaid leave of
absence as provided by Section 661.909; or
(2) during a period of time the employee is not working
for the state because the employee's employment with the state
customarily does not include that period of time, such as a teacher
whose employment does not invariably include the summer months.
(d) An eligible state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee is ineligible to receive benefit
replacement pay.
SECTION 3.03. Section 661.152, Government Code, is amended
by adding Subsection (l) to read as follows:
(l) For purposes of computing vacation leave under
Subsection (d) for a state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee, years of total state employment
includes only the length of state employment after the date the
state employee retired.
SECTION 3.04. This article takes effect September 1, 2005.
ARTICLE 4. EXTENDING STATE REIMBURSEMENT PROGRAM: PETROLEUM
STORAGE TANKS
SECTION 4.01. Section 26.351(f), Water Code, is amended to
read as follows:
(f) The person performing corrective action under this
section, if the release was reported to the commission on or before
December 22, 1998, shall meet the following deadlines:
(1) a complete site assessment and risk assessment
(including, but not limited to, risk-based criteria for
establishing target concentrations), as determined by the
executive director, must be received by the agency no later than
September 1, 2002;
(2) a complete corrective action plan, as determined
by the executive director and including, but not limited to,
completion of pilot studies and recommendation of a cost-effective
and technically appropriate remediation methodology, must be
received by the agency no later than September 1, 2003. The person
may, in lieu of this requirement, submit by this same deadline a
demonstration that a corrective action plan is not required for the
site in question under commission rules. Such demonstration must
be to the executive director's satisfaction;
(3) for those sites found under Subdivision (2) to
require a corrective action plan, that plan must be initiated and
proceeding according to the requirements and deadlines in the
approved plan no later than March 1, 2004;
(4) for sites which require either a corrective action
plan or groundwater monitoring, a comprehensive and accurate annual
status report concerning those activities must be submitted to the
agency;
(5) for sites which require either a corrective action
plan or groundwater monitoring, all deadlines set by the executive
director concerning the corrective action plan or approved
groundwater monitoring plan shall be met; and
(6) for sites that require either a corrective action
plan or groundwater monitoring, have met all other deadlines under
this subsection, and have submitted annual progress reports that
demonstrate progress toward meeting closure requirements, a site
closure request must be submitted to [requests for all sites where]
the executive director [agreed in writing that no corrective action
plan was required must be received by the agency] no later than
September 1, 2007 [2005]. The request must be complete, as judged
by the executive director.
SECTION 4.02. Section 26.355(b), Water Code, is amended to
read as follows:
(b) An owner or operator of an underground or aboveground
storage tank from which a regulated substance is released is liable
to the state unless:
(1) the release was caused by:
(A) [(1)] an act of God;
(B) [(2)] an act of war;
(C) [(3)] the negligence of the State of
Texas or the United States; or
(D) [(4)] an act or omission of a third
party; or
(2) the site at which the release occurred has been
admitted into the petroleum storage tank state-lead program under
Section 26.3573(r-1).
SECTION 4.03. Section 26.35731(b), Water Code, is amended
to read as follows:
(b) The commission has discretion whether to postpone
considering, processing, or paying [may not consider, process, or
pay] a claim for reimbursement from the petroleum storage tank
remediation account for corrective action work begun without prior
commission approval after September 1, 1993, and filed with the
commission prior to January 1, 2005 [without prior commission
approval until all claims for reimbursement for corrective action
work preapproved by the commission have been considered, processed,
and paid].
SECTION 4.04. Section 26.3573, Water Code, is amended by
amending Subsections (d), (r), and (s) and adding Subsection (r-1)
to read as follows:
(d) The commission may use the money in the petroleum
storage tank remediation account to pay:
(1) necessary expenses associated with the
administration of the petroleum storage tank remediation account
and the groundwater protection cleanup program[, not to exceed an
amount equal to: 11.8 percent of the gross receipts of that account
for FY02/03; 16.40 percent of the gross receipts of that account for
FY04/05; and 21.1 percent of the gross receipts of that account for
FY06/07];
(2) expenses associated with investigation, cleanup,
or corrective action measures performed in response to a release or
threatened release from a petroleum storage tank, whether those
expenses are incurred by the commission or pursuant to a contract
between a contractor and an eligible owner or operator as
authorized by this subchapter; and
(3) subject to the conditions of Subsection (e) [of
this section], expenses associated with investigation, cleanup, or
corrective action measures performed in response to a release or
threatened release of hydraulic fluid or spent oil from hydraulic
lift systems or tanks located at a vehicle service and fueling
facility and used as part of the operations of that facility.
(r) Except as provided by Subsection (r-1), the [The]
petroleum storage tank remediation account may not be used to
reimburse any person for corrective action performed after
September 1, 2005.
(r-1) In this subsection, "state-lead program" means the
petroleum storage tank state-lead program administered by the
commission. The executive director shall grant an extension for
corrective action reimbursement to a person who is an eligible
owner or operator under Section 26.3571. The petroleum storage
tank remediation account may be used to reimburse an eligible owner
or operator for corrective action performed under an extension
before August 31, 2007. Not later than July 1, 2007, an eligible
owner or operator who is granted an extension under this subsection
may apply to the commission in writing using a form provided by the
commission to have the site subject to corrective action placed in
the state-lead program. The eligible owner or operator must agree
in the application to allow site access to state personnel and state
contractors as a condition of placement in the state-lead program
under this subsection. On receiving the application for placement
in the state-lead program under this subsection, the executive
director by order shall place the site in the state-lead program
until the corrective action is completed to the satisfaction of the
commission. An eligible owner or operator of a site that is placed
in the state-lead program under this subsection is not liable to the
commission for any costs related to the corrective action.
(s) The petroleum storage tank remediation account may not
be used to reimburse any person for corrective action contained in a
reimbursement claim filed with the commission after March 1, 2008
[2006].
SECTION 4.05. Section 26.3574(b), Water Code, is amended to
read as follows:
(b) A fee is imposed on the delivery of a petroleum product
on withdrawal from bulk of that product as provided by this
subsection. Each operator of a bulk facility on withdrawal from
bulk of a petroleum product shall collect from the person who orders
the withdrawal a fee in an amount determined as follows:
(1) $12.50 for each delivery into a cargo tank having a
capacity of less than 2,500 gallons for the state fiscal year
beginning September 1, 2001, and the state fiscal year beginning
September 1, 2002 [FY 02 and FY 03]; and $10.00 for each delivery
into a cargo tank having a capacity of less than 2,500 gallons for
the state fiscal year beginning September 1, 2003, through the
state fiscal year ending August 31, 2007 [FY 04 and FY 05; $5.00 for
each delivery into a cargo tank having a capacity of less than 2,500
gallons for FY 06; and $2.00 for each delivery into a cargo tank
having a capacity of less than 2,500 gallons for FY 07];
(2) $25.00 for each delivery into a cargo tank having a
capacity of 2,500 gallons or more but less than 5,000 gallons for
the state fiscal year beginning September 1, 2001, and the state
fiscal year beginning September 1, 2002 [FY 02 and FY 03]; and
$20.00 for each delivery into a cargo tank having a capacity of
2,500 gallons or more but less than 5,000 gallons for the state
fiscal year beginning September 1, 2003, through the state fiscal
year ending August 31, 2007 [FY 04 and FY 05; $10.00 for each
delivery into a cargo tank having a capacity of 2,500 gallons or
more but less than 5,000 gallons for FY 06; and $4.00 for each
delivery into a cargo tank having a capacity of 2,500 gallons or
more but less than 5,000 gallons for FY 07];
(3) $37.50 for each delivery into a cargo tank having a
capacity of 5,000 gallons or more but less than 8,000 gallons for
the state fiscal year beginning September 1, 2001, and the state
fiscal year beginning September 1, 2002 [FY 02 and FY 03]; and
$30.00 for each delivery into a cargo tank having a capacity of
5,000 gallons or more but less than 8,000 gallons for the state
fiscal year beginning September 1, 2003, through the state fiscal
year ending August 31, 2007 [FY 04 and FY 05; $15.00 for each
delivery into a cargo tank having a capacity of 5,000 gallons or
more but less than 8,000 gallons for FY 06; and $6.00 for each
delivery into a cargo tank having a capacity of 5,000 gallons or
more but less than 8,000 gallons for FY 07];
(4) $50.00 for each delivery into a cargo tank having a
capacity of 8,000 gallons or more but less than 10,000 gallons for
the state fiscal year beginning September 1, 2001, and the state
fiscal year beginning September 1, 2002 [FY 02 and FY 03]; and
$40.00 for each delivery into a cargo tank having a capacity of
8,000 gallons or more but less than 10,000 gallons for the state
fiscal year beginning September 1, 2003, through the state fiscal
year ending August 31, 2007 [FY 04 and FY 05; $20.00 for each
delivery into a cargo tank having a capacity of 8,000 gallons or
more but less than 10,000 gallons for FY 06; and $8.00 for each
delivery into a cargo tank having a capacity of 8,000 gallons or
more but less than 10,000 gallons for FY 07]; and
(5) a $25.00 fee for each increment of 5,000 gallons or
any part thereof delivered into a cargo tank having a capacity of
10,000 gallons or more for the state fiscal year beginning
September 1, 2001, and the state fiscal year beginning September 1,
2002 [FY 02 and FY 03]; and $20.00 for each increment of 5,000
gallons or any part thereof delivered into a cargo tank having a
capacity of 10,000 gallons or more for the state fiscal year
beginning September 1, 2003, through the state fiscal year ending
August 31, 2007 [FY 04 and FY 05; $10.00 for each increment of 5,000
gallons or any part thereof delivered into a cargo tank having a
capacity of 10,000 gallons or more for FY 06; and $4.00 for each
increment of 5,000 gallons or any part thereof delivered into a
cargo tank having a capacity of 10,000 gallons or more for FY 07].
SECTION 4.06. Section 26.361, Water Code, is amended to
read as follows:
Sec. 26.361. EXPIRATION OF REIMBURSEMENT PROGRAM.
Notwithstanding any other provision of this subchapter, the
reimbursement program established under this subchapter expires
September 1, 2008 [2006]. On or after September 1, 2008 [2006], the
commission may not use money from the petroleum storage tank
remediation account to reimburse an eligible owner or operator for
any expenses of corrective action or to pay the claim of a person
who has contracted with an eligible owner or operator to perform
corrective action.
SECTION 4.07. This article takes effect September 1, 2005.
ARTICLE 5. SCHOOL PROPERTY
VALUATION AND INSPECTIONS
SECTION 5.01. Section 46.008, Education Code, is amended to
read as follows:
Sec. 46.008. STANDARDS. (a) The commissioner shall
establish standards for adequacy of school facilities. The
standards must include requirements related to space, educational
adequacy, and construction quality. All new facilities constructed
after September 1, 1998, must meet the standards to be eligible to
be financed with state or local tax funds.
(b) To be eligible to be financed with state or local tax
funds, all industrialized buildings, as defined by Section
1202.003, Occupations Code, that are purchased or leased after
September 1, 2005, for use as school facilities must be inspected as
provided by Subchapter E, Chapter 1202, Occupations Code, to ensure
compliance with the mandatory building codes or approved designs,
plans, and specifications. The cost of the inspections shall be
paid by the manufacturers or builders of the industrialized
buildings as follows. The Texas Commission of Licensing and
Regulation shall set the amount of registration fees for the
manufacturers or builders of industrialized buildings under
Chapter 1202, Occupations Code, and the amount of inspection fees
under this section, in an amount sufficient to pay for the direct
and indirect costs of inspections under this section.
SECTION 5.02. Section 403.302(h), Government Code, is
amended to read as follows:
(h) On request of the commissioner of education or a school
district, the comptroller may audit the total taxable value of
property in a school district and may revise the annual study
findings. The request for audit is limited to corrections and
changes in a school district's appraisal roll that occurred after
preliminary certification of the annual study findings by the
comptroller. Except as otherwise provided by this subsection, the
request for audit must be filed with the comptroller not later than
the second [third] anniversary of the date of the final
certification of the annual study findings. The request for audit
may be filed not later than the first anniversary of the date the
chief appraiser certifies a change to the appraisal roll if the
chief appraiser corrects the appraisal roll under Section 25.25 or
42.41, Tax Code[, and the change results in a material reduction in
the total taxable value of property in the school district]. The
comptroller shall certify the findings of the audit to the
commissioner of education.
ARTICLE 6. LOTTERY ADVERTISING
SECTION 6.01. The Texas Lottery Commission shall study and
report to the legislature on the return on investment for
advertising dollars spent by the Texas Lottery Commission during
state fiscal year 2003 and fiscal year 2004.
ARTICLE 7. DRUG PURCHASING FOR STATE AGENCIES
SECTION 7.01. Section 531.070(h), Government Code, is
amended to read as follows:
(h) Subject to Subsection (i), the commission shall
negotiate with manufacturers and labelers, and may negotiate with
[including] generic manufacturers and labelers, to obtain
supplemental rebates for prescription drugs provided under:
(1) the Medicaid vendor drug program in excess of the
Medicaid rebates required by 42 U.S.C. Section 1396r-8 and its
subsequent amendments;
(2) the child health plan program; and
(3) any other state program administered by the
commission or a health and human services agency, including
community mental health centers and state mental health hospitals.
SECTION 7.02. Subchapter B, Chapter 531, Government Code,
is amended by adding Section 531.080 to read as follows:
Sec. 531.080. JOINT PURCHASING OF PRESCRIPTION DRUGS AND
OTHER MEDICATIONS. (a) Subject to Subsection (b), the commission
and each health and human services agency authorized by the
executive commissioner may enter into an agreement with one or more
other states for the joint bulk purchasing of prescription drugs
and other medications to be used in the Medicaid program, the state
child health plan, or another program under the authority of the
commission.
(b) An agreement under this section may not be entered into
until:
(1) the commission determines that entering into the
agreement would be feasible and cost-effective; and
(2) if appropriated money would be spent under the
proposed agreement, the governor and the Legislative Budget Board
grant prior approval to expend appropriated money under the
proposed agreement.
(c) If an agreement is entered into, the commission shall
adopt procedures applicable to an agreement and joint purchase
required by this section. The procedures must ensure that this
state receives:
(1) all prescription drugs and other medications
purchased with money provided by this state; and
(2) an equitable share of any price benefits resulting
from the joint bulk purchase.
(d) In determining the feasibility and cost-effectiveness
of entering into an agreement under this section, the commission
shall identify:
(1) the most cost-effective existing joint bulk
purchasing agreement; and
(2) any potential groups of states with which this
state could enter into a new cost-effective joint bulk purchasing
agreement.
(e) The executive commissioner shall adopt rules relating
to reimbursing providers that dispense drugs purchased under this
section. The rules must ensure that:
(1) beneficiaries of all state-funded and state and
federally funded programs under which drugs purchased pursuant to
this section are prescribed or dispensed have sufficient access to
pharmaceutical care;
(2) participating pharmacies are reimbursed; and
(3) all pharmacies that are located in and licensed by
this state are given the opportunity to participate in prescription
drug programs that distribute or dispense drugs purchased under
this section.
SECTION 7.03. Not later than January 15, 2006, the Health
and Human Services Commission shall determine the feasibility and
cost-effectiveness of entering into an agreement under Section
531.080, Government Code, as added by this article. If the
commission determines that such action is feasible and
cost-effective, the commission shall take action to enter into an
agreement that takes effect March 1, 2006.
SECTION 7.04. If before implementing any provision of this
article a state agency determines that a waiver or authorization
from a federal agency is necessary for implementation of that
provision, the agency affected by the provision shall request the
waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.
ARTICLE 8. QUALITY ASSURANCE FEES
SECTION 8.01. Chapter 242, Health and Safety Code, is
amended by adding Subchapter P to read as follows:
SUBCHAPTER P. QUALITY ASSURANCE FEE
Sec. 242.801. DEFINITIONS. In this subchapter:
(1) "Commission" means the Health and Human Services
Commission.
(2) "Department" means the Department of Aging and
Disability Services.
(3) "Executive commissioner" means the executive
commissioner of the Health and Human Services Commission.
(4) "Gross receipts" means money paid as compensation
for services provided to residents, including client
participation. The term does not include charitable contributions
to an institution.
Sec. 242.802. APPLICABILITY. This subchapter does not
apply to:
(1) a state-owned veterans' nursing facility; or
(2) an entity that provides on a single campus a
continuum of services, including independent living services,
licensed assisted living services, and licensed nursing facility
care services, and that:
(A) operates under a continuing care retirement
community certificate of authority issued by the Texas Department
of Insurance; or
(B) over a 12-month period, provides a greater
number of combined patient days of service to independent living
and assisted living residents, not including services provided to
persons in licensed nursing facility beds, than the patient days of
service provided to nursing facility residents.
Sec. 242.803. COMPUTING QUALITY ASSURANCE FEE. (a) A
quality assurance fee is imposed on each institution subject to
this subchapter for which a license fee must be paid under Section
242.034. The quality assurance fee payment:
(1) is an amount established under Subsection (b)
multiplied by the number of patient days as determined in
accordance with Section 242.804;
(2) is payable monthly; and
(3) is in addition to other fees imposed under this
chapter.
(b) The commission shall establish a quality assurance fee
for each patient day so that the fee does not produce annual
revenues greater than six percent of the total annual gross
receipts in this state. The fee is subject to adjustment as
necessary. The amount of the quality assurance fee may vary
according to the number of patient days provided by an institution
as necessary to obtain a waiver under federal regulations at 42
C.F.R. Section 433.68(e).
(c) The amount of the quality assurance fee must be
determined using patient days and gross receipts:
(1) reported to the commission or to the department at
the direction of the commission; and
(2) covering a period of at least six months.
(d) The quality assurance fee is an allowable cost for
reimbursement under the state Medicaid program.
(e) A nursing facility may not list the quality assurance
fee as a separate charge on a patient's or resident's billing
statement or otherwise directly or indirectly attempt to charge the
quality assurance fee to a patient or resident.
Sec. 242.804. PATIENT DAYS. For each calendar day, an
institution shall determine the number of patient days by adding
the following:
(1) the number of patients occupying an institution
bed immediately before midnight of that day plus the number of
patients admitted that day less the number of patients discharged
that day, except that a patient is included in the count under this
subdivision if:
(A) the patient is admitted and discharged on the
same day; or
(B) the patient is discharged that day because of
the patient's death; and
(2) the number of beds that are on hold that day and
that have been placed on hold for a period not to exceed three
consecutive calendar days during which a patient is:
(A) in the hospital; or
(B) on therapeutic home leave.
Sec. 242.805. REPORTING AND COLLECTION. (a) The
commission or the department as directed by the executive
commissioner shall collect the quality assurance fee.
(b) Each institution shall, not later than the 25th day
after the last day of a month:
(1) file with the commission a report stating the
total patient days for the month; and
(2) pay the quality assurance fee.
Sec. 242.806. RULES; ADMINISTRATIVE PENALTY. (a) The
executive commissioner shall adopt rules for the administration of
this subchapter, including rules related to the imposition and
collection of the quality assurance fee.
(b) The executive commissioner may adopt rules granting
exceptions from the quality assurance fee, including an exception
for units of service reimbursed through Medicare Part A, if the
commission obtains all waivers necessary under federal law,
including 42 C.F.R. Section 433.68(e).
(c) An administrative penalty assessed under this
subchapter in accordance with Section 242.066 may not exceed
one-half of the amount of the outstanding quality assurance fee or
$20,000, whichever is greater.
Sec. 242.807. NURSING HOME QUALITY ASSURANCE FEE ACCOUNT.
(a) The nursing home quality assurance fee account is a dedicated
account in the general revenue fund. Interest earned on money in
the account shall be credited to the account.
(b) The comptroller shall deposit money collected under
this subchapter to the credit of the account.
(c) Subject to legislative appropriation and this
subchapter, money in the account together with federal matching
money shall be used to support or maintain an increase in Medicaid
reimbursement for institutions.
Sec. 242.808. REIMBURSEMENT OF INSTITUTIONS. (a) Subject
to legislative appropriation, the commission may use money in the
nursing home quality assurance fee account, together with any
federal money available to match that money, to:
(1) offset allowable expenses under the state Medicaid
program; or
(2) increase reimbursement rates paid under the
Medicaid program to institutions.
(b) The commission shall devise the formula by which amounts
received under this subchapter increase the reimbursement rates
paid to institutions under the state Medicaid program.
Sec. 242.809. INVALIDITY; FEDERAL FUNDS. If any portion of
this subchapter is held invalid by a final order of a court that is
not subject to appeal, or if the commission determines that the
imposition of the fee and the expenditure as prescribed by this
subchapter of amounts collected will not entitle the state to
receive additional federal funds under the Medicaid program, the
commission shall stop collection of the quality assurance fee and,
not later than the 30th day after the date collection is stopped,
shall return to the institutions that paid the fees, in proportion
to the total amount paid by those institutions, any money deposited
to the credit of the nursing home quality assurance fee account but
not spent.
Sec. 242.810. REVISION IN CASE OF DISAPPROVAL. If the
Centers for Medicare and Medicaid Services disapproves the quality
assurance fee plan established under this subchapter, the
commission shall revise the associated state plan amendments and
waiver requests as necessary to comply with federal regulations
provided by 42 C.F.R. Section 433.68(e). The revisions must be
completed as soon as practicable after the date the commission
receives notice of the disapproval.
Sec. 242.811. AUTHORITY TO ACCOMPLISH PURPOSES OF
SUBCHAPTER. The executive commissioner by rule may adopt a
definition, a method of computation, or a rate that differs from
those expressly provided by or expressly authorized by this
subchapter to the extent the difference is necessary to accomplish
the purposes of this subchapter.
SECTION 8.02. Subchapter B, Chapter 531, Government Code,
is amended by adding Sections 531.078-531.081 to read as follows:
Sec. 531.078. QUALITY ASSURANCE FEES ON CERTAIN WAIVER
PROGRAM SERVICES. (a) In this section, "gross receipts" means
money received as compensation for services under a home and
community services waiver or a community living assistance and
support services waiver. The term does not include a charitable
contribution, revenues received for services or goods other than
waivers, or any money received from consumers or their families as
reimbursement for services or goods normally not covered by the
waivers.
(b) The executive commissioner by rule shall establish a
quality assurance fee program as provided by this section and
impose a quality assurance fee on persons providing services under
a home and community services waiver or a community living
assistance and support services waiver.
(c) The executive commissioner shall establish the fee at an
amount that will produce annual revenues of not more than six
percent of the gross receipts of a person from services the person
provides under the waiver.
(d) The executive commissioner shall adopt rules governing:
(1) the reporting required to compute and collect the
fee and the manner and times of collecting the fee; and
(2) the administration of the fee, including the
imposition of penalties for a violation of the rules.
(e) Fees collected under this section shall be deposited in
the waiver program quality assurance fee account.
Sec. 531.079. WAIVER PROGRAM QUALITY ASSURANCE FEE ACCOUNT.
(a) The waiver program quality assurance fee account is a dedicated
account in the general revenue fund. The account is exempt from the
application of Section 403.095. Interest earned on money in the
account shall be credited to the account.
(b) The account consists of fees collected under Section
531.078 and interest earned on money in the account.
(c) Subject to legislative appropriation and state and
federal law, money in the account may be appropriated only to the
commission to increase reimbursement rates paid under the home and
community services waiver program or the community living
assistance and support services waiver program or to offset
allowable expenses under the state Medicaid program.
Sec. 531.080. REIMBURSEMENT OF WAIVER PROGRAMS. Subject to
legislative appropriation and state and federal law, the commission
shall use money from the waiver program quality assurance fee
account, together with any federal money available to match money
from the account, to increase reimbursement rates paid under the
home and community services waiver program or the community living
assistance and support services waiver program.
Sec. 531.081. INVALIDITY; FEDERAL FUNDS. If any portion of
Sections 531.078-531.080 is held invalid by a final order of a court
that is not subject to appeal, or if the commission determines that
the imposition of the quality assurance fee and the expenditure of
the money collected as provided by those sections will not entitle
this state to receive additional federal money under the Medicaid
program, the commission shall:
(1) stop collection of the quality assurance fee; and
(2) not later than the 30th day after the date the
collection of the quality assurance fee is stopped, return any
money collected under Section 531.078, but not spent under Section
531.080, to the persons who paid the fees in proportion to the total
amount paid by those persons.
SECTION 8.03. Section 252.202(b), Health and Safety Code,
is amended to read as follows:
(b) The Health and Human Services Commission or the
department at the direction of the commission shall set the quality
assurance fee for each day in an [the] amount that will produce
[necessary to produce] annual revenues of [equal to an amount that
is] not more than six percent of the [facility's] total annual gross
receipts in this state. The fee is subject to a prospective
adjustment as necessary.
SECTION 8.04. Section 252.209, Health and Safety Code, is
repealed.
SECTION 8.05. (a) Notwithstanding Section 242.803, Health
and Safety Code, as added by this article, the executive
commissioner of the Health and Human Services Commission shall
establish the initial quality assurance fee imposed under
Subchapter P, Chapter 242, Health and Safety Code, as added by this
article, based on available revenue and patient day information.
The initial quality assurance fee established under this section
remains in effect until the Health and Human Services Commission
obtains the information necessary to set the fee under Section
242.803, Health and Safety Code, as added by this article.
(b) As soon as practicable after the effective date of this
Act, the executive commissioner of the Health and Human Services
Commission shall adopt rules as necessary to implement Subchapter
P, Chapter 242, Health and Safety Code, and Section 531.078,
Government Code, as added by this article.
(c) If before implementing any provision of this article a
state agency determines a waiver or authorization from a federal
agency is necessary for implementation of that provision, the
agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
ARTICLE 9. REDUCTION IN NUMBER OF LICENSE PLATES ISSUED
SECTION 9.01. Subchapter A, Chapter 502, Transportation
Code, is amended by adding Section 502.010 to read as follows:
Sec. 502.010. ISSUANCE AND DISPLAY OF LICENSE PLATE. (a)
Notwithstanding anything in this code to the contrary, including
Section 502.180, the department shall issue only one license plate
for attachment at the rear of the vehicle for which the plate is
issued.
(b) Notwithstanding anything in this code to the contrary,
including Section 502.404(a), a person is entitled to operate on a
public highway a vehicle that displays only one license plate if the
plate is attached at the rear of the vehicle. A person may operate
on a public highway a vehicle that displays two license plates if
both plates were assigned by the department for the registration
period as a set of plates.
(c) In any provision of this code that relates to the
issuance or display of "license plates," "plates," or a "set of
plates," the term means only one license plate.
SECTION 9.02. The change in law made by this article
regarding the issuance of license plates by the Texas Department of
Transportation applies only to the issuance of license plates by
the department for a registration period beginning on or after the
effective date of this article. For a registration period that
begins before the effective date of this article, the department
shall issue license plates as required by the law in effect
immediately before the effective date of this article, and the
former law is continued in effect for that purpose.
SECTION 9.03. This article takes effect November 1, 2005.
ARTICLE 10. TRANSPORTATION FEES AND FISCAL MATTERS
SECTION 10.01. Subchapter A, Chapter 222, Transportation
Code, is amended by adding Section 222.0021 to read as follows:
Sec. 222.0021. TRANSFERS TO GENERAL REVENUE FUND. Each
month, out of money in the state highway fund that is not dedicated
by the Texas Constitution, the comptroller shall transfer the
amount of $5,666,667 from the state highway fund to the general
revenue fund.
SECTION 10.02. Section 502.161(a), Transportation Code, is
amended to read as follows:
(a) The fee for a registration year for registration of a
passenger car, a municipal bus, or a private bus that weighs 6,000
pounds or less is:
(1) $43 [$40.50] for a vehicle the model year of which
is more than six years before the year in which the registration
year begins; or
(2) [$50.50 for a vehicle the model year of which is
more than three years but is six years or less before the year in
which the registration year begins; or
[(3)] $58.50 for a vehicle the model year of which is
six [three] years or less before the year in which the registration
year begins.
SECTION 10.03. Section 502.162(a), Transportation Code, is
amended to read as follows:
(a) The fee for a registration year for registration of a
commercial motor vehicle or truck-tractor that weighs 6,000 pounds
or less is $58.50. The fee for a registration year for registration
of all other commercial motor vehicles or truck-tractors is $25
plus an amount determined according to the vehicle's total gross
weight and tire equipment, as follows:Gross weight Fee for each 100 pounds or
in pounds fraction of 100 pounds
Equipped with Equipped with
pneumatic tires solid tires
and]
(6) if the application is for a nonresident commercial
driver's license and the applicant is a resident of a foreign
jurisdiction, a copy of:
(A) a social security card; or
(B) a passport issued to the applicant by the
country of which the applicant is a resident and a visa, each
containing an identification number and an expiration date; and
(7) any other information required by the department.
SECTION 10.06. Section 522.029, Transportation Code, is
amended by amending Subsection (a) and adding Subsection (j) to
read as follows:
(a) The fee for a commercial driver's license or commercial
driver learner's permit issued by the department is $60, except as
provided by Subsections (f), [and] (h), and (j).
(j) The fee for a nonresident commercial driver's license is
$100.
SECTION 10.07. Section 522.051, Transportation Code, is
amended by amending Subsection (a) and adding Subsection (f) to
read as follows:
(a) Except as provided by Subsection (f) and Section
522.033, an original commercial driver's license or commercial
driver learner's permit expires six years after the applicant's
next birthday.
(f) A nonresident commercial driver's license issued to an
applicant described by Section 522.021(a)(6)(B) who submitted a
copy of a visa expires on the date the person's visa expires.
ARTICLE 11. NONSETTLING MANUFACTURER FEES
SECTION 11.01. Chapter 161, Health and Safety Code, is
amended by adding Subchapter U to read as follows:
SUBCHAPTER U. FEE ON CIGARETTES AND CIGARETTE TOBACCO PRODUCTS
MANUFACTURED BY CERTAIN COMPANIES
Sec. 161.601. PURPOSE. The purpose of this subchapter is
to:
(1) prevent nonsettling manufacturers from
undermining this state's policy of discouraging underage smoking by
offering cigarettes and cigarette tobacco products at prices that
are substantially below the prices of cigarettes and cigarette
tobacco products of other manufacturers;
(2) protect the tobacco settlement agreement and
funding, which has been reduced because of the growth of sales of
nonsettling manufacturer cigarettes and cigarette tobacco
products, for programs that are funded wholly or partly by payments
to this state under the tobacco settlement agreement and recoup for
this state settlement payment revenue lost because of sales of
nonsettling manufacturer cigarettes and cigarette tobacco
products;
(3) provide funding to enforce and administer this
subchapter and any legislation relating to nonsettling
manufacturers; and
(4) provide funding for any other purpose the
legislature determines.
Sec. 161.602. DEFINITIONS. In this subchapter:
(1) "Brand family" means each style of cigarettes or
cigarette tobacco products sold under the same trademark and
differentiated from one another by means of additional modifiers,
including "menthol," "lights," "kings," and "100s." The term
includes any style of cigarettes or cigarette tobacco products that
have a brand name, trademark, logo, symbol, motto, selling message,
recognizable pattern of colors, or other indication of product
identification that is identical to, similar to, or identifiable
with a previously known brand of cigarettes or cigarette tobacco
products.
(2) "Cigarette" means any product that contains
nicotine and is intended to be burned or heated under ordinary
conditions of use. The term includes:
(A) a roll of tobacco wrapped in paper or another
substance that does not contain tobacco;
(B) tobacco, in any form, that is functional in a
product that, because of the product's appearance, the type of
tobacco used in the filler, or the product's packaging and
labeling, is likely to be offered to or purchased by a consumer as a
cigarette; or
(C) a roll of tobacco wrapped in any substance
containing tobacco that, because of the product's appearance, the
type of tobacco used in the filler, or the product's packaging and
labeling, is likely to be offered to or purchased by a consumer as a
cigarette.
(3) "Cigarette tobacco product" means roll-your-own
tobacco or tobacco that, because of the tobacco's appearance, type,
packaging, or labeling, is suitable for use in making cigarettes
and is likely to be offered to or purchased by a consumer for that
purpose.
(4) "Manufacturer" means a person that manufactures,
fabricates, or assembles cigarettes for sale or distribution. For
purposes of this subchapter, the term includes a person that is the
first importer into the United States of cigarettes and cigarette
tobacco products manufactured outside the United States.
(5) "Nonsettling manufacturer" means a manufacturer
of cigarettes that did not sign the tobacco settlement agreement.
(6) "Nonsettling manufacturer cigarettes" means
cigarettes manufactured, fabricated, assembled, or imported by a
nonsettling manufacturer.
(7) "Nonsettling manufacturer cigarette tobacco
products" means cigarette tobacco products manufactured,
fabricated, assembled, or imported by a nonsettling manufacturer.
(8) "Tobacco settlement agreement" means the
Agreement Regarding Disposition of Settlement Proceeds filed on
July 24, 1998, in the United States District Court, Eastern
District of Texas, in the case styled The State of Texas v. The
American Tobacco Co., et al., No. 5-96CV-91. The term includes the
subsequent Clarification of Agreement Regarding Disposition of
Settlement Proceeds filed on July 24, 1998, in that litigation.
Sec. 161.603. FEE IMPOSED. (a) A fee is imposed on the
sale, use, consumption, or distribution in this state of:
(1) nonsettling manufacturer cigarettes if a stamp is
required to be affixed to a package of those cigarettes under
Chapter 154, Tax Code;
(2) nonsettling manufacturer cigarettes that are
sold, purchased, or distributed in this state but that are not
required to have a stamp affixed to a package of those cigarettes
under Chapter 154, Tax Code; and
(3) nonsettling manufacturer cigarette tobacco
products that are subject to the tax imposed by Section 155.0211,
Tax Code.
(b) The fee imposed by this section does not apply to
cigarettes or cigarette tobacco products that are included in
computing payments due to be made by a settling manufacturer under
the tobacco settlement agreement.
(c) The fee imposed by this subchapter is in addition to any
other privilege, license, fee, or tax required or imposed by state
law.
(d) Except as otherwise provided by this subchapter, the fee
imposed by this subchapter is imposed, collected, paid,
administered, and enforced in the same manner, taking into account
that the fee is imposed on nonsettling manufacturers, as the taxes
imposed by Chapters 154 and 155, Tax Code, as appropriate.
Sec. 161.604. RATE OF FEE. (a) Except as provided by
Subsection (b), the fee is imposed at the rate of two cents for:
(1) each nonsettling manufacturer cigarette; and
(2) each 0.09 ounce of nonsettling manufacturer
cigarette tobacco product.
(b) On January 1 of each year, the comptroller shall
increase the rate of the tax prescribed by Subsection (a) by the
greater of:
(1) three percent; or
(2) the percentage increase in the most recent annual
revised Consumer Price Index for all Urban Consumers, as published
by the Federal Bureau of Labor Statistics of the United States
Department of Labor.
Sec. 161.605. DISTRIBUTOR'S REPORT. (a) A distributor
required to file a report under Section 154.210 or 155.111, Tax
Code, shall, in addition to the information required by those
sections, include in that required report, as appropriate:
(1) the number and denominations of stamps affixed to
individual packages of nonsettling manufacturer cigarettes during
the preceding month;
(2) the number of individual packages of nonsettling
manufacturer cigarettes sold or purchased in this state or
otherwise distributed in this state for sale in the United States;
and
(3) any other information the comptroller considers
necessary or appropriate to determine the amount of the fee imposed
by this subchapter or to enforce this subchapter.
(b) The information required by Subsections (a)(1) and (2)
must be itemized for each place of business and by manufacturer and
brand family.
(c) The requirement to report information under this
section shall be enforced in the same manner as the requirement to
deliver to or file with the comptroller a report required under
Section 154.210 or 155.111, Tax Code, as appropriate.
Sec. 161.606. NOTICE AND PAYMENT OF FEE. (a) Each month,
not later than the 10th day after the date the comptroller receives
the information required by Section 161.605, the comptroller shall:
(1) compute the amount of the fee imposed by this
subchapter that each nonsettling manufacturer owes for that
reporting period based on that information and any other
information available to the comptroller; and
(2) mail to each nonsettling manufacturer a notice of
the amount of fee the manufacturer owes.
(b) Not later than the 15th day of the month after the month
in which the comptroller mails a nonsettling manufacturer a notice
under Subsection (a), the nonsettling manufacturer shall send to
the comptroller the amount of the fee due according to the notice.
Sec. 161.607. CERTIFICATION TO ATTORNEY GENERAL. (a) Not
later than the first day of each month, a nonsettling manufacturer
who is required to pay the fee imposed by this subchapter shall
certify to the attorney general that the manufacturer is in
compliance with this subchapter and has paid in full the fee imposed
by this subchapter.
(b) The attorney general shall develop, maintain, and
publish on the attorney general's Internet website a directory
listing of all nonsettling manufacturers that have provided
current, accurate, and complete certifications.
(c) The attorney general shall provide the list described by
Subsection (b) to any person on request.
Sec. 161.608. PREPAYMENT BEFORE OFFERING NONSETTLING
MANUFACTURER CIGARETTES OR CIGARETTE TOBACCO PRODUCTS FOR SALE OR
DISTRIBUTION IN THIS STATE. (a) If cigarettes or cigarette tobacco
products of a nonsettling manufacturer are not offered for sale or
distribution in this state on September 1, 2005, the nonsettling
manufacturer may not offer those cigarettes or cigarette tobacco
products for sale or distribution in this state after that date
unless the manufacturer first prepays the fee imposed by this
subchapter for sales of cigarettes and cigarette tobacco products
that will occur in the first calendar month in which they are sold
or distributed in this state.
(b) The amount a nonsettling manufacturer is required to
prepay under this section is equal to the greater of:
(1) the rate prescribed by Section 161.604 in effect
on that date multiplied by:
(A) the number of cigarettes the comptroller
reasonably projects that the nonsettling manufacturer will sell or
distribute in this state during that calendar month; and
(B) each 0.09 ounce of nonsettling manufacturer
cigarette tobacco products the comptroller reasonably projects
that the nonsettling manufacturer will sell or distribute in this
state during that calendar month; or
(2) $50,000.
(c) The fee imposed by this section does not apply to
cigarettes or cigarette tobacco products that are included in
computing payments due to be made by a settling manufacturer under
the tobacco settlement agreement.
(d) The comptroller may require a nonsettling manufacturer
to provide any information reasonably necessary to determine the
prepayment amount.
(e) The comptroller shall establish procedures to:
(1) reimburse a nonsettling manufacturer if the actual
sales or distributions in the first calendar month are less than the
projected sales or distributions; and
(2) require additional payments if the actual sales or
distributions in the first calendar month are greater than the
projected sales or distributions.
(f) A nonsettling manufacturer shall pay the fee imposed by
this subchapter in the manner provided by Section 161.606 beginning
in the second calendar month in which the manufacturer offers the
cigarettes or cigarette tobacco products for sale or distribution
in this state.
Sec. 161.609. REPORT TO ATTORNEY GENERAL BEFORE OFFERING
NONSETTLING MANUFACTURER CIGARETTES OR CIGARETTE TOBACCO PRODUCTS
FOR SALE OR DISTRIBUTION IN THIS STATE. (a) In addition to
prepaying the fee required by Section 161.608, a nonsettling
manufacturer described by Section 161.608(a) shall, before the date
the cigarettes or cigarette tobacco products are offered for sale
or distribution in this state, provide to the attorney general on a
form prescribed by the attorney general:
(1) the nonsettling manufacturer's complete name,
address, and telephone number;
(2) the date that the nonsettling manufacturer will
begin offering cigarettes or cigarette tobacco products for sale or
distribution in this state;
(3) the names of the brand families of the cigarettes
or cigarette tobacco products that the nonsettling manufacturer
will offer for sale or distribution in this state;
(4) a statement that the nonsettling manufacturer
intends to comply with this subchapter; and
(5) the name, address, telephone number, and signature
of an officer of the nonsettling manufacturer attesting to all of
the included information.
(b) The attorney general shall make the information
provided under this section available to the comptroller.
Sec. 161.610. PENALTIES FOR NONCOMPLIANCE. (a) Cigarettes
and cigarette tobacco products of a nonsettling manufacturer that
has not complied with this subchapter, including full payment of
the fee imposed by this subchapter, shall be treated as cigarettes
for which the tax assessed by Chapter 154 or 155, Tax Code, as
appropriate, has not been paid, and the manufacturer is subject to
all penalties imposed by those chapters for violations of those
chapters.
(b) The comptroller shall provide to a nonsettling
manufacturer a notice of noncompliance with this subchapter if the
manufacturer:
(1) does not pay in full the fee imposed by this
subchapter; or
(2) is not included on the list described by Section
161.607(b).
(c) On receipt of the notice of noncompliance, the
nonsettling manufacturer may not:
(1) pay the tax imposed by Chapter 154 or 155, Tax
Code, as appropriate;
(2) affix to a package of cigarettes the stamp
required by Section 154.041, Tax Code; or
(3) otherwise purchase, sell, or distribute
cigarettes in this state.
Sec. 161.611. APPLICATION OF SUBCHAPTER. This subchapter
applies without regard to Section 154.022, Tax Code, or any other
law that might be read to create an exemption for interstate sales.
SECTION 11.02. (a) Not later than September 30, 2005, a
nonsettling manufacturer, as that term is defined by Section
161.602, Health and Safety Code, as added by this Act, that is
offering cigarettes or cigarette tobacco products for sale or
distribution in this state on September 1, 2005, shall provide to
the attorney general on a form prescribed by the attorney general:
(1) the nonsettling manufacturer's complete name,
address, and telephone number;
(2) the date that the nonsettling manufacturer began
offering cigarettes or cigarette tobacco products for sale or
distribution in this state;
(3) the names of the brand families of the cigarettes
or cigarette tobacco products that the nonsettling manufacturer
offers for sale or distribution in this state;
(4) a statement that the nonsettling manufacturer
intends to comply with Subchapter U, Chapter 161, Health and Safety
Code, as added by this Act; and
(5) the name, address, telephone number, and signature
of an officer of the nonsettling manufacturer attesting to all of
the included information.
(b) The attorney general shall make the information
provided under Subsection (a) of this section available to the
comptroller.
SECTION 11.03. Sections 11.01 and 11.02 take effect
September 1, 2005.
SECTION 11.04. If any provision of this article or its
application to any person or circumstance is held invalid, the
invalidity does not affect other provisions or applications of this
Act that can be given effect without the invalid provision or
application, and to this end the provisions of this article are
severable.
ARTICLE 12. SALE OF CIGARETTES AND TOBACCO PRODUCTS
SECTION 12.01. 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) For purposes of this section, a person attempts to
purchase cigarettes or tobacco products if the person commits an
act amounting to more than mere preparation that tends, but fails,
to effect the purchase.
(c) An offense under this section is a Class C misdemeanor.
SECTION 12.02. (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 with the words "cigarettes" or "tobacco
products" 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;
(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,
including a common carrier or commercial delivery service, 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).
(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 department shall
maintain a list of persons the department determines have violated
Section 161.653(a) or are violating or offering to violate that
subsection.
(b) The department 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
department shall provide updated copies of the list as the
department determines is appropriate.
(c) Before adding a person to the list maintained under
Subsection (a), the department 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 department and each person who receives a copy
of the list from the department 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 make any deliveries in this state on behalf of a person
identified in the list unless:
(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 161.155:
(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 knowingly 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, seek civil penalties and related 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.
(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 of
public accounts 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 Department of State
Health Services 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 September 1, 2005, except that
Sections 161.657-161.660, Health and Safety Code, as added by this
section, take effect September 1, 2006.
SECTION 12.03. (a) Article 59.01(2), Code of Criminal
Procedure, as amended by Section 2.141, Chapter 198, Section 17,
Chapter 257, and Section 3, Chapter 649, Acts of the 78th
Legislature, Regular Session, 2003, 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),
21.11, 38.04, Subchapter B of Chapter 43, or Chapter 29, 30, 31, 32,
33, 33A, or 35, Penal Code; or
(iii) any felony under The Securities Act
(Article 581-1 et seq., Vernon's Texas Civil Statutes);
(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; [or]
(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;
(viii) a Class A misdemeanor or state jail
felony under Subchapter U, Chapter 161, Health and Safety Code; or
(ix) [(vii)] a Class B misdemeanor under
Section 35.58, 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)(vii)] of this
subdivision, or a crime of violence; or
(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)(vii)]
of this subdivision, or a crime of violence.
(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.
ARTICLE 13. POWERS AND DUTIES OF COMPTROLLER AND PROVISIONS
RELATED TO TAXES COLLECTED BY THE COMPTROLLER OR LOCAL ENTITIES
SECTION 13.01. 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.
SECTION 13.02. Section 552.025(c), Government Code, is
amended to read as follows:
(c) Subchapter C does not authorize withholding from the
public or limiting the availability to the public of a written
determination letter, technical advice memorandum, or ruling that
concerns a tax matter and that is issued by a governmental body with
taxing authority, provided that, to preserve taxpayer
confidentiality, a governmental body with taxing authority shall
remove any information that identifies a taxpayer from the letter,
memorandum, or ruling.
SECTION 13.03. 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.
SECTION 13.04. 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.
SECTION 13.05. 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.
SECTION 13.06. 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.
SECTION 13.07. 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.
SECTION 13.08. 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.
SECTION 13.09. 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.
SECTION 13.10. 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.
SECTION 13.11. Section 1502.053, Insurance Code, is amended
to read as follows:
Sec. 1502.053. EXEMPTION FROM CERTAIN TAXES. (a) The
issuer of a [A] children's health benefit plan approved under
Section 1502.051 [issuer] 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.
SECTION 13.12. 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.
SECTION 13.13. 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.
SECTION 13.131. 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 Part 121 or 135 authority of the U.S.
Department of Transportation or Federal Aviation Administration.
SECTION 13.14. Section 111.009, Tax Code, is amended by
amending Subsection (a) and adding Subsections (e) and (f) to read
as follows:
(a) A person having a direct interest in a determination may
petition the comptroller for a redetermination and may assert legal
and factual grounds to challenge the assessment.
(e) The person filing the petition may assert credits or
claim a refund for the same tax type and same period. The assertion
for the credits or the claim for the refund must be included in the
petition or must be filed within the applicable limitations period,
except as otherwise provided by this section. The comptroller
shall adopt procedural rules that ensure that redetermination
proceedings are expeditiously finalized and that provide that all
parties receive equal time to prepare and submit their positions
before the hearing.
(f) A credit or refund for the same tax type and same period
may be asserted or claimed in the redetermination proceeding for
all issues if the credit is asserted or the refund is claimed not
later than the first anniversary of the date the petition for
redetermination is filed. This subsection does not authorize a
filing for a separate credit or refund that is not authorized under
Section 111.107(b).
SECTION 13.15. Section 111.016, Tax Code, is amended by
adding Subsections (e) and (f) to read as follows:
(e) The comptroller may assess the responsible individual
liable under Subsection (b) at any time before the first
anniversary of the later of:
(1) the date the tax liability of the corporation,
association, limited liability company, limited partnership, or
other legal entity becomes final; or
(2) the date the bankruptcy proceeding is closed or
dismissed.
(f) An individual that the comptroller asserts is liable for
the payment of tax or other money under this section as a
responsible individual is entitled to:
(1) reasonable notice from the comptroller that
specifies the basis for that assertion and the amount of tax or
money for which the comptroller asserts the individual is liable;
and
(2) contest that assertion in a manner consistent with
the remedies available to taxpayers under this title.
SECTION 13.16. 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.
SECTION 13.17. 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).
SECTION 13.18. 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.
SECTION 13.19. Section 151.006, Tax Code, is amended to
read as follows:
Sec. 151.006. "SALE FOR RESALE". "Sale for resale" means a
sale of:
(1) tangible personal property or a taxable service to
a purchaser who acquires the property or service for the purpose of
reselling it in the United States of America or a possession or
territory of the United States of America or in the United Mexican
States in the normal course of business in the form or condition in
which it is acquired or as an attachment to or integral part of
other tangible personal property or taxable service;
(2) tangible personal property to a purchaser for the
sole purpose of the purchaser's leasing or renting it in the United
States of America or a possession or territory of the United States
of America or in the United Mexican States in the normal course of
business to another person, but not if incidental to the leasing or
renting of real estate;
(3) tangible personal property to a purchaser who
acquires the property for the purpose of transferring it in the
United States of America or a possession or territory of the United
States of America or in the United Mexican States as an integral
part of a taxable service; or
(4) a taxable service performed on tangible personal
property that is held for sale by the purchaser of the taxable
service.
SECTION 13.20. Section 151.011(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Subsection (c) [of this section],
"use" means the exercise of a right or power incidental to the
ownership of tangible personal property over tangible personal
property, including tangible personal property 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.
SECTION 13.21. 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.
SECTION 13.22. 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.
SECTION 13.23. Section 151.419(b), Tax Code, is amended to
read as follows:
(b) The application must be accompanied with:
(1) an agreement that is signed by the applicant or a
responsible officer of an applicant corporation, that is in a form
prescribed by the comptroller, and that provides that the applicant
agrees to:
(A) accrue and pay all taxes imposed by
Subchapter D [of this chapter] on the storage and use of all taxable
items sold to or leased or rented by the permit holder unless the
items are exempted from the taxes imposed by this chapter; and
(B) pay the imposed taxes monthly on or before
the 20th day of the month following the end of each calendar month;
[and
[(C) waive the discount permitted by Section
151.423 of this code on the payment of all taxes under the direct
payment permit only;]
(2) a description, in the amount of detail that the
comptroller requires, of the accounting method by which the
applicant proposes to differentiate between taxable and exempt
transactions; and
(3) records establishing that the applicant is a
responsible person who annually purchases taxable items that have a
value when purchased of $800,000 or more excluding the value of
taxable items for which resale certificates were or could have been
given.
SECTION 13.24. Sections 151.424(a) and (c), Tax Code, are
amended to read as follows:
(a) A taxpayer who prepays the taxpayer's tax liability on
the basis of a reasonable estimate of the tax liability for a
quarter in which a prepayment is made or for a month in which a
prepayment is made may deduct and withhold 1.25 percent of the
amount of the prepayment [in addition to the amount permitted to be
deducted and withheld under Section 151.423 of this code]. A
reasonable estimate of the tax liability must be at least 90 percent
of the tax ultimately due or the amount of tax paid in the same
quarter, or month, if a monthly prepayer, in the last preceding
year. Failure to prepay a reasonable estimate of the tax will
result in the loss of the entire prepayment discount.
(c) A taxpayer who prepays the tax liability as permitted by
this section must file a report when due as provided by this
chapter. The amount of a prepayment made by a taxpayer under this
section shall be credited against the amount of actual tax
liability of the taxpayer as shown on the tax report of the
taxpayer. If there is a tax liability owed by the taxpayer in
excess of the prepayment credit, the taxpayer shall send to the
comptroller the remaining tax liability at the time of filing the
quarterly or monthly report. [The taxpayer is entitled to the
deduction permitted under Section 151.423 of this code on the
amount of the remaining tax liability.]
SECTION 13.25. Section 151.425, Tax Code, is amended to
read as follows:
Sec. 151.425. FORFEITURE OF DISCOUNT OR REIMBURSEMENT. If
a taxpayer fails to file a report required by this chapter when due
or to pay the tax when due, the taxpayer forfeits any claim to a
[deduction or] discount allowed under [Section 151.423 or] Section
151.424 [of this code].
SECTION 13.26. Section 151.428(c), Tax Code, is amended to
read as follows:
(c) The reporting, collection, refund, and penalty
provisions of this chapter and Subtitle B [of this title] apply to
the payments required by this section, except that Section
[Sections 151.423 and] 151.424 does [of this code do] not apply to
this section.
SECTION 13.27. Section 152.047(a), Tax Code, is amended to
read as follows:
(a) Except as inconsistent with this chapter and rules
adopted under this chapter, the seller of a motor vehicle shall
report and pay the tax imposed on a seller-financed sale to the
comptroller on the seller's receipts from seller-financed sales in
the same manner as the sales tax is reported and paid by a retailer
under Sections 151.401, 151.402, 151.405, 151.406, 151.409,
[151.423,] 151.424, and 151.425.
SECTION 13.28. Section 152.123(b), Tax Code, is amended to
read as follows:
(b) The county shall retain the following percentage of the
amounts calculated under Subsection (a) during each of the
following fiscal years:
(1) [in fiscal year 2006, 10 percent;
[(2) in fiscal year 2007, 20 percent;
[(3)] in fiscal year 2008, 30 percent;
(2) [(4)] in fiscal year 2009, 40 percent;
(3) [(5)] in fiscal year 2010, 50 percent;
(4) [(6)] in fiscal year 2011, 60 percent;
(5) [(7)] in fiscal year 2012, 70 percent;
(6) [(8)] in fiscal year 2013, 80 percent;
(7) [(9)] in fiscal year 2014, 90 percent; and
(8) [(10)] in fiscal year 2015 and succeeding years,
100 percent.
SECTION 13.29. Section 162.227, Tax Code, is amended by
adding Subsections (c-1), (c-2), and (d-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.
(c-2) A person who does not hold a license under this
subchapter may file a refund claim with the comptroller if the
person paid tax on kerosene and used or consumed the kerosene in
this state in manufacturing or as a component part of a product that
is not a motor fuel.
(d-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 by auxiliary power units or power take-off
equipment on any motor vehicle. If the quantity of that diesel
fuel can be accurately measured while the motor vehicle is
stationary by any metering or other measuring device or method
designed to measure the fuel separately from fuel used to propel the
motor vehicle, the comptroller may approve and adopt the use of the
device as a basis for determining the quantity of diesel fuel
consumed in those operations for a tax credit or tax refund. If
there is no separate metering device or other approved measuring
method, the license holder may take the credit and the person who
does not hold a license may claim the refund on a percentage of the
diesel fuel consumed by each motor vehicle equipped with an
auxiliary power unit or power take-off equipment. The comptroller
shall determine the percentage of the credit or refund. The
climate-control air conditioning or heating system of a motor
vehicle that has a primary purpose of providing for the convenience
or comfort of the operator or passengers is not a power take-off
system, and a credit or refund may not be allowed for the tax paid on
any portion of the diesel fuel that is used for that purpose. A
credit or refund may not be allowed for the diesel fuel tax paid on
that portion of the diesel fuel that is used for idling.
SECTION 13.30. Section 171.109(g), Tax Code, as amended by
Chapters 801 and 1198, Acts of the 71st Legislature, Regular
Session, 1989, is reenacted and amended to read as follows:
(g) All oil and gas exploration and production activities by
a corporation which is required to or elects to use generally
accepted accounting principles to compute surplus must be reported
according to the successful efforts or the full cost method of
accounting. Notwithstanding the method of accounting, the
corporation may elect to depreciate the corporation's oil and gas
properties using any alternative method of depreciation recognized
under generally accepted accounting principles. The useful lives
of intangible assets shall be similar to the useful lives of
tangible assets.
SECTION 13.31. 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.
SECTION 13.32. 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].
SECTION 13.33. 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."
SECTION 13.34. 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].
SECTION 13.35. Section 201.058(b), Tax Code, is amended to
read as follows:
(b) Operators increasing production by marketing gas from a
well [an oil well or lease] that has been released into the air for
six [12] months or more pursuant to the rules of the Railroad
Commission of Texas [commission] shall be entitled to an exemption
from the tax imposed by this chapter on the production resulting
from the marketing of such gas for the life of the well [or lease].
SECTION 13.36. Section 201.102, Tax Code, is amended to
read as follows:
Sec. 201.102. CASH SALES. If gas is sold for cash only, the
tax shall be computed on the producer's gross cash receipts.
Payments from a purchaser of gas to a producer for the purpose of
reimbursing the producer for taxes due under this chapter are not
part of the gross cash receipts [unless the reimbursement amount
for taxes due under this chapter is separately stated in the sales
contract].
SECTION 13.37. Subchapter B, Chapter 202, Tax Code, is
amended by adding Section 202.060 to read as follows:
Sec. 202.060. TAX CREDIT FOR ENHANCED EFFICIENCY EQUIPMENT.
(a) In this section, "enhanced efficiency equipment" means
equipment used in the production of oil that reduces the energy used
to produce a barrel of fluid by 10 percent or more when compared to
commonly available alternative equipment. The term does not
include a motor or downhole pump. Equipment does not qualify as
enhanced efficiency equipment unless an institution of higher
education approved by the comptroller that is located in this state
and that has an accredited petroleum engineering program evaluated
the equipment and determined that the equipment does produce the
required energy reduction.
(b) The taxpayer responsible for the payment of severance
taxes on the production from a well in this state on which enhanced
efficiency equipment is installed and used is entitled to a credit
in an amount equal to 20 percent of the cost of the equipment,
provided that:
(1) the cumulative total of all severance tax credits
authorized by this section may not exceed $2,000 for any well;
(2) the enhanced efficiency equipment installed in a
qualifying well must have been purchased and installed not earlier
than September 1, 2005, or later than September 1, 2009;
(3) the taxpayer must file an application with the
comptroller for the credit and must demonstrate to the comptroller
that the enhanced efficiency equipment has been purchased and
installed in the well within the period prescribed by Subdivision
(2);
(4) the number of applications the comptroller may
approve each state fiscal year may not exceed a number equal to two
percent of the producing wells in this state on September 1 of that
state fiscal year, as determined by the comptroller; and
(5) the manufacturer of the enhanced efficiency
equipment must obtain an evaluation of the product under Subsection
(a).
(c) The taxpayer may carry any unused credit forward until
the credit is used.
SECTION 13.38. 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.
SECTION 13.39. 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.
SECTION 13.40. 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.
SECTION 13.41. 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.
SECTION 13.42. 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).
SECTION 13.43. 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.
SECTION 13.44. 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.
SECTION 13.45. Section 502.1025(b), Transportation Code,
is amended to read as follows:
(b) A county tax assessor-collector shall retain under
Section 502.102(b) fees based on the following percentage of the
amounts calculated under Subsection [subsection] (a) during each of
the following fiscal years:
(1) in fiscal year 2006, 100 [90] percent;
(2) in fiscal year 2007, 100 [80] percent;
(3) in fiscal year 2008, 70 percent;
(4) in fiscal year 2009, 60 percent;
(5) in fiscal year 2010, 50 percent;
(6) in fiscal year 2011, 40 percent;
(7) in fiscal year 2012, 30 percent;
(8) in fiscal year 2013, 20 percent;
(9) in fiscal year 2014, 10 percent; and
(10) in fiscal year 2015 and succeeding years, 0
percent.
SECTION 13.46. The heading to Subchapter A, Chapter 16,
Utilities Code, is amended to read as follows:
SUBCHAPTER A. ASSESSMENT ON UTILITY GROSS RECEIPTS [PUBLIC
UTILITIES]
SECTION 13.47. The heading to Section 16.001, Utilities
Code, is amended to read as follows:
Sec. 16.001. ASSESSMENT ON UTILITY GROSS RECEIPTS [PUBLIC
UTILITIES].
SECTION 13.48. 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.
SECTION 13.49. 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.
SECTION 13.50. The following sections of the Tax Code are
repealed:
(1) Section 151.103(d);
(2) Section 151.202(c);
(3) Section 151.423;
(4) Section 321.203(l), Tax Code, as added by Chapter
1310, Acts of the 78th Legislature, Regular Session, 2003; and
(5) Section 323.203(l).
SECTION 13.51. The changes in law made by this article to
Section 201.102, Tax Code, apply to a refund claim or determination
under Chapter 111, Tax Code, made in relation to a tax that is due on
or after the effective date of this article. A refund claim or
determination that is made in relation to a tax that is due before
the effective date of this article is governed by the law in effect
on the date the tax is due, and that law is continued in effect for
that purpose.
SECTION 13.52. The changes in law made by this article to
Section 111.009, Tax Code, apply only to a petition for
redetermination filed on or after the effective date of this
article.
SECTION 13.53. The changes in law made by this article to
Section 151.006, Tax Code, do not affect any matter that is the
subject of litigation pending on the effective date of this
article.
SECTION 13.54. The change in law made to Section
171.109(g), Tax Code, by this article is a clarification of
existing law and does not imply that existing law may be construed
as inconsistent with the law as amended by this article.
SECTION 13.55. If a change in law made to Section 16.001 or
16.002, Utilities Code, by this article conflicts with another bill
enacted by the 79th Legislature, Regular Session, 2005, that amends
Section 16.001 or 16.002, including H.B. No. 1779, that other bill
controls.
SECTION 13.56. This article takes effect October 1, 2005.
ARTICLE 14. INTEREST ON CERTAIN TAX REFUNDS
SECTION 14.01. Section 111.064, Tax Code, is amended by
amending Subsections (a), (c), and (f) and adding Subsection (c–1)
to read as follows:
(a) Except as otherwise provided by this section
[Subsections (b) and (c)], in a comptroller's final decision on a
claim for refund or in an audit, interest is at the rate set in
Section 111.060 on the amount found to be erroneously paid for a
period:
(1) beginning on the latest [later] of:
(A) 60 days after the date of payment;
(B) [or] the due date of the tax report; or
(C) the date the claim for the refund is filed;
and
(2) ending on, as determined by the comptroller,
either the date of allowance of credit on account of the
comptroller's final decision or audit or a date not more than 10
days before the date of the refund warrant.
(c) For a refund claimed before September 1, 2005, and
granted for a report period due on or after January 1, 2000, the
rate of interest is the rate set in Section 111.060. For a refund
claimed on or after September 1, 2005, and granted for a report
period due on or after January 1, 2000, the rate of interest is the
lesser of:
(1) the average rate of interest earned on deposits in
the state treasury during the period for which interest is paid on
the refund, as determined by the comptroller; or
(2) the rate set in Section 111.060.
(c-1) A refund, without regard to the date claimed, for a
report period due before January 1, 2000, does not accrue interest.
(f) A local revenue fund is not subject to Subsections
(a)-(c-1) [(a)-(c)]. In this subsection, "local revenue fund"
includes a court cost, a fee, a fine, or a similar charge collected
by a municipality, a county, or a court of this state and remitted
to the comptroller.
SECTION 14.02. This article takes effect September 1, 2005.
ARTICLE 15. LOCAL GASOLINE TAX
SECTION 15.01. Chapter 370, Transportation Code, is amended
by adding Subchapter I to read as follows:
SUBCHAPTER I. FINANCIAL PARTICIPATION OF CERTAIN COUNTIES IMPOSING
LOCAL GASOLINE TAX
Sec. 370.351. DEFINITIONS. In this subchapter:
(1) "Dealer" has the meaning assigned by Section
162.001, Tax Code.
(2) "Gasoline" has the meaning assigned by Section
162.001, Tax Code.
(3) "Jobber" means a person who:
(A) purchases tax-paid gasoline from a person who
holds a license under Chapter 162, Tax Code; and
(B) makes a sale with the tax included to a person
who maintains storage facilities for gasoline and uses all or part
of the stored gasoline to operate a motor vehicle.
(4) "Motor vehicle" has the meaning assigned by
Section 162.001, Tax Code.
(5) "Net gallon" has the meaning assigned by Section
162.001, Tax Code.
(6) "Public highway" has the meaning assigned by
Section 162.001, Tax Code.
(7) "Sale" has the meaning assigned by Section
162.001, Tax Code.
Sec. 370.352. TAX ON SALE OF GASOLINE AUTHORIZED. (a) A
county, by order of the commissioners court, may impose a tax on the
sale of gasoline sold in the county to propel a motor vehicle on the
public highways of this state if:
(1) the county is included in an authority or is
adjacent to such a county, provided that a county not included in
the authority must be located in the same metropolitan planning
organization as the county in the authority to which it is adjacent;
(2) the county is located in the boundaries of a
metropolitan planning area that is served by a metropolitan
planning organization; and
(3) imposition of the tax is approved at an election
called for that purpose and held in each county located in that
metropolitan planning area.
(a-1) This subchapter, including Subsection (a), does not
apply to a county with a population of more than two million.
(b) The counties located in a metropolitan planning area
described by Subsection (a)(2) may hold the election to authorize
the imposition of the tax on the same uniform election dates or on
different uniform election dates. If the counties hold the
elections on different uniform election dates, a county included in
that metropolitan planning area may not impose the tax until the
imposition of the tax has been approved in each county.
Sec. 370.353. RATE OF TAX. (a) The tax authorized by this
subchapter may be imposed in increments of one cent for each net
gallon of gasoline sold in the county to propel a motor vehicle on
the public highways of this state, with a minimum rate of three
cents for each net gallon and a maximum rate of 10 cents for each net
gallon.
(b) If the voters of the counties located in a metropolitan
planning area described by Section 370.352(a)(3) authorize the
imposition of the tax at different rates, each county shall impose
the tax at the lowest authorized rate.
Sec. 370.354. ADOPTION ELECTION PROCEDURE. (a) An
election to adopt the tax authorized by this subchapter is called by
an order of the commissioners court.
(b) At an election to adopt the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
adoption of a local tax on the sale of gasoline in (insert name of
county) at the maximum rate of (insert proposed rate) cents per
gallon."
Sec. 370.355. COMPUTATION OF TAX. (a) A person, including
a dealer or jobber, who makes a sale of gasoline in a county
authorized to impose the tax to a person who uses the gasoline to
propel a motor vehicle on the public highways of this state shall
collect the tax authorized by this subchapter for the benefit of the
county.
(b) The seller shall add the amount of the tax authorized by
this subchapter to the selling price of gasoline, and the tax is a
part of the gasoline price, is a debt owed to the seller, and is
recoverable at law in the same manner as the gasoline fuel charge.
(c) The tax authorized by this subchapter is in addition to
the tax imposed by Chapter 162, Tax Code.
Sec. 370.356. EXEMPTIONS APPLICABLE. The exemptions
provided by Section 162.104, Tax Code, apply to the tax authorized
by this subchapter.
Sec. 370.357. EFFECTIVE DATE OF TAX. After the imposition
of the tax has been approved in each county located in a
metropolitan planning area described by Section 370.352(a)(2), the
commissioners court of each county shall issue a concurrent order
prescribing the date on which the adoption of the tax will take
effect in those counties.
Sec. 370.358. COLLECTION AND ENFORCEMENT OF TAX. (a) A
person, including a dealer or jobber, required to collect the tax
authorized by this subchapter shall report and send the taxes to the
county as provided by the county.
(b) The county may prescribe monetary penalties, including
interest charges, for failure to keep records required by this
subchapter, to report when required, or to pay the tax when due.
(c) The county may permit a person who is required to
collect the tax authorized by this subchapter to retain a
percentage of the amount collected and required to be reported as
reimbursement to the person for the costs of collecting the tax.
The county may provide that the person may retain the amount only if
the person pays the tax and files reports as required by the county.
(d) The county attorney may bring suit against a person who
violates this subchapter.
Sec. 370.359. REFUND. (a) A person who has paid the tax
authorized by this subchapter on gasoline used by the person for a
purpose other than to propel a motor vehicle on the public highways
of this state or for a use exempted under Section 370.356 may file a
claim for a refund.
(b) The county shall prescribe the procedures a person must
use to obtain a refund under this section.
Sec. 370.360. REQUIRED PERMIT. The county may require a
dealer, jobber, or other person required to collect, report, and
pay the tax authorized by this subchapter to obtain a permit from
the county.
Sec. 370.361. TRANSFER TO AUTHORITY. (a) Not later than
the last day of the first month following each calendar quarter, the
county treasurer shall send to the authority the taxes collected
during that calendar quarter after payment of all refunds allowed
by law and expenses of collection.
(b) Net tax revenue received by an authority under this
subchapter shall be accounted for separately and may not be
commingled with other authority revenue.
Sec. 370.362. USE OF TAX PROCEEDS. An authority must use
net tax revenue received under this subchapter only to:
(1) reduce the number of lane miles included in a
proposed transportation project or a part or section of a proposed
transportation project for which the authority intends to impose a
toll for use according to the authority's most recently adopted
toll plan;
(2) reduce the amount of the toll charged for use of a
transportation project or a part or section of a transportation
project in use at the time the tax is imposed under this subchapter;
and
(3) waive the toll charged for use of a transportation
project or for a part or section of a transportation project by one
or more classes of vehicles prescribed by the authority, such as
public school buses and mass transit vehicles.
ARTICLE 16. AUDITS OF STATE AGENCY EXPENDITURES TO RECOVER
OVERPAYMENTS AND LOST DISCOUNTS
SECTION 16.01. Subtitle C, Title 10, Government Code, is
amended by adding Chapter 2115 to read as follows:
CHAPTER 2115. RECOVERY OF CERTAIN STATE AGENCY OVERPAYMENTS
Sec. 2115.001. DEFINITIONS. In this chapter:
(1) "Overpayment" includes a duplicate payment made to
a vendor for a single invoice and a payment made to a vendor:
(A) when an available discount from the vendor
was not applied;
(B) for a late payment penalty that was
improperly applied by the vendor;
(C) for shipping costs that were computed
incorrectly or incorrectly included in an invoice;
(D) for state sales tax; or
(E) for a good or service the vendor did not
provide.
(2) "State agency" means a department, commission,
board, office, or other agency, including a university system or an
institution of higher education other than a public junior college,
that:
(A) is in the executive branch of state
government;
(B) is created by statute; and
(C) does not have statutory geographical
boundaries limited to a part of the state.
Sec. 2115.002. CONTRACT CONSULTANTS FOR RECOVERY AUDITS FOR
CERTAIN OVERPAYMENTS. (a) The comptroller shall contract with one
or more consultants to conduct recovery audits of payments made by
state agencies to vendors. The audits must be designed to detect
and recover overpayments to the vendors and to recommend improved
state agency accounting operations.
(b) A contract under this section:
(1) may provide for reasonable compensation for
services provided under the contract, including compensation
determined by the application of a specified percentage of the
total amount recovered because of the consultant's audit activities
or recommendations as a fee for services;
(2) may permit or require the consultant to pursue a
judicial action in a court inside or outside this state to recover
an overpaid amount; and
(3) to allow time for the performance of existing
state payment auditing procedures, may not allow a recovery audit
of a payment during the 180-day period after the date the payment
was made.
(c) The comptroller or a state agency whose payments are
being audited may provide a person acting under a contract
authorized by this section with any confidential information in the
custody of the comptroller or state agency that is necessary for the
performance of the audit or the recovery of an overpayment, to the
extent the comptroller and state agency are not prohibited from
sharing the information under an agreement with another state or
the federal government. A person acting under a contract
authorized by this section, and each employee or agent of the
person, is subject to all prohibitions against the disclosure of
confidential information obtained from the state in connection with
the contract that apply to the comptroller or applicable state
agency or an employee of the comptroller or applicable state
agency. A person acting under a contract authorized by this section
or an employee or agent of the person who discloses confidential
information in violation of a prohibition made applicable to the
person under this subsection is subject to the same sanctions and
penalties that would apply to the comptroller or applicable state
agency or an employee of the comptroller or applicable state agency
for that disclosure.
Sec. 2115.003. STATE AGENCIES SUBJECT TO MANDATORY RECOVERY
AUDITS. (a) The comptroller shall require that recovery audits be
performed on the payments to vendors made by each state agency that
has total expenditures during a state fiscal biennium in an amount
that exceeds $100 million. Each state agency described by this
subsection shall provide the recovery audit consultant with all
information necessary for the audit.
(b) The comptroller may exempt from the mandatory recovery
audit process a state agency that has a low proportion of its
expenditures made to vendors, according to criteria the comptroller
adopts by rule after consideration of the likely costs and benefits
of performing recovery audits for agencies that make relatively few
or small payments to vendors.
Sec. 2115.004. PAYMENT TO CONTRACTORS. (a) A state agency
shall pay, from recovered money appropriated for the purpose, the
recovery audit consultant responsible for obtaining for the agency
a reimbursement from a vendor.
(b) A state agency shall expend or return to the federal
government any federal money that is recovered through a recovery
audit conducted under this chapter. The state agency shall expend
or return the federal money in accordance with the rules of the
federal program through which the agency received the federal
money.
Sec. 2115.005. FORWARDING REPORTS. (a) The comptroller
shall provide copies, including electronic form copies, of any
reports received from a consultant contracting under Section
2115.002 to:
(1) the governor;
(2) the state auditor's office; and
(3) the Legislative Budget Board.
(b) The comptroller shall provide the copies required by
Subsection (a) not later than the seventh day after the date the
comptroller receives the consultant's report.
(c) Not later than January 1 of each odd-numbered year, the
comptroller shall issue a report to the legislature summarizing the
contents of all reports received under this chapter during the
state fiscal biennium ending August 31 of the previous year.
SECTION 16.02. The comptroller shall adopt rules under
Chapter 2115, Government Code, as added by this article, in a timely
manner so that the comptroller may begin contracting with a
consultant under that chapter not later than January 1, 2006.
ARTICLE 17. MARKETING AND SALE OF CERTAIN LICENSE PLATES
SECTION 17.01. Section 504.851, Transportation Code, is
amended by amending Subsections (a), (b), (c), (e), (f), (g), and
(h) and adding Subsections (g-1) and (k) to read as follows:
(a) The [commission may authorize the] department shall
[to] enter into a contract with the private vendor whose proposal is
most advantageous to the state, as determined from competitive
sealed proposals that satisfy the requirements of this section, for
the marketing and sale of:
(1) personalized [prestige] license plates authorized
by Section 504.101; or
(2) with the agreement of the private vendor, other
specialty [specialized] license plates authorized by this
subchapter.
(b) Instead of the fees established by Section 504.101(c),
[if the commission authorizes the department to contract with a
private vendor under Subsection (a)(1) for the marketing and sale
of personalized prestige license plates,] the commission by rule
shall establish fees for the issuance or renewal of personalized
[prestige] license plates that are marketed and sold by the private
vendor. Fees must be reasonable and not less than the greater of:
(1) the amounts necessary to allow the department to
recover all reasonable costs to the department associated with the
evaluation of the competitive sealed proposals received by the
department and with the implementation and enforcement of the
contract, including direct, indirect, and administrative costs; or
(2) the amount established by Section 504.101(c).
(c) The [If the commission authorizes the department to
contract with a private vendor under Subsection (a)(2) for the
marketing and sale of other specialized license plates authorized
by this subchapter, including specialized license plates that may
be personalized, the] commission by rule shall establish the fees
for the issuance or renewal of souvenir license plates, specialty
[specialized] license plates, or souvenir or specialty license
plates that are personalized that are marketed and sold by the
private vendor. Fees must be reasonable and not less than the
amounts necessary to allow the department to recover all reasonable
costs to the department associated with the evaluation of the
competitive sealed proposals received by the department and with
the implementation and enforcement of the contract, including
direct, indirect, and administrative costs. A fee established
under this subsection is in addition to:
(1) the registration fee and any optional registration
fee prescribed by this chapter for the vehicle for which specialty
[the specialized] license plates are issued;
(2) any additional fee prescribed by this subchapter
for the issuance of specialty [the specialized] license plates for
that vehicle; and
(3) any additional fee prescribed by this subchapter
for the issuance of personalized license plates for that vehicle.
(e) The portion of a [A] contract with a private vendor
regarding the marketing and sale of personalized license plates
[under Subsection (a)(1)] is payable only from amounts derived from
the collection of the fee established under Subsection (b). The
portion of a [A] contract with a private vendor regarding the
marketing and sale of souvenir license plates, specialty license
plates, or souvenir or specialty license plates that are
personalized under Section 504.102 [under Subsection (a)(2)] is
payable only from amounts derived from the collection of the fee
established under Subsection (c).
(f) The department may approve [create] new design and color
combinations for personalized [prestige] license plates that are
marketed and [or] sold by a private vendor under a contract entered
into with the private vendor [under Subsection (a)(1)]. Each
approved license plate design and color combination remains the
property of the department.
(g) The department may approve [create] new design and color
combinations for specialty [specialized] license plates authorized
by this chapter, including specialty [specialized] license plates
that may be personalized, that are marketed and [or] sold by a
private vendor under a contract entered into with the private
vendor [under Subsection (a)(2)]. Each approved license plate
design and color combination remains the property of the
department. Except as otherwise provided by this chapter, this
[This] subsection does not authorize:
(1) the department to approve a design or color
combination for a specialty [specialized] license plate that is
inconsistent with the design or color combination specified for the
license plate by the section of this chapter [subchapter] that
authorizes the issuance of the specialty [specialized] license
plate; or
(2) the private vendor to market and [or] sell a
specialty [specialized] license plate with a design or color
combination that is inconsistent with the design or color
combination specified by that section.
(g-1) The department may not:
(1) publish a proposed design or color combination for
a specialty license plate for public comment in the Texas Register
or otherwise, except on the department's website for a period not to
exceed 10 days; or
(2) restrict the background color, color
combinations, or color alphanumeric license plate numbers of a
specialty license plate, except as determined by the Department of
Public Safety as necessary for law enforcement purposes.
(h) Subject to the limitations provided by Subsections (g)
and (g-1) [In connection with a license plate that is marketed or
sold by a private vendor under contract], the department may cancel
a license plate or require the discontinuation of a license plate
design or color combination that is marketed and sold by a private
vendor under contract at any time if the department determines that
the cancellation or discontinuation is in the best interest of this
state or the motoring public.
(k) The department shall certify to the comptroller the
estimate, with a detailed explanation of the basis on which the
estimate is calculated, of all reasonable costs to the department
associated with the evaluation of competitive sealed proposals
received by the department under this section and associated with
the implementation and enforcement of a contract entered into under
this section, including direct, indirect, and administrative costs
for the issuance or renewal of personalized license plates or
specialty license plates.
SECTION 17.02. Subchapter J, Chapter 504, Transportation
Code, is amended by adding Section 504.852 to read as follows:
Sec. 504.852. CONTRACT LIMITATIONS. (a) In a contract
under Section 504.851, the department may not:
(1) require a private vendor to meet a minimum sales
volume or pay a security or other deposit in an amount greater than
$100,000 to secure the performance of the vendor;
(2) unreasonably disapprove or limit any aspect of a
private vendor's marketing and sales plan;
(3) unreasonably interfere with the selection,
assignment, or management by the private vendor of the private
vendor's employees, agents, or subcontractors; or
(4) require a private vendor to market and sell
souvenir license plates, specialty license plates, or souvenir or
specialty license plates personalized under Section 504.102.
(b) If a private vendor contracts to market and sell
souvenir license plates, specialty license plates, or souvenir or
specialty license plates personalized under Section 504.102, the
initial term of the contract shall be for at least five years from
the effective date of the contract. The contract shall contain, at
the option of either the department or the private vendor, a second
term at least equal in length to the initial term of the contract.
(c) Notwithstanding Subsection (b), a private vendor may
not market and sell souvenir license plates, specialty license
plates, or souvenir or specialty license plates personalized under
Section 504.102 that compete directly for sales with another
specialty license plate issued under this chapter unless the
department and the sponsoring agency or organization of the other
license plate approve.
ARTICLE 18. TREATMENT OF CERTAIN FEES
RECEIVED BY INSTITUTIONS OF HIGHER EDUCATION
SECTION 18.01. 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), Education Code, lab fees, student
teaching fees, [hospital and clinic fees,] organized activity fees,
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 18.02. Section 51.009(c), Education Code, as
amended by this article, applies to fees collected on or after the
effective date of this Act. A fee collected before that date is
governed by the law in effect when the fee is collected, and that
law is continued in effect for that purpose.
ARTICLE 19. AUTHORIZATION OF CERTAIN NONPROFIT ORGANIZATIONS TO
CONDUCT BINGO
SECTION 19.01. Section 2001.002(11), Occupations Code, is
amended to read as follows:
(11) "Fraternal organization" means:
(A) a nonprofit organization organized to
perform and engaged primarily in performing charitable,
benevolent, patriotic, employment-related, or educational
functions that meet the other requirements of this chapter; [or]
(B) a nonprofit National Historical District
Association representing the owners and lessees of a majority of
the real property located in a National Historical District
designated for not less than five years by the National Register of
Historic Places, Heritage Conservation and Recreation Service of
the United States Department of the Interior, if the association's
net proceeds are used for restoration, construction, maintenance,
and security in the district. The term "fraternal organization"
does not include an organization whose members are predominantly
veterans or dependents of veterans of the armed services of the
United States; or
(C) a nonprofit organization that:
(i) is organized under tribal law by a
federally recognized Indian tribe that is not subject to the Indian
Gaming Regulatory Act (18 U.S.C. Section 1166 et seq. and 25 U.S.C.
Section 2701 et seq.) and that exercises tribal authority over a
reservation, as defined by 25 U.S.C. Section 1300g, that is located
in a county on the international border with Mexico; and
(ii) is organized to perform and is engaged
primarily in performing charitable, benevolent, patriotic,
employment-related, or educational functions.
SECTION 19.02. Subchapter C, Chapter 2001, Occupations
Code, is amended by adding Section 2001.1015 to read as follows:
Sec. 2001.1015. CERTAIN TRIBAL ORGANIZATIONS EXEMPT FROM
REGULATORY JURISDICTION AND LICENSE REQUIREMENTS. (a) A nonprofit
organization in existence for at least 180 days that qualifies as a
fraternal organization under Section 2001.002(11)(C) may conduct
bingo on the reservation of the Indian tribe under whose tribal law
the organization is organized on adoption by the tribe of rules
governing the conduct of bingo by the organization that conform to
the substantive provisions of this chapter and of Sections 47(b)
and (c), Article III, Texas Constitution.
(b) In accordance with Section 107(b), Ysleta del Sur Pueblo
and Alabama and Coushatta Indian Tribes of Texas Restoration Act
(25 U.S.C. Section 1300g-6), an organization described by
Subsection (a) may conduct bingo activities in accordance with the
tribe's rules adopted under Subsection (a) without submitting to
the regulatory jurisdiction, including licensing requirements, of
this state.
(c) A nonprofit organization described by Subsection (b)
may not conduct bingo under this section unless the organization
transfers to the state on a monthly basis an amount equal to five
percent of the gross receipts from bingo in a manner determined by
the comptroller.
ARTICLE 20. REIMBURSEMENT OF EXCESSIVE OR
UNFAIRLY DISCRIMINATORY RATES CHARGED BY CERTAIN INSURERS
SECTION 20.01. Article 5.144, Insurance Code, is amended by
amending Subsection (b) and adding Subsections (b-1) and (b-2) to
read as follows:
(b) Except as provided by Subsection (d) of this article, if
the commissioner determines that an insurer has charged a rate for
personal automobile insurance or residential property insurance
that is excessive or unfairly discriminatory, as described by
Article 5.13-2 [or 5.101] of this code, the commissioner may order
the insurer to:
(1) issue a refund of the excessive or unfairly
discriminatory portion of the premium, plus interest on that
amount, directly to each affected policyholder if the amount of
that portion of the premium is at least 7.5 percent of the total
premium charged for the coverage; or
(2) if the amount of that portion of the premium is
less than 7.5 percent:
(A) provide each affected policyholder who
renews the policy a future premium discount in the amount of the
excessive or unfairly discriminatory portion of the premium, plus
interest on that amount; and
(B) provide each affected policyholder who does
not renew or whose coverage is otherwise terminated a refund in the
amount described by Subdivision (1) of this subsection.
(b-1) The rate for interest assessed under Subsection (b) of
this article is the lesser of 18 percent or the sum of the prime rate
for the calendar year in which the order by the commissioner that
the rate is excessive or unfairly discriminatory is issued and six
percent. For purposes of this subsection, the prime rate is the
prime rate as published in The Wall Street Journal for the first day
of the calendar year that is not a Saturday, Sunday, or legal
holiday. The interest accrues beginning on the date on which the
commissioner enters the order and continues to accrue until the
refund is paid. An insurer may not be required to pay any interest
penalty if the insurer prevails in an appeal of the commissioner's
order under Subchapter D, Chapter 36, of this code.
(b-2) An insurer may not claim a premium tax credit to which
the insurer is otherwise entitled unless the insurer has complied
with this article.
ARTICLE 21. EFFECTIVE DATE
SECTION 21.01. Except 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, except as
otherwise provided by this Act, this Act takes effect on the 91st
day after the last day of the legislative session.