By: Pitts (Senate Sponsor - Ogden) H.B. No. 3540
(In the Senate - Received from the House May 6, 2005;
May 12, 2005, read first time and referred to Committee on Finance;
May 23, 2005, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 1; May 23, 2005,
sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 3540 By: Ogden
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are repealed.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 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.
(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
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.
SECTION 2.03. Subchapter E, Chapter 1551, Insurance Code,
is amended by adding Section 1551.222 to read as follows:
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.
(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 retired from state employment
on or after June 1, 2005, and 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 659.043(a), Government Code, is
amended to read as follows:
(a) A state employee is entitled to longevity pay to be
included in the employee's monthly compensation if the employee:
(1) is a full-time state employee on the first workday
of the month;
(2) is not on leave without pay on the first workday of
the month; and
(3) has accrued at least two [three] years of lifetime
service credit not later than the last day of the preceding month.
SECTION 3.03. Section 659.044, Government Code, as amended
by Section 32, Chapter 1158, Acts of the 77th Legislature, Regular
Session, 2001, and Section 104, Chapter 1158, Acts of the 77th
Legislature, Regular Session, 2001, is reenacted and amended to
read as follows:
Sec. 659.044. AMOUNT. (a) Except as provided by
Subsections [Subsection] (e) and (f), the monthly amount of
longevity pay is $20 for every two [three] years of lifetime service
credit.
(b) The amount increases when the 4th, 6th, 8th [9th], 10th,
12th, 14th [15th], 16th, 18th, 20th [21st], 22nd, 24th, 26th
[27th], 28th, 30th, 32nd [33rd], 34th, 36th, 38th [39th], 40th, and
42nd years of lifetime service credit are accrued.
(c) An increase is effective beginning with the month
following the month in which the 4th, 6th, 8th [9th], 10th, 12th,
14th [15th], 16th, 18th, 20th [21st], 22nd, 24th, 26th [27th],
28th, 30th, 32nd [33rd], 34th, 36th, 38th [39th], 40th, and 42nd
years of lifetime service credit are accrued.
(d) An employee may not receive from the state as longevity
pay more than the amount determined under Subsection (a) or (e), as
applicable, regardless of the number of positions the employee
holds or the number of hours the employee works each week.
(e) This subsection applies only to an employee of the Texas
Youth Commission who is receiving less than the maximum amount of
hazardous duty pay that the commission may pay to the employee under
Section 659.303. The employee's monthly amount of longevity pay is
the sum of:
(1) $4 for each year of lifetime service credit, which
may not include any period served in a hazardous duty position; and
(2) the lesser of:
(A) $4 for each year served in a hazardous duty
position; or
(B) the difference between:
(i) $7 for each year served in a hazardous
duty position; and
(ii) the amount paid by the commission for
each year served in a hazardous duty position.
(f) A state employee who retired from state employment
before June 1, 2005, and who returned to state employment before
September 1, 2005, is entitled to receive longevity pay. The
monthly amount of longevity pay the employee is entitled to receive
equals the amount of longevity pay the employee was entitled to
receive immediately before September 1, 2005. A state employee who
retired from state employment before June 1, 2005, and who returns
to state employment on or after September 1, 2005, is not entitled
to receive longevity pay.
SECTION 3.04. 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 retired from state
employment on or after June 1, 2005, and 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 3.05. 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 retired from state
employment on or after June 1, 2005, and 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 3.06. Sections 659.305(a), (b), (c), and (g),
Government Code, are amended to read as follows:
(a) Except as provided by Subsection (b), the amount of a
full-time state employee's hazardous duty pay for a particular
month is the lesser of:
(1) $10 [$7] for each 12-month period of lifetime
service credit accrued by the employee; or
(2) $300 [$210].
(b) This subsection applies only to a state employee whose
compensation for services provided to the state during any month
before August 1987 included hazardous duty pay that was based on
total state service performed before May 29, 1987. The amount of a
full-time state employee's hazardous duty pay for a particular
month is the sum of:
(1) $10 [$7] for each 12-month period of state service
credit the employee finished accruing before May 29, 1987; and
(2) $10 [$7] for each 12-month period of lifetime
service credit that the employee accrued after the date, which must
be before May 29, 1987, on which the employee finished accruing the
last 12-month period of state service credit.
(c) The amount determined under Subsection (b)(2) may not
exceed $300 [$210].
(g) A state employee may not receive more than $10 [$7] for
each 12-month period of lifetime service credit, regardless of:
(1) the number of positions the employee holds; or
(2) the number of hours the employee works each week.
SECTION 3.07. (a) Except as provided by Subsection (b) of
this section, the change in law made by this article to Section
659.126, Government Code, applies only to a state employee who
leaves state employment on or after the effective date of this
article. A state employee who leaves state employment before the
effective date of this article is governed by the law as it existed
on the date the employee left state employment and the former law is
continued in effect for that purpose.
(b) A state employee who leaves state employment before the
effective date of this article is ineligible to receive benefit
replacement pay unless the employee returns to state employment
before September 30, 2005.
SECTION 3.08. 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. PUBLIC SCHOOL FACILITIES
SECTION 5.01. Section 46.033, Education Code, is amended to
read as follows:
Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
under Section 45.006, are eligible to be paid with state and local
funds under this subchapter if:
(1) the district made payments on the bonds during the
2004-2005 [2002-2003] school year or taxes levied to pay the
principal of and interest on the bonds were included in the
district's audited debt service collections for that school year;
and
(2) the district does not receive state assistance
under Subchapter A for payment of the principal and interest on the
bonds.
SECTION 5.02. Section 46.034(c), Education Code,
is amended to read as follows:
(c) If the amount required to pay the principal of and
interest on eligible bonds in a school year is less than the amount
of payments made by the district on the bonds during the 2004-2005
[2002-2003] school year or the district's audited debt service
collections for that school year, the district may not receive aid
in excess of the amount that, when added to the district's local
revenue for the school year, equals the amount required to pay the
principal of and interest on the bonds.
ARTICLE 6. SCHOOL EMPLOYEES AND RETIREES
PART A. COMPENSATION SUPPLEMENTATION FOR CERTAIN SCHOOL EMPLOYEES
SECTION 6A.01. Sections 22.004(a), (b), (c), (i), and (j),
Education Code, are amended to read as follows:
(a) A district shall participate in the uniform group
coverage program established under Chapter 1579 [Article 3.50-7],
Insurance Code, as provided by Subchapter D [Section 5] of that
chapter [article].
(b) A district that does not participate in the program
described by Subsection (a) shall make available to its employees
group health coverage provided by a risk pool established by one or
more school districts under Chapter 172, Local Government Code, or
under a policy of insurance or group contract issued by an insurer,
a company subject to Chapter 842, Insurance Code, or a health
maintenance organization under Chapter 843, Insurance Code. The
coverage must meet the substantive coverage requirements of Chapter
1251, Subchapter A, Chapter 1364, and Subchapter A, Chapter 1366
[Article 3.51-6], Insurance Code, and any other law applicable to
group health insurance policies or contracts issued in this state.
The coverage must include major medical treatment but may exclude
experimental procedures. In this subsection, "major medical
treatment" means a medical, surgical, or diagnostic procedure for
illness or injury. The coverage may include managed care or
preventive care and must be comparable to the basic health coverage
provided under Chapter 1551, Insurance Code. The board of trustees
of the Teacher Retirement System of Texas shall adopt rules to
determine whether a school district's group health coverage is
comparable to the basic health coverage specified by this
subsection. The rules must provide for consideration of the
following factors concerning the district's coverage in
determining whether the district's coverage is comparable to the
basic health coverage specified by this subsection:
(1) the deductible amount for service provided inside
and outside of the network;
(2) the coinsurance percentages for service provided
inside and outside of the network;
(3) the maximum amount of coinsurance payments a
covered person is required to pay;
(4) the amount of the copayment for an office visit;
(5) the schedule of benefits and the scope of
coverage;
(6) the lifetime maximum benefit amount; and
(7) verification that the coverage is issued by a
provider licensed to do business in this state by the Texas
Department of Insurance or is provided by a risk pool authorized
under Chapter 172, Local Government Code, or that a district is
capable of covering the assumed liabilities in the case of coverage
provided through district self-insurance.
(c) The cost of the coverage provided under the program
described by Subsection (a) shall be paid by the state, the
district, and the employees in the manner provided by Subchapter F,
Chapter 1579 [Article 3.50-7], Insurance Code. The cost of
coverage provided under a plan adopted under Subsection (b) shall
be shared by the employees and the district using the contributions
by the state described by Subchapter F, Chapter 1579 [Section 9,
Article 3.50-7], Insurance Code, or Subchapter D [by Article
3.50-8, Insurance Code].
(i) Notwithstanding any other provision of this section, a
district participating in the uniform group coverage program
established under Chapter 1579 [Article 3.50-7], Insurance Code,
may not make group health coverage available to its employees under
this section after the date on which the program of coverages
provided under Chapter 1579 [Article 3.50-7], Insurance Code, is
implemented.
(j) This section does not preclude a district that is
participating in the uniform group coverage program established
under Chapter 1579 [Article 3.50-7], Insurance Code, from entering
into contracts to provide optional insurance coverages for the
employees of the district.
SECTION 6A.02. Chapter 22, Education Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. COMPENSATION SUPPLEMENTATION
Sec. 22.101. DEFINITIONS. In this subchapter:
(1) "Cafeteria plan" means a plan as defined and
authorized by Section 125, Internal Revenue Code of 1986.
(2) "Employee" means an active, contributing member of
the Teacher Retirement System of Texas who:
(A) is employed by a district, other educational
district whose employees are members of the Teacher Retirement
System of Texas, participating charter school, or regional
education service center;
(B) is not a retiree eligible for coverage under
the program established under Chapter 1575, Insurance Code;
(C) is not eligible for coverage by a group
insurance program under Chapter 1551 or 1601, Insurance Code; and
(D) is not an individual performing personal
services for a district, other educational district that is a
member of the Teacher Retirement System of Texas, participating
charter school, or regional education service center as an
independent contractor.
(3) "Participating charter school" means an
open-enrollment charter school established under Subchapter D,
Chapter 12, that participates in the program established under
Chapter 1579, Insurance Code.
(4) "Regional education service center" means a
regional education service center established under Chapter 8.
Sec. 22.102. AUTHORITY TO ADOPT RULES; OTHER AUTHORITY.
(a) The agency may adopt rules to implement this subchapter.
(b) The agency may enter into interagency contracts with any
other agency of this state for the purpose of assistance in
implementing this subchapter.
Sec. 22.103. ELIGIBILITY; WAITING PERIOD. A person is not
eligible for a monthly distribution under this subchapter before
the 91st day after the first day the person becomes an employee.
Sec. 22.104. DISTRIBUTION BY AGENCY. Subject to the
availability of funds, each month the agency shall deliver to each
district, including a district that is ineligible for state aid
under Chapter 42, each other educational district that is a member
of the Teacher Retirement System of Texas, each participating
charter school, and each regional education service center state
funds in an amount, as determined by the agency, equal to the
product of the number of eligible employees employed by the
district, school, or service center multiplied by the amount
specified in the General Appropriations Act for purposes of this
subchapter and divided by 12. The agency shall distribute funding
to only one entity for employees who are employed by more than one
entity listed in this section.
Sec. 22.105. FUNDS HELD IN TRUST. All funds received by a
district, other educational district, participating charter
school, or regional education service center under this subchapter
are held in trust for the benefit of the employees on whose behalf
the district, school, or service center received the funds.
Sec. 22.106. RECOVERY OF DISTRIBUTIONS. The agency is
entitled to recover from a district, other educational district,
participating charter school, or regional education service center
any amount distributed under this subchapter to which the district,
school, or service center was not entitled.
Sec. 22.107. DETERMINATION BY AGENCY FINAL. A
determination by the agency under this subchapter is final and may
not be appealed.
Sec. 22.108. DISTRIBUTION BY SCHOOL. Each month, each
district, other educational district that is a member of the
Teacher Retirement System of Texas, participating charter school,
and regional education service center must distribute to its
eligible employees the funding received under this subchapter. To
receive the monthly distribution, an individual must meet the
definition of an employee under Section 22.101 for that month.
Sec. 22.109. USE OF SUPPLEMENTAL COMPENSATION. An employee
may use a monthly distribution received under this subchapter for
any employee benefit, including depositing the amount of the
distribution into a cafeteria plan, if the employee is enrolled in a
cafeteria plan, or using the amount of the distribution for health
care premiums through a premium conversion plan. The employee may
take the amount of the distribution as supplemental compensation.
Sec. 22.110. SUPPLEMENTAL COMPENSATION. An amount
distributed to an employee under this subchapter must be in
addition to the rate of compensation that:
(1) the district, other educational district,
participating charter school, or regional education service center
paid the employee in the preceding school year; or
(2) the district, school, or service center would have
paid the employee in the preceding school year if the employee had
been employed by the district, school, or service center in the same
capacity in the preceding school year.
SECTION 6A.03. Section 822.201(c), Government Code, is
amended to read as follows:
(c) Excluded from salary and wages are:
(1) expense payments;
(2) allowances;
(3) payments for unused vacation or sick leave;
(4) maintenance or other nonmonetary compensation;
(5) fringe benefits;
(6) deferred compensation other than as provided by
Subsection (b)(3);
(7) compensation that is not made pursuant to a valid
employment agreement;
(8) payments received by an employee in a school year
that exceed $5,000 for teaching a driver education and traffic
safety course that is conducted outside regular classroom hours;
(9) the benefit replacement pay a person earns as a
result of a payment made under Subchapter B or C, Chapter 661;
(10) any amount [contributions to a health
reimbursement arrangement account] received by an employee under
Subchapter D, Chapter 22, Education Code, former Article 3.50-8,
Insurance Code, former Chapter 1580, Insurance Code, or Rider 9,
page III-39, Chapter 1330, Acts of the 78th Legislature, Regular
Session, 2003 (the General Appropriations Act); and
(11) any compensation not described by Subsection (b).
SECTION 6A.04. Section 1579.253(b), Insurance Code, is
amended to read as follows:
(b) The employee may pay the employee's contribution under
this subsection from the amount distributed to the employee under
Subchapter D, Chapter 22, Education Code [1580].
SECTION 6A.05. Section 1581.702, Insurance Code, is amended
to read as follows:
Sec. 1581.702. ADDITIONAL SUPPORT. The state shall provide
additional support for a school district to which this section
applies in an amount computed by multiplying the total amount of
supplemental compensation received by district employees under
Subchapter D, Chapter 22, Education Code, [1580] by 0.062.
SECTION 6A.06. The following laws are repealed:
(1) Chapter 1580, Insurance Code;
(2) Section 57, Chapter 201, Acts of the 78th
Legislature, Regular Session, 2003;
(3) Chapter 313, Acts of the 78th Legislature, Regular
Session, 2003; and
(4) Section 1.01, Chapter 366, Acts of the 78th
Legislature, Regular Session, 2003.
SECTION 6A.07. The functions and duties of the Teacher
Retirement System of Texas with respect to the compensation
supplementation program established under Chapter 1580, Insurance
Code, and other applicable law, and any appropriation relating to
that program are transferred to the Texas Education Agency. A
reference in law to the Teacher Retirement System of Texas with
respect to the compensation supplementation program means the Texas
Education Agency.
SECTION 6A.08. This part takes effect September 1, 2005.
PART B. CERTAIN PROVISIONS RELATING TO BENEFITS FOR RETIRED
SCHOOL EMPLOYEES
SECTION 6B.01. Section 822.001(f), Government Code, is
repealed.
SECTION 6B.02. Section 1575.203(a), Insurance Code, is
amended to read as follows:
(a) Each state fiscal year, each active employee shall, as a
condition of employment, contribute to the fund an amount equal to
0.65 [0.5] percent of the employee's salary.
SECTION 6B.03. The change in law made by this part to
Section 1575.203, Insurance Code, takes effect September 1, 2005.
ARTICLE 7. DRUG PURCHASING FOR STATE AGENCIES
SECTION 7.01. 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.
SECTION 7.02. 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 7.03. 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. Section 252.209, Health and Safety Code, is
repealed.
ARTICLE 9. FAITH- AND COMMUNITY-BASED INITIATIVES TO PROVIDE
HEALTH AND HUMAN SERVICES
SECTION 9.01. Chapter 401, Government Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. TEXAS MENTORING INITIATIVE
Sec. 401.151. ESTABLISHMENT AND PURPOSE OF TEXAS MENTORING
INITIATIVE. (a) The office of the governor shall establish the
Texas mentoring initiative to fund activities that:
(1) create or expand mentoring opportunities in this
state;
(2) promote responsible fatherhood and healthy
marriages; and
(3) increase the capacity of faith- and
community-based organizations, as defined by Section 535.001, to
provide mentoring and other charitable services to persons in this
state.
(b) The office of the governor shall administer the Texas
mentoring initiative subject to the availability of funds
appropriated for that purpose.
Sec. 401.152. GRANTS. The office of the governor shall
provide grants through the Texas mentoring initiative to support:
(1) activities described by Section 401.151; and
(2) the renewing our communities account under Chapter
535.
SECTION 9.02. Subtitle I, Title 4, Government Code, is
amended by adding Chapter 535 to read as follows:
CHAPTER 535. RENEWING OUR COMMUNITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 535.001. DEFINITIONS. In this chapter:
(1) "Account" means the renewing our communities
account.
(2) "Community-based organization" means a nonprofit
corporation or association that is located in close proximity to
the population the organization serves.
(3) "Faith-based organization" means a nonprofit
corporation or association that:
(A) is operated through a religious or
denominational organization, including an organization that is
operated for religious, educational, or charitable purposes and
that is operated, supervised, or controlled, wholly or partly, by
or in connection with a religious organization; or
(B) clearly demonstrates through the
organization's mission statement, policies, or practices that the
organization is guided or motivated by religion.
Sec. 535.002. CONSTRUCTION. This chapter may not be
construed to:
(1) exempt a faith- or community-based organization
from any applicable state or federal law; or
(2) be an endorsement or sponsorship by this state of
the religious character, expression, beliefs, doctrines, or
practices of a faith-based organization.
Sec. 535.003. APPLICABILITY OF CERTAIN FEDERAL LAW. A
power authorized or duty imposed under this chapter must be
performed in a manner that is consistent with 42 U.S.C. Section
604a.
[Sections 535.004-535.050 reserved for expansion]
SUBCHAPTER B. RENEWING OUR COMMUNITIES ACCOUNT
Sec. 535.051. RENEWING OUR COMMUNITIES ACCOUNT. (a) The
renewing our communities account is an account in the general
revenue fund that may be appropriated only to the commission for the
purposes and activities authorized by this chapter and for
reasonable administrative expenses under this chapter.
(b) The account consists of:
(1) all money appropriated for the purposes of this
chapter;
(2) any gifts, grants, or donations received for the
purposes of this chapter; and
(3) interest earned on money in the account.
(c) The account is exempt from the application of Section
403.095.
(d) The purposes of the account are to:
(1) increase the capacity of and strengthen faith- and
community-based organizations to provide charitable services to
persons in this state who are in need of those services;
(2) assist local governmental entities in
establishing local offices for faith- and community-based
initiatives;
(3) foster better partnerships between state
government and faith- and community-based organizations to provide
charitable services to persons in this state; and
(4) leverage state and local resources to acquire
federal or private grant funds to provide charitable services in
this state.
Sec. 535.052. POWERS AND DUTIES REGARDING ACCOUNT. (a) The
commission shall:
(1) develop and implement a competitive process for
awarding grants from the account that is consistent with state law
and includes objective selection criteria;
(2) oversee the delivery of training and other
assistance activities under this chapter;
(3) develop criteria limiting awards of grants under
Subsection (b)(1) to small and medium-sized faith- and
community-based organizations that provide charitable services to
persons in this state;
(4) establish general state priorities for the
account; and
(5) establish and monitor performance and outcome
measures for persons to whom grants are awarded under this chapter.
(b) The commission may:
(1) award grants from the account to faith- and
community-based organizations that provide charitable services to
persons in this state for capacity-building purposes;
(2) directly, or through agreements with one or more
entities that serve faith- and community-based organizations that
provide charitable services to persons in this state:
(A) assist faith- and community-based
organizations with:
(i) writing or managing grants through
workshops or other forms of guidance;
(ii) obtaining legal assistance related to
forming a corporation or obtaining an exemption from taxation under
the Internal Revenue Code; and
(iii) obtaining information about or
referrals to entities that provide expertise in accounting, legal,
or tax issues, program development matters, or other organizational
topics;
(B) provide information or assistance to faith-
and community-based organizations related to building the
organizations' capacity for providing services;
(C) facilitate the formation of networks, the
coordination of services, and the sharing of resources among faith-
and community-based organizations;
(D) in cooperation with existing efforts, if
possible, conduct needs assessments to identify gaps in services in
a community that present a need for developing or expanding
services;
(E) work with faith- and community-based
organizations to identify the organizations' needs for
improvements in their internal capacity for providing services; and
(F) provide faith- and community-based
organizations with information on and assistance in identifying or
using best practices for delivering charitable services to persons,
families, and communities and in replicating charitable services
programs that have demonstrated effectiveness;
(3) award grants from the account to local
governmental entities to provide seed money for local offices for
faith- and community-based initiatives;
(4) assist a local governmental entity in creating a
better partnership between government and faith- and
community-based organizations to provide charitable services to
persons in this state;
(5) use the account to provide matching money for
federal or private grant programs that further the purposes of the
account as described by Section 535.051(d); and
(6) contract with the governor's office of faith-based
and community initiatives to administer programs or perform duties
or activities under this chapter.
Sec. 535.053. FAITH- AND COMMUNITY-BASED INITIATIVES
ADVISORY COMMITTEE. (a) The executive commissioner shall appoint
faith and community leaders in this state to serve on the faith- and
community-based initiatives advisory committee. The advisory
committee members must be representative of the religious and
cultural diversity of this state.
(b) The advisory committee shall make recommendations to
the executive commissioner regarding the executive commissioner's
powers and duties with respect to the account as described by
Section 535.052.
(c) Except as otherwise provided by this subsection, the
advisory committee shall meet at least twice each calendar year.
The advisory committee is not required to meet if the remaining
amount appropriated from the account to the commission for the
state fiscal biennium is insufficient for the performance of any
duties or activities under this chapter.
(d) Chapter 2110 does not apply to the advisory committee.
(e) The advisory committee is subject to Chapter 551.
SECTION 9.03. This article takes effect September 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) $42.20 [$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] (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-1) who submitted a visa
expires on the date the person's visa expires.
ARTICLE 11. COLLECTION OF CERTAIN STATE TAXES
PART A. SALES TAX
SECTION 11A.01. 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 11A.02. 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 11A.03. 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 11A.04. 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 11A.05. 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 11A.06. Section 151.423, Tax Code, is repealed.
SECTION 11A.07. This part takes effect October 1, 2005.
PART B. MOTOR VEHICLE SALES AND USE TAX
SECTION 11B.01. Section 152.002, Tax Code, is amended by
adding Subsection (f) to read as follows:
(f) Notwithstanding Subsection (a), the total consideration
of a used motor vehicle is the amount on which the tax is computed as
provided by Section 152.0412.
SECTION 11B.02. Section 152.041(a), Tax Code, is amended to
read as follows:
(a) The tax assessor-collector of the county in which an
application for registration or for a Texas certificate of title is
made shall collect taxes imposed by this chapter, subject to
Section 152.0412, unless another person is required by this chapter
to collect the taxes.
SECTION 11B.03. Subchapter C, Chapter 152, Tax Code, is
amended by adding Section 152.0412 to read as follows:
Sec. 152.0412. STANDARD PRESUMPTIVE VALUE; USE BY TAX
ASSESSOR-COLLECTOR. (a) In this section, "standard presumptive
value" means the average retail value of a motor vehicle as
determined by the Texas Department of Transportation, based on a
nationally recognized motor vehicle industry reporting service.
(b) If the amount paid for a motor vehicle subject to the tax
imposed by this chapter is equal to or greater than the standard
presumptive value of the vehicle, a county tax assessor-collector
shall compute the tax on the amount paid.
(c) If the amount paid for a motor vehicle subject to the tax
imposed by this chapter is less than the standard presumptive value
of the vehicle, a county tax assessor-collector shall compute the
tax on the standard presumptive value unless the purchaser
establishes the retail value of the vehicle as provided by
Subsection (d).
(d) A county tax assessor-collector shall compute the tax
imposed by this chapter on the retail value of a motor vehicle if:
(1) the retail value is shown on an appraisal
certified by an adjuster licensed under Chapter 4101, Insurance
Code, or by a motor vehicle dealer operating under Subchapter B,
Chapter 503, Transportation Code;
(2) the appraisal is on a form prescribed by the
comptroller for that purpose; and
(3) the purchaser of the vehicle obtains the appraisal
not later than the 20th day after the date of purchase.
(e) On request, a motor vehicle dealer operating under
Subchapter B, Chapter 503, Transportation Code, shall provide a
certified appraisal of the retail value of a motor vehicle. The
comptroller by rule shall establish a fee that a dealer may charge
for providing the certified appraisal. The county tax
assessor-collector shall retain a copy of a certified appraisal
received under this section for a period prescribed by the
comptroller.
(f) The Texas Department of Transportation shall maintain
information on the standard presumptive values of motor vehicles as
part of the department's registration and title system. The
department shall update the information at least quarterly each
calendar year.
(g) This section does not apply to a transaction described
by Section 152.024 or 152.025.
SECTION 11B.04. Not later than October 1, 2005, the Texas
Department of Transportation shall:
(1) establish standard presumptive values for motor
vehicles as provided by Section 152.0412, Tax Code, as added by this
part;
(2) modify the department's registration and title
system as needed to include that information and administer that
section; and
(3) make that information available through the system
to all county tax assessor-collectors.
SECTION 11B.05. (a) Except as provided by this part and
Subsection (b) of this section, this part takes effect July 1, 2005,
if this Act receives a vote of two-thirds of all the members elected
to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
effect on that date, this part takes effect September 1, 2005.
(b) Section 152.0412, Tax Code, as added by this part, takes
effect October 1, 2005.
PART C. HOTEL OCCUPANCY TAXES
SECTION 11C.01. Section 156.001, Tax Code, is amended to
read as follows:
Sec. 156.001. DEFINITION. In this chapter, "hotel" means a
building in which members of the public obtain sleeping
accommodations for consideration. The term includes a hotel,
motel, tourist home, tourist house, tourist court, lodging house,
inn, rooming house, or bed and breakfast. The term does not
include:
(1) a hospital, sanitarium, or nursing home; [or]
(2) a dormitory or other housing facility owned or
leased and operated by an institution of higher education or a
private or independent institution of higher education as those
terms are defined by Section 61.003, Education Code, used by the
institution for the purpose of providing sleeping accommodations
for persons engaged in an educational program or activity at the
institution; or
(3) that part of an apartment or condominium building
that consists of dwelling units that are leased to tenants, as
defined by Section 92.001, Property Code.
SECTION 11C.02. Section 351.002(c), Tax Code, is amended to
read as follows:
(c) The tax does not apply to a person who has the right to
use or possess a room in a hotel for at least 30 consecutive days, so
long as there is no interruption of payment for that period [is a
permanent resident under Section 156.101 of this code].
SECTION 11C.03. Section 352.001(1), Tax Code, is amended to
read as follows:
(1) "Hotel" has the meaning assigned by Section
156.001 [156.001(1)].
SECTION 11C.04. Section 352.002(c), Tax Code, is amended to
read as follows:
(c) The tax does not apply to a person who has the right to
use or possess a room in a hotel for at least 30 consecutive days, so
long as there is no interruption of payment for that period [is a
permanent resident under Section 156.101 of this code].
SECTION 11C.05. Section 156.101, Tax Code, is repealed.
SECTION 11C.06. This part takes effect July 1, 2005, if this
Act receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this part takes effect October 1, 2005.
PART D. MOTOR FUELS TAX
SECTION 11D.01. Section 162.503, Tax Code, is amended to
read as follows:
Sec. 162.503. ALLOCATION OF GASOLINE TAX. (a) Except as
provided by Subsection (b), on [On] or before the fifth workday
after the end of each month, the comptroller, after making all
deductions for refund purposes and for the amounts allocated under
Sections 162.502 and 162.5025, shall allocate the net remainder of
the taxes collected under Subchapter B as follows:
(1) one-fourth of the tax shall be deposited to the
credit of the available school fund;
(2) one-half of the tax shall be deposited to the
credit of the state highway fund for the construction and
maintenance of the state road system under existing law; and
(3) from the remaining one-fourth of the tax the
comptroller shall:
(A) deposit to the credit of the county and road
district highway fund all the remaining tax receipts until a total
of $7,300,000 has been credited to the fund each fiscal year; and
(B) after the amount required to be deposited to
the county and road district highway fund has been deposited,
deposit to the credit of the state highway fund the remainder of the
one-fourth of the tax, the amount to be provided on the basis of
allocations made each month of the fiscal year, which sum shall be
used by the Texas Department of Transportation for the
construction, improvement, and maintenance of farm-to-market
roads.
(b) During the months of June, July, and August of each
odd-numbered year, the comptroller may not make the allocations to
the state highway fund and county and road district highway fund
otherwise required by Subsections (a)(2) and (3). After September
5 and before September 11 of that year, the comptroller shall
allocate and deposit to the state highway fund the total amount of
revenue that would have been otherwise allocated and deposited to
that fund during those months.
SECTION 11D.02. Section 162.504, Tax Code, is amended to
read as follows:
Sec. 162.504. ALLOCATION OF DIESEL FUEL TAX. (a) Except as
provided by Subsection (b), on [On] or before the fifth workday
after the end of each month, the comptroller, after making
deductions for refund purposes, for the administration and
enforcement of this chapter, and for the amounts allocated under
Section 162.5025, shall allocate the remainder of the taxes
collected under Subchapter C as follows:
(1) one-fourth of the taxes shall be deposited to the
credit of the available school fund; and
(2) three-fourths of the taxes shall be deposited to
the credit of the state highway fund.
(b) During the months of June, July, and August of each
odd-numbered year, the comptroller may not make the allocation to
the state highway fund otherwise required by Subsection (a)(2).
After September 5 and before September 11 of that year, the
comptroller shall allocate and deposit to the state highway fund
the total amount of revenue that would have been otherwise
allocated to that fund during those months.
SECTION 11D.03. Section 162.505, Tax Code, is amended to
read as follows:
Sec. 162.505. ALLOCATION OF LIQUEFIED GAS TAX. (a) Except
as provided by Subsection (b), on [On] or before the fifth workday
after the end of each month, the comptroller, after making
deductions for refund purposes and for the administration and
enforcement of this chapter, shall allocate the remainder of the
taxes collected under Subchapter D as follows:
(1) one-fourth of the taxes shall be deposited to the
credit of the available school fund; and
(2) three-fourths of the taxes shall be deposited to
the credit of the state highway fund.
(b) During the months of June, July, and August of each
odd-numbered year, the comptroller may not make the allocation to
the state highway fund otherwise required by Subsection (a)(2).
After September 5 and before September 11 of that year, the
comptroller shall allocate and deposit to the state highway fund
the total amount of revenue that would have been otherwise
allocated to that fund during those months.
SECTION 11D.04. This part takes effect June 1, 2007.
PART E. FRANCHISE TAX
SECTION 11E.01. Section 171.001, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) For purposes of Subsection (a), a corporation does
business in this state if the corporation is a foreign corporation
and is:
(1) holding a partnership interest, including an
interest as an assignee, as a general partner in a general
partnership that is doing business in this state;
(2) holding a partnership interest, including an
interest as an assignee, as a general partner in a limited
partnership that is doing business in this state; or
(3) holding a partnership interest, including an
interest as an assignee, as a limited partner in a limited
partnership that is doing business in this state.
SECTION 11E.02. Subchapter C, Chapter 171, Tax Code, is
amended by adding Section 171.1001 to read as follows:
Sec. 171.1001. DEFINITIONS. In this subchapter:
(1) "Arm's length" means the standard of conduct under
which unrelated parties having substantially equal bargaining
power, each acting in its own interest, would negotiate or carry out
a particular transaction.
(2) "Controlling interest" means:
(A) for a corporation, either 50 percent or more,
owned directly or indirectly, of the total combined voting power of
all classes of stock of the corporation, or 50 percent or more,
owned directly or indirectly, of the beneficial ownership interest
in the voting stock of the corporation; and
(B) for a partnership, association, trust, or
other entity, 50 percent or more, owned directly or indirectly, of
the capital, profits, or beneficial interest in the partnership,
association, trust, or other entity.
(3) "Interest payment" means an amount allowable as an
interest deduction under Section 163, Internal Revenue Code.
(4) "Management fee" means a fee for services of a
managerial or administrative nature, including services pertaining
to management, accounts receivable and payable, employee benefit
plans, insurance, legal matters, payroll, data processing,
purchasing, taxes, financial matters, securities, accounting,
reporting, and compliance.
(5) "Related party" means a person, corporation, or
other entity, including an entity that is treated as a pass-through
or disregarded entity for purposes of federal taxation, whether the
person, corporation, or entity is subject to the tax under this
chapter or not, in which one person, corporation, or entity, or set
of related persons, corporations, or entities, directly or
indirectly owns or controls a controlling interest in another
entity.
(6) "Royalty payment" means a payment directly
connected to the acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of licenses,
trademarks, copyrights, trade names, trade dress, service marks,
mask works, trade secrets, patents, or any other similar types of
intangible assets as determined by the comptroller.
(7) "Valid business purpose" means one or more
business purposes, other than the avoidance or reduction of taxes,
that alone or in combination constitute the primary motivation for
a business activity or transaction that changes in a meaningful
way, apart from tax effects, the economic position of the entity. A
valid business purpose includes compliance with a regulatory
requirement of:
(A) the federal government;
(B) a state or local government;
(C) a foreign nation; or
(D) an agency or political subdivision of any
entity listed in Paragraphs (A)-(C).
SECTION 11E.03. Subchapter C, Chapter 171, Tax Code, is
amended by adding Sections 171.1101-171.1103 to read as follows:
Sec. 171.1101. ADD-BACK OF PAYMENTS TO RELATED PARTY.
Except as provided by Section 171.1102, a corporation shall add
back to reportable federal taxable income any royalty payments,
interest payments, and management fees made to a related party
during the period on which earned surplus is based to the extent
deducted in computing reportable federal taxable income.
Sec. 171.1102. SAFE HARBORS FOR CERTAIN PAYMENTS AND FEES.
(a) A corporation is not required to add back royalty payments to a
related party to the extent:
(1) the related party during the period on which
earned surplus is based directly or indirectly paid or incurred the
amount to a person or entity that is not a related party, the
transaction was done for a valid business purpose, and the payments
were made at arm's length; or
(2) the royalty payments are paid or incurred to a
related party organized under the laws of a foreign nation, are
subject to a comprehensive income tax treaty between the foreign
nation and the United States, and are taxed in the foreign nation at
a tax rate equal to or greater than 4.5 percent.
(b) A corporation is not required to add back interest
payments to a related party to the extent:
(1) the interest is at or below the applicable federal
rate compounded annually for debt instruments under Section
1274(d), Internal Revenue Code, that was in effect at the time of
the agreement; or
(2) the related party during the period on which
earned surplus is based directly or indirectly paid or incurred the
amount to a person or entity that is not a related party, the
transaction was done for a valid business purpose, and the payments
were made at arm's length.
(c) A corporation is not required to add back a royalty
payment or an interest payment made to a related party, or a
management fee paid to a related party, if the combined tax paid to
this state, or to this state and one or more other states each of
which has a tax rate equal to or greater than the rate under Section
171.002(a)(2), by the corporation and the related party exceeds the
tax that would have been paid by the corporation if the royalty
payment or interest payment had not been made.
(d) A corporation is not required to add back a management
fee paid to a related party to the extent that the transaction was
done for a valid business purpose and the fee was paid at arm's
length.
Sec. 171.1103. ADJUSTMENT TO INCOME AND EXPENSES BY
COMPTROLLER. (a) The comptroller may distribute, apportion, or
allocate gross income, deductions, credits, or allowances between
or among two or more organizations, trades, or businesses, whether
or not incorporated, whether or not organized in the United States,
and whether or not affiliated, if:
(1) the organizations, trades, or businesses are owned
or controlled directly or indirectly by the same interests; and
(2) the comptroller determines that the distribution,
apportionment, or allocation is necessary to reflect an arm's
length standard, within the meaning of 26 C.F.R. Section 1.482-1,
and to clearly reflect the income of those organizations, trades,
or businesses.
(b) The comptroller shall apply the administrative and
judicial interpretations of Section 482, Internal Revenue Code, in
administering this section.
SECTION 11E.04. (a) Subject to other provisions of this
section, this part applies to reports originally due on or after the
effective date of this part.
(b) For a corporation becoming subject to the franchise tax
under this part:
(1) income or losses, and related gross receipts,
occurring before January 1, 2005, may not be considered for
purposes of the earned surplus component, or for apportionment
purposes for the taxable capital component;
(2) a corporation subject to the franchise tax on
January 1, 2006, for which January 1, 2006, is not the beginning
date, shall file an annual report due May 15, 2006, based on the
period:
(A) beginning on the later of:
(i) January 1, 2005; or
(ii) the date the corporation was organized
in this state or, if a foreign corporation, the date it began doing
business in this state; and
(B) ending on the date the corporation's last
accounting period ends in 2005 or, if none, on December 31, 2005;
and
(3) a corporation subject to the earned surplus
component of the franchise tax at any time after August 31, 2005,
and before January 1, 2006, but not subject to the earned surplus
component on January 1, 2006, shall file a final report computed on
net taxable earned surplus, for the privilege of doing business at
any time after August 31, 2005, and before January 1, 2006, based on
the period:
(A) beginning on the later of:
(i) January 1, 2005; or
(ii) the date the corporation was organized
in this state or, if a foreign corporation, the date it began doing
business in this state; and
(B) ending on the date the corporation became no
longer subject to the earned surplus component of the tax.
SECTION 11E.05. This part takes effect September 1, 2005,
and applies to reports originally due on or after that date.
ARTICLE 12. RESTRICTIONS ON PROPERTY
VALUATION AND STATE AID TO
SCHOOL DISTRICTS
SECTION 12.01. Section 11.431(a), Tax Code, is amended to
read as follows:
(a) The chief appraiser shall accept and approve or deny an
application for a residence homestead exemption after the deadline
for filing the application [it] has passed if the application [it]
is filed not later than [one year after] the delinquency date for
the taxes on the homestead.
SECTION 12.02. Section 25.25(c), Tax Code, is amended to
read as follows:
(c) The appraisal review board, on motion of the chief
appraiser or of a property owner, may direct by written order
changes in the appraisal roll for any of the five preceding years if
the property is real property and may direct by written order
changes in the appraisal roll for either or both of the two
preceding years if the property is personal property to correct:
(1) clerical errors that affect a property owner's
liability for a tax imposed in that tax year;
(2) multiple appraisals of a property in that tax
year; or
(3) the inclusion of property that does not exist in
the form or at the location described in the appraisal roll.
SECTION 12.03. Section 42.253(i), Education Code, is
amended to read as follows:
(i) Not later than March 1 each year, the commissioner shall
determine the actual amount of state funds to which each school
district is entitled under the allocation formulas in this chapter
for the current school year and shall compare that amount with the
amount of the warrants issued to each district for that year.
Except as provided by Section 42.257(b), if [If] the amount of the
warrants differs from the amount to which a district is entitled
because of variations in the district's tax rate, student
enrollment, or taxable value of property, the commissioner shall
adjust the district's entitlement for the next fiscal year
accordingly.
SECTION 12.04. Section 42.257(b), Education Code, is
amended to read as follows:
(b) If the district would have received a greater amount
from the foundation school fund for the applicable school year
using the adjusted value, the commissioner shall add the difference
to subsequent distributions to the district from the foundation
school fund. If the final determination is made after the last day
of the state fiscal year corresponding to the tax year for which the
determination is made, the commissioner shall add one-fifth of the
difference to the September payment to the district of the current
year entitlement from the foundation school fund for each of the
next five years. An adjustment does not affect the local fund
assignment of any other district.
SECTION 12.05. Section 42.259(f), Education Code, is
amended to read as follows:
(f) Except as provided by Section 42.257(b) or by Subsection
(c)(8) or (d)(3) of this section, any previously unpaid additional
funds from prior years owed to a district shall be paid to the
district together with the September payment of the current year
entitlement.
SECTION 12.06. 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. The [Except as otherwise provided by this subsection,
the] request for audit must be filed with the comptroller not later
than the first [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.
SECTION 12.07. (a) The change in law made by this article
to Section 11.431, Tax Code, applies only to an application for a
residence homestead exemption for the 2005 and subsequent tax
years. Section 11.431, Tax Code, as that section existed
immediately before the effective date of this article, applies to
an application for a residence homestead exemption for the 2004 tax
year and is continued in effect for that purpose.
(b) The change in law made by this article to Section 25.25,
Tax Code, does not affect a motion filed under that section before
the effective date of this article.
SECTION 12.08. This article takes effect July 1, 2005, if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
effect on that date, this article takes effect September 1, 2005.
ARTICLE 13. MISCELLANEOUS FEES AND FUNDS
PART A. TRANSFERRING CERTAIN TOBACCO SETTLEMENT PROCEEDS INTO
DEDICATED GENERAL REVENUE ACCOUNTS
SECTION 13A.01. Subchapter G, Chapter 403, Government Code,
is amended by adding Sections 403.108 and 403.1081-403.1083 to read
as follows:
Sec. 403.108. SECONDARY HEALTH ACCOUNT FOR HIGHER
EDUCATION. (a) In this section:
(1) "Earnings account" means the account described by
Subsection (d).
(2) "Secondary account" means the secondary health
account for higher education.
(b) The secondary account and the earnings account are
dedicated accounts in the general revenue fund.
(c) The secondary account consists of:
(1) money transferred to the account at the direction
of the legislature; and
(2) donations to the account.
(d) The earnings account consists of the earnings received
from investment of the assets in the secondary account. The
comptroller shall periodically transfer those earnings from the
secondary account to the earnings account.
(e) Money in the secondary account may be used only for a
purpose described by Subsection (d) or (f).
(f) The comptroller shall manage and invest assets in the
secondary account in authorized investments under Section 404.024.
Any expenses incurred by the comptroller in managing and investing
assets in the secondary account shall be paid from the account.
(g) Money in the earnings account may be appropriated only
for a purpose specified in and subject to any conditions and
reporting requirements prescribed by Subchapter A, Chapter 63,
Education Code, for the use of money from the permanent health fund
for higher education.
(h) An institution of higher education that has accepted a
gift under former Subchapter I, Chapter 51, Education Code, that
was conditioned on the institution's receipt of state matching
funds from the eminent scholars fund may use money the institution
receives under this section to provide the state matching funds and
treat the money as if it were a distribution to the institution from
the eminent scholars fund for purposes of the former Subchapter I.
(i) An institution of higher education that receives a
distribution from the earnings account shall include in the report
required by Section 63.004, Education Code:
(1) the total amount of money the institution received
from the account;
(2) the purpose for which the money was used; and
(3) any other information required by the Legislative
Budget Board.
(j) Section 404.071 does not apply to the secondary account
or the earnings account.
Sec. 403.1081. SECONDARY ACCOUNTS FOR EACH INSTITUTION OF
HIGHER EDUCATION. (a) In this section:
(1) "Earnings account" means an account described by
Subsection (e).
(2) "Secondary account" means the secondary accounts
described by Subsection (b).
(b) In addition to the permanent endowment funds created by
Section 63.101, Education Code, there is a secondary account for
the benefit of each institution of higher education or group of
related components of an institution of higher education listed in
Section 63.101(a), Education Code.
(c) Each secondary account and earnings account is a
dedicated account in the general revenue fund.
(d) A secondary account consists of:
(1) money transferred to the account at the direction
of the legislature; and
(2) donations to the account.
(e) An earnings account for an institution or group of
related components of an institution consists of the earnings
received from investment of the assets in the corresponding
secondary account for the institution or group of components. The
comptroller shall periodically transfer those earnings from the
secondary account to the earnings account.
(f) Money in a secondary account may be used only for a
purpose described by Subsection (e) or (g).
(g) The comptroller shall manage and invest assets in a
secondary account in authorized investments under Section 404.024.
Any expenses incurred by the comptroller in managing and investing
assets in a secondary account shall be paid from the account.
(h) Money in an earnings account may be appropriated only
for a purpose specified in and subject to any conditions and
reporting requirements prescribed by Subchapter B, Chapter 63,
Education Code, for the use of money from the corresponding
permanent endowment fund established by that subchapter.
(i) An institution of higher education that has accepted a
gift under former Subchapter I, Chapter 51, Education Code, that
was conditioned on the institution's receipt of state matching
funds from the eminent scholars fund may use money the institution
receives under this section to provide the state matching funds and
treat the money as if it were a distribution to the institution from
the eminent scholars fund for purposes of the former Subchapter I.
(j) An institution of higher education that receives an
appropriation from an earnings account shall include in the report
required by Section 63.103, Education Code:
(1) the total amount of money the institution received
from the account;
(2) the purpose for which the money was used; and
(3) any other information required by the Legislative
Budget Board.
(k) Section 404.071 does not apply to a secondary account or
an earnings account.
Sec. 403.1082. SECONDARY ACCOUNT FOR HIGHER EDUCATION
NURSING, ALLIED HEALTH, AND OTHER HEALTH-RELATED PROGRAMS. (a) In
this section:
(1) "Earnings account" means the account described by
Subsection (d).
(2) "Secondary account" means the secondary account
for higher education nursing, allied health, and other
health-related programs.
(b) The secondary account and the earnings account are
dedicated accounts in the general revenue fund.
(c) The secondary account consists of:
(1) money transferred to the account at the direction
of the legislature; and
(2) donations to the account.
(d) The earnings account consists of the earnings received
from investment of the assets in the secondary account. The
comptroller shall periodically transfer those earnings from the
secondary account to the earnings account.
(e) Money in the secondary account may be used only for a
purpose described by Subsection (d) or (f).
(f) The comptroller shall manage and invest assets in the
secondary account in authorized investments under Section 404.024.
Any expenses incurred by the comptroller in managing and investing
assets in the secondary account shall be paid from the account.
(g) Money in the earnings account may be appropriated only
for a purpose specified in and subject to any conditions and
reporting requirements prescribed by Subchapter C, Chapter 63,
Education Code, for the use of money from the permanent fund for
higher education nursing, allied health, and other health-related
programs.
(h) The Texas Higher Education Coordinating Board shall
include in the report required by Section 63.203, Education Code:
(1) the name of each institution that received a grant
from the earnings account;
(2) the purpose for which the grant was used; and
(3) any additional information required by the
Legislative Budget Board.
(i) Section 404.071 does not apply to the secondary account
or the earnings account.
Sec. 403.1083. SECONDARY ACCOUNT FOR MINORITY HEALTH
RESEARCH AND EDUCATION. (a) In this section:
(1) "Earnings account" means the account described by
Subsection (d).
(2) "Secondary account" means the secondary account
for minority health research and education.
(b) The secondary account and the earnings account are
dedicated accounts in the general revenue fund.
(c) The secondary account consists of:
(1) money transferred to the account at the direction
of the legislature; and
(2) donations to the account.
(d) The earnings account consists of the earnings received
from investment of the assets in the secondary account. The
comptroller shall periodically transfer those earnings from the
secondary account to the earnings account.
(e) Money in the secondary account may be used only for a
purpose described by Subsection (d) or (f).
(f) The comptroller shall manage and invest assets in the
secondary account in authorized investments under Section 404.024.
Any expenses incurred by the comptroller in managing and investing
assets in the secondary account shall be paid from the account.
(g) Money in the earnings account may be appropriated only
to the Texas Higher Education Coordinating Board for the purpose of
providing grants as specified by Section 63.302(c), Education Code,
for money from the permanent fund for minority health research and
education.
(h) The Texas Higher Education Coordinating Board shall
report regarding the money received under this section in the
manner required by Section 63.302(f), Education Code, and shall
include in the report:
(1) the total amount distributed under this section;
(2) the name of each institution that received a
grant;
(3) the purpose of each grant, including a description
of any partnership formed; and
(4) any additional information required by the
Legislative Budget Board.
(i) Section 404.071 does not apply to the secondary account
or the earnings account.
SECTION 13A.02. Section 403.1069, Government Code, is
amended to read as follows:
Sec. 403.1069. REPORTING REQUIREMENT. The Department of
State Health Services [department] shall provide a report to the
Legislative Budget Board on the permanent funds established under
this subchapter from which the department may receive an
appropriation of the available earnings [to the Legislative Budget
Board] no later than November 1 of each year. The report shall
include the total amount of money distributed from each fund, the
purpose for which the money was used, and any additional
information that may be requested by the Legislative Budget Board.
SECTION 13A.03. (a) On November 1, 2006, all amounts held
in the following funds shall be transferred, in the estimated
amount listed, to the accounts established under Sections 403.108,
403.1081, 403.1082, and 403.1083, Government Code, as added by this
part, as specified by this section: Fund Number Fund Name Amount
0810 Permanent Health Fund for
Higher Education $376,600,000
0811 Permanent Endowment Fund for Health Related Institutions -
University of Texas Health
Science Center at San Antonio $215,200,000
0812 Permanent Endowment Fund for
Health Related Institutions -
University of Texas M.D.
Anderson Cancer Center $107,600,000
0813 Permanent Endowment Fund for
Health Related Institutions -
University of Texas
Southwestern Medical
Center at Dallas $53,800,000
0814 Permanent Endowment Fund for
Health Related Institutions -
University of Texas Medical
Branch at Galveston $26,900,000
0815 Permanent Endowment Fund for
Health Related Institutions -
University of Texas Health
Science Center at Houston $26,900,000
0816 Permanent Endowment Fund for
Health Related Institutions -
University of Texas Health
Science Center at Tyler $26,900,000
0817 Permanent Endowment Fund for
Health Related Institutions -
University of Texas at El Paso $26,900,000
0818 Permanent Endowment Fund for
Health Related Institutions -
Texas A&M University Health
Science Center $25,600,000
0819 Permanent Endowment Fund for
Health Related Institutions -
University of North Texas
Health Science Center at
Fort Worth $25,400,000
0820 Permanent Endowment Fund for
Health Related Institutions -
Components of Texas Tech
University Health Science
Center in El Paso $26,500,000
0821 Permanent Endowment Fund for
Health Related Institutions -
Components of Texas Tech
University Health Science
Center other than El Paso $26,500,000
0822 Permanent Endowment Fund for
Health Related Institutions -
University of Texas Regional
Academic Health Center $21,500,000
0823 Permanent Endowment Fund for
Health Related Institutions -
Baylor College of Medicine $24,400,000
0824 Permanent Fund for Higher
Education Nursing, Allied
Health and Other Health
Related Programs $44,000,000
0825 Permanent Fund for Minority
Health Research and Education $24,400,000
Informational Total: $1,079,100,000
(b) Amounts transferred from the Permanent Health Fund for
Higher Education shall be deposited to the credit of the secondary
health account for higher education established under Section
403.108, Government Code, as added by this part.
(c) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of Texas Health
Science Center at San Antonio shall be deposited to the credit of
the secondary account established for the benefit of The University
of Texas Health Science Center at San Antonio under Section
403.1081, Government Code, as added by this part.
(d) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of Texas M. D.
Anderson Cancer Center shall be deposited to the credit of the
secondary account established for the benefit of The University of
Texas M. D. Anderson Cancer Center under Section 403.1081,
Government Code, as added by this part.
(e) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of Texas Southwestern
Medical Center at Dallas shall be deposited to the credit of the
secondary account established for the benefit of The University of
Texas Southwestern Medical Center at Dallas under Section 403.1081,
Government Code, as added by this part.
(f) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of Texas Medical
Branch at Galveston shall be deposited to the credit of the
secondary account established for the benefit of The University of
Texas Medical Branch at Galveston under Section 403.1081,
Government Code, as added by this part.
(g) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of Texas Health
Science Center at Houston shall be deposited to the credit of the
secondary account established for the benefit of The University of
Texas Health Science Center at Houston under Section 403.1081,
Government Code, as added by this part.
(h) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of Texas Health
Science Center at Tyler shall be deposited to the credit of the
secondary account established for the benefit of The University of
Texas Health Science Center at Tyler under Section 403.1081,
Government Code, as added by this part.
(i) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of Texas at El Paso
shall be deposited to the credit of the secondary account
established for the benefit of The University of Texas at El Paso
under Section 403.1081, Government Code, as added by this part.
(j) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - Texas A&M University Health
Science Center shall be deposited to the credit of the secondary
account established for the benefit of The Texas A&M University
Health Science Center under Section 403.1081, Government Code, as
added by this part.
(k) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of North Texas Health
Science Center at Fort Worth shall be deposited to the credit of the
secondary account established for the benefit of the University of
North Texas Health Science Center at Fort Worth under Section
403.1081, Government Code, as added by this part.
(l) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - Components of Texas Tech
University Health Sciences Center in El Paso shall be deposited to
the credit of the secondary account established for the benefit of
the components of Texas Tech University Health Sciences Center in
El Paso under Section 403.1081, Government Code, as added by this
part.
(m) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - Components of Texas Tech
University Health Sciences Center other than El Paso shall be
deposited to the credit of the secondary account established for
the benefit of the components of Texas Tech University Health
Sciences Center other than El Paso under Section 403.1081,
Government Code, as added by this part.
(n) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - University of Texas Regional
Academic Health Center shall be deposited to the credit of the
secondary account established for the benefit of The University of
Texas Regional Academic Health Center under Section 403.1081,
Government Code, as added by this part.
(o) Amounts transferred from the Permanent Endowment Fund
for Health Related Institutions - Baylor College of Medicine shall
be deposited to the credit of the secondary account established for
the benefit of Baylor College of Medicine under Section 403.1081,
Government Code, as added by this part.
(p) Amounts transferred from the Permanent Fund for Higher
Education Nursing, Allied Health, and Other Health Related Programs
shall be deposited to the credit of the secondary account for higher
education nursing, allied health, and other health-related
programs established under Section 403.1082, Government Code, as
added by this part.
(q) Amounts transferred from the Permanent Fund for
Minority Health Research and Education shall be deposited to the
credit of the secondary account for minority health research and
education established under Section 403.1083, Government Code, as
added by this part.
SECTION 13A.04. (a) The transfers to accounts in the
general revenue fund made by this part may not result in a reduction
in the amount available for distribution from those accounts, and
the same amount that would have been distributed from the permanent
funds but for the transfers made by this part shall be appropriated
and distributed from the applicable accounts created by this part.
If the earnings from the secondary account that are transferred to
the earnings account are inadequate to make a distribution of the
same amount that would have been distributed from the permanent
funds, to the extent that the difference is solely the result of an
investment policy other than total return, the comptroller shall
transfer the difference to the applicable earnings account from the
unobligated portion of general revenue.
(b) The comptroller of public accounts shall determine the
amount of any loss to the Permanent Health Fund for Higher Education
and other funds administered by The University of Texas System as a
result of the transfer to general revenue under this part. On
August 31, 2007, the comptroller shall transfer from general
revenue to the applicable secondary account created by this part,
an amount equal to the amount of the loss. In determining the
amount of the loss, the comptroller shall consider the difference
in the rate of return on investment of that secondary account and
the rate of return over the preceding three years on investment of
the Permanent University Fund.
(c) Notwithstanding any other provision of this part, the
total of distributions under Subsections (a) and (b) of this
section from the accounts created by this part, plus transfers
under Subsection (b) of this section, may not exceed $65 million for
any fiscal year.
SECTION 13A.05. This part takes effect September 1, 2005.
PART B. TEXAS MOBILITY FUND
SECTION 13B.01. Subchapter M, Chapter 201, Transportation
Code, is amended by adding Section 201.9471 to read as follows:
Sec. 201.9471. TEMPORARY DISPOSITION OF MONEY ALLOCATED TO
FUND. (a) Notwithstanding Sections 521.058, 521.313, 521.3466,
521.427, 522.029, 524.051, and 724.046, to the extent that those
sections allocate money to the Texas mobility fund, in state fiscal
year 2006 the comptroller shall deposit that money to the credit of
the general revenue fund instead of to the credit of the Texas
mobility fund.
(b) Notwithstanding Sections 521.313, 521.3466, 521.427,
522.029, 524.051, and 724.046, to the extent that those sections
allocate money to the Texas mobility fund, in state fiscal year 2007
the comptroller shall deposit that money to the credit of the
general revenue fund instead of to the credit of the Texas mobility
fund.
(c) This section expires January 1, 2008.
SECTION 13B.02. This part takes effect September 1, 2005.
PART C. TELECOMMUNICATIONS INFRASTRUCTURE FUND
SECTION 13C.01. Section 57.048, Utilities Code, is amended
by adding Subsections (f)-(i) to read as follows:
(f) Notwithstanding any other provision of this title, a
certificated telecommunications utility may recover from the
utility's customers an assessment imposed on the utility under this
subchapter after the total amount deposited to the credit of the
fund, excluding interest and loan repayments, is equal to $1.5
billion, as determined by the comptroller. A certificated
telecommunications utility may recover only the amount of the
assessment imposed after the total amount deposited to the credit
of the fund, excluding interest and loan repayments, is equal to
$1.5 billion, as determined by the comptroller. The utility may
recover the assessment through a monthly billing process.
(g) The comptroller shall publish in the Texas Register the
date on which the total amount deposited to the credit of the fund,
excluding interest and loan repayments, is equal to $1.5 billion.
(h) Not later than February 15 of each year, a certificated
telecommunications utility that wants to recover the assessment
under Subsection (f) shall file with the commission an affidavit or
affirmation stating the amount that the utility paid to the
comptroller under this section during the previous calendar year
and the amount the utility recovered from its customers in
cumulative payments during that year.
(i) The commission shall maintain the confidentiality of
information the commission receives under this section that is
claimed to be confidential for competitive purposes. The
confidential information is exempt from disclosure under Chapter
552, Government Code.
SECTION 13C.02. Section 57.0485, Utilities Code, is amended
to read as follows:
Sec. 57.0485. ALLOCATION OF REVENUE [ACCOUNTS]. [(a)] The
comptroller shall deposit [50 percent of] the money collected by
the comptroller under Section 57.048 to the credit of the general
revenue fund [public schools account in the fund. The comptroller
shall deposit the remainder of the money collected by the
comptroller under Section 57.048 to the credit of the qualifying
entities account in the fund.
[(b) Interest earned on money in an account shall be
deposited to the credit of that account].
SECTION 13C.03. Section 57.051, Utilities Code, is amended
to read as follows:
Sec. 57.051. SUNSET PROVISION. The Telecommunications
Infrastructure Fund [Board] is subject to Chapter 325, Government
Code (Texas Sunset Act). Unless continued in existence as provided
by that chapter, [the board is abolished and] this subchapter
expires September 1, 2011 [2005].
SECTION 13C.04. Sections 57.043 and 57.048(c) and (d),
Utilities Code, are repealed.
SECTION 13C.05. If, on the day before the effective date of
this part, the assessment prescribed by Section 57.048, Utilities
Code, is imposed at a rate of less than 1.25 percent, the
comptroller shall, on the effective date of this part, reset the
rate of the assessment to 1.25 percent.
SECTION 13C.06. This part takes effect July 1, 2005, if this
Act receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this part takes effect September 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, for a
refund under this chapter [Subsections (b) and (c) in a
comptroller's final decision on a claim for refund or in an audit],
interest is at the rate that is the lesser of the annual rate of
interest earned on deposits in the state treasury during December
of the previous calendar year, as determined by the comptroller, or
the rate set in Section 111.060, and accrues on the amount found to
be erroneously paid for a period:
(1) beginning on the later of 60 days after the date of
payment or the due date of the tax report; 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 [granted for a
report period due on or after January 1, 2000, the rate of interest
is 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. AUTHORIZATION OF CERTAIN NONPROFIT ORGANIZATIONS TO
CONDUCT BINGO
SECTION 15.01. 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, or
educational functions.
SECTION 15.02. 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 16. REIMBURSEMENT OF EXCESSIVE OR
UNFAIRLY DISCRIMINATORY RATES CHARGED BY CERTAIN INSURERS
SECTION 16.01. 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 prime rate for the calendar year in which the
order is issued plus 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 insurer first charged the excessive or
unfairly discriminatory rate, as determined by the commissioner,
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 a final 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 17. EFFECTIVE DATE
SECTION 17.01. 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.
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