79R18672 E


By:  Ogden                                                        S.B. No. 1863

Substitute the following for S.B. No. 1863:                                   

By:  Pitts                                                    C.S.S.B. No. 1863


A BILL TO BE ENTITLED
AN ACT
relating to certain fiscal matters affecting governmental entities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. REGISTRATION FEE FOR CERTAIN LOBBYISTS
SECTION 1.01. Subsection (c), Section 305.005, Government Code, is amended to read as follows: (c) The registration fee and registration renewal fee are: (1) $100 for a registrant employed by an organization exempt from federal income tax under Section 501(c)(3) or 501(c)(4), Internal Revenue Code of 1986; or (2) $1,000 [$300] for any other registrant. SECTION 1.02. This article takes effect December 1, 2005.
ARTICLE 2. FEES FOR CERTAIN INSPECTIONS CONDUCTED
BY THE COMMISSION ON JAIL STANDARDS
SECTION 2.01. Section 511.0091, Government Code, is amended by adding Subsection (c-1) and amending Subsection (d) to read as follows: (c-1) In addition to the other fees authorized by this section, the commission may set and collect a reasonable fee to cover the cost of performing any reinspection of a municipal or county jail that is conducted by the commission: (1) following a determination by the commission that the jail is not in compliance with minimum standards; (2) in response to a request by the operator of the jail; and (3) before the operator of the jail has taken actions as necessary to ensure that the jail is in compliance with minimum standards. (d) All money paid to the commission under this chapter is subject to Subchapter F, Chapter 404. Fees collected under Subsection (c-1) shall be deposited to the credit of a special account in the general revenue fund to be appropriated only to pay costs incurred by the commission in performing services under this section. SECTION 2.02. This article takes effect September 1, 2005.
ARTICLE 3. CERTAIN AUDITS OF STATE AGENCY EXPENDITURES
SECTION 3.01. Subtitle C, Title 10, Government Code, is amended by adding Chapter 2115 to read as follows:
CHAPTER 2115. RECOVERY OF CERTAIN STATE AGENCY OVERPAYMENTS
Sec. 2115.001. DEFINITIONS. In this chapter: (1) "Overpayment" includes a duplicate payment made to a vendor for a single invoice and a payment made to a vendor: (A) when an available discount from the vendor was not applied; (B) for a late payment penalty that was improperly applied by the vendor; (C) for shipping costs that were computed incorrectly or incorrectly included in an invoice; (D) for state sales tax; or (E) for a good or service the vendor did not provide. (2) "State agency" means a department, commission, board, office, or other agency, including a university system or an institution of higher education other than a public junior college, that: (A) is in the executive branch of state government; (B) is created by statute; and (C) does not have statutory geographical boundaries limited to a part of the state. Sec. 2115.002. CONTRACT CONSULTANTS FOR RECOVERY AUDITS FOR CERTAIN OVERPAYMENTS. (a) The comptroller shall contract with one or more consultants to conduct recovery audits of payments made by state agencies to vendors. The audits must be designed to detect and recover overpayments to the vendors and to recommend improved state agency accounting operations. (b) A contract under this section: (1) may provide for reasonable compensation for services provided under the contract, including compensation determined by the application of a specified percentage of the total amount recovered because of the consultant's audit activities or recommendations as a fee for services; (2) may permit or require the consultant to pursue a judicial action in a court inside or outside this state to recover an overpaid amount; and (3) to allow time for the performance of existing state payment auditing procedures, may not allow a recovery audit of a payment during the 180-day period after the date the payment was made. (c) The comptroller or a state agency whose payments are being audited may provide a person acting under a contract authorized by this section with any confidential information in the custody of the comptroller or state agency that is necessary for the performance of the audit or the recovery of an overpayment, to the extent the comptroller and state agency are not prohibited from sharing the information under an agreement with another state or the federal government. A person acting under a contract authorized by this section, and each employee or agent of the person, is subject to all prohibitions against the disclosure of confidential information obtained from the state in connection with the contract that apply to the comptroller or applicable state agency or an employee of the comptroller or applicable state agency. A person acting under a contract authorized by this section or an employee or agent of the person who discloses confidential information in violation of a prohibition made applicable to the person under this subsection is subject to the same sanctions and penalties that would apply to the comptroller or applicable state agency or an employee of the comptroller or applicable state agency for that disclosure. Sec. 2115.003. STATE AGENCIES SUBJECT TO MANDATORY RECOVERY AUDITS. (a) The comptroller shall require that recovery audits be performed on the payments to vendors made by each state agency that has total expenditures during a state fiscal biennium in an amount that exceeds $100 million. Each state agency described by this subsection shall provide the recovery audit consultant with all information necessary for the audit. (b) The comptroller may exempt from the mandatory recovery audit process a state agency that has a low proportion of its expenditures made to vendors, according to criteria the comptroller adopts by rule after consideration of the likely costs and benefits of performing recovery audits for agencies that make relatively few or small payments to vendors. Sec. 2115.004. PAYMENT TO CONTRACTORS. (a) A state agency shall pay, from recovered money appropriated for the purpose, the recovery audit consultant responsible for obtaining for the agency a reimbursement from a vendor. (b) A state agency shall expend or return to the federal government any federal money that is recovered through a recovery audit conducted under this chapter. The state agency shall expend or return the federal money in accordance with the rules of the federal program through which the agency received the federal money. Sec. 2115.005. FORWARDING REPORTS. (a) The comptroller shall provide copies, including electronic form copies, of any reports received from a consultant contracting under Section 2115.002 to: (1) the governor; (2) the state auditor's office; and (3) the Legislative Budget Board. (b) The comptroller shall provide the copies required by Subsection (a) not later than the seventh day after the date the comptroller receives the consultant's report. (c) Not later than January 1 of each odd-numbered year, the comptroller shall issue a report to the legislature summarizing the contents of all reports received under this chapter during the state fiscal biennium ending August 31 of the previous year. SECTION 3.02. The comptroller of public accounts shall adopt rules under Chapter 2115, Government Code, as added by this article, in a timely manner so that the comptroller may begin contracting with a consultant under that chapter not later than January 1, 2006.
ARTICLE 4. COLLECTION OF MOTOR FUELS TAXES
SECTION 4.01. Subdivisions (20) and (43), Section 162.001, Tax Code, are amended to read as follows: (20) "Distributor" means a person who acquires motor fuel from a licensed supplier, permissive supplier, or another licensed distributor and who makes sales at wholesale and whose activities may also include sales at retail. The term includes a person engaged in the tax-free sale of dyed diesel fuel to marine vessels. (43) "Motor fuel transporter" means a person who transports gasoline, diesel fuel, or gasoline blended fuel for hire outside the bulk transfer/terminal system by means of a transport vehicle, a railroad tank car, or a marine vessel. SECTION 4.02. Subsection (b), Section 162.004, Tax Code, is amended to read as follows: (b) The shipping document issued by the terminal operator or operator of a bulk plant shall contain the following information and any other information required by the comptroller: (1) the terminal control number of the terminal or physical address of the bulk plant from which the motor fuel was received; (2) the name [and license number] of the purchaser; (3) the date the motor fuel was loaded; (4) the net gallons loaded, or the gross gallons loaded if the fuel was purchased from a bulk plant; (5) the destination state of the motor fuel, as represented by the purchaser of the motor fuel or the purchaser's agent; and (6) a description of the product being transported. SECTION 4.03. Subsection (a), Section 162.016, Tax Code, is amended to read as follows: (a) A person may not import motor fuel to a destination in this state or export motor fuel to a destination outside this state by any means unless the person possesses a shipping document for that fuel created by the terminal or bulk plant at which the fuel was received. The shipping document must include: (1) the name and physical address of the terminal or bulk plant from which the motor fuel was received for import or export; (2) the name [and federal employer identification number, or the social security number if the employer identification number is not available,] of the carrier transporting the motor fuel; (3) the date the motor fuel was loaded; (4) the type of motor fuel; (5) the number of gallons: (A) in temperature-adjusted gallons if purchased from a terminal for export or import; or (B) in temperature-adjusted gallons or in gross gallons if purchased from a bulk plant; (6) the destination of the motor fuel as represented by the purchaser of the motor fuel and the number of gallons of the fuel to be delivered, if delivery is to only one state; (7) the name[, federal employer identification number, license number, and physical address] of the purchaser of the motor fuel; (8) the name of the person responsible for paying the tax imposed by this chapter, as given to the terminal by the purchaser if different from the licensed supplier or distributor; and (9) any other information that, in the opinion of the comptroller, is necessary for the proper administration of this chapter. SECTION 4.04. Subsection (d), Section 162.113, Tax Code, is amended to read as follows: (d) The supplier or permissive supplier shall [has the right], after notifying the comptroller of the licensed distributor's or licensed importer's failure to remit taxes under this section, [to] terminate the ability of the licensed distributor or licensed importer to defer the payment of gasoline tax. The supplier or permissive supplier shall reinstate without delay the right of the licensed distributor or licensed importer to defer the payment of gasoline tax after the comptroller provides to the supplier or permissive supplier notice that the licensed distributor or licensed importer is in good standing with the comptroller for the purposes of the gasoline tax imposed under this subchapter. SECTION 4.05. Section 162.115, Tax Code, is amended by adding Subsection (m-1) to read as follows: (m-1) In addition to the records specifically required by this section, a license holder shall keep any other record required by the comptroller. SECTION 4.06. Subsections (a) and (d), Section 162.116, Tax Code, are amended to read as follows: (a) The monthly return and supplements of each supplier and permissive supplier shall contain for the period covered by the return: (1) [the number of net gallons of gasoline received by the supplier or permissive supplier during the month, sorted by product code, seller, point of origin, destination state, carrier, and receipt date; [(2)] the number of net gallons of gasoline removed at a terminal rack during the month from the account of the supplier, sorted by product code, person receiving the gasoline, terminal code, and carrier; (2) [(3)] the number of net gallons of gasoline removed during the month for export, sorted by product code, person receiving the gasoline, terminal code, destination state, and carrier; (3) [(4)] the number of net gallons of gasoline removed during the month from a terminal located in another state for conveyance to this state, as indicated on the shipping document for the gasoline, sorted by product code, person receiving the gasoline, terminal code, and carrier; (4) [(5)] the number of net gallons of gasoline the supplier or permissive supplier sold during the month in transactions exempt under Section 162.104, sorted by [product code, carrier,] purchaser[, and terminal code; [(6) the number of net gallons of gasoline sold in the bulk transfer/terminal system in this state to any person not holding a supplier's or permissive supplier's license]; and (5) [(7)] any other information required by the comptroller. (d) For purposes of Subsection (c), all payments or credits in reduction of a customer's account must be applied ratably between motor fuels and other goods sold to the customer, and the credit allowed will be the tax on the number of gallons represented by the motor fuel portion of the credit. The comptroller may not require a supplier or permissive supplier to remit from a payment or credit in reduction of a customer's account any tax for which the supplier or permissive supplier was allowed to take a credit. SECTION 4.07. Section 162.118, Tax Code, is amended to read as follows: Sec. 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S RETURN. The monthly return and supplements of each distributor shall contain for the period covered by the return: (1) the number of net gallons of gasoline received by the distributor during the month, sorted by product code and[,] seller[, point of origin, destination state, carrier, and receipt date]; (2) the number of net gallons of gasoline removed at a terminal rack by the distributor during the month, sorted by product code, seller, and terminal code[, and carrier]; (3) the number of net gallons of gasoline removed by the distributor during the month for export, sorted by product code, terminal code, bulk plant address, destination state, and carrier; (4) the number of net gallons of gasoline removed by the distributor during the month from a terminal located in another state for conveyance to this state, as indicated on the shipping document for the gasoline, sorted by product code, seller, terminal code, bulk plant address, and carrier; (5) the number of net gallons of gasoline the distributor sold during the month in transactions exempt under Section 162.104, sorted by product code and purchaser; and (6) any other information required by the comptroller. SECTION 4.08. Section 162.123, Tax Code, is amended to read as follows: Sec. 162.123. INFORMATION REQUIRED ON BLENDER'S RETURN. The monthly return and supplements of each blender shall contain for the period covered by the return: (1) [the number of net gallons of gasoline received by the blender during the month, sorted by product code, seller, point of origin, carrier, and receipt date; [(2)] the number of net gallons of product blended with gasoline during the month, sorted by product code, type of blending agent if no product code exists, seller, and carrier; [(3) the number of net gallons of blended gasoline sold during the month and the license number or name and address of the entity receiving the blended gasoline;] and (2) [(4)] any other information required by the comptroller. SECTION 4.09. Section 162.127, Tax Code, is amended by adding Subsection (g) to read as follows: (g) The comptroller shall issue a refund warrant to a distributor not later than the 60th day after the date the comptroller receives a valid refund claim from the distributor. If the comptroller does not issue the refund warrant by that date, the amount of the refund draws interest at the rate provided by Section 111.060 beginning on the 61st day after the date the comptroller receives the valid refund claim and ending on the date the comptroller issues the refund warrant. SECTION 4.10. Section 162.206, Tax Code, is amended by amending Subsection (c) and adding Subsections (c-1) and (h-1) to read as follows: (c) A person may not make a tax-free purchase and a licensed supplier or distributor may not make a tax-free sale to a purchaser of any dyed diesel fuel under this section using a signed statement[: [(1) for the purchase or the sale of more than 7,400 gallons of dyed diesel fuel in a single delivery; or [(2)] in a calendar month in which the person has previously purchased from all sources or in which the licensed supplier has previously sold to that purchaser more than: (1) [(A)] 10,000 gallons of dyed diesel fuel; (2) [(B)] 25,000 gallons of dyed diesel fuel if the purchaser stipulates in the signed statement that all of the fuel will be consumed by the purchaser in the original production of, or to increase the production of, oil or gas and furnishes the supplier with a letter of exception issued by the comptroller; or (3) [(C)] 25,000 gallons of dyed diesel fuel if the purchaser stipulates in the signed statement that all of the fuel will be consumed by the purchaser in agricultural off-highway equipment. (c-1) The monthly limitations prescribed by Subsection (c) apply regardless of whether the dyed diesel fuel is purchased in a single transaction during that month or in multiple transactions during that month. (h-1) For purposes of this section, the purchaser is considered to have furnished the signed statement to the licensed supplier or distributor if the supplier or distributor verifies that the purchaser has an end user number issued by the comptroller. The licensed supplier or distributor shall use the comptroller's Internet website or other materials provided or produced by the comptroller to verify this information. SECTION 4.11. Subsection (d), Section 162.214, Tax Code, is amended to read as follows: (d) The supplier or permissive supplier shall [has the right], after notifying the comptroller of the licensed distributor's or licensed importer's failure to remit taxes under this section, [to] terminate the ability of the licensed distributor or licensed importer to defer the payment of diesel fuel tax. The supplier or permissive supplier shall reinstate without delay the right of the licensed distributor or licensed importer to defer the payment of diesel fuel tax after the comptroller provides to the supplier or permissive supplier notice that the licensed distributor or licensed importer is in good standing with the comptroller for the purposes of diesel fuel tax imposed under this subchapter. SECTION 4.12. Section 162.216, Tax Code, is amended by adding Subsection (m-1) to read as follows: (m-1) In addition to the records specifically required by this section, a license holder shall keep any other record required by the comptroller. SECTION 4.13. Subsections (a) and (d), Section 162.217, Tax Code, are amended to read as follows: (a) The monthly return and supplements of each supplier and permissive supplier shall contain for the period covered by the return: (1) [the number of net gallons of diesel fuel received by the supplier or permissive supplier during the month, sorted by product code, seller, point of origin, destination state, carrier, and receipt date; [(2)] the number of net gallons of diesel fuel removed at a terminal rack during the month from the account of the supplier, sorted by product code, person receiving the diesel fuel, terminal code, and carrier; (2) [(3)] the number of net gallons of diesel fuel removed during the month for export, sorted by product code, person receiving the diesel fuel, terminal code, destination state, and carrier; (3) [(4)] the number of net gallons of diesel fuel removed during the month from a terminal located in another state for conveyance to this state, as indicated on the shipping document for the diesel fuel, sorted by product code, person receiving the diesel fuel, terminal code, and carrier; (4) [(5)] the number of net gallons of diesel fuel the supplier or permissive supplier sold during the month in transactions exempt under Section 162.204, sorted by [product code, carrier,] purchaser[, and terminal code; [(6) the number of net gallons of diesel fuel sold in the bulk transfer/terminal system in this state to any person not holding a supplier's or permissive supplier's license]; and (5) [(7)] any other information required by the comptroller. (d) For the purpose of Subsection (c), all payments or credits in reduction of a customer's account must be applied ratably between motor fuels and other goods sold to the customer, and the credit allowed will be the tax on the number of gallons represented by the motor fuel portion of the credit. The comptroller may not require a supplier or permissive supplier to remit from a payment or credit in reduction of a customer's account any tax for which the supplier or permissive supplier was allowed to take a credit. SECTION 4.14. Section 162.219, Tax Code, is amended to read as follows: Sec. 162.219. INFORMATION REQUIRED ON DISTRIBUTOR'S RETURN. The monthly return and supplements of each distributor shall contain for the period covered by the return: (1) the number of net gallons of diesel fuel received by the distributor during the month, sorted by product code and[,] seller[, point of origin, destination state, carrier, and receipt date]; (2) the number of net gallons of diesel fuel removed at a terminal rack by the distributor during the month, sorted by product code, seller, and terminal code[, and carrier]; (3) the number of net gallons of diesel fuel removed by the distributor during the month for export, sorted by product code, terminal code, bulk plant address, destination state, and carrier; (4) the number of net gallons of diesel fuel removed by the distributor during the month from a terminal located in another state for conveyance to this state, as indicated on the shipping document for the diesel fuel, sorted by product code, seller, terminal code, bulk plant address, and carrier; (5) the number of net gallons of diesel fuel the distributor sold during the month in transactions exempt under Section 162.204, sorted by product code and by the entity receiving the diesel fuel; (6) the number of net gallons of[,] dyed diesel fuel sold to a purchaser under a signed statement[,] or dyed diesel fuel sold to a dyed diesel fuel bonded user, sorted by product code and by the entity receiving the diesel fuel; and (7) [(6)] any other information required by the comptroller. SECTION 4.15. Section 162.224, Tax Code, is amended to read as follows: Sec. 162.224. INFORMATION REQUIRED ON BLENDER'S RETURN. The monthly return and supplements of each blender shall contain for the period covered by the return: (1) [the number of net gallons of diesel fuel received by the blender during the month, sorted by product code, seller, point of origin, carrier, and receipt date; [(2)] the number of net gallons of product blended with diesel fuel during the month, sorted by product code, type of blending agent if no product code exists, seller, and carrier; [(3) the number of net gallons of blended diesel fuel sold during the month and the license number or name and address of the entity receiving the blended diesel fuel;] and (2) [(4)] any other information required by the comptroller. SECTION 4.16. Section 162.227, Tax Code, is amended by adding Subsection (c-1) to read as follows: (c-1) A license holder may take a credit on a return for the period in which the purchase occurred, and a person who does not hold a license may file a refund claim with the comptroller, if the license holder or person paid tax on diesel fuel and the diesel fuel is used in this state: (1) as a feedstock or other component in the further manufacturing of tangible personal property for resale not as a motor fuel; or (2) in the original production of oil or gas or to increase the production of oil or gas. SECTION 4.17. Section 162.229, Tax Code, is amended by adding Subsection (g) to read as follows: (g) The comptroller shall issue a refund warrant to a distributor not later than the 60th day after the date the comptroller receives a valid refund claim from the distributor. If the comptroller does not issue the refund warrant by that date, the amount of the refund draws interest at the rate provided by Section 111.060 beginning on the 61st day after the date the comptroller receives the valid refund claim and ending on the date the comptroller issues the refund warrant. SECTION 4.18. Subsection (d), Section 162.230, Tax Code, is amended to read as follows: (d) A supplier, [or] permissive supplier, or distributor that determines taxes were erroneously reported and remitted or that paid more taxes than were due to this state because of a mistake of fact or law may take a credit on the monthly tax report on which the error has occurred and tax payment made to the comptroller. The credit must be taken before the expiration of the applicable period of limitation as provided by Chapter 111. SECTION 4.19. Subsections (c) and (d), Section 162.404, Tax Code, are amended to read as follows: (c) The prohibition under Section 162.403(32) does not apply to the tax-free sale or distribution of diesel fuel authorized by Section 162.204(a)(1) [162.204(1)], (2), or (3). (d) The prohibition under Section 162.403(33) does not apply to the tax-free sale or distribution of gasoline under Section 162.104(a)(1) [162.104(1)], (2), or (3). SECTION 4.20. Subsection (h), Section 162.016, Tax Code, is repealed. SECTION 4.21. This article applies only to taxes imposed on or after the effective date of this article. Taxes imposed before the effective date of this article are governed by the law in effect on the date the taxes were imposed, and that law is continued in effect for that purpose. SECTION 4.22. This article takes effect September 1, 2005.
ARTICLE 5. COLLECTION OF CERTAIN STATE TAXES
PART A. MOTOR VEHICLE SALES AND USE TAX
SECTION 5A.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 5A.02. Subsection (a), Section 152.041, Tax Code, is amended to read as follows: (a) The tax assessor-collector of the county in which an application for registration or for a Texas certificate of title is made shall collect taxes imposed by this chapter, subject to Section 152.0412, unless another person is required by this chapter to collect the taxes. SECTION 5A.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 5A.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 5A.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 B. MOTOR FUELS TAX
SECTION 5B.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 5B.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 5B.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 5B.04. 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.
PART C. HOTEL OCCUPANCY TAXES
SECTION 5C.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 unfurnished dwelling units that are leased to tenants, as defined by Section 92.001, Property Code. SECTION 5C.02. Subsection (c), Section 351.002, 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 5C.03. Subdivision (1), Section 352.001, Tax Code, is amended to read as follows: (1) "Hotel" has the meaning assigned by Section 156.001 [156.001(1)]. SECTION 5C.04. Subsection (c), Section 352.002, 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 5C.05. Section 156.101, Tax Code, is repealed. SECTION 5C.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.
ARTICLE 6. ELIGIBILITY FOR MEDICAL ASSISTANCE
AND CHILDREN'S HEALTH INSURANCE PROGRAMS
SECTION 6.01. Section 62.102, Health and Safety Code, is amended to read as follows: Sec. 62.102. CONTINUOUS COVERAGE. [(a)] The commission shall provide that an individual who is determined to be eligible for coverage under the child health plan remains eligible for those benefits until the earlier of: (1) the end of the six-month [a] period[, not to exceed 12 months,] following the date of the eligibility determination; or (2) the individual's 19th birthday. [(b) The period of continuous eligibility may be established at an interval of 6 months beginning immediately upon passage of this Act and ending September 1, 2005, at which time an interval of 12 months of continuous eligibility will be re-established.] SECTION 6.02. Section 32.0261, Human Resources Code, is amended to read as follows: Sec. 32.0261. CONTINUOUS ELIGIBILITY. The department shall adopt rules in accordance with 42 U.S.C. Section 1396a(e)(12), as amended, to provide for a period of continuous eligibility for a child under 19 years of age who is determined to be eligible for medical assistance under this chapter. The rules shall provide that the child remains eligible for medical assistance, without additional review by the department and regardless of changes in the child's resources or income, until the earlier of: (1) the end of the six-month period following [first anniversary of] the date on which the child's eligibility was determined; or (2) the child's 19th birthday. SECTION 6.03. 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 7. MEDICAL ASSISTANCE PROGRAM
SECTION 7.01. Subchapter A, Chapter 531, Government Code, is amended by adding Section 531.0081 to read as follows: Sec. 531.0081. OFFICE OF MEDICAL TECHNOLOGY. (a) In this section, "office" means the office of medical technology. (b) The commission shall establish the office of medical technology within the commission. The office shall explore and evaluate new developments in medical technology and propose implementing the technology in the medical assistance program under Chapter 32, Human Resources Code, if appropriate and cost-effective. (c) Office staff must have skills and experience in research regarding health care technology. SECTION 7.02. Section 531.021, Government Code, is amended by adding Subsections (f) and (g) to read as follows: (f) In adopting rates for medical assistance payments under Subsection (b)(2), the executive commissioner may adopt reimbursement rates for appropriate nursing services provided to recipients with certain health conditions if those services are determined to provide a cost-effective alternative to hospitalization. A physician must certify that the nursing services are medically appropriate for the recipient for those services to qualify for reimbursement under this subsection. (g) In adopting rates for medical assistance payments under Subsection (b)(2), the executive commissioner may adopt cost-effective reimbursement rates for group appointments with medical assistance providers for certain diseases and medical conditions specified by rules of the executive commissioner. SECTION 7.03. Subchapter B, Chapter 531, Government Code, is amended by adding Section 531.02175 to read as follows: Sec. 531.02175. REIMBURSEMENT FOR ONLINE MEDICAL CONSULTATIONS. (a) In this section, "physician" means a person licensed to practice medicine in this state under Subtitle B, Title 3, Occupations Code. (b) Subject to the requirements of this subsection, the executive commissioner by rule may require the commission and each health and human services agency that administers a part of the Medicaid program to provide Medicaid reimbursement for a medical consultation that is provided by a physician or other health care professional using the Internet as a cost-effective alternative to an in-person consultation. The executive commissioner may require the commission or a health and human services agency to provide the reimbursement described by this subsection only if the Centers for Medicare and Medicaid Services develop an appropriate Current Procedural Terminology code for medical services provided using the Internet. (c) The executive commissioner may develop and implement a pilot program in one or more sites chosen by the executive commissioner under which Medicaid reimbursements are paid for medical consultations provided by physicians or other health care professionals using the Internet. The pilot program must be designed to test whether an Internet medical consultation is a cost-effective alternative to an in-person consultation under the Medicaid program. The executive commissioner may modify the pilot program as necessary throughout its implementation to maximize the potential cost-effectiveness of Internet medical consultations. If the executive commissioner determines from the pilot program that Internet medical consultations are cost-effective, the executive commissioner may expand the pilot program to additional sites or may implement Medicaid reimbursements for Internet medical consultations statewide. (d) The executive commissioner is not required to implement the pilot program authorized under Subsection (c) as a prerequisite to providing Medicaid reimbursement authorized by Subsection (b) on a statewide basis. SECTION 7.04. (a) Subchapter B, Chapter 531, Government Code, is amended by adding Section 531.083 to read as follows: Sec. 531.083. HOSPITAL EMERGENCY ROOM USE REDUCTION INITIATIVES. The commission shall develop and implement a comprehensive plan to reduce the use of hospital emergency room services by recipients under the medical assistance program. The plan may include: (1) a pilot program designed to facilitate program participants in accessing an appropriate level of health care, which may include as components: (A) providing program participants access to bilingual health services providers; and (B) giving program participants information on how to access primary care physicians, advanced practice nurses, and local health clinics; (2) a pilot program under which health care providers, other than hospitals, are given financial incentives for treating recipients outside of normal business hours to divert those recipients from hospital emergency rooms; (3) payment of a nominal referral fee to hospital emergency rooms that perform an initial medical evaluation of a recipient and subsequently refer the recipient, if medically stable, to an appropriate level of health care, such as care provided by a primary care physician, advanced practice nurse, or local clinic; (4) a program under which the commission or a managed care organization that enters into a contract with the commission under Chapter 533 contacts, by telephone or mail, a recipient who accesses a hospital emergency room three times during a six-month period and provides the recipient with information on ways the recipient may secure a medical home to avoid unnecessary treatment at hospital emergency rooms; (5) a health care literacy program under which the commission develops partnerships with other state agencies and private entities to: (A) assist the commission in developing materials that: (i) contain basic health care information for parents of young children who are recipients under the medical assistance program and who are participating in public or private child-care or prekindergarten programs, including federal Head Start programs; and (ii) are written in a language understandable to those parents and specifically tailored to be applicable to the needs of those parents; (B) distribute the materials developed under Paragraph (A) to those parents; and (C) otherwise teach those parents about the health care needs of their children and ways to address those needs; and (6) other initiatives developed and implemented in other states that have shown success in reducing the incidence of unnecessary treatment in hospital emergency rooms. (b) The Health and Human Services Commission may develop the health care literacy component of the comprehensive plan to reduce the use of hospital emergency room services required by Section 531.083(5), Government Code, as added by this section, so that the health care literacy component operates in a manner similar to the manner in which the Johnson & Johnson/UCLA Health Care Institute operates its health care training program that is designed to teach parents to better address the health care needs of their children. SECTION 7.05. Subchapter B, Chapter 531, Government Code, is amended by adding Section 531.084 to read as follows: Sec. 531.084. PERFORMANCE BONUS PILOT PROGRAM. (a) The commission shall develop a proposal for providing higher reimbursement rates to primary care case management providers under the Medicaid program who treat program recipients with chronic health conditions in accordance with evidence-based, nationally accepted best practices and standards of care. (b) The commission shall define the parameters of the proposed program, including: (1) the types of chronic health conditions the program would target; (2) the best practices and standards of care that must be followed for a provider to obtain a higher reimbursement rate under the proposed program; and (3) the types of providers to whom the higher reimbursement rate would be offered under the proposed program. (c) Not later than December 1, 2006, the Health and Human Services Commission shall report to the standing committees of the senate and the house of representatives having primary jurisdiction over welfare programs regarding the proposed program under this section. The report must include: (1) the anticipated effect of the higher reimbursement rates to be offered under the program on the quality of care provided and the health outcomes for program recipients; (2) a determination of whether the program would be cost-effective; and (3) a recommendation regarding implementation of the program. (d) This section expires September 1, 2007. SECTION 7.06. Section 562.1085, Occupations Code, is amended by amending Subsection (a) and adding Subsection (f) to read as follows: (a) A pharmacist who practices in or serves as a consultant for a health care facility in this state may return to a pharmacy certain unused drugs, other than a controlled substance as defined by Chapter 481, Health and Safety Code, purchased from the pharmacy as provided by board rule. The unused drugs must: (1) be approved by the federal Food and Drug Administration and be: (A) sealed in [the manufacturer's original] unopened tamper-evident packaging and either individually packaged or packaged in unit-dose packaging; (B) oral or parenteral medication in sealed single-dose containers approved by the federal Food and Drug Administration; (C) topical or inhalant drugs in sealed units-of-use containers approved by the federal Food and Drug Administration; or (D) parenteral medications in sealed multiple-dose containers approved by the federal Food and Drug Administration from which doses have not been withdrawn; and (2) not be the subject of a mandatory recall by a state or federal agency or a voluntary recall by a drug seller or manufacturer. (f) The tamper-evident packaging required under Subsection (a)(1) for the return of unused drugs is not required to be the manufacturer's original packaging unless that packaging is required by federal law. SECTION 7.07. MEDICAID COVERAGE FOR HEALTH INSURANCE PREMIUMS AND LONG-TERM CARE NEEDS. (a) The Health and Human Services Commission shall explore the commission's authority under federal law to offer, and the cost and feasibility of offering: (1) a stipend paid by the Medicaid program to a person to cover the cost of a private health insurance plan as an alternative to providing traditional Medicaid services for the person; (2) premium payment assistance through the Medicaid program for long-term care insurance for a person with a health condition that increases the likelihood that the person will need long-term care in the future; and (3) a long-term care partnership between the Medicaid program and a person under which the person pays the premiums for long-term care insurance and the Medicaid program provides continued coverage after benefits under that insurance are exhausted. (b) In exploring the feasibility of the options described by Subsection (a) of this section, the Health and Human Services Commission shall consider whether other state incentives that could encourage persons to purchase health insurance plans or long-term care insurance are feasible. The incentives may include offering tax credits to businesses to increase the availability of affordable insurance. (c) If the Health and Human Services Commission determines that any of the options described by Subsection (a) of this section are feasible and cost-effective, the commission shall make efforts to implement those options to the extent they are authorized by federal law. The commission shall request any necessary waivers from the Centers for Medicare and Medicaid Services as soon as possible after determining that an option is feasible and cost-effective. If the commission determines that legislative changes are necessary to implement an option, the commission shall report to the 80th Legislature and specify the changes that are needed. SECTION 7.08. If before implementing any provision of this article a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.
ARTICLE 8. QUALITY ASSURANCE FEES
SECTION 8.01. Chapter 242, Health and Safety Code, is amended by adding Subchapter P to read as follows:
SUBCHAPTER P. QUALITY ASSURANCE FEE
Sec. 242.801. DEFINITIONS. In this subchapter: (1) "Commission" means the Health and Human Services Commission. (2) "Department" means the Department of Aging and Disability Services. (3) "Executive commissioner" means the executive commissioner of the Health and Human Services Commission. (4) "Gross receipts" means money paid as compensation for services provided to residents, including client participation. The term does not include charitable contributions to an institution. Sec. 242.802. APPLICABILITY. This subchapter does not apply to: (1) a state-owned veterans' nursing facility; or (2) an entity that provides on a single campus a continuum of services, including independent living services, licensed assisted living services, and licensed nursing facility care services, and that: (A) operates under a continuing care retirement community certificate of authority issued by the Texas Department of Insurance; or (B) over a 12-month period, provides a greater number of combined patient days of service to independent living and assisted living residents, not including services provided to persons in licensed nursing facility beds, than the patient days of service provided to nursing facility residents. Sec. 242.803. COMPUTING QUALITY ASSURANCE FEE. (a) A quality assurance fee is imposed on each institution subject to this subchapter for which a license fee must be paid under Section 242.034. The quality assurance fee payment: (1) is an amount established under Subsection (b) multiplied by the number of patient days as determined in accordance with Section 242.804; (2) is payable monthly; and (3) is in addition to other fees imposed under this chapter. (b) The commission shall establish a quality assurance fee for each patient day so that the fee does not produce annual revenues greater than six percent of the total annual gross receipts in this state. The fee is subject to adjustment as necessary. The amount of the quality assurance fee may vary according to the number of patient days provided by an institution as necessary to obtain a waiver under federal regulations at 42 C.F.R. Section 433.68(e). (c) The amount of the quality assurance fee must be determined using patient days and gross receipts: (1) reported to the commission or to the department at the direction of the commission; and (2) covering a period of at least six months. (d) The quality assurance fee is an allowable cost for reimbursement under the state Medicaid program. (e) A nursing facility may not list the quality assurance fee as a separate charge on a patient's or resident's billing statement or otherwise directly or indirectly attempt to charge the quality assurance fee to a patient or resident. Sec. 242.804. PATIENT DAYS. For each calendar day, an institution shall determine the number of patient days by adding the following: (1) the number of patients occupying an institution bed immediately before midnight of that day plus the number of patients admitted that day less the number of patients discharged that day, except that a patient is included in the count under this subdivision if: (A) the patient is admitted and discharged on the same day; or (B) the patient is discharged that day because of the patient's death; and (2) the number of beds that are on hold that day and that have been placed on hold for a period not to exceed three consecutive calendar days during which a patient is: (A) in the hospital; or (B) on therapeutic home leave. Sec. 242.805. REPORTING AND COLLECTION. (a) The commission or the department as directed by the executive commissioner shall collect the quality assurance fee. (b) Each institution shall, not later than the 25th day after the last day of a month: (1) file with the commission a report stating the total patient days for the month; and (2) pay the quality assurance fee. Sec. 242.806. RULES; ADMINISTRATIVE PENALTY. (a) The executive commissioner shall adopt rules for the administration of this subchapter, including rules related to the imposition and collection of the quality assurance fee. (b) The executive commissioner may adopt rules granting exceptions from the quality assurance fee, including an exception for units of service reimbursed through Medicare Part A, if the commission obtains all waivers necessary under federal law, including 42 C.F.R. Section 433.68(e). (c) An administrative penalty assessed under this subchapter in accordance with Section 242.066 may not exceed one-half of the amount of the outstanding quality assurance fee or $20,000, whichever is greater. Sec. 242.807. NURSING HOME QUALITY ASSURANCE FEE ACCOUNT. (a) The nursing home quality assurance fee account is a dedicated account in the general revenue fund. Interest earned on money in the account shall be credited to the account. (b) The comptroller shall deposit money collected under this subchapter to the credit of the account. (c) Subject to legislative appropriation and this subchapter, money in the account together with federal matching money shall be used to support or maintain an increase in Medicaid reimbursement for institutions. Sec. 242.808. REIMBURSEMENT OF INSTITUTIONS. (a) Subject to legislative appropriation, the commission may use money in the nursing home quality assurance fee account, together with any federal money available to match that money, to: (1) offset allowable expenses under the state Medicaid program; or (2) increase reimbursement rates paid under the Medicaid program to institutions. (b) The commission shall devise the formula by which amounts received under this subchapter increase the reimbursement rates paid to institutions under the state Medicaid program. Sec. 242.809. INVALIDITY; FEDERAL FUNDS. If any portion of this subchapter is held invalid by a final order of a court that is not subject to appeal, or if the commission determines that the imposition of the fee and the expenditure as prescribed by this subchapter of amounts collected will not entitle the state to receive additional federal funds under the Medicaid program, the commission shall stop collection of the quality assurance fee and, not later than the 30th day after the date collection is stopped, shall return to the institutions that paid the fees, in proportion to the total amount paid by those institutions, any money deposited to the credit of the nursing home quality assurance fee account but not spent. Sec. 242.810. REVISION IN CASE OF DISAPPROVAL. If the Centers for Medicare and Medicaid Services disapproves the quality assurance fee plan established under this subchapter, the commission shall revise the associated state plan amendments and waiver requests as necessary to comply with federal regulations provided by 42 C.F.R. Section 433.68(e). The revisions must be completed as soon as practicable after the date the commission receives notice of the disapproval. Sec. 242.811. AUTHORITY TO ACCOMPLISH PURPOSES OF SUBCHAPTER. The executive commissioner by rule may adopt a definition, a method of computation, or a rate that differs from those expressly provided by or expressly authorized by this subchapter to the extent the difference is necessary to accomplish the purposes of this subchapter. SECTION 8.02. Subchapter B, Chapter 531, Government Code, is amended by adding Sections 531.078 through 531.081 to read as follows: Sec. 531.078. QUALITY ASSURANCE FEES ON CERTAIN WAIVER PROGRAM SERVICES. (a) In this section, "gross receipts" means money received as compensation for services under a home and community services waiver or a community living assistance and support services waiver. The term does not include a charitable contribution, revenues received for services or goods other than waivers, or any money received from consumers or their families as reimbursement for services or goods normally not covered by the waivers. (b) The executive commissioner by rule shall establish a quality assurance fee program as provided by this section and impose a quality assurance fee on persons providing services under a home and community services waiver or a community living assistance and support services waiver. (c) The executive commissioner shall establish the fee at an amount that will produce annual revenues of not more than six percent of the gross receipts of a person from services the person provides under the waiver. (d) The executive commissioner shall adopt rules governing: (1) the reporting required to compute and collect the fee and the manner and times of collecting the fee; and (2) the administration of the fee, including the imposition of penalties for a violation of the rules. (e) Fees collected under this section shall be deposited in the waiver program quality assurance fee account. Sec. 531.079. WAIVER PROGRAM QUALITY ASSURANCE FEE ACCOUNT. (a) The waiver program quality assurance fee account is a dedicated account in the general revenue fund. The account is exempt from the application of Section 403.095. Interest earned on money in the account shall be credited to the account. (b) The account consists of fees collected under Section 531.078 and interest earned on money in the account. (c) Subject to legislative appropriation and state and federal law, money in the account may be appropriated only to the commission to increase reimbursement rates paid under the home and community services waiver program or the community living assistance and support services waiver program or to offset allowable expenses under the state Medicaid program. Sec. 531.080. REIMBURSEMENT OF WAIVER PROGRAMS. Subject to legislative appropriation and state and federal law, the commission shall use money from the waiver program quality assurance fee account, together with any federal money available to match money from the account, to increase reimbursement rates paid under the home and community services waiver program or the community living assistance and support services waiver program. Sec. 531.081. INVALIDITY; FEDERAL FUNDS. If any portion of Sections 531.078-531.080 is held invalid by a final order of a court that is not subject to appeal, or if the commission determines that the imposition of the quality assurance fee and the expenditure of the money collected as provided by those sections will not entitle this state to receive additional federal money under the Medicaid program, the commission shall: (1) stop collection of the quality assurance fee; and (2) not later than the 30th day after the date the collection of the quality assurance fee is stopped, return any money collected under Section 531.078, but not spent under Section 531.080, to the persons who paid the fees in proportion to the total amount paid by those persons. SECTION 8.03. Subsection (b), Section 252.202, Health and Safety Code, is amended to read as follows: (b) The Health and Human Services Commission or the department at the direction of the commission shall set the quality assurance fee for each day in an [the] amount that will produce [necessary to produce] annual revenues of [equal to an amount that is] not more than six percent of the [facility's] total annual gross receipts in this state. The fee is subject to a prospective adjustment as necessary. SECTION 8.04. Section 252.209, Health and Safety Code, is repealed. SECTION 8.05. (a) Notwithstanding Section 242.803, Health and Safety Code, as added by this article, the executive commissioner of the Health and Human Services Commission shall establish the initial quality assurance fee imposed under Subchapter P, Chapter 242, Health and Safety Code, as added by this article, based on available revenue and patient day information. The initial quality assurance fee established under this section remains in effect until the Health and Human Services Commission obtains the information necessary to set the fee under Section 242.803, Health and Safety Code, as added by this article. (b) As soon as practicable after the effective date of this Act, the executive commissioner of the Health and Human Services Commission shall adopt rules as necessary to implement Subchapter P, Chapter 242, Health and Safety Code, and Section 531.078, Government Code, as added by this article. (c) If before implementing any provision of this article a state agency determines a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.
ARTICLE 9. WAIVER OF AND SUPPLEMENTAL HEALTH COVERAGE
FOR STATE EMPLOYEES
SECTION 9.01. Subsection (a), Section 1551.104, 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 9.02. Subchapter C, Chapter 1551, Insurance Code, is amended by adding Section 1551.1045 to read as follows: Sec. 1551.1045. WAIVER. (a) Subject to Subsections (b) and (c), an employee or annuitant may waive in writing any coverage provided under this chapter. (b) To waive coverage under the basic coverage plan for employees, a full-time employee must demonstrate, in the manner required by the board of trustees, that the employee is: (1) covered by another health benefit plan that provides substantially equivalent coverage, as determined by the board of trustees, to the coverage provided to employees by the basic coverage plan; or (2) eligible for benefits under the TRICARE Military Health System. (c) To waive coverage under the basic coverage plan for annuitants for the purpose of eligibility for an incentive payment under Section 1551.222, an annuitant must demonstrate, in the manner required by the board of trustees, that the annuitant is: (1) covered by another health benefit plan that provides substantially equivalent coverage, as determined by the board of trustees, to the coverage provided to annuitants by the basic coverage plan; or (2) eligible for benefits under the TRICARE Military Health System. SECTION 9.03. Subchapter E, Chapter 1551, Insurance Code, is amended by adding Sections 1551.221 and 1551.222 to read as follows: Sec. 1551.221. OPTIONAL SUPPLEMENTAL HEALTH COVERAGE FOR INDIVIDUALS ELIGIBLE UNDER TRICARE MILITARY HEALTH SYSTEM. (a) The board of trustees shall offer, as an optional coverage under the group benefits program, a supplemental health coverage program. (b) Under the supplemental health coverage program, an employee or annuitant who is eligible to participate in the group benefits program and who is also eligible for benefits under the TRICARE Military Health System may elect to receive primary coverage under the TRICARE Military Health System. An employee or annuitant participating in the supplemental health coverage program must waive basic coverage through the group benefits program, but receives supplemental health coverage under this section. (c) The cost of supplemental health coverage provided under this section may be paid in the same manner as the cost of other optional coverage is paid under Subchapter G. (d) The board of trustees shall contract to purchase the supplemental health coverage in accordance with Sections 1551.213-1551.216. (e) The board of trustees may adopt rules to implement this section. Sec. 1551.222. INCENTIVE PAYMENTS. (a) The board of trustees may allow an incentive payment under this section to an employee or annuitant who elects to waive coverage under the basic coverage plan for employees or annuitants as provided by Section 1551.1045(b) or (c). (b) The incentive payment authorized by this section is in the amount authorized by the General Appropriations Act and may be used by the employee or annuitant, in the manner prescribed by the board of trustees, only to pay for other group coverage plans provided under the group benefits program, including the supplemental health coverage offered under Section 1551.221. (c) The board of trustees, at the time of initial enrollment in the group benefits program and during subsequent open-enrollment periods, shall inform employees and annuitants that they may make an election described by Subsection (a), if eligible, and receive any authorized incentive payment. SECTION 9.04. 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 10. MISCELLANEOUS FEES AND FUNDS
PART A. TEXAS MOBILITY FUND
SECTION 10A.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 10A.02. This part takes effect September 1, 2005.
PART B. TELECOMMUNICATIONS INFRASTRUCTURE FUND
SECTION 10B.01. Section 57.048, Utilities Code, is amended by adding Subsections (f) through (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 10B.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 10B.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 10B.04. Section 57.043 and Subsections (c) and (d), Section 57.048, Utilities Code, are repealed. SECTION 10B.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 10B.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 11. POWERS AND DUTIES OF COMPTROLLER AND PROVISIONS RELATED TO TAXES COLLECTED BY COMPTROLLER OR LOCAL ENTITIES
SECTION 11.01. Section 442.015, Government Code, is amended by adding Subsection (h) to read as follows: (h) The comptroller may manage the assets of the Texas preservation trust fund account in the same manner as the comptroller may manage the assets of certain permanent funds under Section 403.1068. SECTION 11.02. Section 552.025(c), Government Code, is amended to read as follows: (c) Subchapter C does not authorize withholding from the public or limiting the availability to the public of a written determination letter, technical advice memorandum, or ruling that concerns a tax matter and that is issued by a governmental body with taxing authority, provided that, to preserve taxpayer confidentiality, a governmental body with taxing authority shall remove any information that identifies a taxpayer from the letter, memorandum, or ruling. SECTION 11.03. Section 285.063, Health and Safety Code, is amended by adding Subsection (b-1) to read as follows: (b-1) The district shall submit to the comptroller a description of the boundaries of the district and a map of the district clearly showing the district's boundaries at the same time the district submits the results of the election held under this subchapter. SECTION 11.04. Section 775.0753, Health and Safety Code, is amended by adding Subsection (d) to read as follows: (d) The district shall submit to the comptroller a description of the boundaries of the district and a map of the district clearly showing the district's boundaries at the same time the district submits the results of the election held under this subchapter. SECTION 11.05. Section 776.0753, Health and Safety Code, is amended by adding Subsection (d) to read as follows: (d) The district shall submit to the comptroller a description of the boundaries of the district and a map of the district clearly showing the district's boundaries at the same time the district submits the results of the election held as provided by this subchapter. SECTION 11.06. Article 1.16(b), Insurance Code, is amended to read as follows: (b) Assessments for the expenses of such domestic examination which shall be sufficient to meet all the expenses and disbursements necessary to comply with the provisions of the laws of Texas relating to the examination of insurance companies and to comply with the provisions of this Article and Articles 1.17 and 1.18 of this Code, shall be made by the State Board of Insurance upon the corporations or associations to be examined taking into consideration annual premium receipts, and/or admitted assets that are not attributable to 90 percent of pension plan contracts as defined in Section 818(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section 818(a)), and/or insurance in force; provided such assessments shall be made and collected as follows: (1) expenses attributable directly to a specific examination including employees' salaries and expenses and expenses provided by Section 803.007 [Article 1.28] of this Code shall be collected at the time of examination; (2) assessments calculated annually for each corporation or association which take into consideration annual premium receipts, and/or admitted assets that are not attributable to 90 percent of pension plan contracts as defined in Section 818(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section 818(a)), and/or insurance in force shall be assessed annually for each such corporation or association. In computing the assessments, the board may not consider insurance premiums for insurance contracted for by a state or federal governmental entity to provide welfare benefits to designated welfare recipients or contracted for in accordance with or in furtherance of Title 2, Human Resources Code, or the federal Social Security Act (42 U.S.C. Section 301 et seq.). The amount of all examination and evaluation fees paid in each taxable year to the State of Texas by an insurance carrier shall be allowed as a credit on the amount of premium taxes due [under this article]. The limitations provided by Sections 803.007(1) and (2)(B) of this code for domestic insurance companies apply to foreign insurance companies. SECTION 11.07. Section 222.002(b), Insurance Code, is amended to read as follows: (b) Except as otherwise provided by this section, in determining an insurer's taxable gross premiums or a health maintenance organization's taxable gross revenues, the insurer or health maintenance organization shall include the total gross amounts of premiums, membership fees, assessments, dues, revenues, and other considerations received by the insurer or health maintenance organization in a calendar year from any kind of health maintenance organization certificate or contract or insurance policy or contract covering risks on individuals or groups [a person] located in this state and arising from the business of a health maintenance organization or the business of life insurance, accident insurance, health insurance, life and accident insurance, life and health insurance, health and accident insurance, life, health, and accident insurance, including variable life insurance, credit life insurance, and credit accident and health insurance for profit or otherwise or for mutual benefit or protection. SECTION 11.08. Section 223.003(a), Insurance Code, is amended to read as follows: (a) An annual tax is imposed on all [each title insurance company that receives] premiums from the business of title insurance. The rate of the tax is 1.35 percent of [the] title insurance [company's] taxable premiums for a calendar year, including any premiums retained by a title insurance agent as provided by Section 223.005. For purposes of this chapter, a person engages in the business of title insurance if the person engages in an activity described by Section 2501.005. SECTION 11.09. Section 252.003, Insurance Code, is amended to read as follows: Sec. 252.003. PREMIUMS SUBJECT TO TAXATION. An insurer shall pay maintenance taxes under this chapter on the correctly reported gross premiums [collected] from writing insurance in this state against loss or damage by: (1) bombardment; (2) civil war or commotion; (3) cyclone; (4) earthquake; (5) excess or deficiency of moisture; (6) explosion as defined by Article 5.52; (7) fire; (8) flood; (9) frost and freeze; (10) hail; (11) insurrection; (12) invasion; (13) lightning; (14) military or usurped power; (15) an order of a civil authority made to prevent the spread of a conflagration, epidemic, or catastrophe; (16) rain; (17) riot; (18) the rising of the waters of the ocean or its tributaries; (19) smoke or smudge; (20) strike or lockout; (21) tornado; (22) vandalism or malicious mischief; (23) volcanic eruption; (24) water or other fluid or substance resulting from the breakage or leakage of sprinklers, pumps, or other apparatus erected for extinguishing fires, water pipes, or other conduits or containers; (25) weather or climatic conditions; [or] (26) windstorm; (27) an event covered under a home warranty insurance policy; or (28) an event covered under an inland marine insurance policy. SECTION 11.10. Section 271.002(a), Insurance Code, is amended to read as follows: (a) A maintenance fee is imposed on all [each insurer with gross] premiums subject to assessment under Section 271.006. SECTION 11.11. Section 1502.053, Insurance Code, is amended to read as follows: Sec. 1502.053. EXEMPTION FROM CERTAIN TAXES. (a) The issuer of a [A] children's health benefit plan approved under Section 1502.051 [issuer] is not subject to the premium tax or the tax on revenues imposed under Chapter 222 with respect to money received for coverage provided under that plan. (b) The issuer of a children's health benefit plan is not subject to the retaliatory tax imposed under Chapter 281 with respect to money received for coverage provided under that plan. SECTION 11.12. Section 383.101, Local Government Code, is amended by adding Subsection (d) to read as follows: (d) The district shall submit to the comptroller a description of the boundaries of the district and a map of the district clearly showing the district's boundaries at the same time the district submits the results of the election held under this subchapter. SECTION 11.13. Section 387.012, Local Government Code, is amended to read as follows: Sec. 387.012. EFFECTIVE DATE OF TAX. (a) The adoption of the tax, the change of the tax rate, or the repeal of the tax takes effect on the first day of the first calendar quarter occurring after the expiration of the first complete quarter occurring after the date the comptroller receives a notice of the results of the election adopting, changing, or repealing the tax. (b) The district shall submit to the comptroller a description of the boundaries of the district and a map of the district clearly showing the district's boundaries at the same time the district submits the results of the election held under this chapter. SECTION 11.14. Section 111.009, Tax Code, is amended by amending Subsection (a) and adding Subsections (e) and (f) to read as follows: (a) A person having a direct interest in a determination may petition the comptroller for a redetermination and may assert legal and factual grounds to challenge the assessment. (e) The person filing the petition may assert credits or claim a refund for the same tax type and same period. The assertion for the credits or the claim for the refund must be included in the petition or must be filed within the applicable limitations period, except as otherwise provided by this section. The comptroller shall adopt procedural rules that ensure that redetermination proceedings are expeditiously finalized and that provide that all parties receive equal time to prepare and submit their positions before the hearing. (f) A credit or refund for the same tax type and same period may be asserted or claimed in the redetermination proceeding for all issues if the credit is asserted or the refund is claimed not later than the second anniversary of the date the petition for redetermination is filed. This subsection does not authorize a filing for a separate credit or refund that is not authorized under Section 111.107(b). SECTION 11.15. Section 111.016, Tax Code, is amended by adding Subsections (e) and (f) to read as follows: (e) The comptroller may assess the responsible individual liable under Subsection (b) at any time before the first anniversary of the later of: (1) the date the tax liability of the corporation, association, limited liability company, limited partnership, or other legal entity becomes final; or (2) the date the bankruptcy proceeding is closed or dismissed. (f) An individual that the comptroller asserts is liable for the payment of tax or other money under this section as a responsible individual is entitled to: (1) reasonable notice from the comptroller that specifies the basis for that assertion and the amount of tax or money for which the comptroller asserts the individual is liable; and (2) contest that assertion in a manner consistent with the remedies available to taxpayers under this title. SECTION 11.16. Subchapter B, Chapter 111, Tax Code, is amended by adding Section 111.0515 to read as follows: Sec. 111.0515. RESTRICTED OR CONDITIONAL PAYMENTS OF TAXES, PENALTIES, AND INTEREST PROHIBITED. Unless the restriction or condition is authorized by this title, a restriction or condition placed on a check in payment of taxes by the maker of the check that purports to limit the amount of taxes owed to an amount less than that stated in the comptroller's records, or a restriction or condition placed on a check in payment of penalties and interest on delinquent taxes by the maker that purports to limit the amount of the penalties and interest to an amount less than the amount of penalties and interest accrued on the delinquent taxes, is void. SECTION 11.17. Subchapter B, Chapter 111, Tax Code, is amended by adding Section 111.065 to read as follows: Sec. 111.065. EXPEDITIOUS ASSISTANCE FOR TAXPAYERS. (a) As expeditiously as possible, the comptroller shall: (1) refund or credit any amount of tax overpaid by a person; and (2) correct any erroneous assessment. (b) The comptroller shall amend any audit or the records of any audit period as expeditiously as possible if necessary to comply with Subsection (a). SECTION 11.18. Section 111.107, Tax Code, is amended to read as follows: Sec. 111.107. WHEN REFUND OR CREDIT IS PERMITTED. (a) Except as otherwise expressly provided, a person may request a refund or a credit or the comptroller may make a refund or issue a credit for the overpayment of a tax imposed by this title at any time before the expiration of the period during which the comptroller may assess a deficiency for the tax and not thereafter unless the refund or credit is requested: (1) under Subchapter B of Chapter 112 and the refund is made or the credit is issued under a court order; (2) under the provision of Section 111.104(c)(3) applicable to a refund claim filed after a jeopardy or deficiency determination becomes final; or (3) under Chapter 162 [153], except Section 162.126(f), 162.128(d), 162.228(f), or 162.230(d) [153.1195(e), 153.121(d), 153.2225(e), or 153.224(d)]. (b) A person may not refile a refund claim for the same transaction or item, tax type, period, and ground or reason that was previously denied by the comptroller in a refund hearing. SECTION 11.19. Section 151.006, Tax Code, is amended to read as follows: Sec. 151.006. "SALE FOR RESALE". "Sale for resale" means a sale of: (1) tangible personal property or a taxable service to a purchaser who acquires the property or service for the purpose of reselling it in the United States of America or a possession or territory of the United States of America or in the United Mexican States in the normal course of business in the form or condition in which it is acquired or as an attachment to or integral part of other tangible personal property or taxable service; (2) tangible personal property to a purchaser for the sole purpose of the purchaser's leasing or renting it in the United States of America or a possession or territory of the United States of America or in the United Mexican States in the normal course of business to another person, but not if incidental to the leasing or renting of real estate; (3) tangible personal property to a purchaser who acquires the property for the purpose of transferring it in the United States of America or a possession or territory of the United States of America or in the United Mexican States as an integral part of a taxable service; or (4) a taxable service performed on tangible personal property that is held for sale by the purchaser of the taxable service. SECTION 11.20. Section 151.011(a), Tax Code, is amended to read as follows: (a) Except as provided by Subsection (c) [of this section], "use" means the exercise of a right or power incidental to the ownership of tangible personal property over tangible personal property, including tangible personal property other than printing [printed] material that has been processed, fabricated, or manufactured into other property or attached to or incorporated into other property transported into this state, and, except as provided by Section 151.056(b) [of this code], includes the incorporation of tangible personal property into real estate or into improvements of real estate whether or not the real estate is subsequently sold. SECTION 11.21. Section 151.3111(b), Tax Code, is amended to read as follows: (b) Subsection (a) does not apply to the performance of a service on: (1) tangible personal property that would be exempted solely because of the exempt status of the seller of the property; (2) tangible personal property that is exempted solely because of the application of Section 151.303, 151.304, or 151.306; (3) motor vehicles, trailers, or semitrailers as defined, taxed, or exempted by Chapter 152; [or] (4) a taxable boat or motor as defined by Section 160.001; (5) tangible [. (6) Tangible] personal property exempt under Section 151.326; or (6) through December 31, 2007, tangible personal property that is exempted solely because of the application of Section 151.3162. SECTION 11.22. Sections 151.3162(d) and (e), Tax Code, are amended to read as follows: (d) The exemption provided by Subsection (b) takes effect January 1, 2008. Until that date, a person is entitled to an exemption [a credit or refund] of a portion of the taxes paid under this chapter on an item that after January 1, 2008, will be exempted from the taxes imposed by this chapter under Subsection (b). The amount of the exemption [credit or refund] is determined as follows: (1) for an item for which the taxable event occurs on or after October 1, 2001, and before January 1, 2004, the taxpayer is entitled to an exemption [a refund or credit] in an amount equal to 33 percent of the tax paid on the item; (2) for an item for which the taxable event occurs on or after January 1, 2004, and before January 1, 2006, the taxpayer is entitled to an exemption [a refund or credit] in an amount equal to 50 percent of the tax paid on the item; and (3) for an item for which the taxable event occurs on or after January 1, 2006, and before January 1, 2008, the taxpayer is entitled to an exemption [a refund or credit] in an amount equal to 75 percent of the tax paid on the item. (e) A taxpayer entitled to a credit or refund under Subsection (d), as that subsection existed on September 30, 2005, may elect to receive either a credit or a refund. A taxpayer who elects to receive a credit must claim the credit on the return for a period that ends not later than the first anniversary of the date on which the taxable event occurred. A taxpayer who elects to receive a refund must apply to the comptroller for the refund before or during the calendar year following the year in which the tax on the item was paid. SECTION 11.23. Section 151.419(b), Tax Code, is amended to read as follows: (b) The application must be accompanied with: (1) an agreement that is signed by the applicant or a responsible officer of an applicant corporation, that is in a form prescribed by the comptroller, and that provides that the applicant agrees to: (A) accrue and pay all taxes imposed by Subchapter D [of this chapter] on the storage and use of all taxable items sold to or leased or rented by the permit holder unless the items are exempted from the taxes imposed by this chapter; and (B) pay the imposed taxes monthly on or before the 20th day of the month following the end of each calendar month; [and [(C) waive the discount permitted by Section 151.423 of this code on the payment of all taxes under the direct payment permit only;] (2) a description, in the amount of detail that the comptroller requires, of the accounting method by which the applicant proposes to differentiate between taxable and exempt transactions; and (3) records establishing that the applicant is a responsible person who annually purchases taxable items that have a value when purchased of $800,000 or more excluding the value of taxable items for which resale certificates were or could have been given. SECTION 11.24. Sections 151.424(a) and (c), Tax Code, are amended to read as follows: (a) A taxpayer who prepays the taxpayer's tax liability on the basis of a reasonable estimate of the tax liability for a quarter in which a prepayment is made or for a month in which a prepayment is made may deduct and withhold 1.25 percent of the amount of the prepayment [in addition to the amount permitted to be deducted and withheld under Section 151.423 of this code]. A reasonable estimate of the tax liability must be at least 90 percent of the tax ultimately due or the amount of tax paid in the same quarter, or month, if a monthly prepayer, in the last preceding year. Failure to prepay a reasonable estimate of the tax will result in the loss of the entire prepayment discount. (c) A taxpayer who prepays the tax liability as permitted by this section must file a report when due as provided by this chapter. The amount of a prepayment made by a taxpayer under this section shall be credited against the amount of actual tax liability of the taxpayer as shown on the tax report of the taxpayer. If there is a tax liability owed by the taxpayer in excess of the prepayment credit, the taxpayer shall send to the comptroller the remaining tax liability at the time of filing the quarterly or monthly report. [The taxpayer is entitled to the deduction permitted under Section 151.423 of this code on the amount of the remaining tax liability.] SECTION 11.25. Section 151.425, Tax Code, is amended to read as follows: Sec. 151.425. FORFEITURE OF DISCOUNT OR REIMBURSEMENT. If a taxpayer fails to file a report required by this chapter when due or to pay the tax when due, the taxpayer forfeits any claim to a [deduction or] discount allowed under [Section 151.423 or] Section 151.424 [of this code]. SECTION 11.26. Section 151.428(c), Tax Code, is amended to read as follows: (c) The reporting, collection, refund, and penalty provisions of this chapter and Subtitle B [of this title] apply to the payments required by this section, except that Section [Sections 151.423 and] 151.424 does [of this code do] not apply to this section. SECTION 11.27. Section 152.047(a), Tax Code, is amended to read as follows: (a) Except as inconsistent with this chapter and rules adopted under this chapter, the seller of a motor vehicle shall report and pay the tax imposed on a seller-financed sale to the comptroller on the seller's receipts from seller-financed sales in the same manner as the sales tax is reported and paid by a retailer under Sections 151.401, 151.402, 151.405, 151.406, 151.409, [151.423,] 151.424, and 151.425. SECTION 11.28. Section 152.123(b), Tax Code, is amended to read as follows: (b) The county shall retain the following percentage of the amounts calculated under Subsection (a) during each of the following fiscal years: (1) [in fiscal year 2006, 10 percent; [(2) in fiscal year 2007, 20 percent; [(3)] in fiscal year 2008, 30 percent; (2) [(4)] in fiscal year 2009, 40 percent; (3) [(5)] in fiscal year 2010, 50 percent; (4) [(6)] in fiscal year 2011, 60 percent; (5) [(7)] in fiscal year 2012, 70 percent; (6) [(8)] in fiscal year 2013, 80 percent; (7) [(9)] in fiscal year 2014, 90 percent; and (8) [(10)] in fiscal year 2015 and succeeding years, 100 percent. SECTION 11.29. Section 171.109(g), Tax Code, as amended by Chapters 801 and 1198, Acts of the 71st Legislature, Regular Session, 1989, is reenacted and amended to read as follows: (g) All oil and gas exploration and production activities by a corporation which is required to or elects to use generally accepted accounting principles to compute surplus must be reported according to the successful efforts or the full cost method of accounting. Notwithstanding the method of accounting, the corporation may elect to depreciate the corporation's oil and gas properties using any alternative method of depreciation recognized under generally accepted accounting principles. The useful lives of intangible assets shall be similar to the useful lives of tangible assets. SECTION 11.30. Section 171.110, Tax Code, is amended by adding Subsection (m) to read as follows: (m) Except as otherwise provided by this section, in computing taxable earned surplus, a corporation is considered to have made an election to use the same methods used in filing its federal income tax return. SECTION 11.31. Section 171.1121(b), Tax Code, is amended to read as follows: (b) Except as otherwise provided by this section, a corporation shall use the same accounting methods to apportion taxable earned surplus as the corporation used to compute taxable earned surplus [in computing reportable federal taxable income]. SECTION 11.32. Section 171.801(2), Tax Code, is amended to read as follows: (2) "Qualified capital investment" means tangible personal property, as defined by 26 C.F.R. Section 1.1245-3(b)(1), that is first placed in service in a strategic investment area, or first placed in service in a county with a population of less than 50,000 by a corporation primarily engaged in agricultural processing, and that is described as Section 1245 property by [in] Section 1245(a), Internal Revenue Code, such as engines, machinery, tools, and implements used in a trade or business or held for investment and subject to an allowance for depreciation, cost recovery under the accelerated cost recovery system, or amortization. The term does not include land [real property] or buildings and their structural components. Property that is leased under a capitalized lease is considered a "qualified capital investment," but property that is leased under an operating lease is not considered a "qualified capital investment." Property expensed under Section 179, Internal Revenue Code, is not considered a "qualified capital investment." SECTION 11.33. Section 183.053(b), Tax Code, is amended to read as follows: (b) The total of bonds, certificates of deposit, letters of credit, or other security determined to be sufficient by the comptroller of a permittee subject to the tax imposed by this chapter shall be in an amount that the comptroller determines to be sufficient to protect the fiscal interests of the state. The comptroller may not set the amount of security at less than $1,000 or more than the greater of $100,000 or four times the amount of the permittee's average monthly tax liability [$50,000]. SECTION 11.34. Section 201.058(b), Tax Code, is amended to read as follows: (b) Operators increasing production by marketing gas from a well [an oil well or lease] that has been released into the air for six [12] months or more pursuant to the rules of the Railroad Commission of Texas [commission] shall be entitled to an exemption from the tax imposed by this chapter on the production resulting from the marketing of such gas for the life of the well [or lease]. SECTION 11.35. Section 201.102, Tax Code, is amended to read as follows: Sec. 201.102. CASH SALES. If gas is sold for cash only, the tax shall be computed on the producer's gross cash receipts. Payments from a purchaser of gas to a producer for the purpose of reimbursing the producer for taxes due under this chapter are not part of the gross cash receipts [unless the reimbursement amount for taxes due under this chapter is separately stated in the sales contract]. SECTION 11.36. Subchapter B, Chapter 202, Tax Code, is amended by adding Section 202.060 to read as follows: Sec. 202.060. TAX CREDIT FOR ENHANCED EFFICIENCY EQUIPMENT. (a) In this section, "enhanced efficiency equipment" means equipment used in the production of oil that reduces the energy used to produce a barrel of fluid by 10 percent or more when compared to commonly available alternative equipment. The term does not include a motor or downhole pump. Equipment does not qualify as enhanced efficiency equipment unless an institution of higher education approved by the comptroller that is located in this state and that has an accredited petroleum engineering program evaluated the equipment and determined that the equipment does produce the required energy reduction. (b) The taxpayer responsible for the payment of severance taxes on the production from a well in this state on which enhanced efficiency equipment is installed and used is entitled to a credit in an amount equal to 20 percent of the cost of the equipment, provided that: (1) the cumulative total of all severance tax credits authorized by this section may not exceed $2,000 for any well; (2) the enhanced efficiency equipment installed in a qualifying well must have been purchased and installed not earlier than September 1, 2005, or later than September 1, 2009; (3) the taxpayer must file an application with the comptroller for the credit and must demonstrate to the comptroller that the enhanced efficiency equipment has been purchased and installed in the well within the period prescribed by Subdivision (2); (4) the number of applications the comptroller may approve each state fiscal year may not exceed a number equal to two percent of the producing wells in this state on September 1 of that state fiscal year, as determined by the comptroller; and (5) the manufacturer of the enhanced efficiency equipment must obtain an evaluation of the product under Subsection (a). (c) The taxpayer may carry any unused credit forward until the credit is used. SECTION 11.37. Sections 313.021(1) and (2), Tax Code, are amended to read as follows: (1) "Qualified investment" means: (A) tangible personal property, as defined by 26 C.F.R. Section 1.1245-3(b)(1), that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, and is described as Section 1245 property by Section 1245(a), Internal Revenue Code of 1986; (B) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with the manufacturing, processing, or fabrication in a cleanroom environment of a semiconductor product, without regard to whether the property is actually located in the cleanroom environment, including: (i) integrated systems, fixtures, and piping; (ii) all property necessary or adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity, or other environmental conditions or manufacturing tolerances; and (iii) production equipment and machinery, moveable cleanroom partitions, and cleanroom lighting; or (C) a building or a permanent, nonremovable component of a building that is built or constructed during the applicable qualifying time period that begins on or after January 1, 2002, and that houses tangible personal property described by Paragraph (A) or (B). (2) "Qualified property" means: (A) land: (i) that is located in an area designated as a reinvestment zone under Chapter 311 or 312 or as an enterprise zone under Chapter 2303, Government Code; (ii) on which a person proposes to construct a new building or erect or affix a new improvement that does not exist before the date the owner applies for a limitation on appraised value under this subchapter; (iii) that is not subject to a tax abatement agreement entered into by a school district under Chapter 312; and (iv) on which, in connection with the new building or new improvement described by Subparagraph (ii), the owner of the land, or the owner of a leasehold interest in the land, proposes to: (a) make a qualified investment in an amount equal to at least the minimum amount required by Section 313.023; and (b) create at least 25 new jobs; (B) the new building or other new improvement described by Paragraph (A)(ii); and (C) tangible personal property that: (i) is not subject to a tax abatement agreement entered into by a school district under Chapter 312; and (ii) except for new equipment described in Section 151.318(q) or (q-1), is first placed in service in the new building or in or on the new improvement described by Paragraph (A)(ii), or on the land on which that new building or new improvement is located, if the personal property is ancillary and necessary to the business conducted in that new building or in or on that new improvement. SECTION 11.38. Section 321.203, Tax Code, is amended by amending Subsections (b)-(e) and adding Subsection (n) to read as follows: (b) If a retailer has only one place of business in this state, all of the retailer's retail sales of taxable items [tangible personal property] are consummated at that place of business except as provided by Subsection (e). (c) If a retailer has more than one place of business in this state, a sale of a taxable item [tangible personal property] by the retailer is consummated at the retailer's place of business: (1) from which the retailer ships or delivers the item [property], if the retailer ships or delivers the item [property] to a point designated by the purchaser or lessee; or (2) where the purchaser or lessee takes possession of and removes the item [property], if the purchaser or lessee takes possession of and removes the item [property] from a place of business of the retailer. (d) If neither the possession of a taxable item [tangible personal property] is taken at nor shipment or delivery of the item [property] is made from the retailer's place of business in this state, the sale is consummated at: (1) the retailer's place of business in this state where the order is received; or (2) if the order is not received at a place of business of the retailer, the place of business from which the retailer's salesman who took the order operates. (e) A sale of a taxable item [tangible personal property] is consummated at the location in this state to which the item [property] is shipped or delivered or at which possession is taken by the customer if transfer of possession of the item [property] occurs at, or shipment or delivery of the item [property] originates from, a location in this state other than a place of business of the retailer and if: (1) the retailer is an itinerant vendor who has no place of business; (2) the retailer's place of business where the purchase order is initially received or from which the retailer's salesman who took the order operates is outside this state; or (3) the purchaser places the order directly with the retailer's supplier and the item [property] is shipped or delivered directly to the purchaser by the supplier. (n) A sale of a service described by Section 151.0047 to remodel, repair, or restore nonresidential real property is consummated at the location of the job site. However, if the job site includes areas in multiple municipalities, the sale is consummated at: (1) the retailer's place of business in this state where the order is received; or (2) if the order is not received at a place of business of the retailer, the place of business from which the retailer's agent who took the order operates. SECTION 11.39. Section 321.302, Tax Code, is amended by adding Subsection (c-1) to read as follows: (c-1) For purposes of Subsection (c)(3), "full amount of the tax due" means the amount of municipal tax to be allocated that can be determined without a comptroller's audit of the person's records. SECTION 11.40. Section 321.503, Tax Code, is amended to read as follows: Sec. 321.503. STATE'S SHARE. Before sending any money to a municipality under this subchapter the comptroller shall deduct two percent of the amount of the taxes collected within the municipality during the period for which a distribution is made as the state's charge for its services under this chapter and shall[, subject to premiums payments under Section 321.501(c),] credit the money deducted to the general revenue fund. SECTION 11.41. Section 323.102(c), Tax Code, is amended to read as follows: (c) A tax imposed under Section 323.105 of this code or Chapter 326 or 383, Local Government Code, takes effect on the first day of the first calendar quarter after the expiration of the first complete calendar quarter occurring after the date on which the comptroller receives a notice of the action as required by Section 323.405(b). SECTION 11.42. Section 323.203, Tax Code, is amended by amending Subsections (b)-(e) and adding Subsection (m) to read as follows: (b) If a retailer has only one place of business in this state, all of the retailer's retail sales of taxable items [tangible personal property] are consummated at that place of business except as provided by Subsection (e). (c) If a retailer has more than one place of business in this state, a sale of a taxable item [tangible personal property] by the retailer is consummated at the retailer's place of business: (1) from which the retailer ships or delivers the item [property], if the retailer ships or delivers the item [property] to a point designated by the purchaser or lessee; or (2) where the purchaser or lessee takes possession of and removes the item [property], if the purchaser or lessee takes possession of and removes the item [property] from a place of business of the retailer. (d) If neither the possession of a taxable item [tangible personal property] is taken at nor shipment or delivery of the item [property] is made from the retailer's place of business in this state, the sale is consummated at: (1) the retailer's place of business in this state where the order is received; or (2) if the order is not received at a place of business of the retailer, the place of business from which the retailer's salesman who took the order operates. (e) A sale of a taxable item [tangible personal property] is consummated at the location in this state to which the item [property] is shipped or delivered or at which possession is taken by the customer if transfer of possession of the item [property] occurs at, or shipment or delivery of the item [property] originates from, a location in this state other than a place of business of the retailer and if: (1) the retailer is an itinerant vendor who has no place of business; (2) the retailer's place of business where the purchase order is initially received or from which the retailer's salesman who took the order operates is outside this state; or (3) the purchaser places the order directly with the retailer's supplier and the item [property] is shipped or delivered directly to the purchaser by the supplier. (m) A sale of a service described by Section 151.0047 to remodel, repair, or restore nonresidential real property is consummated at the location of the job site. However, if the job site includes areas in multiple municipalities, the sale is consummated at: (1) the retailer's place of business in this state where the order is received; or (2) if the order is not received at a place of business of the retailer, the place of business from which the retailer's agent who took the order operates. SECTION 11.43. Section 323.503, Tax Code, is amended to read as follows: Sec. 323.503. STATE'S SHARE. Before sending any money to a county under this subchapter the comptroller shall deduct two percent of the amount of the taxes collected within the county during the period for which a distribution is made as the state's charge for its services under this chapter and shall[, subject to premiums payments under Section 323.501(c),] credit the money deducted to the general revenue fund. SECTION 11.44. Section 502.1025(b), Transportation Code, is amended to read as follows: (b) A county tax assessor-collector shall retain under Section 502.102(b) fees based on the following percentage of the amounts calculated under Subsection [subsection] (a) during each of the following fiscal years: (1) in fiscal year 2006, 100 [90] percent; (2) in fiscal year 2007, 100 [80] percent; (3) in fiscal year 2008, 70 percent; (4) in fiscal year 2009, 60 percent; (5) in fiscal year 2010, 50 percent; (6) in fiscal year 2011, 40 percent; (7) in fiscal year 2012, 30 percent; (8) in fiscal year 2013, 20 percent; (9) in fiscal year 2014, 10 percent; and (10) in fiscal year 2015 and succeeding years, 0 percent. SECTION 11.45. The heading to Subchapter A, Chapter 16, Utilities Code, is amended to read as follows:
SUBCHAPTER A. ASSESSMENT ON UTILITY GROSS RECEIPTS [PUBLIC UTILITIES]
SECTION 11.46. The heading to Section 16.001, Utilities Code, is amended to read as follows: Sec. 16.001. ASSESSMENT ON UTILITY GROSS RECEIPTS [PUBLIC UTILITIES]. SECTION 11.47. Sections 16.001(a) and (b), Utilities Code, are amended to read as follows: (a) To defray the expenses incurred in the administration of this title, an assessment is imposed on each telecommunications utility, electric [public] utility, retail electric provider, and electric cooperative within the jurisdiction of the commission that serves the ultimate consumer, including each interexchange telecommunications carrier. (b) An assessment under this section is equal to one-sixth of one percent of the telecommunications utility's, electric [public] utility's, retail electric provider's, or electric cooperative's gross receipts from rates charged to the ultimate consumer in this state. SECTION 11.48. Section 16.002(b), Utilities Code, is amended to read as follows: (b) A telecommunications utility, electric [public] utility, retail electric provider, or electric cooperative may instead make quarterly payments due August 15, November 15, February 15, and May 15. SECTION 11.49. The following sections of the Tax Code are repealed: (1) Section 151.103(d); (2) Section 151.202(c); (3) Section 151.423; (4) Section 321.203(l), as added by Chapter 1310, Acts of the 78th Legislature, Regular Session, 2003; and (5) Section 323.203(l). SECTION 11.50. The changes in law made by this article to Section 201.102, Tax Code, apply to a refund claim or determination under Chapter 111, Tax Code, made in relation to a tax that is due on or after the effective date of this article. A refund claim or determination that is made in relation to a tax that is due before the effective date of this article is governed by the law in effect on the date the tax is due, and that law is continued in effect for that purpose. SECTION 11.51. The changes in law made by this article to Section 111.009, Tax Code, apply to a petition for redetermination for which the comptroller has not issued a final order or decision on or before the effective date of this article, regardless of the date on which the petition is filed. SECTION 11.52. The changes in law made by this article to Section 151.006, Tax Code, do not affect any matter that is the subject of litigation pending on the effective date of this article. SECTION 11.53. The change in law made to Section 171.109(g), Tax Code, by this article is a clarification of existing law and does not imply that existing law may be construed as inconsistent with the law as amended by this article. SECTION 11.54. If a change in law made to Section 16.001 or 16.002, Utilities Code, by this article conflicts with another bill enacted by the 79th Legislature, Regular Session, 2005, that amends Section 16.001 or 16.002, Utilities Code, including H.B. No. 1779, that other bill controls. SECTION 11.55. This article takes effect October 1, 2005.
ARTICLE 12. SALE OF CIGARETTES AND TOBACCO PRODUCTS
SECTION 12.01. Subchapter H, Chapter 161, Health and Safety Code, is amended by adding Section 161.0821 to read as follows: Sec. 161.0821. PURCHASE OF CIGARETTES OR TOBACCO PRODUCTS BY PERSONS YOUNGER THAN 18 YEARS OF AGE PROHIBITED. (a) A person who is younger than 18 years of age commits an offense if the person purchases or attempts to purchase cigarettes or tobacco products. (b) It is an exception to the application of this section that the person younger than 18 years of age is participating in an investigation or compliance inspection in accordance with Section 161.088 on behalf of the comptroller or a local law enforcement agency. (c) If conduct constituting an offense under this section also constitutes an offense under another section of this code or another provision of law, the actor may be prosecuted under either this section or the other section or provision. (d) For purposes of this section, a person attempts to purchase cigarettes or tobacco products if the person commits an act amounting to more than mere preparation that tends, but fails, to effect the purchase. (e) An offense under this section is a Class C misdemeanor. SECTION 12.02. (a) Chapter 161, Health and Safety Code, is amended by adding Subchapter V to read as follows:
SUBCHAPTER V. INTERNET OR MAIL-ORDER SALES OF
CIGARETTES AND TOBACCO PRODUCTS
Sec. 161.651. DEFINITIONS. (a) In this subchapter: (1) "Cigarette" has the meaning assigned by Section 154.001, Tax Code. (2) "Tobacco product" has the meaning assigned by Sections 155.001(15)(C)-(E), Tax Code. (b) In this subchapter, "common carrier," "consumer," "distributor," "importer," "manufacturer," "permit holder," "retailer," and "wholesaler" have the meanings assigned by Section 154.001 or 155.001, Tax Code, as applicable. Sec. 161.652. APPLICABILITY OF SUBCHAPTER TO INDIAN TRIBES. This subchapter does not apply to cigarette or tobacco product sales by an Indian tribe, as defined by 25 U.S.C. Section 450b(e), or by members of the Indian tribe, to a consumer in this state if the consumer is a verified adult member of that Indian tribe and the buyer and seller are each located on land over which the tribe exercises governmental power and that is owned or occupied by that tribe. Sec. 161.653. CERTAIN DELIVERIES OF CIGARETTES AND TOBACCO PRODUCTS PROHIBITED. (a) A distributor, importer, manufacturer, retailer, wholesaler, or other person engaged in the business of manufacturing, distributing, or selling cigarettes or tobacco products, including selling cigarettes or tobacco products over the Internet or through mail-order sales, may not sell, offer for sale, deliver, or cause to be delivered any cigarettes or tobacco products to a person in this state except in a face-to-face transaction at the time of purchase unless the cigarettes or tobacco products are in a container or wrapping plainly and visibly marked on the exterior in a manner that indicates that there are cigarettes or tobacco products inside and the sale or delivery is made to one of the following persons for purposes other than personal consumption by the recipient: (1) a permit holder, including the holder's employees or agents; (2) a manufacturer or importer of tobacco products or an export warehouse proprietor with a federal permit under 26 U.S.C. Section 5712 or an operator of a federally designated customs bonded warehouse under 19 U.S.C. Section 1311 or 1555; or (3) a person who is an officer, employee, or agent of the United States government, this state, or a department, agency, instrumentality, or political subdivision of the United States or this state acting within the scope of the person's official duties. (b) A person within the jurisdiction of this state's laws, including a common carrier or commercial delivery service, may not knowingly transport cigarettes or tobacco products on behalf of another person for commercial or business purposes for delivery to a person in this state other than a person described by Subsection (a)(1), (2), or (3). (c) Except as specifically provided by Subsection (b), this section does not apply to a common carrier or other delivery service operating within the scope of its business as a common carrier or delivery service. Sec. 161.654. PERMIT HOLDER LIST. The comptroller shall compile and make available on the comptroller's Internet website and by other means a list of all persons who hold a permit under Subchapter D, Chapter 154, or Subchapter C, Chapter 155, Tax Code. The comptroller shall periodically update the list of persons holding a permit under those subchapters. Sec. 161.655. VIOLATOR'S LIST. (a) The comptroller shall maintain a list of persons the comptroller determines have violated Section 161.653(a) or are violating or offering to violate that subsection. (b) The comptroller shall provide to the United States Postal Service, each common carrier and commercial delivery service operating in this state, and any other person who delivers cigarettes or tobacco products into or within this state a copy of this subchapter and the list maintained under Subsection (a). The comptroller shall provide updated copies of the list as the comptroller determines is appropriate. (c) Before adding a person to the list maintained under Subsection (a), the comptroller shall provide 10 days' written notice and an opportunity to be heard to that person. The notice must include the text of this subchapter. The notice may be made by an electronic communication. (d) The list maintained under Subsection (a) is confidential and not subject to disclosure under Chapter 552, Government Code. The comptroller and each person who receives a copy of the list from the comptroller under this section must maintain the list as confidential and may use the list only to comply with this subchapter. Sec. 161.656. CARRIER AND DELIVERY SERVICE RESPONSIBILITIES. (a) A person who is a common carrier or commercial delivery service within the jurisdiction of this state's laws who receives a copy of a list maintained under Section 161.655 may not make any deliveries in this state on behalf of a person identified in the list unless: (1) the person making the delivery knows or affirmatively believes in good faith that the package does not contain cigarettes or tobacco products; or (2) the delivery is made to a person described by Section 161.653(a)(1), (2), or (3). (b) A person who delivers cigarettes or tobacco products and receives a copy of a list maintained under Section 161.155: (1) is not required to: (A) inspect a package being delivered to determine whether the package contains cigarettes or tobacco products; (B) determine whether the list is complete, accurate, and up to date; or (C) determine whether any person ordering or requesting a delivery is in compliance with this subchapter; (2) is not subject to any penalty for: (A) failing to make a specific delivery on behalf of a person on the list; or (B) establishing and following a policy of not making deliveries: (i) in this state on behalf of a person on the list; (ii) of cigarettes or tobacco products in this state; or (iii) of cigarettes or tobacco products in this state for any person that is not a distributor, manufacturer, retailer, or wholesaler; (3) is not subject to criminal penalties for a violation of this subchapter unless the person knowingly violates this subchapter for the specific purpose of: (A) assisting a person engaged in the business of manufacturing, distributing, or selling cigarettes or tobacco products to violate this subchapter; or (B) profiting from the violation of this subchapter by another person; and (4) may collect an additional fee from the person's customers who order deliveries of cigarettes or tobacco products to recover any costs incurred by the person related to complying with this subchapter. (c) An employee of a common carrier or commercial delivery service or of any other person making deliveries for a carrier or delivery service is not subject to criminal or civil penalties for violating this subchapter unless the employee knowingly violates this subchapter for the specific purpose of assisting a person engaged in the business of manufacturing, distributing, or selling cigarettes or tobacco products in violation of this subchapter. Sec. 161.657. CIVIL PENALTIES. (a) Except as provided in Section 161.656(c), a person who violates this subchapter is subject to a civil penalty for each violation in an amount: (1) of at least $500 and not more than the greater of $5,000 or five times the value of the cigarettes or tobacco products at issue; and (2) equal to any profits, gain, gross receipts, or other benefits received from the violation. (b) A person who violates Section 161.653(a) must reimburse this state and the applicable political subdivisions of this state for all unpaid taxes that would otherwise have been imposed by this state and those political subdivisions on the cigarettes and tobacco products in question, plus interest, and for any other damages incurred by the state or the political subdivision as a result of the violation. Sec. 161.658. CRIMINAL PENALTIES. Except as provided by Sections 161.656(b)(3) and (c), a person who knowingly violates Section 161.653 or 161.656(a) commits an offense. An offense under this subsection is a Class A misdemeanor, except that if it is shown on the trial of the offense that the person has a previous conviction under this subsection, the offense is a state jail felony. Sec. 161.659. COSTS. (a) The comptroller shall deposit an amount equal to 50 percent of the civil penalties recovered by this state under this subchapter to be appropriated only to the comptroller, department, attorney general, and other state agencies to enforce this subchapter or make related investigations or to enforce other state laws relating to contraband cigarettes and tobacco products, the collection of taxes on cigarettes and tobacco products, and the prohibition of cigarette and tobacco product sales to minors. (b) In a civil action brought to enforce this subchapter, the state is entitled to recover the costs of investigation, costs of the action, and reasonable attorney's fees, plus interest. Sec. 161.660. ENFORCEMENT. (a) The attorney general may bring an action in the appropriate court in this state to enforce this subchapter, seek civil penalties and related damages, and equitable relief, or to prevent or restrain actions by a person or a person controlling the person that violate this subchapter or assist or encourage a violation of this subchapter. (b) On providing at least 15 days' notice to the attorney general, enforcement officials of a political subdivision of this state may bring an action in the appropriate court in this state, or join an action being brought by the attorney general, to seek damages and equitable relief or to prevent or restrain actions by a person or a person controlling the person that violate this subchapter or assist or encourage a violation of this subchapter. (c) On providing at least 15 days' notice to the attorney general, a person who holds a valid permit under 26 U.S.C. Section 5712 may bring an action in the appropriate court in this state, or join an action being brought by the attorney general, to prevent or restrain actions by a person or a person controlling the person that violate this subchapter or assist or encourage a violation of this subchapter. (d) On receiving notice from another person of the person's intent to bring an action under this subchapter in the appropriate court in this state, the attorney general may choose to join in the other person's action or bring an action by this state in its stead and shall inform the person providing notice of how the attorney general will proceed not later than the 15th day after receiving the notice. (e) The attorney general shall make public, by posting on the Internet and other means, a list of all actions taken to enforce this subchapter and a list of all persons found to have violated this subchapter, including the persons' names, addresses, and any other information the attorney general believes may be useful to other jurisdictions enforcing laws prohibiting or restricting cigarette or tobacco product sales for personal consumption in which the seller and buyer do not initiate and complete the entire transaction in each other's physical presence. (b) Effective September 1, 2006, Subchapter R, Chapter 161, Health and Safety Code, as added by Chapter 730, Acts of the 78th Legislature, Regular Session, 2003, is repealed. (c) Not later than January 1, 2006, the comptroller shall post the list of persons who hold permits under Subchapter D, Chapter 154, Tax Code, or Subchapter C, Chapter 155, Tax Code, as required by Section 161.654, Health and Safety Code, as added by this section. (d) Not later than June 1, 2006, the comptroller shall create and distribute the list as required by Section 161.655, Health and Safety Code, as added by this section. (e) Notwithstanding Subchapter V, Chapter 161, Health and Safety Code, as added by this section, a person is not subject to a penalty for a violation of that subchapter before September 1, 2006. (f) The change in law made by this section applies only to an offense committed on or after September 1, 2006. An offense committed before September 1, 2006, is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this subsection, an offense was committed before September 1, 2006, if any element of the offense was committed before that date. (g) This section takes effect September 1, 2005, except that Sections 161.657-161.660, Health and Safety Code, as added by this section, take effect September 1, 2006. SECTION 12.03. (a) Article 59.01(2), Code of Criminal Procedure, as amended by Section 2.141, Chapter 198, Section 17, Chapter 257, and Section 3, Chapter 649, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows: (2) "Contraband" means property of any nature, including real, personal, tangible, or intangible, that is: (A) used in the commission of: (i) any first or second degree felony under the Penal Code; (ii) any felony under Section 15.031(b), 21.11, 38.04, Subchapter B of Chapter 43, or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal Code; or (iii) any felony under The Securities Act (Article 581-1 et seq., Vernon's Texas Civil Statutes); (B) used or intended to be used in the commission of: (i) any felony under Chapter 481, Health and Safety Code (Texas Controlled Substances Act); (ii) any felony under Chapter 483, Health and Safety Code; (iii) a felony under Chapter 153, Finance Code; (iv) any felony under Chapter 34, Penal Code; (v) a Class A misdemeanor under Subchapter B, Chapter 365, Health and Safety Code, if the defendant has been previously convicted twice of an offense under that subchapter; (vi) any felony under Chapter 152, Finance Code; [or] (vii) any felony under Chapter 31, 32, or 37, Penal Code, that involves the state Medicaid program, or any felony under Chapter 36, Human Resources Code; (viii) a Class A misdemeanor or state jail felony under Subchapter U, Chapter 161, Health and Safety Code; or (ix) [(vii)] a Class B misdemeanor under Section 35.58, Business & Commerce Code; (C) the proceeds gained from the commission of a felony listed in Paragraph (A) or (B) of this subdivision, a misdemeanor listed in Paragraph (B)(ix) [(B)(vii)] of this subdivision, or a crime of violence; or (D) acquired with proceeds gained from the commission of a felony listed in Paragraph (A) or (B) of this subdivision, a misdemeanor listed in Paragraph (B)(ix) [(B)(vii)] of this subdivision, or a crime of violence. (b) The change in law made by this section applies only to an offense committed on or after September 1, 2006. An offense committed before September 1, 2006, is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this subsection, an offense was committed before September 1, 2006, if any element of the offense was committed before that date. (c) This section takes effect September 1, 2006.
ARTICLE 13. COMMERCIAL DRIVER'S LICENSES
SECTION 13.01. Section 522.021(a), Transportation Code, is amended to read as follows: (a) An application for a commercial driver's license or commercial driver learner's permit must include: (1) the full name and current residence and mailing address of the applicant; (2) a physical description of the applicant, including sex, height, and eye color; (3) the applicant's date of birth; (4) the applicant's social security number, unless the application is for a nonresident commercial driver's license and the applicant is a resident of a foreign jurisdiction; (5) certifications, including those required by 49 C.F.R. Section 383.71(a); [and] (6) if the application is for a nonresident commercial driver's license and the applicant is a resident of a foreign jurisdiction, a copy of: (A) a social security card; or (B) a passport issued to the applicant by the country of which the applicant is a resident and a visa, each containing an identification number and an expiration date; and (7) any other information required by the department. SECTION 13.02. Section 522.029, Transportation Code, is amended by amending Subsection (a) and adding Subsection (j) to read as follows: (a) The fee for a commercial driver's license or commercial driver learner's permit issued by the department is $60, except as provided by Subsections (f), [and] (h), and (j). (j) The fee for a nonresident commercial driver's license is $100. SECTION 13.03. Section 522.051, Transportation Code, is amended by amending Subsection (a) and adding Subsection (f) to read as follows: (a) Except as provided by Subsection (f) and Section 522.033, an original commercial driver's license or commercial driver learner's permit expires six years after the applicant's next birthday. (f) A nonresident commercial driver's license issued to an applicant described by Section 522.021(a)(6)(B) who submitted a copy of a visa expires on the date the person's visa expires.
ARTICLE 14. EFFECTIVE DATE
SECTION 14.01. 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.