By: Ogden S.B. No. 1863
(In the Senate - Filed April 19, 2005; April 19, 2005, read
first time and referred to Committee on Finance; May 16, 2005,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 9, Nays 5; May 16, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1863 By: Ogden
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. AUTHORITY OF LEGISLATURE TO TAKE
CERTAIN ACTIONS WITH RESPECT TO APPROPRIATED FUNDS
SECTION 1.01. Notwithstanding any statute to the contrary,
the legislature, in its discretion, may determine the amount of
each appropriation of state funds. The amounts required by statute
for entities that receive state funds under the General
Appropriations Act, 79th Legislature, Regular Session, 2005, may be
reduced or eliminated in order to achieve a balanced budget.
SECTION 1.02. This article expires September 1, 2007.
ARTICLE 2. REGISTRATION FEE FOR CERTAIN LOBBYISTS
SECTION 2.01. 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 2.02. This article takes effect December 1, 2005.
ARTICLE 3. FEES FOR CERTAIN INSPECTIONS CONDUCTED
BY THE COMMISSION ON JAIL STANDARDS
SECTION 3.01. 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 3.02. This article takes effect September 1, 2005.
ARTICLE 4. CERTAIN AUDITS OF STATE AGENCY EXPENDITURES
SECTION 4.01. 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 4.02. 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 5. FISCAL MATTERS
PERTAINING TO REGULATION OF OIL-RELATED AND GAS-RELATED ACTIVITIES
SECTION 5.01. Section 40.152, Natural Resources Code, is
amended by adding Subsection (c) to read as follows:
(c) Notwithstanding Subsection (a)(9), the legislature may
appropriate to the General Land Office for erosion response
projects under Subchapter H, Chapter 33, and for implementation of
the coastal management program under Subchapter F, Chapter 33,
money from the fund in an amount that exceeds the amount of interest
accruing to the fund annually.
SECTION 5.02. Section 85.2021, Natural Resources Code, is
amended to read as follows:
Sec. 85.2021. DRILLING PERMIT FEE. (a) With each
application or materially amended application for a permit to
drill, deepen, plug back, or reenter a well, the applicant shall
submit to the commission a nonrefundable fee of:
(1) $300 [$200] if the total depth of the well is 2,000
feet or less, of which the commission shall deposit:
(A) $200 to the credit of the oil-field cleanup
fund; and
(B) $100 to the credit of the general revenue
fund to be used only for the administration of this state's oil and
gas conservation laws;
(2) $350 [$225] if the total depth of the well is
greater than 2,000 feet but less than or equal to 4,000 feet, of
which the commission shall deposit:
(A) $225 to the credit of the oil-field cleanup
fund; and
(B) $125 to the credit of the general revenue
fund to be used only for the administration of this state's oil and
gas conservation laws;
(3) $400 [$250] if the total depth of the well is
greater than 4,000 feet but less than or equal to 9,000 feet, of
which the commission shall deposit:
(A) $250 to the credit of the oil-field cleanup
fund; and
(B) $150 to the credit of the general revenue
fund to be used only for the administration of this state's oil and
gas conservation laws; and
(4) $500 [$300] if the total depth of the well is
greater than 9,000 feet, of which the commission shall deposit:
(A) $300 to the credit of the oil-field cleanup
fund; and
(B) $200 to the credit of the general revenue
fund to be used only for the administration of this state's oil and
gas conservation laws.
(b) An applicant shall submit an additional nonrefundable
fee of $200 when a Rule 37 spacing or a Rule 38 density exception
review is requested. The commission shall deposit the entire
amount of the fee to the credit of the oil-field cleanup fund.
(c) An applicant shall submit an additional nonrefundable
fee of $225 [$150] when requesting that the commission expedite the
application for a permit to drill, deepen, plug back, or reenter a
well. The commission shall deposit:
(1) $150 of the fee to the credit of the oil-field
cleanup fund; and
(2) $75 of the fee to the credit of the general revenue
fund to be used only for the administration of this state's oil and
gas conservation laws.
(d) The deposit of fees to the credit of the general revenue
fund under this section is subject to Section 91.111(b-1) [All fees
collected under this section shall be deposited in the state
oil-field cleanup fund].
SECTION 5.03. Subchapter F, Chapter 85, Natural Resources
Code, is amended by adding Section 85.2022 to read as follows:
Sec. 85.2022. INACTIVE WELL FEE. (a) If two-thirds or
more of the wells of an operator with five or more wells have been
inactive for three years or more, the operator shall submit to the
commission a nonrefundable inactive well fee of $100 for each well
that has been inactive for three years or more.
(b) The inactive well fee shall be paid annually at the time
an operator's organization report is due. An organization report
may not be approved until any inactive well fee due under this
section has been paid.
(c) Fees collected under this section shall be deposited to
the credit of the oil-field cleanup fund.
SECTION 5.04. Section 91.1013, Natural Resources Code, is
amended to read as follows:
Sec. 91.1013. APPLICATION FEES. (a)(1) With each
application for a fluid injection well permit, the applicant shall
submit to the commission a nonrefundable fee of $300, of which the
commission shall deposit:
(A) $200 to the credit of the oil-field cleanup
fund; and
(B) $100 to the credit of the general revenue
fund to be used only for the administration of this state's oil and
gas conservation laws, except as provided by Section 91.111(b-1).
(2) In this section, "fluid injection well" means any
well used to inject fluid or gas into the ground in connection with
the exploration or production of oil or gas other than an oil and
gas waste disposal well regulated by the commission pursuant to
Chapter 27, Water Code.
(b) With each application for a permit to discharge to
surface water under this chapter and commission rules, other than a
permit for a discharge that meets National Pollutant Discharge
Elimination System requirements for agricultural or wildlife use,
the applicant shall submit to the commission a nonrefundable fee of
$500, of which the commission shall deposit:
(1) $300 to the credit of the oil-field cleanup fund;
and
(2) $200 to the credit of the general revenue fund to
be used only for the administration of this state's oil and gas
conservation laws, except as provided by Section 91.111(b-1).
[(c) Fees collected under this section shall be deposited in
the state oil-field cleanup fund.]
SECTION 5.05. Section 91.111, Natural Resources Code, is
amended by amending Subsection (c) and adding Subsection (b-1) to
read as follows:
(b-1) Notwithstanding Sections 85.2021, 91.1013, and 91.605
and notwithstanding Section 27.0321, Water Code, when during a
state fiscal year the commission deposits a total of $2.9 million of
fees collected under those sections to the credit of the general
revenue fund for the administration of this state's oil and gas
conservation laws, the commission shall deposit to the credit of
the oil-field cleanup fund any additional amounts collected under
those sections during the remainder of that state fiscal year that
those sections direct to be deposited in the general revenue fund.
(c) The fund consists of:
(1) penalties imposed under Section 85.381 for
violation of a law, order, or rule relating to well plugging
requirements;
(2) proceeds from bonds and other financial assurances
required by this chapter, subject to the refund provisions of
Section 91.1091;
(3) private contributions, including contributions
made under Section 89.084;
(4) expenses collected under Section 89.083;
(5) money deposited to the credit of the fund [fees
imposed] under Section 85.2021;
(6) civil penalties collected for violations of
Chapter 89 or of rules or orders relating to plugging that are
adopted under this code;
(7) proceeds collected under Sections 89.085 and
91.115;
(8) interest earned on the funds deposited in the
fund;
(9) fees collected under Section 91.104;
(10) civil penalties or costs recovered under Section
91.457 or 91.459;
(11) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(12) costs recovered under Section 91.113(f);
(13) money deposited to the credit of the fund
[hazardous oil and gas waste generation fees collected] under
Section 91.605;
(14) oil-field cleanup regulatory fees on oil
collected under Section 81.116;
(15) oil-field cleanup regulatory fees on gas
collected under Section 81.117;
(16) fees for a reissued certificate collected under
Section 85.167;
(17) money deposited to the credit of the fund [fees
collected] under Section 91.1013;
(18) fees collected under Section 89.088;
(19) penalties collected under Section 81.0531;
(20) fees collected under Section 91.142;
(21) fees collected under Section 91.654;
(22) costs recovered under Sections 91.656 and 91.657;
(23) fees collected under Section 85.2022;
(24) money deposited to the credit of the fund under
Section 27.0321, Water Code;
(25) two-thirds of the fees collected under Section
81.0521;
(26) amounts required to be deposited in the fund
under Subsection (b-1); and
(27) [(24)] legislative appropriations.
SECTION 5.06. Section 91.142, Natural Resources Code, is
amended by adding Subsections (i) and (j) to read as follows:
(i) If an entity does not pay to the commission the fee
required by Subsection (g) on or before the fifth business day after
the due date as determined by the commission, the commission shall
suspend the organization report of the entity until the entity pays
to the commission the fee required by that subsection and a penalty
in an amount equal to the fee.
(j) All fees and penalties collected under this section
shall be deposited in the oil-field cleanup fund.
SECTION 5.07. Subsection (e), Section 91.605, Natural
Resources Code, is amended to read as follows:
(e) The fees collected under this section shall be deposited
to the credit of [in] the general revenue fund to be used only for
the administration of this state's oil and gas conservation laws,
except as provided by Section 91.111(b-1) [oil-field cleanup fund].
SECTION 5.08. Section 27.0321, Water Code, is amended to
read as follows:
Sec. 27.0321. APPLICATION FEE. With each application for
an oil and gas waste disposal well permit, the applicant shall
submit to the railroad commission a nonrefundable fee of $300, of
which the railroad commission shall deposit:
(1) $100 to the credit of the oil-field cleanup fund;
and
(2) $200 to the credit of the general revenue fund to
be used only for the administration of this state's oil and gas
conservation laws, except as provided by Section 91.111(b-1),
Natural Resources Code.
SECTION 5.09. This article takes effect September 1, 2005.
ARTICLE 6. WAIVER OF AND SUPPLEMENTAL HEALTH COVERAGE FOR STATE
EMPLOYEES
SECTION 6.01. 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 6.02. Subchapter C, Chapter 1551, Insurance Code,
is amended by adding Section 1551.1045 to read as follows:
Sec. 1551.1045. WAIVER. (a) Subject to Subsection (b), an
employee or annuitant may waive in writing any coverage provided
under this chapter.
(b) To waive coverage under the basic coverage plan, a
full-time employee must demonstrate, in the manner required by the
board of trustees, that the employee is covered by another health
benefit plan that provides substantially equivalent coverage, as
determined by the board of trustees, to the coverage provided by the
basic coverage plan.
SECTION 6.03. Subchapter E, Chapter 1551, Insurance Code,
is amended by adding Section 1551.222 to read as follows:
Sec. 1551.222. INCENTIVE PAYMENTS. (a) The board of
trustees may allow an incentive payment under this section to an
employee who elects to waive coverage under the basic coverage plan
for employees as provided by Section 1551.1045(b).
(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, in the manner prescribed by the board of
trustees, only to pay for other group coverage plans provided under
the group benefits program.
(c) The board of trustees, at the time of initial enrollment
in the group benefits program and during subsequent open enrollment
periods, shall inform employees that they may make an election
described by Subsection (a), if eligible, and receive any
authorized incentive payment.
SECTION 6.04. 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; INCENTIVE PAYMENTS. (a) Notwithstanding any other
provision of this subchapter, the state contribution for an
employee's coverage under this subchapter may be reduced, as
provided in the General Appropriations Act, to reflect the reduced
cost of coverage for an employee who elects to waive basic coverage
as provided by Section 1551.1045(b).
(b) Instead of the full state contribution for an employee
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 7. COLLECTION OF MOTOR FUELS TAXES
SECTION 7.01. 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 7.02. 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 7.03. 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 7.04. 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 7.05. 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 7.06. 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 7.07. 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 7.08. 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 7.09. 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 7.10. 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 7.11. 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 7.12. 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 7.13. 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 7.14. 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 7.15. 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 7.16. 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 7.17. 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 7.18. 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 7.19. 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 7.20. Subsection (h), Section 162.016, Tax Code, is
repealed.
SECTION 7.21. 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 7.22. This article takes effect September 1, 2005.
ARTICLE 8. ELIGIBILITY FOR MEDICAL ASSISTANCE AND CHILDREN'S
HEALTH INSURANCE PROGRAMS
SECTION 8.01. Notwithstanding other law, during the state
fiscal biennium beginning September 1, 2005, the executive
commissioner of the Health and Human Services Commission may
provide for periods of continuous eligibility under the state
Medicaid program and the children's health insurance program that
are designed to provide savings to the state without imposing
unreasonably onerous burdens on persons who are eligible to receive
services or coverage under those programs.
SECTION 8.02. If the executive commissioner of the Health
and Human Services Commission determines that under federal law or
as a condition of receiving federal funding a waiver or
authorization from a federal agency is necessary to provide for a
desired period of continuous eligibility, the executive
commissioner may seek the waiver or authorization.
ARTICLE 9. EFFECTIVE DATE
SECTION 9.01. Except as otherwise provided by this Act,
this Act takes effect immediately if it receives a vote of
two–thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution. If this Act does not
receive the vote necessary for immediate effect, except as
otherwise provided by this Act, this Act takes effect on the 91st
day after the last day of the legislative session.
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