80R21835 E

By: Duncan S.B. No. 1848

Substitute the following for S.B. No. 1848:

By: ChisumC.S.S.B. No. 1848C.S.S.B. No. 1848 Chisum C.S.S.B. No. 1848

A BILL TO BE ENTITLED

AN ACT

relating to state fiscal matters.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 42.2516, Education Code, is amended by amending Subsection (b) and adding Subsection (b-2) to read as follows:

(b) Subject to Subsections (b-2), (g), and (h), but notwithstanding any other provision of this title, a school district is entitled to state revenue necessary to provide the district with the sum of:

(1) the amount of state revenue necessary to maintain state and local revenue per student in weighted average daily attendance in the amount equal to the greater of:

(A) the amount of state and local revenue per student in weighted average daily attendance for the maintenance and operations of the district available to the district for the 2005-2006 school year;

(B) the amount of state and local revenue per student in weighted average daily attendance for the maintenance and operations of the district to which the district would have been entitled for the 2006-2007 school year under this chapter, as it existed on January 1, 2006, or, if the district would have been subject to Chapter 41, as that chapter existed on January 1, 2006, the amount to which the district would have been entitled under that chapter, based on the funding elements in effect for the 2005-2006 school year, if the district imposed a maintenance and operations tax at the rate adopted by the district for the 2005 tax year; or

(C) the amount of state and local revenue per student in weighted average daily attendance for the maintenance and operations of the district to which the district would have been entitled for the 2006-2007 school year under this chapter, as it existed on January 1, 2006, or, if the district would have been subject to Chapter 41, as that chapter existed on January 1, 2006, the amount to which the district would have been entitled under that chapter, based on the funding elements in effect for the 2005-2006 school year, if the district imposed a maintenance and operations tax at the rate equal to the rate described by Section 26.08(i) or (k)(1), Tax Code, as applicable, for the 2006 tax year;

(2) an amount equal to the product of $2,500 multiplied by the number of classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, Chapter 21, and full-time school nurses employed by the district and entitled to a minimum salary under Section 21.402; and

(3) an amount equal to the product of $275 multiplied by the number of students in average daily attendance in grades nine through 12 in the district.

(b-2) The amount determined for a school district under Subsection (b) is increased or reduced as follows:

(1) if for any school year the district is entitled to a greater allotment under Section 42.155 or greater additional state aid under Section 42.2515 than the allotment or additional state aid to which the district was entitled under Section 42.155 or 42.2515, as applicable, for the school year on which the district's entitlement under Subsection (b) is based, the district's entitlement under Subsection (b) is increased by an amount equal to the difference between the amount to which the district is entitled under Section 42.155 or 42.2515, as applicable, for that school year and the amount to which the district was entitled under the applicable section, as applicable for:

(A) the 2005-2006 school year, if the amount determined for the district under Subsection (b) is determined under Subsection (b)(1)(A); or

(B) the 2006-2007 school year, if the amount determined for the district under Subsection (b) is determined under Subsection (b)(1)(B) or (C); and

(2) if for any school year the district is not entitled to an allotment under Section 42.155 or additional state aid under Section 42.2515 or is entitled to a lesser allotment or less additional state aid under the applicable section than the allotment or additional state aid to which the district was entitled under the applicable section for the school year on which the district's entitlement under Subsection (b) is based, the district's entitlement under Subsection (b) is reduced by an amount equal to the difference between the amount to which the district was entitled under Section 42.155 or 42.2515, as applicable, for the 2005-2006 or 2006-2007 school year, as appropriate based on whether the district's entitlement under Subsection (b) is determined under Subsection (b)(1)(A), (B), or (C), and the amount to which the district is entitled under the applicable section for the current school year.

SECTION 2. Subsections (a) and (c), Section 42.253, Education Code, are amended to read as follows:

(a) For each school year the commissioner shall determine:

(1) the amount of money to which a school district is entitled under Subchapters B and C;

(2) the amount of money to which a school district is entitled under Sections 42.2516(b)(2) and (3);

(3) the amount of money to which a school district is entitled under Subchapter F;

(4) [(3)] the amount of money allocated to the district from the available school fund;

(5) [(4)] the amount of each district's tier one local share under Section 42.252; and

(6) [(5)] the amount of each district's tier two local share under Section 42.302.

(c) Each school district is entitled to an amount equal to the difference for that district between the sum of Subsections (a)(1), [and] (a)(2), and (a)(3) and the sum of Subsections [(a)(3),] (a)(4), [and] (a)(5), and (a)(6).

SECTION 3. Subsection (b), Section 42.259, Education Code, is amended to read as follows:

(b) Payments from the foundation school fund to each category 1 school district shall be made as follows:

(1) for amounts to which a district is entitled under Section 42.2516(b)(2) or (3):

(A) 15 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) [(2)] 80 percent of the yearly entitlement of the district shall be paid in eight equal installments to be made on or before the 25th day of October, November, December, January, March, May, June, and July; and

(C) [(3)] five percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of February; and

(2) for all other amounts to which a district is entitled:

(A) 14 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) 45 percent of the yearly entitlement of the district shall be paid in five equal installments to be made on or before the 25th day of October, November, December, June, and July;

(C) 33 percent of the yearly entitlement of the district shall be paid in three equal installments to be made on or before the 25th day of January, March, and May;

(D) six percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of February; and

(E) two percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of April.

SECTION 4. Subsections (c), (d), and (f), Section 42.259, Education Code, as effective until August 1, 2009, are amended to read as follows:

(c) Payments from the foundation school fund to each category 2 school district shall be made as follows:

(1) for amounts to which a district is entitled under Section 42.2516(b)(2) or (3):

(A) 22 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) [(2)] 18 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October;

(C) [(3)] 9.5 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of November;

(D) [(4)] 7.5 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of April;

(E) [(5)] five percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of May;

(F) [(6)] 10 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of June;

(G) [(7)] 13 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of July; and

(H) [(8)] 15 percent of the yearly entitlement of the district shall be paid in an installment to be made after the fifth day of September and not later than the 10th day of September of the calendar year following the calendar year of the payment made under Paragraph (A); and

(2) for all other amounts to which a district is entitled:

(A) 15 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) 13 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October;

(C) 14 percent of the yearly entitlement of the district shall be paid in two equal installments to be made on or before the 25th day of November and June;

(D) 18 percent of the yearly entitlement of the district shall be paid in three equal installments to be made on or before the 25th day of January, February, and March;

(E) 11 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of April;

(F) 10 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of May;

(G) nine percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of July; and

(H) 10 percent of the yearly entitlement of the district shall be paid in an installment to be made after the fifth day of September and not later than the 10th day of September of the calendar year following the calendar year of the payment made under Paragraph (A) [Subdivision (1)].

(d) Payments from the foundation school fund to each category 3 school district shall be made as follows:

(1) for amounts to which a district is entitled under Section 42.2516(b)(2) or (3):

(A) 45 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) [(2)] 35 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October; and

(C) [(3)] 20 percent of the yearly entitlement of the district shall be paid in an installment to be made after the fifth day of September and not later than the 10th day of September of the calendar year following the calendar year of the payment made under Paragraph (A); and

(2) for all other amounts to which a district is entitled:

(A) seven percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) six percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October;

(C) 85 percent of the yearly entitlement of the district shall be paid in five equal installments to be made on or before the 25th day of January, February, March, April, and May; and

(D) two percent of the yearly entitlement of the district shall be paid in an installment to be made after the fifth day of September and not later than the 10th day of September of the calendar year following the calendar year of the payment made under Paragraph (A) [Subdivision (1)].

(f) Except as provided by Subsection (c)(1)(H) or (2)(H) or (d)(1)(C) or (2)(D) [(c)(8) or (d)(3)], any previously unpaid additional funds from prior years owed to a district shall be paid to the district together with the September payment of the current year entitlement.

SECTION 5. Subsections (c) and (d), Section 42.259, Education Code, as effective August 1, 2009, are amended to read as follows:

(c) Payments from the foundation school fund to each category 2 school district shall be made as follows:

(1) for amounts to which a district is entitled under Section 42.2516(b)(2) or (3):

(A) 22 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) [(2)] 18 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October;

(C) [(3)] 9.5 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of November;

(D) [(4)] 7.5 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of April;

(E) [(5)] five percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of May;

(F) [(6)] 10 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of June;

(G) [(7)] 13 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of July; and

(H) [(8)] 15 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of August; and

(2) for all other amounts to which a district is entitled:

(A) 15 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) 13 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October;

(C) 14 percent of the yearly entitlement of the district shall be paid in two equal installments to be made on or before the 25th day of November and June;

(D) 18 percent of the yearly entitlement of the district shall be paid in three equal installments to be made on or before the 25th day of January, February, and March;

(E) 11 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of April;

(F) 20 percent of the yearly entitlement of the district shall be paid in two equal installments to be made on or before the 25th day of May and August; and

(G) nine percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of July.

(d) Payments from the foundation school fund to each category 3 school district shall be made as follows:

(1) for amounts to which a district is entitled under Section 42.2516(b)(2) or (3):

(A) 45 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) [(2)] 35 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October; and

(C) [(3)] 20 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of August; and

(2) for all other amounts to which a district is entitled:

(A) seven percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(B) six percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October;

(C) 85 percent of the yearly entitlement of the district shall be paid in five equal installments to be made on or before the 25th day of January, February, March, April, and May; and

(D) two percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of August.

SECTION 6. Subchapter E, Chapter 42, Education Code, is amended by adding Section 42.2591 to read as follows:

Sec. 42.2591. MODIFICATION OF PAYMENT SCHEDULE. (a) For the fiscal year ending August 31, 2008, or August 31, 2009, a school district may apply to the commissioner for a modification of the payment schedule provided by Section 42.259, as amended by S.B. No. 1848, Acts of the 80th Legislature, Regular Session, 2007, if application of that payment schedule would cause the district financial hardship as a result of the effect of the schedule on the district's cash flow.

(b) A modification granted under this section expires at the end of the fiscal year for which the modification is granted. A school district may seek a modification for each fiscal year.

(c) A modification granted under this section may affect only the timing of payments made under the schedule provided by Section 42.259, and may not result in a net change to the total amount of funds a school district receives during the fiscal year for which the modification is granted.

(d) The commissioner shall adopt rules necessary to implement this section.

(e) A decision of the commissioner under this section is final and may not be appealed.

(f) This section expires September 1, 2009.

SECTION 7. Subdivision (1), Subsection (k), Section 57.48, Education Code, is amended to read as follows:

(1) "Compensation" means base salary or wages, longevity pay, hazardous duty pay, benefit replacement pay, a retirement annuity, or an emolument provided in lieu of base salary or wages.

SECTION 8. Subsection (c), Section 73.003, Government Code, is amended to read as follows:

(c) If a case is transferred to a court that regularly sits not more than 35 miles from the place the court from which the case was transferred regularly sits, the court, at the discretion of its chief justice and after notice to the parties or their counsel, may hear oral arguments at the place it regularly sits. For purposes of this subsection, the place where a court of appeals regularly sits is that specified in Subchapter C, Chapter 22, and the mileage between the places is that determined [by the comptroller] under Chapter 660.

SECTION 9. Subdivision (1), Subsection (l), Section 403.055, Government Code, is amended to read as follows:

(1) "Compensation" means base salary or wages, longevity pay, hazardous duty pay, benefit replacement pay, a retirement annuity, or an emolument provided in lieu of base salary or wages.

SECTION 10. Subsection (d), Section 403.0551, Government Code, is amended to read as follows:

(d) This section does not authorize the comptroller to deduct the amount of a state employee's indebtedness to a state agency from any amount of compensation owed by the agency to the employee, the employee's successor, or the assignee of the employee or successor. In this subsection:

(1) [,] "compensation[,]" has the meaning assigned by Section 403.055; and

(2) "indebtedness," "state agency," "state employee," and "successor" have the meanings assigned by Section 666.001.

SECTION 11. Section 404.024, Government Code, is amended by amending Subsections (b) and (l) and adding Subsections (m) and (n) to read as follows:

(b) State funds not deposited in state depositories shall be invested by the comptroller in:

(1) direct security repurchase agreements;

(2) reverse security repurchase agreements;

(3) direct obligations of or obligations the principal and interest of which are guaranteed by the United States;

(4) direct obligations of or obligations guaranteed by agencies or instrumentalities of the United States government;

(5) bankers' acceptances that:

(A) are eligible for purchase by the Federal Reserve System;

(B) do not exceed 270 days to maturity; and

(C) are issued by a bank whose other comparable short-term obligations are rated in [that has received] the highest short-term [credit] rating category, within which there may be subcategories or gradations indicating relative standing, including such subcategories or gradations as "rating category" or "rated," by a nationally recognized statistical rating organization, as defined by Rule 2a-7 (17 C.F.R. Section 270.2a-7), promulgated under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.) by the Securities and Exchange Commission [investment rating firm];

(6) commercial paper that:

(A) does not exceed 270 days to maturity; and

(B) except as provided by Subsection (i), is issued by an entity whose other comparable short-term obligations are rated in [has received] the highest short-term [credit] rating category by a nationally recognized statistical rating organization [investment rating firm];

(7) contracts written by the treasury in which the treasury grants the purchaser the right to purchase securities in the treasury's marketable securities portfolio at a specified price over a specified period and for which the treasury is paid a fee and specifically prohibits naked-option or uncovered option trading;

(8) direct obligations of or obligations guaranteed by the Inter-American Development Bank, the International Bank for Reconstruction and Development (the World Bank), the African Development Bank, the Asian Development Bank, and the International Finance Corporation that have received the highest long-term [credit] rating categories for debt obligations by a nationally recognized statistical rating organization [investment rating firm];

(9) bonds issued, assumed, or guaranteed by the State of Israel;

(10) obligations of a state or an agency, county, city, or other political subdivision of a state;

(11) mutual funds secured by obligations that are described by Subdivisions (1) through (6) or by obligations consistent with Rule 2a-7 (17 C.F.R. Section 270.2a-7), promulgated by the Securities and Exchange Commission, including pooled funds:

(A) established by the Texas Treasury Safekeeping Trust Company;

(B) operated like a mutual fund; and

(C) with portfolios consisting only of dollar-denominated securities; [and]

(12) foreign currency for the sole purpose of facilitating investment by state agencies that have the authority to invest in foreign securities;

(13) asset-backed securities, as defined by the Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7), that are rated at least A or its equivalent by a nationally recognized statistical rating organization and that have a weighted-average maturity of five years or less; and

(14) corporate debt obligations that are rated at least A or its equivalent by a nationally recognized statistical rating organization and mature in five years or less from the date on which the obligations were "acquired," as defined by the Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7).

(l) The comptroller may lend securities under procedures established by the comptroller. The procedures must be consistent with industry practice and must include a requirement to fully secure the loan with cash, obligations described by Subsections (b)(1)-(6), or a combination of cash and the described obligations. Notwithstanding any law to the contrary, cash may be reinvested in the items permitted under Subsection (b) or mutual funds, as defined by the Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7) [In this subsection, "obligation" means an item described by Subsections (b)(1)-(6)].

(m) In entering into a direct security repurchase agreement or a reverse security repurchase agreement, the comptroller may agree to accept cash on an overnight basis in lieu of the securities, obligations, or participation certificates identified in Section 404.001(3). Cash held by the state under this subsection is not a deposit of state or public funds for purposes of any statute, including this subchapter or Subchapter D, that requires a deposit of state or public funds to be collateralized by eligible securities.

(n) Notwithstanding any other law to the contrary, any government investment pool created to function as a money market mutual fund and managed by the comptroller or the Texas Treasury Safekeeping Trust Company may invest the funds it receives in investments that are "eligible securities," as defined by the Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7), if it maintains a dollar-weighted average portfolio maturity of 90 days or less, with the maturity of each portfolio security calculated in accordance with Rule 2a-7 (17 C.F.R. Section 270.2a-7), and meets the diversification requirements of Rule 2a-7.

SECTION 12. Subchapter A, Chapter 442, Government Code, is amended by adding Sections 442.0051, 442.0052, and 442.0053 to read as follows:

Sec. 442.0051. FEES. The commission by rule may establish reasonable fees for commission purposes under this chapter, including an admission fee appropriate to a historic site under its jurisdiction.

Sec. 442.0052. VOLUNTEER SERVICES. (a) Except as provided by Subsection (b), the commission may use the services of volunteers to help carry out the duties and responsibilities of the commission.

(b) A volunteer may not enforce this code.

Sec. 442.0053. ELIGIBILITY CRITERIA FOR INCLUSION OF REAL PROPERTY IN STATE HISTORIC SITES SYSTEM. (a) The commission by rule shall adopt criteria for determining the eligibility of real property donated to the commission for inclusion in the historic sites system.

(b) The commission may accept a donation of real property that satisfies the criteria adopted under Subsection (a).

(c) The commission may renovate or restore donated real property, including improvements to the property, or construct improvements on the donated real property as necessary and prudent.

SECTION 13. Section 442.015, Government Code, is amended by amending Subsections (a), (b), and (f) and adding Subsections (h) through (l) to read as follows:

(a) Notwithstanding Sections 403.094 and 403.095, the Texas preservation trust fund account is a separate account in the general revenue fund. The account consists of transfers made to the account, loan repayments, grants and donations made for the purposes of this program, proceeds of sales, earnings [income earned] on [money in] the account, and any other money received under this section. Distributions from [Money in] the account may be used only for the purposes of this section and may not be used to pay operating expenses of the commission. Money allocated to the commission's historic preservation grant program shall be deposited to the credit of the account. Earnings [Income earned] on [money in] the account shall be deposited to the credit of the account.

(b) The commission may use distributions from [money in] the Texas preservation trust fund account to provide financial assistance to public or private entities for the acquisition, survey, restoration, or preservation, or for planning and educational activities leading to the preservation, of historic property in the state that is listed in the National Register of Historic Places or designated as a State Archeological Landmark or Recorded Texas Historic Landmark, or that the commission determines is eligible for such listing or designation. The financial assistance may be in the amount and form and according to the terms that the commission by rule determines. The commission shall give priority to property the commission determines to be endangered by demolition, neglect, underuse, looting, vandalism, or other threat to the property. Gifts and grants [Money] deposited to the credit of the account specifically for any eligible projects may be used only for the type of projects specified. If such a specification is not made, the gift or grant [money] shall be unencumbered and accrue to the benefit of the Texas preservation trust fund account. If such a specification is made, the entire amount of the gift or grant may be used during any period for the project or type of project specified.

(f) The advisory board shall recommend to the commission rules for administering Subsections (a)-(e) [this section].

(h) The comptroller shall manage the assets of the account. In managing the assets of the account, the comptroller may acquire, exchange, sell, supervise, manage, or retain, through procedures and subject to restrictions the comptroller considers appropriate, any kind of investment that a prudent investor, exercising reasonable care, skill, and caution, would acquire or retain in light of the purposes, terms, distribution requirements, and other circumstances of the account then prevailing, taking into consideration the investment of all the assets of the account rather than a single investment.

(i) The amount of a distribution shall be determined by the comptroller in a manner intended to provide a stable and predictable stream of annual distributions and to maintain over time the purchasing power of account investments and annual distributions from the account. If the purchasing power of account investments for any 10-year period is not preserved, the comptroller may not increase annual distributions from the account until the purchasing power of account investments is restored.

(j) An annual distribution made by the comptroller from the account during a fiscal year may not exceed an amount equal to seven percent of the average net fair market value of the investment assets of the account as determined by the comptroller.

(k) The expenses of managing account investments shall be paid from the account.

(l) On request, the comptroller shall fully disclose all details concerning the investments of the account.

SECTION 14. Chapter 442, Government Code, is amended by adding Subchapter C to read as follows: SUBCHAPTER C. CERTAIN HISTORIC SITES

Sec. 442.071. DEFINITION. In this subchapter, "historic site" means a site or park listed under Section 442.072.

Sec. 442.072. JURISDICTION. (a) The following historic sites and parks formerly under the jurisdiction of the Parks and Wildlife Department are under the commission's jurisdiction:

(1) Acton State Historic Site;

(2) Caddoan Mounds State Historic Site;

(3) Casa Navarro State Historic Site;

(4) Confederate Reunion Grounds State Historic Site;

(5) Eisenhower Birthplace State Historic Site;

(6) Fannin Battleground State Historic Site;

(7) Fort Griffin State Historic Site;

(8) Fort Lancaster State Historic Site;

(9) Fort McKavett State Historic Site;

(10) Fulton Mansion State Historic Site;

(11) Landmark Inn State Historic Site;

(12) Levi Jordan State Historic Site;

(13) Magoffin Home State Historic Site;

(14) Sabine Pass Battleground State Historic Site;

(15) Sam Bell Maxey House State Historic Site;

(16) San Felipe State Historic Site;

(17) Starr Family Home State Historic Site;

(18) Varner-Hogg Plantation State Historic Site.

(b) This subsection applies to a historic site that the state is required to operate in a particular manner or for a particular purpose, such as a site improved with federal money subject to federal restrictions on the purposes for which the improved site may be used or a site donated to the state subject to a reversion clause providing that the title reverts to the grantor when the site is not used for the purposes for which it was acquired. The commission has all powers necessary to operate the site in the required manner or for the required purpose.

(c) The commission may enter into an agreement with a nonprofit corporation, foundation, association, or other nonprofit entity for the expansion, renovation, management, operation, or financial support of a historic site.

Sec. 442.073. HISTORIC SITE ACCOUNT. (a) The historic site account is a separate account in the general revenue fund.

(b) The account consists of:

(1) credits made to the commission under Section 151.801, Tax Code;

(2) transfers to the account;

(3) interest earned on the account;

(4) fees and other revenue from operation of a historic site; and

(5) grants and donations accepted under Section 442.074.

(c) A fee or other revenue generated at a historic site must be credited to the account.

(d) Money in the account may be used only to administer, operate, preserve, repair, expand, or otherwise maintain a historic site or to acquire a historical item appropriate to a historic site.

(e) Any money in the account not used in a fiscal year remains in the account. The account is exempt from the application of Section 403.095.

Sec. 442.074. GRANTS; DONATIONS. (a) The commission may seek and accept grants and donations for a historic site from any appropriate source.

(b) Money accepted under this section shall be deposited to the credit of the historic site account.

SECTION 15. Section 442.019, Government Code, as added by Chapter 1259, Acts of the 79th Legislature, Regular Session, 2005, is transferred to Subchapter C, Chapter 442, Government Code, as added by this Act, renumbered as Section 442.075, Government Code, and amended to read as follows:

Sec. 442.075 [442.019]. TRANSFER OF HISTORIC [HISTORICAL] SITES FROM PARKS AND WILDLIFE. (a) Section 442.071 does not apply to this section.

(b) By interagency agreement, a historic [historical] site under the jurisdiction of the Parks and Wildlife Department may be transferred to the commission.

(c) [(b)] If jurisdiction over a historic [historical] site is transferred under this section, all rights, powers, duties, obligations, functions, activities, property, and programs of the Parks and Wildlife Department relating to the [historical] site are transferred to the commission.

(d) [(c)] On or after the transfer of jurisdiction over a historic [historical] site, the commission may enter into an agreement with a nonprofit corporation, including the Admiral Nimitz Foundation, for the expansion, renovation, management, operation, or financial support of the site.

(e) The legislature may adjust the percentages allocated to the commission and the Parks and Wildlife Department under Section 151.801(c), Tax Code, in future appropriations to reflect the transfer of a site under this section and the associated savings or costs to each agency.

SECTION 16. (a) It is the intent of the legislature that the Health and Human Services Commission use digital or electronic technology, to the greatest extent feasible, to reduce paper transactions, streamline processes, and promote provider participation and client access to services, including the submission of applications, the determination of eligibility, and requests for recertification, redetermination, and appeals.

(b) Section 531.0055, Government Code, is amended by adding Subsection (m) to read as follows:

(m) The executive commissioner shall establish standards for the use of electronic signatures in accordance with the Uniform Electronic Transactions Act (Chapter 43, Business & Commerce Code), with respect to any transaction, as defined by Section 43.002, Business & Commerce Code, in connection with the administration of health and human services programs.

SECTION 17. Subsection (c), Section 533.012, Government Code, is amended to read as follows:

(c) The commission's office of investigations and enforcement shall review the information submitted under this section as appropriate in the investigation of fraud in the Medicaid managed care program. [The comptroller may review the information in connection with the health care fraud study conducted by the comptroller.]

SECTION 18. Section 651.004, Government Code, is amended by adding Subsection (f) to read as follows:

(f) The Parks and Wildlife Department is not required to comply with management-to-staff ratio requirements of this section with respect to employees located in field-based operations.

SECTION 19. Subchapter A, Chapter 659, Government Code, is amended by adding Section 659.007 to read as follows:

Sec. 659.007. EARNINGS STATEMENTS. (a) In this section, "state agency" has the meaning assigned by Section 403.013.

(b) A state agency may provide a written or electronic earnings statement to an officer or employee of the agency.

(c) The comptroller may adopt rules and establish procedures concerning the earnings statements provided by state agencies that under Subchapter C, Chapter 2101, are required to use the uniform statewide payroll system.

SECTION 20. Subsection (a), Section 660.024, Government Code, is amended to read as follows:

(a) The chief administrator of a state agency must give advance written approval for any travel related to official state business for which a reimbursement for travel expenses is claimed or for which an advance for travel expenses to be incurred is sought. The advance written approval may be communicated electronically [A copy of the written approval shall be submitted with the travel voucher to the comptroller in accordance with Section 660.027].

SECTION 21. Subsections (b), (d), and (e), Section 660.027, Government Code, are amended to read as follows:

(b) A voucher submitted under Subsection (a) is valid only if:

(1) the state agency submitting the voucher approves it in accordance with Chapter 2103 and, if required by law, certifies the voucher; and

(2) the state employee who incurred the travel expense or, if the employee is unavailable, another individual acceptable to the comptroller approves the description, information, and documentation required by Subsection (d) [voucher] in writing or electronically, except that the employee's approval is not required if another person is required by law to provide the approval.

(d) A voucher must be supported by:

(1) a description of [describe] the official state business performed; and

(2) [be accompanied by] the information and documentation that the comptroller considers necessary for the comptroller to determine compliance with this chapter, the travel provisions of the General Appropriations Act, and the rules adopted by the comptroller under this chapter.

(e) The comptroller may require a state agency to provide to the comptroller the description, information, and documentation required under [by] Subsection (d):

(1) on the form adopted by the comptroller under Subsection (c);

(2) electronically;

(3) by submitting receipts or other documents; or

(4) [(3)] by any [a] combination of Subdivisions (1), [and] (2), and (3).

SECTION 22. Section 660.028, Government Code, is amended by amending Subsections (b), (c), and (d) and adding Subsection (e) to read as follows:

(b) If the comptroller audits a state agency's voucher after the comptroller issues a warrant or initiates an electronic funds transfer in response to the voucher, the comptroller may require the agency to maintain in its files the description, information, and documentation [receipts] relating to the travel expense paid or reimbursed by the voucher until the comptroller audits the voucher.

(c) If a state agency pays or reimburses a travel expense without first submitting a voucher to the comptroller, the comptroller may audit the payment or reimbursement for compliance with this chapter and the travel provisions of the General Appropriations Act. The comptroller may report the results of the audit to the governor, the lieutenant governor, the speaker of the house of representatives, the state auditor, and the Legislative Budget Board. The state agency shall cooperate with the comptroller and make available the description, information, and documentation [receipts] required by the comptroller at the time and in the manner required by the comptroller.

(d) The comptroller may require a state agency to maintain in its files the description, information, and documentation [receipts] regarding a travel expense payment or reimbursement for the period required by the comptroller.

(e) The comptroller may require or authorize the description, information, and documentation relating to a travel expense payment or reimbursement to be maintained in paper form or electronically.

SECTION 23. Subsections (c) and (d), Section 660.043, Government Code, are amended to read as follows:

(c) A state agency [The comptroller] shall adopt or designate [periodically issue and update] a mileage guide, for use by agency employees and officers, [that includes a chart] showing the number of miles for the shortest route between points. A state agency may produce the guide or may use a reliable commercially or publicly available service to produce the guide [The guide also may include a chart showing the number of miles for longer routes between points. Farm-to-market and ranch-to-market roads shall be considered when determining the routings between points in this state. The guide may be electronic or printed, or both].

(d) If the number of miles between points is not shown in the guide adopted or designated under Subsection (c), the mileage incurred while traveling between those points is not reimbursable unless:

(1) the voucher itemizes the mileage on a point-to-point basis; and

(2) the mileage is reasonable.

SECTION 24. Subsection (d), Section 551.022, Health and Safety Code, is amended to read as follows:

(d) In accordance with board rules and departmental operating procedures, the superintendent may:

(1) establish policy to govern the facility that the superintendent considers will best promote the patients' and clients' interest and welfare;

(2) appoint subordinate officers, teachers, and other employees and set their salaries, in the absence of other law; and

(3) remove an officer, teacher, or employee on an at-will basis [for good cause].

SECTION 25. Section 430.003, Local Government Code, is amended to read as follows:

Sec. 430.003. EXEMPTIONS OF CERTAIN [STATE] PROPERTY FROM INFRASTRUCTURE FEES. No county, municipality, or utility district may collect from a state agency or a public or private institution of higher education any fee charged for the development or maintenance of programs or [of] facilities for the control of excess water or storm water.

SECTION 26. Subsection (a), Section 11.0262, Parks and Wildlife Code, is amended to read as follows:

(a) An employee of the state parks division of the department may accept a gratuity if:

(1) the employee, as a primary job duty, serves food or beverages in a restaurant, cafeteria, or other food service establishment located within a state park and owned and operated by the department;

(2) the employee, as an auxiliary duty in performance of a regular duty renders a special customer service to an individual or group;

(3) the gratuity is offered by a customer:

(A) of the restaurant, cafeteria, [or other] food service establishment, or hospitality unit of the state parks division in appreciation of being served food or beverages by the employee; or

(B) of a hospitality unit of the state parks division, in appreciation of receiving some other customer service from the employee;

(4) [(3)] the department has designated the employee as an employee authorized to accept a gratuity; and

(5) [(4)] the employee reports the gratuity in accordance with commission rules.

SECTION 27. Subsection (b), Section 11.035, Parks and Wildlife Code, is amended to read as follows:

(b) The department shall deposit to the credit of the state parks account all revenue, less allowable costs, received from the following sources:

(1) grants or operation of concessions in state parks or fishing piers;

(2) publications on state parks, state historic sites, or state scientific areas;

(3) fines or penalties received from violations of regulations governing parks issued pursuant to Subchapter B, Chapter 13[, of this code];

(4) fees and revenue collected under Section 11.027(b) or (c) [of this code] that are associated with state park lands;

(5) an amount of money equal to 74 [$1,125,000 per month and 40] percent of the [amount above $27 million per year of] credits made to the department under Section 151.801, Tax Code; and

(6) any other source provided by law.

SECTION 28. Subsection (b), Section 11.043, Parks and Wildlife Code, is amended to read as follows:

(b) The account consists of:

(1) the amount of credits made to the department under Section 151.801, Tax Code, after allocations to:

(A) the state parks account;

(B) the large county and municipality recreation and parks account; and

(C) the Texas recreation and parks account;

(2) [,] proceeds of revenue bonds issued under Section 13.0045; and

(3) money from [, or] any other source authorized by law.

SECTION 29. Chapter 11, Parks and Wildlife Code, is amended by adding Subchapter K to read as follows: SUBCHAPTER K. MANAGEMENT AND EFFICIENCY REVIEWS

Sec. 11.251. MAINTENANCE EQUIPMENT REVIEW SYSTEM. (a) In this section:

(1) "Maintenance equipment" means personal property owned by the department that is used to administer, operate, preserve, repair, expand, or otherwise maintain real property, including improvements and fixtures, owned or operated by the department.

(2) "Outdated equipment" means equipment:

(A) that has a fair market value that is less than the annual cost of maintaining the equipment in working order;

(B) that is not operational and cannot reasonably be made operational; or

(C) that no longer serves a department purpose.

(b) The commission by rule shall establish an equipment review system through which the department annually determines whether any of the department's maintenance equipment has become outdated equipment since the last date the department conducted an equipment review under this section.

(c) The equipment review system established under Subsection (b) must require the department to sell any outdated equipment in the manner and at the time specified by the commission by rule.

(d) The department shall deposit proceeds from the sale of equipment under this section to the credit of the appropriate parks and wildlife account.

Sec. 11.252. MAINTENANCE PROVIDER REVIEW SYSTEM. (a) In this section "maintenance" includes the administration, operation, preservation, repair, and expansion of personal property owned by the department and real property owned or operated by the department.

(b) The commission by rule shall establish a maintenance provider review system through which the department annually determines whether a maintenance task performed by the department could be performed by a third-party contractor in a manner that:

(1) is more cost-effective than the department's manner of performing the maintenance task; and

(2) yields a result that is equal to or greater than the quality of the result produced by the department performing the task.

(c) The maintenance provider review system established under Subsection (b) must require the department to contract with a third party for the performance of any maintenance task performed by the department that could be performed by a third-party contractor in the manner that meets the criteria described by Subsection (b) after the department's cost of administering the contract is added to the cost of performance by the third party.

Sec. 11.253. MANAGEMENT PLAN AND PRIORITIES LIST. Not later than January 15 of each odd-numbered year the department shall submit to the governor, the speaker of the house of representatives, the lieutenant governor, and the chair of each house and senate standing committee having jurisdiction over a matter regulated by the department under this code a management plan to address the department's maintenance responsibilities under this subchapter and a priorities list that includes the following information:

(1) a prioritized list of facilities operated by the department that are most in need of repair, renovation, expansion, or other maintenance;

(2) an itemized list explaining any additional funding requested by the department to accomplish a task described by Subdivision (1); and

(3) the results of the reviews conducted under Sections 11.251, 11.252, and 13.019(b).

SECTION 30. Subchapter A, Chapter 13, Parks and Wildlife Code, is amended by adding Section 13.0044 to read as follows:

Sec. 13.0044. PREFERENCE FOR CERTAIN PARK PROGRAMS. In selecting parks for capital improvements, the department may give a preference to programs in which the department matches locally raised money on a dollar-for-dollar basis.

SECTION 31. Subsection (a), Section 13.0061, Parks and Wildlife Code, is amended to read as follows:

(a) The department may lease grazing rights on any state park or any area of a state park. The department may harvest and sell, or sell in place, any timber, hay, livestock, or other product grown on state park land the department finds to be in excess of natural resource management, educational, or interpretive objectives [programming needs]. Timber may be harvested only for forest pest management, salvage, or habitat restoration and under good forestry practices with the advice of the Texas Forest Service.

SECTION 32. Subchapter A, Chapter 13, Parks and Wildlife Code, is amended by adding Section 13.0075 to read as follows:

Sec. 13.0075. ELIGIBILITY CRITERIA FOR INCLUSION OF REAL PROPERTY IN STATE PARKS SYSTEM. (a) The commission by rule shall adopt criteria for determining the eligibility of real property that is donated to the department for inclusion in the state parks system.

(b) The department may accept a donation of real property that satisfies the criteria adopted under Subsection (a).

(c) The department may renovate or restore donated real property, including improvements to the property, or construct improvements on the donated real property as necessary and prudent.

SECTION 33. Subchapter A, Chapter 13, Parks and Wildlife Code, is amended by adding Section 13.0145 to read as follows:

Sec. 13.0145. SPEED LIMITS. (a) The department shall set and enforce speed limits on a road in a state park, wildlife management area, or other site under the control of the department as follows:

(1) 30 miles per hour on a park road or main drive;

(2) 20 miles per hour on a secondary road; or

(3) as posted by the department.

(b) The department shall:

(1) consult with the Texas Department of Transportation to determine if a speed limit under Subsection (a) is reasonable and safe based on an engineering and traffic control study; and

(2) amend the limit, if necessary.

SECTION 34. Section 13.015, Parks and Wildlife Code, is amended by adding Subsections (a-1), (b-1), (b-2), and (b-3) and amending Subsection (b) to read as follows:

(a-1) The department may promote visits and enhance revenue at parks, including amounts necessary for salaries, advertising, consumable supplies and materials, promotional products, fees, and related expenses.

(b) The department may operate or grant contracts to operate concessions in state parks or on causeways, beach drives, or other improvements in connection with state park sites. The department may make regulations governing the granting or operating of concessions. The department may establish and operate staff concessions, including salaries, consumable supplies and materials, operating expenses, rental and other equipment, and other capital outlays.

(b-1) The department may purchase products, including food items, for resale or rental at a profit.

(b-2) The department shall operate any resale concession program using standard business practice models to generate revenue and provide quality customer service while adhering to conservation principles.

(b-3) The department may recruit and select private service providers to enter into leased concession contracts with the department to provide necessary and appropriate visitor services.

SECTION 35. Section 13.016, Parks and Wildlife Code, is amended to read as follows:

Sec. 13.016. INMATE [PRISON] LABOR. (a) The department may use the labor of an inmate confined in a state, county, or local correctional facility [trusty state convicts] on or in connection with state parks, wildlife management areas, or other property under the control or jurisdiction of the department.

(b) Inmates [Convicts] working in connection with lands under the control or jurisdiction of the department remain under the control of the Texas Department of Criminal Justice or county or local correctional facility, as appropriate, and are considered as serving their terms in the Texas Department of Criminal Justice or other correctional facility [penitentiary].

(c) The department may purchase equipment, meals, supplies, and materials for an inmate working at a department site as necessary to facilitate the use of the labor described by this section.

(d) The department may not use the labor of an inmate convicted of an offense listed in Article 62.001(5), Code of Criminal Procedure.

(e) The department may not use the labor of an inmate convicted of any violent offense.

SECTION 36. Section 13.019, Parks and Wildlife Code, is amended to read as follows:

Sec. 13.019. FACILITY RESERVATION SYSTEM AND FEE. (a) The department may permit the advance reservation of a facility, lodging, or campsite at a state park and require the payment of a fee by a person making the reservation.

(b) The department shall annually:

(1) evaluate whether the reservation system used by the department for the advance reservation of facilities, lodging, and campsites is as user-friendly as possible; and

(2) make modifications to the system as necessary to enhance the user-friendliness of the reservation system.

SECTION 37. Subchapter A, Chapter 13, Parks and Wildlife Code, is amended by adding Section 13.0191 to read as follows:

Sec. 13.0191. FACILITY AND LODGING FEES. A fee charged by the department under this subchapter for the use of a facility or lodging at a state park may vary on a seasonal basis and may be set in an amount to recover the direct and indirect costs of providing the facility or lodging and provide a reasonable rate of return to the department. Items to be considered in setting a fee include the cost required to provide, maintain, and improve amenities available at the site and seasonal variables such as the cost of staffing to meet demand and costs of heating or air conditioning.

SECTION 38. Chapter 24, Parks and Wildlife Code, is amended by designating Sections 24.001 through 24.013 as Subchapter A and adding a heading for Subchapter A to read as follows: SUBCHAPTER A. LOCAL PARKS FOR SMALLER COUNTIES AND MUNICIPALITIES AND OTHER POLITICAL SUBDIVISIONS

SECTION 39. Section 24.001, Parks and Wildlife Code, is amended to read as follows:

Sec. 24.001. DEFINITIONS. In this subchapter [chapter]:

(1) "Political subdivision" means a county, municipality [city], special district, river authority, or other governmental entity created under the authority of the state or a county or municipality [city].

(2) "Urban area" means the area within a standard metropolitan statistical area (SMSA) in this state used in the last preceding federal census.

(3) "Park" includes land and water parks owned or operated by the state or a political subdivision.

(4) "Open space area" means a land or water area for human use and enjoyment that is relatively free of man-made structures.

(5) "Natural area" means a site having valuable or vulnerable natural resources, ecological processes, or rare, threatened, or endangered species of vegetation or wildlife.

(6) "Parks, recreational, and open space area plan" means a comprehensive plan that includes information on and analyses of parks, recreational, and open space area objectives, needs, resources, environment, and uses, and that identifies the amounts, locations, characteristics, and potentialities of areas for adequate parks, recreational, and open space opportunities.

(7) "Federal rehabilitation and recovery grants" means matching grants made by the United States to or for political subdivisions for the purpose of rebuilding, remodeling, expanding, or developing existing outdoor or indoor parks, recreational, or open space areas and facilities, including improvements in park landscapes, buildings, and support facilities.

(8) "Account" means the Texas recreation and parks account.

(9) "Rural area" means any area not included in an urban area.

(10) "Cultural resource site or area" means a site or area determined by the commission to have valuable and vulnerable cultural or historical resources.

(11) "Nonprofit corporation" means a nonpolitical legal entity incorporated under the laws of this state that has been granted an exemption from federal income tax under Section 501(c), Internal Revenue Code of 1986, as amended.

(12) "Underserved population" means any group of people that is low income, inner city, or rural as determined by the last census, or minority, physically or mentally challenged youth at risk, youth, or female.

SECTION 40. Section 24.002, Parks and Wildlife Code, is amended to read as follows:

Sec. 24.002. TEXAS RECREATION AND PARKS ACCOUNT. The Texas recreation and parks account is a separate account in the general revenue fund. Money in the account may be used only as provided by this subchapter for grants to:

(1) a county or municipality with a population of less than 500,000; or

(2) any other political subdivision that is not a county or municipality.

SECTION 41. Section 24.003, Parks and Wildlife Code, is amended to read as follows:

Sec. 24.003. ACCOUNT REVENUE SOURCE; REVENUE DEDICATION. The department shall deposit to the credit of the Texas recreation and parks account:

(1) an amount of money equal to 15 [$1,125,000 per month and 40] percent of the [amount above $27 million per year of] credits made to the department under Section 151.801, Tax Code; and [or]

(2) money from any other source authorized by law.

SECTION 42. Subsection (e), Section 24.005, Parks and Wildlife Code, is amended to read as follows:

(e) The department may provide from the account for direct administrative costs of the programs described by this subchapter [chapter].

SECTION 43. Subsection (a), Section 24.008, Parks and Wildlife Code, is amended to read as follows:

(a) No property may be acquired with grant money made under this subchapter [chapter] or by the department under this subchapter [chapter] if the purchase price exceeds the fair market value of the property as determined by one independent appraiser.

SECTION 44. Section 24.009, Parks and Wildlife Code, is amended to read as follows:

Sec. 24.009. PAYMENTS, RECORDS, AND ACCOUNTING. (a) On the approval of a grant under this subchapter [chapter] and on the written request by the director, the comptroller of public accounts shall issue a warrant drawn against the Texas recreation and parks account and payable to the political subdivision or nonprofit corporation in the amount specified by the director.

(b) Each recipient of assistance under this subchapter [chapter] shall keep records as required by the department, including records which fully disclose the amount and the disposition of the proceeds by the recipient, the total cost of the acquisition, a copy of the title and deed for the property acquired, the amount and nature of that portion of the cost of the acquisition supplied by other funds, and other records that facilitate effective audit. The director and the comptroller, or their authorized representatives, may examine any book, document, paper, and record of the recipient that are pertinent to assistance received under this subchapter [chapter].

(c) The recipient of funds under this subchapter [chapter] shall, on each anniversary date of the grant for five years after the grant is made, furnish to the department a comprehensive report detailing the present and anticipated use of the property, any contiguous additions to the property, and any major changes in the character of the property, including the extent of park development which may have taken place.

SECTION 45. Section 24.011, Parks and Wildlife Code, is amended to read as follows:

Sec. 24.011. NONCOMPLIANCE WITH SUBCHAPTER [ACT]. The attorney general shall file suit in a court of competent jurisdiction against a political subdivision or nonprofit corporation that fails to comply with the requirements of this subchapter [chapter] to recover the full amount of the grant plus interest on that amount of five percent a year accruing from the time of noncompliance or for injunctive relief to require compliance with this subchapter [chapter]. If the court finds that the political subdivision or nonprofit corporation has not complied with the requirements of this subchapter [chapter], it is not eligible for further participation in the program for three years following the finding for noncompliance.

SECTION 46. Section 24.013, Parks and Wildlife Code, is amended to read as follows:

Sec. 24.013. AUTHORITY OF POLITICAL SUBDIVISIONS TO HAVE PARKS. This subchapter [chapter] does not authorize a political subdivision to acquire, develop, maintain, or operate a park, recreational area, open space area, or natural area.

SECTION 47. Chapter 24, Parks and Wildlife Code, is amended by adding Subchapter B to read as follows: SUBCHAPTER B. PARKS FOR LARGE COUNTIES AND MUNICIPALITIES

Sec. 24.051. DEFINITIONS. In this subchapter:

(1) "Account" means the large county and municipality recreation and parks account.

(2) "Cultural resource site or area" means a site or area determined by the commission to have valuable and vulnerable cultural or historical resources.

(3) "Federal rehabilitation and recovery grants" means matching grants made by the United States to or for political subdivisions for the purpose of rebuilding, remodeling, expanding, or developing existing outdoor or indoor parks, recreational, or open space areas and facilities, including improvements in park landscapes, buildings, and support facilities.

(4) "Large county or municipality" means a county or municipality with a population of 500,000 or more.

(5) "Natural area" means a site having valuable or vulnerable natural resources, ecological processes, or rare, threatened, or endangered species of vegetation or wildlife.

(6) "Nonprofit corporation" means a nonpolitical legal entity incorporated under the laws of this state that has been granted an exemption from federal income tax under Section 501(c), Internal Revenue Code of 1986, as amended.

(7) "Open space area" means a land or water area for human use and enjoyment that is relatively free of man-made structures.

(8) "Park" includes land and water parks owned or operated by the state or a political subdivision.

(9) "Parks, recreational, and open space area plan" means a comprehensive plan that includes information on and analyses of parks, recreational, and open space area objectives, needs, resources, environment, and uses, and that identifies the amounts, locations, characteristics, and potentialities of areas for adequate parks, recreational, and open space opportunities.

(10) "Political subdivision" means a county, municipality, special district, river authority, or other governmental entity created under the authority of the state or a county or municipality.

(11) "Underserved population" means any group of people that is low income or inner city, as determined by the last census, or minority, physically or mentally challenged youth at risk, youth, or female.

Sec. 24.052. LARGE COUNTY AND MUNICIPALITY RECREATION AND PARKS ACCOUNT. The large county and municipality recreation and parks account is a separate account in the general revenue fund. Money in the account may be used only as provided by this subchapter.

Sec. 24.053. ACCOUNT REVENUE SOURCE; DEDICATION. The department shall deposit to the credit of the large county and municipality recreation and parks account:

(1) an amount of money equal to 10 percent of the credits made to the department under Section 151.801, Tax Code; and

(2) money from any other source authorized by law.

Sec. 24.054. ASSISTANCE GRANTS. (a) The department may make grants of money from the account to a large county or municipality for use by the county or municipality as all or part of the county's or municipality's required share of funds for eligibility for receiving a federal rehabilitation and recovery grant.

(b) In order to receive a grant under this section, the county or municipality seeking the federal grant shall apply to the department for the grant and present evidence that the county or municipality qualifies for the federal grant.

(c) A grant under this section is conditioned on the county or municipality qualifying for and receiving the federal grant.

Sec. 24.055. DIRECT STATE MATCHING GRANTS. (a) The department shall make grants of money from the account to a large county or municipality to provide one-half of the costs of the planning, acquisition, or development of a park, recreational area, or open space area to be owned and operated by the county or municipality.

(b) In establishing the program of grants under this section, the department shall adopt rules and regulations for grant assistance.

(c) Money granted to a county or municipality under this section may be used for the operation and maintenance of parks, recreational areas, cultural resource sites or areas, and open space areas only:

(1) if the park, site, or area is owned or operated and maintained by the department and is being transferred by the commission for public use to the county or municipality for operation and maintenance; and

(2) during the period the commission determines to be necessary to effect the official transfer of the park, site, or area.

(d) The department shall make grants of money from the account to a large county or municipality or to a nonprofit corporation for use in a large county or municipality for recreation, conservation, or education programs for underserved populations to encourage and implement increased access to and use of parks, recreational areas, cultural resource sites or areas, and open space areas by underserved populations.

(e) The department may provide from the account for direct administrative costs of the programs described by this subchapter.

Sec. 24.056. FUNDS FOR GRANTS TO LARGE COUNTIES AND MUNICIPALITIES. When revenue to the large county and municipality recreation and parks account exceeds $14 million per year, an amount not less than 15 percent shall be made available for grants to large counties and municipalities for up to 50 percent of the cost of acquisition or development of indoor public recreation facilities for indoor recreation programs, sports activities, nature programs, or exhibits.

Sec. 24.057. ACCOUNT USE TO BE CONSISTENT WITH PLANS. No grant may be made under Section 24.055 nor may account money be used under Section 24.056 unless:

(1) there is a present or future need for the acquisition and development of the property for which the grant is requested or the use is proposed; and

(2) a written statement is obtained from the regional planning commission having jurisdiction of the area in which the property is to be acquired and developed that the acquisition and development is consistent with local needs.

Sec. 24.058. ACQUISITION OF PROPERTY. (a) No property may be acquired with grant money made under this subchapter or by the department under this subchapter if the purchase price exceeds the fair market value of the property as determined by one independent appraiser.

(b) Property may be acquired with provision for a life tenancy if that provision facilitates the orderly and expedient acquisition of the property.

(c) If land or water designated for park, recreational, cultural resource, or open space use is included in the local and regional park, recreational, cultural resource, and open space plans for two or more large counties or municipalities, the two or more large counties or municipalities may cooperate under state law to secure assistance from the account to acquire or develop the property. In those cases, the department may modify the standards for individual applicants but must be assured that a cooperative management plan for the land or water can be developed and effectuated and that one of the counties or municipalities possesses the necessary qualifications to perform contractual responsibilities for purposes of the grant.

(d) All land or water purchased with assistance from the account shall be dedicated for park, recreational, cultural resource, indoor recreation center, and open space purposes in perpetuity and may not be used for any other purpose, except where the use is compatible with park, recreational, cultural resource, and open space objectives, and the use is approved in advance by the department.

Sec. 24.059. PAYMENTS, RECORDS, AND ACCOUNTING. (a) On the approval of a grant under this subchapter and on the written request by the director, the comptroller shall issue a warrant drawn against the large county and municipality recreation and parks account and payable to the county, municipality, or nonprofit corporation in the amount specified by the director.

(b) Each recipient of assistance under this subchapter shall keep records as required by the department, including records that fully disclose the amount and the disposition of the proceeds by the recipient, the total cost of the acquisition, a copy of the title and deed for the property acquired, the amount and nature of that portion of the cost of the acquisition supplied by other funds, and other records that facilitate effective audit. The director and the comptroller, or their authorized representatives, may examine any book, document, paper, and record of the recipient that are pertinent to assistance received under this subchapter.

(c) The recipient of funds under this subchapter shall, on each anniversary date of the grant for five years after the grant is made, furnish to the department a comprehensive report detailing the present and anticipated use of the property, any contiguous additions to the property, and any major changes in the character of the property, including the extent of park development that may have taken place.

Sec. 24.060. NONCOMPLIANCE WITH SUBCHAPTER. The attorney general shall file suit in a court of competent jurisdiction against a county, municipality, or nonprofit corporation that fails to comply with the requirements of this subchapter to recover the full amount of the grant plus interest on that amount of five percent a year accruing from the time of noncompliance or for injunctive relief to require compliance with this subchapter. If the court finds that the county, municipality, or nonprofit corporation has not complied with the requirements of this subchapter, it is not eligible for further participation in the program for three years following the finding for noncompliance.

Sec. 24.061. ACCOUNT NOT TO BE USED FOR PUBLICITY. No money credited to the account may be used for publicity or related purposes.

Sec. 24.062. AUTHORITY OF LARGE COUNTY OR MUNICIPALITY TO HAVE PARKS. This subchapter does not authorize a large county or municipality to acquire, develop, maintain, or operate a park, recreational area, open space area, or natural area.

SECTION 48. Section 74.202, Property Code, is amended to read as follows:

Sec. 74.202. NOTICE FOR ITEM WITH VALUE OF LESS THAN $200 [$100]. In the notice required by Section 74.201, the comptroller is not required to publish information regarding an item having a value that is less than $200 [$100] unless the comptroller determines that publication of that information is in the public interest.

SECTION 49. Section 31.01, Tax Code, is amended by adding Subsection (d-2) to read as follows:

(d-2) This subsection applies only to a school district and only in connection with taxes imposed by the district in 2007. This subsection expires January 1, 2008. In addition to any other information required by this section, the tax bill or separate statement shall separately state:

(1) the amount of tax that would be imposed by applying the district's maintenance and operations rate for the 2005 tax year to current total value for 2007;

(2) the amount of tax that would be imposed by applying the district's maintenance and operations rate for the 2007 tax year to current total value for 2007; and

(3) the amount, if any, by which the amount calculated under Subdivision (1) exceeds the amount calculated under Subdivision (2), which must be labeled "Estimate of school district maintenance and operations property tax savings attributable to H.B. No. 1, Acts of the 79th Legislature, 3rd Called Session, 2006, and appropriations of state funds by the 80th Legislature."

SECTION 50. Subsection (c), Section 151.801, Tax Code, is amended to read as follows:

(c) The proceeds from the collection of the taxes imposed by this chapter on the sale, storage, or use of sporting goods shall be deposited as follows:

(1) an amount equal to 94 percent of the proceeds [For the period beginning September 1, 1993, and ending August 31, 1995, an amount equal to 50 cents per 1,000 cigarettes shall be deposited to the credit of the general revenue fund, state parks account, and an amount equal to 50 cents per 1,000 cigarettes shall be deposited to the credit of the general revenue fund, Texas recreation and parks account, and the balance shall be retained in the general revenue fund.

[(2)Beginning September 1, 1995, the taxes collected] shall be credited to the Parks and Wildlife Department and deposited as specified in the Parks and Wildlife Code; and

(2) an amount equal to six percent of the proceeds shall be credited to the Texas Historical Commission and deposited as specified in Section 442.073, Government Code. [The comptroller shall not credit in excess of $32 million in sporting goods tax revenue annually to the Parks and Wildlife Department.]

SECTION 51. Section 403.028, Government Code, is repealed.

SECTION 52. The Parks and Wildlife Department shall comply with the recommendations contained in the State Auditor's Office "An Audit Report on Financial Processes at the Parks and Wildlife Department Report No. 07-021" in accordance with the dates specified in the department's management response included as Appendix 6 to the report and contingent on receiving an appropriation sufficient to fund the implementation of the recommendations.

SECTION 53. (a) In this section, "historic site" means a historic site or park listed under Section 442.072, Government Code, as added by this Act.

(b) On or after January 1, 2008, as provided by this section, the following are transferred to the Texas Historical Commission:

(1) each historic site and all obligations and liabilities of the Parks and Wildlife Department relating to the site;

(2) all unobligated and unexpended funds appropriated to the Parks and Wildlife Department designated for the administration of each site;

(3) all equipment and property of the Parks and Wildlife Department used for the administration of or related to each site; and

(4) all files and other records of the Parks and Wildlife Department kept by the department regarding each site.

(c) A rule adopted by the Parks and Wildlife Commission that is in effect immediately before January 1, 2008, and that relates to a historic site is, on January 1, 2008, a rule of the Texas Historical Commission and remains in effect until amended or repealed by the Texas Historical Commission. A rule that applies to both a transferred site and park that is not transferred is a rule of both commissions and applies to the transferred site until amended or repealed by the Texas Historical Commission.

(d) A transfer under this Act does not diminish or impair the rights of a holder of an outstanding bond or other obligation issued by the Parks and Wildlife Department in relation to the support of a historic site.

(e) On January 1, 2008, a reference in the Parks and Wildlife Code or other law to a power, duty, obligation, or liability of the Parks and Wildlife Department or the Parks and Wildlife Commission that relates to a historic site is a reference to the Texas Historical Commission. The Texas Historical Commission is the successor agency to the Parks and Wildlife Department and the Parks and Wildlife Commission for the site.

(f) The Texas Historical Commission shall prepare a base operating plan for each historic site before the transfer of any site or associated artifact or archival materials from the Parks and Wildlife Department to the commission. The base operating plan for each site must be completed on or before January 1, 2008. The base operating plan for each site must include:

(1) a mission statement outlining the goals for the site;

(2) an interpretive plan showing how the mission is to be accomplished;

(3) an operational plan, including:

(A) facilities, documents, records, and other assets to be transferred;

(B) parties responsible for daily site management, including staff that will be transferred;

(C) off-site support structure;

(D) plans for artifact and archival curation;

(E) signed memoranda of understanding or memoranda of agreement with appropriate friends groups and volunteer organizations; and

(F) emergency plans;

(4) a maintenance plan, including maintenance and repair needs;

(5) a marketing plan;

(6) a business plan, including revenue and visitation goals;

(7) a plan for compliance with:

(A) Chapter 191, Natural Resources Code (the Antiquities Code of Texas); and

(B) the National Historic Preservation Act (16 U.S.C. Section 470 et seq.); and

(8) fiscal plans and budgets associated with Subdivisions (1) through (7) of this subsection.

(g) An interim study committee shall review the base operating plan described by Subsection (f) of this section. The members of the interim committee shall be a subcommittee of the House Committee on Culture, Recreation, and Tourism appointed not later than September 1, 2007, by the chair of that house committee. The interim committee shall obtain feedback and information from professionals familiar with the work of the Parks and Wildlife Department, the Texas Historical Commission, the National Park Service, the Council of Texas Archeologists, professional archivists, park managers, and the tourism industry. The interim study committee shall report to the House Committee on Culture, Recreation, and Tourism on the results of the study conducted under this subsection not later than September 1, 2008.

(h) Until a historic site is transferred to the Texas Historical Commission in accordance with this Act, the Parks and Wildlife Department shall continue to operate and maintain the site under applicable law as it existed on January 1, 2007.

(i) The Parks and Wildlife Department and the Texas Historical Commission shall keep the House Committee on Culture, Recreation, and Tourism informed of the progress of the transfer of each historic site under this Act.

(j) An employee of the Parks and Wildlife Department whose job responsibilities are more than 50 percent related to a historic site transferred to the Texas Historical Commission under this Act becomes an employee of the Texas Historical Commission on the date of the transfer of that site. An employee whose job is transferred may not be dismissed after the transfer except for cause before the first anniversary of the date of the transfer.

SECTION 54. (a) The Parks and Wildlife Department shall accept the gift of a 16-acre tract of land currently owned by Zavala County that is located adjacent to the Nueces River and United States Highway 83 intersection north of La Pryor, Texas.

(b) The department shall develop the land as a state park or fund the development of a park on that property.

SECTION 55. Any restrictions on the allocation of money in the state parks account under Section 11.035, Parks and Wildlife Code, as amended by this Act, on the use of money in the Texas parks and wildlife conservation and capital account under Section 11.043, Parks and Wildlife Code, as amended by this Act, on the use of money in the Texas recreation and parks account under Section 24.002, Parks and Wildlife Code, as amended by this Act, or on the allocation of that money under Section 24.003, Parks and Wildlife Code, as amended by this Act, do not apply to a one-time appropriation of the unencumbered balances of those accounts on August 31, 2007, made by a rider to the General Appropriations Act that:

(1) is contingent on the enactment of this Act or a similar Act by the 80th Legislature; and

(2) provides for the one-time allocation of that money to the Parks and Wildlife Department and the Texas Historical Commission to be used for the repair, renovation, maintenance, and other one-time costs associated with state historic sites and state parks.

SECTION 56. The name of the Peach Point Wildlife Management Area is changed to the Justin Hurst Wildlife Management Area.

SECTION 57. (a) Except as provided by Subsection (d) of this section, 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.

(b) If this Act does not receive the vote necessary for immediate effect, the changes to or additions or repeal of the following laws made by this Act take effect on the 91st day after the last day of the legislative session:

(1) Section 57.48, Education Code; and

(2) Sections 403.028, 403.055, 403.0551, and 533.012, Government Code.

(c) If this Act does not receive the vote necessary for immediate effect, all provisions of this Act not treated by Subsection (b) of this section, including the changes to or additions of the following laws made by this Act, take effect September 1, 2007:

(1) Sections 404.024, 659.007, 660.024, 660.027, and 660.028, Government Code; and

(2) Section 74.202, Property Code.

(d) The changes to Sections 73.003 and 660.043, Government Code, made by this Act take effect September 1, 2007, without regard to whether this Act receives the vote necessary for immediate effect.