82(1) SB 1 - Enrolled version

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	S.B. No. 1

AN ACT

relating to certain state fiscal matters; providing penalties.

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

ARTICLE 1. FOUNDATION SCHOOL PROGRAM PAYMENTS

SECTION 1.01. Subsections (c), (d), and (f), Section

42.259, Education Code, are amended to read as follows:

category 2 school district shall be made as follows:

(1) 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;

(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;

(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;

(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;

(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;

(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;

(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

(8) 15 percent of the yearly entitlement of the

district shall be paid in an installment to be made after the 5th

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

Subdivision (1) [~~on or before the 25th day of August~~].

(d) Payments from the foundation school fund to each

category 3 school district shall be made as follows:

(1) 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;

(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

(3) 20 percent of the yearly entitlement of the

district shall be paid in an installment to be made after the 5th

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

Subdivision (1) [~~on or before the 25th day of August~~].

(f) Except as provided by Subsection (c)(8) or (d)(3), any

[~~Any~~] previously unpaid additional funds from prior fiscal years

owed to a district shall be paid to the district together with the

September payment of the current fiscal year entitlement.

SECTION 1.02. Subsection (c), Section 466.355, Government

Code, is amended to read as follows:

(1) estimate the amount to be transferred to the

foundation school fund on or before September 15; and

(2) notwithstanding Subsection (b)(4), transfer the

amount estimated in Subdivision (1) to the foundation school fund

before August 25 [~~installment payments are made under Section~~

~~42.259, Education Code~~].

SECTION 1.03. The changes made by this article to Section

42.259, Education Code, apply only to a payment from the foundation

school fund that is made on or after the effective date of this Act.

A payment to a school district from the foundation school fund that

is made before that date is governed by Section 42.259, Education

Code, as it existed before amendment by this article, and the former

law is continued in effect for that purpose.

ARTICLE 2. FISCAL MATTERS REGARDING REGULATION AND TAXATION OF

INSURERS

SECTION 2.01. Section 221.006, Insurance Code, is amended

by adding Subsection (c) to read as follows:

(a) for an examination or evaluation fee paid in calendar year 2012

or 2013. This subsection expires January 1, 2014.

SECTION 2.02. Section 222.007, Insurance Code, is amended

by adding Subsection (c) to read as follows:

entitled to a credit under Subsection (a) for an examination or

evaluation fee paid in calendar year 2012 or 2013. This subsection

expires January 1, 2014.

SECTION 2.03. Section 223.009, Insurance Code, is amended

by adding Subsection (c) to read as follows:

under Subsection (a) for an examination or evaluation fee paid in

calendar year 2012 or 2013. This subsection expires January 1,

2014.

SECTION 2.04. Section 401.151, Insurance Code, is amended

by adding Subsection (f) to read as follows:

(f) An insurer is not entitled to a credit under Subsection

(e) for an examination or evaluation fee paid in calendar year 2012

or 2013. This subsection expires January 1, 2014.

SECTION 2.05. Section 401.154, Insurance Code, is amended

to read as follows:

Sec. 401.154. TAX CREDIT AUTHORIZED. (a) An insurer is

entitled to a credit on the amount of premium taxes to be paid by the

insurer for all examination fees paid under Section 401.153. The

insurer may take the credit for the taxable year during which the

examination fees are paid and may take the credit to the same extent

the insurer may take a credit for examination fees paid when a

salaried department examiner conducts the examination.

(b) An insurer is not entitled to a credit under Subsection

(a) for an examination fee paid in calendar year 2012 or 2013. This

subsection expires January 1, 2014.

SECTION 2.06. Section 463.160, Insurance Code, is amended

to read as follows:

Sec. 463.160. PREMIUM TAX CREDIT FOR CLASS A ASSESSMENT.

The amount of a Class A assessment paid by a member insurer in each

taxable year shall be allowed as a credit on the amount of premium

taxes due [~~in the same manner as a credit is allowed under Section~~

~~401.151(e)~~].

SECTION 2.07. The changes in law made by this article apply

only to a tax credit for an examination or evaluation fee paid on or

after January 1, 2012. Tax credits for examination or evaluation

fees paid before January 1, 2012, are governed by the law in effect

immediately before the effective date of this Act, and that law is

continued in effect for that purpose.

ARTICLE 3. STATE SALES AND FRANCHISE TAX REFUNDS FOR CERTAIN AD

VALOREM TAXPAYERS

SECTION 3.01. Subchapter F, Chapter 111, Tax Code, is

repealed.

SECTION 3.02. The repeal of Subchapter F, Chapter 111, Tax

Code, by this article does not affect an eligible person's right to

claim a refund of state sales and use and state franchise taxes that

was established under Section 111.301, Tax Code, in relation to

taxes paid before the effective date of this article in a calendar

year for which the person paid ad valorem taxes to a school district

as provided by Section 111.301, Tax Code, before the effective date

of this article. An eligible person's right to claim a refund of

state sales and use and state franchise taxes that was established

under Section 111.301, Tax Code, in relation to taxes paid before

the effective date of this article in a calendar year for which the

person paid ad valorem taxes to a school district as provided by

Section 111.301, Tax Code, before the effective date of this

article is governed by the law in effect on the date the right to

claim the refund was established, and the former law is continued in

effect for that purpose.

SECTION 3.03. This article takes effect October 1, 2011.

ARTICLE 4. TAX RECORDS

SECTION 4.01. Section 2153.201, Occupations Code, is

amended by amending Subsection (b) and adding Subsection (c) to

read as follows:

(b) A record required under Subsection (a) must:

(1) be available at all times for inspection by the

attorney general, the comptroller, or an authorized representative

of the attorney general or comptroller as provided by Subsection

(c);

(2) include information relating to:

(A) the kind of each machine;

(B) the date each machine is:

(i) acquired or received in this state; and

(ii) placed in operation;

(i) county;

(ii) municipality, if any; and

(iii) street or rural route number;

(D) the name and complete address of each

operator of each machine;

(E) if the owner is an individual, the full name

and address of the owner; and

(F) if the owner is not an individual, the name

and address of each principal officer or member of the owner; and

(3) be maintained[:

[~~(A)~~] at a permanent address in this state

designated on the application for a license under Section

2153.153[~~; and~~

[~~(B)~~ ~~until the second anniversary of the date the~~

~~owner ceases ownership of the machine that is the subject of the~~

~~record~~].

for inspection under Subsection (b) for at least four years and as

required by Section 111.0041, Tax Code.

SECTION 4.02. Section 111.0041, Tax Code, is amended to

read as follows:

Sec. 111.0041. RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE

CLAIMS. (a) Except as provided by Subsection (b), a [~~Any~~]

taxpayer who is required by this title to keep records shall keep

those records open to inspection by the comptroller, the attorney

general, or the authorized representatives of either of them for at

least four years.

(b) A taxpayer is required to keep records, as provided by

Subsection (c) with respect to the taxpayer's claim, open for

inspection under Subsection (a) for more than four years throughout

any period when:

(1) any tax, penalty, or interest may be assessed,

collected, or refunded by the comptroller; or

(2) an administrative hearing is pending before the

comptroller, or a judicial proceeding is pending, to determine the

amount of the tax, penalty, or interest that is to be assessed,

collected, or refunded.

supporting documentation appropriate to the tax or fee for the

transactions in question to substantiate and enable verification of

the taxpayer's claim related to the amount of tax, penalty, or

interest to be assessed, collected, or refunded in an

administrative or judicial proceeding. Contemporaneous records

and supporting documentation appropriate to the tax or fee may

include, for example, invoices, vouchers, checks, shipping

records, contracts, or other equivalent records, such as

electronically stored images of such documents, reflecting legal

relationships and taxes collected or paid.

(d) This section prevails over any other conflicting

provision of this title.

SECTION 4.03. Section 112.052, Tax Code, is amended by

adding Subsection (d) to read as follows:

(d) A taxpayer shall produce contemporaneous records and

supporting documentation appropriate to the tax or fee for the

transactions in question to substantiate and enable verification of

a taxpayer's claim relating to the amount of the tax, penalty, or

interest that has been assessed or collected or will be refunded, as

required by Section 111.0041.

SECTION 4.04. Section 112.151, Tax Code, is amended by

adding Subsection (f) to read as follows:

(f) A taxpayer shall produce contemporaneous records and

supporting documentation appropriate to the tax or fee for the

transactions in question to substantiate and enable verification of

a taxpayer's claim relating to the amount of the tax, penalty, or

interest that has been assessed or collected or will be refunded, as

required by Section 111.0041.

SECTION 4.05. Subsection (b), Section 151.025, Tax Code, is

amended to read as follows:

(b) A record required by Subsection (a) [~~of this section~~]

shall be kept for not less than four years from the date [~~day~~] that

it is made unless:

(1) the comptroller authorizes in writing its

destruction at an earlier date; or

(2) Section 111.0041 requires that the record be kept

for a longer period.

SECTION 4.06. Section 152.063, Tax Code, is amended by

adding Subsection (h) to read as follows:

(h) Section 111.0041 applies to a person required to keep

records under this chapter.

SECTION 4.07. Section 152.0635, Tax Code, is amended by

adding Subsection (e) to read as follows:

(e) Section 111.0041 applies to a person required to keep

records under this chapter.

SECTION 4.08. Subsection (a), Section 154.209, Tax Code, is

amended to read as follows:

(a) Except as provided by Section 111.0041, each [~~Each~~]

permit holder shall keep records available for inspection and

copying by the comptroller and the attorney general for at least

four years.

SECTION 4.09. Subsection (a), Section 155.110, Tax Code, is

amended to read as follows:

(a) Except as provided by Section 111.0041, each [~~Each~~]

permit holder shall keep records available for inspection and

copying by the comptroller and the attorney general for at least

four years.

SECTION 4.10. Section 160.046, Tax Code, is amended by

adding Subsection (g) to read as follows:

(g) A person required to keep records under this section

shall also keep the records as required by Section 111.0041.

SECTION 4.11. Subchapter A, Chapter 162, Tax Code, is

amended by adding Section 162.0125 to read as follows:

Sec. 162.0125. DUTY TO KEEP RECORDS. A person required to

keep a record under this chapter shall also keep the record as

required by Section 111.0041.

SECTION 4.12. This article takes effect immediately if this

Act receives a vote of two-thirds of all the members elected to each

house, as provided by Section 39, Article III, Texas Constitution.

If this Act does not receive the vote necessary for immediate

effect, this article takes effect October 1, 2011.

ARTICLE 5. UNCLAIMED PROPERTY

SECTION 5.01. Subsection (b), Section 72.1017, Property

Code, as effective September 1, 2011, is amended to read as follows:

(b) Notwithstanding Section 73.102, a utility deposit is

presumed abandoned on the latest of:

(1) the first anniversary of [~~18 months after~~] the

date a refund check for the utility deposit was payable to the owner

of the deposit;

(2) the first anniversary of [~~18 months after~~] the

date the utility last received documented communication from the

owner of the utility deposit; or

(3) the first anniversary of [~~18 months after~~] the

date the utility issued a refund check for the deposit payable to

the owner of the deposit if, according to the knowledge and records

of the utility or payor of the check, during that period, a claim to

the check has not been asserted or an act of ownership by the payee

has not been exercised.

SECTION 5.02. This article takes effect on the 91st day

after the last day of the legislative session.

ARTICLE 6. CLASSIFICATION OF JUDICIAL AND COURT PERSONNEL

TRAINING FUND

SECTION 6.01. Section 56.001, Government Code, is amended

to read as follows:

Sec. 56.001. JUDICIAL AND COURT PERSONNEL TRAINING FUND.

(a) The judicial and court personnel training fund is an account

in the general revenue fund. Money in the judicial and court

personnel training fund may be appropriated only to [~~created in the~~

~~state treasury and shall be administered by~~] the court of criminal

appeals for the uses authorized in Section 56.003.

(b) [~~(i)~~] On requisition of the court of criminal appeals,

the comptroller shall draw a warrant on the fund for the amount

specified in the requisition for a use authorized in Section

56.003. A warrant may not exceed the amount appropriated for any

one fiscal year. [~~At the end of each state fiscal year, any~~

~~unexpended balance in the fund in excess of $500,000 shall be~~

~~transferred to the general revenue fund.~~]

ARTICLE 7. PROCESS SERVER CERTIFICATION FEES

SECTION 7.01. Section 51.008, Government Code, as effective

September 1, 2011, is amended by amending Subsection (c) and adding

Subsection (d) to read as follows:

System may collect the fees recommended by the process server

review board and approved by the supreme court. Fees collected

under this section shall be sent to the comptroller for deposit to

the credit of the general revenue fund [~~and may be appropriated only~~

~~to the office for purposes of this section~~].

(d) Fees collected under this section may be appropriated to

the Office of Court Administration of the Texas Judicial System for

the support of regulatory programs for process servers, guardians,

and court reporters.

[ARTICLE 8 reserved]

ARTICLE 9. REMITTANCE AND ALLOCATION OF CERTAIN MOTOR FUELS TAXES

SECTION 9.01. Section 162.113, Tax Code, is amended by

adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as

follows:

(a-1) On August 28, 2013, each licensed distributor and

licensed importer shall remit to the supplier or permissive

supplier, as applicable, a tax prepayment in an amount equal to 25

percent of the tax imposed by Section 162.101 for gasoline removed

at the terminal rack during July 2013 by the licensed distributor or

licensed importer, without accounting for any credit or allowance

to which the licensed distributor or licensed importer is entitled.

The supplier or permissive supplier shall remit the tax prepayment

received under this subsection to the comptroller by electronic

funds transfer on August 30, 2013, without accounting for any

credit or allowance to which the supplier or permissive supplier is

entitled. Subsections (c)-(e) do not apply to the tax prepayment

under this subsection.

(a-2) A licensed distributor or licensed importer may take a

credit against the amount of tax imposed by Section 162.101 for

gasoline removed at a terminal rack during August 2013 that is

required to be remitted to the supplier or permissive supplier, as

applicable, under Subsection (a) in September 2013. The amount of

the credit is equal to the amount of any tax prepayment remitted by

the licensed distributor or licensed importer as required by

Subsection (a-1).

(a-3) Subsections (a-1) and (a-2) apply to a supplier or an

affiliate of a supplier who removes gasoline at the terminal rack

for distribution to the same extent and in the same manner that

those subsections apply to a licensed distributor or licensed

importer.

(a-4) Subsections (a-1), (a-2), and (a-3) and this

subsection expire September 1, 2015.

SECTION 9.02. Section 162.214, Tax Code, is amended by

adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as

follows:

(a-1) On August 28, 2013, each licensed distributor and

licensed importer shall remit to the supplier or permissive

supplier, as applicable, a tax prepayment in an amount equal to 25

percent of the tax imposed by Section 162.201 for diesel fuel

removed at the terminal rack during July 2013 by the licensed

distributor or licensed importer, without accounting for any credit

or allowance to which the licensed distributor or licensed importer

is entitled. The supplier or permissive supplier shall remit the

tax prepayment received under this subsection to the comptroller by

electronic funds transfer on August 30, 2013, without accounting

for any credit or allowance to which the supplier or permissive

supplier is entitled. Subsections (c)-(e) do not apply to the tax

prepayment under this subsection.

(a-2) A licensed distributor or licensed importer may take a

credit against the amount of tax imposed by Section 162.201 for

diesel fuel removed at a terminal rack during August 2013 that is

required to be remitted to the supplier or permissive supplier, as

applicable, under Subsection (a) in September 2013. The amount of

the credit is equal to any tax prepayment remitted by the licensed

distributor or licensed importer as required by Subsection (a-1).

(a-3) Subsections (a-1) and (a-2) apply to a supplier or an

affiliate of a supplier who removes diesel fuel at the terminal rack

for distribution to the same extent and in the same manner that

those subsections apply to a licensed distributor or licensed

importer.

(a-4) Subsections (a-1), (a-2), and (a-3) and this

subsection expire September 1, 2015.

SECTION 9.03. Section 162.503, Tax Code, is amended to read

as follows:

Sec. 162.503. ALLOCATION OF GASOLINE TAX. (a) On or

before the fifth workday after the end of each month, the

comptroller, after making all deductions for refund purposes and

for the amounts allocated under Sections 162.502 and 162.5025,

shall allocate the net remainder of the taxes collected under

Subchapter B as follows:

(1) one-fourth of the tax shall be deposited to the

credit of the available school fund;

(2) one-half of the tax shall be deposited to the

credit of the state highway fund for the construction and

maintenance of the state road system under existing law; and

(3) from the remaining one-fourth of the tax the

comptroller shall:

(A) deposit to the credit of the county and road

district highway fund all the remaining tax receipts until a total

of $7,300,000 has been credited to the fund each fiscal year; and

(B) after the amount required to be deposited to

the county and road district highway fund has been deposited,

deposit to the credit of the state highway fund the remainder of the

one-fourth of the tax, the amount to be provided on the basis of

allocations made each month of the fiscal year, which sum shall be

used by the Texas Department of Transportation for the

construction, improvement, and maintenance of farm-to-market

roads.

(b) Notwithstanding Subsection (a), the comptroller may not

allocate revenue otherwise required to be allocated under

Subsection (a) during July and August 2013 before the first workday

of September 2013. The revenue shall be allocated as otherwise

provided by Subsection (a) not later than the fifth workday of

September 2013. This subsection expires September 1, 2015.

SECTION 9.04. Section 162.504, Tax Code, is amended to read

as follows:

Sec. 162.504. ALLOCATION OF DIESEL FUEL TAX. (a) On or

before the fifth workday after the end of each month, the

comptroller, after making deductions for refund purposes, for the

administration and enforcement of this chapter, and for the amounts

allocated under Section 162.5025, shall allocate the remainder of

the taxes collected under Subchapter C as follows:

(1) one-fourth of the taxes shall be deposited to the

credit of the available school fund; and

(2) three-fourths of the taxes shall be deposited to

the credit of the state highway fund.

(b) Notwithstanding Subsection (a), the comptroller may not

allocate revenue otherwise required to be allocated under

Subsection (a) during July and August 2013 before the first workday

of September 2013. The revenue shall be allocated as otherwise

provided by Subsection (a) not later than the fifth workday of

September 2013. This subsection expires September 1, 2015.

SECTION 9.05. The expiration of the amendments made to the

Tax Code in accordance with this article does not affect tax

liability accruing before the expiration of those amendments. That

liability continues in effect as if the amendments had not expired,

and the former law is continued in effect for the collection of

taxes due and for civil and criminal enforcement of the liability

for those taxes.

SECTION 9.06. This article takes effect October 1, 2011.

ARTICLE 10. REMITTANCE OF MIXED BEVERAGE TAXES AND TAXES AND FEES

ON CERTAIN ALCOHOLIC BEVERAGES

SECTION 10.01. Section 34.04, Alcoholic Beverage Code, is

amended by adding Subsections (c), (d), and (e) to read as follows:

of taxes due to be remitted in September 2013 that is equal to 25

percent of the amount the permittee is otherwise required to remit

during August 2013 under the reporting system prescribed by the

commission. The prepayment is in addition to the amount the

permittee is otherwise required to remit during August. The

permittee shall remit the additional payment in conjunction with

the report and payment otherwise required during that month.

(d) A permittee who remits the additional payment as

required by Subsection (c) may take a credit in the amount of the

additional payment against the next payment due under the reporting

system prescribed by the commission.

(e) Subsections (c) and (d) and this subsection expire

September 1, 2015.

SECTION 10.02. Section 48.04, Alcoholic Beverage Code, is

amended by adding Subsections (c), (d), and (e) to read as follows:

of taxes due to be remitted in September 2013 that is equal to 25

percent of the amount the permittee is otherwise required to remit

during August 2013 under the reporting system prescribed by the

commission. The prepayment is in addition to the amount the

permittee is otherwise required to remit during August. The

permittee shall remit the additional payment in conjunction with

the report and payment otherwise required during that month.

(d) A permittee who remits the additional payment as

required by Subsection (c) may take a credit in the amount of the

additional payment against the next payment due under the reporting

system prescribed by the commission.

(e) Subsections (c) and (d) and this subsection expire

September 1, 2015.

SECTION 10.03. Section 201.07, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 201.07. DUE DATE. (a) The tax on liquor is due and

payable on the 15th of the month following the first sale, together

with a report on the tax due.

(b) In August 2013, each permittee who is liable for the

taxes imposed by this subchapter shall remit a tax prepayment of

taxes due to be remitted in September 2013 that is equal to 25

percent of the amount the permittee is otherwise required to remit

during August 2013 under Subsection (a). The prepayment is in

addition to the amount the permittee is otherwise required to remit

during August. The permittee shall remit the additional payment in

conjunction with the report and payment otherwise required during

that month.

required by Subsection (b) may take a credit in the amount of the

additional payment against the next payment due under Subsection

(a).

(d) Subsections (b) and (c) and this subsection expire

September 1, 2015.

SECTION 10.04. Section 201.43, Alcoholic Beverage Code, is

amended by amending Subsection (b) and adding Subsections (c), (d),

and (e) to read as follows:

(b) The tax is due and payable on the 15th day of the month

following the month in which the taxable first sale occurs,

together with a report on the tax due.

imposed by this subchapter shall remit a tax prepayment of taxes due

to be remitted in September 2013 that is equal to 25 percent of the

amount the permittee is otherwise required to remit during August

2013 under Subsection (b). The prepayment is in addition to the

amount the permittee is otherwise required to remit during August.

The permittee shall remit the additional payment in conjunction

with the report and payment otherwise required during that month.

(d) A permittee who remits the additional payment as

required by Subsection (c) may take a credit in the amount of the

additional payment against the next payment due under Subsection

(b).

(e) Subsections (c) and (d) and this subsection expire

September 1, 2015.

SECTION 10.05. Section 203.03, Alcoholic Beverage Code, is

amended by amending Subsection (b) and adding Subsections (c), (d),

and (e) to read as follows:

(b) The tax is due and payable on the 15th day of the month

following the month in which the taxable first sale occurs,

together with a report on the tax due.

chapter shall remit a tax prepayment of taxes due to be remitted in

September 2013 that is equal to 25 percent of the amount the

licensee is otherwise required to remit during August 2013 under

Subsection (b). The prepayment is in addition to the amount the

licensee is otherwise required to remit during August. The

licensee shall remit the additional payment in conjunction with the

report and payment otherwise required during that month.

(d) A licensee who remits the additional payment as required

by Subsection (c) may take a credit in the amount of the additional

payment against the next payment due under Subsection (b).

(e) Subsections (c) and (d) and this subsection expire

September 1, 2015.

SECTION 10.06. Section 183.023, Tax Code, is amended to

read as follows:

Sec. 183.023. PAYMENT. (a) The tax due for the preceding

month shall accompany the return and shall be payable to the state.

(b) The comptroller shall deposit the revenue received

under this section in the general revenue fund.

imposed by this subchapter shall remit a tax prepayment of taxes due

to be remitted in September 2013 that is equal to 25 percent of the

amount the permittee is otherwise required to remit during August

2013 under Subsection (a). The prepayment is in addition to the

amount the permittee is otherwise required to remit during August.

The permittee shall remit the additional payment in conjunction

with the return and payment otherwise required during that month.

(d) A permittee who remits the additional payment as

required by Subsection (c) may take a credit in the amount of the

additional payment against the next payment due under Subsection

(a).

(e) Subsections (c) and (d) and this subsection expire

September 1, 2015.

SECTION 10.07. The expiration of the amendments made to the

Alcoholic Beverage Code and Tax Code in accordance with this

article does not affect tax liability accruing before the

expiration of those amendments. That liability continues in effect

as if the amendments had not expired, and the former law is

continued in effect for the collection of taxes due and for civil

and criminal enforcement of the liability for those taxes.

ARTICLE 11. CIGARETTE TAX STAMPING ALLOWANCE

SECTION 11.01. Subsection (a), Section 154.052, Tax Code,

is amended to read as follows:

(a) A distributor is, subject to the provisions of Section

154.051, entitled to 2.5 [~~three~~] percent of the face value of stamps

purchased as a stamping allowance for providing the service of

affixing stamps to cigarette packages, except that an out-of-state

distributor is entitled to receive only the same percentage of

stamping allowance as that given to Texas distributors doing

business in the state of the distributor.

SECTION 11.02. This article applies only to cigarette

stamps purchased on or after the effective date of this article.

Cigarette stamps purchased before the effective date of this

article are governed by the law in effect on the date the cigarette

stamps were purchased, and that law is continued in effect for that

purpose.

SECTION 11.03. This article takes effect October 1, 2011.

ARTICLE 12. SALES FOR RESALE

SECTION 12.01. Section 151.006, Tax Code, is amended by

amending Subsection (a) and adding Subsection (c) to read as

follows:

(a) "Sale for resale" means a sale of:

(1) tangible personal property or a taxable service to

a purchaser who acquires the property or service for the purpose of

reselling it with or as a taxable item as defined by Section 151.010

in the United States of America or a possession or territory of the

United States of America or in the United Mexican States in the

normal course of business in the form or condition in which it is

acquired or as an attachment to or integral part of other tangible

personal property or taxable service;

(2) tangible personal property to a purchaser for the

sole purpose of the purchaser's leasing or renting it in the United

States of America or a possession or territory of the United States

of America or in the United Mexican States in the normal course of

business to another person, but not if incidental to the leasing or

renting of real estate;

(3) tangible personal property to a purchaser who

acquires the property for the purpose of transferring it in the

United States of America or a possession or territory of the United

States of America or in the United Mexican States as an integral

part of a taxable service; [or]

(4) a taxable service performed on tangible personal

property that is held for sale by the purchaser of the taxable

service; or

(5) except as provided by Subsection (c), tangible

personal property to a purchaser who acquires the property for the

purpose of transferring it as an integral part of performing a

contract, or a subcontract of a contract, with the federal

government only if the purchaser:

(A) allocates and bills to the contract the cost

of the property as a direct or indirect cost; and

(B) transfers title to the property to the

federal government under the contract and applicable federal

acquisition regulations.

personal property or a taxable service to a purchaser who acquires

the property or service for the purpose of performing a service that

is not taxed under this chapter, regardless of whether title

transfers to the service provider's customer, unless the tangible

personal property or taxable service is purchased for the purpose

of reselling it to the United States in a contract, or a subcontract

of a contract, with any branch of the Department of Defense,

Department of Homeland Security, Department of Energy, National

Aeronautics and Space Administration, Central Intelligence Agency,

National Security Agency, National Oceanic and Atmospheric

Administration, or National Reconnaissance Office to the extent

allocated and billed to the contract with the federal government.

SECTION 12.02. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect October 1, 2011.

ARTICLE 13. REMITTANCE OF SALES AND USE TAXES

SECTION 13.01. Section 151.401, Tax Code, is amended by

adding Subsections (c), (d), and (e) to read as follows:

taxes imposed by this chapter on or before the 20th day of that

month under Subsection (a), who pays the taxes imposed by this

chapter by electronic funds transfer, and who does not prepay as

provided by Section 151.424 shall remit to the comptroller a tax

prepayment that is equal to 25 percent of the amount the taxpayer is

otherwise required to remit during August 2013 under Subsection

(a). The prepayment is in addition to the amount the taxpayer is

otherwise required to remit during August. The taxpayer shall

remit the additional payment in conjunction with the payment

otherwise required during that month. Section 151.424 does not

apply with respect to the additional payment required by this

subsection.

(d) A taxpayer who remits the additional payment as required

by Subsection (c) may take a credit in the amount of the additional

payment against the next payment due under Subsection (a).

(e) Subsections (c) and (d) and this subsection expire

September 1, 2015.

SECTION 13.02. Section 151.402, Tax Code, is amended to

read as follows:

Sec. 151.402. TAX REPORT DATES. (a) A [~~Except as provided~~

~~by Subsection (b) of this section, a~~] tax report required by this

chapter for a reporting period is due on the same date that the tax

payment for the period is due as provided by Section 151.401.

(b) A taxpayer may report a credit in the amount of any tax

prepayment remitted to the comptroller as required by Section

151.401(c) on the tax report required by this chapter that is

otherwise due in September 2013 [~~for taxes required by Section~~

~~151.401(a) to be paid on or before August 20 is due on or before the~~

~~20th day of the following month~~]. This subsection expires

September 1, 2015.

SECTION 13.03. The expiration of the amendments made to the

Tax Code in accordance with this article does not affect tax

liability accruing before the expiration of those amendments. That

liability continues in effect as if the amendments had not expired,

and the former law is continued in effect for the collection of

taxes due and for civil and criminal enforcement of the liability

for those taxes.

ARTICLE 14. PENALTIES FOR FAILURE TO REPORT OR REMIT CERTAIN TAXES

OR FEES

SECTION 14.01. Subsection (b), Section 111.00455, Tax Code,

is amended to read as follows:

(b) The following are not contested cases under Subsection

(a) and Section 2003.101, Government Code:

(1) a show cause hearing or any hearing not related to

the collection, receipt, administration, or enforcement of the

amount of a tax or fee imposed, or the penalty or interest

associated with that amount, except for a hearing under Section

151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;

(2) a property value study hearing under Subchapter M,

Chapter 403, Government Code;

(3) a hearing in which the issue relates to:

(A) Chapters 72-75, Property Code;

(B) forfeiture of a right to do business;

(D) articles of incorporation;

(E) a penalty imposed under Section 151.703(d)

[~~151.7031~~];

(F) the refusal or failure to settle under

Section 111.101; or

(G) a request for or revocation of an exemption

from taxation; and

(4) any other hearing not related to the collection,

receipt, administration, or enforcement of the amount of a tax or

fee imposed, or the penalty or interest associated with that

amount.

SECTION 14.02. Subsection (a), Section 151.468, Tax Code,

as effective September 1, 2011, is amended to read as follows:

(a) If a person fails to file a report required by this

subchapter or fails to file a complete report, the comptroller may

impose a civil or criminal penalty, or both, under Section

151.703(d) [~~151.7031~~] or 151.709.

SECTION 14.03. Section 151.703, Tax Code, is amended by

adding Subsection (d) to read as follows:

(d) In addition to any other penalty authorized by this

section, a person who fails to file a report as required by this

chapter shall pay a penalty of $50. The penalty provided by this

subsection is assessed without regard to whether the taxpayer

subsequently files the report or whether any taxes were due from the

taxpayer for the reporting period under the required report.

SECTION 14.04. Section 152.045, Tax Code, is amended by

adding Subsection (d) to read as follows:

(d) In addition to any other penalty provided by law, the

owner of a motor vehicle subject to the tax on gross rental receipts

who is required to file a report as provided by this chapter and who

fails to timely file the report shall pay a penalty of $50. The

penalty provided by this subsection is assessed without regard to

whether the taxpayer subsequently files the report or whether any

taxes were due from the taxpayer for the reporting period under the

required report.

SECTION 14.05. Section 152.047, Tax Code, is amended by

adding Subsection (j) to read as follows:

(j) In addition to any other penalty provided by law, the

seller of a motor vehicle sold in a seller-financed sale who is

required to file a report as provided by this chapter and who fails

to timely file the report shall pay a penalty of $50. The penalty

provided by this subsection is assessed without regard to whether

the taxpayer subsequently files the report or whether any taxes

were due from the taxpayer for the reporting period under the

required report.

SECTION 14.06. Section 156.202, Tax Code, is amended by

amending Subsection (c) and adding Subsection (d) to read as

follows:

~~section~~] is $1.

(d) In addition to any other penalty authorized by this

section, a person who fails to file a report as required by this

chapter shall pay a penalty of $50. The penalty provided by this

subsection is assessed without regard to whether the taxpayer

subsequently files the report or whether any taxes were due from the

taxpayer for the reporting period under the required report.

SECTION 14.07. Section 162.401, Tax Code, is amended by

adding Subsection (d) to read as follows:

(d) In addition to any other penalty authorized by this

section, a person who fails to file a report as required by this

chapter shall pay a penalty of $50. The penalty provided by this

subsection is assessed without regard to whether the taxpayer

subsequently files the report or whether any taxes were due from the

taxpayer for the reporting period under the required report.

SECTION 14.08. Section 171.362, Tax Code, is amended by

amending Subsection (c) and adding Subsection (f) to read as

follows:

~~section~~] is $1.

(f) In addition to any other penalty authorized by this

section, a taxable entity who fails to file a report as required by

this chapter shall pay a penalty of $50. The penalty provided by

this subsection is assessed without regard to whether the taxable

entity subsequently files the report or whether any taxes were due

from the taxable entity for the reporting period under the required

report.

SECTION 14.09. Subchapter B, Chapter 183, Tax Code, is

amended by adding Section 183.024 to read as follows:

Sec. 183.024. FAILURE TO PAY TAX OR FILE REPORT. (a) A

permittee who fails to file a report as required by this chapter or

who fails to pay a tax imposed by this chapter when due shall pay

five percent of the amount due as a penalty, and if the permittee

fails to file the report or pay the tax within 30 days after the day

the tax or report is due, the permittee shall pay an additional five

percent of the amount due as an additional penalty.

(b) The minimum penalty under Subsection (a) is $1.

the due date.

(d) In addition to any other penalty authorized by this

section, a permittee who fails to file a report as required by this

chapter shall pay a penalty of $50. The penalty provided by this

subsection is assessed without regard to whether the permittee

subsequently files the report or whether any taxes were due from the

permittee for the reporting period under the required report.

SECTION 14.10. Section 771.0712, Health and Safety Code, is

amended by adding Subsections (c) and (d) to read as follows:

collected or payable as provided by this section and comptroller

rules shall pay five percent of the amount due and payable as a

penalty, and if the seller fails to file the report or remit the fee

within 30 days after the day the fee or report is due, the seller

shall pay an additional five percent of the amount due and payable

as an additional penalty.

(d) In addition to any other penalty authorized by this

section, a seller who fails to file a report as provided by this

section shall pay a penalty of $50. The penalty provided by this

subsection is assessed without regard to whether the seller

subsequently files the report or whether any taxes were due from the

seller for the reporting period under the required report.

SECTION 14.11. Section 151.7031, Tax Code, is repealed.

SECTION 14.12. The change in law made by this article

applies only to a report due or a tax or fee due and payable on or

after the effective date of this article. A report due or a tax or

fee due and payable before the effective date of this article is

governed by the law in effect at that time, and that law is

continued in effect for that purpose.

SECTION 14.13. This article takes effect October 1, 2011.

ARTICLE 15. FISCAL MATTERS RELATED TO VOTER REGISTRATION

SECTION 15.01. Subsections (b), (c), and (d), Section

18.065, Election Code, are amended to read as follows:

(b) On determining that a registrar is not in substantial

compliance, the secretary shall deliver written notice of the

noncompliance to[:

[~~(1)~~] the registrar and include[~~, including~~] in the

notice a description of the violation and an explanation of the

action necessary for substantial compliance and of the consequences

of noncompliance[~~; and~~

[~~(2)~~ ~~the comptroller of public accounts, including in~~

~~the notice the identity of the noncomplying registrar~~].

corrected the violation and is in substantial compliance, the

secretary shall deliver written notice to the registrar [~~and to the~~

~~comptroller~~] that the registrar is in substantial compliance.

(d) [~~The comptroller shall retain a notice received under~~

~~this section on file until July 1 following the voting year in which~~

~~it is received.~~] The secretary shall retain a copy of each notice

the secretary delivers under this section for two years after the

date the notice is delivered.

SECTION 15.02. Subsection (a), Section 19.001, Election

Code, is amended to read as follows:

(a) Before May 15 of each year, the registrar shall prepare

and submit to the secretary of state [~~comptroller of public~~

~~accounts~~] a statement containing:

(1) the total number of initial registrations for the

previous voting year;

(2) the total number of registrations canceled under

Sections 16.031(a)(1), 16.033, and 16.0332 for the previous voting

year; and

(3) the total number of registrations for which

information was updated for the previous voting year.

SECTION 15.03. The heading to Section 19.002, Election

Code, is amended to read as follows:

Sec. 19.002. PAYMENTS [~~ISSUANCE OF WARRANTS BY~~

~~COMPTROLLER~~].

SECTION 15.04. Subsection (b), Section 19.002, Election

Code, is amended to read as follows:

(b) After June 1 of each year, the secretary of state

[~~comptroller of public accounts~~] shall make payments [~~issue~~

~~warrants~~] pursuant to vouchers submitted by the registrar and

approved by the secretary of state in amounts that in the aggregate

do not exceed the registrar's entitlement. The secretary of state

shall prescribe the procedures necessary to implement this

subsection.

SECTION 15.05. Subsection (d), Section 19.002, Election

Code, as effective September 1, 2011, is amended to read as

follows:

(d) The secretary of state [~~comptroller~~] may not make a

payment under Subsection (b) [~~issue a warrant~~] if on June 1 of the

year in which the payment [~~warrant~~] is to be made [~~issued the most~~

~~recent notice received by the comptroller from the secretary of~~

~~state under Section 18.065 indicates that~~] the registrar is not in

substantial compliance with Section 15.083, 16.032, or 18.065 or

with rules implementing the registration service program.

SECTION 15.06. The heading to Section 19.0025, Election

Code, is amended to read as follows:

Sec. 19.0025. ELECTRONIC ADMINISTRATION OF VOUCHERS AND

PAYMENTS [~~WARRANTS~~].

SECTION 15.07. Subsection (a), Section 19.0025, Election

Code, is amended to read as follows:

(a) The secretary of state shall establish and maintain an

online electronic system for administering vouchers submitted and

payments made [~~warrants issued~~] under Section 19.002.

SECTION 15.08. Subsection (c), Section 19.002, Election

Code, is repealed.

ARTICLE 16. CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF

PUBLIC ACCOUNTS

SECTION 16.01. 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, "compensation" has the meaning

assigned by Section 403.055 and [~~"compensation,"~~] "indebtedness,"

"state agency," "state employee," and "successor" have the meanings

assigned by Section 666.001.

SECTION 16.02. Subsection (h), Section 404.022, Government

Code, is amended to read as follows:

(h) The comptroller may execute a simplified version of a

depository agreement with an eligible institution desiring to hold

[~~$98,000 or less in~~] state deposits that are fully insured by the

Federal Deposit Insurance Corporation or the National Credit Union

Share Insurance Fund.

SECTION 16.03. Subsection (d), Section 403.0551,

Government Code, as amended by this article, applies to a deduction

made on or after the effective date of this Act for an indebtedness

to a state agency regardless of:

(1) the date the indebtedness accrued; or

(2) the dates of the pay period for which the

compensation from which the indebtedness is deducted is earned.

ARTICLE 17. PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND

OTHER MATERIALS

SECTION 17.01. Subsection (c), Section 61.539, Education

Code, is amended to read as follows:

board [~~comptroller~~] shall prepare a report for that fiscal year of

the number of students registered in a medical branch, school, or

college, the total amount of tuition charges collected by each

institution, the total amount transferred to the comptroller under

this section, and the total amount available in the physician

education loan repayment program account for the repayment of

student loans of physicians under this subchapter. The board

[~~comptroller~~] shall deliver a copy of the report to [~~the board and~~

to] the governor, lieutenant governor, and speaker of the house of

representatives not later than January 1 following the end of the

fiscal year covered by the report.

SECTION 17.02. Subsection (c), Section 5.05, Tax Code, is

amended to read as follows:

materials under this section [~~provide without charge one copy of~~

~~all materials to officials of local government who are responsible~~]

for administering the property tax system. [~~If a local government~~

~~official requests more than one copy, the comptroller may charge a~~

~~reasonable fee to offset the costs of printing and distributing the~~

~~materials.~~] The comptroller shall make the materials available to

local governmental officials and members of the public but may

charge a reasonable fee to offset the costs of preparing, printing,

and distributing the materials.

SECTION 17.03. Section 5.06, Tax Code, is amended to read as

follows:

Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES. [~~(a)~~] The

comptroller shall prepare and electronically publish a pamphlet

explaining the remedies available to dissatisfied taxpayers and the

procedures to be followed in seeking remedial action. The

comptroller shall include in the pamphlet advice on preparing and

presenting a protest.

[~~(b)~~ ~~The comptroller shall provide without charge a~~

~~reasonable number of copies of the pamphlet to any person on~~

~~request. The comptroller may charge a person who requests multiple~~

~~copies of the pamphlet a reasonable fee to offset the costs of~~

~~printing and distributing those copies. The comptroller at its~~

~~discretion shall determine the number of copies that a person may~~

~~receive without charge.~~]

SECTION 17.04. Section 5.09, Tax Code, is amended to read as

follows:

Sec. 5.09. BIENNIAL [~~ANNUAL~~] REPORTS. (a) The comptroller

shall prepare a biennial [~~publish an annual~~] report of [~~the~~

~~operations of the appraisal districts. The report shall include~~

~~for each appraisal district, each county, and each school district~~

~~and may include for other taxing units~~] the total appraised

values[~~, assessed values,~~] and taxable values of taxable property

by category [~~class of property, the assessment ratio,~~] and the tax

rates of each county, municipality, and school district in effect

for the two years preceding the year in which the report is prepared

[~~rate~~].

(b) Not later than December 31 of each even-numbered year,

the [~~The~~] comptroller shall:

(1) electronically publish on the comptroller's

Internet website the [~~deliver a copy of each annual~~] report

required by [~~published under~~] Subsection (a); and

(2) notify [~~of this section to~~] the governor, the

lieutenant governor, and each member of the legislature that the

report is available on the website.

SECTION 17.05. The following are repealed:

(1) Section 403.030 and Subsection (e), Section

552.143, Government Code; and

(2) Subchapter F, Chapter 379A, Local Government Code.

ARTICLE 18. SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE

SECTION 18.01. Subsection (b), Section 101.053, Insurance

Code, is amended to read as follows:

(b) Sections 101.051 and 101.052 do not apply to:

(1) the lawful transaction of surplus lines insurance

under Chapter 981;

(2) the lawful transaction of reinsurance by insurers;

(3) a transaction in this state that:

(A) involves a policy that:

(i) is lawfully solicited, written, and

delivered outside this state; and

(ii) covers, at the time the policy is

issued, only subjects of insurance that are not resident, located,

or expressly to be performed in this state; and

(B) takes place after the policy is issued;

(4) a transaction:

(A) that involves an insurance contract

independently procured by the insured from an insurance company not

authorized to do insurance business in this state through

negotiations occurring entirely outside this state;

(B) that is reported; and

in accordance with Chapter 226;

(5) a transaction in this state that:

(A) involves group life, health, or accident

insurance, other than credit insurance, and group annuities in

which the master policy for the group was lawfully issued and

delivered in a state in which the insurer or person was authorized

to do insurance business; and

(B) is authorized by a statute of this state;

(6) an activity in this state by or on the sole behalf

of a nonadmitted captive insurance company that insures solely:

(A) directors' and officers' liability insurance

for the directors and officers of the company's parent and

affiliated companies;

(B) the risks of the company's parent and

affiliated companies; or

by Paragraphs (A) and (B);

(7) the issuance of a qualified charitable gift

annuity under Chapter 102; or

(8) a lawful transaction by a servicing company of the

Texas workers' compensation employers' rejected risk fund under

Section 4.08, Article 5.76-2, as that article existed before its

repeal.

SECTION 18.02. Section 225.001, Insurance Code, is amended

to read as follows:

Sec. 225.001. DEFINITIONS [~~DEFINITION~~]. In this chapter:

(1) "Affiliate" means, with respect to an insured, a

person or entity that controls, is controlled by, or is under common

control with the insured.

(2) "Affiliated group" means a group of entities whose

members are all affiliated.

(3) "Control" means, with respect to determining the

home state of an affiliated entity:

(A) to directly or indirectly, acting through one

or more persons, own, control, or hold the power to vote at least 25

percent of any class of voting security of the affiliated entity; or

(B) to control in any manner the election of the

majority of directors or trustees of the affiliated entity.

(4) "Home state" means:

(A) for an insured that is not an affiliated

group described by Paragraph (B):

(i) the state in which the insured

maintains the insured's principal residence, if the insured is an

individual;

(ii) the state in which an insured that is

not an individual maintains its principal place of business; or

(iii) if 100 percent of the insured risk is

located outside of the state in which the insured maintains the

insured's principal residence or maintains the insured's principal

place of business, as applicable, the state to which the largest

percentage of the insured's taxable premium for the insurance

contract that covers the risk is allocated; or

(B) for an affiliated group with respect to which

more than one member is a named insured on a single insurance

contract subject to this chapter, the home state of the member, as

determined under Paragraph (A), that has the largest percentage of

premium attributed to it under the insurance contract.

(5) "Premium" means any payment made in consideration

for insurance and[~~, "premium"~~] includes:

(A) [~~(1)~~] a premium;

(B) premium deposits;

(D) a registration fee;

(E) [~~(3)~~] an assessment;

(F) [~~(4)~~] dues; and

(G) [~~(5)~~] any other compensation given in

consideration for surplus lines insurance.

SECTION 18.03. Section 225.002, Insurance Code, is amended

to read as follows:

Sec. 225.002. APPLICABILITY OF CHAPTER. This chapter

applies to a surplus lines agent who collects gross premiums for

surplus lines insurance for any risk in which this state is the home

state of the insured.

SECTION 18.04. Section 225.004, Insurance Code, is amended

by adding Subsections (a-1) and (f) and amending Subsections (b),

(c), and (e) to read as follows:

(a-1) Consistent with 15 U.S.C. Section 8201 et seq., this

state may not impose a premium tax on nonadmitted insurance

premiums other than premiums paid for insurance in which this state

is the home state of the insured.

(b) Taxable gross premiums under this section are based on

gross premiums written or received for surplus lines insurance

placed through an eligible surplus lines insurer during a calendar

year. Notwithstanding the tax basis described by this subsection,

the comptroller by rule may establish an alternate basis for

taxation for multistate and single-state policies for the purpose

of achieving uniformity.

exposures only partially located in this state, and this state has

not entered into a cooperative agreement, reciprocal agreement, or

compact with another state for the collection of surplus lines tax

as authorized by Chapter 229, the tax is computed on the entire

policy [~~portion of the~~] premium for any policy in which this state

is the home state of the insured [~~that is properly allocated to a~~

~~risk or exposure located in this state~~].

(e) Premiums [~~The following premiums are not taxable in~~

~~this state:~~

[~~(1)~~ ~~premiums properly allocated to another state that~~

~~are specifically exempt from taxation in that state; and~~

[~~(2) premiums~~] on risks or exposures that are properly

allocated to federal or international waters or are under the

jurisdiction of a foreign government are not taxable in this state.

(f) If this state enters a cooperative agreement,

reciprocal agreement, or compact with another state for the

allocation of surplus lines tax as authorized by Chapter 229, taxes

due on multistate policies shall be allocated and reported in

accordance with the agreement or compact.

SECTION 18.05. Section 225.005, Insurance Code, is amended

to read as follows:

Sec. 225.005. TAX EXCLUSIVE. The tax imposed by this

chapter is a transaction tax collected by the surplus lines agent of

record and is in lieu of any [~~all~~] other transaction [~~insurance~~]

taxes on these premiums.

SECTION 18.06. Section 225.009, Insurance Code, is amended

by adding Subsection (d) to read as follows:

(d) Notwithstanding Subsections (a), (b), and (c), if this

state enters a cooperative agreement, reciprocal agreement, or

compact with another state for the allocation of surplus lines tax

as authorized by Chapter 229, the tax shall be allocated and

reported in accordance with the terms of the agreement or compact.

SECTION 18.07. Section 226.051, Insurance Code, is amended

to read as follows:

Sec. 226.051. DEFINITIONS [~~DEFINITION~~]. In this

subchapter:

(1) "Affiliate" means, with respect to an insured, a

person or entity that controls, is controlled by, or is under common

control with the insured.

(2) "Affiliated group" means a group of entities whose

members are all affiliated.

(3) "Control" means, with respect to determining the

home state of an affiliated entity:

(A) to directly or indirectly, acting through one

or more persons, own, control, or hold the power to vote at least 25

percent of any class of voting security of the affiliated entity; or

(B) to control in any manner the election of the

majority of directors or trustees of the affiliated entity.

(4) "Home state" means:

(A) for an insured that is not an affiliated

group described by Paragraph (B):

(i) the state in which the insured

maintains the insured's principal residence, if the insured is an

individual;

(ii) the state in which an insured that is

not an individual maintains its principal place of business; or

(iii) if 100 percent of the insured risk is

located outside of the state in which the insured maintains the

insured's principal residence or maintains the insured's principal

place of business, as applicable, the state to which the largest

percentage of the insured's taxable premium for the insurance

contract that covers the risk is allocated; or

(B) for an affiliated group with respect to which

more than one member is a named insured on a single insurance

contract subject to this chapter, the home state of the member, as

determined under Paragraph (A), that has the largest percentage of

premium attributed to it under the insurance contract.

(5) "Independently procured insurance" means

insurance procured directly by an insured from a nonadmitted

insurer.

(6) "Premium" means any payment made in consideration

for insurance and[~~, "premium"~~] includes [~~any consideration for~~

~~insurance, including~~]:

(A) [~~(1)~~] a premium;

(B) premium deposits;

(D) a registration fee;

(E) an assessment;

(F) [~~(3)~~] dues; and

(G) any other compensation given in

consideration for insurance.

SECTION 18.08. Section 226.052, Insurance Code, is amended

to read as follows:

Sec. 226.052. APPLICABILITY OF SUBCHAPTER. This subchapter

applies to an insured who procures an independently procured

insurance contract for any risk in which this state is the home

state of the insured [~~in accordance with Section 101.053(b)(4)~~].

SECTION 18.09. Section 226.053, Insurance Code, is amended

by amending Subsections (a) and (b) and adding Subsection (d) to

read as follows:

(a) A tax is imposed on each insured at the rate of 4.85

percent of the premium paid for the insurance contract procured in

accordance with Section 226.052 [~~101.053(b)(4)~~].

(b) If an independently procured insurance policy

[~~contract~~] covers risks or exposures only partially located in this

state and this state has not joined a cooperative agreement,

reciprocal agreement, or compact with another state for the

allocation of nonadmitted insurance taxes as authorized by Chapter

229, the tax is computed on the entire policy [~~portion of the~~]

premium for any policy in which this state is the home state of the

insured [~~that is properly allocated to a risk or exposure located in~~

~~this state~~].

(d) If this state enters into a cooperative agreement,

reciprocal agreement, or compact with another state for the

allocation of nonadmitted insurance taxes as authorized by Chapter

229, the tax due on multistate policies shall be allocated and

reported in accordance with the agreement or compact.

SECTION 18.10. Section 981.008, Insurance Code, is amended

to read as follows:

Sec. 981.008. SURPLUS LINES INSURANCE PREMIUM TAX. The

premiums charged for surplus lines insurance are subject to the

premium tax, if applicable, imposed under Chapter 225.

SECTION 18.11. The following provisions are repealed:

(1) Subsections (d) and (d-1), Section 225.004,

Insurance Code; and

(2) Subsection (b-1), Section 226.053, Insurance

Code.

SECTION 18.12. The changes in law made by this article to

Chapters 225 and 226, Insurance Code, apply only to an insurance

policy that is delivered, issued for delivery, or renewed on or

after July 21, 2011. A policy that is delivered, issued for

delivery, or renewed before July 21, 2011, is governed by the law as

it existed immediately before the effective date of this article,

and that law is continued in effect for that purpose.

SECTION 18.13. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect on the 91st day after

the last day of the legislative session.

ARTICLE 19. FISCAL MATTERS CONCERNING OIL AND GAS REGULATION

SECTION 19.01. Subsection (c), Section 81.0521, Natural

Resources Code, is amended to read as follows:

[~~including~~] any penalties collected in connection with the fee,

shall be deposited to the oil and gas regulation and [~~oil-field~~]

cleanup fund as provided by Section 81.067 [~~91.111~~].

SECTION 19.02. Subchapter C, Chapter 81, Natural Resources

Code, is amended by adding Sections 81.067 through 81.070 to read as

follows:

Sec. 81.067. OIL AND GAS REGULATION AND CLEANUP FUND.

(a) The oil and gas regulation and cleanup fund is created as an

account in the general revenue fund of the state treasury.

(b) The commission shall certify to the comptroller the date

on which the balance in the fund equals or exceeds $20 million. The

oil-field cleanup regulatory fees on oil and gas shall not be

collected or required to be paid on or after the first day of the

second month following the certification, except that the

comptroller shall resume collecting the fees on receipt of a

commission certification that the fund has fallen below $10

million. The comptroller shall continue collecting the fees until

collections are again suspended in the manner provided by this

subsection.

(1) proceeds from bonds and other financial security

required by this chapter and benefits under well-specific plugging

insurance policies described by Section 91.104(c) that are paid to

the state as contingent beneficiary of the policies, subject to the

refund provisions of Section 91.1091, if applicable;

(2) private contributions, including contributions

made under Section 89.084;

(3) expenses collected under Section 89.083;

(4) fees imposed under Section 85.2021;

(5) costs recovered under Section 91.457 or 91.459;

(6) proceeds collected under Sections 89.085 and

91.115;

(7) interest earned on the funds deposited in the

fund;

(8) oil and gas waste hauler permit application fees

collected under Section 29.015, Water Code;

(9) costs recovered under Section 91.113(f);

(10) hazardous oil and gas waste generation fees

collected under Section 91.605;

(11) oil-field cleanup regulatory fees on oil

collected under Section 81.116;

(12) oil-field cleanup regulatory fees on gas

collected under Section 81.117;

(13) fees for a reissued certificate collected under

Section 91.707;

(14) fees collected under Section 91.1013;

(15) fees collected under Section 89.088;

(16) fees collected under Section 91.142;

(17) fees collected under Section 91.654;

(18) costs recovered under Sections 91.656 and 91.657;

(19) two-thirds of the fees collected under Section

81.0521;

(20) fees collected under Sections 89.024 and 89.026;

(21) legislative appropriations; and

(22) any surcharges collected under Section 81.070.

Sec. 81.068. PURPOSE OF OIL AND GAS REGULATION AND CLEANUP

FUND. Money in the oil and gas regulation and cleanup fund may be

used by the commission or its employees or agents for any purpose

related to the regulation of oil and gas development, including oil

and gas monitoring and inspections, oil and gas remediation, oil

and gas well plugging, public information and services related to

those activities, and administrative costs and state benefits for

personnel involved in those activities.

Sec. 81.069. REPORTING ON PROGRESS IN MEETING PERFORMANCE

GOALS FOR THE OIL AND GAS REGULATION AND CLEANUP FUND. (a) The

commission, through the legislative appropriations request

process, shall establish specific performance goals for the oil and

gas regulation and cleanup fund for the next biennium, including

goals for each quarter of each state fiscal year of the biennium for

the number of:

(1) orphaned wells to be plugged with state-managed

funds;

(2) abandoned sites to be investigated, assessed, or

cleaned up with state funds; and

(3) surface locations to be remediated.

(b) The commission shall provide quarterly reports to the

Legislative Budget Board that include:

(1) the following information with respect to the

period since the last report was provided as well as cumulatively:

(A) the amount of money deposited in the oil and

gas regulation and cleanup fund;

(B) the amount of money spent from the fund for

the purposes described by Subsection (a);

(D) the commission's progress in meeting the

quarterly performance goals established under Subsection (a) and,

if the number of orphaned wells plugged with state-managed funds,

abandoned sites investigated, assessed, or cleaned up with state

funds, or surface locations remediated is at least five percent

less than the number projected in the applicable goal established

under Subsection (a), an explanation of the reason for the

variance; and

(2) any additional information or data requested in

writing by the Legislative Budget Board.

available to the public, annually, a report that reviews the extent

to which money provided under Section 81.067 has enabled the

commission to better protect the environment through oil-field

cleanup activities. The report must include:

(1) the performance goals established under

Subsection (a) for that state fiscal year, the commission's

progress in meeting those performance goals, and, if the number of

orphaned wells plugged with state-managed funds, abandoned sites

investigated, assessed, or cleaned up with state funds, or surface

locations remediated is at least five percent less than the number

projected in the applicable goal established under Subsection (a),

an explanation of the reason for the variance;

(2) the number of orphaned wells plugged with

state-managed funds, by region;

(3) the number of wells orphaned, by region;

(4) the number of inactive wells not currently in

compliance with commission rules, by region;

(5) the status of enforcement proceedings for all

wells in violation of commission rules and the period during which

the wells have been in violation, by region in which the wells are

located;

(6) the number of surface locations remediated, by

region;

(7) a detailed accounting of expenditures of money in

the fund for oil-field cleanup activities, including expenditures

for plugging of orphaned wells, investigation, assessment, and

cleaning up of abandoned sites, and remediation of surface

locations;

(8) the method by which the commission sets priorities

by which it determines the order in which orphaned wells are

plugged;

(9) a projection of the amount of money needed for the

next biennium for plugging orphaned wells, investigating,

assessing, and cleaning up abandoned sites, and remediating surface

locations; and

(10) the number of sites successfully remediated under

the voluntary cleanup program under Subchapter O, Chapter 91, by

region.

Sec. 81.070. ESTABLISHMENT OF SURCHARGES ON FEES.

(a) Except as provided by Subsection (b), the commission by rule

shall provide for the imposition of reasonable surcharges as

necessary on fees imposed by the commission that are required to be

deposited to the credit of the oil and gas regulation and cleanup

fund as provided by Section 81.067 in amounts sufficient to enable

the commission to recover the costs of performing the functions

specified by Section 81.068 from those fees and surcharges.

(b) The commission may not impose a surcharge on an

oil-field cleanup regulatory fee on oil collected under Section

81.116 or an oil-field cleanup regulatory fee on gas collected

under Section 81.117.

determining the amount of a surcharge that takes into account:

(1) the time required for regulatory work associated

with the activity in connection with which the surcharge is

imposed;

(2) the number of individuals or entities from which

the commission's costs may be recovered;

(3) the effect of the surcharge on operators of all

sizes, as measured by the number of oil or gas wells operated;

(4) the balance in the oil and gas regulation and

cleanup fund; and

(5) any other factors the commission determines to be

important to the fair and equitable imposition of the surcharge.

(d) The commission shall collect a surcharge on a fee at the

time the fee is collected.

(e) A surcharge collected under this section shall be

deposited to the credit of the oil and gas regulation and cleanup

fund as provided by Section 81.067.

(f) A surcharge collected under this section shall not

exceed an amount equal to 185 percent of the fee on which it is

imposed.

SECTION 19.03. Section 81.115, Natural Resources Code, is

amended to read as follows:

Sec. 81.115. APPROPRIATIONS [~~PAYMENTS~~] TO COMMISSION FOR

OIL AND GAS REGULATION AND CLEANUP PURPOSES [~~DIVISION~~]. Money

appropriated to the [~~oil and gas division of the~~] commission under

the General Appropriations Act for the purposes described by

Section 81.068 shall be paid from the oil and gas regulation and

cleanup fund or other fund indicated by the appropriation [~~General~~

~~Revenue Fund~~].

SECTION 19.04. Subsections (d) and (e), Section 81.116,

Natural Resources Code, are amended to read as follows:

(d) The comptroller shall suspend collection of the fee in

the manner provided by Section 81.067 [~~91.111~~]. The exemptions and

reductions set out in Sections 202.052, 202.054, 202.056, 202.057,

202.059, and 202.060, Tax Code, do not affect the fee imposed by

this section.

(e) Proceeds from the fee, excluding [~~including~~] any

penalties collected in connection with the fee, shall be deposited

to the oil and gas regulation and [~~oil-field~~] cleanup fund as

provided by Section 81.067 [~~91.111 of this code~~].

SECTION 19.05. Subsections (d) and (e), Section 81.117,

Natural Resources Code, are amended to read as follows:

(d) The comptroller shall suspend collection of the fee in

the manner provided by Section 81.067 [~~91.111~~]. The exemptions and

reductions set out in Sections 201.053, 201.057, 201.058, and

202.060, Tax Code, do not affect the fee imposed by this section.

(e) Proceeds from the fee, excluding [~~including~~] any

penalties collected in connection with the fee, shall be deposited

to the oil and gas regulation and [~~oil-field~~] cleanup fund as

provided by Section 81.067 [~~91.111 of this code~~].

SECTION 19.06. Subsection (d), Section 85.2021, Natural

Resources Code, is amended to read as follows:

(d) All fees collected under this section shall be deposited

in the oil and gas regulation and [~~state oil-field~~] cleanup fund.

SECTION 19.07. Subsection (d), Section 89.024, Natural

Resources Code, is amended to read as follows:

(d) An operator who files an abeyance of plugging report

must pay an annual fee of $100 for each well covered by the report.

A fee collected under this section shall be deposited in the oil and

gas regulation and [~~oil-field~~] cleanup fund.

SECTION 19.08. Subsection (d), Section 89.026, Natural

Resources Code, is amended to read as follows:

(d) An operator who files documentation described by

Subsection (a) must pay an annual fee of $50 for each well covered

by the documentation. A fee collected under this section shall be

deposited in the oil and gas regulation and [~~oil-field~~] cleanup

fund.

SECTION 19.09. Subsection (d), Section 89.048, Natural

Resources Code, is amended to read as follows:

(d) On successful plugging of the well by the well plugger,

the surface estate owner may submit documentation to the commission

of the cost of the well-plugging operation. The commission shall

reimburse the surface estate owner from money in the oil and gas

regulation and [~~oil-field~~] cleanup fund in an amount not to exceed

50 percent of the lesser of:

(1) the documented well-plugging costs; or

(2) the average cost incurred by the commission in the

preceding 24 months in plugging similar wells located in the same

general area.

SECTION 19.10. Subsection (j), Section 89.083, Natural

Resources Code, is amended to read as follows:

(j) Money collected in a suit under this section shall be

deposited in the oil and gas regulation and [~~state oil-field~~]

cleanup fund.

SECTION 19.11. Subsection (d), Section 89.085, Natural

Resources Code, is amended to read as follows:

(d) The commission shall deposit money received from the

sale of well-site equipment or hydrocarbons under this section to

the credit of the oil and gas regulation and [~~oil-field~~] cleanup

fund. The commission shall separately account for money and credit

received for each well.

SECTION 19.12. The heading to Section 89.086, Natural

Resources Code, is amended to read as follows:

Sec. 89.086. CLAIMS AGAINST OIL AND GAS REGULATION AND [~~THE~~

~~OIL-FIELD~~] CLEANUP FUND.

SECTION 19.13. Subsections (a) and (h) through (k), Section

89.086, Natural Resources Code, are amended to read as follows:

(a) A person with a legal or equitable ownership or security

interest in well-site equipment or hydrocarbons disposed of under

Section 89.085 [~~of this code~~] may make a claim against the oil and

gas regulation and [~~oil-field~~] cleanup fund unless an element of

the transaction giving rise to the interest occurs after the

commission forecloses its statutory lien under Section 89.083.

(h) The commission shall suspend an amount of money in the

oil and gas regulation and [~~oil-field~~] cleanup fund equal to the

amount of the claim until the claim is finally resolved. If the

provisions of Subsection (k) [~~of this section~~] prevent suspension

of the full amount of the claim, the commission shall treat the

claim as two consecutively filed claims, one in the amount of funds

available for suspension and the other in the remaining amount of

the claim.

(i) A claim made by or on behalf of the operator or a

nonoperator of a well or a successor to the rights of the operator

or nonoperator is subject to a ratable deduction from the proceeds

or credit received for the well-site equipment to cover the costs

incurred by the commission in removing the equipment or

hydrocarbons from the well or in transporting, storing, or

disposing of the equipment or hydrocarbons. A claim made by a

person who is not an operator or nonoperator is subject to a ratable

deduction for the costs incurred by the commission in removing the

equipment from the well. If a claimant is a person who is

responsible under law or commission rules for plugging the well or

cleaning up pollution originating on the lease or if the claimant

owes a penalty assessed by the commission or a court for a violation

of a commission rule or order, the commission may recoup from or

offset against a valid claim an expense incurred by the oil and gas

regulation and [~~oil-field~~] cleanup fund that is not otherwise

reimbursed or any penalties owed. An amount recouped from,

deducted from, or offset against a claim under this subsection

shall be treated as an invalid portion of the claim and shall remain

suspended in the oil and gas regulation and [~~oil-field~~] cleanup

fund in the manner provided by Subsection (j) [~~of this section~~].

(j) If the commission finds that a claim is valid in whole or

in part, the commission shall pay the valid portion of the claim

from the suspended amount in the oil and gas regulation and

[~~oil-field~~] cleanup fund not later than the 30th day after the date

of the commission's decision. If the commission finds that a claim

is invalid in whole or in part, the commission shall continue to

suspend in the oil and gas regulation and [~~oil-field~~] cleanup fund

an amount equal to the invalid portion of the claim until the period

during which the commission's decision may be appealed has expired

or, if appealed, during the period the case is under judicial

review. If on appeal the district court finds the claim valid in

whole or in part, the commission shall pay the valid portion of the

claim from the suspended amount in the oil and gas regulation and

[~~oil-field~~] cleanup fund not later than 30 days after the date the

court's judgment becomes unappealable. On the date the

commission's decision is not subject to judicial review, the

commission shall release from the suspended amount in the oil and

gas regulation and [~~oil-field~~] cleanup fund the amount of the claim

held to be invalid.

(k) If the aggregate of claims paid and money suspended that

relates to well-site equipment or hydrocarbons from a particular

well equals the total of the actual proceeds and credit realized

from the disposition of that equipment or those hydrocarbons, the

oil and gas regulation and [~~oil-field~~] cleanup fund is not liable

for any subsequently filed claims that relate to the same equipment

or hydrocarbons unless and until the commission releases from the

suspended amount money derived from the disposition of that

equipment or those hydrocarbons. If the commission releases money,

then the commission shall suspend money in the amount of

subsequently filed claims in the order of filing.

SECTION 19.14. Subsection (b), Section 89.121, Natural

Resources Code, is amended to read as follows:

(b) Civil penalties collected for violations of this

chapter or of rules relating to plugging that are adopted under this

code shall be deposited in the general revenue [~~state oil-field~~

~~cleanup~~] fund.

SECTION 19.15. Subsection (c), Section 91.1013, Natural

Resources Code, is amended to read as follows:

the oil and gas regulation and [~~state oil-field~~] cleanup fund.

SECTION 19.16. Section 91.108, Natural Resources Code, is

amended to read as follows:

Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the

refund provisions of Section 91.1091, if applicable, proceeds from

bonds and other financial security required pursuant to this

chapter and benefits under well-specific plugging insurance

policies described by Section 91.104(c) that are paid to the state

as contingent beneficiary of the policies shall be deposited in the

oil and gas regulation and [~~oil-field~~] cleanup fund and,

notwithstanding Sections 81.068 [~~91.112~~] and 91.113, may be used

only for actual well plugging and surface remediation.

SECTION 19.17. Subsection (a), Section 91.109, Natural

Resources Code, is amended to read as follows:

(a) A person applying for or acting under a commission

permit to store, handle, treat, reclaim, or dispose of oil and gas

waste may be required by the commission to maintain a performance

bond or other form of financial security conditioned that the

permittee will operate and close the storage, handling, treatment,

reclamation, or disposal site in accordance with state law,

commission rules, and the permit to operate the site. However, this

section does not authorize the commission to require a bond or other

form of financial security for saltwater disposal pits, emergency

saltwater storage pits (including blow-down pits), collecting

pits, or skimming pits provided that such pits are used in

conjunction with the operation of an individual oil or gas lease.

Subject to the refund provisions of Section 91.1091 [~~of this code~~],

proceeds from any bond or other form of financial security required

by this section shall be placed in the oil and gas regulation and

[~~oil-field~~] cleanup fund. Each bond or other form of financial

security shall be renewed and continued in effect until the

conditions have been met or release is authorized by the

commission.

SECTION 19.18. Subsections (a) and (f), Section 91.113,

Natural Resources Code, are amended to read as follows:

(a) If oil and gas wastes or other substances or materials

regulated by the commission under Section 91.101 are causing or are

likely to cause the pollution of surface or subsurface water, the

commission, through its employees or agents, may use money in the

oil and gas regulation and [~~oil-field~~] cleanup fund to conduct a

site investigation or environmental assessment or control or clean

up the oil and gas wastes or other substances or materials if:

(1) the responsible person has failed or refused to

control or clean up the oil and gas wastes or other substances or

materials after notice and opportunity for hearing;

(2) the responsible person is unknown, cannot be

found, or has no assets with which to control or clean up the oil and

gas wastes or other substances or materials; or

(3) the oil and gas wastes or other substances or

materials are causing the pollution of surface or subsurface water.

(f) If the commission conducts a site investigation or

environmental assessment or controls or cleans up oil and gas

wastes or other substances or materials under this section, the

commission may recover all costs incurred by the commission from

any person who was required by law, rules adopted by the commission,

or a valid order of the commission to control or clean up the oil and

gas wastes or other substances or materials. The commission by

order may require the person to reimburse the commission for those

costs or may request the attorney general to file suit against the

person to recover those costs. At the request of the commission,

the attorney general may file suit to enforce an order issued by the

commission under this subsection. A suit under this subsection may

be filed in any court of competent jurisdiction in Travis County.

Costs recovered under this subsection shall be deposited to the oil

and gas regulation and [~~oil-field~~] cleanup fund.

SECTION 19.19. Subsection (c), Section 91.264, Natural

Resources Code, is amended to read as follows:

deposited to the credit of the general revenue [~~oil-field cleanup~~]

fund [~~account~~].

SECTION 19.20. Subsection (b), Section 91.457, Natural

Resources Code, is amended to read as follows:

(b) If a person ordered to close a saltwater disposal pit

under Subsection (a) [~~of this section~~] fails or refuses to close the

pit in compliance with the commission's order and rules, the

commission may close the pit using money from the oil and gas

regulation and [~~oil-field~~] cleanup fund and may direct the attorney

general to file suits in any courts of competent jurisdiction in

Travis County to recover applicable penalties and the costs

incurred by the commission in closing the saltwater disposal pit.

SECTION 19.21. Subsection (c), Section 91.459, Natural

Resources Code, is amended to read as follows:

general under this subchapter shall be deposited in the oil and gas

regulation and [~~oil-field~~] cleanup fund.

SECTION 19.22. Subsection (e), Section 91.605, Natural

Resources Code, is amended to read as follows:

(e) The fees collected under this section shall be deposited

in the oil and gas regulation and [~~oil-field~~] cleanup fund.

SECTION 19.23. Subsection (e), Section 91.654, Natural

Resources Code, is amended to read as follows:

(e) Fees collected under this section shall be deposited to

the credit of the oil and gas regulation and [~~oil-field~~] cleanup

fund under Section 81.067 [~~91.111~~].

SECTION 19.24. Subsection (b), Section 91.707, Natural

Resources Code, is amended to read as follows:

(b) Fees collected under this section shall be deposited to

the oil and gas regulation and [~~oil-field~~] cleanup fund.

SECTION 19.25. The heading to Section 121.211, Utilities

Code, is amended to read as follows:

Sec. 121.211. PIPELINE SAFETY AND REGULATORY FEES.

SECTION 19.26. Subsections (a) through (e) and (h), Section

121.211, Utilities Code, are amended to read as follows:

(a) The railroad commission by rule may adopt a [an

~~inspection~~] fee to be assessed annually against operators of

natural gas distribution pipelines and their pipeline facilities

and natural gas master metered pipelines and their pipeline

facilities subject to this title [~~chapter~~].

(b) The railroad commission by rule shall establish the

method by which the fee will be calculated and assessed. In

adopting a fee structure, the railroad commission may consider any

factors necessary to provide for the equitable allocation among

operators of the costs of administering the railroad commission's

pipeline safety and regulatory program under this title [~~chapter~~].

rules adopted by the railroad commission under this section may not

exceed the amount estimated by the railroad commission to be

necessary to recover the costs of administering the railroad

commission's pipeline safety and regulatory program under this

title [~~chapter~~], excluding costs that are fully funded by federal

sources.

(d) The commission may assess each operator of a natural gas

distribution system subject to this title [~~chapter~~] an annual

[~~inspection~~] fee not to exceed one dollar for each service line

reported by the system on the Distribution Annual Report, Form RSPA

F7100.1-1, due on March 15 of each year. The fee is due March 15 of

each year.

(e) The railroad commission may assess each operator of a

natural gas master metered system subject to this title [~~chapter~~]

an annual [~~inspection~~] fee not to exceed $100 for each master

metered system. The fee is due June 30 of each year.

(h) A fee collected under this section shall be deposited to

the credit of the general revenue fund to be used for the pipeline

safety and regulatory program.

SECTION 19.27. Section 29.015, Water Code, is amended to

read as follows:

Sec. 29.015. APPLICATION FEE. With each application for

issuance, renewal, or material amendment of a permit, the applicant

shall submit to the railroad commission a nonrefundable fee of

$100. Fees collected under this section shall be deposited in the

oil and gas regulation and [~~oil-field~~] cleanup fund.

SECTION 19.28. The following provisions of the Natural

Resources Code are repealed:

(1) Section 91.111; and

(2) Section 91.112.

SECTION 19.29. On the effective date of this article:

(1) the oil-field cleanup fund is abolished;

(2) any money remaining in the oil-field cleanup fund

is transferred to the oil and gas regulation and cleanup fund;

(3) any claim against the oil-field cleanup fund is

transferred to the oil and gas regulation and cleanup fund; and

(4) any amount required to be deposited to the credit

of the oil-field cleanup fund shall be deposited to the credit of

the oil and gas regulation and cleanup fund.

ARTICLE 20. FISCAL MATTERS RELATING TO SECRETARY OF STATE

SECTION 20.01. Section 405.014, Government Code, is amended

to read as follows:

Sec. 405.014. ACTS OF THE LEGISLATURE. (a) At each

session of the legislature the secretary of state shall obtain the

bills that have become law. Immediately after the closing of each

session of the legislature, the secretary of state shall bind all

enrolled bills and resolutions in volumes on which the date of the

session is placed.

(b) As soon as practicable after the closing of each session

of the legislature, the secretary of state shall publish and

maintain electronically the bills enacted at that session. The

electronic publication must be:

(1) indexed by bill number and assigned chapter number

for each bill; and

(2) made available by an electronic link on the

secretary of state's generally accessible Internet website.

SECTION 20.02. Subchapter B, Chapter 2158, Government Code,

is repealed.

SECTION 20.03. The change in law made by this article does

not apply to a contract for the publication of the laws of this

state entered into before the effective date of this article.

SECTION 20.04. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect on the 91st day after

the last day of the legislative session.

ARTICLE 21. FISCAL MATTERS REGARDING ATTORNEY GENERAL

SECTION 21.01. Section 402.006, Government Code, is amended

by adding Subsection (e) to read as follows:

(e) The attorney general may charge a reasonable fee for the

electronic filing of a document.

SECTION 21.02. The fee prescribed by Section 402.006,

Government Code, as amended by this article, applies only to a

document electronically submitted to the office of the attorney

general on or after the effective date of this article.

SECTION 21.03. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect on the 91st day after

the last day of the legislative session.

ARTICLE 22. TEXAS PRESERVATION TRUST FUND ACCOUNT

SECTION 22.01. Subsections (a), (b), and (f), Section

442.015, Government Code, are amended to read as follows:

(a) Notwithstanding Section [~~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, income earned

[~~earnings~~] on money in the account, and any other money received

under this section. Money in [~~Distributions from~~] 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. Income earned [~~Earnings~~] on

money in the account shall be deposited to the credit of the

account.

(b) The commission may use money in [~~distributions from~~] 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 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 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 this section [~~Subsections (a)-(e)~~].

SECTION 22.02. Subsections (h), (i), (j), (k), and (l),

Section 442.015, Government Code, are repealed.

SECTION 22.03. The comptroller of public accounts and the

Texas Historical Commission shall enter into a memorandum of

understanding to facilitate the conversion of assets of the Texas

preservation trust fund account into cash for deposit into the

state treasury using a method that provides for the lowest amount of

revenue loss to the state.

SECTION 22.04. This article takes effect November 1, 2011.

ARTICLE 23. FISCAL MATTERS CONCERNING INFORMATION TECHNOLOGY

SECTION 23.01. Section 572.054, Government Code, is amended

by adding Subsection (g-1) to read as follows:

(g-1) For purposes of this section, the Department of

Information Resources is a regulatory agency.

SECTION 23.02. Section 2054.005, Government Code, is

amended to read as follows:

Sec. 2054.005. SUNSET PROVISION. (a) The Department of

Information Resources is subject to Chapter 325 (Texas Sunset

Act). Unless continued in existence as provided by that chapter,

the department is abolished and this chapter expires September 1,

2013 [~~2011~~].

(b) The review of the Department of Information Resources by

the Sunset Advisory Commission in preparation for the work of the

83rd Legislature, Regular Session, is not limited to the

appropriateness of recommendations made by the commission to the

82nd Legislature. In the commission's report to the 83rd

Legislature, the commission may include any recommendations it

considers appropriate.

SECTION 23.03. Subchapter C, Chapter 2054, Government Code,

is amended by adding Section 2054.064 to read as follows:

Sec. 2054.064. BOARD APPROVAL OF CONTRACTS. The board by

rule shall establish approval requirements for all contracts,

including a monetary threshold above which board approval is

required before the contract may be executed.

SECTION 23.04. Subsection (b), Section 2054.376,

Government Code, is amended to read as follows:

(b) This subchapter does not apply to:

(1) the Department of Public Safety's use for criminal

justice or homeland security purposes of a federal database or

network;

(2) a Texas equivalent of a database or network

described by Subdivision (1) that is managed by the Department of

Public Safety;

(3) the uniform statewide accounting system, as that

term is used in Subchapter C, Chapter 2101;

(4) the state treasury cash and treasury management

system; [or]

(5) a database or network managed by the comptroller

to:

(A) collect and process multiple types of taxes

imposed by the state; or

(B) manage or administer fiscal, financial,

revenue, and expenditure activities of the state under Chapter 403

and Chapter 404; or

(6) a database or network managed by the Department of

Agriculture.

SECTION 23.05. Section 2054.380, Government Code, is

amended to read as follows:

Sec. 2054.380. FEES. (a) The department shall set and

charge a fee to each state agency that receives a service from a

statewide technology center in an amount sufficient to cover the

direct and indirect cost of providing the service.

(b) Revenue derived from the collection of fees imposed

under Subsection (a) may be appropriated to the department for:

(1) developing statewide information resources

technology policies and planning under this chapter and Chapter

2059; and

(2) providing shared information resources technology

services under this chapter.

SECTION 23.06. Subsections (b) and (d), Section 2157.068,

Government Code, are amended to read as follows:

(b) The department shall negotiate with vendors [to

~~attempt~~] to obtain the best value for the state in the purchase of

commodity items. The department may consider strategic sourcing

and other methodologies to select the vendor offering the best

value on [~~a favorable price for all of state government on licenses~~

~~for~~] commodity items[~~, based on the aggregate volume of purchases~~

~~expected to be made by the state~~]. The terms and conditions of a

license agreement between a vendor and the department under this

section may not be less favorable to the state than the terms of

similar license agreements between the vendor and retail

distributors.

(d) The department may charge a reasonable administrative

fee to a state agency, political subdivision of this state, or

governmental entity of another state that purchases commodity items

through the department in an amount that is sufficient to recover

costs associated with the administration of this section. Revenue

derived from the collection of fees imposed under this subsection

may be appropriated to the department for:

(1) developing statewide information resources

technology policies and planning under Chapters 2054 and 2059; and

(2) providing shared information resources technology

services under Chapter 2054.

SECTION 23.07. Subsections (a) and (d), Section 2170.057,

Government Code, are amended to read as follows:

(a) The department shall develop a system of billings and

charges for services provided in operating and administering the

consolidated telecommunications system that allocates the total

state cost to each entity served by the system based on

proportionate usage. The department shall set and charge a fee to

each entity that receives services provided under this chapter in

an amount sufficient to cover the direct and indirect costs of

providing the service. Revenue derived from the collection of fees

imposed under this subsection may be appropriated to the department

for:

(1) developing statewide information resources

technology policies and planning under Chapters 2054 and 2059; and

(2) providing:

(A) shared information resources technology

services under Chapter 2054; and

(B) network security services under Chapter

2059.

(d) The department shall maintain in the revolving fund

account sufficient amounts to pay the bills of the consolidated

telecommunications system and the centralized capitol complex

telephone system. [~~The department shall certify amounts that~~

~~exceed this amount to the comptroller, and the comptroller shall~~

~~transfer the excess amounts to the credit of the statewide network~~

~~applications account established by Section 2054.011.~~]

ARTICLE 24. CONTINUING LEGAL EDUCATION REQUIREMENTS FOR ATTORNEY

EMPLOYED BY ATTORNEY GENERAL

SECTION 24.01. Section 81.113, Government Code, is amended

by adding Subsection (a-1) to read as follows:

(a-1) The state bar shall credit an attorney licensed in

this state with meeting the minimum continuing legal education

requirements of the state bar for a reporting year if during the

reporting year the attorney is employed full-time as an attorney by

the office of the attorney general. An attorney credited for

continuing legal education under this subsection must meet the

continuing legal education requirements of the state bar in legal

ethics or professional responsibility. This subsection expires

January 1, 2014.

SECTION 24.02. Subchapter A, Chapter 402, Government Code,

is amended by adding Section 402.011 to read as follows:

Sec. 402.011. CONTINUING LEGAL EDUCATION PROGRAMS. The

office of the attorney general shall recognize, prepare, or

administer continuing legal education programs that meet

continuing legal education requirements imposed under Section

81.113(c) for the attorneys employed by the office. This section

expires January 1, 2014.

SECTION 24.03. Section 81.113, Government Code, as amended

by this article, applies only to the requirements for a continuing

legal education compliance year that ends on or after October 1,

2011. The requirements for continuing legal education for a

compliance year that ends before October 1, 2011, are covered by the

law and rules in effect when the compliance year ended, and that law

and those rules are continued in effect for that purpose.

ARTICLE 25. REGISTRATION FEE AND REGISTRATION RENEWAL FEE FOR

LOBBYISTS

SECTION 25.01. Subsection (c), Section 305.005, Government

Code, is amended to read as follows:

(1) $150 [~~$100~~] for a registrant employed by an

organization exempt from federal income tax under Section

501(c)(3), [or] 501(c)(4), or 501(c)(6), Internal Revenue Code of

1986;

(2) $75 [~~$50~~] for any person required to register

solely because the person is required to register under Section

305.0041 [~~of this chapter~~]; or

(3) $750 [~~$500~~] for any other registrant.

ARTICLE 26. PUBLIC ASSISTANCE REPORTING INFORMATION SYSTEM

SECTION 26.01. Subsection (c), Section 434.017, Government

Code, is amended to read as follows:

Veterans Commission. Money appropriated under this subsection

shall be used to:

(1) make grants to address veterans' needs; [~~and~~]

(2) administer the fund; and

(3) analyze and investigate data received from the

federal Public Assistance Reporting Information System (PARIS)

that is administered by the Administration for Children and

Families of the United States Department of Health and Human

Services.

ARTICLE 27. REGIONAL POISON CONTROL CENTER MANAGEMENT CONTROLS

AND EFFICIENCY

SECTION 27.01. Section 777.001, Health and Safety Code, is

amended by amending Subsection (c) and adding Subsection (d) to

read as follows:

standardize the operations of and implement management controls to

improve the efficiency of regional poison control centers [~~vote to~~

~~designate a seventh regional or satellite poison control center in~~

~~Harris County.~~ ~~That poison control center is subject to all~~

~~provisions of this chapter and other law relating to regional~~

~~poison control centers~~].

(d) If the Commission on State Emergency Communications

implements management controls under Subsection (c), the

commission shall submit to the governor and the Legislative Budget

Board a plan for implementing the controls not later than October

31, 2011. This subsection expires January 1, 2013.

ARTICLE 28. AUTHORIZED USES FOR CERTAIN DEDICATED PERMANENT FUNDS

SECTION 28.01. Section 403.105, Government Code, is amended

by amending Subsection (b) and adding Subsection (b-1) to read as

follows:

(b) Except as provided by Subsections (b-1), (c), (e), (f),

and (h), money in the fund may not be appropriated for any purpose.

(b-1) Notwithstanding the limitations and requirements of

Section 403.1068, the legislature may appropriate money in the

fund, including the corpus and available earnings of the fund

determined under Section 403.1068, to pay the principal of or

interest on a bond issued for the purposes of Section 67, Article

III, Texas Constitution. This subsection does not authorize the

appropriation under this subsection of money subject to a

limitation or requirement as described by Subsection (e) that is

not consistent with the use of the money in accordance with this

subsection.

SECTION 28.02. Section 403.1055, Government Code, is

amended by amending Subsection (b) and adding Subsection (b-1) to

read as follows:

(b) Except as provided by Subsections (b-1), (c), (e), (f),

and (h), money in the fund may not be appropriated for any purpose.

(b-1) Notwithstanding the limitations and requirements of

Section 403.1068, the legislature may appropriate money in the

fund, including the corpus and available earnings of the fund

determined under Section 403.1068, to pay the principal of or

interest on a bond issued for the purposes of Section 67, Article

III, Texas Constitution. This subsection does not authorize the

appropriation under this subsection of money subject to a

limitation or requirement as described by Subsection (e) that is

not consistent with the use of the money in accordance with this

subsection.

SECTION 28.03. Section 403.106, Government Code, is amended

by amending Subsection (b) and adding Subsection (b-1) to read as

follows:

(b) Except as provided by Subsections (b-1), (c), (e), (f),

and (h), money in the fund may not be appropriated for any purpose.

(b-1) Notwithstanding the limitations and requirements of

Section 403.1068, the legislature may appropriate money in the

fund, including the corpus and available earnings of the fund

determined under Section 403.1068, to pay the principal of or

interest on a bond issued for the purposes of Section 67, Article

III, Texas Constitution. This subsection does not authorize the

appropriation under this subsection of money subject to a

limitation or requirement as described by Subsection (e) that is

not consistent with the use of the money in accordance with this

subsection.

SECTION 28.04. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect on the 91st day after

the last day of the legislative session.

ARTICLE 29. FISCAL MATTERS CONCERNING SURPLUS AND SALVAGE

PROPERTY

SECTION 29.01. Subchapter C, Chapter 2175, Government Code,

is repealed.

SECTION 29.02. Subsection (a), Section 32.102, Education

Code, is amended to read as follows:

(a) As provided by this subchapter, a school district or

open-enrollment charter school may transfer to a student enrolled

in the district or school:

(1) any data processing equipment donated to the

district or school, including equipment donated by:

(A) a private donor; or

(B) a state eleemosynary institution or a state

agency under Section 2175.905 [~~2175.128~~], Government Code;

(2) any equipment purchased by the district or school,

to the extent consistent with Section 32.105; and

(3) any surplus or salvage equipment owned by the

district or school.

SECTION 29.03. Section 2175.002, Government Code, is

amended to read as follows:

Sec. 2175.002. ADMINISTRATION OF CHAPTER. The commission

is responsible for the disposal of surplus and salvage property of

the state. The commission's surplus and salvage property division

shall administer this chapter.

SECTION 29.04. Section 2175.065, Government Code, is

amended by amending Subsection (a) and adding Subsections (c) and

(d) to read as follows:

(a) The commission may authorize a state agency to dispose

of surplus or salvage property if the agency demonstrates to the

commission its ability to dispose of the property under this

chapter [~~Subchapters C and E~~] in a manner that results in cost

savings to the state, under commission rules adopted under this

chapter.

disposing state agency shall report the transaction to the

commission. The report must include a description of the property

disposed of, the reasons for disposal, the price paid for the

property disposed of, and the recipient of the property disposed

of.

(d) If the commission determines that a violation of a state

law or rule has occurred based on the report under Subsection (c),

the commission shall report the violation to the Legislative Budget

Board.

SECTION 29.05. The heading to Subchapter D, Chapter 2175,

Government Code, is amended to read as follows:

SUBCHAPTER D. DISPOSITION OF SURPLUS OR SALVAGE PROPERTY [BY

~~COMMISSION~~]

SECTION 29.06. Section 2175.181, Government Code, is

amended to read as follows:

Sec. 2175.181. APPLICABILITY. [~~(a)~~ ~~This subchapter~~

~~applies only to surplus and salvage property located in:~~

[~~(1) Travis County;~~

[~~(2)~~ ~~a county in which federal surplus property is~~

~~warehoused by the commission under Subchapter G; or~~

[~~(3)~~ ~~a county for which the commission determines that~~

~~it is cost-effective to follow the procedures created under this~~

~~subchapter and informs affected state agencies of that~~

~~determination.~~

[~~(b)~~] This subchapter applies [~~does not apply~~] to a state

agency delegated the authority to dispose of surplus or salvage

property under Section 2175.065.

SECTION 29.07. Section 2175.182, Government Code, is

amended to read as follows:

Sec. 2175.182. STATE AGENCY TRANSFER OF PROPERTY [TO

~~COMMISSION~~]. (a) A state agency that determines it has surplus or

salvage property shall inform the commission of that fact for the

purpose of determining the method of disposal of the property [~~The~~

~~commission is responsible for the disposal of surplus or salvage~~

~~property under this subchapter~~]. The commission may take physical

possession of the property.

(b) Based on the condition of the property, the commission,

in conjunction with the state agency, shall determine whether the

property is:

(1) surplus property that should be offered for

transfer under Section 2175.184 or sold to the public; or

(2) salvage property.

[~~The~~] commission shall direct the state agency to inform the

comptroller's office of the property's kind, number, location,

condition, original cost or value, and date of acquisition.

SECTION 29.08. Section 2175.1825, Government Code, is

amended to read as follows:

Sec. 2175.1825. ADVERTISING ON COMPTROLLER WEBSITE.

(a) Not later than the second day after the date the comptroller

receives notice from a state agency [~~the commission~~] under Section

2175.182(c), the comptroller shall advertise the property's kind,

number, location, and condition on the comptroller's website.

(b) The comptroller shall provide the commission access to

all records in the state property accounting system related to

surplus and salvage property.

SECTION 29.09. Section 2175.183, Government Code, is

amended to read as follows:

Sec. 2175.183. COMMISSION NOTICE TO OTHER ENTITIES. The

[~~On taking responsibility for surplus property under this~~

~~subchapter, the~~] commission shall inform other state agencies,

political subdivisions, and assistance organizations of the

comptroller's website that lists surplus property that is available

for sale.

SECTION 29.10. Section 2175.184, Government Code, is

amended to read as follows:

Sec. 2175.184. DIRECT TRANSFER. During the 10 business

days after the date the property is posted on the comptroller's

website, a state agency, political subdivision, or assistance

organization shall [~~may~~] coordinate with the commission for a

transfer of the property at a price established by the commission

[~~in cooperation with the transferring agency~~]. A transfer to a

state agency has priority over any other transfer during this

period.

SECTION 29.11. Subsection (a), Section 2175.186,

Government Code, is amended to read as follows:

(a) If a disposition of a state agency's surplus property is

not made under Section 2175.184, the commission shall sell the

property by competitive bid, auction, or direct sale to the public,

including a sale using an Internet auction site. The commission may

contract with a private vendor to assist with the sale of the

property.

SECTION 29.12. Section 2175.189, Government Code, is

amended to read as follows:

Sec. 2175.189. ADVERTISEMENT OF SALE. If the value of an

item or a lot of property to be sold is estimated to be more than

$25,000 [~~$5,000~~], the commission shall advertise the sale at least

once in at least one newspaper of general circulation in the

vicinity in which the property is located.

SECTION 29.13. Subsection (a), Section 2175.191,

Government Code, is amended to read as follows:

(a) Proceeds from the sale of surplus or salvage property,

less the cost of advertising the sale, the cost of selling the

surplus or salvage property, including the cost of auctioneer

services or assistance from a private vendor, and the amount of the

fee collected under Section 2175.188, shall be deposited to the

credit of the general revenue fund of the state treasury.

SECTION 29.14. Section 2175.302, Government Code, is

amended to read as follows:

Sec. 2175.302. EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS.

Except as provided by Section 2175.905(b) [~~2175.128(b)~~], this

chapter does not apply to the disposition of surplus or salvage

property by a state eleemosynary institution.

SECTION 29.15. Section 2175.904, Government Code, is

amended by amending Subsections (a) and (c) and adding Subsection

(d) to read as follows:

(a) The commission shall establish a program for the sale of

gambling equipment received from a municipality, from a

commissioners court under Section 263.152(a)(5), Local Government

Code, or from a state agency under this chapter.

municipality or commissioners court, less the costs of the sale,

including costs of advertising, storage, shipping, and auctioneer

or broker services, and the amount of the fee collected under

Section 2175.188 [~~2175.131~~], shall be divided according to an

agreement between the commission and the municipality or

commissioners court that provided the equipment for sale. The

agreement must provide that:

(1) not less than 50 percent of the net proceeds be

remitted to the commissioners court; and

(2) the remainder of the net proceeds retained by the

commission be deposited to the credit of the general revenue fund.

(d) Proceeds from the sale of gambling equipment from a

state agency, less the costs of the sale, including costs of

advertising, storage, shipping, and auctioneer or broker services,

and the amount of the fee collected under Section 2175.188, shall be

deposited to the credit of the general revenue fund of the state

treasury.

SECTION 29.16. Subchapter Z, Chapter 2175, Government Code,

is amended by adding Sections 2175.905 and 2175.906 to read as

follows:

Sec. 2175.905. DISPOSITION OF DATA PROCESSING EQUIPMENT.

(a) If a disposition of a state agency's surplus or salvage data

processing equipment is not made under Section 2175.184, the state

agency shall transfer the equipment to:

(1) a school district or open-enrollment charter

school in this state under Subchapter C, Chapter 32, Education

Code;

(2) an assistance organization specified by the school

district; or

(3) the Texas Department of Criminal Justice.

(b) If a disposition of the surplus or salvage data

processing equipment of a state eleemosynary institution or an

institution or agency of higher education is not made under other

law, the institution or agency shall transfer the equipment to:

(1) a school district or open-enrollment charter

school in this state under Subchapter C, Chapter 32, Education

Code;

(2) an assistance organization specified by the school

district; or

(3) the Texas Department of Criminal Justice.

agency of higher education or other state agency may not collect a

fee or other reimbursement from the district, the school, the

assistance organization, or the Texas Department of Criminal

Justice for the surplus or salvage data processing equipment

transferred under this section.

Sec. 2175.906. ABOLISHED AGENCIES. On abolition of a state

agency, in accordance with Chapter 325, the commission shall take

custody of all of the agency's property or other assets as surplus

property unless other law or the legislature designates another

appropriate governmental entity to take custody of the property or

assets.

ARTICLE 30. SALES AND USE TAX COLLECTION AND ALLOCATION

SECTION 30.01. Subsection (b), Section 151.008, Tax Code,

is amended to read as follows:

(b) "Seller" and "retailer" include:

(1) a person in the business of making sales at auction

of tangible personal property owned by the person or by another;

(2) a person who makes more than two sales of taxable

items during a 12-month period, including sales made in the

capacity of an assignee for the benefit of creditors or receiver or

trustee in bankruptcy;

(3) a person regarded by the comptroller as a seller or

retailer under Section 151.024 [~~of this code~~];

(4) a hotel, motel, or owner or lessor of an office or

residential building or development that contracts and pays for

telecommunications services for resale to guests or tenants; [~~and~~]

(5) a person who engages in regular or systematic

solicitation of sales of taxable items in this state by the

distribution of catalogs, periodicals, advertising flyers, or

other advertising, by means of print, radio, or television media,

or by mail, telegraphy, telephone, computer data base, cable,

optic, microwave, or other communication system for the purpose of

effecting sales of taxable items; and

(6) a person who, under an agreement with another

person, is:

(A) entrusted with possession of tangible

personal property with respect to which the other person has title

or another ownership interest; and

(B) authorized to sell, lease, or rent the

property without additional action by the person having title to or

another ownership interest in the property.

SECTION 30.02. Section 151.107, Tax Code, is amended by

amending Subsection (a) and adding Subsection (d) to read as

follows:

(a) For the purpose of this subchapter and in relation to

the use tax, a retailer is engaged in business in this state if the

retailer:

(1) maintains, occupies, or uses in this state

permanently, temporarily, directly, or indirectly or through a

subsidiary or agent by whatever name, an office, [~~place of~~]

distribution center, sales or sample room or place, warehouse,

storage place, or any other physical location where [~~place of~~]

business is conducted;

(2) has a representative, agent, salesman, canvasser,

or solicitor operating in this state under the authority of the

retailer or its subsidiary for the purpose of selling or delivering

or the taking of orders for a taxable item;

(3) derives receipts [~~rentals~~] from the sale, [a]

lease, or rental of tangible personal property situated in this

state;

(4) engages in regular or systematic solicitation of

sales of taxable items in this state by the distribution of

catalogs, periodicals, advertising flyers, or other advertising,

by means of print, radio, or television media, or by mail,

telegraphy, telephone, computer data base, cable, optic,

microwave, or other communication system for the purpose of

effecting sales of taxable items;

(5) solicits orders for taxable items by mail or

through other media and under federal law is subject to or permitted

to be made subject to the jurisdiction of this state for purposes of

collecting the taxes imposed by this chapter;

(6) has a franchisee or licensee operating under its

trade name if the franchisee or licensee is required to collect the

tax under this section; [or]

(7) holds a substantial ownership interest in, or is

owned in whole or substantial part by, a person who maintains a

location in this state from which business is conducted and if:

(A) the retailer sells the same or a

substantially similar line of products as the person with the

location in this state and sells those products under a business

name that is the same as or substantially similar to the business

name of the person with the location in this state; or

(B) the facilities or employees of the person

with the location in this state are used to:

(i) advertise, promote, or facilitate sales

by the retailer to consumers; or

(ii) perform any other activity on behalf

of the retailer that is intended to establish or maintain a

marketplace for the retailer in this state, including receiving or

exchanging returned merchandise;

(8) holds a substantial ownership interest in, or is

owned in whole or substantial part by, a person that:

(A) maintains a distribution center, warehouse,

or similar location in this state; and

(B) delivers property sold by the retailer to

consumers; or

(9) otherwise does business in this state.

(d) In this section:

(1) "Ownership" includes:

(A) direct ownership;

(B) common ownership; and

subsidiary, or affiliate.

(2) "Substantial" means, with respect to an ownership

interest, an interest in an entity that is:

(A) if the entity is a corporation, at least 50

percent, directly or indirectly, of:

(i) the total combined voting power of all

classes of stock of the corporation; or

(ii) the beneficial ownership interest in

the voting stock of the corporation;

(B) if the entity is a trust, at least 50 percent,

directly or indirectly, of the current beneficial interest in the

trust corpus or income;

at least 50 percent, directly or indirectly, of:

(i) the total membership interest of the

limited liability company; or

(ii) the beneficial ownership interest in

the membership interest of the limited liability company; or

(D) for any entity, including a partnership or

association, at least 50 percent, directly or indirectly, of the

capital or profits interest in the entity.

SECTION 30.03. Subchapter M, Chapter 151, Tax Code, is

amended by adding Section 151.802 to read as follows:

Sec. 151.802. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX

RELIEF FUND. (a) This section applies only:

(1) during the state fiscal years beginning September

1 of 2012, 2013, 2014, 2015, and 2016; and

(2) with respect to unused franchise tax credits

described by Sections 18(e) and (f), Chapter 1 (H.B. 3), Acts of the

79th Legislature, 3rd Called Session, 2006.

(b) Notwithstanding Section 151.801, the comptroller shall

deposit to the credit of the property tax relief fund under Section

403.109, Government Code, an amount of the proceeds from the

collection of the taxes imposed by this chapter equal to the amount

of revenue the state does not receive from the tax imposed under

Chapter 171 because taxable entities, as defined by that chapter,

that are corporations are entitled to claim unused franchise tax

credits after December 31, 2012, and during that state fiscal year.

SECTION 30.04. The change in law made by this article does

not affect tax liability accruing before the effective date of this

article. That liability continues in effect as if this article had

not been enacted, and the former law is continued in effect for the

collection of taxes due and for civil and criminal enforcement of

the liability for those taxes.

SECTION 30.05. This article takes effect January 1, 2012.

ARTICLE 31. CARRYFORWARD OF CERTAIN FRANCHISE TAX CREDITS

SECTION 31.01. Subsections (e) and (f), Section 18, Chapter

1 (H.B. 3), Acts of the 79th Legislature, 3rd Called Session, 2006,

are amended to read as follows:

(e) A corporation that has any unused credits established

before the effective date of this Act under Subchapter P, Chapter

171, Tax Code, may claim those unused credits on or with the tax

report for the period in which the credit was established. However,

if the corporation was allowed to carry forward unused credits

under that subchapter, the corporation may continue to apply those

credits on or with each consecutive report until the earlier of the

date the credit would have expired under the terms of Subchapter P,

Chapter 171, Tax Code, had it continued in existence, or December

31, 2016 [~~2012~~], and the former law under which the corporation

established the credits is continued in effect for purposes of

determining the amount of the credits the corporation may claim and

the manner in which the corporation may claim the credits.

(f) A corporation that has any unused credits established

before the effective date of this Act under Subchapter Q, Chapter

171, Tax Code, may claim those unused credits on or with the tax

report for the period in which the credit was established. However,

if the corporation was allowed to carry forward unused credits

under that subchapter, the corporation may continue to apply those

credits on or with each consecutive report until the earlier of the

date the credit would have expired under the terms of Subchapter Q,

Chapter 171, Tax Code, had it continued in existence, or December

31, 2016 [~~2012~~], and the former law under which the corporation

established the credits is continued in effect for purposes of

determining the amount of the credits the corporation may claim and

the manner in which the corporation may claim the credits.

ARTICLE 32. STATE PURCHASING

SECTION 32.01. Section 2155.082, Government Code, is

amended to read as follows:

Sec. 2155.082. PROVIDING CERTAIN PURCHASING SERVICES ON

FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT FUNDING. (a) The

comptroller [~~commission~~] may provide open market purchasing

services on a fee-for-service basis for state agency purchases that

are delegated to an agency under Section 2155.131, 2155.132,

[~~2155.133,~~] or 2157.121 or that are exempted from the purchasing

authority of the comptroller [~~commission~~]. The comptroller

[~~commission~~] shall set the fees in an amount that recovers the

comptroller's [~~commission's~~] costs in providing the services.

(b) The comptroller [~~commission~~] shall publish a schedule

of [~~its~~] fees for services that are subject to this section. The

schedule must include the comptroller's [~~commission's~~] fees for:

(1) reviewing bid and contract documents for clarity,

completeness, and compliance with laws and rules;

(2) developing and transmitting invitations to bid;

(3) receiving and tabulating bids;

(4) evaluating and determining which bidder offers the

best value to the state;

(5) creating and transmitting purchase orders; and

(6) participating in agencies' request for proposal

processes.

is to be made agrees, the comptroller may engage a consultant to

assist with a particular procurement on behalf of a state agency and

pay the consultant from the cost savings realized by the state

agency.

ARTICLE 33. PERIOD FOR SALES AND USE TAX HOLIDAY

SECTION 33.01. Subsection (a), Section 151.326, Tax Code,

is amended to read as follows:

(a) The sale of an article of clothing or footwear designed

to be worn on or about the human body is exempted from the taxes

imposed by this chapter if:

(1) the sales price of the article is less than $100;

and

(2) the sale takes place during a period beginning at

12:01 a.m. on the [~~third~~] Friday before the eighth day preceding the

earliest date on which any school district, other than a district

operating a year-round system, may begin instruction for the school

year as prescribed by Section 25.0811(a), Education Code, [in

~~August~~] and ending at 12 midnight on the following Sunday.

SECTION 33.02. Subsection (a), Section 151.326, Tax Code,

as amended by this article, does not affect tax liability accruing

before the effective date of this article. That liability

continues in effect as if this article had not been enacted, and the

former law is continued in effect for the collection of taxes due

and for civil and criminal enforcement of the liability for those

taxes.

ARTICLE 34. LEGISLATIVE BUDGET BOARD MEETINGS

SECTION 34.01. Section 322.003, Government Code, is amended

by adding Subsection (f) to read as follows:

(f) The board shall hold a public hearing each state fiscal

year to receive a report from the comptroller and receive invited

testimony regarding the financial condition of this state. The

report from the comptroller shall include, to the extent

practicable:

(1) information on each revenue source included in

determining the estimate of anticipated revenue for purposes of the

most recent statement required by Section 49a, Article III, Texas

Constitution, and the total net revenue actually collected from

that source for the state fiscal year as of the end of the most

recent state fiscal quarter;

(2) a comparison for the period described by

Subdivision (1) of the total net revenue collected from each

revenue source required to be specified under that subdivision with

the anticipated revenue from that source that was included for

purposes of determining the estimate of anticipated revenue in the

statement required by Section 49a, Article III, Texas Constitution;

(3) information on state revenue sources resulting

from a law taking effect after the comptroller submitted the most

recent statement required by Section 49a, Article III, Texas

Constitution, and the estimated total net revenue collected from

that source for the state fiscal year as of the end of the most

recent state fiscal quarter;

(4) a summary of the indicators of state economic

trends experienced since the most recent statement required by

Section 49a, Article III, Texas Constitution; and

(5) a summary of anticipated state economic trends and

the anticipated effect of the trends on state revenue collections.

SECTION 34.02. Chapter 322, Government Code, is amended by

adding Section 322.0081 to read as follows:

Sec. 322.0081. BUDGET DOCUMENTS ONLINE. (a) The board

shall post on the board's Internet website documents prepared by

the board that are provided to a committee, subcommittee, or

conference committee of either house of the legislature in

connection with an appropriations bill.

(b) The board shall post a document to which this section

applies as soon as practicable after the document is provided to a

committee, subcommittee, or conference committee.

format that allows the public to search, extract, organize, and

analyze the information in the document.

(d) The requirement under Subsection (a) does not supersede

any exceptions provided under Chapter 552.

(e) The board shall promulgate rules to implement the

provisions of this section.

SECTION 34.03. Chapter 322, Government Code, is amended by

adding Section 322.022 to read as follows:

Sec. 322.022. PUBLIC HEARING ON INTERIM BUDGET REDUCTION

REQUEST. (a) In this section:

(1) "Interim budget reduction request" means a request

communicated in any manner for a state agency to make adjustments to

the strategies, methods of finance, performance measures, or riders

applicable to the agency through the state budget in effect on the

date the request is communicated that, if implemented, would reduce

the agency's total expenditures for the current state fiscal

biennium to an amount less than the total amount that otherwise

would be permissible based on the appropriations made to the agency

in the budget.

(2) "State agency" means an office, department, board,

commission, institution, or other entity to which a legislative

appropriation is made.

(b) A state agency shall provide to the board a detailed

report of any expenditure reduction plan that:

(1) the agency develops in response to an interim

budget reduction request made by the governor, the lieutenant

governor, or a member of the legislature, or any combination of

those persons; and

(2) if implemented, would reduce the agency's total

expenditures for the current state fiscal biennium to an amount

less than the total amount that otherwise would be permissible

based on the appropriations made to the agency in the state budget

for the biennium.

testimony on an expenditure reduction plan a state agency reports

to the board as required by Subsection (b) as soon as practicable

after receiving the report. The agency may not implement any

element of the plan until the conclusion of the hearing.

(d) This section does not apply to an expenditure reduction

a state agency desires to make that does not directly or indirectly

result from an interim budget reduction request made by the

governor, the lieutenant governor, or a member of the legislature,

or any combination of those persons.

SECTION 34.04. Subchapter B, Chapter 403, Government Code,

is amended by adding Section 403.0145 to read as follows:

Sec. 403.0145. PUBLICATION OF FEES SCHEDULE. As soon as

practicable after the end of each state fiscal year, the

comptroller shall publish online a schedule of all revenue to the

state from fees authorized by statute. For each fee, the schedule

must specify:

(1) the statutory authority for the fee;

(2) if the fee has been increased during the most

recent legislative session, the amount of the increase;

(3) into which fund the fee revenue will be deposited;

and

(4) the amount of the fee revenue that will be

considered available for general governmental purposes and

accordingly considered available for the purpose of certification

under Section 403.121.

SECTION 34.05. Section 404.124, Government Code, is amended

by amending Subsections (a) and (b) and adding Subsection (b-1) to

read as follows:

(a) Before issuing notes the comptroller shall submit to the

committee a general revenue cash flow shortfall forecast, based on

the comptroller's most recent anticipated revenue estimate. The

forecast must contain a detailed report of estimated revenues and

expenditures for each month and each major revenue and expenditure

category and must demonstrate the maximum general revenue cash flow

shortfall that may be predicted. The committee shall hold a public

hearing to receive invited testimony on the forecast, including

testimony on this state's overall economic condition, as soon as

practicable after receiving the forecast.

(b) Based on the forecast and testimony provided at the

hearing required by Subsection (a), the committee may approve the

issuance of notes, subject to Subsections (b-1) and (c), and the

maximum outstanding balance of notes in any fiscal year. The

outstanding balance may not exceed the maximum temporary cash

shortfall forecast by the comptroller for any period in the fiscal

year. The comptroller may not issue notes in excess of the amount

approved.

(b-1) The committee's approval of the issuance of notes

granted under Subsection (b) expires on the 91st day after the date

the hearing conducted under Subsection (a) concludes. The

comptroller may not issue notes on or after the 91st day unless the

comptroller submits another general revenue cash flow shortfall

forecast to the committee and the committee subsequently grants

approval for the issuance of the notes in accordance with the

procedure required by Subsections (a) and (b). Each subsequent

approval expires on the 61st day after the date the hearing on which

the approval was based concludes.

SECTION 34.06. It is the intent of the legislature that the

Legislative Budget Board place information on its Internet website

that provides additional program detail for items of appropriation

in the General Appropriations Act. The Legislative Budget Board

shall include as additional program detail the specific programs

funded, the source of that funding, and the related statutory

authorization.

ARTICLE 35. ECONOMIC AND WORKFORCE DEVELOPMENT PROGRAMS

SECTION 35.01. Section 481.078, Government Code, is amended

by adding Subsection (m) to read as follows:

(m) Notwithstanding Subsections (e) and (e-1), during the

state fiscal biennium that begins on September 1, 2011, the

governor may transfer appropriated money from the fund to the Texas

Workforce Commission to fund the Texas Back to Work Program

established under Chapter 314, Labor Code. This subsection expires

September 1, 2013.

SECTION 35.02. Subtitle B, Title 4, Labor Code, is amended

by adding Chapter 314 to read as follows:

CHAPTER 314. TEXAS BACK TO WORK PROGRAM

Sec. 314.001. DEFINITION. In this chapter, "qualified

applicant" means a person who made less than $40 per hour at the

person's last employment before becoming unemployed.

Sec. 314.002. INITIATIVE ESTABLISHED. (a) The Texas Back

to Work Program is established within the commission.

(b) The purpose of the program is to establish

public-private partnerships with employers to transition residents

of this state from receiving unemployment compensation to becoming

employed as members of the workforce.

receive a wage subsidy for hiring one or more qualified applicants

who are unemployed at the time of hire.

(d) The commission, for the purposes of this section, may use:

(1) money appropriated to the commission; and

(2) money that is transferred to the commission from

trusteed programs within the office of the governor, including:

(A) appropriated money from the Texas Enterprise

Fund;

(B) available federal funds; and

authorized funding sources.

Sec. 314.003. RULES. The commission may adopt rules as

necessary to implement this chapter.

ARTICLE 36. ELIGIBILITY OF SURVIVING SPOUSE OF DISABLED VETERAN

TO PAY AD VALOREM TAXES ON RESIDENCE HOMESTEAD IN INSTALLMENTS

SECTION 36.01. Section 31.031, Tax Code, is amended by

amending Subsection (a) and adding Subsection (a-1) to read as

follows:

(a) This section applies only to:

(1) [~~If before the delinquency date~~] an individual who

is:

(A) disabled or at least 65 years of age; and

(B) [is] qualified for an exemption under Section

11.13(c); or

(2) an individual who is:

(A) the unmarried surviving spouse of a disabled

veteran; and

(B) qualified for an exemption under Section

11.22.

(a-1) If before the delinquency date an individual to whom

this section applies pays at least one-fourth of a taxing unit's

taxes imposed on property that the person owns and occupies as a

residence homestead, accompanied by notice to the taxing unit that

the person will pay the remaining taxes in installments, the person

may pay the remaining taxes without penalty or interest in three

equal installments. The first installment must be paid before

April 1, the second installment before June 1, and the third

installment before August 1.

SECTION 36.02. This article applies only to an ad valorem

tax year that begins on or after the effective date of this article.

SECTION 36.03. This article takes effect January 1, 2012.

ARTICLE 37. EXTENSION OF FRANCHISE TAX EXEMPTION

SECTION 37.01. Subsection (c), Section 1, Chapter 286 (H.B.

4765), Acts of the 81st Legislature, Regular Session, 2009, is

amended to read as follows:

expires December 31, 2013 [~~2011~~].

SECTION 37.02. Subsection (b), Section 2, Chapter 286 (H.B.

4765), Acts of the 81st Legislature, Regular Session, 2009, is

amended to read as follows:

(b) This section takes effect January 1, 2014 [~~2012, if H.B.~~

~~No. 2154, Acts of the 81st Legislature, Regular Session, 2009,~~

~~amends Section 155.0211, Tax Code, in a manner that results in an~~

~~increase in the revenue from the tax under that section during the~~

~~state fiscal biennium beginning September 1, 2009, that is~~

~~attributable to that change, and that Act is enacted and becomes~~

~~law.~~ ~~If H.B. No. 2154, Acts of the 81st Legislature, Regular~~

~~Session, 2009, does not amend Section 155.0211, Tax Code, in that~~

~~manner or is not enacted or does not become law, this section takes~~

~~effect January 1, 2010~~].

SECTION 37.03. Subsection (b), Section 3, Chapter 286 (H.B.