82(R) HR 2723 - Enrolled version



	H.R. No. 2723

R E S O L U T I O N

BE IT RESOLVED by the House of Representatives of the State of

Texas, 82nd Legislature, Regular Session, 2011, That House Rule 13,

Section 9(a), be suspended in part as provided by House Rule 13,

Section 9(f), to enable the conference committee appointed to

resolve the differences on Senate Bill 1811, relating to certain

state fiscal matters; providing penalties, to consider and take

action on the following matters:

(1) House Rule 13, Section 9(a)(4), is suspended to permit

the committee to add text not included in either the house or senate

version of the bill, in SECTION 43.01 of the bill, in amended

Section 2155.082, Government Code, to read as follows:

SECTION 43.01. 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.

EXPLANATION: This change is necessary to allow a state

agency to have the authority to agree to the comptroller engaging a

consultant.

(2) House Rule 13, Sections 9(3) and 9(4) are suspended to

permit the committee to add text on a matter not in disagreement and

text on a matter not included in either version of the bill by

adding provisions amending Chapter 490, Government Code, and

Chapters 203, 204, and 302, Labor Code so that Article 57 reads as

follows:

ARTICLE 57. ENTERPRISE AND EMERGING TECHNOLOGY FUNDS

SECTION 57.01. Section 481.078, Government Code, is amended

by amending Subsections (e) and (j) and adding Subsections (f-1),

(f-2), and (h-1) to read as follows:

(e) The administration of the fund is considered to be a

trusteed program within the office of the governor. The governor

may negotiate on behalf of the state regarding awarding, by grant,

money appropriated from the fund. The governor may award money

appropriated from the fund only with the [~~express written~~] prior

approval of the lieutenant governor and speaker of the house of

representatives. For purposes of this subsection, an award of

money appropriated from the fund is considered disapproved by the

lieutenant governor or speaker of the house of representatives if

that officer does not approve the proposal to award the grant before

the 91st day after the date of receipt of the proposal from the

governor. The lieutenant governor or the speaker of the house of

representatives may extend the review deadline applicable to that

officer for an additional 14 days by submitting a written notice to

that effect to the governor before the expiration of the initial

review period.

(f-1) A grant agreement must contain a provision:

(1) requiring the creation of a minimum number of jobs

in this state; and

(2) specifying the date by which the recipient intends

to create those jobs.

(f-2) A grant agreement must contain a provision providing

that if the recipient does not meet job creation performance

targets as of the dates specified in the agreement, the recipient

shall repay the grant in accordance with Subsection (j).

(h-1) At least 14 days before the date the governor intends

to amend a grant agreement, the governor shall notify and provide a

copy of the proposed amendment to the speaker of the house of

representatives, the lieutenant governor, and the presiding

officers of the standing committees of both houses of the

legislature with primary jurisdiction over economic development.

(j) Repayment of a grant under Subsection (f)(1)(A) shall

[~~may~~] be prorated to reflect a partial attainment of job creation

performance targets, and may be prorated for a partial attainment

of other performance targets.

SECTION 57.02. Subsections (a) and (b), Section 490.005,

Government Code, are amended to read as follows:

(a) Not later than January 31 [1] of each year, the governor

shall submit to the lieutenant governor, the speaker of the house of

representatives, and the standing committee of each house of the

legislature with primary jurisdiction over economic development

matters and post on the office of the governor's Internet website a

report that includes the following information regarding awards

made under the fund during each [~~for the~~] preceding [~~three~~] state

fiscal year [~~years~~]:

(1) the total number and amount of awards made;

(2) the number and amount of awards made under

Subchapters D, E, and F;

(3) the aggregate total of private sector investment,

federal government funding, and contributions from other sources

obtained in connection with awards made under each of the

subchapters listed in Subdivision (2);

(4) the name of each award recipient and the amount of

the award made to the recipient; and

(5) a brief description of the equity position that

the governor, on behalf of the state, may take in companies

receiving awards and the names of the companies in which the state

has taken an equity position.

(b) The annual report must also contain:

(1) the total number of jobs actually created by each

project receiving funding under this chapter;

(2) an analysis of the number of jobs actually created

by each project receiving funding under this chapter; and

(3) a brief description regarding:

(A) the methodology used to determine the

information provided under Subdivisions (1) and (2), which may be

developed in consultation with the comptroller's office;

(B) [~~(1)~~] the intended outcomes of projects

funded under Subchapter D during each [~~the~~] preceding [~~two~~] state

fiscal year [~~years~~]; and

funded under Subchapter D during each preceding state fiscal year

[~~the fund's existence~~], including any financial impact on the state

resulting from a liquidity event involving a company whose project

was funded under that subchapter.

SECTION 57.03. Subchapter A, Chapter 490, Government Code,

is amended by adding Section 490.006 to read as follows:

Sec. 490.006. VALUATION OF INVESTMENTS; INCLUSION IN ANNUAL

REPORT. To the maximum extent practicable, the office of the

governor shall annually perform a valuation of the equity positions

taken by the governor, on behalf of the state, in companies

receiving awards under the fund and of other investments made by the

governor, on behalf of the state, in connection with an award under

the fund. The valuation must:

(1) be based on a methodology that:

(A) may be developed in consultation with the

comptroller's office; and

(B) is consistent with generally accepted

accounting principles; and

(2) be included with the annual report required under

Section 490.005.

SECTION 57.04. The heading to Section 490.052, Government

Code, is amended to read as follows:

Sec. 490.052. APPOINTMENT TO COMMITTEE [~~BY GOVERNOR~~];

NOMINATIONS.

SECTION 57.05. Section 490.052, Government Code, is amended

by amending Subsection (a) and adding Subsections (a-1) and (a-2)

to read as follows:

(a) The governor shall appoint to the committee 13

individuals nominated as provided by Subsection (b).

(a-1) The lieutenant governor shall appoint two individuals

to the committee.

(a-2) The speaker of the house of representatives shall

appoint two individuals to the committee.

SECTION 57.06. Subchapter B, Chapter 490, Government Code,

is amended by adding Section 490.0521 to read as follows:

Sec. 490.0521. FINANCIAL STATEMENT REQUIRED. Each member

of the committee shall file with the office of the governor a

verified financial statement complying with Sections 572.022

through 572.0252 as is required of a state officer by Section

572.021.

SECTION 57.07. Section 490.054, Government Code, is amended

to read as follows:

Sec. 490.054. TERMS. (a) Members of the committee

appointed by the governor serve staggered two-year terms, subject

to the pleasure of the governor.

(b) Members of the committee appointed by the lieutenant

governor or the speaker of the house of representatives serve

two-year terms.

SECTION 57.08. Section 490.056, Government Code, is amended

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

money from the fund as provided by this chapter shall obtain and

provide the following information to the office of the governor:

(1) a federal criminal history background check for

each principal of the entity;

(2) a state criminal history background check for each

principal of the entity;

(3) a credit check for each principal of the entity;

(4) a copy of a government-issued form of photo

identification for each principal of the entity; and

(5) information regarding whether the entity or a

principal of the entity has ever been subject to a sanction imposed

by the Securities and Exchange Commission for a violation of

applicable federal law.

(d) For purposes of Subsection (c), "principal" means:

(1) an officer of an entity; or

(2) a person who has at least a 10 percent ownership

interest in an entity.

(e) With each proposal to award funding submitted by the

governor to the lieutenant governor and speaker of the house of

representatives for purposes of obtaining prior approval, the

governor shall provide each officer with a copy of the information

provided by the appropriate entity under Subsection (c).

SECTION 57.09. Section 490.057, Government Code, is amended

to read as follows:

Sec. 490.057. CONFIDENTIALITY. (a) Except as provided by

Subsection (b), information [~~Information~~] collected by the

governor's office, the committee, or the committee's advisory

panels concerning the identity, background, finance, marketing

plans, trade secrets, or other commercially or academically

sensitive information of an individual or entity being considered

for, receiving, or having received an award from the fund is

confidential unless the individual or entity consents to disclosure

of the information.

(b) The following information collected by the governor's

office, the committee, or the committee's advisory panels under

this chapter is public information and may be disclosed under

Chapter 552:

(1) the name and address of an individual or entity

receiving or having received an award from the fund;

(2) the amount of funding received by an award

recipient;

(3) a brief description of the project that is funded

under this chapter;

(4) if applicable, a brief description of the equity

position that the governor, on behalf of the state, has taken in an

entity that has received an award from the fund; and

(5) any other information designated by the committee

with the consent of:

(A) the individual or entity receiving or having

received an award from the fund, as applicable;

(B) the governor;

(D) the speaker of the house of representatives.

SECTION 57.10. Section 490.101, Government Code, is amended

by amending Subsection (f) and adding Subsection (f-1) to read as

follows:

(f) The administration of the fund is considered to be a

trusteed program within the office of the governor. The governor

may negotiate on behalf of the state regarding awards from the

fund. The governor may award money appropriated from the fund only

with the [~~express written~~] prior approval of the lieutenant

governor and speaker of the house of representatives.

(f-1) For purposes of Subsection (f), an award of money

appropriated from the fund is considered disapproved by the

lieutenant governor or speaker of the house of representatives if

that officer does not approve the proposal to award funding before

the 91st day after the date of receipt of the proposal from the

governor. The lieutenant governor or the speaker of the house of

representatives may extend the review deadline applicable to that

officer for an additional 14 days by submitting a written notice to

that effect to the governor before the expiration of the initial

review period.

SECTION 57.11. Subsection (a), Section 490.151, Government

Code, is amended to read as follows:

(a) Amounts allocated from the fund for use as provided by

this subchapter shall be used only to provide direct funding to

[~~reserved for incentives for~~] private or nonprofit entities for

incentives to collaborate with public or private institutions of

higher education in this state on emerging technology projects

intended to accelerate the commercialization of intellectual

property derived from the institutions of higher education [~~with a~~

~~demonstrable economic benefit to this state~~].

SECTION 57.12. Subchapter D, Chapter 490, Government Code,

is amended by adding Section 490.1521 to read as follows:

Sec. 490.1521. MINUTES OF CERTAIN MEETINGS. (a) Each

regional center of innovation and commercialization established

under Section 490.152, including the Texas Life Science Center for

Innovation and Commercialization, shall keep minutes of each

meeting at which applications for funding under this subchapter are

evaluated. The minutes must:

(1) include the name of each applicant recommended by

the regional center of innovation and commercialization to the

committee for funding; and

(2) indicate the vote of each member of the governing

body of the regional center of innovation and commercialization,

including any recusal by a member and the member's reason for

recusal, with regard to each application reviewed.

(b) Each regional center of innovation and

commercialization shall retain a copy of the minutes of each

meeting to which this section applies for at least three years.

SECTION 57.13. Section 203.021, Labor Code, is amended by

adding Subsection (e) to read as follows:

(e) Money in the compensation fund may not be transferred to

the:

(1) Texas Enterprise Fund created under Section

481.078, Government Code; or

(2) Texas emerging technology fund established under

Section 490.101, Government Code.

SECTION 57.14. Section 204.123, Labor Code, is amended to

read as follows:

Sec. 204.123. TRANSFER TO [~~TEXAS ENTERPRISE FUND,~~] SKILLS

DEVELOPMENT FUND, TRAINING STABILIZATION FUND, AND COMPENSATION

FUND. (a) If, on September 1 of a year, the commission determines

that the amount in the compensation fund will exceed 100 percent of

its floor as computed under Section 204.061 on the next October 1

computation date, the commission shall transfer from the holding

fund created under Section 204.122:

(1) [~~from the first $160 million deposited in the~~

~~holding fund in any state fiscal biennium:~~

[~~(A)~~ ~~during the state fiscal biennium ending~~

~~August 31, 2007:~~

[~~(i)~~ ~~67 percent to the Texas Enterprise~~

~~Fund created under Section 481.078, Government Code, except that~~

~~the amount transferred under this paragraph may not exceed the~~

~~amount appropriated by the legislature to the Texas Enterprise Fund~~

~~in that biennium; and~~

[~~(ii)~~ ~~33 percent to the skills development~~

~~fund created under Section 303.003, except that the amount~~

~~transferred under this paragraph may not exceed the amount~~

~~appropriated by the legislature to the skills development program~~

~~strategies and activities in that biennium; and~~

[~~(B)~~] during any state fiscal biennium beginning

on or after September 1, 2007, 100 [:

[~~(i)~~ ~~75 percent to the Texas Enterprise~~

~~Fund created under Section 481.078, Government Code, except that~~

~~the amount transferred under this paragraph may not exceed the~~

~~amount appropriated by the legislature to the Texas Enterprise Fund~~

~~in that biennium; and~~

[~~(ii) 25~~] percent to the skills development

fund created under Section 303.003, except that the amount

transferred under this subdivision [~~paragraph~~] may not exceed the

amount appropriated by the legislature to the skills development

program strategies and activities in that biennium; and

(2) any remaining amount in the holding fund after the

distribution under Subdivision (1) to the training stabilization

fund created under Section 302.101.

(b) If, on September 1 of a year, the commission determines

that the amount in the compensation fund will be at or below 100

percent of its floor as computed under Section 204.061 on the next

October 1 computation date, the commission shall transfer to the

compensation fund as much of the amount in the holding fund as is

necessary to raise the amount in the compensation fund to 100

percent of its floor, up to and including the entire amount in the

holding fund. The commission shall transfer any remaining balance

in the holding fund to the [~~Texas Enterprise Fund, the~~] skills

development fund[,] and the training stabilization fund in the

manner [~~in the percentages~~] prescribed by Subsection (a).

SECTION 57.15. Subsections (b) and (c), Section 302.101,

Labor Code, are amended to read as follows:

(b) Money in the training stabilization fund may be used in

a year in which the amounts in the employment and training

investment holding fund are insufficient to meet the legislative

appropriation for that fiscal year for [~~either the Texas Enterprise~~

~~Fund or~~] the skills development program strategies and activities.

transferred to the [~~Texas Enterprise Fund and the~~] skills

development fund under Subsection (b) not later than September

30. [~~The transfer under Subsection (b) shall consist of~~

~~transferring 67 percent of the money in the training stabilization~~

~~fund to the Texas Enterprise Fund and 33 percent of the money in the~~

~~training stabilization fund to the skills development fund.~~] The

amount transferred from the training stabilization fund may not

exceed the amounts appropriated to the [~~Texas Enterprise Fund and~~]

skills development program strategies and activities in the fiscal

year in which the transfer is made.

SECTION 57.16. Sections 481.078(e) and 490.101(f),

Government Code, as amended by this article, and Section

490.101(f-1), Government Code, as added by this article, apply only

to a proposal for an award from the Texas Enterprise Fund or Texas

emerging technology fund submitted by the governor to the

lieutenant governor or speaker of the house of representatives for

prior approval on or after the effective date of this article. A

proposal submitted by the governor for prior approval before the

effective date of this article is governed by the law in effect on

the date the proposal was submitted for that approval, and the

former law is continued in effect for that purpose.

SECTION 57.17. Section 481.078(j), Government Code, as

amended by this article, and Sections 481.078(f-1) and (f-2),

Government Code, as added by this article, apply only to a grant

agreement that is entered into on or after the effective date of

this article. A grant agreement that is entered into before the

effective date of this article is governed by the law in effect on

the date the agreement was entered into, and the former law is

continued in effect for that purpose.

SECTION 57.18. (a) The terms of the members of the Texas

Emerging Technology Advisory Committee serving immediately before

the effective date of this article expire September 1, 2011.

(b) As soon as practicable after this article takes effect,

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

representatives shall appoint members to the Texas Emerging

Technology Advisory Committee established under Subchapter B,

Chapter 490, Government Code, in a manner that complies with that

subchapter, as amended by this article.

Technology Advisory Committee established under Subchapter B,

Chapter 490, Government Code, as amended by this article, occurring

on or after September 1, 2011, the members appointed by the governor

shall draw lots to determine which six members will serve a term

expiring September 1, 2012, and which seven members will serve a

term expiring September 1, 2013.

Explanation: This change is necessary to reform the

functions and administration of the Texas Enterprise Fund and the

Texas Emerging Technology Fund.

(3) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding Section 45.02 to Article 45 of the bill amending

Chapter 322, Government Code, to read as follows:

SECTION 45.02. 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.

Explanation: This change is necessary to provide for certain

budget documents to be made available on the Internet website of the

Legislative Budget Board.

(4) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding Section 56.02 to Article 56 of the bill to read as

follows:

SECTION 56.02. Subsection (c), Section 171.0002, Tax Code,

is amended to read as follows:

(1) a grantor trust as defined by Sections 671 and

7701(a)(30)(E), Internal Revenue Code, all of the grantors and

beneficiaries of which are natural persons or charitable entities

as described in Section 501(c)(3), Internal Revenue Code, excluding

a trust taxable as a business entity pursuant to Treasury

Regulation Section 301.7701-4(b);

(2) an estate of a natural person as defined by Section

7701(a)(30)(D), Internal Revenue Code, excluding an estate taxable

as a business entity pursuant to Treasury Regulation Section

301.7701-4(b);

(3) an escrow;

(4) a real estate investment trust (REIT) as defined

by Section 856, Internal Revenue Code, and its "qualified REIT

subsidiary" entities as defined by Section 856(i)(2), Internal

Revenue Code, provided that:

(A) a REIT with any amount of its assets in direct

holdings of real estate, other than real estate it occupies for

business purposes, as opposed to holding interests in limited

partnerships or other entities that directly hold the real estate,

is a taxable entity; and

(B) a limited partnership or other entity that

directly holds the real estate as described in Paragraph (A) is not

exempt under this subdivision, without regard to whether a REIT

holds an interest in it;

(5) a real estate mortgage investment conduit (REMIC),

as defined by Section 860D, Internal Revenue Code;

(6) a nonprofit self-insurance trust created under

Chapter 2212, Insurance Code, or a predecessor statute;

(7) a trust qualified under Section 401(a), Internal

Revenue Code; [or]

(8) a trust or other entity that is exempt under

Section 501(c)(9), Internal Revenue Code; or

(9) an unincorporated entity organized as a political

committee under the Election Code or the provisions of the Federal

Election Campaign Act of 1971 (2 U.S.C. Section 431 et seq.).

Explanation: This change is necessary to ensure that certain

unincorporated political committees are not considered "taxable

entities" for purposes of the franchise tax.

(5) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 61 to read as follows:

ARTICLE 61. CERTAIN CONTRIBUTION RATE COMPUTATIONS

SECTION 61.01. Section 815.402, Government Code, is amended

by adding Subsections (a-1) and (h-1) to read as follows:

(a-1) Notwithstanding Subsection (a)(1), if the state

contribution to the retirement system is computed using a

percentage less than 6.5 percent for the state fiscal year

beginning September 1, 2011, the member's contribution is not

required to be computed using a percentage equal to the percentage

used to compute the state contribution for that biennium. This

subsection expires September 1, 2012.

(h-1) Notwithstanding Subsection (h), if the state

contribution to the law enforcement and custodial officer

supplemental retirement fund is computed using a percentage less

than 0.5 percent for the state fiscal year beginning September 1,

2011, the member's contribution is not required to be computed

using a percentage equal to the percentage used to compute the state

contribution for that biennium. This subsection expires September

1, 2012.

Explanation: This change is necessary to allow, for one

year, for a difference between the percentage used for the

computations of the state retirement system contributions and that

used for members' retirement system contributions for certain

system members.

(6) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 62 to read as follows:

ARTICLE 62. QUINQUENNIAL REPORTING OF CERTAIN INFORMATION FOR

UNCLAIMED PROPERTY

SECTION 62.01. Subsection (a), Section 411.0111,

Government Code, is amended to read as follows:

(a) Not later than June 1 of every fifth [~~each~~] year, the

department shall provide to the comptroller, for the purpose of

assisting the comptroller in the identification of persons entitled

to unclaimed property reported to the comptroller, the name,

address, social security number, date of birth, and driver's

license or state identification number of each person about whom

the department has such information in its records.

SECTION 62.02. Subsection (a), Section 811.010, Government

Code, as added by Chapter 232 (S.B. 1589), Acts of the 81st

Legislature, Regular Session, 2009, is amended to read as follows:

(a) Not later than June 1 of every fifth [~~each~~] year, the

retirement system shall provide to the comptroller, for the purpose

of assisting the comptroller in the identification of persons

entitled to unclaimed property reported to the comptroller, the

name, address, social security number, and date of birth of each

member, retiree, and beneficiary from the retirement system's

records.

SECTION 62.03. Subsection (a), Section 821.010, Government

Code, is amended to read as follows:

(a) Not later than June 1 of every fifth [~~each~~] year, the

retirement system shall provide to the comptroller, for the purpose

of assisting the comptroller in the identification of persons

entitled to unclaimed property reported to the comptroller, the

name, address, social security number, and date of birth of each

member, retiree, and beneficiary from the retirement system's

records.

SECTION 62.04. Subsection (a), Section 301.086, Labor Code,

is amended to read as follows:

(a) Not later than June 1 of every fifth [~~each~~] year, the

commission shall provide to the comptroller, for the purpose of

assisting the comptroller in the identification of persons entitled

to unclaimed property reported to the comptroller, the name,

address, social security number, and date of birth of each person

about whom the commission has such information in its records.

SECTION 62.05. The Department of Public Safety, the

Employees Retirement System of Texas, the Teacher Retirement System

of Texas, and the Texas Workforce Commission shall provide

information to the comptroller as required by Sections 411.0111(a),

811.010(a), and 821.010(a), Government Code, and Section

301.086(a), Labor Code, as amended by this article, beginning in

2016.

Explanation: This change is necessary to provide for certain

reports, filed for the purpose of assisting the comptroller in the

identification of persons entitled to unclaimed property, to be

filed every fifth year instead of annually.

(7) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 63 to read as follows:

ARTICLE 63. AD VALOREM TAXATION OF CERTAIN STORED PROPERTY

SECTION 63.01. Subsection (a), Section 11.253, Tax Code, is

amended by amending Subdivision (2) and adding Subdivisions (5) and

(6) to read as follows:

(2) "Goods-in-transit" means tangible personal

property that:

(A) is acquired in or imported into this state to

be forwarded to another location in this state or outside this

state;

(B) is stored under a contract of bailment by a

public warehouse operator [~~detained~~] at one or more public

warehouse facilities [~~a location~~] in this state that are not in any

way owned or controlled by [~~in which~~] the owner of the personal

property [~~does not have a direct or indirect ownership interest~~]

for the account of [~~assembling, storing, manufacturing,~~

~~processing, or fabricating purposes by~~] the person who acquired or

imported the property;

state or outside this state not later than 175 days after the date

the person acquired the property in or imported the property into

this state; and

(D) does not include oil, natural gas, petroleum

products, aircraft, dealer's motor vehicle inventory, dealer's

vessel and outboard motor inventory, dealer's heavy equipment

inventory, or retail manufactured housing inventory.

(5) "Bailee" and "warehouse" have the meanings

assigned by Section 7.102, Business & Commerce Code.

(6) "Public warehouse operator" means a person that:

(A) is both a bailee and a warehouse; and

(B) stores under a contract of bailment, at one

or more public warehouse facilities, tangible personal property

that is owned by other persons solely for the account of those

persons and not for the operator's account.

SECTION 63.02. Section 11.253, Tax Code, is amended by

amending Subsections (e) and (h) and adding Subsections (j-1) and

(j-2) to read as follows:

(e) In determining the market value of goods-in-transit

that in the preceding year were [~~assembled,~~] stored[~~, manufactured,~~

~~processed, or fabricated~~] in this state, the chief appraiser shall

exclude the cost of equipment, machinery, or materials that entered

into and became component parts of the goods-in-transit but were

not themselves goods-in-transit or that were not transported to

another location in this state or outside this state before the

expiration of 175 days after the date they were brought into this

state by the property owner or acquired by the property owner in

this state. For component parts held in bulk, the chief appraiser

may use the average length of time a component part was held by the

owner of the component parts during the preceding year at a location

in this state that was not owned by or under the control of the owner

of the component parts in determining whether the component parts

were transported to another location in this state or outside this

state before the expiration of 175 days.

(h) The chief appraiser by written notice delivered to a

property owner who claims an exemption under this section may

require the property owner to provide copies of property records so

the chief appraiser can determine the amount and value of

goods-in-transit and that the location in this state where the

goods-in-transit were detained for storage [~~assembling, storing,~~

~~manufacturing, processing, or fabricating purposes~~] was not owned

by or under the control of the owner of the goods-in-transit. If

the property owner fails to deliver the information requested in

the notice before the 31st day after the date the notice is

delivered to the property owner, the property owner forfeits the

right to claim or receive the exemption for that year.

(j-1) Notwithstanding Subsection (j) or official action

that was taken under that subsection before September 1, 2011, to

tax goods-in-transit exempt under Subsection (b) and not exempt

under other law, a taxing unit may not tax such goods-in-transit in

a tax year that begins on or after January 1, 2012, unless the

governing body of the taxing unit takes action on or after September

1, 2011, in the manner required for official action by the governing

body, to provide for the taxation of the goods-in-transit. The

official action to tax the goods-in-transit must be taken before

January 1 of the first tax year in which the governing body proposes

to tax goods-in-transit. Before acting to tax the exempt property,

the governing body of the taxing unit must conduct a public hearing

as required by Section 1-n(d), Article VIII, Texas Constitution.

If the governing body of a taxing unit provides for the taxation of

the goods-in-transit as provided by this subsection, the exemption

prescribed by Subsection (b) does not apply to that unit. The

goods-in-transit remain subject to taxation by the taxing unit

until the governing body of the taxing unit, in the manner required

for official action, rescinds or repeals its previous action to tax

goods-in-transit or otherwise determines that the exemption

prescribed by Subsection (b) will apply to that taxing unit.

(j-2) Notwithstanding Subsection (j-1), if under Subsection

(j) the governing body of a taxing unit, before September 1, 2011,

took action to provide for the taxation of goods-in-transit and

pledged the taxes imposed on the goods-in-transit for the payment

of a debt of the taxing unit, the tax officials of the taxing unit

may continue to impose the taxes against the goods-in-transit until

the debt is discharged, if cessation of the imposition would impair

the obligation of the contract by which the debt was created.

SECTION 63.03. Subdivision (2), Subsection (a), Section

11.253, Tax Code, as amended by this article, applies only to an ad

valorem tax year that begins on or after January 1, 2012.

SECTION 63.04. (a) Except as provided by Subsection (b) of

this section, this article takes effect January 1, 2012.

(b) Section 63.02 of this article takes effect September 1,

2011.

Explanation: This change is necessary to clarify the law

regarding the exemption from ad valorem taxation of certain

property stored temporarily at a location in this state.

(8) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 64 to read as follows:

ARTICLE 64. FISCAL MATTERS CONCERNING ADVANCED PLACEMENT

SECTION 64.01. Subsection (h), Section 28.053, Education

Code, is amended to read as follows:

(h) The commissioner may enter into agreements with the

college board and the International Baccalaureate Organization to

pay for all examinations taken by eligible public school students.

An eligible student is a student [~~one~~] who:

(1) takes a college advanced placement or

international baccalaureate course at a public school or who is

recommended by the student's principal or teacher to take the test;

and

(2) demonstrates financial need as determined in

accordance with guidelines adopted by the board that are consistent

with the definition of financial need adopted by the college board

or the International Baccalaureate Organization.

Explanation: This change is necessary to provide that only

students who demonstrate financial need are eligible students for

the purpose of payments for certain examinations related to an

advanced placement course or international baccalaureate course.

(9) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 65 to read as follows:

ARTICLE 65. FISCAL MATTERS CONCERNING TUITION EXEMPTIONS

SECTION 65.01. Subsection (c), Section 54.214, Education

Code, is amended to read as follows:

person must:

(1) be a resident of this state;

(2) be a school employee serving in any capacity;

(3) for the initial term or semester for which the

person receives an exemption under this section, have worked as an

educational aide for at least one school year during the five years

preceding that term or semester;

(4) establish financial need as determined by

coordinating board rule;

(5) be enrolled at the institution of higher education

granting the exemption in courses required for teacher

certification in one or more subject areas determined by the Texas

Education Agency to be experiencing a critical shortage of teachers

at the public schools in this state [~~at the institution of higher~~

~~education granting the exemption~~];

(6) maintain an acceptable grade point average as

determined by coordinating board rule; and

(7) comply with any other requirements adopted by the

coordinating board under this section.

SECTION 65.02. The change in law made by this article

applies beginning with tuition and fees charged for the 2011 fall

semester. Tuition and fees charged for a term or semester before

the 2011 fall semester are covered by the law in effect during the

term or semester for which the tuition and fees are charged, and the

former law is continued in effect for that purpose.

Explanation: This change is necessary to provide for

targeting tuition exemptions to course work in subject areas for

which there is a shortage of teachers.

(10) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 66 to read as follows:

ARTICLE 66. FISCAL MATTERS CONCERNING DUAL HIGH SCHOOL AND

JUNIOR COLLEGE CREDIT

SECTION 66.01. Subsection (c), Section 130.008, Education

Code, is amended to read as follows:

high school student in a course offered for joint high school and

junior college credit under this section, excluding a course for

which the student attending high school may receive course credit

toward the physical education curriculum requirement under Section

28.002(a)(2)(C), shall be included in the contact hours used to

determine the junior college's proportionate share of the state

money appropriated and distributed to public junior colleges under

Sections 130.003 and 130.0031, even if the junior college waives

all or part of the tuition or fees for the student under Subsection

(b).

SECTION 66.02. This article applies beginning with funding

for the 2011 fall semester.

Explanation: This change is necessary to prevent junior

colleges from receiving state funding for high school students

enrolled for dual credit in physical education courses.

(11) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 67 to read as follows:

ARTICLE 67. CLASSIFICATION OF ENTITIES AS ENGAGED IN RETAIL

TRADE FOR PURPOSES OF THE FRANCHISE TAX

SECTION 67.01. Subdivision (12), Section 171.0001, Tax

Code, is amended to read as follows:

(12) "Retail trade" means:

(A) the activities described in Division G of the

1987 Standard Industrial Classification Manual published by the

federal Office of Management and Budget; and

(B) apparel rental activities classified as

Industry 5999 or 7299 of the 1987 Standard Industrial

Classification Manual published by the federal Office of Management

and Budget.

SECTION 67.02. This article applies only to a report

originally due on or after the effective date of this Act.

SECTION 67.03. This article takes effect January 1, 2012.

Explanation: This change is necessary to clarify the

treatment of clothing rental businesses for purposes of the

franchise tax.

(12) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 68 to read as follows:

ARTICLE 68. RETENTION OF CERTAIN FOUNDATION SCHOOL FUND PAYMENTS

SECTION 68.01. Subchapter E, Chapter 42, Education Code, is

amended by adding Section 42.2511 to read as follows:

Sec. 42.2511. AUTHORIZATION FOR CERTAIN DISTRICTS TO RETAIN

ADDITIONAL STATE AID. (a) This section applies only to a school

district that was provided with state aid under former Section

42.2516 for the 2009-2010 or 2010-2011 school year based on the

amount of aid to which the district would have been entitled under

that section if Section 42.2516(g), as it existed on January 1,

2009, applied to determination of the amount to which the district

was entitled for that school year.

(b) Notwithstanding any other law, a district to which this

section applies may retain the state aid provided to the district as

described by Subsection (a).

SECTION 68.02. It is the intent of the legislature that the

authorization provided by Section 42.2511, Education Code, as added

by this article, to retain state aid described by that section is

not affected by the expiration of that provision on September 1,

2013.

Explanation: This change is necessary to allow school

districts that adopted a tax rate lower than the applicable

compressed tax rate to retain additional state aid for tax

reduction that was received in the 2009-2010 or 2010-2011 school

year.

(13) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 69 to read as follows:

ARTICLE 69. THE STATE COMPRESSION PERCENTAGE

SECTION 69.01. Section 42.2516, Education Code, is amended

by adding Subsection (b-2) to read as follows:

(b-2) If a school district adopts a maintenance and

operations tax rate that is below the rate equal to the product of

the state compression percentage multiplied by the maintenance and

operations tax rate adopted by the district for the 2005 tax year,

the commissioner shall reduce the district's entitlement under this

section in proportion to the amount by which the adopted rate is

less than the rate equal to the product of the state compression

percentage multiplied by the rate adopted by the district for the

2005 tax year. The reduction required by this subsection applies

beginning with the maintenance and operations tax rate adopted for

the 2009 tax year.

Explanation: This change is necessary to provide for a

reduced amount of additional state aid for tax reduction to a school

district that adopts a tax rate lower than the applicable

compressed tax rate.

(14) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 70 to read as follows:

ARTICLE 70. TEXAS GUARANTEED STUDENT LOAN CORPORATION;

BOARD OF DIRECTORS

SECTION 70.01. Subsections (a) and (b), Section 57.13,

Education Code, are amended to read as follows:

(a) The corporation is governed by a board of nine [11]

directors in accordance with this section.

(b) The governor, with the advice and consent of the senate,

shall appoint the [10] members of [to] the board as follows:

(1) four [~~five~~] members who must have knowledge of or

experience in finance, including management of funds or business

operations;

(2) one member who must be a student enrolled at a

postsecondary educational institution for the number of credit

hours required by the institution to be classified as a full-time

student of the institution; and

(3) four members who must be members of the faculty or

administration of a [~~an eligible~~] postsecondary educational

institution that is an eligible institution for purposes of the

Higher Education Act of 1965, as amended[~~, as defined by Section~~

~~57.46~~].

SECTION 70.02. Section 57.17, Education Code, is amended to

read as follows:

Sec. 57.17. OFFICERS. The governor shall designate the

chairman from among the board's membership. The board shall elect

from among its members a [~~chairman,~~] vice-chairman[,] and other

officers that the board considers necessary. The chairman and

vice-chairman serve for a term of one year and may be redesignated

or reelected, as applicable.

SECTION 70.03. Subsection (d), Section 57.13, Education

Code, is repealed.

Explanation: This change is necessary to reform the

governance of the Texas Guaranteed Student Loan Corporation.

(15) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 71 to read as follows:

ARTICLE 71. DRIVER'S LICENSES AND PERSONAL IDENTIFICATION

CERTIFICATES

SECTION 71.01. Subchapter A, Chapter 521, Transportation

Code, is amended by adding Section 521.007 to read as follows:

Sec. 521.007. SECURITY, VALIDITY, AND EFFICIENCY STUDY.

(a) Notwithstanding any other law, the commission shall study

procedures and requirements necessary or advisable to ensure the

security, validity, and efficiency of driver's licenses and

personal identification certificates issued under this chapter.

The study must include an analysis of potential cost savings,

revenue issues, and other fiscal matters related to the issuance of

the license and certificates. The commission shall adopt rules to

implement any procedures or requirements the commission finds are

necessary or advisable.

(b) Notwithstanding any other law, the commission by rule

may specify the term of a driver's license or personal

identification certificate issued under this chapter.

SECTION 71.02. The legislature declares that the Department

of Public Safety had the statutory authority to adopt the rules

regarding driver's licenses and personal identification

certificates that are in effect on the effective date of this

article and that the rules are valid.

SECTION 71.03. 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

this article to have immediate effect, this article takes effect

September 1, 2011.

Explanation: This change is necessary to identify procedures

and requirements to ensure the security, validity, and efficiency

of driver's licenses and personal identification certificates, to

identify the potential cost savings, revenue issues, and other

fiscal matters related to the issuance of license and certificates,

to provide for authority for rules to specify the terms of licenses

and certificates, and to validate certain rules previously adopted

regarding driver's licenses and personal identification

certificates.

(16) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 72 to read as follows:

ARTICLE 72. FISCAL MATTERS CONCERNING LEASES OF PUBLIC LAND FOR

MINERAL DEVELOPMENT

SECTION 72.01. Subsections (a) and (c), Section 85.66,

Education Code, are amended to read as follows:

(a) If oil or other minerals are developed on any of the

lands leased by the board, the royalty or money as stipulated in the

sale shall be paid to the general land office at Austin on or before

the last day of each month for the preceding month during the life

of the rights purchased, and shall be set aside [~~in the state~~

~~treasury~~] as specified in Section 85.70 [~~of this code~~]. The royalty

or money paid to the general land office shall be accompanied by the

sworn statement of the owner, manager, or other authorized agent

showing the gross amount of oil, gas, sulphur, mineral ore, and

other minerals produced and saved since the last report, the amount

of oil, gas, sulphur, mineral ore, and other minerals produced and

sold off the premises, and the market value of the oil, gas,

sulphur, mineral ore, and other minerals, together with a copy of

all daily gauges, or vats, tanks, gas meter readings, pipeline

receipts, gas line receipts and other checks and memoranda of the

amounts produced and put into pipelines, tanks, vats, or pool and

gas lines, gas storage, other places of storage, and other means of

transportation.

to the board on or before the 10th day of each month a report of all

receipts that are collected from the lease or sale of oil, gas,

sulphur, mineral ore, and other minerals and that are deposited

[~~turned into the state treasury,~~] as provided by Section 85.70

during [~~of this code, of~~] the preceding month.

SECTION 72.02. Section 85.69, Education Code, is amended to

read as follows:

Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this

subchapter shall be made to the commissioner of the general land

office at Austin, who shall transmit to the board [~~comptroller~~] all

royalties, lease fees, rentals for delay in drilling or mining, and

all other payments, including all filing assignments and

relinquishment fees, to be deposited [~~in the state treasury~~] as

provided by Section 85.70 [~~of this code~~].

SECTION 72.03. Section 85.70, Education Code, is amended to

read as follows:

Sec. 85.70. CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;

SPECIAL FUNDS; INVESTMENT. (a) Except as provided by Subsection

this subchapter shall be deposited in [~~the state treasury to the~~

~~credit of~~] a special fund managed by the board to be known as The

Texas A&M University System Special Mineral Investment Fund. Money

in the fund is considered to be institutional funds, as defined by

Section 51.009, of the system and its component institutions. The

[~~With the approval of the comptroller, the board of regents of The~~

~~Texas A&M University System may appoint one or more commercial~~

~~banks, depository trust companies, or other entities to serve as~~

~~custodian or custodians of the Special Mineral Investment Fund's~~

~~securities with authority to hold the money realized from those~~

~~securities pending completion of an investment transaction if the~~

~~money held is reinvested within one business day of receipt in~~

~~investments determined by the board of regents. Money not~~

~~reinvested within one business day of receipt shall be deposited in~~

~~the state treasury not later than the fifth day after the date of~~

~~receipt. In the judgment of the board, this~~] special fund may be

invested so as to produce [an] income which may be expended under

the direction of the board for the general use of any component of

The Texas A&M University System, including erecting permanent

improvements and in payment of expenses incurred in connection with

the administration of this subchapter. The unexpended income

likewise may be invested as [~~herein~~] provided by this section.

(b) The income from the investment of the special mineral

investment fund created by [~~under~~] Subsection (a) [~~of this section~~]

shall be deposited in [~~to the credit of~~] a fund managed by the board

to be known as The Texas A&M University System Special Mineral

Income Fund, and is considered to be institutional funds, as

defined by Section 51.009, of the system and its component

institutions [~~shall be appropriated by the legislature exclusively~~

~~for the university system for the purposes herein provided~~].

mineral development, as prescribed by this subchapter, all or part

of the land under the exclusive control of the board owned by the

State of Texas and acquired for the use of Texas A&M

University--Kingsville and its divisions. Any money received by

the board concerning such land under this subchapter shall be

deposited in [~~the state treasury to the credit of~~] a special fund

managed by the board to be known as the Texas A&M

University--Kingsville special mineral fund. Money in the fund is

considered to be institutional funds, as defined by Section 51.009,

of the university and is[,] to be used exclusively for the

university [~~Texas A&M University--Kingsville~~] and its branches and

divisions. [~~Money may not be expended from this fund except as~~

~~authorized by the general appropriations act.~~]

(d) All deposits in and investments of the fund under this

section shall be made in accordance with Section 51.0031.

(e) Section 34.017, Natural Resources Code, does not apply

to funds created by this section.

SECTION 72.04. Subsection (b), Section 95.36, Education

Code, is amended to read as follows:

(b) Except as provided in Subsection (c) of this section,

any money received by virtue of this section and the income from the

investment of such money shall be deposited in [~~the State Treasury~~

~~to the credit of~~] a special fund managed by the board to be known as

the Texas State University System special mineral fund. Money in

the fund is considered to be institutional funds, as defined by

Section 51.009, of the system and its component institutions and

is[,] to be used exclusively for those entities. All deposits in and

investments of the fund shall be made in accordance with Section

51.0031. Section 34.017, Natural Resources Code, does not apply to

the fund [~~the university system and the universities in the system.~~

~~However, no money shall ever be expended from this fund except as~~

~~authorized by the General Appropriations Act~~].

SECTION 72.05. Subsection (b), Section 109.61, Education

Code, is amended to read as follows:

(b) Any money received by virtue of this section shall be

deposited in [~~the state treasury to the credit of~~] a special fund

managed by the board to be known as the Texas Tech University

special mineral fund. Money in the fund is considered to be

institutional funds, as defined by Section 51.009, of the

university and is[,] to be used exclusively for the university and

its branches and divisions. All deposits in and investments of the

fund shall be made in accordance with Section 51.0031. Section

34.017, Natural Resources Code, does not apply to the fund.

[~~However, no money shall ever be expended from this fund except as~~

~~authorized by the general appropriations act.~~]

SECTION 72.06. Subsections (a) and (c), Section 109.75,

Education Code, are amended to read as follows:

(a) If oil or other minerals are developed on any of the

lands leased by the board, the royalty as stipulated in the sale

shall be paid to the general land office in Austin on or before the

last day of each month for the preceding month during the life of

the rights purchased. The royalty payments shall be set aside [in

~~the state treasury~~] as specified in Section 109.61 [~~of this code~~]

and used as provided in that section.

to the board on or before the 10th day of each month a report of all

receipts that are collected from the lease or sale of oil, gas,

sulphur, or other minerals and that are deposited in [~~turned into~~]

the special fund as provided by Section 109.61 [~~in the state~~

~~treasury~~] during the preceding month.

SECTION 72.07. Subsection (b), Section 109.78, Education

Code, is amended to read as follows:

(b) Payment of all royalties, lease fees, rentals for delay

in drilling or mining, filing fees for assignments and

relinquishments, and all other payments shall be made to the

commissioner of the general land office at Austin. The

commissioner shall transmit all payments received to the board

[~~comptroller~~] for deposit to the credit of the Texas Tech

University special mineral fund as provided by Section 109.61.

SECTION 72.08. Section 85.72, Education Code, is repealed.

SECTION 72.09. This article takes effect September 1, 2011.

Explanation: This change is necessary to provide for certain

mineral income for the Texas A&M University System, Texas Tech

University, and the Texas State University System to be treated

similarly to mineral income for other institutions of higher

education.

(17) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 73 to read as follows:

ARTICLE 73. FOUNDATION SCHOOL PROGRAM FINANCING; CERTAIN TAX

INCREMENT FUND REPORTING MATTERS

SECTION 73.01. (a) This section applies only to a school

district that, before May 1, 2011, received from the commissioner

of education a notice of a reduction in state funding for the

2004-2005, 2005-2006, 2006-2007, 2007-2008, and 2008-2009 school

years based on the district's reporting related to deposits of

taxes into a tax increment fund under Chapter 311, Tax Code.

(b) Notwithstanding any other law, including Section

42.302(b)(2), Education Code, the commissioner of education shall

reduce by one-half the amounts of the reduction of entitlement

amounts computed for purposes of adjusting entitlement amounts to

account for taxes deposited into a tax increment fund for any of the

school years described by Subsection (a) of this section.

Explanation: This change is necessary to provide for the

proper adjustment of foundation school program entitlement amounts

in cases of reductions resulting from tax increment fund deposit

reporting for certain school years by certain school districts.

(18) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 74 to the bill to read as

follows:

ARTICLE 74. CRIMINAL BACKGROUND CHECKS FOR CERTAIN

INTERSCHOLASTIC SPORTS OFFICIALS

SECTION 74.01. Subchapter D, Chapter 33, Education Code, is

amended by adding Section 33.085 to read as follows:

Sec. 33.085. CRIMINAL BACKGROUND CHECKS FOR SPORTS

OFFICIALS; COST RECOVERY. (a) In this section, "sports official"

means a person who officiates, judges, or otherwise enforces

contest rules in an official capacity for athletic competition.

The term includes a referee, umpire, linesman, side judge, and back

judge.

(b) The University Interscholastic League by rule may

require a person to have a criminal background check conducted by

the league as a precondition of acting as a sports official for

interscholastic athletic competition.

allow a person to act as a sports official for interscholastic

athletic competition if a criminal background check conducted under

league rules reveals a conviction of:

(1) an offense involving moral turpitude;

(2) an offense involving a form of sexual or physical

abuse of a minor or student or other illegal conduct in which the

victim is a minor or student;

(3) a felony offense involving the possession,

transfer, sale, or distribution of or conspiracy to possess,

transfer, sell, or distribute a controlled substance, as defined by

Chapter 481, Health and Safety Code, or by 21 U.S.C. Section 801 et

seq.;

(4) an offense involving the illegal transfer,

appropriation, or use of school district funds or other district

property; or

(5) an offense involving an attempt by fraudulent or

unauthorized means to obtain or alter registration to serve as a

sports official for interscholastic athletic competition.

(d) An interscholastic athletic league by rule may

establish a cost recovery program to offset any costs the league

incurs as a result of the implementation of this section.

Explanation: This change is necessary to provide for criminal

background checks for certain sports officials for interscholastic

athletic competition and for the recover costs associated with the

program incurred by an interscholastic athletic league.

(19) House Rule 13, Section 9(4) is suspended to permit the

committee to add text on a matter not included in either version of

the bill by adding proposed Article 75 to the bill to read as

follows:

ARTICLE 75. FISCAL MATTERS RELATING TO PUBLIC SCHOOL FINANCE

SECTION 75.01. Effective September 1, 2011, Section 12.106,

Education Code, is amended by amending Subsection (a) and adding

Subsection (a-3) to read as follows:

(a) A charter holder is entitled to receive for the

open-enrollment charter school funding under Chapter 42 equal to

the greater of:

(1) the percentage specified by Section 42.2516(i)

multiplied by the amount of funding per student in weighted average

daily attendance, excluding enrichment funding under Sections

42.302(a-1)(2) and (3), as they existed on January 1, 2009, that

would have been received for the school during the 2009-2010 school

year under Chapter 42 as it existed on January 1, 2009, and an

additional amount of the percentage specified by Section 42.2516(i)

multiplied by $120 for each student in weighted average daily

attendance; or

(2) the amount of funding per student in weighted

average daily attendance, excluding enrichment funding under

Section 42.302(a), to which the charter holder would be entitled

for the school under Chapter 42 if the school were a school district

without a tier one local share for purposes of Section 42.253 and

without any local revenue for purposes of Section 42.2516.

(a-3) In determining funding for an open-enrollment charter

school under Subsection (a), the commissioner shall apply the

regular program adjustment factor provided under Section 42.101 to

calculate the regular program allotment to which a charter school

is entitled.

SECTION 75.02. Effective September 1, 2017, Subsection (a),

Section 12.106, Education Code, is amended to read as follows:

(a) A charter holder is entitled to receive for the

open-enrollment charter school funding under Chapter 42 equal to

[~~the greater of:~~

[~~(1)~~ ~~the amount of funding per student in weighted~~

~~average daily attendance, excluding enrichment funding under~~

~~Sections 42.302(a-1)(2) and (3), as they existed on January 1,~~

~~2009, that would have been received for the school during the~~

~~2009-2010 school year under Chapter 42 as it existed on January 1,~~

~~2009, and an additional amount of $120 for each student in weighted~~

~~average daily attendance; or~~

[~~(2)~~] the amount of funding per student in weighted

average daily attendance, excluding enrichment funding under

Section 42.302(a), to which the charter holder would be entitled

for the school under Chapter 42 if the school were a school district

without a tier one local share for purposes of Section 42.253 [~~and~~

~~without any local revenue for purposes of Section 42.2516~~].

SECTION 75.03. Effective September 1, 2011, Section 21.402,

Education Code, is amended by amending Subsections (a), (b), (c),

and (c-1) and adding Subsection (i) to read as follows:

(a) Except as provided by Subsection (d)[~~, (e),~~] or (f), a

school district must pay each classroom teacher, full-time

librarian, full-time counselor certified under Subchapter B, or

full-time school nurse not less than the minimum monthly salary,

based on the employee's level of experience in addition to other

factors, as determined by commissioner rule, determined by the

following formula:

MS = SF x FS

where:

"MS" is the minimum monthly salary;

"SF" is the applicable salary factor specified by Subsection

(c); and

"FS" is the amount, as determined by the commissioner under

Subsection (b), of the basic allotment as provided by Section

42.101 (a) or (b) for a school district with a maintenance and

operations tax rate at least equal to the state maximum compressed

tax rate, as defined by Section 42.101 (a) [~~state and local funds~~

~~per weighted student, including funds provided under Section~~

~~42.2516, available to a district eligible to receive state~~

~~assistance under Section 42.302 with a maintenance and operations~~

~~tax rate per $100 of taxable value equal to the product of the state~~

~~compression percentage, as determined under Section 42.2516,~~

~~multiplied by $1.50, except that the amount of state and local funds~~

~~per weighted student does not include the amount attributable to~~

~~the increase in the guaranteed level made by Chapter 1187, Acts of~~

~~the 77th Legislature, Regular Session, 2001~~].

(b) Not later than June 1 of each year, the commissioner

shall determine the basic allotment and resulting monthly salaries

to be paid by school districts as provided by Subsection (a) [~~amount~~

~~of state and local funds per weighted student available, for~~

~~purposes of Subsection (a), to a district described by that~~

~~subsection for the following school year~~].

.5464

[~~.6226~~]

.5582

[~~.6360~~]

.5698

[~~.6492~~]

.5816

[~~.6627~~]

.6064

[~~.6909~~]

.6312

[~~.7192~~]

.6560

[~~.7474~~]

.6790

[~~.7737~~]

.7008

[~~.7985~~]

.7214

[~~.8220~~]

.7408

[~~.8441~~]

.7592

[~~.8650~~]

.7768

[~~.8851~~]

.7930

[~~.9035~~]

.8086

[~~.9213~~]

.8232

[~~.9380~~]

.8372

[~~.9539~~]

.8502

[~~.9687~~]

.8626

[~~.9828~~]

.8744

[~~.9963~~]

.8854

[~~1.009~~]

(c-1) Notwithstanding Subsections [~~Subsection~~] (a) and

(b)[~~, for the 2009-2010 and 2010-2011 school years~~], each school

district shall pay a monthly salary to [~~increase the monthly salary~~

of] each classroom teacher, full-time speech pathologist,

full-time librarian, full-time counselor certified under

Subchapter B, and full-time school nurse that is at least equal to

the following monthly salary or the monthly salary determined by

the commissioner under Subsections (a) and (b), whichever is [by

~~the~~] greater [of]:

Years of

Monthly

Experience

Salary

2,732

2,791

2,849

2,908

3,032

3,156

3,280

3,395

3,504

3,607

3,704

3,796

3,884

3,965

4,043

4,116

4,186

4,251

4,313

4,372

20 & Over

4,427

[~~(1) $80; or~~

[~~(2)~~ ~~the maximum uniform amount that, when combined with any~~

~~resulting increases in the amount of contributions made by the~~

~~district for social security coverage for the specified employees~~

~~or by the district on behalf of the specified employees under~~

~~Section 825.405, Government Code, may be provided using an amount~~

~~equal to the product of $60 multiplied by the number of students in~~

~~weighted average daily attendance in the school during the~~

~~2009-2010 school year.~~]

(i) Not later than January 1, 2013, the commissioner shall

submit to the governor, the lieutenant governor, the speaker of the

house of representatives, and the presiding officer of each

legislative standing committee with primary jurisdiction over

primary and secondary education a written report that evaluates and

provides recommendations regarding the salary schedule. This

subsection expires September 1, 2013.

SECTION 75.04. Effective September 1, 2017, Section 21.402,

Education Code, is amended by amending Subsection (a) and adding

Subsection (e-1) to read as follows:

(a) Except as provided by Subsection (d), (e-1) [~~(e)~~], or

(f), a school district must pay each classroom teacher, full-time

librarian, full-time counselor certified under Subchapter B, or

full-time school nurse not less than the minimum monthly salary,

based on the employee's level of experience in addition to other

factors, as determined by commissioner rule, determined by the

following formula:

MS = SF x FS

where:

"MS" is the minimum monthly salary;

"SF" is the applicable salary factor specified by Subsection

(c); and

"FS" is the amount, as determined by the commissioner under

Subsection (b), of the basic allotment as provided by Section

42.101(a) or (b) for a school district with a maintenance and

operation tax rate at least equal to the state maximum compressed

tax rate, as defined by Section 42.101(a) [~~state and local funds per~~

~~weighted student, including funds provided under Section 42.2516,~~

~~available to a district eligible to receive state assistance under~~

~~Section 42.302 with a maintenance and operations tax rate per $100~~

~~of taxable value equal to the product of the state compression~~

~~percentage, as determined under Section 42.2516, multiplied by~~

~~$1.50, except that the amount of state and local funds per weighted~~

~~student does not include the amount attributable to the increase in~~

~~the guaranteed level made by Chapter 1187, Acts of the 77th~~

~~Legislature, Regular Session 2001~~].

(e-1) If the minimum monthly salary determined under

Subsection (a) for a particular level of experience is less than the

minimum monthly salary for that level of experience in the

preceding year, the minimum monthly salary is the minimum monthly

salary for the preceding year.

SECTION 75.05. Subsection (a), Section 41.002, Education

Code, is amended to read as follows:

(a) A school district may not have a wealth per student that

exceeds:

(1) the wealth per student that generates the amount

of maintenance and operations tax revenue per weighted student

available to a district with maintenance and operations tax revenue

per cent of tax effort equal to the maximum amount provided per cent

under Section 42.101(a) or (b) [~~42.101~~], for the district's

maintenance and operations tax effort equal to or less than the rate

equal to the product of the state compression percentage, as

determined under Section 42.2516, multiplied by the maintenance and

operations tax rate adopted by the district for the 2005 tax year;

(2) the wealth per student that generates the amount

of maintenance and operations tax revenue per weighted student

available to the Austin Independent School District, as determined

by the commissioner in cooperation with the Legislative Budget

Board, for the first six cents by which the district's maintenance

and operations tax rate exceeds the rate equal to the product of the

state compression percentage, as determined under Section 42.2516,

multiplied by the maintenance and operations tax rate adopted by

the district for the 2005 tax year, subject to Section 41.093(b-1);

(3) $319,500, for the district's maintenance and

operations tax effort that exceeds the first six cents by which the

district's maintenance and operations tax effort exceeds the rate

equal to the product of the state compression percentage, as

determined under Section 42.2516, multiplied by the maintenance and

operations tax rate adopted by the district for the 2005 tax year.

SECTION 75.06. The heading to Section 42.101, Education

Code, is amended to read as follows:

Sec. 42.101. BASIC AND REGULAR PROGRAM ALLOTMENTS

[~~ALLOTMENT~~].

SECTION 75.07. Section 42.101, Education Code, is amended

by amending Subsections (a) and (b) and adding Subsections (c) and

(c-1) to read as follows:

(a) The basic [~~For each student in average daily attendance,~~

~~not including the time students spend each day in special education~~

~~programs in an instructional arrangement other than mainstream or~~

~~career and technology education programs, for which an additional~~

~~allotment is made under Subchapter C, a district is entitled to an~~]

allotment is an amount equal to the lesser of $4,765 or the amount

that results from the following formula:

A = $4,765 X (DCR/MCR)

where:

"A" is the resulting amount for [~~allotment to which~~] a

district [~~is entitled~~];

"DCR" is the district's compressed tax rate, which is the

product of the state compression percentage, as determined under

Section 42.2516, multiplied by the maintenance and operations tax

rate adopted by the district for the 2005 tax year; and

"MCR" is the state maximum compressed tax rate, which is the

product of the state compression percentage, as determined under

Section 42.2516, multiplied by $1.50.

(b) A greater amount for any school year for the basic

allotment under Subsection (a) may be provided by appropriation.

allotment equal to the amount that results from the following

formula:

RPA = ADA X AA X RPAF

where:

"RPA" is the regular program allotment to which the district

is entitled;

"ADA" is the number of students in average daily attendance

in a district, not including the time students spend each day in

special education programs in an instructional arrangement other

than mainstream or career and technology education programs, for

which an additional allotment is made under Subchapter C;

"AA" is the district's adjusted basic allotment, as

determined under Section 42.102 and, if applicable, as further

adjusted under Section 42.103; and

"RPAF" is the regular program adjustment factor, which is an

amount established by appropriation.

(c-1) Notwithstanding Subsection (c), the regular program

adjustment factor ("RPAF") is 0.9239 for the 2011-2012 school year

and 0.98 for the 2012-2013 school year. This subsection expires

September 1, 2013.

SECTION 75.08. Section 42.105, Education Code, is amended

to read as follows:

Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding

Sections 42.101, 42.102, and 42.103, a school district that has

fewer than 130 students in average daily attendance shall be

provided a regular program [~~an adjusted basic~~] allotment on the

basis of 130 students in average daily attendance if it offers a

kindergarten through grade 12 program and has preceding or current

year's average daily attendance of at least 90 students or is 30

miles or more by bus route from the nearest high school district. A

district offering a kindergarten through grade 8 program whose

preceding or current year's average daily attendance was at least

50 students or which is 30 miles or more by bus route from the

nearest high school district shall be provided a regular program

[~~an adjusted basic~~] allotment on the basis of 75 students in average

daily attendance. An average daily attendance of 60 students shall

be the basis of providing the regular program [~~adjusted basic~~]

allotment if a district offers a kindergarten through grade 6

program and has preceding or current year's average daily

attendance of at least 40 students or is 30 miles or more by bus

route from the nearest high school district.

SECTION 75.09. Subsection (a), Section 42.251, Education

Code, is amended to read as follows:

(a) The sum of the regular program [~~basic~~] allotment under

Subchapter B and the special allotments under Subchapter C,

computed in accordance with this chapter, constitute the tier one

allotments. The sum of the tier one allotments and the guaranteed

yield allotments under Subchapter F, computed in accordance with

this chapter, constitute the total cost of the Foundation School

Program.

SECTION 75.10. Subchapter E, Chapter 42, Education Code, is

amended by adding Section 42.2514 to read as follows:

Sec. 42.2514. ADDITIONAL STATE AID FOR TAX INCREMENT

FINANCING PAYMENTS. For each school year, a school district,

including a school district that is otherwise ineligible for state

aid under this chapter, is entitled to state aid in an amount equal

to the amount the district is required to pay into the tax increment

fund for a reinvestment zone under Section 311.013(n), Tax Code.

SECTION 75.11. Effective September 1, 2011, Section

42.2516, Education Code, is amended by amending Subsections (a),

(b), (d), and (f-2) and adding Subsection (i) to read as follows:

(a) In this title [~~section~~], "state compression percentage"

means the percentage[~~, as determined by the commissioner,~~] of a

school district's adopted maintenance and operations tax rate for

the 2005 tax year that serves as the basis for state funding [~~for~~

~~tax rate reduction under this section~~]. If the state compression

percentage is not established by appropriation for a school year,

the [~~The~~] commissioner shall determine the state compression

percentage for each school year based on the percentage by which a

district is able to reduce the district's maintenance and

operations tax rate for that year, as compared to the district's

adopted maintenance and operations tax rate for the 2005 tax year,

as a result of state funds appropriated for distribution under this

section for that year from the property tax relief fund established

under Section 403.109, Government Code, or from another funding

source available for school district property tax relief.

(b) Notwithstanding any other provision of this title, a

school district that imposes a maintenance and operations tax at a

rate at least equal to the product of the state compression

percentage multiplied by the maintenance and operations tax rate

adopted by the district for the 2005 tax year is entitled to at

least the amount of state revenue necessary to provide the district

with the sum of:

(1) the percentage specified by Subsection (i) of the

amount, as calculated under Subsection (e), [~~the amount~~] of state

and local revenue per student in weighted average daily attendance

for maintenance and operations that the district would have

received during the 2009-2010 school year under Chapter 41 and this

chapter, as those chapters existed on January 1, 2009, at a

maintenance and operations tax rate equal to the product of the

state compression percentage for that year multiplied by the

maintenance and operations tax rate adopted by the district for the

2005 tax year;

(2) the percentage specified by Subsection (i) of an

amount equal to the product of $120 multiplied by the number of

students in weighted average daily attendance in the district; and

(3) [~~an amount equal to the amount the district is~~

~~required to pay into the tax increment fund for a reinvestment zone~~

~~under Section 311.013(n), Tax Code, in the current tax year; and~~

[~~(4)~~] any amount to which the district is entitled

under Section 42.106.

(d) In determining the amount to which a district is

entitled under Subsection (b)(1), the commissioner shall:

(1) include the percentage specified by Subsection (i)

of any amounts received by the district during the 2008-2009 school

year under Rider 86, page III-23, Chapter 1428 (H.B. 1), Acts of the

80th Legislature, Regular Session, 2007 (the General

Appropriations Act); and

(2) for a school district that paid tuition under

Section 25.039 during the 2008-2009 school year, reduce the amount

to which the district is entitled by the amount of tuition paid

during that school year.

(f-2) The rules adopted by the commissioner under

Subsection (f-1) must:

(1) require the commissioner to determine, as if this

section did not exist, the effect under Chapter 41 and this chapter

of a school district's action described by Subsection (f-1)(1),

(2), (3), or (4) on the total state revenue to which the district

would be entitled or the cost to the district of purchasing

sufficient attendance credits to reduce the district's wealth per

student to the equalized wealth level; and

(2) require an increase or reduction in the amount of

state revenue to which a school district is entitled under

Subsection (b)(1) [~~(b)~~] that is substantially equivalent to any

change in total state revenue or the cost of purchasing attendance

credits that would apply to the district if this section did not

exist.

(i) The percentage to be applied for purposes of Subsections

(b)(1) and (2) and Subsection (d)(1) is 100.00 percent for the

2011-2012 school year and 92.35 percent for the 2012-2013 school

year. For the 2013-2014 school year and each subsequent school

year, the legislature by appropriation shall establish the

percentage reduction to be applied.

SECTION 75.12. Effective September 1, 2017, the heading to

Section 42.2516, Education Code, is amended to read as follows:

Sec. 42.2516. STATE COMPRESSION PERCENTAGE [~~ADDITIONAL~~

~~STATE AID FOR TAX REDUCTION~~].

SECTION 75.13. Effective September 1, 2017, Subsection (a),