82R22238 JJT/KLA/KKA/MXM/TJS-D

By: Duncan S.B. No. 1811

(Pitts)

Substitute the following for S.B. No. 1811: No.

A BILL TO BE ENTITLED

AN ACT

relating to certain state fiscal matters; providing penalties.

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

ARTICLE 1. REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES

GENERALLY

SECTION 1.01. This article applies to each state agency, as that term is defined by Section 317.001, Government Code.

SECTION 1.02. Notwithstanding any other statute of this state, each state agency to which this article applies is authorized to reduce or recover expenditures by:

(1) consolidating any reports or publications the agency is required to make and filing or delivering any of those reports or publications exclusively by electronic means;

(2) extending the effective period of any license, permit, or registration the agency grants or administers;

(3) entering into a contract with another governmental entity or with a private vendor to carry out any of the agency's duties;

(4) modifying eligibility requirements for, the processes used to determine eligibility for, and the services provided to persons who receive benefits under any law the agency administers, including benefits and services required by federal law, to ensure that those benefits are received by the most deserving persons consistent with the purposes for which the benefits are provided;

(5) providing that any communication between the agency and another person and any document required to be delivered to or by the agency, including any application, notice, billing statement, receipt, or certificate, may be made or delivered by e-mail or through the Internet; and

(6) adopting and collecting fees or charges to cover any costs the agency incurs in performing its lawful functions.

ARTICLE 2. FISCAL MATTERS REGARDING REGULATION AND TAXATION

OF INSURERS

SECTION 2.01. 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 2.02. Sections 221.006, 222.007, 223.009, 401.151(e), and 401.154, Insurance Code, are repealed.

SECTION 2.03. 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 September 1, 2011.

ARTICLE 3. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS

SECTION 3.01. Subchapter B, Chapter 31, Human Resources Code, is amended by adding Section 31.0326 to read as follows:

Sec. 31.0326. VERIFICATION OF IDENTITY AND PREVENTION OF DUPLICATE PARTICIPATION. The Health and Human Services Commission shall use appropriate technology to:

(1) confirm the identity of applicants for benefits under the financial assistance program; and

(2) prevent duplicate participation in the program by a person.

SECTION 3.02. Chapter 33, Human Resources Code, is amended by adding Section 33.0231 to read as follows:

Sec. 33.0231. VERIFICATION OF IDENTITY AND PREVENTION OF DUPLICATE PARTICIPATION. The department shall use appropriate technology to:

(1) confirm the identity of applicants for benefits under the supplemental nutrition assistance program; and

(2) prevent duplicate participation in the program by a person.

SECTION 3.03. Section 31.0325, Human Resources Code, is repealed.

SECTION 3.04. If before implementing Section 31.0326 or 33.0231, Human Resources Code, as added by this article, a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that law, the agency shall request the waiver or authorization and may delay implementing that law until the waiver or authorization is granted.

SECTION 3.05. 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 September 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;

(C) the location of each machine, including the:

(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].

(c) A record required under Subsection (a) must be available 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 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.

(c) A taxpayer shall produce contemporaneous records and supporting documentation appropriate to the tax or fee for the period 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 include invoices, vouchers, checks, shipping records, contracts, and other written documentation reflecting legal relationships and taxes collected or paid.

(d) Summary records submitted by the taxpayer, including accounting journals and ledgers, without supporting contemporaneous records and documentation for the period in question are not sufficient to substantiate and enable verification of the taxpayer's claim regarding the amount of tax, penalty, or interest that may be assessed, collected, or refunded.

(e) 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 period in question to substantiate and enable verification of a taxpayer's claim relating to the amount of the tax, penalty, or interest that is to be assessed, collected, or 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 period in question to substantiate and enable verification of a taxpayer's claim relating to the amount of the tax, penalty, or interest that is to be assessed, collected, or refunded, as required by Section 111.0041.

SECTION 4.05. Section 151.025(b), 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. Section 154.209(a), 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. Section 155.110(a), 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 September 1, 2011.

ARTICLE 5. COLLECTION IMPROVEMENT PROGRAM

SECTION 5.01. Articles 103.0033(f), (h), (i), and (j), Code of Criminal Procedure, are amended to read as follows:

(f) The [comptroller, in cooperation with the] office[,] shall develop a methodology for determining the collection rate of counties and municipalities described by Subsection (e) before implementation of a program. The office [comptroller] shall determine the rate for each county and municipality not later than the first anniversary of the county's or municipality's adoption of a program.

(h) The office[, in consultation with the comptroller,] may:

(1) use case dispositions, population, revenue data, or other appropriate measures to develop a prioritized implementation schedule for programs; and

(2) determine whether it is not cost-effective to implement a program in a county or municipality and grant a waiver to the county or municipality.

(i) Each county and municipality shall at least annually submit to the office [and the comptroller] a written report that includes updated information regarding the program, as determined by the office [in cooperation with the comptroller]. The report must be in a form approved by the office [in cooperation with the comptroller].

(j) The office [comptroller] shall periodically audit counties and municipalities to verify information reported under Subsection (i) and confirm that the county or municipality is conforming with requirements relating to the program. [The comptroller shall consult with the office in determining how frequently to conduct audits under this section.]

SECTION 5.02. Section 133.058(e), Local Government Code, is amended to read as follows:

(e) A municipality or county may not retain a service fee if, during an audit under [Section 133.059 of this code or] Article 103.0033(j), Code of Criminal Procedure, the Office of Court Administration of the Texas Judicial System [comptroller] determines that the municipality or county is not in compliance with Article 103.0033, Code of Criminal Procedure. The municipality or county may continue to retain a service fee under this section on receipt of a written confirmation from the Office of Court Administration of the Texas Judicial System [comptroller] that the municipality or county is in compliance with Article 103.0033, Code of Criminal Procedure.

SECTION 5.03. Section 133.103(c-1), Local Government Code, is amended to read as follows:

(c-1) The treasurer shall send 100 percent of the fees collected under this section to the comptroller if, during an audit under [Section 133.059 of this code or] Article 103.0033(j), Code of Criminal Procedure, the Office of Court Administration of the Texas Judicial System [comptroller] determines that the municipality or county is not in compliance with Article 103.0033, Code of Criminal Procedure. The municipality or county shall continue to dispose of fees as otherwise provided by this section on receipt of a written confirmation from the Office of Court Administration of the Texas Judicial System [comptroller] that the municipality or county is in compliance with Article 103.0033, Code of Criminal Procedure.

SECTION 5.04. This article takes effect September 1, 2011.

ARTICLE 6. PENALTIES FOR FAILURE TO REPORT OR REMIT

CERTAIN TAXES OR FEES

SECTION 6.01. Section 111.00455(b), 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;

(C) a certificate of authority;

(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 6.02. Section 151.433(f), Tax Code, is amended to read as follows:

(f) If a person fails to file a report required by this section or fails to file a complete report, the comptroller may suspend or cancel one or more permits issued to the person under Section 151.203 and may impose a civil or criminal penalty, or both, under Section 151.703(d) [151.7031] or 151.709.

SECTION 6.03. 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 6.04. 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 6.05. 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 6.06. Section 156.202, Tax Code, is amended by amending Subsection (c) and adding Subsection (d) to read as follows:

(c) The minimum penalty under Subsections (a) and (b) [this 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 6.07. Section 162.401, Tax Code, is amended by adding Subsection (c) to read as follows:

(c) 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 6.08. Section 171.362, Tax Code, is amended by amending Subsection (c) and adding Subsection (f) to read as follows:

(c) The minimum penalty under Subsections (a) and (b) [this 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 6.09. 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.

(c) A delinquent tax draws interest beginning 60 days from 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 6.10. Section 771.0712, Health and Safety Code, is amended by adding Subsections (c) and (d) to read as follows:

(c) A seller who fails to file a report or remit a fee 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 6.11. Section 151.7031, Tax Code, is repealed.

SECTION 6.12. 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 6.13. 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 September 1, 2011.

ARTICLE 7. CERTAIN FOUNDATION SCHOOL PROGRAM PAYMENTS

SECTION 7.01. Sections 42.259(c), (d), and (f), Education Code, are amended to read as follows:

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

(1) 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 7.02. Section 466.355(c), Government Code, is repealed.

SECTION 7.03. 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 article. 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.

SECTION 7.04. This article takes effect September 1, 2011.

ARTICLE 8. UNCLAIMED PROPERTY

SECTION 8.01. Section 74.101(a), Property Code, is amended to read as follows:

(a) Each holder who on June 1 [30] holds property that is presumed abandoned under Chapter 72, 73, or 75 of this code or under Chapter 154, Finance Code, shall file a report of that property on or before the following July [November] 1. The comptroller may require the report to be in a particular format, including a format that can be read by a computer.

SECTION 8.02. Section 74.1011(a), Property Code, is amended to read as follows:

(a) Except as provided by Subsection (b), a holder who on June 1 [30] holds property valued at more than $250 that is presumed abandoned under Chapter 72, 73, or 75 of this code or Chapter 154, Finance Code, shall, on or before the preceding May [following August] 1, mail to the last known address of the known owner written notice stating that:

(1) the holder is holding the property; and

(2) the holder may be required to deliver the property to the comptroller on or before July [November] 1 if the property is not claimed.

SECTION 8.03. Sections 74.301(a) and (c), Property Code, are amended to read as follows:

(a) Except as provided by Subsection (c), each holder who on June 1 [30] holds property that is presumed abandoned under Chapter 72, 73, or 75 shall deliver the property to the comptroller on or before the following July [November] 1 accompanied by the report required to be filed under Section 74.101.

(c) If the property subject to delivery under Subsection (a) is the contents of a safe deposit box, the comptroller may instruct a holder to deliver the property on a specified date before July [November] 1 of the following year.

SECTION 8.04. Section 74.708, Property Code, is amended to read as follows:

Sec. 74.708. PROPERTY HELD IN TRUST. A holder who on June 1 [30] holds property presumed abandoned under Chapters 72-75 holds the property in trust for the benefit of the state on behalf of the missing owner and is liable to the state for the full value of the property, plus any accrued interest and penalty. A holder is not required by this section to segregate or establish trust accounts for the property provided the property is timely delivered to the comptroller in accordance with Section 74.301.

SECTION 8.05. (a) Except as provided by Subsection (b) of this section, this article takes effect September 1, 2011.

(b) Sections 74.101(a), 74.1011(a), 74.301(a) and (c), and 74.708, Property Code, as amended by this article, take effect January 1, 2013.

ARTICLE 9. FISCAL MATTERS RELATED TO VOTER REGISTRATION

SECTION 9.01. Sections 18.065(b), (c), and (d), 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].

(c) On determining that a noncomplying registrar has 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 9.02. Section 19.001(a), 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 9.03. The heading to Section 19.002, Election Code, is amended to read as follows:

Sec. 19.002. PAYMENTS [ISSUANCE OF WARRANTS BY COMPTROLLER].

SECTION 9.04. Sections 19.002(b) and (d), Election Code, are 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.

(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, 18.042, or 18.065 or with rules implementing the registration service program.

SECTION 9.05. 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 9.06. Section 19.0025(a), 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 9.07. Section 19.002(c), Election Code, is repealed.

SECTION 9.08. This article takes effect September 1, 2011.

ARTICLE 10. CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF

PUBLIC ACCOUNTS

SECTION 10.01. Section 403.0551(d), 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 10.02. Section 404.022(h), 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 10.03. Section 411.109(a), Government Code, is amended to read as follows:

(a) The comptroller is entitled to obtain from the department criminal history record information maintained by the department that the comptroller believes is necessary for the enforcement or administration of Chapter 151, 152, [153,] 154, [or] 155, or 162, Tax Code, including criminal history record information that relates to a person who is:

(1) an applicant for a permit under any of those chapters;

(2) a permit holder under any of those chapters;

(3) an officer, director, stockholder owning 10 percent or more of the outstanding stock, partner, owner, or managing employee of an applicant or permit holder under any of those chapters that is a corporation, association, joint venture, syndicate, partnership, or proprietorship;

(4) believed to have violated any of those chapters; or

(5) being considered by the comptroller for employment as a peace officer.

SECTION 10.04. Section 403.0551(d), 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 11. PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND

OTHER MATERIALS

SECTION 11.01. Section 61.539(c), Education Code, is amended to read as follows:

(c) As soon as practicable after each state fiscal year, the 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 11.02. Section 5.05(c), Tax Code, is amended to read as follows:

(c) The comptroller shall electronically publish all 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 11.03. 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 11.04. 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 11.05. The following are repealed:

(1) Sections 51.607, 403.030, and 552.143(e), Government Code; and

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

ARTICLE 12. SALES AND USE TAX HOLIDAY

SECTION 12.01. The heading to Section 151.326, Tax Code, is amended to read as follows:

Sec. 151.326. CLOTHING AND FOOTWEAR FOR LIMITED PERIOD UNDER CERTAIN CIRCUMSTANCES.

SECTION 12.02. Section 151.326, Tax Code, is amended by amending Subsection (a) and adding Subsections (c), (d), (e), and (f) to read as follows:

(a) Subject to Subsection (e), the [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 in August and ending at 12 midnight on the following Sunday.

(c) On or after January 1, but not later than January 31, of each odd-numbered year, the comptroller shall determine the following:

(1) whether a deficit exists in the current state fiscal biennium in the general revenue-related funds used for certification; and

(2) whether general revenue-related funds used for certification and estimated to be available for the succeeding state fiscal biennium are less than the general revenue-related funds used for certification and available for the current state fiscal biennium.

(d) The comptroller shall base the determinations required by Subsection (c) on the statement required by Section 49a, Article III, Texas Constitution, and submitted to the legislature convening in regular session the year the determination is made and shall assume that the exemptions provided by this section and Section 151.327 apply.

(e) The exemptions provided by this section do not apply:

(1) in the state fiscal year in which the comptroller makes the determination required by Subsection (c) if the comptroller determines that the condition specified by Subsection (c)(1) exists; and

(2) in the state fiscal year following the year in which the comptroller makes the determination required by Subsection (c) if the comptroller determines that the condition specified by Subsection (c)(2) exists.

(f) Not later than February 15 of each odd-numbered year, the comptroller shall provide notice of whether the exemptions provided by this section apply during that state fiscal year and the subsequent state fiscal year. The comptroller shall provide the notice to each sales tax permit holder and shall clearly post the information on the comptroller's Internet website.

SECTION 12.03. The heading to Section 151.327, Tax Code, is amended to read as follows:

Sec. 151.327. SCHOOL SUPPLIES AND SCHOOL BACKPACKS BEFORE START OF SCHOOL UNDER CERTAIN CIRCUMSTANCES.

SECTION 12.04. Section 151.327, Tax Code, is amended by amending Subsection (a-1) and adding Subsection (c) to read as follows:

(a-1) Subject to Subsection (c), the [The] sale or storage, use, or other consumption of a school supply or a school backpack is exempted from the taxes imposed by this chapter if the school supply or backpack is purchased:

(1) for use by a student in a public or private elementary or secondary school;

(2) during the period described by Section 151.326(a)(2); and

(3) for a sales price of less than $100.

(c) An exemption under this section does not apply to the sale or storage, use, or other consumption of a taxable item that occurs during a state fiscal year during which the exemptions provided by Section 151.326 do not apply.

SECTION 12.05. The comptroller of public accounts shall make the initial determinations required by Section 151.326(c), Tax Code, as added by this article, not later than January 31, 2013.

SECTION 12.06. Notwithstanding Sections 151.326 and 151.327, Tax Code, as amended by this article, the sale or storage, use, or other consumption of a taxable item is not exempt from the taxes imposed by Chapter 151, Tax Code, under those sections if the sale occurs:

(1) during the state fiscal year ending August 31, 2011, if this Act receives enough votes to take effect immediately in accordance with Section 12.07 of this article; or

(2) during the state fiscal year ending August 31, 2012.

SECTION 12.07. 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 September 1, 2011.

ARTICLE 13. SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE

SECTION 13.01. Section 101.053(b), 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

(C) on which premium tax, if applicable, is paid 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

(C) both the individuals and entities described 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 13.02. 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 that controls, is controlled by, or is under common control with the insured.

(2) "Affiliated group" means a group of entities whose members are 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 resides, 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 resides or maintains its 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;

(C) [(2)] a membership fee;

(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 13.03. 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 13.04. 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 the Nonadmitted and Reinsurance Reform Act of 2010, contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. No. 111-203), 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.

(c) If a surplus lines insurance policy covers risks or 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 13.05. 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 13.06. 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 13.07. 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 that controls, is controlled by, or is under common control with the insured.

(2) "Affiliated group" means a group of entities whose members are 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 resides, 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 resides or maintains its 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;

(C) [(2)] a membership fee; [or]

(D) a registration fee;

(E) an assessment;

(F) [(3)] dues; and

(G) any other compensation given in consideration for insurance.

SECTION 13.08. 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 13.09. 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 13.10. 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 13.11. The following provisions are repealed:

(1) Sections 225.004(d) and (d-1), Insurance Code; and

(2) Sections 226.053(b-1) and (c), Insurance Code.

SECTION 13.12. 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 11, 2011. A policy that is delivered, issued for delivery, or renewed before July 11, 2011, is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 13.13. 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 September 1, 2011.

ARTICLE 14. OBESITY INTERVENTION AND PREVENTION PROGRAM

SECTION 14.01. Chapter 403, Government Code, is amended by adding Subchapter Q to read as follows:

SUBCHAPTER Q. OBESITY INTERVENTION AND PREVENTION PROGRAM

Sec. 403.451. PURPOSE. The purpose of this subchapter is to:

(1) address the economic costs associated with obesity in this state, including increased medical costs and loss of economic productivity;

(2) promote obesity intervention and obesity prevention awareness among school-age children;

(3) address the disproportionate rate of obesity in low-income populations; and

(4) assist public schools and school districts to provide obesity intervention and obesity prevention awareness programs, obesity intervention and prevention programs, and related training.

Sec. 403.452. TEXAS OBESITY INTERVENTION AND PREVENTION GRANT PROGRAM AND STUDY. (a) The comptroller shall establish and administer the obesity intervention and prevention grant program and study to:

(1) award grants for obesity intervention and prevention and related programs as provided by this subchapter; and

(2) study obesity in this state as provided by this subchapter.

(b) The program and study shall be funded with money appropriated by the legislature for the purposes of this subchapter.

(c) The comptroller may solicit and accept gifts, grants, and donations for the purposes of this subchapter.

Sec. 403.453. GRANT PROGRAM. (a) The comptroller shall establish and administer the obesity intervention and prevention grant program to award grants to public school programs and other entities that provide obesity intervention or prevention, nutrition education, and other educational programs to combat obesity in this state.

(b) In awarding grants under this section, the comptroller shall identify and give preference to geographic areas of this state where student populations have been identified, using the geographic information system map created under Section 403.454, as being at high risk for obesity.

(c) In awarding grants under this section, the comptroller shall consider awarding grants only to programs that obtain matching funds. Matching funds under this section, if required, may be obtained from any source available to a public school or other entity, including in-kind contributions, community or foundation grants, and individual contributions.

(d) The comptroller shall award grants on a competitive basis.

Sec. 403.454. COMPILATION OF DATA CONCERNING OBESITY RISK; GEOGRAPHIC INFORMATION SYSTEM. (a) The comptroller shall cooperate with the Texas Education Agency, the Department of State Health Services, or any other state agency as necessary to compile the data required to identify areas in which children are at risk for obesity.

(b) The Texas Education Agency shall provide the physical fitness assessment results compiled under Section 38.103, Education Code, to the comptroller. The comptroller shall use the fitness assessment data to produce an interactive geographic information system map of this state that shows the compiled physical fitness assessment results for each school district in the state and identifies areas in which students are at risk for obesity.

(c) In creating the interactive map under Subsection (b), the comptroller and each state agency involved shall comply with state and federal laws, rules, and regulations that protect the confidentiality of student information and shall protect confidential information.

Sec. 403.455. REPORT OF PROGRAM RESULTS. (a) A public school or other entity that is awarded a grant under Section 403.453 for a program shall collect data regarding the effectiveness of the program and report that information to the comptroller. The comptroller shall by rule determine the form and content of the reporting requirements.

(b) In collecting the data required by this section, a grantee shall protect the confidentiality of students and student information and shall comply with applicable state and federal laws, rules, and regulations that protect the confidentiality of student information.

Sec. 403.456. OBESITY AND WELLNESS INFORMATION PORTAL. The comptroller shall establish and maintain an obesity and wellness information portal on the comptroller's Internet website to provide information to the public regarding obesity and wellness, including the economic impact obesity has on this state.

Sec. 403.457. ADDITIONAL REPORTING AND MAPPING SYSTEMS. The comptroller may establish obesity reporting and mapping systems in addition to the systems described by this subchapter as necessary to implement this subchapter.

Sec. 403.458. REPORT TO LEGISLATURE. (a) The comptroller shall submit a report to the legislature not later than January 1 of each odd-numbered year regarding the effectiveness of the grant program.

(b) The comptroller may collect information regarding other state and federal obesity prevention initiatives in this state and include that information in the report.

Sec. 403.459. RULES. The comptroller shall adopt rules as necessary for the administration of this subchapter.

ARTICLE 15. EFFECTIVE DATE

SECTION 15.01. Except as otherwise provided by this Act, this Act takes effect September 1, 2011.