82(R) SR 1260 - Enrolled version



	By: Duncan	S.R. No. 1260

SENATE RESOLUTION

BE IT RESOLVED by the Senate of the State of Texas, 82nd

Legislature, Regular Session, 2011, That Senate Rule 12.03 be

suspended in part as provided by Senate Rule 12.08 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) Senate Rule 12.03(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.

procurement 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 of

public accounts engaging a consultant.

(2) Senate Rules 12.03(3) and (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, to read 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:

of 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) Senate Rule 12.03(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.

a 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) Senate Rule 12.03(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) Senate Rule 12.03(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.

(5) Senate Rule 12.03(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 of public accounts in the identification of persons

entitled to unclaimed property, to be filed every fifth year

instead of annually.

(6) Senate Rule 12.03(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.

(7) Senate Rule 12.03(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.

(8) Senate Rule 12.03(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.

(9) Senate Rule 12.03(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.

(10) Senate Rule 12.03(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.

(11) Senate Rule 12.03(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.

(12) Senate Rule 12.03(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.

(13) Senate Rule 12.03(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 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.

(14) Senate Rule 12.03(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.

(15) Senate Rule 12.03(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.

tender 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 (c) [~~of this section~~], all money received under and by

virtue of 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.

tender 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.

(16) Senate Rule 12.03(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.

(17) Senate Rule 12.03(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 recovery of

costs associated with the program incurred by an interscholastic

athletic league.

(18) Senate Rule 12.03(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); or

(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), Section 42.2516, Education Code, is amended 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.

SECTION 75.14. Effective September 1, 2011, Subsection

(a), Section 42.25161, Education Code, is amended to read as

follows:

(a) The commissioner shall provide South Texas

Independent School District with the amount of state aid

necessary to ensure that the district receives an amount of state

and local revenue per student in weighted average daily

attendance that is at least the percentage specified by Section

42.2516(i) of $120 greater than the amount the district would

have received per student in weighted average daily attendance

during the 2009-2010 school year under this chapter, as it

existed on January 1, 2009, at a maintenance and operations tax

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, provided that the district

imposes a maintenance and operations tax at that rate.

SECTION 75.15. Subchapter E, Chapter 42, Education Code,

is amended by adding Section 42.2525 to read as follows:

Sec. 42.2525. ADJUSTMENTS FOR CERTAIN DEPARTMENT OF

DEFENSE DISTRICTS. The commissioner is granted the authority to

ensure that Department of Defense school districts do not receive

more than an eight percent reduction should the federal

government reduce appropriations to those schools.

SECTION 75.16. Effective September 1, 2011, Subsections

(h) and (i), Section 42.253, Education Code, are amended to read

as follows:

(h) If the amount appropriated for the Foundation School

Program for the second year of a state fiscal biennium is less

than the amount to which school districts are entitled for that

year, the commissioner shall certify the amount of the difference

to the Legislative Budget Board not later than January 1 of the

second year of the state fiscal biennium. The Legislative Budget

Board shall propose to the legislature that the certified amount

be transferred to the foundation school fund from the economic

stabilization fund and appropriated for the purpose of increases

in allocations under this subsection. If the legislature fails

during the regular session to enact the proposed transfer and

appropriation and there are not funds available under Subsection

(j), the commissioner shall adjust [~~reduce~~] the total amounts due

to each school district under this chapter and the total amounts

necessary for each school district to comply with the

requirements of Chapter 41 [~~amount of state funds allocated to~~

~~each district~~] by an amount determined by applying to each

district, including a district receiving funds under Section

42.2516, the same percentage adjustment so that the total amount

of the adjustment to all districts [~~a method under which the~~

~~application of the same number of cents of increase in tax rate in~~

~~all districts applied to the taxable value of property of each~~

~~district, as determined under Subchapter M, Chapter 403,~~

~~Government Code,~~] results in an amount [~~a total levy~~] equal to

the total adjustment necessary. A school district is not

entitled to reimbursement in a subsequent fiscal year of the

amount resulting from the adjustment authorized by this

subsection [~~reduction. The following fiscal year, a district's~~

~~entitlement under this section is increased by an amount equal to~~

~~the reduction made under this subsection~~].

(i) Not later than March 1 each year, the commissioner

shall determine the actual amount of state funds to which each

school district is entitled under the allocation formulas in this

chapter for the current school year, as adjusted in accordance

with Subsection (h), if applicable, and shall compare that amount

with the amount of the warrants issued to each district for that

year. If the amount of the warrants differs from the amount to

which a district is entitled because of variations in the

district's tax rate, student enrollment, or taxable value of

property, the commissioner shall adjust the district's

entitlement for the next fiscal year accordingly.

SECTION 75.17. Effective September 1, 2017, Subsection

(h), Section 42.253, Education Code, is amended to read as