82d Legislature SB 1811 From Committee

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CONFERENCE
COMMITTEE REPORT
3 rd Printing
S.B. No. 1811
A BILL TO BE ENTITLED
1 ~A~
2 relating to certain state fiscal matters; providing penalties.

3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
4 ARTICLE 1. FOUNDATION SCHOOL PROGRAM PAYMENTS
5 SECTION 1.01'. Subsections (cl, (d), and (fl, Section
6 42.259, Education Code, are amended to read as follows:
7 (c) Payments from the foundation school fund to each
8 category 2 school distr ict shall be made as follows:

9 (1) 22 percent of the yearly entitlement of the
10 district shall be paid in an installment to be made on or before the
11 25th day of September of a fiscal year;
13 distr ict shall be paid in an installment to be made on or befor e the
14 25th day of October;
15 (3) 9.5 percent of the yearly entitlement of the
17 25th day of November;
18 (4) 7.5 percent of the yearly entitlement of the
19 distr ict shall be paid in an installment to be made on or before the
20 25th day of Apr il;
21 (5) five percent of the yearly entitlement of the
23 25th day of May;
1
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S.B. No. 1811

2 25th day of June;

5 25th day of July; and
7 district shall be paid in an installment to be made after the 5th
8 day of September and not later than the 10th day of September of th~
9 calendar year following the calendar year of the payment made unde ~
10 Subdivision (1) faR ar l3etare ti:le ;lHi:l Bay at A\Hj~6tJ.
11 (d) Payments from the foundation school fund to eac·i1

12 category 3 school distr ict shall be made as follows:
15 25th day of September of a fiscal year;
18 25th day of October; and
19 (3) 20 percent of· the yearly entitlement of th'e
20 district shall be paid in an installment to be made after the 5til
21 day of September and not later than the 10th day of September of th,e
22 calendar year following the calendar year of the payment made under
23 Subdivision (1) faR ar seiere ti:le ;l!itfi Bay at A~'3~6t].
24 (f) Except as provided by Subsection (c) (8) or (d) (3), an'C

25 [ARy] previously unpaid additional funds from prior fiscal year:,
26 owed to a distr ict shall be paid to the distr ict together with th,!
27 September payment of the current fiscal year entitlement.
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S.B. No. 1811

1 SECTION 1.02. The changes'made by this article to Section
2 42.259, Education Code, apply only to a payment from the foundation
3 school fund that is made on or after the effective date of this Act.
4 A payment to a school district from the foundation school fund that
5 is made before that date is governed by Section 42.259, Education
6 Code, as it existed before amendment by this article, and the former
7 law is continued in effect for that purpose.
8 ARTICLE 2. FISCAL MATTERS REGARDING REGULATION AND TAXATION
9 OF INSURERS
10 SECTION 2.01. Section 221.006, Insurance Code, is amended
11 by adding Subsection (c) to read as follows:
12 (c) An insurer is not entitled to a credit under Subsection
13 (a) for an examination or evaluation fee paid in calendar year 2012
14 or 2013. This subsect ion expires January I, 2014.
17 (c) An insurer or health maintenance organization is not
18 entitled to a credit under Subsection (a) for an examination or
19 evaluation fee paid in calendar year 2012 or 2013. This subsection
20 expires January 1, 2014.
23 (c) A title insurance company is not entitled to a credit
24 under Subsection (a) for an examination or evaluation fee paid in
25 calendar year 2012 or 2013. This subsection expires January I,
26 2014.
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1 by adding Subsection (f) to read as follows:

2 (0 An insurer is not entitled to a credit under Subsectiol~
3 (e) for an examination or evaluation fee paid in calendar year 201:!

4 or 2013. This subsection expires January 1, 2014.
5 SECTION 2.05. Section 401;154, Insurance Code, is amended
6 to read as follows:
7 Sec. 401.154. TAX CREDIT AUTHORIZED. (a) An insurer ill
8 entitled to a credit on the amount of premium taxes to be paid by thE!
9 insurer for all examination fees paid under Section 401.153. ThE!
10 insurer may take the credit for the taxable year during which thE'
11 examination fees are paid and may take the credit to the same extent:
12 the insurer may take a credit for examination fees paid when il
13 salar ied department examiner conducts the examinat ion.

14 (b) An insurer is not entitled to a credit under Subsectiorl
15 (a) for an examination fee paid in calendar year 2012 or 2013. ThiE~
16 subsect ion expires January 1, 2014.

17 SECTION 2.06. Section 463.160, Insurance Code, is amende,l
19 Sec. 463.160. PREMIUM TAX CREDIT FOR CLASS A ASSESSMENT.
20 The amount of a Class A assessment paid by a member insurer in each,
21 taxable year shall be allowed as a credit on the amount of premiun,
22 taxes due riB 'tHe same IBaRRal as a aleeit is allerw:ea. \;lRSer Seet'isf1'
23 4QLl§1(el].
24 SECTION 2.07. The changes in law made by this article apply
25 only to a tax credit for an examination or evaluation fee paid on or
26 after January 1, 2012. Tax credits for examination or evaluation
27 fees paid before January 1, 2012, are governed by the law in effect
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S.B. No. 1811

1 immediately before the effective date of this Act, and that law is
2 continued in effect for that purpose.
3 r--------~~Tr:IrcC:iL:iEn3i:.-CCUUSST:r:OQMr:rSnBrFRlmlBs--------_\
4 SECTION 3.01. Subsections (a-I), (f), and
5 7, Tax Code, are amended to read as follows:
6 The comptroller shall maintain a passwo
7 ebsite a customs broker, or an author ized
8 customs , licensed under this section mu use to prepare
9 documentation of tangib e personal property
10 The shall require a
11 customs broker or use the website to
12 actually produce the do umentation a providing all necessary
13 information. The comptrol se the information provided by
14 a customs broker ployee under this subsection as
15 necessary to enforce . on and Section 151. 307. [~
16
17
18
19
20
21 (f) a license issued
22 under
23 Section is false [4;.&
24
25
26 The may determine the length of or
27 ation necessary for the enforcement of this chapter
5
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S.B. No. 1811

comptroller's rules. A proceeding to suspend or revoke a licens 7r
der this subsection is a contested case under Chapter
Judicial review is by tr ial de novo. The
Travis County have exclusive original jurisdic
this section.
In addition to any other penalty provi
comptroller require a customs broker to pay
the amount of an tax r efunded .:::a~n:.:::d,-",t:..:h:.:::e_a:::m=o.:::u.:.:n:.:::t....:::.:r=L...I:=':=="""==';;:';:;'

9 under Section 151. r did not comply with
o this section or comptroller under this
2 SECTION 3.02. (c), Section 151.1575,

3 Tax Code, are amended to read
4 (b) A customs broker the comptroller or a
5 authorized employee broker may issue and deliver
6 documentation under any time after the tangibl
7 personal property is pu chased and the oker or employee complete
8 the process by Subsection (a). The documentation mus
9 include:
0 the name and address of the cus
1 the license number of the customs
2 the name and address of the purchase

3 (4) the name and address of the place a
4
5 (5) the dat e and time of the sale;
6 (6) a description and the quantity of the property;
(7) the sales pr ice of the property;
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,
1 ~--------------------------~-------"!'I'".
(8) the foreign country destination of
2 cl1 may not be the place of export;
3 (9) the date and time:
4 (A) at which the customs broker or
5 employee atched the property cross the border of United
6 States;
7 at which the customs broker or author ized
8 employee watched e property being placed on a
9 delivery outside the erritorial limits of the ited States.; or
10 (C) ed to arrive in the
11 foreign country destinat~ e purchaser;
•
12 (10) the customs broker or an
13 author ized employee of the cus ker stating that.!.
14 (A) the is a licensed Texas
15 customs broker; and
16 (B) em 10 ee
17 ins ected the
18 and
19 ( 11) certification issued by the
20 comptroller.
21 (c) mptroller may require a customs ~ oker to pay the
22 comptroller e amount of any tax refunded if the
23 does not c with this section. Section the rules
24 the comptroller under this section
25 In to the amount of the refunded tax, the comptrol
26 customs broker to pay a penalty of [4·:ft--.1Hlt-a>f9E>\:H~-EH~*
27 ~-4;.lfl.E!--afIl&\:lffTl;---+~;iw!-i'*~'*'El-4:-iH1f-r-Wt-ln ot 1e ssthan
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82R32127 JJT-D
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S.B. No. 1811

The comptroller and the state may deduct any penalti
2 e paid by a customs broker from the broker's posted bond.
3 ECTION 3.03. Subsection (g), Section 151.158, Tax is
4 read as follows:
5 (g) e comptroller shall charge $2.10 ~~~l for each
6 stamp. The roller shall use $1.60 from the sal
7 of the stamps
8 including costs of mat trolle
9 shall use the remainin enforcement of the law
10 relatin to customs Any unspent mone
11 shall be deposited revenue fund
12 Customs brokers who retur comptroller'
13 off ice on a quarter ly ba s shall get . t towards the purchase 0
14 new stamps.
15 SECTION The change in law made by
16 only tation issued on or after the effec 've date of thi
17! article. ocumentation issued before the effective
18 governed by the law in effect on
19 was issued, and that law is continued in effe
20 ,.K;;':';';;;;';;'..I;;,;;:~;';;;';;:~ +.
21 ARTICLE 4. STATE SALES AND FRANCHISE TAX REFUNDS FOR CERTAIN AD
22 VALOREM TAXPAYERS
23 SECTICN 4.01. Subchapter F, Chapter 111, Tax Code, is
24 repealed.
25 SECTION 4.02. The repeal of Subchapter F, Chapter Ill, Tax
26 Code, by this article does not affect an eligible person's right to
27 . ' claim a refund of state sales and use and state franchise taxes that;I·
82R32127 JJT-O
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S . B. No. 1811
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1 was established under Section 111.301, Tax Code, in relation to
2 taxes paid before the effective date of this article in a calendar

3 year for which the person paid ad valorem taxes to a school distr ict
4 as provided by Section 111. 301, Tax Code, before the effective date
5 of this article. An eligible person's right to claim a refund of
6 state sales and use and state franchise taxes that was established
7 under Section 111.301, Tax Code, in relation to taxes paid before
8 the effective date of this article in a calendar year for which the
9 person paid ad valorem taxes to a school district as provided by
10 Section 111. 301, Tax Code, before the effective date of this
11 article is governed by the law in effect on the date the right to
12 claim the refund was established, and the former law is continued in
13 effect for that purpose.
14 ARTICLE 5. TAX RECORDS
15 SECTION 5.01. Section 2153.201, Occupations Code, is
16 amended by amending Subsection (h) and adding Subsection (c) to
17 read as follows:
18 (b) A record required under Subsection (a) must:
19 (1) be available at all times for inspection by the
20 .. attorney general, the comptroller, or an authorized representati~e.
21 of the attorney general or comptroller as provided by Subsection

22 ill;
23 (2) include information relating to:
24 (A) the kind of each machine;
25 (B) the date each machine is:
26 (i) acquired or received in this state; and
27 (ii) placed in operation;
82R32l27 JJT-D 9
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S.B. No. 1811

1 (C) the location of each machine, including the:
2 (i) county;
3 ( ii) municipality, if any; and
4 ( iii) street or rural route number;
5 (D) the name and complete address of each
6 . operator of each machine;
7 (E) if the owner is an individual, the full name
8 and address of the owner; and
9 (F) if the owner is not an individual, the name
10 and address of each principal officer or member of the owner; and
11 (3) be maintained[~
12 [{.A+] at a permanent address in this state

13 designated on the application for a license under Section
14 2153.153[, aHa
15 [ (8 ) \i:fltil tl=le sasaRa aRRi'lersary af tAe elate tAB
16 Bt,/ReI e eases 8'atRerSRip sf the lRael:tiRe eaat· is tAB Slisj eet ef tRe
17 re69ra].
18 (c) A record required under Subsection (a) must be available
19 for inspection under Subsection (b) for at least four years and as
20 required by Section 111.0041, Tax Code.
21 SECTION 5.02. Sect ion 111. 0041, Tax Code, is amended to
22 read as follows:
23 Sec. 111.0041. RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE
24 CLAIMS. (a) Except as provided by Subsection (b), a [ARy] taxpayer
25 who is required by this title to keep records shall keep those
26 records open to inspection by the comptroller, the attorney
27 general, or the authorized representatives of either of them for at
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82R32127 JJT-D 11
S.B. No. l8E
1 ill This section prevails over any other conflictin~,
2 provision of this title.

3 SECTION 5.03. Section 112.052, Tax Code, is amended by
4 adding Subsection (d) to read as follows:
5 (d) A taxpayer shall produce contemporaneous records and
6 supporting documentation appropriate to the tax or fee for thE~
7 period in guestion to substantiate and enable verification of c~

8 taxpayer's claim relating to the amount of the tax, penalty, Ol~
9 interest that is to be assessed, collected, or refunded, af:

10 required by Section 111. 0041.
11 SECTION 5.04. Sect ion 112.151, Tax Code, is amended by
12 adding Subsection (f) to read as follows:
13 (f) A taxpayer shall produce contemporaneous records anc~
14 supporting documentation appropriate to the tax or fee for the

15 period in question to substantiate and enable verification of c;
16 taxpayer's claim relatinq to the amount of the tax, penalty, 01
17 interest that is to be assessed, collected, or refunded, as,

18 required by Section 111.0041.
19 SECTION 5.05. Section l51.025(b}, Tax Code, is amended to
20 read as follows:
21 (b) A record required by Subsection (a) [ef tais seatieRl

22 shall be kept for not less than four years from the date [~l that
23 it is made unless",-
24 ill the comptroller authorizes in writing its
25 destruction at an earlier dateL2!.
26 (2) Section 111.0041 requires that the record be kept
27 for a longer per iod.
82R32127 JJT-D 12
S.B. No. 1811
1 SECTION 5.06. Section· 152.063, Tax Code, is amended by
2 adding Subsection (hI to read as follows:
3 (hI Section 111.0041 applies to a person required to keep
4 records under this chapter.

6 adding Subsection (el to read as follows:
7 (el Section 111.0041 applies to a person required to keep
8 records under this chapter.
9 SECTION 5.08. Section 154.209(al, Tax Code, is amended to
10 read as follows:
11 (a) Except as provided by Section 111.0041, each [BasAl
12 permit holder shall keep records available for inspection and

13 copying by the comptroller and the attorney general for at least
14 four years.
15 SECTION 5.09. Section 155.110(a), Tax Code, is amended to
16 read as follows:
17 (a) Except as provided by Section 111. 0041, each [BasAl
18 permit holder shall keep records available for inspection and

19 copying by the comptroller and the attorney general for at least
20 four years.
22 adding Subsection (gl to read as follows:
23 (9) A person required to keep records under this section
24 shall also keep the records as required by Section 111.0041.
25 SECTION 5.11. Subchapter A, Chapter 162, Tax Code, is
26 amended by adding Section 162.0125 to read as follows:
27 Sec. 162.0125. DUTY TO KEEP RECORDS. A person required to
82R32l27 JJT-D 13
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S.B. No. 1811

1 keep a record under this chapter shall also keep the record as
2 required by Section 111.0041.
3 SECTION 5.12. This article takes effect immediately i f this

4 Act receives a vote of two-thirds of all the members elected to each
5 house, as provided by Section 39, Article III, Texas Constitution.
6 If this Act does not receive the vote necessary for immediate
7 effect, this article takes eff ect September 1, 2011.
8 ARTICLE 6. UNCLAIMED PROPERTY
9 SECTION 6.01. Subsection (a), Section 72.101, Property
10 Code, is amended to read as follows:
11 (a) Except as provided by this section and Sections 72.1015,
12 72.1016, 72.1017, and 72.102, personal property is presumed
13 abandoned if, for longer than three years:
14 (1) the existence and location of the owner of the
15 property is unknown to the holder of the property; and

16 (2) according to the knowledge and records of the
17 holder of the property, a claim to the property has not been
18 asserted or an act of ownership of the property has not been
19 exercised.
20 SECTION 6.02. Subchapter B, Chapter 72, Property Code, is
22 Sec. 72 .1017. UTILITY DEPOSITS. (a) In this section:
23 (1) "Utility" has the meaning assigned by Section
24 183.001, Utilities Code.
25 (2) "Utility deposit" is a refundable money deposit a
26 utility requires a user of the utility service to pay as a condition
27 of initiating the service.
82R32127 JJT-D 14
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S.B. No. 1811

1 {b) Notwithstandinq Section 73.102, a utility deposit is
2 presumed abandoned on the latest of:
3 (1) the first anniversary of the date a refund check
4 for the utility deposit was payable to the owner of the deposit;
5 (2) the first anniversary of the date the utility last
6 received documented communication from the owner of the utility
7 deposit; or
8 (3) the first anniversary of the date the utility
9 issued a refund check for the deposit payable to the owner of the
10 deposit if, according to the knowledge and records of the utility or
11 payor of the check, dur ing that per iod, a claim to the check has not
12 been asserted or an act of ownership by the payee has not been
13 exercised;
14 SECTION 6.03. Subsection (c), Section 72.102, Property
16 (c) A money order to which Subsection (a) applies is
17 presumed to be abandoned on the latest of:
18 (1) the third [se...entl'l] anniversary of the date on
19 which the money order was issued;
20 (2) the third [se... entl'l) anniversary of the date on
21 which the issuer of the money order last received from the owner of
22 the money order communication concerning the money order; or
23 (3) the third [se... eRtl'l] anniversary of the date of the
24 last writing, on file with the issuer, that indicates the owner's
25 interest in the money order.
26 SECTION 6.04. Section 72.103, Property Code, is amended to
27 read as follows:
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1 Sec. 72 .103. PRESERVATION OF PROPERTY . Notwithstanding any
2 other provision of this title except a provision of this section or
3 Section 72.1016 relating to a money order or a stored value card, a
4 holder of abandoned property shall preserve the property and may
5 not at any time, by any procedure, including a deduction for
6 service, maintenance, or other charge, transfer or convert to the
7 profits or assets of the holder or otherwise reduce the value of the
8 property. For purposes of this section, value is determined as of
9 the date of the last transaction or contact concerning the
10 property, except that in the case of a money order, value is
11 determined as of the date the property is presumed abandoned under
12 Section 72.102(c). If a holder imposes service, maintenance, or
13 other charges on a money order prior to the time of presumed
14 abandonment, such charges may not exceed the amount of $1 [9Q seatsl
15 per month for each month the money order remains uncashed prior to
16 the month in which the money order is presumed abandoned.
17 SECTION 6.05. Section 73.101, Property Code, is amended by
18 amending Subsection (a) and adding Subsection (c) to read as
19 follows:
20 (a) An account or safe deposit box is presumed abandoned if:
21 (1) except as provided by Subsection (c), the account
22 or safe deposit box has been inactive for at least five years as
23 determined under Subsection (b) 1
24 (2) the location of the depositor of the account or

25 owner of the safe deposit box is unknown to the depository; and
26 (3) the amount of the account or the contents of the
27 box have not been delivered to the comptroller in accordance with
82R32127 JJT-D 16
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S . B. No. 1811
1 Chapter 74.
2 (c) If the account is a checking or savings account or is a
3 matured certificate of deposit, the account is presumed abandoned
4 if the account has been inactive for at least three years as
5 determined under Subsection (b) (1).
8 (a) Each holder who on March 1 [JliRe Jg] holds property that
9 is presumed abandoned under Chapter 72, 73, or 75 of this code or
·10 under Chapter 154, Finance Code, shall file a report of that
11 property on or before the following July [NeveilW3er] 1. The
12 comptroller may require the report to be in a particular format,
13 including a format that can be read by a computer.
16 (a) Except as provided by Subsection (b), a holder who on
17 March 1 [JliRe ~Ql holds property valued at more than $250 that is
18 presumed abandoned under Chapter 72, 73, or 75 of this code or
19 Chapter 154, Finance Code, shall, on or before the preceding May
20 [fellaviR§' Ali§'list] 1, mail to the last known address of the known
21 owner written notice stating that:
22 (1) the holder is holding the property; and
23 (2) the holder may be required to deliver the property
24 to the comptroller on or before July [~le'leB\ller1 1 i f the property is
25 not claimed.
26 SECTION 6.08. Subsections (a) and (c), Section 74.301,
27 Property Code, are amended to read as follows:
i
!82R32127 JJT-O 17
S.B. No. 1811
1 (a) Except as provided by Subsection (c), each holder who on
2 March 1 [J~Re 30] holds property that is presumed abandoned under
3 Chapter 72, 73, or 75 shall deliver the property to the comptroller

4 on or before the following July alevemBel] 1 accompanied by the
5 report required to be filed under Section 74.l0l.
6 (c) If the property subject to delivery under Subsection (a)
7 is the contents of a safe deposit box, the comptroller may instruct
8 a holder to deliver the property on a specified date before July
9 [llevemBel] 1 of the following year.
10 SECTION 6.09. Subsection (e), Section 74.601, Property
12 (e) The comptroller on receipt or from time to time may
13 [flam time te time] sell securities, including stocks, bonds, and
14 mutual funds, received under this chapter or any other statute
15 requir ing the delivery of unclaimed property to the comptroller and
16 use the proceeds to buy, exchange, invest, or reinvest in
17 marketable secur ities. When making or selling the investments, the
18 comptroller shall exercise the judgment and care of a prudent
19 person.
20 SECTION 6.10. Section 74.708, Property Code, is amended to
21 read as follows:
22 Sec. 74.708. PROPERTY HELD IN TRUST. A holder who on March
23 1 [J~Re 30] holds property presumed abandoned under Chapters 72-75
24 holds the property in trust for the benefit of the state on behalf
25 of the missing owner and is liable to the state for the full value of
26 the property, plus any accrued interest and penalty. A holder is
27 not required by this section to segregate or establish trust
82R32127 JJT-D 18
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1 accounts for the property provided the property is timely delivered

2 to the comptroller in accordance with Section 74.301.
3 SECTION 6.11. (a) Except as provided by Subsection (b) of
4 this section, this article takes effect September 1, 2011.
5 (b) Sections 74.101(a), 74.1011(a), 74.301(a) and (c), and
6 74.708, Property Code, as amended by this article, take effect
7 January 1, 2013.
8 SECTION 6.12. A charge imposed on a money order under
9 Section 72.103, Property Code, by a holder before the effective
10 date of this article is governed by the law applicable to the charge
11 immediately before the effective date of this article, and the
12 holder may- retain the charge.
13 ARTICLE 7. CLASSIFICATION OF JUDICIAL AND COURT PERSONNEL
14 TRAINING FUND
15 SECTION 7.01. Section 56.001, Government Code, is amended
17 Sec. 56.001. JUDICIAL AND COURT PERSONNEL TRAINING FUND.
18 (a) The judicial and court personnel training fund is an account
19 in the general revenue fund. Money in the judicial and court
20 personnel training fund may be appropriated only to [sreal;eti 1ft l;Ae
21 sl;al;e l;reas~ry aftd sAal1 ~e a~m1ftisl;ered ~y] the court of criminal
22 appeals for the uses author ized in Section 56.003.
23 (b) [+4+] On requisition of the court of criminal appeals,
24 the comptroller shall draw a warrant on the fund for the amount
25 specified in the requisition for a use authorized in Section
26 56.003. A warrant may not exceed the amount appropriated for any
27 one fiscal year. [Al; l;Ae efta sf easA sl;al;e fiesal year, afty
82R32127 JJT-D 19
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S.B. No. 1811

1 \iReUpeRaea hcilaRse iR tAe f\iRB. iR eusess sf ~§QQ,QQQ sAall he,
2 traRsferrea te 'Eae §eRe~al reVeRl:1e f\:lRa.]
3 ARTICLE 8. PROCESS SERVER CERTIFICATION FEES

4 SECTION 8.01. Subchapter A, Chapter 51, Government Code, is
5 amended by adding Section 51. 008 to read as follows:
6 Sec. 51.008. FEES FOR PROCESS SERVER CERTIFICATION.
7 (a) The process server review board established by supreme court,
8 order may recommend to the supreme court the fees to be charged for
9 process server certification and renewal of certification. The
10 supreme court must approve the fees recommended by the process
11 server review board before the fees may be collected.
12 (b) If a certification is issued or renewed for a term that
13 is less than the certification period provided by supreme court
14 rule, the fee for the certification shall be prorated so that the
15 process server pays only that portion of the fee that is allocable
16 to the period during which the certification is valid. On renewal
17 of the certification on the new expiration date, the process server
18 must pay the entire certification renewal fee.
19 (c) The Office of Court Administration of the Texas Judicial
20 System may collect the fees recommended by the process server
21 review board and approved by the supreme court. Fees co'llected
22 under this section shall be sent to the comptroller for deposit to
23 the credit of the general revenue fund.
24 (d) Fees collected under this sect ion may be appropr iated to
25 the Office of Court Administration of the Texas Judicial System for
26 the support of regulatory programs for process servers and
27 guardians.
82R32127 JJT-O 20
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1 SECTION 8.02. (a) The fees recommended and approved under

2 Section 51.008, Government Code, as added by this article, apply
3 to:
4 (1) each person who holds a process server
5 certification on the effective date of this article; and
6 (2) each person who applies for process server
7 certification on or after the effective date of this article.
8 (b) The Office of Court Administration of the Texas Judicial
9 System shall prorate the process server certification fee so that a
10 person who holds a process server certification on the effective
11 date of this article pays only that portion of the fee that is
12 allocable to the period during which the certification is valid; On
13 renewal of the certification on the new expiration date, the entire
14 certification renewal fee is payable.

15 ARTICLE 9. FISCAL MATTERS REGARDING PETROLEUM INDUSTRY REGULATION
16 SECTION 9.01. Section 26.3574, Water Code, is amended by
17 amending Subsection (b) and adding Subsection (b-1) to read as
18 follows:
19 (b) A fee is imposed on the delivery of a petroleum product
20 on withdrawal from bulk of that product as provided by this
21 subsection. Each operator of a bulk facility on withdrawal from
22 bulk of a petroleum product shall collect from the person who orders
23 the withdrawal a fee in an amount determined as follows:
24 (1) not more than $3.125 l$3,7§] for each delivery
25 into a cargo tank having a capacity of less than 2,500 gallons (~
26 tae state fissa1 year se~iRRia~ Se~temser 1, 2gg7, tare~~ tae
27 state fissal year eRaiR~ A\i~\ist 31, 2gH];
82R32l27 JJT-D 21
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1 (2) not more than $6.25 [$7.§QI for each delivery into
2 a cargo tank having a capacity of 2,500 gallons or more but less
3 than 5,000 gallons [feI 1;Re s1;ate fiseal yeaI segiRRiRg SefltelllSeI
4 1, :lQQ7, tRleli'3R 1;Re s1;ate fiseal yeaI eRsiRg Aliglist 31, :lQ111;
5 (3) not more than $9.37 [$110 7§ 1 for each delivery
6 into a cargo tank having a capacity of 5,000 gallons or more but
7 less than 8,000 gallons [feI 1;Re stat e fiseal yeaI SeljiRRiR§
8 Se~temBel 1, ~007J tBrSY§H ta€ state fissal year eRsiR§ A~§ast ~1,
9 ~I;
10 (4) not more than $12.50 [$1§,QQ) for each delivery

11 into a cargo tank having a capacity of 8,000 gallons or more but
12 less than 10,000 gallons [feI 1;Re e1;ate fiseal yeaI segiRRiRlj
13 SeptemBeI 1, :lQQ7, tRreligA tAe state fiseal year eRsiRg.AlilJlist 31,
14 ~I; and
15 (5) not more than $6.25 [$7.§Q) for each increment of
16 5,000 gallons or any part thereof delivered into a cargo tank having
17 a capacity of 10,000 gallons or more [fer 1;Re state fiseal yeaI
18 SelJiRRiRlj SeptemBer 1, :lQQ7, tAlelilJA tAe state fiseal yeaI eRsiRlJ
19 AlilJlist 31, :lQ111.
20 (b-1) The commission by rule shall set the amount of the fee
.
21 in Subsect ion (b) in an amount not to exceed the amount necessary to
22 cover the agency's costs of administer ing this subchapter, as
23 indicated by the amount appropriated by the legislature from the
24 petroleum storage tank remediation account for that purpose.
25 ARTICLE 10. REMITTANCE AND ALLOCATION OF CERTAIN MOTOR FUELS
26 TAXES
82R32127 JJT-D 22
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1 adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
2 follows:
3 (a-I) On August 28, 2013', each licensed distributor and
4 licensed importer shall remit to the supplier or permissive
5 supplier, as applicable, a tax prepayment in an amount equal to 25
6 percent of the tax imposed by Section 162.101 for gasoline removed
7 at the terminal rack dur ing July 2013 by the licensed distr ibutor or
8 licensed importer, without accounting for any credit or allowance
9 to which the licensed distributor or licensed importer is entitled.
10 The supplier or permissive supplier shall remit the tax prepayment
11 received under this subsection to the comptroller by electronic
12 funds transfer on August 30, 2013, without accounting for any
13 credit or allowance to which the supplier or permissive supplier is
14 entitled. Subsections (c)-(e) do not apply to the tax prepayment
15 under this subsection.
16 (a-2) A licensed distributor or licensed importer may take a
17 credit against the amount of tax imposed by Section 162.101 for
18 gasoline removed at a terminal rack during August 2013 that is
19 required to be remitted to the supplier or permissive supplier, as
20 applicable, under Subsection (3) in September 2013. The amount of
21 the credit is equal to the amount of any tax prepayment remitted by
22 the licensed distributor or licensed importer as required by
23 Subsection (a-I).
24 (a-3) Subsections (a-I) and (a-2) apply to a supplier or an
25 affiliate of a supplier who removes gasoline at the terminal rack
26 for distribution to the same extent and in the same manner that
27 those subsections apply to a licensed distributor or licensed
82R32127 JJT-D 23
S.B. No. 1811
1 importer.
2 (a-4) Subsections (a-I), (a-2), and (a-3) and this

3 subsect ion expire September 1, 2015.

5 adding Subsections (a-I), (a-2), (a-3), and (a-4) to read as
6 follows:
7 (a-I) On August 28, 2013, each licensed distributor and
8 licensed importer shall remit to the supplier or permissive

9 supplier, as applicable. a tax prepayment in an amount equal to 25
10 percent of the tax imposed by Section 162.201 for diesel fuel
11 removed at the terminal rack dur ing July 2013 by the licensed
12 distributor or licensed importer, without accounting for any credit
13 or allowance to which the licensed distr ibutor or licensed importer
14 is entitled. The supplier or permissive supplier shall remit the

15 tax prepayment received under this subsection to the comptroller by
16 electronic funds transfer on August 30, 2013, without accounting
17 for any credit or allowance to which the supplier or permissive
18 supplier is entitled. Subsections (c)-(e) do not apply to the tax
19 prepayment under this subsection.
20 (a-2) A licensed distributor or licensed importer may take a
21 credit against the amount of tax imposed by Section 162.201 for

22 diesel fuel removed at a terminal rack during August 2013 that is
23 required to be remitted to the supplier or permissive supplier, as
24 applicable, under Subsection (a) in September 2013. The amount of
25 the credit is equal to any tax prepayment remitted by the licensed
26 distributor or licensed importer as required by Subsection (a-I).

27 (a-3) Subsections (a-I) and (a-2) apply to a supplier or an
82R32127 JJT-O 24
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S.B. No. 1811

1 affiliate of a supplier who removes diesel fuel at the terminal rack
2 for distribution to the same extent and in the same manner that
3 those subsections apply to a licensed distributor or licensed
4 importer.
5 (a-4) Subsections (a-1), (a-2), and (a-3) and this
6 subsection expire September 1, 2015.
7 SECTION 10.03. Section 162.503, Tax Code, is amended to
8 read as follows:
9 Sec. 162.503. ALLOCATION OF GASOLINE TAX. (a) On or

10 before the fifth workday after the end of each month, the
11 comptroller, after making all deductions for refund purposes and
12 for the amounts allocated under Sections 162.502 and 162.5025,
13 shall allocate the net remainder of the taxes collected under
14 Subchapter B as follows:
15 (1) one-fourth of the tax shall be deposited to the
16 credit of the available school fund;
17 (2) one-half of the tax shall be deposited to the
18 credit of the state highway fund for the construction and
19 maintenance of the state road system under existing law; and
20 (3) from the remaining one-fourth of the tax the
21 comptroller shall:
22 (A) deposit to the credit of the county and road
23 district highway fund all the remaining tax receipts until a total
24 of $7,300,000 has been credited to the fund each fiscal year; and
25 (B) after the amount required to be deposited to
26 the county and road distr ict highway fund has been deposited,
27 deposit to the credit of the state highway fund the remainder of the
82R32127 JJ'1'-D 25
S.B. No. 1811
lone-fourth of the tax, the amount to be provided on the basis of
2 allocations made each month of the fiscal year, which sum shall be
3 used by the Texas Department of Transportation for the
4 construction, improvement, and maintenance of farm-to-market
5 roads.
6 (b) Notwithstanding Subsection (a), the comptroller may not
7 allocate revenue otherwise required to be allocated under
8 Subsection (a) during July and August 2013 before the first workday
9 of September 2013. The revenue shall be allocated as otherwise
10 provided by Subsection (a) not later than the fifth workday of
11 September 2013. This subsection expires September 1, 2015.
13 read as follows:
14 Sec. 162.504. ALLOCATION OF DIESEL FUEL TAX. (a) On or
15 before the fifth workday after the end of each month, the
16 comptroller, after making deductions for refund purposes, for the
17 administration and enforcement of this chapter, and for the amounts
18 allocated under Section 162.5025, shall allocate the remainder of
19 the taxes collected under Subchapter C as follows:
20 (1) one-fourth of the taxes shall be deposited to the
21 credit of the available school fundi and
22 (2) three-fourths of the taxes shall be deposited to
23 the credit of the state highway fund.
24 (b) Notwithstanding Subsection (a), the comptroller may not
25 allocate revenue otherwise required to be allocated under
26 Subsection (a) during July and August 2013 before the first workday
27 of September 2013. The revenue shall"be allocated as otherwise
82R32127 JJT-D 26
S.B. No. 1811
1 provided by Subsection (a) not later than the fifth workday of
2 September 2013. This subsection expires September 1, 2015.
3 SECTION 10.05. The expiration of the amendments made to the
4 Tax Code in accordance with this article does not affect tax
5 liability accruing before the expiration of those amendments. That
6 liability continues in effect as if the amendments had not expired,
7 and the former law is continued in effect for the cOllection of
8 taxes due and for civil and criminal enforcement of the liability
9 for those taxes.
10 ARTICLE 11. REMITTANCE OF MIXED BEVERAGE TAXES AND TAXES AND FEES
11 ON CERTAIN ALCOHOLIC BEVERAGES
12 SECTION 11.01. Section 34.04, Alcoholic Beverage Code, is
13 amended by adding Subsections (c), (d), and (e) to read as follows:
14 (c) In August 2013, a permittee shall remit a tax prepayment
15 of taxes due to be remitted in September 2013 that is equal to 25
16 percent of the amount the permittee is otherwise required to remit
17 during August 2013 under the reporting system prescribed by the
18 commission. The prepayment is in addition to the amount the
19 permittee is otherwise reguired to remit during August. The
20 permittee shall remit the additional payment in conjunction with
21 the report and payment otherwise required during that month.
22 (d) A permittee who remits the additional payment as
23 required by Subsection (c) may take a credit in the amount of the
24 additional payment against the next payment due under the reporting
25 system prescr ibed by the commission.
26 (e) Subsections (c) and (d) and this subsection expire
27 September 1, 2015.
82R32127 JJT-O 27
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1 SECTION 11. 02. Section 48.04, Alcoholic Beverage Code, in
2 amended by adding Subsections (c), (d), and (e) to read as follows:
3 (c) In August 2013, a permittee shall remit a tax prepaymen1:.
4 of taxes due to be remitted in September 2013 that is equal to 2!~
5 percent of the amount the permittee is otherwise reguired to remil:
6 during August 2013 under the reporting system prescribed by thE!

7 commission. The' prepayment is in addition to the amount thE!
8 permittee is otherwise required to remit dur ing August. ThE!
9 permittee shall remit the additional payment in conjunction with
10 the report and payment otherwise required dur ing that month.
11 (d) A permittee who remits the additional payment ..
a C'
12 required by Subsection (cl may take a credit in the amount of thE!
13 additional payment against the next payment due under the reportinq
14 system prescribed by the commission •
15 . (el Subsections (cl and (dl and this subsection expirE~
16 September 1~ 2015.
17 SECTION 11.03. Section 201.07, Alcoholic Beverage Code, is:
18 amended to read as follows:
19 Sec. 201.07. DUE DATE. ill The tax on liquor is due anc,
20 payable on the 15th of the month following the first sale, together.
21 with a report on the tax due.
22 (bl In August 2013, each permittee who is liable for the
23 taxes imposed by this.subchapter shall remit a tax prepayment of,
24 taxes due to be remitted in September 2013 that is equal to 25
25 percent of the amount the permittee is otherwise required to remit
26 during August 2013 under Subsection (a). The prepayment is in,

27 addition to the amount the permittee is otherwise reguired to remit
82R32127 JJT-D 28
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S.B. No. 1811

1 during August. The permittee shall remit the additional payment in
2 conjunction with the report and payment otherwise required during
3 that month.
4 (c) A permittee who remits the additional payment as
5 required by Subsection (b) may take a credit in the amount of the
6 additional payment against the next payment due under Subsection
7 (a) •
8 (d) Subsections (b) and (c) and this subsection expire

9 September I, 2015.
11 amended by amending Subsection (b) and adding Subsections (c), (d),
12 and (e) to read as follows:
13 (b) The tax is due and payable on the 15th day of the month
14 following the month in which the taxable first sale occurs.L.
15 together with a report on the tax due.
16 (c) In August 2013, each permittee who is liable for the tax
17 imposed by this subchapter shall remit a tax prepayment of taxes due
18 to be remitted in September 2013 that is equal to 25 percent of the
19 amount the permittee is otherwise required to remit during August
20 2013 under Subsection (b). The prepayment is in addition to the
21 amount the permittee is otherwise required to remit during Auqust.
22 The permittee shall remit the additional payment in conjunction
23 with the report and payment otherwise required durinq that month.
27 (b).
82R32127 JJT-D 29
S.B. No. 1811
4 amended by amending Subsection (b) and adding Subsections (c), (d),
5 and (e) to read as follows:
6 (b) The tax is due and payable on the 15th day of the month
7 following the month in which the taxable first sale occurs.L,
8 together with a report on the tax due.
9 (c) Each licensee who is liable for the tax imposed by this
10 chapter shall remit a tax prepayment of taxes due to be remitted in
11 September 2013 that is equal to 25 percent of the amount the
12 licensee is otherwise required to remit during August 2013 under
13 Subsection (b). The prepayment is in addition to the amount the
14 licensee is otherwise required to remit during Auqust. The
15 licensee shall remit the additional payment in conjunction with the
16 report and payment otherwise required during that month.
17 (d) A licensee ~Iho remits the additional payment as required
18 by Subsection (c) may take a credit in the amount of the additional
19 payment against the next payment due under Subsection (b).
23 read as follows:
24 Sec. 183.023. PAYMENT. ~ The tax due for the preceding
25 month shall accompany the return and shall be payable to the state.
26 ill The comptroller shall deposit the revenue received
27 under this section in the general revenue fund.
82R32127 JJT-O 30
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S.B. No. 1811

1 (c) In August 2013, each permittee who is liable for the tax
2 imposed by this subchapter shall remit a tax prepayment of taxes due
3 to be remitted in September 2013 that is equal to 25 percent of the
4 amount the permittee is otherwise required to remit during August
5 2013 under Subsection (a). The prepayment is ih addition to the
6 amount the permittee is otherwise required to remit during August.
7 The permittee shall remit the additional payment in conjunction
8 with the return and payment otherwise required dur ing that month.
12 ~

15 SECTION 11. 07. The expiration of the amendments made to the
16 Alcoholic Beverage Code and Tax Code in accordance with this
17 article does not affect tax liability accruing before the
18 expiration of those amendments. That liability continues in effect
19 as if the amendments had not expired, and the former law is
20 continued in effect for the collection of taxes due and for civil
21 and cr iminal enforcement of the liability for those taxes.
22 ARTICLE 12. CIGARETTE TAX STAMPING ALLOWANCE
23 SECTION 12.01. Subsection (a), Section 154.052, Tax Code,
24 is amended to read as follows:
25 (a) A distributor is, subject to the provisions of Section
26 154.051, entitled to 2.5 [three] percent of the face value of stamps
27 purchased as a stamping allowance for providing the service of
82R32127 JJT-D 31
S.B. No. 1811
1 affixing stamps to cigarette packages, except that an out-of-state
2 distributor is entitled to receive only the same percentage of
3 stamping allowance as that given to Texas distributors doing
4 business in the state of the distr ibutor.
5 SECTION 12.02. This article applies only to cigarette
6 stamps purchased on or after the effective date of this article.
7 Cigarette stamps purchased before the effective date of this
8 article are governed by the law in effect on the date the cigarette
9 stamps were purchased, and that law is continued in effect for that
10 purpose.·
11 ARTICLE 13. SALES FOR RESALE
12 SECTION 13.01. Section 151. 006, Tax Code, is amended by
13 amending Subsection (a) and adding Subsection (c) to read as
14 follows:
15 (a) "Sale for resale" means a sale of:
16 (1) tangible personal property or a taxable service to
17 a purchaser who acquires the property or service for the purpose of
18 reselling it with or as a taxable item in the United States of
19 Amer ica or a possession or terr itory of the United States of Amer ica
20 or in the United Mexican States in the normal course of business in
21 the form or condition in which it is acquired or as an attachment to
22 or integral part of other tangible personal property or taxable
23 service;
24 (2) tangible personal property to a purchaser for the
25 sole purpose of the purchaser's leasing or renting it in the United
26 States of America or a possession or territory of the United States
27 of America or in the United Mexican States in the normal course of
, .
S.B. No. 1811
1 business to another person, but not if incidental to the leasing or

2 renting of real estate;
3 (3) tangible personal property to a purchaser who
4 acquires the property for the purpose of transferring it in the
5 United States of America or a possession or territory of the United
6 States of America or in the United Mexican States as an integral
7 part of a taxable service; [-.1
8 (4) a taxable service performed on tangible personal
9 property that is held for sale by the purchaser of the taxable
10 service; or
11 (5) except as provided by Subsection (c), tangible,
12 personal property to a purchaser who acquires the property for the
13 ilfll;% purpose of transferr ing it as an integral part of performing a
14 contract} or a subcontract of -tltal~contractJwith the federal
15 government only if the purchaser:
16 (A) allocates and bills to the contract the cost
17 of the property as a direct or indirect cost; and
18 (B) transfers title to the property to the
19 federal· government under the contract and applicable federal
20 acquisition regulations.
21 (c) A sale for resale does not include the sale of tangible
22 personal property or a taxable service to a purchaser who acquires
23 the property or service for the purpose of performing a service that
24 is not taxed under this chapter, regardless of whether title
25 transfers to the service provider's customer, unless the tangible
f>,.........1, Ie
26 personal property or ~ serV1ce is purchased for the purpose of
"
27 reselling it to the United States in a contract, or a subcontract of a
contract, with any branch of

33
-~_ ... _-_.-
~==------------....:;;; .. ~---\
to the extent allocated and billed to the contract-with the federal
government.
S.B. No. 1811

1 the Department of Defense, Department of Homeland Security,
2 Department of Energy, National Aeronautics and Space
3 Administration, Central Intelligence Agency, National Security
4 Agency, National Oceanic and Atmospheric Administration, or
5 National Reconnaissance Office( ,
6 SECTION 13.02. This article takes effect immediately i f
7 this Act receives a vote of two-thirds of all the members elected to
8 each house, as provided by Section 39, Article III, Texas
9 Constitution. If this Act does not receive the vote necessary for
10 immediate effect, this article takes effect September 1, 2011. .
11 ARTICLE 14. REMITTANCE OF SALES AND USE TAXES
13 adding Subsections' (c), (d), and (e) to read as follows:
14 (c) In August 2013, a taxpayer who is required to pay the
15 taxes imposed by this chapter on or before the 20th day of that
16 month under Subsection (a), who pays the taxes imposed by this
17 chapter by electronic funds transfer, and who does not prepay as
18 provided by Section 151.424 shall remit to the comptrol1~r a tax
19 prepayment that is equal to 25 percent of the amount the taxpayer is
20 otherwise required to remit during August 2013 under Subsection
21 (a). The prepayment is in addition to the amount the taxpayer is
22 otherwise required to remit during August. The taxpayer shall
23 remit the additional payment in conjunction with the payment
24 otherwise required during that month. Section 151.424 does not
25 apply with respect to the additional payment required by this
26 subsection.
27 (d) A taxpayer who remits the additional payment as required
82R.32127 JJT-D 34
'. .
82R32127 JJT-O 35
S.B. No. 1811
1 adding Subsections (h) and (i) to read as follows:
2 (h) The comptroller shall disclose information to a person,
3 regarding net sales by quantity, brand, and size that is submitted
4 in a report required under Section 151.462 if:
5 (1) the person requesting the information holds a
6 permit or license under Chapter 19, 20, 21, 37, 64, 65, or 66,
7 Alcoholic Beverage Code; and
8 (2) the request relates only to information regarding
9 the sale of a product distr ibuted by the person making the request.
10 (i) A disclosure made under Subsection (h) is not considered
11 a disclosure of competitively sensitive, proprietary, or

12 confidential information.
13 SECTION 15.02. Chapter 151, Tax Code, is amended by adding
14 Subchapter 1-1, and a heading is added to that subchapter to read as
15 follows:
16 SUBCHAPTER 1-1. REPORTS BY PERSONS INVOLVED IN THE MANUFACTURE
17 AND DISTRIBUTION OF ALCOHOLIC BEVERAGES
18 SECTION 15.03. Subchapter 1-1, Chapter 151, Tax Code, as
19 added by this Act, is amended by adding Sections 151.462, 151.463,
20 151.464, 151.465, 151.466, 151.467, 151.468, 151.469, 151.470, and
21 151.471, and Section 151.433, Tax Code, is transferred to
22 Subchapter I-I, Chapter 151, Tax Code, redesignated as Section

23 151.461, Tax Code, and amended to read as follows:
24 Sec. 151.461 [151.4~~l. DEFINITIONS. [REPORTS B¥
25 WHOUSAUH~S AN9 9ISTRIBl:lTORS OF BEER, WINE, Mig HALT U\il:lOR •
26 ~] In this subchapter [aeatis,,]:

27 (1) "Brewer" means a person required to hold a brewer's
82R32127 JJT-O 36
• •
S.B. No. 1811
1 permit under Chapter 12, Alcoholic Beverage Code.

2 ill "Distributor" means a person required to hold..:..
3 (A) a general distributor's license under
4 Chapter 64, Alcoholic Beverage Code;

5 (B) a local distributor's license under Chapter
6 65, Alcoholic Beverage Code; or

7 (C) a branch distributor's license under Chapter
8 66, Alcoholic Beverage Code.
9 (3) "Manufacturer" means a person required to hold a
10 manufacturer's license under Chapter 62, Alcoholic Beverage Code.

11 (4) "Package store local distributor" means a person
12 required to hold:
13 (A) a package store permit under Chapter 22,
14 Alcoholic Beverage Code; and
15 (B) a local distributor's permit under Chapter

16 llL [a ~eReral, laeal, ar sraReR ai6tris~tar's liaeRse ~Raer tRe]
17 Alcoholic Beverage Code.
18 ill [~] "Retailer" means a person required to hold

19 [the felle\JiR§'] :
20 (A) a wine and beer retailer's permit under
21 Chapter 25, Alcoholic, Beverage Code;
22 (B) a wine and beer retailer's off-premise permit

23 under Chapter 26, Alcoholic Beverage Code;
24 (C) a temporary wine and beer retailer's permit

25 or special three-day wine and beer permit under Chapter 27,
26 Alcoholic Bever age Code;
27 (D) a mixed beverage permit under Chapter 28,
82R32127 JJT-O 37
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Alcoholic Beverage Code i
(E) a daily temporary mixed beverage permit under

Chapter 30, Alcoholic Beverage Code;
(F) a private club registration permit under
Chapter 32, Alcoholic Beverage Code;
(G) a certificate issued to a fraternal or
Alcoholic Bever age
a wholesaler's permit under Chapter 19,
Alcoholic Beverage Code i
ill [+B+] a general Class B wholesaler's permit
82R32127 JJT-O 38
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S.B. No. 1811

1 under Chapter 20, Alcoholic Beverage Code; or
2 (0) [+G+] a local Class B wholesaler's permit
3 under Chapter 21, Alcoholic Beverage Code.
4 Sec. 151.462. REPORTS BY BREWERS, MANUFACTURERS,
5 WHOLESALERS, AND DISTRIBUTORS. (a) [+&}] The comptroller shall
6 [may, 1.'l:leR eaRsiaerea Reeeseary lily tke ealllfiltraller far tke
7 aamiRist£atiaR sf a tau \iRae£ tfiis efiClilter,] require each brewer,
8 manufacturer, wholesaler L [e+] distributor, or package store local
9 distributor [ef seer, 'liRe, er malt liEl\ier] to file with the
10 comptroller a report each month of alcoholic beverage sales to
11 retailer s in this state.
12 (b) Each brewer, manufacturer, [(e) Tfie] wholesaler L [e+]
13 distributor, or package store local distributor shall file !!

14 separate [~] report for each permit or license held on or before
15 the 25th day of each month. The report must contain the following
16 information for the preceding calendar month's sales in relation to
17 each retailer:
18 ('1) the brewer's, manufacturer's, wholesaler's,
19 distributor's, or package store local distributor's name, address,
20 taxpayer number and outlet number assigned by the comptroller, and
21 alphanumer ic permit or license number issued by the Texas Alcoholic
22 Beverage Commission;
23 (2) the retailer's:
24 (A) name and address, including street name and
25 number, city, and zip code;
26 (B) taxpayer number assigned by the comptroller;
27 and
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1 beverage [By tAl!! '.IAElll!!sall!!r Elr ElistriB'titElr, iaal'tiBia(j tAe El\iaatity
2 aRe uBits sf seel, "iRe, aRB malt li€t\i91 sela te1:ae retailer].
3 1£l [+&}) Except as provided by this subsection, the
4 brewer, manufacturer, wholesaler~ [~) distributor, or package
5 store local distributor shall file,the report with the comptroller
6 electronically. The comptroller may establish procedures to
7 temporarily postpone the electronic reporting requirement [~
8 allEmin(j an alternative HletAeEl sf filia(j) for a brewer,

9 manufacturer, wholesaler~ [~) distributor, or package store local
10 distributor who demonstrates to the comptroller an inability to
11 comply because undue hardship would result if it were required to
12 file the return elect ronically ['./itA tAe e Ie at r enie r efiler t in(j
13 re~'tiireHleat). If the comptroller determines that another
14 technological method of filing the report is more efficient than
15 electronic filing, the comptroller may establish procedures
16 requiring its use by brewers, manufacturers, wholesalers~ [aA4)
17 distributors, and package store local distributors.
18 Sec. 151.463. RULES. The comptroller may adopt rules to
19 implement this subchapter.
20 Sec. 151.464. CONFIDENTIALITY. [+e}) Except as provided
21 by Section 111.006, information contained in a report required to
22 be filed by this subchapter [seetieR) is confidential and not
23 subject to disclosure under Chapter 552, Government Code.
24 Sec. 151.465. APPLICABILITY TO CERTAIN BREWERS. This
25 subchapter applies only to a brewer whose annual production of malt
26 liquor in this state, together with the annual production of beer at
27 the same premises by the holder of a manufacturer's license under
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1 Section 62.12, Alcoholic Beverage Code, does not exceed 75,000
2 barrels.
3 Sec. 151.466. APPLICABILITY TO CERTAIN MANUFACTURERS. This
4 subchapter applies only to a manufacturer whose annual production
5 of beer in this state does not exceed 75,000 barrels.
6 Sec. 151. 467. SUSPENSION OR CANCELLATION OF PERMIT.
7 [+£+} If a person fails to file a report required by this
8 subchapter [sestisR] or fails to file a complete report, the
9 comptroller may suspend or cancel one or more permits issued to the
10 person under Section 151.203.:..
11 Sec. 151.468. CIVIL PENALTY; CRIMINAL PENALTY. (al If a
12 person fails to file a report required by this subchapter or fails

13 to file a complete report, the comptroller [~] may impose a civil
14 or criminal penalty, or both, under Section 151. 7031 or 151. 709.
15 (bl In addition to the penalties imposed under Subsection
16 (al, a brewer, manufacturer, wholesaler, distributor, or package
17 store local distributor shall pay the state a civil penalty of not
18 less than $25 or more than $2,000 for each day a violation continues
19 if the brewer, manufacturer, wholesaler, distributor, or package
20 store local distributor:
21 (1) violates this subchapter; or
22 (2) violates a rule adopted to administer or enforce
23 this subchapter.
24 Sec. 151.469. ACTION BY TEXAS ALCOHOLIC BEVERAGE
25 COMMISSION. [~} If a person fails to file a report required by
26 this subchapter [s8stisR] or fails to file a complete report, the
27 comptroller may notify the Texas Alcoholic Beverage commission of
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1 the failure and the commission may take administrative action
2 against the person for the failure under the Alcoholic Beverage
3 Code.
4 Sec. 151.470. AUDIT; INSPECTION. The comptroller may
5 audit, inspect, or otherwise verify a brewer's, manufacturer's,
6 wholesaler's, distributor's, or package store local distributor's
7 compliance with this subchapter.
8 Sec. 151.471. ACTION BY ATTORNEY GENERAL; VENUE; ATTORNEY'S
9 FEES. (a) The comptroller may bring an action to enforce this
10 subchapter and obtain any civil remedy authorized by this
11 subchapter or any other law for the violation of this subchapter.
12 The attorney general shall prosecute the action on the
13 comptroller's behalf.
14 (b) Venue for and jurisdiction of an action under this
15 section is exclusively conferred on the district courts in Travis
16 County.
17 (c) If the comptroller prevails in an action under this
18 section, the comptroller and attorney general are entitled to
19 recover court costs and reasonable attorney's fees incurred in
20 bringing the action.
21 SECTION 15.04. Subchapter 1-1, Chapter 151, Tax Code, as
22 added by this article, applies only to a report due on or after the
23 effective date of this article. A report due before the effective
24 date of this article is governed by the law as it existed on the date
25 the report was due, and the former law is continued in effect for
26 that purpose.
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1 ARTICLE 16. PENALTIES FOR FAILURE TO REPORT OR REMIT
2 CERTAIN TAXES OR FEES
3 SECTION 16.01. Subsection (b), Section 111.00455, Tax Code,
5 . (b) The following are not contested cases under Subsection
6. (a) and Section 2003.101, Government Code:
7 (1) a show cause hearing or any hearing not related to
8 the collection, receipt, administration, or enforcement of the
9 amount of a tax or fee imposed, or the penalty or interest
10 associated with that amount, except for a hearing under Section
11 151.157(f}, 151.1575(c}, 151.712(g}, 154.1142, or 155.0592;
12 (2) a property value study hearing under Subchapter M,
13 Chapter 403, Government Code;
14 (3) a hearing in which the issue relates to:
15 (A) Chapters 72-75, Property Code;
16 {B} forfeiture of a right to do business;
17 (C) a certificate of authority;
18 (D) articles of incorporation;
19 (E) a penalty imposed under Section 151.703(d)
20 [1§L7Q31];
21 (F) the refusal or failure to settle under
22 Section 111.101; or
23 (G) a request for or revocation of an exemption
24 from taxation; and

25 (4) any other hearing not related to the collection,
26 receipt, administration, or enforcement of the amount of a tax or
27 fee imposed, or the penalty or interest associated with that
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1 amount.
2 SECTION 16.02. Subsection (f), Section 151.433, Tax Code,
4 (f) I f a person fails to file a report required by this
5 section or fails to file a complete report, the comptroller may

6 suspend or cancel one or more permits issued to the person under
7 Section 151.203 and may impose a civil or criminal penalty, or both,
8 under Section 151.703(d) [l§1,7Q31] or 151.709.
11 (d) In addition to any other penalty authorized by this
12 section, a person who fails to file a report as required by this
13 chapter shall pay a penalty of $50. The penalty provided by this
14 subsection is assessed without regard to whether the taxpayer
15 subsequently files the report or whether any taxes were due from the
16 taxpayer for the reporting per iod under the required report.
19 (d) In addition to any other penalty provided by law. the
20 owner of a motor vehicle subject to the tax on gross rental receipts
21 who is required to file a report as provided by this chapter and who
22 fails to timely file the report shall pay a penalty of $50. The
23 penalty provided by this subsection is assessed without regard to
24 whether the taxpayer subsequently files the report or whether any
25 taxes were due from the taxpayer for the reporting per iod under the
26 required report.
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1 adding Subsection (j) to read as follows:
2 (j) In addition to any other penalty provided by law, the

3 seller of a'motor vehicle sold in a seller-financed sale who is
4 required to file a report as provided by this chapter and who fails,
5 to timely file the report shall pay a penalty of $50. The penalty,
6 provided by this subsection is assessed without regard to whether
7 the taxpayer subsequently files the report or whether any taxes
8 were due from the taxpayer for the reporting period under the
9 required report.
11 amending Subsection (c) and adding Subsection (d) to read as
12 follows:
13 (c) The minimum penalty under Subsections (a) and (b) [~,
14 seetieR] is $1-
16 section, a person who fails to file a report as required by this,
17 chapter shall pay a penalty of $50. The penalty provided by this,
18 subsection is assessed without regard to whether the taxpayer,
19 subsequently files the report or whether any taxes were due from the,
20 taxpayer for the reporting period under the required report.

22 adding Subsection (c) to read as follows:
23 (c) In addition to any other penalty authorized by this
24 section, a person who fails to file a report as required by this
26 subsection is assessed without regard to whether the taxpayer
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S.B. No. 1811
1 taxpayer for the reporting per iod under the required report.
3 amending Subsection (c) and adding Subsection (f) to read as
4 follows:
5 (c) The minimum penalty under Subsections (a) and (b) [this
6 seetiefl] is $1.
7 Cf) In addition to any other penalty authorized by this
8 section, a taxable entity who fails to file a report as required by
9 this chapter shall pay a penalty of $50. The penalty provided by'
10 this subsection is assessed without regard to whether the taxable
11 entity subsequently files the report or whether any taxes were due
12 from the taxable entity for the reporting per iod under the required
13 report.
14 SECTION 16.09. Subchapter B, Chapter 183, Tax Code, is
16 Sec. 183.024. FAILURE TO PAY TAX OR FILE REPORT. (a) A
17 permittee who fails to file a report as required by this chapter or

18 who fails to pay a tax imposed by this chapter when due shall pay
19 five percent of the amount due as a penalty, and if the permittee
20 fails to file the report or pay the tax within 30 days after the day
21 the tax or report is due, the permittee shall pay an additional five
22 percent of the amount due as an additional penalty.
23 (b) The minimum penalty under Subsection (a) is $1.
24 (c) A delinquent tax draws interest beqinning 60 days from
25 the due date.
26 Cd) In addition to any other penalty authorized by this
27 section, a permittee who fails to file a report as required by this
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2 subsection is assessed without regard to whether the permittee
4 permittee for the reporting period under the required report.
5 SECTION 16.10. Section 771.0712, Health and Safety Code, is
6 amended by adding Subsections (c) and (d) to read as follows:
7 (c) A seller who fails to file a report or remit a fee
8 collected or payable as provided by this section and comptroller
9 rules shall pay five percent of the amount due and payable as a
10 penalty, and i f the seller fails to file the report or remit the fee
11 within 30 days after the day the fee or report is due, the seller
12 shall pay an additional five percent of the amount due and payable
13 as an additional penalty.
15 section, a seller who fails to file a report as provided by this
16 section shall pay a penalty of $50. The penalty provided by this
17 subsection is assessed without regard to whether the seller
19 seller for the reporting period under the required report.
20 SECTION 16.11. Section 151. 7031, Tax Code, is repealed.
21 SECTION 16.12. The change in law made by this article
22 applies only to a report due or a tax or fee due and payable on or

23 after the effective date of this article. A report due or a tax or
24 fee due and payable before the effective date of this article is
25 governed by the law in effect at that time, and that law is
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4 immediate effect, this article takes effect September 1, 2011.
5 ARTICLE 17. FISCAL MATTERS RELATED TO VOTER REGISTRATION
6 SECTION 17.01. Subsections (b), (c), and (d), Section
7 18.065, Election Code, are amended to read as follows:
8 (b) On determining that a registrar is not in substantial

9 compliance, the secretary shall deliver wr itten notice of the
10 noncompliance to [+
11 .[-H+] the registrar and include [, iRellilliREj] in the
12 notice a description of the violation and an explanation of the
13 action necessary for substantial compliance and of the consequences
14 of noncompliance [, aRB
15 [(2) tAe eempt£elle£ ef p~Blis aeee~Rts, iRel~BiREj iR
16 tAe Retiee tAe iileRtity ef tAe ReRsemplyiREj reEjistrar] •
17 (c) On determining that a noncomplying registrar has
18 corrected the viOlation and is in substantial compliance, the
19 secretary shall deliver written notice to the registrar laRa te tAe
20 semptreller) that the registrar is in substantial compliance.
21 Cd) [~Ae ee~tleller saall retaiR a Retiee reeeiv8e ~Rge*
22 tHis seetiaR 8ft file YRti! J\ily 1 f8119\1ifl~ ta8 '1etiA§ year iR ':l:liSA
23 it is reeeiveil.) The secretary shall retain a copy of each notice

24 the secretary delivers under this section for two years after the
25 date the notice is delivered.
26 SECTION 17.02. Subsection (a), Section 19.001, Election
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1 (a) Before May 15 of each year, the registrar shall prepilI'l
2 and submit to the secretary of state [ss\lliltfsllef sf ll'deli,~
3 aSeS'dRto] a statement containing:

4 (1) the total number of initial registrations for th'l
5 previous voting year;
6 (2) the total number of registrations canceled unde::

7 Sections 16.031(a) (1), 16.033, and 16.0332 for the previous votinq
8 year; and
9 (3) the total number of" registrations for which
10 information was updated for the previous voting year.
11 SECTION 17.03. The heading to Section 19.002, Election
13 Sec. 19.002. PAYMENTS [ISSQMGE QF I~ARRMTS
14 COMPTROLLER] •
15 SECTION 17.04. Subsections (b) and (d), Section 19.002,

16 Elect ion Code, are amended to read as follows:
17 (b) After June "I of each year, the secretary of stab!
18 [ee\lliltfsllef sf lll:i131ie aeSel:iRts] shall make payments (issl:i'~
19 '.laffaRts] pursuant to vouchers submitted by the registrar and

20 approved by the secretary of state in amounts that in the aggregat,!
21 do not exceed the registrar's entitlement. The secretary of stat.!
22 shall prescr ibe the procedures necessary to implement thi:;
23 subsection.
24 (d) The secretary of state [ss\lliltfsllef) may not make il
25 payment under Subsection (b) (issl:ie a '.lanaRt] i f on June 1 of th,!
26 year in which the payment [~lanaRt) is to be ~ [iso'dea tAe IIISS";'
27 I€8eRt Rstie8 reeeivee. by tRe ee~treller flaIR tAB s€sretary a:;'
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1 state ~RBeI SeetieR 18.Q6§ iRBieatee tAat] the registrar is not in

2 substantial compliance with Section 15.083, 16.032, 18.042, or
3 18.065 or with rules implementing the registration service program.
4 SECTION 17.05. The heading to Section 19.0025, Elect ion

6 Sec. 19.0025. ELECTRONIC ADMINISTRATION OF VOUCHERS AND
7 PAYMENTS [WARRANTS].
8 SECTION 17.06. Subsection (aI, Section 19.0025, Election
10 (al The secretary of state shall establish and maintain an
11 online electronic system for administering vouchers submitted and
12 payments made [~laIIaRte iss~eB) under Section 19.002.
13 SECTION 17.07. Subsection (cl, Section 19.002, Election
14 Code, is repealed.
15 SECTION 17.08. This article takes effect September 1, 2011.
16 ARTICLE 18. CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF
17 PUBLIC ACCOUNTS
18 SECTION 18.01. Subsection (d I , Section 403.0551,
19 Government Code, is amended to read as follows:

20 (dl· This section does not authorize the comptroller to
21 deduct the amount of a state employee's indebtedness to a state
22 agency from any amount of compensation owed by the agency to the·
23 employee, the employee's successor, or the assignee of the employee
24 or successor. In this subsection, "compensation" has the meaning
25 assigned by Section 403.055 and ["eelllfjeRsati9R,") "indebtedness,"
26 "state agency," "state employee," and "successor" have the meanings
27 assigned by Section 666.001.
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S.B. No. 1811
1 SECTION 18.02. Subsection (h), Section 404.022, Government
2 Code, is amended to read as fo1rows:
3 (h) The comptroller may execute a simplified version of a
4 depository agreement with an eligible institution desiring to hold
5 [$98,QQQ at less ial state deposits that are fully insured by the
6 Federal Deposit Insurance Corporation or the National Credit Union

7 Share Insurance Fund.
8 SECTION 18.03. Subsection (a), Section 411.109, Government
10 (a) The comptroller is entitled to obtain from the
11 department criminal history record information maintained by the
12 department that the comptroller believes is necessary for the
13 enforcement or administration of Chapter lSI, 152, [Hi~,] 154, [~l
14 ISS, or 162, Tax Code, including criminal history record

15 information that relates to a person who is:
16 (1) an applicant for a permit under any of those
17 chapters;
18 (2) a permit holder under any of those chapters;
19 (3) an officer, director, stockholder owning 10
20 percent or more of the outstanding stock, partner, owner, or
21 managing employee of an applicant Or permit holder under any of
22 those chapters that is a corporation, association, joint venture,
23 syndicate, partnership, or propr ietor ship;
24 (4) believed to have violated any of those chapters;
25 or
26 (5) being considered by the comptroller for employment
27 as a peace officer.
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1 SECTION 18.04. Subsection (d), Section 403.0551,

2 Government Code, as amended by this article, applies to a deduction
3 made on or after the effective date of this Act for an indebtedness
4 to a state agency regardless of:
5 (1) the date the indebtedness accrued 1 or
6 (2) the dates of the pay period for which the
7 compensation from which the indebtedness is deducted is earned.
8 ARTICLE 19. PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND
9 OTHER MATERIALS
10 SECTION 19.01. Subsection (c), Section 61.539, Education
12 (c) As soon as practicable after each state fiscal year, the
13 board [ee~trellerl shall prepare a report for that fiscal year of
14 the number of students registered in a medical branch, school, or
15 college, the total amount of tuition charges collected by each
16 institution, the total amount transferred to the comptroller under
17 this section, and the total amount available in the physician
18 education loan repayment program account for the repayment of
19 student loans of physicians under this subchapter. The board
20 [eem~trellerl shall deliver a copy of the report to [tae seara aRa
21 ~l the governor, lieutenant governor, and speaker of the house of
22 representatives not later than January 1 following the end of the
23 fiscal year covered by the report.
24 SECTION 19.02. Subsection (c), Section 5.05, Tax Code, is
25 amended to read,as follows:
26 (c) The comptroller shall electronically pUblish all
27 materials under this section [~IB'/iae '"ithBlit eaaI~e aRe aB~Y af
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1 all B\atexials 1:9 effieials af leBal 99\'811=11"881= 'n'A9 are r80pSRsihle]
2 for administering the property tax system. [If a leBal geverameat
3 effieial reijQests mere taaR eRe ee~y, tAB 8e~traller may 8aarge a
4 reas8Rahle fee t8 attest tHe seats af f)rifltiR§ aRe aistris1:1eiR§ the
5 materials.] The comptroller shall make the materials available to
6 local governmental officials and members of the public but may
7 charge a reasonable fee to offset the costs of preparing, printing.L.
8 and distributing the materials.
9 SECTION 19.03. Section 5.06, Tax Code, is amended to read as
10 follows:
11 Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES. [+.0+] The
12 comptroller shall prepare and electronically publish a pamphlet
13 explaining the remedies available to dissatisfied taxpayers and the
14 procedures to be followed in seeking remedial action. The
15 comptroller shall include in the pamphlet advice on preparing and
16 presenting a protest.
17 [(e) '±'ke Ball\lltraller Bkall flraviEle r.litka~t Bkarge a
18 reao9R3s1e R\ifRSer sf eepies af tae fJaJRPalet ta afl~t perseR 8Fl
19 {BEllies,£:. 'PAS cBHtptreller may 8ilar§€ a perseR \>laB reEiHesta RU:lltiple
20 sepies af tHe pampHlet a leas8Rasle fee 1;8 a££e8t tRe eests a£

21 13riRtifl§' aAa Eiistril:HitifHj tRese sSfJies. 'rae e9JRf)treller at its
22 ElisBretiBa Bkall ElBtermifte tke ftl:lmller af 8efliee tRat a flerseft may
23 reeeive \.'itl=l91:lt eRar~e.l
24 SECTION 19.04. Section 5.09, Tax Code, is amended to read as

25 follows:
26 Sec. 5.09. BIENNIAL [ANNYAL] REPORTS. (al The comptroller
27 shall prepare a biennial [fl~eli6k aft aRa~al] report of [~
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S.B. No. 1811
1 e~eratieAS af tAB appraisal aistrietBi ~Re re~ert BRall iRsIYQe

2 far saaR ap~raisal eistriet, 8a8ft ee~Rty, aRa saaR 88R9sl aistriet
3 aRe may iRelliee fer etaer talliRlj IiRitS] the total appraised
4 va1ues[J assessee vallies,] and taxable values of taxable property
5 by category [slaBs ef ~re~ertYJ tae assessmeRt ratieJ] and the tax
6 rates of each county, municipality. and school district in effect
7 for the two years preceding the year in which the report is prepared
8 [~].
9 (b) Not later than December 31 of each even-numbered year,

10 the [~] comptroller shall~
11 (1) electronically publish on the comptroller's

12 Internet website the [eeliver a ee~y ef easR aRRlial] report
13 required by [fllislisaee IiReer] Subsection (a); and
14 (2) notify· [ef tais eeeHeR tel the governor, the
15 lieutenant governor, and each member of the legislature that the
16 report is available on the website.
17 SECTION 19.05. The following are repealed:
18 (1) Sections 403.030 and 552.143(e), Government Code;
19 and
20 (2) Subchapter F, Chapter 379A, Local Government Code.
21 ARTICLE 20. SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE
22 SECTION 20.01. Subsection (bl, Section 101.053, Insurance
24 (b) Sections 101.051 and 101.052 do not apply to:
25 (1) the lawful transaction of surplus lines insurance
26 under Chapter 981;
27 (2) the lawful transaction of reinsurance by insurers;
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1 (3) a transaction in this state that:
2 (A) involves a policy that:
3 (i) is lawfully solicited, written, and
4 deliver ed outside this state; and
5 (ii) covers, at the time the policy is
6 issued, only subjects of insurance that are not resident, located,
7 or expressly to be performed in this state; and
8 (B) takes place after the policy is issued;
9 (4) a transaction:
10 (A) that involves an insurance contract
11 independently procured by the insured from an insurance company not
12 authorized to do insurance business in this state through
13 negotiations occurring entirely outside this state;
14 (B) that is reported; and
15 (C) on which premium tax, if applicable, is paid
16 in accordance with Chapter 226;
17 (5) a transact ion in this state that:
18 (A) involves group life, health, or accident
19 insurance, other than credit insurance, and group annuities in
20 which the master policy for the group was lawfully issued and
21 delivered in a state in which the insurer or person was authorized
22 to do insurance business; and
23 (B) is authorized by a statute of this state;
24 (6) an activity in this state by or on the sole behalf
25 of a nonadmitted captive insurance company that insures solely:
26 (A) directors' and officers' liability insurance
27 for the directors and officers of the company's parent and
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1 affiliated companies;
2 (B) the risks of the company's parent and
3 affiliated companies; or
4 (C) both the individuals and entities described
5 by Paragraphs (A) and (B);
6 (7) the issuance of a qualified charitable gift
7 annuity under Chapter 102; or
8 (8) a lawful transaction by a servicing company of the
9 Texas workers' compensation employers' rejected risk fund under
10 Section 4.08, Article 5.76-2, as that article existed before its
11 repeal.

14 Sec. 225.001. DEFINITIONS [QEFINn'IQN]. In this chapter..:..
15 (1) "Affiliate" means, with respect to an insured, a
16 person or entity that controls, is controlled by, or is under common
17 control with the insured.
18 (2) "Affiliated group" means a group of entities whose
19 members are all affiliated.
20 (3) "Control" means, with respect to determining the
21 home state of an affiliated entity:
22 (A) to directly or indirectly, acting through one
23 or more persons, own, control, or hold the power to vote at least 25
24 percent of any class of voting security of the affiliated entity; or
25 (B) to control in any manner the election of the
26 maiority of directors or trustees of the affiliated entity.
27 (4) . "Home state" means:
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1 (A) for an insured that is not an affiliateo,
2 group described by Paragraph (B):
3 (i) the state in which the insureo
4 maintains the insured's principal residence, if the insured is ar-
5 individual;
6 (ii) the state in which an insured that i~:
7 not an individual maintains its pr incipa1 place of business; or

8 (iii) i f 100 percent of the insured risk i~,
9 located outside of the state in which the insured maintains thE~
10 insured's principal residence or maintains the insured's principal;

11 place of business, as applicable, the state to which the largest.
12 percentage of the insured's taxable premium for the insurancE~
13 contract that covers the risk is allocated; or

14 (B) for an affiliated group with respect to whict,
15 more than one member is a named insured on a single insuranCE.
16 contract sUbject to this chapter, the home state of the member, af'
17 determined under Paragraph (A), that has the largest percentage o(
18 premium attributed to it under the insurance contract.
19 (5) "Premium" means any payment made in consideratiorl
20 for insurance and [, "plemi,lim"] includes:
21 (A) [+*-}.] a premium;
22 (B) premium deposits;
23 ill [+U] a membership fee;
24 (0) a registration fee;
25 ill [~] an assessment;
26 ill [.f4+] dues; and
27 (G) [+s+] any other compensation given in
82R32127 JJT-O 58
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1 consideration for surplus lines insurance.
4 Sec. 225.002. APPLICABILITY OF CHAPTER. This chapter
5 applies to a surplus lines agent who collects gross premiums for
6 surplus lines insurance for any risk in which this state is the home
7 state of the insured.
9 by adding Subsections (a-I) and (f) and amending Subsections (b),
10 (c), and (e) to read as follows:
11 (a-I) Consistent with 15 U.S.C. Section 8201 et seq., this
12 state may not impose a premium tax on nonadmitted insurance
13 premiums other than premiums paid for insurance in which this state
14 is the home state of the insured.
15 (b) Taxable gross premiums under this section are based on
16 gross premiums written or received for surplus lines insurance
17 placed through an eligible surplus lines insurer during a calendar
18 year. Notwithstandinq the tax basis described by this subsection,
19 the comptroller by rule may establish an alternate basis for
20 taxation for multistate and single-state policies for the purpose
21 of achievinq uniformity.
22 (c) If a surplus lines insurance policy covers risks or
23 exposures only partially located in this state, and this state has
24 not entered into a cooperative agreement, reciprocal agreement, or
25 compact with another state for the collection of surplus lines tax
26 as authorized by Chapter 229, the tax is computed on the entire
27 policy [perti9R 9£ taelpremium for any policy in which this state
82R32127 JJT-O 59
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S.B. No. 1811

1 is the home state of the insured [teat is ~re~erl~' alleeatea te a
2 lislE ex eUfJ9S1:1le leea'eea ia tRia state].
3 (e) Premiums ['!'ke fellelJiREj ~reHli\iHl6 are Ret tauaele iR

4 tkis'statee
5 [(1) jiremi1:l1R8 pIsperly alleeateEi te 3Rs6ker state 1ikat
6 are sliJeaifisally el£em13t flam tal£atieR ift tHat sta~e, aRe
7 [(d) ~reHli\iHls] on risks or exposures that are properly

8 allocated to federal or international waters or are under the
9 jurisdiction of a foreign government are not taxable in this state.
10 (f) If this state enter s a cooperat ive agreement,
11 reciprocal agreement, or compact with another state for the
12 allocation of surplus lines tax as authorized by Chapter 229, taxes
13 due on multistate policies shall be allocated and reported in
14 accordance with the agreement or compact·.
17 Sec. 225.005. TAX EXCLUSIVE. The tax imposed by this
18 chapter is a transaction tax collected by the surplus lines agent of
19 record and is in lieu of any [~] other transaction [iRS\iraRee]
20 taxes on these premiums.

22 by adding Subsection (d) to read as follows:
23 .(d) Notwithstanding Subsections (a), (b), and (c), if this
24 state enters a cooperative agreement, reciprocal agreement, or
25 compact with another state for the allocation of surplus lines tax
26 as author ized by Chapter 229, the tax shall be allocated and
27 reported in accordance with the terms of the agreement or compact.
82R32127 JJT-O 60
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3 Sec. 226.051. DEFINITIONS [gEFINn'IO~1] • In this
4 subchapter.:..
5 (1) "Affiliate" means, with respect to an insured, a
6 person or entity that controls, is controlled by, or is under common
7 control with the insured.
8 (2) "Affiliated group" means a group of entities whose
9 members are all affiliated.
10 (3) "Control" means, with respect to determining the
11 home state of an affiliated entity:
12 (A) to directly or indirectly, acting through one
13 or more persons, own, control, or hold the power to vote at least 25
14 percent of any class of voting security of the affiliated entity; or
15 (B) to control in any manner the election of the
16 majority of directors or trustees of the affiliated entity.
17 (4) "Home state" means:
18 (A) for an insured that is not an affiliated
19 group described by Paragraph (B):
20 (i) the state in which the insured
-'-=-<---=.;;:..........;::..::==--..:::.:.:...-..:==_..::.:.::.=--.....;::.==-==
21 maintains the insured's principal residence, if the insured is an
22 individual;
23 (ii) the state in which an insured that is

24 not an individual maintains its principal place of business; or
25 (iii) if 100 percent of the insured risk is
26 located outside of the state in which the insured maintains the
27 insured's principal residence or maintains the insured's principal
82R32127 JJT-D 61
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1 place of business, as applicable, the state to which the largest
2 percentage of the insured's taxable premium for the insurance
3 contract that covers the risk is allocated; or
4 (B) for an affiliated group with respect to which
5 more than one member is a named insured on a single insurance
6 contract subject to this chapter, the home state of the member, as
7 determined under Paragraph (A), that has the largest percentage of
8 premium attributed to it under the -insurance contract.
9 (5) "Independently procured insurance" means
10 insurance procured directly by an insured from a nonadmitted,
11 insurer.
12 (6) "Premium" means any payment made in consideration,
13 for insurance and [, "~remi~m"] includes [aRy eeRBi~eratieR fer
14 iftS~raRee, iRslYaiA~]:
15 (A) [{-»] a premium;

16 (B) premium deposits;
17 ill [+;1+] a membership fee; [eT]
18 (D) a registration fee;
19 (E) an assessment;
20 l!l [~] dues; and
21 (G) any other compensation given in
22 consideration for insurance.

25 Sec. 226.052. APPLICABILITY OF SUBCHAPTER. This subchapter
26 applies to an insured who procures an - independently procured
27 insurance contract for any risk in which this state is the home,
82R32127 JJT-D 62
• ..
2
3
6
7
8
9
10
11
12
13
14
15
16 t1'lis state] .
17 (d) If this state enters into a cooperative agreement,
18 reciprocal aqreement, or compact with another state for the
19 allocation of nonadmitted insurance taxes as authorized by Chapter
20 229, the tax due on multistate policies shall be allocated and
21 reported in accordance with the aqreement or compact.
24 Sec. 981.008. SURPLUS LINES INSURANCE PREMIUM TAX. The
25 premiums charged for surplus lines insurance are subject to the
26 premium tax, if applicable, imposed under Chapter 225.
27 SECTION 20.11. The following provisions are repealed:
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1 (1) Sections 225.004(d) and (d-1), Insurance Code; and
2 (2) Section 226.053(b-1), Insurance Code.
3 SECTION 20.12. The changes in law made by this article to
4 Chapters 225 and 226, Insurance Code, apply only to an insurance
5 policy that is delivered, issued for delivery, or renewed on or
6 after July 21, 2011. A policy that is delivered, issued for
7 delivery, or rene\'led before July 21, 2011, is governed by the law as
8 it existed immediately before the effective date of this Act, and
9 that law is continued in effect for that purpose.
14 immediate effect, this article takes effect September I, 2011.
15 ARTICLE 21. FISCAL MATTERS CONCERNING EARLY HIGH SCHOOL GRADUATION
16 SECTION 21.01. Subchapter K, Chapter 56, Education Code, is
17 amended by adding Sect ion 56.2012 to read as follows:

18 Sec. 56.2012. EXPIRATION OF SUBCHAPTER; ELIGIBILITY
19 CLOSED. (a) This subchapter expires September 1,2017.
20 (b) Notwithstanding Section 56.203, a person may not
21 receive an award under this subchapter if the person graduates from
22 high school on or after September 1, 2011.
23 SECTION 21.02. Subsection (b), Section 54.213, Education

25 (b) [SaviR~s te t~e fe~R~atieR sB~eel f~R~ t~at eBB~r as a
26 reo1t11t Bf t1=l.e Early Hi§A Soheal Cras'datiaa Sel:lelarsRif) pre§ram
27 Greatea iR S~Beft~ter X, CR~ter ee, aRe tHat are Ret reij~iree fer
82R32127 JJT-D 64
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S.B. No. 1811
1 taB f~AaiR§ af state Bzasi's fez taitisR aRB m3Raatery fees ~A8er
2 SeetieR §',~Q4 Sf s6aeel aistriet ereeits HRBer SeetieR §,.~07§
3 sHall se usea first te iJreviae t:~iti9R eueRlfltieRS loifuler SeetiaR

4 §4.Jld. Aay Bf tR8SS saviR~s remaiAiR~ aftez pr9vieiR~ tQitien
5 8uemptieFl6 uReer SestiaR §4.~ld Gftall se aGee 1;8 :pleviae tl:iitisB

6 ellelllptieRS IiReer SeetieR §4.:H4, 1 The Texas Education Agency shall
7 [a*&&l accept and make available to provide tuition exemptions
8 under Section 54.214 gifts, grants, and donations made to the
9 agency for that purpose. The commissioner of education shall
10 transfer those funds to the Texas Higher Education coordinating
11 Board to distribute to institutions of higher education that
12 provide exemptions under that section [PayllleRt ef fliRes \iReer tRis
13 sa~8e8ti9R saall se mass in tRB maARer previaed sy Seeti9R §e:dQ7
14 fer state ereeits IiReer SlilleRapter K, ~J:tapter §6].
15 SECTION 21.03. Section 56.210, Education Code, is repealed.
16 ARTICLE 22. FISCAL MATTERS CONCERNING RETIRED TEACHERS
17 SECTION 22.01. Notwithstanding Section 825.404(a),
18 Government Code, for the state fiscal year ending August 31, 2012,
19 only, the amount of the state contribution to the Teacher
20 Retirement System of Texas under that section may be less than the
21 amount contributed by members dur ing that fiscal year.
22 SECTION 22.02. Notwithstanding Section 1575.202(a),
23 Insurance Code, for the state fiscal year ending August 31, 2013,
24 only, the state may contribute an amount to the retired school
25 employees group insurance fund that is less than one percent of the
26 salary of each active employee.
82R32127 JJT-D 65
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1 ARTICLE 23. COASTAL EROSION
2 SECTION 23.01. Section 33.608, Natural Resources Code, is
4 Sec. 33.608. REPORT TO LEGISLATURE. (a) Each biennium, the
5 commissioner shall submit to the legislature a report listing:
6 (1) each critical erosion area;
7 (2) each proposed erosion response study or proj ect;
8 (3) an estimate of the cost of each proposed study or
9 project described by Subdivision (2);
10 (4) each coastal erosion response study or project
11 funded under this subchapter during the preceding biennium;
12 (5) the economic and natural resource benefits fron:
13 each coastal erosion response study or project described by'
14 Subdivision (4);
15 (6) the financial status of the account; and
16 (7) an estimate of the cost of implementing this
17 subchapter dur ing the succeeding biennium.
18 (b) The report must include a plan for coastal erosion.
19 response studies and projects that may be funded, wholly or partly,.
20 from money in the account and may be undertaken during the next le
21 or more years.
22 ARTICLE 24. FISCAL MATTERS CONCERNING PARKS AND WILDLIFE
23 CONTRIBUTIONS
24 SECTION 24.01. Subchapter D, Chapter 502, Transportat ioI'.
25 Code, is amended by adding Sections 502.1747 and 502.1748 to read as
26 follows:
27 Sec. 502.1747. VOLUNTARY CONTRIBUTION TO PARKS AND WILDLIFE.
82R32127 JJT-O 66
S.B. No. 1811
1 DEPARTMENT. (a) When a person registers or renews the registration
2 of a motor vehicle under this chapter, the person may contribute $5
3 or more to the Parks and Wildlife Department.
4 (b) The department shall:
5 (1) include space on each motor vehicle registration
6 renewal notice, on the page that states the total fee for
7 registration renewal, that allows a person renewing a registration
8 to indicate the amount that the person is voluntarily contributing
9 to the state parks account;
10 (2) provide an opportunity to contribute to the state
11 parks account similar to the opportunity described by Subsection
12 (a) and in the manner described by Subdivision (1) in any
13 registration renewal system that succeeds the system in place on
14 September 1, 2011; and
15 (3) provide an opportunity for a person to contribute
16 to the state parks account during the registration renewal process
17 on the department's Internet website.
18 (c) If a person makes a contribution under this section and
19 does not pay the full amount of a registration fee, the county
20 assessor-collector may credit all or a portion of the contribution
21 to the person's registration fee.
22 (d) The county assessor-collector· shall send any
23 contribution made under this section to the comptrOller for deposit
24 to the credit of the state parks account under Section 11.035, Parks
25 and Wildlife ·Code. Money received by the Parks and Wildlife
26 Department under this section may be used only for the operation and
27 maintenance of state parks, historic sites, or natural areas under
82R32127 JJT-D 67
S.B. No. 1811
1 the iur isdiction of the Parks and Wildlife Department.
2 Ie) The department shall consult with the Parks and Wildlife~
3 Department in performing the department I s duties under thi~:
4 section.
5 Sec. 502.1748. DISPOSITION OF CERTAIN VOLUNTARY
6 CONTRIBUTIONS.' If a person makes a voluntary contribution undel~
7 Section 502.1746 or 502.1747 at the time the person registers Ol~

8 renews the registration of a motor vehicle under this chapter but,
9 the person does not clearly specify the entity to which the persor~
10 intends to contribute, the county assessor-collector shall divide:

11 the contribution between the entities authorized to receivE:
12 contr ibut ions under those sect ions.
13 SECTION 24.02. Sections 502.1747 and 502.1748,
14 Transportation Code, as added by this article, apply only to a motor
15 vehicle registration renewal notice issued for a registration that:
16 expires on or after January 1, 2012.
17 ARTICLE 25. FISCAL MATTERS CONCERNING OIL AND GAS REGULATION
18 SECTION 25.01. Subsection (c), Section 81.0521, Natural
19 Resources Code, is amended to read as follows:
20 (c) Two-thirds of the proceeds from this fee, excludin<[
21 [iR8l~aiR§1 any penalties collected in connection with the fee,
22 shall be deposited to the oil and gas regUlation and [eil fiela]
23 cleanup fund as provided by Section 81.067 [910111].
24 SECTION 25.02. Subchapter C, Chapter 81, Natural Resource!;
25 Code, is amended by adding Sections 81.067 through 81.070 to read aB
26 follows:
27 Sec. 81. 067. OIL AND GAS REGULATION AND CLEANUP FUND ..
82R32l27 JJT-D 68
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S.B. No. 1811

1 (a) The oil and gas regulation and cleanup fund is created as an
2 account in the general revenue fund of the state treasury.
3 (b) The commission shall certify to the comptroller the date
4 on which the balance in the fund eguals or exceeds $20 million. The
5 oil-field cleanup regulatory fees on oil and gas shall not be
6 collected or required to be paid on or after the first day of the
7 second month following the certification, except that the
8 comptroller shall resume collecting the fees on receipt of a
9 commission certification that the fund has fallen below $10
10 million. The comptroller shall continue collecting the fees until
11 collections are again suspended in the manner provided by this
12 subsection.
13 (c) The fund consists of:
14 (1) proceeds from bonds and other financial security
15 reguired by this chapter and benefits under well-specific plugging
16 insurance policies described by Section 91.104(c) that are paid to
17 the state as contingent beneficiary of the policies, subject to the
18 refund provisions of Section 91.1091, if applicable;
19 (2) private contributions, including contributions
20 made under Section 89.084;
(3) expenses collected under Section 89.083;
(4) fees imposed under Sect ion 85.2021;
(5) costs recovered under Section 91.457 or 91.459;
(6) proceeds collected under Sections 89.085 and
(7) interest earned on the funds deposited in the
82R32127 JJT-O 69
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S • B. No. 18ll
1 (8) oil and gas waste hauler permit application fees
2 collected under Section 29.015, Water Code;
3 (9) costs recovered under Section 91.113(f);
4 (10) hazardous oil and gas waste generation fees
5 collected under Section 91.605;
6 (11) oil-field cleanup regulatory fees on oil
7 collected under Section 81.116;
8 (12) oil-field cleanup regulatory fe.es on gas,
9 collected under Sect ion 81.117;
10 (13) fees for a reissued certificate collected under
11 Section 91. 707;
12 (14) fees collected under Section 91.1013;
13 (15) fees col1ected under Section 89.088;
14 (16) fees collected under Section 91.142;
15 (17) fees collected under Section 91. 654;
16 (18) costs recovered under Sect ions 91. 656 and 91. 657;
17 (19) two-thirds of the fees collected under Section
18 81.0521;
19 (20) fees collected under Sections 89.024 and 89.026;
20 (21) legislative appropriations; and
21 (22) any surcharges col1ected under Section 81.070.
22 Sec. 81.068. PURPOSE OF OIL AND GAS REGULATION AND CLEANUP
23 FUND. Money in the oil and gas regulation and cleanup fund may be
24 used by the commission or its employees or agents for any purpose
25 related to the regulation of oil and gas development, including oil

26 and gas monitoring and inspections, oil and gas remediation, oil
27 and gas well plugging, public information and services related to
82R32127 JJT-D 70
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S.B. No. 1811

1 funds, or surface locations remediated is at least five percent
2 less than the number projected in the applicable goal established
3 under Subsection (a), an explanation of the reason for the
4 variance; and
5 (2) any additional information or data requested in
6 writing by the Legislative Budget Board.
7 (c) The commission shall submit to the legislature and make
8 available to the public, annually, a report that reviews the extent
9 to which money provided under Section 81.067 has enabled the
10 commission to better protect the environment through oil-f ield
11 cleanup actiVities. The report must include:
12 (1) the performance goals established under
13 Subsection (a) for that state fiscal year, the commission's
14 progress in meeting those performance goals, and, if the number of
15 orphaned wells plugged with state-managed funds, abandoned sites
16 investigated, assessed, or cleaned up with state funds, or surface
17 locations remediated is at least five percent less than the number
18 projected in the applicable goal established under Subsection (a),
19 an explanation of the reason for the variance;
20(2) the number of orphaned wells plugged with
21 state-managed funds, by region;
22 (3) the number of wells orphaned, by region;
23 (4) the number of inactive wells not currently in
24 compliance with commission rules, by region;
25 (5) the status of enforcement proceedings for all
26 wells in violation of commission rules and the period during which
27 the wells have been in violation, by region in which the wells are
82R32127 JJT-D 72
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S.B. No. 1811

1 located;
2 (6) the number of surface locations remediated, by
3 region;
4 (7) a detailed accounting of expenditures of money in
5 the fund for oil-field cleanup activities, including expenditures
6 for plugging of orphaned wells, investigation, assessment, and
7 cleaning up of abandoned sites, and remediation of surface
8 locations;
9 (8) the method by which the commission sets priorities
10 by which i t determines the order in which orphaned wells are
11 plugged;
12 (9) a projection of the amount of money needed for the
13 next biennium for plugging orphaned wells, investigating,
14 assessing, and cleaning up abandoned sites, and remediating surface
15 locations; and
16 (10) the number of sites successfully remediated under
17 the voluntary cleanup program under Subchapter 0, Chapter 91, by
18 region.
19 Sec. 81.070. ESTABLISHMENT OF SURCHARGES ON FEES.
20 (a) Except as provided by Subsection (b), the commission by rule
21 shall provide for the imposition of reasonable surcharges as
22 necessary on fees imposed by the commission that are required to be
23 deposited to the credit of the oil and gas regulation and cleanup
24 fund as provided by Section 81.067 in amounts sufficient to enable
25 the commission to recover the costs of performing the functions
26 specif ied by Section 81. 068 from those fees and surcharges.
27 (b) The commission may not impose a surcharge on an
82R32127 JJT-D 73
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S.B. No. 1811

1 oil-field cleanup regulatory fee on oil collected under Section
2 81.116 or an oil-field cleanup regulatory fee on gas collected
3 under Sect ion 81. 117.
4 (c) The commission by rule shall establish a methodology for
5 determining the amount of a surcharge that takes into account:
6 (1) the time required for regulatory work associatei
7 with the activity in connection with which the surcharge is
8 imposed;
9 (2) the number of individuals or entities from which
10 the commission's costs may be recovered;
11 (3) the effect of the surcharge on operators of all
12 sizes, as measured by the number of oil or gas wells operated;
13 (4) the balance in the oil and gas regulat ion aT. d
14 cleanup fund; and
15 (5) any other factors the commission determines to t~
16 important to the fair and equitable imposition of the surcharge.

17 (d) The commission shall collect a surcharge on a fee at tt,e
18 time the fee is collected.
19 (e) A surcharge collected under this section shall be
20 deposited to the credit of the oil and gas regulation and clean~£
21 fund as provided by Section 81.067.

22 (f) 'A surcharge collected under this section shall nc:!
23 exceed an amount equal to 185 percent of the fee on which it i.s
24 imposed.
25 SECTION 25.03. Section 81.115, Natural Resources Code, j,s
27 Sec. 81.115. APPROPRIATIONS [PA¥KEW~Sl TO COMMISSION FC'R
82R32127 JJT-O 74
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S.B. No. 1811
lOlL AND GAS REGULATION AND CLEANUP PURPOSES [QIVISIQN]. Money

2 appropriated to the [eil aaa §as aivisiea ef tAe] commission under
3 the General Appropriations Act for the purposes described by
4 Section 81.068 shall be paid from the oil and gas regulation and
5 cleanup fund [Geaeral Revealie Fliaa] .
6 SECTION 25.04. Subsections (d) and (e), Section 81.116,
7 Natural Resources Code, are amended to read as follows:
8 (d) The comptroller shall suspend collection of the fee in
9 the manner provided by Section 81.067 [91. 111]. The exemptions and
10 reductions set out in Sections 202.052, 202.054, 202.056, 202.057,
11 202.059, and 202.060, Tax Code, do not affect the fee imposed by
12 this section.
13 (e) Proceeds from the fee, excluding [iaslliaia§] any
14 penalties collected in connection with the fee, shall be deposited
15 to the oil and gas regulation and [eil fiela] cleanup fund as
16 provided by Section 81.067 [91.111 ef tRis eeae].
17 SECTION 25.05. Subsect ions (d) and (e), Sect ion 81.117,
19 (d) The comptroller shall suspend collection of the fee in
20 the manner provided by Section 81.067 [91. Ill]. The exemptions and
21 reductions set out in Sections 201.053,201.057,201.058, and
22 202.060, Tax Code, do riot affect the fee imposed by .this sect ion.
23 (e) Proceeds from the fee, excluding [iasluaia§] any
24 penalties collected in connection with the fee, shall be deposited
25 to the oil and gas regulation and [eil fiela] cleanup fund as
26 provided by Section 81.067 [91.111 ef tRis eeae].
27 SECTION 25.06. Subsection (d), Section 85.2021, Natural
82R32l27 JJT-D 75
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S.B. No. 1811

2 (d) All fees collected under this section shall be deposited
3 in the oil and gas regulation and [state eil field] cleanup fund.
6 (d) An operator who files an abeyance of plugging report
7 must pay an annual fee of $100 for each well covered by the report.
8 A fee collected under this section shall be deposited in the oil and
9 gas regulation and [eil fielEl] cleanup fund.
10 SECTION 25.08. Subsection (dl, Section 89.026, Natural
12 (d) An operator who files documentation described b~
13 Subsection (a) must pay an annual fee of $50 for each well covered
14 by the documentation. A fee collected under this section shall be
15 deposited in the oil and gas regulation and [eil fiela] cleanup
16 fund.
19 (d) On successful plugging of the well by the well plugger,
20 the surface estate owner may submit documentation to the commission
21 of the cost of the well-plugging operation. The commission shall
22 reimburse the surface estate owner from money in the oil and gas,
23 regulation and [eil field] cleanup fund in an amount not to exceed
24 50 percent of the lesser of:
25 (1) the documented well-plugging costs; or
26 (2) the average cost incurred by the commission in the
27 preceding 24 months in plugging similar wells located in the same
82R32127 JJT-D 76
S.B. No. 1811
1 general area.
2 SECTION 25.10. Subsection (j), Section 89.083, Natural
4 (j) Money collected in a suit under this section shall be
5 deposited in the oil and gas regulation and [state ail fieldl
6 cleanup fund.
9 (d) The commission shall deposit money received from the
10 sale of well-site equipment or hydrocarbons under this section to
11 the credit of the oil and gas regulation and [eil fieldl cleanup
12 fund. The commission shall separately account for money and credit
13 received for each well.
14 SECTION 25.12. The heading to Section 89.086, Natural
16 Sec. 89.086. CLAIMS AGAINST OIL AND GAS REGULATION AND [~
17 QH. FIELl} 1 CLEANUP FUND.

18 SECTION 25.13. Subsections (a) and (h) through (k), Section
19 89.086, Natural Resources Code, are amended to read as follows:
20 (a) A person with a legal or equitable ownership or security
21 interest in well-site equipment or hydrocarbons disposed of under
22 Section 89.085 [ef tHis eedel may make a claim against the oil and
23 gas regulation and [eil-fieldl cleanup fund unless an element of
24 the transaction giving rise to the interest occurs after the
25 commission forecloses its statutory lien under Section 89.083.
26 (h) The commission shall suspend an amount of money in the
27 oil and gas regulation and [ail fieldl cleanup fund equal to the
82R32l27 JJT-D 77
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S.B. No. 1811

1 amount of the claim until the claim is finally resolved. If the
2 provisions of Subsection (k) [9f tRis se9ti9R) prevent suspension
3 of the full amount of the claim, the commission shall treat the
4 claim as two consecutively filed claims, one in the amount of funds
5 available for suspension and the other in the remaining amount of
6 the claim.
7 (i) A claim made by or on behalf of the operator or a
8 nonoperator of a well or a successor to the rights of the operator
9 or nonoperator is subject to a ratable deduction from the proceeds
10 or credit received for the well-site equipment to cover the costs
11 incurred by the commission in removing the equipment or
12 hydrocarbons from the -well or in transporting, storing, or
13 disposing of the equipment or hydrocarbons. A claim made by a
14 person who is not an operator or nonoperator is subject to a ratable
15 deduction for the costs incurred by the commission in removing the
16 equipment from the well. If a claimant is a person who is
17 responsible under law or commission rules for plugging the well or
18 cleaning up pollution originating on the lease or if the claimant
19 owes a penalty assessed by the commission or a court for a violation
20 of a commission rule or order, the commission may recoup from or
21 offset against a valid claim an expense incurred by the oil and gas
22 regulation and [eil fiela] cleanup fund that is not otherwise
23 reimbursed or any penalties owed. An amount recouped from,
24 deducted from, or offset against a claim under this subsection
25 shall be treated as an invalid portion of the claim and shall remain
26 suspended in the oil and gas regulation and [eil fiela) cleanup
27 fund in the manner provided by Subsection (j) [9f tRis seetiea) .
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1 (j) If the commission finds that a claim is valid in whole or
2 in part, the commission shall pay the valid portion of the claim
3 from the suspended amount in the oil and gas regulation and
4 [eil fielal cleanup fund not later than the 30th day after the date
5 of the commission's decision. If the commission finds that a claim
6 is invalid in whole or in part, the commission shall continue to
7 suspend in the oil and gas regulation and [eil fielal cleanup fund
8 an amount equal to the invalid portion of the claim until the period
9 during which the commission's decision may be appealed has expired
10 or, if appealed, during the period the case is under judicial
11 review. If on appeal the district court finds the claim valid in
12 whole or in part, the commission shall pay the valid portion of the
13 claim from the suspended amount in the oil and gas regulation and
14 [eil fielal cleanup fund not later than 30 days after the date the
15 court's judgment becomes unappealable. On the date the
16 commission's decision is not subject to judicial review, the
17 commission shall release from the suspended amount in the oil and
18 gas regulation and [eil fielal cleanup fund the amount of the claim
19 held to be invalid.
20 (k) If the aggregate of claims paid and money suspended that
21 relates to well-site equipment or hydrocarbons from a particular

22 well equals the total of the actual proceeds and credit realized
23 from the disposition of that equipment or those hydrocarbons, the
24 oil and gas regulation and [eil fielal cleanup fund is not liable
25 for any subsequently filed claims that relate to the same equipment
26 or hydrocarbons unless and until the commission releases from the
27 suspended amount money derived from the disposition of that
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1 equipment or those hydrocarbons. If the commission releases money,
2 then the commission shall suspend money in the amount of
3 subsequently filed claims in the order of filing.
4 SECTION 25.14. Subsection (b), Section 89.121, Natural
6 (b) Civil penalties collected for violations of this
.7 chapter or of rules relating to plugging that are adopted under this
8 code shall be deposited in the general revenue [state ail fiela
9 aleaR\j~] fund.
12 (c) Fees collected under this section shall be deposited in
13 the oil and gas regulation and [state ail fiela) cleanup fund.
14 SECTION 25.16. Section 91.108, Natural Resources Code, is
16 Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the
17 refund provisions of Section 91.1091, if applicable, proceeds from
18 bonds and other financial security required pursuant to this
19 chapter and benefits under well-specific plugging insurance
20 policies described by Section 91.104(c) that are paid to the state
21 as contingent beneficiary of the policies shall be deposited in the
22 oil and gas regulation and [ail fiela) cleanup fund and,
23 notwithstanding Sections 81.068 (91.11al and 91.113, may be usee
24 only for actual well plugging and surface remediation.
25 SECTION 25.17. Subsection (a), Section 91.109, Natura].
27 (a) A person applying for or acting under a commissior.
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1 permit to store, handle, treat, reclaim, or dispose of oil and gas
2 waste may be required by the commission to maintain a performance
3 bond or other form of financial security conditioned that the
4 permittee will operate and close the storage, handling, treatment,
5 reclamation, or disposal site in accordance with state law,
6 commission rules, and the permit to operate the site. However, this
7 section does not authorize the commission to require a bond or other
8 form of financial security for saltwater disposal pits, emergency
9 saltwater storage pits (including blow-down pits), collecting
10 pits, or skimming pits provided that such pits are used in
11 conjunction with the operation of an individual oil or gas lease.
12 Subj ect to the refund provisions of Section 91.1091 [af tais ease J ,
13 proceeds from any bond or other form of financial security required
14 by this section shall be placed in the oil and gas regulation and
15 [ail fielaJ cleanup fund. Each bond or other form of financial
16 security shall be renewed and continued in effect until the
17 conditions have been met or release is authorized by the
18 commission.
19 SECTION 25.18. Subsections (a) and (f), Section 91.113,
21 (a) If oil and gas wastes or other substances or materials
22 regulated by the commission under Section 91.101 are causing or are
23 likely to cause the pollution of surface or subsurface water, the
24 commission, through its employees or agents, may use money in the
25 oil and gas regulation and [ail fielsl cleanup fund to conduct a
26 site investigation or environmental assessment or control or clean
27 up the oil and gas wastes or other substances or mater ials if:
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1 (1) the responsible person has failed or refused tc,
2 control or clean up the oil and gas wastes or other substances OJ
3 mater ials after notice and opportunity for hear ing;

4 (2) the responsible person is unknown, cannot bE!
5 found, or has no assets with which to control or clean up the oil and
6 gas wastes or other substances or mater ials; or
7 (3) the oil and gas wastes or other substances OJ:
8 mater ials are causing the pollution of surface or subsurface water.
9 (f) If the commission conducts a site investigation 0;:
10 environmental assessment or controls or cleans up oil and gal,

11 wastes or other substances or materials under this section, thl~
12 commission may recover all costs incurred by the commission from

13 any person who was required by law, rules adopted by the commission,
14 or a valid order of the commission to control or clean up the oil and
15 gas wastes or other substances or materials. The commission by
16 order may require the person to reimburse the commission for those
17 costs or may request the attorney general to file suit against the
18 person to recover those costs. At the request of the commission,
19 the attorney general may file suit to enforce an order issued by the
20 commission under this subsection. A suit under this subsection may
21 be filed in any court of competent jurisdiction in Travis County.
22 Costs recovered under this subsection shall be deposited to the oil
23 and gas regulation and [eil fiele1] cleanup fund.
25 Resources Code, is amend.ed to read as follows:
26 (c) A penalty collected under this section shall be
27 deposited to the credit of the general revenue [ail field eleafHifl']
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1 fund [aeee~Rtl.
2 SECTION 25.20. Subsection (b), Section 91. 457, Natural

4 (b) If a person ordered to close a saltwater disposal pit
5 under Subsection (a) ref tRis seetieRl fails or refuses to close the
6 pit in compliance with the commission's order and rules, the
7 commission may close the pit using money from the oil and gas
8 regulation and [eil fielEll cleanup fund and may direct the attorney
9 general to file suits in any courts of competent jurisdiction in
10 Travis County to recover applicable penalties and the costs
11 incurred by the commission in closing the saltwater disposal pit.
14 (c) Any [fleRalties ell costs recovered by the attorney
15 general under this subchapter shall be deposited in the oil and gas
16 requlation and [eil fielEll cleanup fund.
17 SECTION 25.22. Subsection (e), Section 91.605, Natural
19 (e) The fees collected under this section shall be deposited
20 in the oil and gas regulation and [eil fielEll cleanup fund.
21 SECTION 25.23. Subsection (e), Section 91.654, Natural
23 (e) Fees collected under this section shall be deposited to

24 the credit of the oil and gas requlation and [eil fials] cleanup
25 fund under Section 81.067 [91.111].
26 SECTION 25.24. Subsection (b), Section 91. 707 , Natural
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1 (b) Fees collected under this section shall be deposited tl)
2 the oil and gas regulation and [eil fielal cleanup fund.
3 SECTION 25.25. The heading to Section 121.211, Utilitie:;
5 Sec. 121.211. PIPELINE SAFETY AND REGULATORY FEES.
6 SECTION 25.26. Subsections (a) through (e) and (h), Section
7 121.211, Utilities Code, are amended to read as follows:
8 (a) The railroad commission by rule may adopt .e [a~
9 iflSfleetieRl fee to be assessed annually against operators of

10 natural gas distribution pipelines and their pipeline facilities
11 and natural gas master metered pipelines and their pipeline
12 facilities subject to this title [el'laflterl.
13 (b) The railroad commission by rule shall establish the
14 method by which the fee will be calculated and assessed. In
15 adopting a fee structure, the railroad commission may consider any
16 factors necessary to provide for the equitable allocation among
17 operators of the costs of administering the railroad commission's
18 pipeline safety and regulatory program under this title [el'liiflterl.
19 (c) The total amount of fees estimated to be collected unde r
20 rules adopted by the railroad commission under this section may nc t
21 exceed the amount estimated by the railroad commission to be
22 necessary to recover the costs of administering the railro",d
23 commission's pipeline safety and regulatory program under thi.s
24 title [el'laflterl, excluding costs that are fUlly funded by federal
25 sources.
26 (d) The commission may assess each operator of a natural gas
27 distribution system subject to this title [el'liiflterl an annual
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1 [iRs~e8tieRl fee not to exceed one dollar for each service line
2 reported by the system on the Distr ibution Annual Report, Form RSPA
3 F7100. 1-1, due on Mar ch 15 of each year. The fee is due Mar ch 15 of
4 each year.
5 (e) The railroad commission may assess each operator of a
6 natural gas master metered system subject to this title [8ha~terl
7 an annual [iRs~e6tieRl fee not to exceed $100 for each master

8 metered system. The fee is due June 30 of each year.
9 (h) A fee collected under this section shall be deposited to
10 the credit of the general revenue fund to be used for the pipeline
11 safety and regulatory program.
12 SECTION 25.27. Section 29.015, Water Code, is amended to
13 read as follows:
14 Sec. 29.015. APPLICATION FEE. With each application for

15 issuance, renewal, or mater ial amendment of a permit, the applicant
16 shall submit to the railroad commission a nonrefundable fee of
17 $100. Fees collected under this section shall be deposited in the
18 oil and gas regulation and [ei1 fie1E11 cleanup fund.
19 SECTION 25.28. The following provisions of the Natural
20 Resources Code are repealed:
21 (1) Section 91.111; and
22 (2) Section 91.112.
23 SECTION 25.29. On the effective date of this article:
24 (1) the oil-field cleanup fund is abolished;
25 (2) any money remaining in the oil-field cleanup fund
26 is transferred to the oil and gas regulation and cleanup fund;
27 (3) any claim against the oil-field cleanup fund is
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1 transferred to the oil and gas regulation and cleanup fund; and
2 (4) any amount required to be deposited to the credi1:
3 of the oil-field cleanup fund shall be deposited to the credit of
4 the oil and gas regulation and cleanup fund.
5 ARTICLE 26. FISCAL MATTERS REGARDING LEASING CERTAIN STATE
6 FACILITIES
7 SECTION 26.01. The heading to Section 2165.2035, Government
9 Sec. 2165.2035. LEASE OF SPACE IN STATE-OWNED PARKING LOT5
10 AND GARAGES; USE AFTER HOURS.
11 SECTION 26.02. Subchapter E, Chapter 2165, Government Code,
12 is amended by adding Sections 2165.204, 2165.2045, and 2165.2046 t:>
13 read as follows:
14 Sec. 2165.204. LEASE OF SPACE IN STATE-OWNED PARKING LOT~
15 AND GARAGES; EXCESS INDIVIDUAL PARKING SPACES. Cal The commissio[!

16 may lease to a private individual an individual parking space in ~
17 state-owned parking lot or garage located in the city of Austin that

18 the commission determines is not needed to accommodate the regular
19 parking requirements of state employees who work near the lot or
20 garage and visitors to nearby state government offices.
21 (b) Money received from a lease under this section shall be
22 deposited to the credit of the general revenue fund.
23 Cc) In leasing a parking space under Subsection (a), the
24 commission must ensure that the lease does not restrict uses fer
25 parking lots and garages developed under Section 2165.203~~
26 including special event parking related to institutions of highEr

27 education.
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1 (dl In leasing or renewing a lease for a parking space under

2 Subsection (al, the commission shall give preference to an
3 individual who is currently leasing or previously leased the
4 parking space.
5 Sec. 2165.2045. LEASE OF SPACE IN STATE-OWNED PARKING LOTS
6 AND GARAGES; EXCESS BLOCKS OF PARKING SPACE. (al The commission
7 may lease to an institution of higher education or a local
8 government all or a significant block of a state-owned parking lot
9 or garage located in the city of Austin that the commission
10 determines is not needed to accommodate the regular parking
11 requirements of state employees who work near the lot or garage and
12 visitors to nearby state government offices.
13 {b l Money received from a lease under this section shall be
14 deposited to the credit of the general revenue fund.
15 {c l In leasing all or a block of a state-owned parking lot or
16 garage under Subsection (al, the commission must ensure that the
17 lease does not restrict uses for parking lots and garages developed
18 under Section 2165.2035, including special event parking related to
19 institutions of higher education.
20 {dl In leasing or renewing a lease for all or a block of a
21 state-owned parking lot or garage under Subsection (al, the
22 commission shall give preference to an entity that is currently
23 leasing or previously leased the lot or garage or a block of the lot
24 or garage.
25 Sec. 2165.2046. REPORTS ON PARKING PROGRAMS. On or before
26 October 1 of each even-numbered year, the commission shall submit a
27 report to the Legislative Budget Board describing the effectiveness
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1 of parking programs developed by the commission under this
2 subchapter. The report must, at a minimum, include:
3 (1) the yearly revenue generated by the programs;
4 (2) the yearly administrative and enforcement costs of
5 each program;·
6 (3) yearly usage statistics for each program; and
7 (4) initiatives and suggestions by the commission to:
8 (A) modify administration of the programs; and
9 (B) increase revenue generated by the programs.
12 each house, as pr ovided by Sect ion 39, Article III, Texa:;
13 Constitution. If this Act does not receive the vote necessary fOJ:
14 immediate effect, this.article takes effect September 1, 2011.
15 ARTICLE 27. FISCAL MATTERS RELATING TO SECRETARY OF STATE
16 SECTION 27.01. Section 405.014, Government Code, is amendecl
18 Sec. 405.014. ACTS OF THE LEGISLATURE. (a) At each
19 session of the legislature the secretary of state shall obtain thl~
20 bills that have become law. Immediately after the closing of each
21 session of the legislature, the secretary of state shall bind alL
22 enrolled bills and resolutions in volumes on which the date of th=
23 session is placed.
24 (b) As soon as practicable after the closing of each sessio~
25 of the legislature, the secretary of state shall publish ani

26 maintain electronically the bills enacted at that session. The
27 electronic publication must be:
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1 (1) indexed by bill number and assigned chapter number
2 for each bill; and
3 (2) made available by an electronic link on the
4 secretary of state's generally accessible Internet website.
5 SECTION 27.02. Subchapter B, Chapter 2158, Government Code,
6 is repealed.
7 SECTION 27.03. The change in law made by this article does
8 not apply to a contract for the publication of the laws of this
9 state entered into before the effective date of this article.
14 immediate effect , this article takes effect September 1, 2011.
15 ARTICLE 28. FISCAL MATTERS REGARDING ATTORNEY GENERAL
17 by adding Subsection (e) to read as follows:
18 (e) The attorney general may charge a reasonable fee for the
19 electronic filing of a document.
22 Sec. 402.0212. PROVISION OF LEGAL SERVICES--OUTSIDE
23 COUNSEL; FEES.
24 SECTION 28.03. Section 402.0212, Government Code, is
25 amended by amending Subsections (b) and (c) and adding Subsections
26 (d), (e), and (f) to read as follows:
27 (b) An invoice submitted to a state agency under a contract
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1 for legal services as described by Subsection (a) must be reviewed
2 by the attorney general to determine whether the invoice is
3 eligible for payment.
4 (c) An attorney or law firm must pay an administrative fee
5 to the attorney general for the review described in Subsection (b)
6 when entering into a contract to provide legal services to a state
7 agency.
8 (d) For purposes of this section, the functions of a hearin~;
9 examiner, administrative law judge, or other quasi-judicial

10 off icer are not considered legal selV ices .
11 .ill [+e+] This section shall not apply to the Texas Turnpike,
12 Author ity division of the Texas Department of Transportation.

13 (f) The attorney general may adopt rules as necessary t<1
14 implement and administer this section.

15 SECTION 28.04. Section 371.051. Transportation Code, i~;

17 Sec. 371.051. ATTORNEY GENERAL REVIEW AND EXAMINATION FEE.
18 (a) A toll project entity may not enter into a comprehensivl!
19 development agreement unless the attorney general reviews thl!
20 proposed agreement and determines that it is legally sufficient.
21 (b) A toll project entity shall pay a nonrefundabll~
22 examination fee to the attorney general on submitting a propose.!

23 comprehensive development agreement fOI' review. At the time th,~
24 examination fee is paid. the toll project entity shall also submi'~
25 for review a complete transcript of proceedings related to th'~
26 comprehensive development agreement.
27 (c) I f the toll project entity submits multiple propose,!
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1 comprehensive development agreements relating to the same toll
2 project for review, the entity shall pay the examination fee under
3 Subsection (b) for each proposed comprehensive development
4 agreement.
5 (d) The attorney general shall provide a legal sufficiency
6 determination not later than the 60th business day after the date
7 the examination fee and transcript of the proceedings reguired
8 under Subsection (b) are received. If the attorney general cannot
9 provide a legal sUfficiency determination within the
10 60-business-day period, the attorney general shall notify the toll
11 project entity in writing of the reason for the delay and may extend
12 the review per iod for not more than 30 business days.
13 (e) After the attorney general issues a legal sufficiency
14 determination, a toll project entity may supplement the transcript
15 of proceedings or amend the comprehensive development agreement to
16 facilitate a redetermination by the attorney general of the prior
17 legal sufficiency determination issued under this section.
18 (f) The toll project entity may collect or seek
19 reimbursement of the examination fee under Subsection (b) from the
20 private participant.
21 (g) The attorney general by rule shall set the examination
22 fee reguired under Subsection (b) in a reasonable amount and may
23 adopt other rules as necessary to implement this section. The fee
24 may not be set in an amount that is determined by a percentage of the
25 cost of the toll project. The amount of the fee may not exceed
26 reasonable attorney's fees charged for similar legal services in
27 the pr ivate sector.
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1 SECTION 28.05. The fee prescribed by Section 402.006,
2 Government Code, as amended by this a'rticle, applies only to a
3 document electronically submitted to the office of the attorney
4 general on or after the effective date of this article.
S SECTION 28.06. The fee prescr ibed by Section 402.0212,
6 Government Code, as amended by this art icle, applies only to
7 invoices for legal services submitted to the office of the attorney
8 general for review on or after the effective date of this article.
9 SECTION 28.07. The fee prescribed by Section 371.051,
10 Transportation Code, as amended by this article, applies only to a
11 comprehensive development agreement submitted to the office of the
12 attorney general on or after the effective date of this article.
13 SECTION 28.08. The changes in law made by this article appl:r
14 only to a contract for legal services between a state agency and a
15 private attorney or law firm entered into on or after the effective
16 date of this article. A contract for legal services between a state
17 agency and a private attorney or law firm entered into before the
18 effective date of this article is governed by the law in effect at
19 the time the contract was entered into, and the former law iE:
21 SECTION 28.09. Except as otherwise provided by thh:
22 article, this article takes effect immediately i f this Act receives:
23 a vote of two-thirds of all the members elected to each house, as:
24 provided by Section 39, Article III, Texas Constitution. I f thiB
25 Act does not receive the vote necessary for immediate effect, thiB
26 article takes effect September 1, 2011.
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1 ARTICLE 29. TEXAS PRESERVATION TRUST FUND ACCOUNT
2 SECTION 29.01. Subsections (a), (b), and (f), Section
3 442.015, Government Code, are amended to read as follows:
4 (a) Notwithstanding Section [Seet ieRs 4Q3, Q94 aRa] 403.095,
5 the Texas preservation trust fund account is a separate account in
6 the general revenue fund. The account consists of transfers made to
7 the account, loan repayments, grants and donations made for the
8 purposes of this program, proceeds of sales, income earned
9 [ea~RiR§s] on money in the account, and any other money received
10 under this section. Money in [QistrisytieRs frem] the account may
11 be used only for the purposes of this section and [may Ret se ysea]
12 to pay operating expenses of the commission. Money allocated to the
13 commission's historic preservation grant program shall be
14 deposited to the credit of the account. Income earned [EarRiR§s] on
15 money in the account shall be deposited to the credit of the'
16 account.
17 (b) The commission may use money in [aistrisytieRs frem] the
18 Texas preservation trust fund account to provide financial
19 assistance to public or private entities for the acquisition,
20 survey, restoration, or preservation, or for planning and
21 educational activities leading to the preservation, of historic
22 property in the state that is listed in the National Register of
23 Historic Places or designated as a State Archeological Landmark or
24 Recorded Texas Histor ic Landmark I or that the commission determines
25 is eligible for such listing or designation. The financial
26 assistance may be in the amount and form and according to the terms
27 that the commission by rule determines. The commission shall give
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1 priority to property the commission determines to be endangered b~f
2 demolition, neglect, underuse, looting, vandalism, or other threat

3 to the property. Gifts and grants deposited to the credit of thE'
4 account specifically for any eligible projects may be used only fOl
5 the type of projects specified. If such a specification is not:
6 made, the gift or grant shall be unencumbered and accrue to thE:
7 benefit of the Texas preservation trust fund account. If such il
8 specification is made, the entire amount of the gift or grant may bE!
9 used during any period for the project or type of project specified.
10 (f) The advisory board shall recommend to the commissioll
11 rules for administering this section [SI:I13eeetiel'ls (a) (e)].
12 SECTION 29.02. Subsections (h), (i), (j), (k), and (1),.
13 Section 442.015, Government Code, are repealed.

14 SECTION 29.03. The comptroller of public accounts and th.!
15 Texas Histor ical Commission shall enter into a memorandum 0::
16 understanding to facilitate the conversion of assets of the Texa:;
17 preservation trust fund account into cash for deposit into th,~
18 state treasury using a method that provides for the lowest amount o:E
19 revenue loss to the state.

20 SECTION 29.04. This article takes effect November 1, 2011.
21 ARTICLE 30. FISCAL MATTERS CONCERNING INFORMATION TECHNOLOGY
24 . Sec. 2054.380. FEES. (a) The department shall set an:!
25 charge a fee to each state agency that receives a service from a
26 statewide technology center in an amount sufficient to cover the
27 direct and indirect cost of providing the service.
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1 (b) Revenue derived from the collection of fees imposed
2 under Subsection (a) may be appropriated to the department for:
3 (I) developing statewide information resources
4 technology policies and planning under this chapter and Chapter
5 2059; and
6 (2) providing shared information resources technology
7 services under this chapter.
8 SECTION 30.02. Subsection (d), Section 2157.068,
10 (d) The department may charge a reasonable administrative
11 fee to a state agency, political subdivision of this state, or
12 governmental entity of another state that purchases commodity items
13 through the department in an amount that is sufficient to recover
14 costs associated with the administration of this section. Revenue
15 derived from the collection of fees imposed under this subsection
16 may be appropriated to the department for:
17 {I) developing statewide information resources
18 technology policies and planning under Chapters 2054 and 2059; and
19 (2) providing shared information resources technology
20 services under- Chapter 2054.
21 SECTION 30.03. Subsections (a) and (d), Section 2170.057,
22 Government Code, are amended to read as follows:
23 (al The department shall develop a system of billings and
24 charges for services provided in operating and administering the
25 consolidated telecommunications system that allocates the total
26 state cost to each entity served by the system based on
27 proportionate usage. The department shall set and charge a fee to
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1 SUBCHAPTER G. LIMIT ON STATE DEBT PAYABLE FROM GENERAL REVENUE FUND

2 Sec. 1231.151. DEFINITIONS. In this subchapter:
3 (1) "Maximum annual debt service" means the limitation
4 on annual debt service imposed by Section 49-j(a), Article III,
5 Texas Constitution.
6 (2) "State debt payable from the general revenue fund"
7 has the meaning assigned by Section 49-j(b), Article III, Texas
8 Constitution.
9 (3) "Unissued debt" means state debt payable from the
10 general revenue fund that has been author ized but not issued.
11 Sec. 1231.152. COMPUTATION OF DEBT LIMIT. In computing the
12 annual debt service in a state fiscal year on state debt payable
13 from the general revenue fund for purposes of determining whether
14 additional state debt may be authorized without exceeding the
15 maximum annual debt service, the board may employ any assumptions
16 related to unissued debt that the board determines are necessary to
17 reflect common or standard debt issuance practices authorized by
18 law, including assumptions regarding:
19 (1) interest rates;
20 (2) debt maturity; and

21 (3) debt service payment structures.
22 Sec. 1231.153. REPORT ON COMPUTATION. (a) The board shall
23 publish during each state fiscal year a report providing a detailed

24 descr iption of the method used to compute the annual debt service in
25 that fiscal year on state debt payable from the general revenue fund
26 for purposes of determining whether additional state debt may be
27 authorized. The report must describe:
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1 (1) the debt service included in the computationL.
2 including debt service on issued and unissued debt;
3 (2) the assumptions on which the debt service on
4 unissued debt was based; and
5 (3) any other factors required by law that affect the
6 computation.
7 (b) The board may publish the report required by this
8 section as a component of any other report required by la\'OL
9 including the annual report required by Section 1231.102, or as an
10 independent report. The board shall make the report available to
11 . the public.
12 SECTION 31. 02. The Bond Review Board shall publish the
13 initial report required by Section 1231.153, Government Code, a.s
14 added by this article, during the state fiscal year beginnir.g
16 SECTION 31. 03. This article takes effect immediately if
18 each house, as provided by Section 39, Article III, Texcls
21 ARTICLE 32. CONTINUING LEGAL EDUCATION REQUIREMENTS FOR ATTORNEY
22 EMPLOYED BY ATTORNEY GENERAL
23 SECTION 32.01. Section 81.113, Government Code, is amendHd
24 by adding Subsection (a-l) to read as follows:
25 (a-1) The state bar shall credit an attorney licensed :In
26 this state with meeting the minimum continuing leqal education
27 requirements of the state bar for a reporting year if during the
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1 reporting year the attorney is employed full-time as an attorney by

2 the office of the attorney general. An attorney credited for
3 continuing legal education under this subsection must meet the
4 continuing legal education requirements of the state bar in legal
5 ethics or professional responsibility. This subsection expires
6 January 1, 2014.
7 SECTION 32.02. Subchapter A, Chapter 402, Government Code,
8 is amended by adding Section 402.010 to read as follows:
9 Sec. 402.010. CONTINUING LEGAL EDUCATION PROGRAMS. The
10 office of the attorney general shall recognize, prepare, or
11 administer continuing legal education programs that meet
12 continuing legal education requirements imposed under Section
13 81.113(c) for the attorneys employed by the office. This section
14 expires January 1,2014.
15 SECTION 32.03. Section 81.113, Government Code, as amended
16 by this article, applies only to the requirements for a continuing
17 legal education compliance year that ends on or after September 1,
18 2011. The requirements for continuing legal education for a
19 compliance year that ends before September 1, 2011, are covered by
20 the law and rule's in effect when the compliance year ended, and that
21 law and those rules are continued in effect for that purpose.
22 ARTICLE 33. REGISTRATION FEE AND REGISTRATION RENEWAL FEE FOR
23 LOBBYISTS
24 SECTION 33.01. Subsection (c), Section 305.005, Government
26 (c) The registration fee and registration renewal fee are:
27 (1) $150 [-$-WQ] for a registrant employed by an
82R32127 JJT-D 99
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S.B. No. 1811

1 organization exempt from federal income tax under Se.ction
2 501(c)(3)L [~l 501(c)(4), or 501(c)(6), Internal Revenue Code of
3 1986;
4 (2) ill [~l for any person required to register
5 solely because the person is required to register under Section
6 305.0041 [af tHis SHaflt eJ: I ; or
7 (3) $750 [~l for any other registrant.
8 ARTICLE 34. ASSESSMENT OF PREMIUM DIFFERENTIAL ON CERTAIN PUBLIC
9 EMPLOYEES WHO USE TOBACCO
10 SECTION 34.01. Subchapter G, Chapter 1551, Insurance Code,
11 is amended by adding Section 1551. 3075 to read as follows:
12 Sec. 1551. 3075. TOBACCO USER PREMIUM DIFFERENTIAL"
13 (a) The board of trustees shall assess each participant in (~
14 health benefit plan provided under the group benefits program wh(~
15 uses one or more tobacco products a tobacco user premiul~
16 differ ent ial, to be paid in monthly installments. Except ai~
17 provided by Subsection (b), the board of trustees shall determinl~
18 the amount of the monthly installments of the premium differential..

19 (b) If the General Appropriations Act for a state fisca.~
20 biennium sets the amount of the monthly installments of the tobaccl~
21 user premium differential for that biennium, the board of trustee,~
22 shall assess the premium differential during that biennium in th~
23 amount prescribed by the General Appropriations Act.

24 SECTION 34.02. Section 1551. 314, Insurance Code, is amende,:}
26 Sec. 1551. 314. CERTAIN STATE CONTRIBUTIONS PROHIBITED. .1\
27 state contribution may not be.:,.
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1 i!l made for coverages under this chapter selected by
2 an individual who receives a state contribution, other than as a
3 spouse, dependent, or beneficiary, for coverages under a group
4 benefits program provided by an institution of higher education, as
5 defined by Sect ion 61. 003, Education Code; or
6 (2) made for or used to pay a tobacco user premium
7 differential assessed under Sect ion 1551. 3075.
8 SECTION 34.03. The board of trustees of the Employees
9 Retirement System of Texas shall implement the tobacco user premium
10 differential required under Section 1551.3075, Insurance Code, as
11 added by this article, not later than January 1, 2012.
12 ARTICLE 35. PUBLIC ASSISTANCE REPORTING INFORMATION SYSTEM
13 SECTION 35.01. Subsection (c), Section 434.017, Government
15 (c) Money in the fund may be appropriated to the Texas
16 Veterans Commission to:
17 (1) enhance or improve veterans' assistance programs,
18 including veterans' representation and counseling;
19 (2) make grants to address veterans' needs; [aM]
20 (3) administer the fund; and
21 (4) analyze and investigate data received from the
22 f eder al Public Assistance Report ing Inf ormat ion System (PARIS)
23 that is administered by the Administration for Children and

24 Families of the United States Department of Health and Human
25 Services.
26 SECTION 35.02. The comptroller shall credit to the fund for
27 veterans' assistance established under Section 434.017, Government
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1 Code, as amended by this article, the savings generated from the us ~
2 of the federal Public Assistance Reporting Information System
3 (PARIS) under that-section.
4 ARTICLE 36. REGIONAL POISON CONTROL CENTER MANAGEMENT CONTROLS ANI)
5 EFFICIENCY
6 SECTION 36.01. Section 777.001, Health and Safety Code, is
7 amended by amending Subsection (c) and adding Subsection (d) to
8 read as follows:
9 (c) The Commission on State Emergency Communications may

10 standardize the operations of and implement management controls to
11 improve the efficiency of regional poison control centers [vete t~
12 aesi~ftate a seveRtA le~ieRal 9£ satellite peiseR e9At£el seAter i~
13 HarE is SS\:lRty. 'iaat jJ9iseR eSRtrel eeRteI' is sliejeet t9 aJ.±

14 jlrevisiaRG sf tl:lis el=tafJter aRB etAeI 13'<.'. relatiR'3 te re~ieA':~
15 f>eiSeR aeRtlel seRters].

16 - (d) If the Commission on State Emergency Communications
17 implements - management controls under Subsection (c) , the
1B commission shall submit to the governor and the Legislative Budgl!t
19 Board a plan for implementing the controls not later than October
20 31, 2011. This subsection expires January 1, 2013.
21 ARTICLE 37. AUTHORIZED USES FOR CERTAIN DEDICATED PERMANENT FUNDS
22 SECTION 37.01. Section 403.105, Government Code, is amend'~d
23 by amending Subsection (b) and adding Subsection (b-1) to read !S
24 follows:
25 (b) Except as provided by Subsections (b-l), (c), (e), (f),
26 and (h), money in the fund may not be appropriated for any purpose,
27 (b-l) NotWithstanding the limitations and requirements of
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1 Section 403.1068, the legislature may appropriate money in the

2 fund, including the corpus and available earnings of the fund
3 determined under Section 403.1068, to pay the principal of or
4 interest on a bond issued for the purposes of Section 67, Article
5 III, Texas Constitution. This subsection does not authorize the
6 appropriation under this subsection of money subject to a
7 limitation or requirement as described by Subsection (el that is
8 not consistent with the use of the money in accordance with this
9 SUbsection.
11 amended by amending Subsection (bl and adding Subsection (b-1) to
12 read as follows:
13 (b) Except as provided by Subsections (b-l), (c), (e), (f),
14 and (h), money in the fund may not be appropr iated for any purpose.
15 (b-1) Notwithstanding the limitations and requirements of
16 Section 403.1068, the legislature may appropriate money in the
17 fund, inclUding the corpus and available earnings of the fund
18 determined under Section 403.1068, to pay the principal of or
19 interest on a bond issued for the purposes of Section 67, Article
20 III, Texas Constitution. This subsection does not authorize the
22 limitation or requirement as described by Subsection (e) that is
23 not consistent with the use of the money in accordance with this
24 subsection.

26 by amending Subsection (b) and adding Subsection (b-1) to read as
27 follows:
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1 (b) Except as provided by Subsections (b-1), (c), (e), (f),
2 and (h), money in the fund may not be appropr iated for any purpose.
3 (b-1) Notwithstanding the limitations and requirements o(
4 Section 403.1068, the legislature may appropr iate money in thE,
5 fund, including the corpus and available earnings of the funcl
6 determined under Sect ion 403.1068, to pay the pr incipal of Ol~
7 interest on a bond issued for the purposes of Section 67, Articll~
8 III, Texas Constitution. This subsection does not authorize thl~

10 limitation or requirement as described by Subsection (e) that ig
11' not consistent with the use of the money in accordance with thil~
12 subsection.
13 SECTION 37.04. This article takes effect immediately i'=
14 this Act receives a vote of two-thirds of all the members elected to)
18 ARTICLE 38. EMPLOYER ENROLLMENT FEE FOR PARTICIPATION IN CERTAIN
19 HEALTH BENEFIT PLANS
20 SECTION 38.01. Subchapter G, Chapter 1551, Insurance Code,
22 Sec. 1551.3076. EMPLOYER ENROLLMENT FEE. (a) The board of
23 trustees shall assess each employer whose employees participate in
24 the group benefits program an employer enrollment fee in an amounl
25 not to exceed a percentage of the employer's total payroll, as
26 determined by the General Appropriations Act.
27 (b) The board of trustees shall deposit the enrollment fees
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1 to the credit of the employees life, accident, and health insurance

2 and benefits fund to be used for the purposes specified by Section
3 1551.401.
4 ARTICLE 39. FISCAL MATTERS CONCERNING SURPLUS AND SALVAGE PROPERTY
5 SECTION 39.01. Subchapter c, Chapter 2175, Government Code,
6 is repealed.
7 SECTION 39.02. Subsection (al, Section 32.102, Education
9 (al As provided by this subchapter, a school district or
10 open-enrollment charter school may transfer to a student enrolled
11 in the distr ict or school:
12 (1 l any data processing equipment donated to the
13 district or school, includingequipment donated by:
14 (A) a private donor; or
15 (B) a state eleemosynary institution or a state
16 agency under Section 2175.905 [:n7§.l:lS1, Government Code;
17 (2) any equipment purchased by the district or school,
18 to the extent consistent with Section 32.105; and
19 (3) any surplus or salvage equipment owned by the
20 distr ict or school.
23 Sec. 2175.002. ADMINISTRATION OF CHAPTER. The commission is
24 responsible for the disposal of surplus and salvage property of the
25 state. The commission's surplus and salvage property division shall
26 administer this chapter.
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1 amended by amending Subsection (a) and adding Subsections (e) and
2 (d) to read as follows:
3 (a) The commission may authorize a state agency to dispose
4 of surplus or salvage property if the agency demonstrates to the
5 commission its ability to dispose of the property under this
6 chapter [S1:llaeAapters C aHa El in a manner that results in cost
7 savings to the state, under commission rules adopted under this
8 chapter.
9 (c) If property is disposed of under this section, the
10 disposing state agency shall report the transaction to the
11 commission. The report must include a description of the property
12 disposed of, the reasons for disposal, the pr ice paid for the
13 property disposed of, and the recipient of the property disposed
14 of.
15 (d) If the commission determines that a violation of a state

16 law or rule has occurred based on the report under Subsection (c),
17 the commission shall report the violation to the Leqis1ative Budget
18 Board.
19 SECTION 39.05. The heading to SUbchapter 0, Chapter 2175,
21 SUBCHAPTER D. DISPOSITION OF SURPLUS OR SALVAGE PROPERTY [~
22 CgMMISSIgN]
23 SECTION 39.06. Sect ion 2175.181, Government Code, is
25 Sec. 2175.181. APPLICABILITY. [(al ~Ais S1:llaeAap~er applies
26 aBly te S\:iI;pl\i6 aHa Gal'Ja~e prepelty lesatea iRI
27 [(II ~ravis Ce1:lHtYI
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S.B. No. 1811
1 [(;;) a 9S\:lRty if} uRiaH feeelal sl:1lJ)lY6 preperty is
2 'n'arelis\3:sea sy tAB eeRUAissieR 'dRear S\isel:lapter C, ar
3 [(3) a eSHRty fel ~iRieA tHe 8smmissisR EletermiRes teat

4 it is 6ast effeetive be fel1s\1 tRe pleeedl:1res eleated \iRSer tRis
5 slissl:lafjter ana iRfarfA6 affeetea state aClfeRsies af tRat
6 aetermiRatiaA,
7 [+JH.l This subchapter applies [eaee Rat aflfllyl to a state
8 agency delegated the authority to dispose of surplus or salvage
9 property under Section 2175.065.
12 Sec. 2175.182. STATE AGENCY TRANSFER OF PROPERTY [~
13 CQHHISSIQW1. (a) A state agency that determines it has surplus or

14 salvage property shall inform the commission of that fact for the
15 purpose of determining the method of disposal of the property. [ll!ft.e.
16 eemmiosieR is re6p8R6i~le far tHe aiepesal af 6arpl~6 af 6alva~e
17 flraflerty ~Reer tfiis s~Befiaflter,l The commission may take physical

18 possession of the property.
19 (b) Based on the condition of the property, the commissionL
20 in conjunction with the state agency, shall determine whether the
21 property is:
22 (1) surplus property that should be offered for
23 transfer under Section 2175.184 or sold to the public; or
24 (2) salvage property.
25 (c) Following the determination in Subsection (b), the
26 [~] commission shall direct the state agency to inform the
27 comptroller's office of the property's kind, number, location,
82R32l27 JJT-O 107

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1 condition, original cost or value, and date of acquisition.
4 Sec. 2175.1825. ADVERTISING ON COMPTROLLER WEBSITE. ill Not
5 later than the second day after the date the comptroller receives
6 notice from a state agency [eRe eammissiaA] under Section
7 2175.182(c), the comptroller shall advertise the property's kind,
8 number, location, and condition on the comptroller's website.
9 (b) The comptroller shall provide the commission access to
10 all records in the state property accounting system related to
11 surplus and salvage property.
12 SECTION 39.09. Section 2175.183, Government Code,
14 Sec. 2175.183. COMMISSION NOTICE TO OTHER ENTITIES. The [~n
15 takiA~ respeAsisiliey far sHrplHs praperty HAaer eRis sHsaRapeer,"

16 ~l commission shall inform' other state agencies, politica:.
17 subdivisions, and assistance organizat ions of the comptroller':;
18 website that lists surplus property that is available for sale.
19 SECTION 39.10. Section 2175.184, Government Code, '
]. ,-
"

21 Sec. 2175.184. DIRECT TRANSFER. Our ing the 10 busines"
22 days after the date the property is posted on the comptroller "
23 website, a state agency, political subdivision, or assistanc e
24 organization shall [lllay] coordinate with the commission for a
25 transfer of the property at a price established by the commission
26 [iA eaaperatiaR \litR eRe traRsferriRlj aljeRey]. A transfer to a
27 state agency has priority over any other transfer during this
82R32127 JJT-D 108

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1 period.
2 SECTION 39.11. Subsection (a) , Section 2175.186,
4 (a) If a disposition of a state agency's surplus property is
5 not made under Section 2175.184, the commission shall sell the
6 property by competitive bid, auction, or direct sale to the public,
7 including a sale using an Internet auction site. The commission may
8 contract with a private vendor to assist with the sale of the
9 property.
12 Sec. 2175.189. ADVERTISEMENT OF SALE. If the value of an
13 item or a lot of property to be sold is estimated to be more than
14 $25,000 [$9,QQQ1, the commission shall advertise the sale at least
15 once in at least one newspaper of general circulation in the
16 vicinity in which the property is located.
17 SECTION 39.13. Subsection (a), Section 2175.191,
19 (a) Proceeds from the sale of surplus or salvage property,
20 less the cost of advertising the sale, the cost of selling the
21 surplus or salvage property, including the cost of auctioneer
22 services or assistance from a private vendor, and the amount of the
23 fee collected under Section 2175.188, shall be deposited to the
24 credit of the general revenue fund of the state treasury.
27 Sec. 2175.302. EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS.
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1 Except as ,provided by Section 2175.905(b) [:H7§.nS(b)], this
2 chapter does not apply to the disposition of surplus or salvage
3 property by a state eleemosynary institution.
5 amended by amending Subsections (a) and (c) and adding Subsection,
6 (d) to read as follows:
7 (a) The commission shall establish a program for the sale of

8 gambling equipment received from a municipality, from cl
9 commissioners court under Section 263.152(a)(5), Local Government:
10 Code I or from a state agency under this chapter.
11 (c) Proceeds from the sale of gambling equipment from il
12 municipality or commissioners court, less the costs of the sale"

13 including costs of advertising, storage, shipping, and auctioneeJ:
14 or broker services, and the amount of the fee collected unde::

15 Section 2175.188 [<l17§.131], shall be divided according to an
16 agreement between the commission and the municipality or
17 commissioners court that provided the equipment for sale. Tha
18 agreement must provide that:
19 (1) not less than 50 percent of the net proceeds be
20 remitted to the commissioners court; and
21 (2) the remainder of the net proceeds retained by the
22 commission be deposited to the credit of the general revenue fund.
23 (d) Proceeds from the sale of gambling equipment from a
24 state agency, less the costs of the sale, including costs of
25 advertising, storage, shipping, and auctioneer or broker services~
26 and the amount of the fee collected under Section 2175.188, shall be
27 deposited to the credit of the general revenue fund of the state
82R32127 JJT-D 110

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S . B. No. 1811
1 treasury.
2 SECTION 39.16. Subchapter Z, Chapter 2175, Government Code,
3 is amended by adding Sections 2175.905 and 2175.906 to read as
4 follows:
5 Sec. 2175.905. DISPOSITION OF DATA PROCESSING EQUIPMENT.
6 (a) If a disposition of a state agency's surplus or salvage data
7 processing equipment is not made under Section 2175.184, the state
8 agency shall transfer the equipment to:
9 (1) a school district or open-enrollment charter
10 school in this state under Subchapter C, Chapter 32, Education
11 Code;
12 (2) an assistance organization specified by the school
13 district; or
14 (3) the Texas Department of Cr imina1 Justice.
15 (b) If a disposition of the surplus or salvage data
16 processing equipment of a state eleemosynary institution or an
17 institution or agency of higher education is not made under other
18 law, the institution or agency shall transfer the equipment to:
19 (1) a school district or open-enrollment charter
20 school in this state under Subchapter C; Chapter 32, Education
21 Code;
22 (2) an assistance organization specified by the school
23 district; or
24 (3) the Texas Department of Criminal Just ice.
25 (c) The state eleemosynary institution or institution or
26 agency of higher education or other state agency may not collect a
27 fee or other reimbursement from the district, the school, the
82R32127 JJT-D 111

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1 assistance organization, or the Texas Department of Cr iminal
2 Justice for the surplus or salvage data processing eguipment
3 transferred under this section.
4 Sec. 2175.906. ABOLISHED AGENCIES. On abolition of a state
5 agency, in accordance with Chapter 325, the commission shall take
6 cust·ody of all of the agency's property or other assets as surplus
7 property unless other law or the legislature designates another
8 appropriate governmental entity to take custody of the property or
9 assets.
10 ARTICLE 40. LAW ENFORCEMENT AND CUSTODIAL OFFICER SUPPLEMENTAL
11 RETIREMENT FUND
13 by adding Subsection (a-I) to read as follows:
14 (a-I) The comptroller shall deposit fees collected under
15 Section 133.102(e)(7), Local Government Code, to the credit of thE~
16 law enforcement and custodial officer supplemental retirement:

17 fund.
18 SECTION 40.02. Subsection (e), Section 133.102, Loca:.

20 (e) The comptroller shall allocate the court costs receivell
21 under this section to the following accounts and funds so that each
22 receives to the extent practicable, utilizing historical data a:~
23 applicable, the same amount of money the account or fund would hav~
24 received if the court costs for the accounts and funds had bee:1
25 collected and reported separately, except that the account or funj
26 may not receive less than the following percentages:
27 (1) abused children's counseling 0.0088 percent;
82R32127 JJT-D 112

S.B. No. 1811
1, (2) cr ime stopper s assistance 0.2581 percent;
2 (3) breath alcohol testing 0.5507 percent;
3 (4) Bill Blackwood Law Enforcement Management
4 Institute 2.1683 percent;
5 (5) law enforcement officers standards and
6 education 5.0034 percent;

7 (6) comprehensive rehabilitation 5.3218 percent;
B (7 ) =l~a~w~_~e~n=f~o~r..::c~e~m~e~n~t,--_..::a~n~d:...._..::c~u:.:s~t:.:o::.:d::.:~~.a::.:l=--__o~f::..::.f.:::i.:::c.:::e~r
9 supplemental retirement fund [8pela~afts aBel 6Ra\iffear'e
10 HaeRse] 11.1426 percent;
11 (8) cr iminal justice planning 12.5537 percent;
12 (9) an account in the state treasury to be used only

13 for the establishment and operation of the Center for the Study and
14 Prevention of Juvenile Crime and Delinquency at Prairie View A&M
15 University 1.2090 percent;
16 (10) compensation to victims of cr ime fund 37.6338
17 percent;
18 (11) fugitive apprehension account 12.0904 percent;
19 (12) judicial and court personnel training fund 4.8362
20 percent;
21 (13) an account in the state treasury to be used for
22 the establishment and operation of the Correctional Management
23 Institute of Texas and Criminal Justice Center Account 1. 2090
24 percent; and
25 ( 14) fair defense account 6.0143 percent.
82R32l27 JJT-D 113

82R32127 JJT-D 114
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1 (B) authorized to sell, lease, or rent the
2 property without additional action by the person having title to or
3 another ownership interest in the property.
5 amending Subsection (a) and adding Subsection (d) to read as
6 follows:
7 (a) For the·purpose of this subchapter and in relation to
8 the use tax, a retailer is engaged in business in this state if the
9 retailer:
10 (1) maintains, occupies, or uses in this state
11 permanently, temporarily, directly, or indirectly or through a
12 subsidiary or agent by whatever name, an office, [Flaee ef]
13 distribution center, sales or sample room or place, warehouse,
14 storage place, or any other physical location where [fllaee af]
15 business is conducted;
16 (2) has a representative, agent, salesman, canvasser,
17 or solicitor operating in this state under the authority of the
18 retailer or its subsidiary for the purpose of selling or delivering
19 or the taking of orders for a taxable item;
20 (3) derives receipts [reRtals] from the sale, [a]
21 lease, or rental of tangible personal property situated in this

22 state;
23 (4) engages in regular or systematic solicitation of
24 sales of taxable items in this state by the distribution of
25 catalogs, periodicals, advertising flyers, or other advertising,
26 by means of print, radio, or television media, or by mail,
27 telegraphy, telephone, computer data base, cable, optic,
82R32127 JJT-O 115

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1 microwave, or other communication system for the purpose of

2 effecting sales of taxable items;
3 (5) solicits orders for taxable items by mail or
4 through other media and under federal law is subject to or permitted
5 to be made subj ect to the jur isdiction of this state for purposes of
6 collecting the taxes imposed by this chapter;
7 (6) has a franchisee or licensee operating under its
8 trade name if the franchisee or licensee is required to collect the
9 tax under this section; [&rl
10 (7) holds a substantial ownership interest in, or i~~
11 owned in whole or substantial part by, a person who maintains ct

12 location in this state from which business is conducted and if:
13 (A) the retailer sells the same or it
14 substantially similar line of products as the person with thE~
15 location in this state and sells those products under a businesl~
16 name that is the same as or substantially similar to the businesl~
17 name of the person with the location in this state; or

18 (8) the facilities or employees of the perso:l
19 with the location in this state are used to:
20 (il advertise, promote, or fac ilitate sale s
21 by the retailer to consumer s; or

22 (ii) perform any other activity on behal[
23 of the retailer that is intended to establish or maintain !!
24 marketplace for the retailer in this state, including receiving or
25 exchanging returned merchandise;
26 (8) holds a substantial ownership interest in, or is
27 owned in whole or substantial part by, a person that:
82R32127 JJT-D 116

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1 the membership interest of the limited liability company; or
2 (D) for any entity, including a partnership or
3 association, at least 50 percent, directly or indirectly, of the

4 capital or profits interest in the entity.
5 SECTION 41.03. Subchapter M, Chapter lSI, Tax Code, is
6 amend~d by adding Section 151. 802 to read as follows:
7 Sec. 151. 802. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX
8 RELIEF FUND. (a) This section applies only:
9 (1) during the state fiscal years beginning September
10 1 of 2012, 2013, 2014, 2015, and 2016 i and

11 (2) with respect to unused franchise tax credits
12 descr ibed by Sect ions 18 (e) and (f), Chapter 1 (H. B. 3), Acts of the
13 79th Legislatur e, 3rd Called Session, 2006.
14 (b) Notwithstanding Section 151.801, the comptroller shall,
15 deposit to the credit of the property tax relief fund under Section,
16 403.109, Government Code, an amount of the proceeds from the,
17 collect ion of the taxes imposed by this chapter equal to the amount,
18 of revenue the state does not receive from the tax imposed undel
19 Chapter 171 because taxable entities, as defined by that chapter,.
20 that are corporations are entitled to claim unused franchise tal~
21 cr edits after December 31, 2012, and dur ing that state f isca1 year.
22 (c) This section expires September 1, 2017.
23 SECTION 41.04. The change in law made by this article doe:>
24 not affect tax liability accruing before the effective date of thi:;
25 article. That liability continues in effect as i f this article had
26 not been enacted, and the former law is continued in effect for th,~
27 collection of taxes due and for civil and criminal enforcement of
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1 the liability for those taxes.
2 SECTION .41. 05. This article takes effect January 1, 2012.
3 ARTICLE 42. CARRYFORWARD OF CERTAIN FRANCHISE TAX CREDITS
4 SECTION 42.01. Subsections (e) and (f), Section 18, Chapter
5 1 (H.B. 3), Acts of the 79th Legislature, 3rd Called Session, 2006,
6 are amended to read as follows:
7 (e) A corporation that has any unused credits established
8 before the effective date of this Act under Subchapter P, Chapter
9 171, Tax Code, may claim those unused credits on or with the tax
10 report for the period in which the credit was established. However,
11 if the corporation was allowed to carry forward unused credits
12 under that subchapter, the corporation may continue to apply those
13 credits on or with each consecutive report until the earlier of the
14 date the credit would have expired under the terms of Subchapter P,
15 Chapter 171, Tax Code, had it continued in existence, or December
16 31, 2016 [~l, and the former law under which the corporation
17 established the credits is continued in effect for purposes of
18 determining the amount of the credits the corporation may claim and
19 the manner in which the corporation may claim the credits.
20 (f) A corporation that has any unused credits established
21 before the effective date of this Act under Subchapter Q, Chapter
22 171, Tax Code, may claim those unused credits on or with the tax
23 report for the per iod in which the credit was established. However,
24 if the corporation was allowed to carry forward unused credits
25 under that subchapter, the corporation may continue to apply those
26 credits on or with each consecutive report until the earlier of the
27 date the credit would have expired under the terms of Subchapter Q,
82R32l27 JJT-D 119

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1 Chapter 171, Tax Code, had it continued in existence, or Decembel:
2 31, 2016 [~], and the former law under which the corporation
3 established the credits is continued in effect for purposes 0::
4 determining the amount of the credits the corporation may claim and
5 the manner in which the corporation may claim the credits.
6 ARTICLE 43. STATE PURCHASING
B amended to read as follows:
9 Sec. 2155. OB2. PROVIDING CERTAIN PURCHASING SERVICES ON
10 FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT FUNDING. (a) The
11 comptroller [eemmissieR] may provide open market purchasing
12 services on a fee-for-service basis for state agency purchases that
13 are delegated to an agency under Sect ion 2155.131, 2155.132 I
14 [::l1§§ .133,] or 2157.121 or that are exempted from the purchasir..g

15 authority of the comptroller [eemmissieR]. The comptroller
16 [eeHllllissieR] shall set the fees in an amount that recovers the
17 comptroller's [ee_issieR' s] costs in providing the services.
1B (b) The comptroller [sel1lfilissisR] shall publish a scheduJ.e
19 of [#&] fees for services that are subject to this section. The
20 schedule must include the comptroller's [ssl1lfiIissieR's] fees for:
21 (1) reviewing bid and contract documents for clarit~',
22 completeness, and compliance with laws and rules;

23 (2) developing and transmitting invitations to bid;
24 (3) receiving and tabulating bids;
25 (4) evaluating and determining which bidder offers t'rle

26 best value to the state;
27 (5) creating and transmitting purchase orders; and
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1 (6) participating in agencies' request for proposal
2 processes.
3 (c) If the state agency on behalf of which the procurement
4 is to be made agrees, the comptroller may engage a consultant to
5 assist with a particular procurement on behalf of a state agency and
6 pay the consultant from the cost savings realized by the state
7 agency.
8 ARTICLE 44. PERIOD FOR SALES AND USE TAX HOLIDAY
11 (al The sale of an article of clothing or footwear designed
12 to be worn on or about the human body is exempted from the taxes
13 imposed by this chapter if:
14 (1) the sales price of the article is less than $100;
15 and
16 (2) the sale takes place during a period beginning at
17 12:01 a.m. on the [t;ftil's] Friday before the eighth day preceding the
18 earliest date on which any school district, other than a district
19 operating a year-round system, may begin instruct-ion for the school
20 year as prescribed by Section 25.081l(a), Education Code, [4A
21 A\i~\ist;] and ending at 12 midnight on the following Sunday.

23 as amended by this article, does not affect tax liability accruing
24 before the effective date of this article. That liability
25 continues in effect as if this article had not been enacted, and the
26 former law is continued in effect for the collection of taxes due
27 and for civil and criminal enforcement of the liability for those
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1 taxes.
2 SECTION 44.03. This article takes effect immediately if

7 ARTICLE 45. LEGISLATIVE BUDGET BOARD MEETINGS
8 SECTION 45.01. Section 322.003, Government Code, is amendec.
9 by adding Subsection (f) to read as follows:
10 (f) The board shall hold a public hearing each state fiscal
11 year to receive a report from the comptroller and receive invitecl
12 testimony regarding the financial condition of this state. ThE!
13 report from the comptroller shall include, to the extent
14 practicable:
15 (1) information on each revenue source included in

16 determining the estimate of anticipated revenue for purposes of th,~
17 most recent statement required by Section 49a, Article III, Texa.!

18 Constitution, and the total net revenue actually collected fro:n
19 that source for the state fiscal year as of the end of the most
20 recent state fiscal quarter j
21 (2) a comparison for the period described b~
22 Subdivision (1) of the total net revenue collected from each

23 revenue source required to be specified under that subdivision with
24 the anticipated revenue from that source that was included for
25 purposes of determining the estimate of anticipated revenue in the
26 statement required by Section 49a, Article III, Texas Constitution1.
27 (3) information on state revenue sources resultir;,q
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1 from a law taking effect after the comptroller submitted the most
2 recent statement required by Section 49a, Article III, Texas
3 Constitution, and the estimated total net revenue collected from
4 that source for the state fiscal year as of the end of the most
5 recent state fiscal quarter;
6 (4) a summary of the indicators of state economic
7 trends experienced since the most recent statement required by
8 Section 49a, Article III. Texas Constitution; and
9 (5) . a summary of ant icipated state economic trends and
10 the anticipated effect of the trends on state revenue collections.
11 SECTION 45.02. Chapter 322, Government Code, is amended by
12 adding Sect ~on 322.0081 to read as follows:
13 Sec. 322.0081. BUDGET DOCUMENTS ONLINE. la) The board
14 shall post on the board's Internet website documents prepared by
15 the board that are provided to a committee, subcommittee, or
16 conference committee of either house of the legislature in
17 connect ion with an appropr iations bill.
18 Ib) The board shall post a document to which this section
19 applies as soon as practicable after the document is provided to a
20 committee, subcommittee, or conference committee.
21 Ie) The document must be downloadable and provide data in a
22 format that allows the public to search, extract, organize, and
23 analyze the information in the document.
24 Id) The requirement under Subsection la) does not supersede
25 any exceptions provided under Chapter 552.
26 Ie) The board shall promulgate rules to implement the
27 provisions of this section.
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1 SECTION 45.03. Chapter 322, Government Code, is amended by

2 adding Section 322.022 to read as follows:
3 Sec. 322.022. PUBLIC HEARING ON INTERIM BUDGET REDUCTION
4 REQUEST. (a) In this section:
5 (1) "Interim budget reduction reguest" means a reguest
6 communicated in any manner for a state agency to make adjustments to
7 the strategies, methods of finance, performance measures, or riders
8 applicable to the agency through the state budget in effect on the
9 date the reguest is communicated that, if implemented, would reduce
10 the agency's total expenditures for .the current state fiscal,
11 biennium to an amount less than the total amount that otherwise
12 would be permissible based on the appropriations made to the agenc);
13 in the budget.
14 (2) "State agency" means an off ice, department, board L
15 commission, institution, or other entity to which a legislatiVE,
16 appr opr iat ion is made.
17 (b) A state agency shall provide to the board a detaile(~
1B report of any expenditure reduction plan that:

19 (1) the agency develops in response to an interiJ~
20 budget reduction reguest made by the governor, the lieutenan"=.

21 governor, or a member of the legislature, or any combination ot
22 those persons; and
23 (2) i f implemented, would reduce the agency's totah
24 expenditures for the current state fiscal biennium to an amoun~
25 less than the total amount that otherwise would be permissib1~

26 based on the appropriations made to the agency in the state budget
27 for the biennium.
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1 (c) The board shall hold a public hearing to solicit
2 testimony on an expenditure reduction plan a state agency reports
3 to the board as required by Subsection (bl as soon as practicable
4 after receiving the report. The agency may not implement any
5 element of the plan until the conclusion of the hearing.
6 (d) This section does not apply to an expenditure reduction
7 a state agency desires to make that does not directly or indirectly
8 result from an interim budget reduction request made by the
9 governor, the lieutenant governor, or a member of the legislature,
10 or any combination of those persons.
13 Sec. 403.0145. PUBLICATION OF FEES SCHEDULE. As soon as
14 practicable after the end of each state fiscal year, the
15 comptroller shall publish online a schedule of all revenue to the
16 state from fees authorized by statute. For each fee, the schedule
17 must specify:
18 (1) the statutory authority for the fee;
19 (2) if the fee has been increased during the most
20 recent legislative session, the amount of the increase;
21 (31 into which fund the fee revenue will be deposited;
22 and
23 (4) the amount of the fee revenue that will be
24 considered available for general governmental purposes and
25 accordingly considered available for the purpose of certification
26 under Section 403.121.
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1 by amending Subsections (a) and (b) and adding Subsection (b-1) to
2 read as follows:
3 (a) Before issuing notes the comptroller shall submit to the
4 committee a general revenue cash flow shortfall forecast, based on
5 the comptroller's most recent anticipated revenue estimate. The
6 forecast must contain a detailed report of estimated revenues and
7 expenditures for each month and each major revenue and expenditure
8 category and must demonstrate the maximum general revenue cash flow
9 shortfall that may be predicted. The committee shall hold a public
10 hearing to receive invited testimony on the forecast, including
11 testimony on this state's overall economic condition, as soon as
12 practicable after receiving the forecast.
13 (b) Based on the forecast and testimony provided at the
14 hearing required by Subsection (a), the committee may approve the
15 issuance of notes, subject to Subsections (b-l) and (c), and the
16 maximum outstanding balance of notes in any fiscal year. The
17 outstanding balance may not exceed the maximum temporary cast.
18 shortfall forecast by the comptroller for any period in the fiscal
19 year. The comptroller may not issue notes in excess of the amount
20 approved.
21 (b-l) The committee's approval of the issuance of note![
22 granted under Subsection (b) expires on the 9lst day after the datE,
23 the hearing conducted under Subsection (a) concludes. Tho
24 comptroller may not issue notes on or after the gIst day unless thl~
25 comptroller submits another general revenue cash flow shortfal:~

26 forecast to the committee and the committee subsequently granti~
27 approval for the issuance of the notes in accordance with thl~
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• •
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1 procedure required by Subsections (a) and (b). Each subsequent
2 approval expires on the 61st day after the date the hear ing on which
3 the approval was based concludes.
4 ARTICLE 46. ECONOMIC AND WORKFORCE DEVELOPMENT PROGRAMS
6 by adding Subsection (m) to read as follows:
7 (m) Notwithstanding Subsections (e) and (e-l), during the
8 state fiscal biennium that begins on September 1, 2011, the
9 governor shall transfer $10 million from the fund to the Texas
10 Workforce Commission to fund the Texas Back to Work program
11 established under Chapter 313, Labor Code. The governor shall
12 begin transferring money as reguired by this subsection as soon as
13 possible after September 1, 2011, and may make more than one
14 transfer if necessary to satisfy the requirements of this
15 subsect ion. This subsection expires September 1, 2013.

16 SECTION 46.02. Subtitle B, Title 4, Labor Code, is amended
17 by adding Chapter 313 to read as follows:
18 CHAPTER 313. TEXAS BACK TO WORK PROGRAM
19 Sec. 313.001. DEFINITION. In this chapter, "qualified
20 applicant" means a person who made less than $40 per hour at the
21 person's last employment before becoming unemployed.
22 Sec. 313.002. INITIATIVE ESTABLISHED. (a) The Texas Back
23 to Work Program is established within the commission.
24 (b) The purpose of the program is to establish
25 pUblic-priv~te partnerships with employers to transition residents
26 of this state from receiving unemployment compensation to becoming
27 employed as members of the workforce.
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1 (c) An employer that participates in the initiative may.
2 receive a wage subsidy for hiring one or more qualified applicant!~
3 who are unemployed at the time of hire.

4 Sec. 313.003. RULES. The commission may adopt rules all
5 necessary to implement this chapter.
6 ARTICLE 47. ELIGIBILITY OF SURVIVING SPOUSE OF DISABLED VETERAN TO
7 PAY AD VALOREM TAXES ON RESIDENCE HOMESTEAD IN INSTALLMENTS
9 amending Subsection (a) and adding Subsection (a-I) to read as
10 follows:
11 (a) This section applies only to:
12 ill [If sefere tHe deliR~eRsy date) an individual who
13 is:
14 (A) disabled or at least 65 years of ageL and
15 ill [45) qualified for an exemption under Section
16 ll.l3(c); or
17 (2) an individual who is:
18 (A) the unman ied survivinq spouse of a disable'd
19 veteran; and
20 (B) qualified for an exemption under Sectic,n
21 11.22.
22 (a-I) If before the delinquency date an individual to whc~
23 this section applies pays at least one~fourth of a taxing unit's

24 taxes imposed on property that the person owns and occupies as a
25 residence homestead, accompanied by notice to the taxing unit thilt
26 the person will pay the remaining taxes in installments, the pers1ln
27 may pay the remaining taxes without penalty or interest in thrl~e
82R32127 JJT-D 128

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1 equal installments. The first installment must be paid before
2 April 1, the second installment before June 1, and the third
3 installment before August l.
4 SECTION 47.02. This article applies only to an ad valorem
5 tax year that begins on or after the effective date of this article.
6 SECTION 47.03. This article takes effect January 1,2012.
7 ARTICLE 48. EXTENSION OF FRANCHISE TAX EXEMPTION
8 SECTION 48.01. Subsection (c), Section 1, Chapter 286 (H.B.
9 4765), Acts of the 8lst Legislature, Regular Session, 2009, is
11 (c) This [If tfiis seetieR talies eHeet, tfiis} sect ion
12 expires December 31, 2013 [~l.
13 SECTION 48.02. Subsection (b), Section 2, Chapter 286 (H.B.

14 4765), Acts of the 8lst Legislature, Regular Session, 2009, is
16 (b) This section takes effect January 1, 2014 [ilQ1il, if H,B I
17 lie. 2194, Plats af tAB 81et be~islataire, Re'3''tllar SassieR, agQ9,

18 ameFllis Seetiea ISS,Qall, 'ran Geee, ia a RlaRRel tHat resl:11ts ia aft
19 iasrease ia the reVeRl:1e fram tAe tau ~Rder tkat oastieR ~~IiR~ t~e
20 state fiseal sieRRiwm se~iRRiR~ Septemaer 1, dggg, t1=lat is

21 attrisHtasle 1:9 tHat sJ::i3R'3'e, aRe tHat Aet is eaaetee aRa seeames
22 tau. If 11.8. tIe. dl§4, Asts af tRe 81at be~ielat1::1:re, Re~1:l1ar
23 SassieR, aQQ9, sees RBt ameAa SestiBR l§S,Qall, '±'au Seele, 18 t1=lat
24 lRaARer at is Ret €Raetee Bf !:ieee Ret sesame 19'01, tRiG seetiea ta]tes
25 effeet JaR1:la:ry 1, ilQ1Ql .
26 SECTION 48.03. Subsection (b), Section 3, Chapter 286 (H.B.
27 4765), Acts of the 81st Legislature, Regular Session, 2009, is
82R32l27 JJT-D 129

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S.B. No. 1811

2 (b) This section takes effect January 1, 2014 [;lQl;l, if HiB.
3 tie. 21§4, Aets sf tAe 8lot Le§ielatare, R8§'tilar SassieR, ~gQ91'
4 ameaEis SestieFl 1§§.g~11, 'Pan Gaels, iR a lBaRRer teat 1'861:11to iR ali·
5 iRsrease fA t~e reV8RH€ fram t~e talE l:1R~er tkat seetisa ~YriR~ t~e·
6 state fiseal aieRRi1:'UR S€§iARiR§ S€fltemeer 1, ;dQQ9, tHat: iG

7 attrisHt3s1e te taat 8haR§8, aRB taat Aat is eaaetea aRe sesemen
8 la'ol. If ILP., Na. ;l1§4, Aeta af tHe Blat be~ialat""re, Iloe~""la]'
9 SassioR, ~QQ9, Elees Ret aHlaAS SeetieR 1§§,Q211, 'PalE Geae, iA taa1;.
10 maRR8l" Sf is Rat 8a3etee Sf' sees Ret sesame leu, tRio seetisa talte,;.
11 eft e at Jafl""ar y 1, ;lQ lQ I .

12 SECTION 48.04. This article takes effect immediately F
13 this Act receives a vote of two-thirds of all the members elected t,)
14 each house, as provided by Section 39, Article III, Texa3
16 this article to have immediate effect, this article takes effect
18 ARTICLE 49. FISCAL MATTERS REGARDING ASSISTANT PROSECUTORS
19 SECTION 49.01. Subsection (f), Section 41.255, Government
21 (f) A county is not required to pay longevity supplements if
22 the county does not receive funds from the comptroller as provided
23 by Subsection (d). If sufficient funds are not available to meet
24 the requests made by counties for funds for payment of assistant
25 prosecutors qualified for longevity supplements..:..
26 ill [Tl the comptroller shall apportion the availabl.e
27 funds to the eligible counties by reducing the amount payable to
82R32127 JJT-D 130

S.B. No. 1811
1 each county on an equal percentage basisL
2 (2) a county is not entitled to receive the balance of
3 the funds at a later date 1 and
4 (3) the longevity pay program under this chapter is
5 suspended to the extent of the insufficiency. [A eeliRty that
6 Ieeeives fram 'eRe eSlftiltraller aft amaaftt less taaR tae aHlBliRt
7 eer1:ifieEl S}' tk8 8S\::lft:t:r te tiRe e91ftl3treller tiRaSI S1:1:Bseetisfl (a)
8 sAal1 a~~eltieR tAe fliRas Ieeeivea sy IealieiR~ tAe ameliRt ~ayasle
9 te eli~iJale assistaRt flI8S8Sl:1ters 9A aft 8EJ:'t:ilal pereeAtafJ8 Basic, S\:lt
10 is Ret reE}liirea 1::9 \lse 89QRty faReS 1;9. malts \iii aay Eliffereflee
11 8e~\Jeefl tAB am8\:iRt eeltifiea aRe tAB aHlBl::1Rt reeei'leEi.]
12 SECTION 49.02. Subsection (g), Section 41.255, Government

13 Code, is repealed.
14 ARTICLE 50. FISCAL MATTERS REGARDING PROCESS SERVERS
16 is amended by adding Sections 72.013 and 72.014 to read as follows:
17 Sec. 72.013. PROCESS SERVER REVIEW BOARD. A person
18 appointed to the process server review board established by supreme
19 court order serves without compensation but is entitled to
20 reimbursement for actual and necessary expenses incurred in
21 traveling and performing official board duties.
22 Sec. 72.014. CERTIFICATION DIVISION. The office shall
23 establish a certification division to oversee the regulatory
24 programs assigned to the office by law or by the supreme court.
25 ARTICLE 51. FISCAL MATTERS REGARDING REIMBURSEMENT OF JURORS
27 by adding Subsections (a-1) and (a-2) to read as follows:
82R32127 JJT-D 131

S.B. No. 1811
1 (a-I) Notwithstanding Subsection (a), and except as
2 provided by Subsection (c), during the state fiscal bienniUlc

3 beginning September 1, 2011, a person who reports for jury service
4 in r~sponse to the process of a court is entitled to receive as
.5 reimbursement for travel and other expenses an amount:
6 (1) not less than $6 for the first day or fraction of'
7 the first day the person is in attendance in court in response teo
8 the process and discharges the person's duty for that day; and
9 (2) not less than the amount provided in the Genera: o
10 Appropriations Act for each day or fraction of each day the persolt
11 is in attendance in court in response to the process after the firs1:
12 day and discharges the person's duty for that day.
13 (a-2) This subsection and Subsection (a-I) expire Septembe:~
14 1.2013.
15 SECTION 51. 02. Section 61. 0015, Government Code, is amende,]

16 by adding Subsections (a-I), (a-2), and (e-1) to read as follows:
17 (a-I) Notwithstanding Subsection (a), during the state
18 fiscal biennium beginning September 1. 2011, the state shall
19 reimburse a county the appropr iate amount as provided in the
20 General Appropriations Act for the reimbursement paid under Section
21 61.001 to a person who reports for jury service in response to the
22 process of a court for each day or fraction of each day after the
23 fir st day in attendance in court in response to the process.
24 (a-2) This subsection and Subsections (a-I) and (e-])

25 expire September 1, 2013.
26 (e-I) Notwithstanding Subsection dur ing the state
27 fiscal biennium beginning September 1, if a payment on a
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S.B. No. 1811
1 county's claim for reimbursement is reduced under Subsection (d),
2 or i f a county fails to file the claim for reimbursement in a timely

3 manner, the comptroller may, as provided by rule, apportion the
4 payment of the balance owed the county. The comptroller's rules may
5 permit a different rate of reimbursement for each quarterly payment
6 under Subsection (c).
7 ARTICLE 52. COLLECTION IMPROVEMENT PROGRAM

8 SECTION 52.01. Subsections (f), (h), (i), and (j), Article
9 103.0033, Code of Criminal Procedure, are amended to read as
10 follows:
11 (f) The [sslllfltrsllerj iR ssslleratisR "ita tael officeh·1

12 shall develop a methodology for determining the collection rate of
13 counties and municipalities descr ibed by Subsection (e) before
14 implementation of a program. The off ice [ssmlltrsller I shall

15 determine the rate for each county and municipality not later than
16 the first anniversary of the county's or municipality's adoption of
17 a program.
18 (h) The office [, iR sSRsliltatisR '"ita tAe sSlllfltrsller j I

19 may:
20 (1) use case dispositions, population, revenue data,

21 or other appropriate measures to develop a prioritized
22 implementation schedule for programs; and
23 (2) determine whether it is not cost-effective to

24 implement a program in a county or municipality and grant a waiver
25 to the county or municipality.
26 (i) Each county and municipality shall at least annually

27 submit to the office [aRa tAe sSlllfltrsllerl a written report that
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1 includes updated information regarding the program, as determined

2 by the office [iR essIluatisR '"ite tee eSIIlfltIsllu J. The report
3 must be in a form approved by the office [iR sBsIlelatisR ~litH tHe·
4 sSIIlfltIslleIJ.
5 (j) The office [eelR~trellerJ shall per iodically audit:
6 counties and municipalities to verify information reported unde]'
7 Subsection (i) and confirm that the county or municipality ill
8 conforming with requirements relating to the program. [~~
9 o911\13treller 8Aall 8e9sl:l1t 'o1itA tAte effiee iR e1eterfRiaiR'3" 119',1
10 freqY8fltl}' sa S8ABI:tst ablsits YAaer tRiG seeti9A.]
11 SECTION 52.02. Subsection (e), Section 133.058, Local

13 (e) A municipality or county may not retain a service fe,~
14 if, during an audit under [SestisR l)J,G§9 sf teis ssae sIl Articl'a
15 103.0033(j), Code of Criminal Procedure, the Office of Court
16 Administration of the Texas JUdicial System [esIIlfltIsllell
17 determines that the municipality or county is not in compliance
18 with Article 103.0033, Code of Criminal Procedure. The
19 municipality or county may continue to retain a service fee under
20 this section on receipt of a written confirmation from the Office of
21 Court Administration of the Texas Judicial System [ssIIlfltrslleI]
22 that the municipality or county is in compliance with Article
23 103.0033, Code of Criminal Procedure.
24 SECTION 52.03. Subsection (c-1), Section 133.103, Loce,l
26 (c-1) The treasurer shall send 100 percent of the feE,s
27 collected under this section to the comptroller if, dur ing an audi.t
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1 under [SeetieR 1~~.Q§9 ef tRis eese er] Article 103.0033{jl, Code
2 of Criminal Procedure, the Office of Court Administration of the
3 Texas JUdicial System [eelllfltreller] determines that the
4 municipality or county is not in compliance with Article 103.0033,
5 Code of Cr iminal Procedure. The municipality or county shall
6 continue to dispose of fees as otherwise provided by this section on
7 receipt of a written confirmation from the Office of Court
8 Administration of the Texas Judicial System [eelllfltreller) that the
9 municipality or county is in compliance with Article 103.0033, Code
10 of Cr iminal Procedure.
11 ARTICLE 53. CORRECTIONAL MANAGED HEALTH CARE
12 SECTION 53.01. Subsection (al, Section 501.133, Government
14 (a) The committee consists of five voting [R-ifte.] members and
15 one nonvoting member [aflfleiRtee] as follows:
16 (1) one member [t',/e memBers] employed full-time by the
17 department, [at least eRe ef ',/Rem is a flAysieiaR,] appointed by the
18 executive director;
19 (2l one member who is a physician and [t\/e memBers]
20 employed full-time by The University of Texas Medical Branch at
21 Galveston, [at least eRe ef \/Rem is a flRysieiaR,] appointed by the
22 president of the medical branch;
23 (3) one member who is a physician and [tHe memBers]
24 employed full-time by the Texas Tech University Health Sciences
25 Center, [at least eRe ef ',/Rem is a flRysieiaR,] appointed by the
26 president of the university; [aM]
27 (4) two [tRree] public members appointed by the
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1 governor who are not affiliated with the department or with any
2 entity with which the committee has contracted to provide health
3 care services under this chapter, at least ~ [~) of whom is
4 [~) licensed to practice medicine in this state; and
5 (5) the state Medicaid director, to serve ex officio
6 as a nonvoting member.
7 SECTION 53.02. Subsection (b), Section 501.135, Government
9 (b) A person may not be an appointed [oa) member of the
10 committee and may not be a committee employee employed in a "bona
11 fide executive, administrative, or professional capacity," as that

12 phrase is used for purposes of establishing an exemption to the
13 overtime provisions of the federal Fair Labor Standards Act of 1931:.
14 (29 U.S.C. Section 201 et seq.) and its subsequent amendments if:
15 (1) the person is an off icer , employee, or paid

16 consultant of a Texas trade association in the field of health carH
17 or health care services; or
18 (2) the person's spouse is an officer, manager, or paid
19 consultant of a Texas trade association in the field of health carll
20 or health care services.
21 SECTION 53.03. Sect ion 501.136, Government Code, is amended

23 Sec. 501.136. TERMS OF OFFICE FOR PUBLIC MEMBERS.
24 Committee members appointed by the governor serve staggered

25 four-year [sill yeal) terms, with the term of one of those member,
26 expiring on February 1 of each odd-numbered year. Other committee
27 members serve at the will of the appointing official or until
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1 termination of the member's employment with the entity the member
2 represents.
5 Sec. 501.147. DEPARTMENT [CQMMI'l"l'EE] AUTHORITY TO
6 CONTRACT. (a) The department Iss1l\Illitteel may enter into a contract
7 [SR seJ:lalf 9f tJ:le aeIlartRleRt] to fully implement the managed health
8 care plan under this subchapter. A contract entered into under this
9 subsection must include provisions necessary to ensure that The
10 University of Texas Medical Branch at Galveston is eligible for and
11 makes reasonable efforts to participate in the purchase of
12 prescription drugs under Section 340B, Public Health Service Act
13 (42 U.S.C. Section 256b).
14 (b) The department IS91l\1llittee] may!, iR aaaitisR ts
15 IlrsviaiR~ serviees ts tJ:le aeIlartRleRt,l contract with other
16 governmental entities for similar health care services and
17 integrate those services into the managed health care provider
18 network.
19 (c) In contracting for implementation of the managed health
20 care plan, the department IsSRlRlittee], to the extent possible,
21 shall integrate the managed health care provider network with the
22 public medical schools of this state and the component and
23 affiliated hospitals of those medical schools. The contract must
24 authorize The University of Texas Medical Branch at Galveston to
25 contract directly with the Texas Tech University Health Sciences
26 Center for the provision of health care services. The Texas Tech
27 University Health Sciences Center shall cooperate with The
82R32127 JJT-D 137

S.B. No. 1811
1 University of Texas Medical Branch at Galveston in its efforts to

2 participate in the purchase of prescription drugs under Section
3 340B, Public Health Service Act (42 U.S.C. Section 256b).

4 (d) For services that the public medical schools and their
5 components and affiliates cannot provide, the depart.ment,

6 [ssRlIlIittee] shall initiate a competitive bidding process fOI·
7 contracts with other providers for medical care to persons confined

8 by the department.
9 (e) The department, in cooperation with the committee, rna"
10 contract with an individual or firm for a biennial review of, and
11 report concerning, expenditures under the managed health care plan:..
12 The review must be conducted by an individual or firm exper ienced il!

13 auditing the state's Medicaid expenditures and other medica~
14 expenditures. Not later than September 1 of each even-nurnbere,!

15 year, the department shall submit a copy of a report under thi~
16 section to the health care providers that are part of the managed
17 health care provider network established under this subchapter, th~
18 Legislative Budget Board, the governor, the lieutenant governor L
19 and the speaker of the house of representatives.


22 (a) The committee may [eRall]:
23 (1) develop statewide policies for the delivery cf
24 correctional health care;

25 (2) [lRaiat:aiR 88Fltraets for l:lealtk eare servieeo j:flo
26 oOFls\iltatisA ,.'itA tk€ e1e13artm€at aaEl tRG aealth eare previaersJ

27 If*] communicate with the department and the
82R32127 JJT-D 138

S.B. No. 1811
1 legislature regarding the financial needs of the correctional

2 health care system;
3 (3) in conjunction with the department,
4 [ (4) allaeate ~\iRE1ifl§ lQaee 3ntailasle tl1rS\i§fl ls§islati'le
5 apprepriatisR6 fer eerreetieRall=lealtl:1 eare,
6 [~J monitor the expenditures of The University of
7 Texas Medical Branch at Galveston and the Texas Tech University
8 Health Sciences Center to ensure that those expenditures comply
9 with applicable statutory and contractual requirements;
10 111 [+&+J serve as a dispute resolution forum in the
11 event of a disagreement relating to inmate health care services
12 between:
13 (A) the department and the health care providers;
14 or
15 (B) The University of Texas Medical Branch at
16 Galveston and the Texas Tech University Health Sciences Center;
17 ill [+:7+] address problems found through monitoring
18 activities by the department and health care providers, including
19 requiring corrective action if care does not meet expectations as
20 determined by those monitoring activities;
21 1§l [+8+J identify and address long-term needs of the'
22 correctional health care system; and
23 ill [+9+1 report to the Texas Board of Criminal
24 Justice at the board's regularly scheduled meeting each quarter on
25 the committee's policy recommendations [sesisisRs1, the financial
26 status of the correctional health care system, and corrective
27 actions taken by or required of the department or the health care
82R32l27 JJT-D 139

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1 providers.
2 SECTION 53.06. (a) The Correctional Managed Health Care
3 Committee established under Section 501.133, Government Code, as
4 that section existed before amendment by this article, is abolished
5 effective November 30, 2011.
6 (b) An appointing official under Section 501.133,
7 Government Code, shall appoint the members of the Correctional
8 Managed Health Care Committee under Section 501.133, Government.
9 Code, as amended by this Act, not later than November 30, 2011. ThE,
10 governor shall appoint one public member to serve a term that:
11 expires February 1, 2013, and one public member to serve a term that:
12 expires February 1, 2015.

13 (c) The term of a person who is serving as a member of thH
14 Correctional Managed Health Care Committee immediately before thtl
15 abolition of that committee under Subsection (a) of this section
16 expires on November 30, 2011. Such a person is eligible fo:~
17 appointment by an appointing official to the new committee unde:c

18 Section 501.133, Government Code, as amended by this article.
19 ARTICLE 54. GENERAL HOUSING MATTERS
20 SECTION 54.01. Section 481. 078, Government Code, is amende:1
21 by amending Subsection (c) and adding Subsections (d-1) and (d-2)
22 to.read as follows:
23 (c) Except as provided by Subsections [SYhseetieR] (d) ~~
24 (d-1), the fund may be used only for economic development,

25 infrastructure development, community development, job training
26 programs, and business incentives.

27 (d-1) The fund may be used for the Texas homeless housing
82R32127 JJT-D 140

S.B. No. 1811
1 and services program administered by the Texas Department of
2 Housing and Community Affairs. Subsections (e-1), (f), (g), (h),
3 Ii), and (i) and Section 481.080 do not apply to a grant awarded for
4 a purpose specified by this subsection.
5 (d-2) Notwithstanding Subsection (e), dur ing the state
6 fiscal biennium that begins on September 1, 2011, the governor
7 shall use not less than $10 million from the fund for grants
8 described by Subsection (d-1). This subsection expires September
9 1, 2013.
11 by adding Subsection (a-I) to read as follows:
12 (a-I) For grants awarded for a purpose specified by Section
13 481.078(d-1), the report must include only the amount and purpose
14 of each grant.
15 SECTION 54.03. Subchapter K, Chapter 2306, Government Code,
17 Sec. 2306.2585. HOMELESS HOUSING AND SERVICES PROGRAM. (a)
18 The department may administer a homeless housing and services
19 program in each municipality in this state with a population of
20 285,500 or more to:
21 (1) provide for the construction, development, or
22 procurement of housing for homeless persons; and
23 (2) provide local programs to prevent and eliminate
24 homelessness.
25 (b) The department may adopt rules to govern the
26 administration of the program, including rules that:
27 (1) provide for the allocation of any available
82R32127 JJT-D 141

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S •B. No. 1811
1 funding; and
2 (2) provide detailed guidelines as to the scope of the
3 local programs in the municipalities described by Subsection (a).
4 (c) The department may use any available revenue, including,

5 legislative appropriations, and shall solicit and accept gifts ana
6 grants for the purposes of this section. The department shall USE
7 gifts and grants received for the purposes of this section beforE
8 using any other revenue.

10 this Act receives a vote of two-thirds of all the members elected t(,
11 each house, as provided by Section 39, Article III, Texan
12 Constitution. If this Act does not receive the vote necessary fOl:
14 ARTICLE 55. UNIFORM GRANT AND CONTRACT MANAGEMENT
17 Sec. 783.004. OFFICE OF THE COMPTROLLER [CElVERNElR':;
18 ElFFIGE1. The office of the comptroller ['i!SVelRSJi'S sffieel is th,~
19 state agency for uniform grant and contract management.

20 SECTION 55.02. Subsections (a) and (b), Section 783.005,

22 (a) The comptroller [§s¥erRsr's sffieel shall develop
23 uniform and concise language for any assurances that a local

24 government is required to make to a state agency.
25 (b) The comptroller [§e'lelR8Ji' s sffiee 1 may:
26 (1) categor ize assurances according to the type of
27 grant or contract;
82R32127 JJT-D 142

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S . B. No. 1811
1 (2) designate programs to which the assurances are
2 applicable; and
3 ( 3) revise the assur ances .
6 Sec. 783.006. STANDARD FINANCIAL MANAGEMENT CONDITIONS.
7 (a) The comptroller [§evezRez's effieel shall compile and
B distribute to each state agency an official compilation of standard
9 financial management conditions.
10 (b) The comptroller [§eveIRez's effieel shall develop the
11 compilation from Federal Management Circular A-I02 or from a
12 revision of that circular and from other applicable statutes and
13 regulations.
14 (c) The comptroller [§e'leIR9Z 'e effiee 1 shall include in

15 the compilation official commentary regarding administrative or
16 judicial interpretations that affect the application of financial
17 management standards.·
18 (d) The comptroller [§'evelfleI's effieel may:
19 ( 1) categor ize the f inanc ial management conditions
20 according to the type of grant or contract;
21 (2) designate programs to which the conditions are
22 applicable; and
23 (3) revise the conditions.
24 SECTION 55.04. Subsection (d), Section 783.007, Government
26 (d) The agency shall file a notice of each proposed rule
27 that establishes a variation from uniform assurances or standard
82R32127 JJT-D 143

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1 condit ions with the comptroller [~e ... erRer 's effiee I .
2 SECTION 55.05. Subsection (b), Section 783.008, Government
4 (b) On receipt of a request for a single audit or audit
5 coordination, the comptroller [~e ... erRer's effiee) in consultation
6 with the state auditor shall not later than the 30th day after thE!
7 date of the request designate a single state agency to coordinatE!
8 state audits of the local government.
9 .ARTICLE 56. FRANCHISE TAX APPLICABILITY AND EXCLUSIONS
10 SECTION 56.01. Section 171. 0001, Tax Code, is amended b~r
11 adding Subdivisions (I-a), (10-a), (10-b), and (II-b) to read a:i

12 follows:
13 (I-a) "Artist" means a natural person or an entity tha~
14 contracts to perform or entertain at a live entertainment event.

15 (lO-a) "Live entertainment event" means an event thal:,
16 occurs on a specific date to which tickets are sold in advance by a
17 third-party vendor and at which:
18 (A) a natural person or a group of natural
19 persons, physicallY present at the venue, performs for the purpose
20 of entertaining a ticket holder who is present at the event;
21 (B) a traveling circus or animal show perforrrs
22 for the purpose of entertaining a ticket holder who is present at
23 the event; or
24 (C) a historical, museum-quality artifact is c,n
25 display in an exhibition.
26 (10-b) "Live event promotion services" means serViCE!S
27 r elated to the promot ion, coordinat ion, operation, or management (If
82R32127 JJT-D 144

S.B. No. 1811
1 a live entertainment event. The term includes services related to:
2 (A) the provision of staff for the live
3 entertainment event; or
4 (B) the scheduling and promotion of an artist
5 performing or entertaining at the live entertainment event.
6 (II-b) "Qualified live event promotion company" means
7 a taxable entity that:
8 (A) receives at least 60 percent of the entity's
9 annual total revenue from the provision or arrangement for the
10 provision of three or more live event promotion services;
11 (B) maintains a permanent nonresidential office
12 from which the live event promotion services are provided or
13 arranged;
14 (C) employs 10 or more full-time employees during

15 all or part of the period for which taxable margin is calculated;
16 (0) does not provide services for a wedding or
17 carnival; and
18 (E) is not a movie theater.
19 SECTION 56.02. Subsection (c), Section 171.0002, Tax Code,
21 (c) "Taxable entity" does not include an entity that is:

22 (1) a grantor trust as defined by Sections 671 and
23 7701(a) (30) (E), Internal Revenue Code, all of the grantors and
24 beneficiaries of which are natural persons or charitable entities
25 as described in Section 50l{c) (3), Internal Revenue Code, excluding
26 a trust taxable as a business entity pursuant to Treasury
27 Regulation Section 301. 7701-4 (b);
82R32127 JJT-O 145

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

2 7701 (a) (30) (D), Internal Revenue Code, excluding an estate taxable
3 as a business entity pursuant to Treasury Regulation Section

4 301.7701-4(b);
5 (3) an escrow;
6 (4) a real estate investment trust (REIT) as defined

7 by Section 856, Internal Revenue Code, and its "qualified REI'l:
8 subsidiary" entities as defined by Section 856(i)(2), Internal

9 Revenue Code, provided that:
10 (A) a REIT with any amount of its assets in direct

11 holdings of real estate, other than real estate it occupies fOl
12 business purposes, as opposed to holding interests in limitecl
13 partnerships or other entities that directly hold the real estate,
14 is a taxable entity; and

15 (B) a limited partnership or other entity thaI:
16 directly holds the real estate as described in Paragraph (A) is no1:
17 exempt under this subdivision, without regard to whether a REr~
18 holds an interest in it;
19 (5) a real estate mortgage investment conduit (REMIC) ,
20 as defined by Section 860D, Internal Revenue Code;

21(6) a nonprofit self-insurance trust created unde::
22 Chapter 2212, Insurance Code, or a predecessor statute;

23 (7) a trust qualified under Section 401(a), Internal
24 Revenue Code; [&r 1
25 (8) a trust or other entity that is exempt under
26 Section SOl(c) (9), Internal Revenue Code; or
27 (9) an unincorporated entity organized as a political
82R32127 JJT-D 146

S . B. No. 1811
1 committee under the Election Code or the provisions of the Federal
2 Election Campaign Act of 1971 (2 U. S. C. Section 431 et seg. ) .
4 adding Subsections (g-5) and (g-7) to read as follows:
5 (g-5) A taxable entity that is a qua1if ied live event
6 promotion company shall exclude from its total revenue, to the
7 extent included under Subsection (c)(l)(AI, (c)(2)(A), or (c)(3), a
8 payment made to an artist in connection with the provision of a live
9 entertainment event or live event promotion services.
10 (g-7) A taxable entity that is a qualified courier and
11 logistics company shall exclude from its total revenue, to the
12 extent included under Subsection (C)(l)(AI, (cl(2)(A), or (c)(3),
13 subcontracting payments made by the taxable entity to nonemployee
14 agents for the performance of delivery services on behalf of the
15 taxable entity. For purposes of this subsection, "gualified
16 cour ier and logistics company" means a taxable entity that:
17 (1) receives at least 80 percent of the taxable
18 entity's annual total revenue from its entire business from a
19 combination of at least two of the following courier and logistics
20 services:
21 (AI expedited same-day delivery of an envelope,
22 package, parcel, roll of architectural drawings, box, or pallet;
23 (B) temporary storage and delivery of the
24 property of another entity, including an envelope, package, parcel,
25 roll of architectural drawings, box, or pallet; and
26 (C) brokerage of same-day or expedited courier
27 and logistics services to be completed by a person or entity under a
82R32127 JJT-O 147

S. B. No. 1811
1 contract that includes a contractual obligation by the taxahle
2 entity to make payments to the person or entity for those services;
3 (2) dur ing the per iod on which margin is based, is
4 registered as a motor carrier under Chapter 643, Transportation,
5 Code, and if the taxable entity operates on an interstate basis, is,
6 registered as a motor carrier or broker under the unified carrier
7 registration system, as defined by Section 643.001, Transportatior,
8 Code, dur ing that per iod;
9 (3) maintains an automobile liability insurancE,
10 policy covering individuals operating vehicles owned, hired~~
11 otherwise used in the taxable entity's business. with a combine't
12 single limit for each occurrence of at least $1 million;
13 (4) maintains at least $25,000 of cargo insurance;
14 (5) maintains a permanent nonresident ial off ice frOl~
15 which the courier and logistics services are provided or arranged;

16 (6) has at least five full-time employees during th~
17 per iod on which margin is based;

18 (7) is not doing business as a livery service, florah
19 delivery service, motor coach service, taxicab service, buildin~
20 supply delivery service, water supply service I fuel or energ~
21 supply service, restaurant supply service, commercial moving an~
22 storage company, or overnight delivery service; and

23 . (8) is not delivering items that the taxable entity or
24 an affiliated entity sold.
25 SECTION 56.04. This article applies only to' a report
26 or iginally due on or after January 1, 2012.
27 SECTION 56.05. This article takes effect January 1, 2012.
82R32127 JJT-D 148

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S.B. No. 1811

1 ARTICLE 57. ENTERPRISE AND EMERGING TECHNOLOGY FUNDS
3 by amending Subsections (e) and (j) and adding Subsections (f-1),
4 (f-2), and (h-1) to read as follows:
5 (e) The administration of the fund is considered to be a
6 trusteed program within the office of the governor. The governor
7 may negotiate on behalf of the state regarding awarding, by grant,
8 money appropriated from the fund. The governor may award money
9 appropriated from the fund only with the [el£jlreS8 Ilrittefl] prior
10 approval of the lieutenant governor and speaker of the house of
11 representatives. For purposes of this subsection, an award of
12 money appropriated from the fund is considered disapproved by the
13 lieutenant governor or speaker of the house of representatives if
14 that officer does not approve the proposal to award the grant before
15 the 91st day after the date of receipt of the proposal from the
16 governor. The lieutenant governor or the speaker of the house of
17 representatives may extend the review deadline applicable to that
18 officer for an additional 14 days by submitting a written notice to
19 that effect to the governor before the expiration of the initial
20 review period.
21 (f-1) A grant agreement must contain a provision:
22 (1) requiring the creation of a minimum number of jobs
23 in this state; and
24 (2) specifying the date by which the recipient intends
25 to create those jobs.
26 (f-2) A grant agreement must contain a provision providing
27 that if the recipient does not meet job creation performance
82R32127 JJT-D 149

S . B. No. 1811
1 targets as of the dates specified in the agreement, the recipient,
2 shall repay the grant in accordance with Subsection (j).
3 (h-1) At least 14 days before the date the governor intends:
4 to amend a grant agreement, the governor shall notify and provide cl
5 copy of the proposed amendment to the speaker of the house oj'
6
7 e£iieeFs ef the stanainq eemmittees eeth ft6HSeS ef tRc~
~>
8 ieEfislaetlle \;it:h primary ;\i:l'ioaietisA ever eesFl8mis ae\telepm9Rt ~'
9 (j) Repayment of a grant under Subsection (f)(l)(A) ~hall
10 [!lIai'] be prorated to reflect a partial attainment of job creatioll
11 performance targets, and may be prorated for a partial attainmen":

12 of other performance targets.
15 (a) Not later than January 31 [~] of each year, the governor
16 shall submit to the lieutenant governor, the speaker of the house o~
17 representatives, and the standing committee of each house of th~
18 legislature with primary jurisdiction over economic development

19 matters and post on the office of the governor's Internet website a
20 report that includes the following information regarding award~
21 made under the fund during each [fer tae] preceding [taree] state
22 fiscal year [years]:
23 (1) the total number and amount of awards made;
24 (2) the number and amount of awards made under
25 Subchapters D, E, and F;
26 (3) the aggregate total of private sector investment,
27 federal government funding, and contributions from other sourCE:S
82R32127 JJT-D 150

• •
S.B. No. 1811

1 obtained in connection with awards made under each of the
2 subchapters listed in Subdivision (2);
3 (4) the name of each award recipi~nt and the amount of
4 the award made to the recipient; and
5 (5) a brief description of the equity position that
6 the governor, on behalf of the state, may take in companies
7 receiving awards and the names of the companies in which the state
8 has taken an equity position.
9 (b) The annual report must also contain.:..
10 (1) the total number of jobs actually created by each
11 proj ect receiving funding under this chapter;
12 (2) an analysis of the number of jobs actually created
13 by each proj ect receiving funding under this chapter; and
14 ill a brief description regarding:
15 (A) the methodology used to determine the
16 information provided under Subdivisions (1) and (2), which may be
17 developed in consultation with the comptroller's office;
18 ~ [~J the intended outcomes of projects
19 funded under Subchapter D during ~ [~] preceding [~J state
20 fiscal year [years J; and
21 (C) [-{-2+] . the actual outcomes of all projects
22 funded under Subchapter D during each preceding state fiscal year
23 [U'le f1:iHEi'S ellis\;eHse], including any financial impact on the state
24 resulting from a liquidity event involving a company whose project
25 was funded under that subchapter.
26 SECTION 57.03. Subchapter A, Chapter 490, Government Code,
82R32127 JJT-D 151

S . B. No. 1811
1 Sec. 490.006. VALUATION OF INVESTMENTS; INCLUSION IN ANNUAL:
2 REPORT. To the maximum extent practicable, the office of the:
3 governor shall annually perform a valuation of the equity positionE~
4 taken by the governor! on behalf of the state! in companie~~
5 receiving awards under the fund and of other investments made by thE,
6 governor, on behalf of the state! in connection with an award undel~
7 the fund. The valuation must:

8 C1) be based on a methodology that:
9 CA) may be developed in consultation with th,~
10 comptroller's office; and

11 (B) is consistent with generally acceptel!
12 accounting principles; and
13 (2) be included with the annual report required unde:~
14 Sect ion 490.005.

17 Sec. 490.052. APPOINTMENT TO COMMITTEE [BY COVERNOR]i
18 NOMINATIONS.
20 by amending Subsection (a) and adding Subsections (a-I) and (a-2)
22 (a) The governor shall appoint to the committee 13
23 individuals nominated as provided by Subsection (b).
24 (a-I) The lieutenant governor shall appoint two individuals
25 to the committee.
26 (a-2) The speaker of the house of representatives shall
27 appoint two individuals to the committee.
82R32127 JJT-D 152

I
~(b) All information obtained and maintained pursuant to Subsection
(a). including information derived from the financial statements.
is confidential and is not subject to disclosure under Chapter
552.
(cl The governor. on request or in the normal course of official
business. shall provide information that is confidential under
Subsection (bl to the state auditor's office.
(dl This section does not affect release of information for ~
~~
leaislative nurnoses __ . 552 OOB"~-(;;,;mernment COQe-:.
uursuant to SectJ.on.
S.B. No. 1811
3 Sec. 490.0521. FINANCIAL STATEMENT REQUIRE~Each
K
member
4 of the committee shall file with the office of the governor a
5 verified financial statement complying with Sections 572.022
6 through 572.0252 as is required of a state officer by Section
~. 572.02l.
.
B SECTWN 57.07. Section 490.054, Government Code, is amended
10 Sec. 490.054. TERMS. Members of the committee
11 appointed by the governor serve staggered two-year terms, subject
12 to the pleasure of the governor.
13 (b) Members of the committee appointed by the lieutenant
14 governdr or the speaker of the house of representatives serve
15 two-year terms.
17 by adding Subsections (c), (d), and (e) to read as follows:
18 (c I Each entity recommended by the committee for an award of
19 money from the fund as provided by this chapter shall obtain and
20 provide the following information to the office of the governor:
21 (1) a federal criminal history background check for
22 each principal of the entity;
23 (2) a state cr iminal history background check for each
24 pr incipal of the ent ity;
25 (31 a credit check for each principal of the entity;
26 (4) a copy of a government-issued form of photo
27 identification for each principal of the entity; and
153
S.B. No. 1811
1 (5) informat ion regarding whether the entity or :i
2 principal of the entity has ever been subject to a sanction impose~
3 by the Securities and Exchange Commission for a Violation of

4 applicable federal law.
5 (d) For purposes of Subsect ion (c), "pr incipal" means:
6 (1) an officer of an entity; or
7 (2) a person who has at least a 10 percent ownershiE

8 interest in an entity.
9 (e) With each proposal to award funding submitted by the
10 governor to the lieutenant governor and speaker of the house cf

11 representatives for purposes of obtaining prior approval, tt.e
12 governor shall provide each officer with a copy of the informatic,n
13 provided by the appropriate entity under Subsection (c).
14 SECTION 57.09. Section 490.057, Government Code, is amende,d
16 Sec. 490.057. CONFIDENTIALITY. (a) Except as provided k~
17 Subsection (b), information [Iflfe;[llla~iefll collected by the

18 governor I s off ice, the committee, or the committee's advisol:y
19 panels concerning the identity, background, finance, marketing
20 plans, trade secrets, or other commercially or. academicaLly
21 sensitive information of an individual or entity being considerl!d
22 for, receiving, or having received an award from the fund is
23 confidential unless the individual or entity consents to disclosu::e

24 of the information.
25 (b) The following information collected by the governor's
26 office, the committee, or the committee's advisory panels und'H
27 this chapter is public information and may be disclosed und,:!!.
82R32127 JJT-D 154

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82R32127 JJT-D 155

S.B. No. 1811
1 appropr iated from the fund is considered disapproved by the
2 lieutenant governor or speaker of the house of representatives if
3 that officer does not approve the proposal to award funding before
4 the 91st day after the date of receipt of the proposal from the
5 governor. The lieutenant governor or the speaker of the house of
6 representatives may extend the review deadline applicable to that
7 officer for an additional 14 days by submitting a written notice to
8 that effect to the governor before the expiration of the initial
9 review period.
10 Subsection (aI, Section 490.151, Governmen
11 Code, is 1tlllo~
12 (al fund for by

13 this fund in to
14 [reserves fer iRSeA€ives for
15 incentives to collaborate
16 higher education
17 intended the commercialization
18 from the institutions of hi her
19
20 SECTION 57.12. Subchapter D, Chapter 490, Government Code,
22 Sec. 490. 1521 . MINUTE S OF CERTAIN MEETINGS. (a) Each
23 regional center of innovation and commercialization established
24 under Section 490.152, including the Texas Life Science Center for
25 Innovation and Commercialization, shall keep minutes of each
26 meeting at which applications·for funding under this subchapter are
27 evaluated. The minutes must:
82R32127 JJT-D 156

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82R32127 JJT-D 157

S.B. No. 1811
1 (1) [heIR tl:le first $HiQ lRillieR aepesitea iR tl:le
2 Rele1ifl~ faRa 18 aA~l state fissal SieftRi\:iRU
3 [(A) al:lliFl~ the state fissal SieRRi\:lRl eRe1iR~
4 A~§~st 31, dQQ?
5 [(i) ~7 pereeRt te eRe '±'euao ERterpris8
6 F~Ra ereatea ~Raer SeetieR 481.Q78, beVerRlReRt Ceae, eHeept tl:lat

7 tA8 amSl::1At traRsferree liflEler tRi6 13aragra13R &lay flat sussea tae
8 am8\i:Rt a'llrsflria1;ea sy tAe le'!jislat\ire t9 tAB ~e][as Eaterprise FliRel
9 iR tl:iat iJieRfli\2HlI aRe
10 [ (H) B fJ€l88Rt te tl:le 8),i118 deve lepm€Rt

11 f\:lRQ ereatee HAser SeetisR 3Q3.QQ3, ense:@t tRat tl:le aIR9\:lRt
12 traRsferred \:lRaer tRis Jl at al§Jl afJA: may Ret 8l£seee tl:le aIR8tlAt
13 aflflreflriatea sy tl:le le§islat~re te tl:le sliille aeveleflIR9Rt flr9§ralll

14 stlate~ie6 aRe aetivities 18 tHat SieFlRil:iHlI aRe
15 [~] during any state fiscal biennium beginning
16 on or after September 1, 2007, 100 [T
17 [(i) 7§ fl8188Rt t8 tRe ~el£a8 }!;Rter,rioe
18 Fl:lRQ ereatea \:IRSer SeetisR 481,Q7Q, Ce¥er~meRt Ssse, eKee~t tkat

19 tHe amQYRt txaftsfelrea UReal tHis para~rajla may Ret elEseea tke
20 3JR9YRt" apPx9f1riatea sr liRe leqislat1:lre '£9 tHe 9:'ex3s ERtaerEJzise FYAS
21 iR tHat 13 iOflAi\i;R\, aRa
22 [(ii) d§) percent to the skills development

23 fund created under Section 303.003, except that the amount
24 transferred under this subdivision [Fara§rapl:l] may not exceed the
25 amount appropriated by the legislature to the skills development
26 program strategies and activities in that biennium; and
27 (2) any remaining amount in the holding fund after the
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1 distribution under Subdivision (1) to the training stabilization
2 fund created under Section 302.10l.
3 (b) If, on September 1 of a year, the commission determines
4 that the amount in the compensation fund will be at or below 100
5 percent of its floor as computed under Section 204.061 on the next
6 October 1 computation date, the commission shall transfer to the
7 compensation fund as much of the amount in the holding fund as is
8 necessary to raise the amount in the compensation fund to 100
9 percent of its floor, up to and including the entire amount in the
10 holding fund. The commission shall transfer any remaining balance
11 in the holding fund to the [~eHa8 Eftter~Fise F~ft~, t~el skills
12 development fund[Tl and the training stabilization fund in the
13 manner lift t~e ~erseftta§'8sl prescribed by Subsection (a).
14 SECTION 57.15. Subsections (b) and (c), Sect ion 302.101,
15 Labor Code, are amended to read as follows:
16 (b) Money in the training stabilization fund may be used in
17 a year in which the amounts in the employment and training
18 investment holding fund are insufficient to meet the legislative
19 appropriation for that fiscal year for [eit~eF t~e ~eHa8 EftteFflFiee
20 F~Ra ElF 1 the skills development program strategies and activities.
21 (c) Money in the training stabilization fund shall be
22 transferred to the [~eHas ERteF~Ii8e F~ft~ aR~ t~e] skills
23 development fund under Subsection (b) not later than September
24 30. [~~e tlaRsfer ~RQer SaesestiElR (e) s~all ElElRsist Elf
25 traAsferriR§ e7 fleraeR'E sf tiRe m9Rey iR tl:le traiRiREJ staailiaatieR
26 fld:RQ te tl:l:e ':Pexas ERterprio€ FldfUi arHl 33 pereeRt af tee fft8Rey iR the
27 tFaiftift§ staeilisatiElR f~Ra tEl t~e skills aevelEl~meRt f~Ra.l The
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1 amount transferred from the training stabilization fund may not
2 exceed thE! amounts appropriated to the ['i'ellas ERtelfllise FURe aRe]
3 skills development program strategies and activities in the fiscal
4 year in which the transfer is made.
5 SEC'rION 57.16. Sections 481.078(e) and 490.101(£),
6 Government Code, as amended by this article, and Section
7 490.101(f-1), Government Code, as added by this article, apply only
8 to a proposal for an award from the Texas Enterpr ise Fund or Texas
9 emerging technology fund submitted by the governor to the
10 lieutenant governor or speaker of the house of representatives for
11 prior approval on or after the effective date of this article. A
12 proposal submitted by the governor for prior approval before the
13 effective date of this article is governed by the law in effect on
14 the date the proposal was submitted for that approval, and the
15 former la~1 is continued in effect for that purpose.
16 SECTION 57.17. Section 48l.078(j}, Government Code, as
17 amended by this article, and Sections 481.078(f-l} and (f-2),
18 Government Code, as added by this article, apply only to a grant
19 agreement that is entered into on or after the effective date of
20 this article. A grant agreement that is entered into before the
21 effective date of this article is governed by the law in effect on
22 the date the agreement was entered into, and the former law is
24 SECTION 57.18. (a) The terms of the members of the Texas
25 Emerging 'rechnology Advisory Committee serving immediately before
26 the effective date of this article expire September 1, 2011.
27 (b) As soon as practicable after this article takes effect,
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1 the governor, lieutenant governor, and speaker of the house of
2 representatives shall appoint members to the Texas Emerging
3 Technology Advisory Committee established under Subchapter B,

4 Chapter 490, Government Code, in a manner that complies with that
5 subchapter, as amended by this article.
6 (c) At the first meeting of members of the Texas Emerging
7 Technology Advisory Committee established under Subchapter B,
8 Chapter 490, Government Code, as amended by this article, occurring
9 on or after September 1, 2011, the members appointed by the governor

10 shall draw lots to determine which six members will serve a term
11 expiring September 1, 2012, and which seven members will serve a
12 term expir ing September l, 2013.
13 ARTICLE 58. AD VALOREM TAXATION OF LAND USED TO RAISE OR KEEP BEES

14 SECTION 58.01. Subdivision (2), Section 23.51, Tax Code, is
16 (2) "Agricultural use" includes but is not limited to
17 the following activities: cultivating the soil, producing crops for
18 human food, animal feed, or planting seed or for the production of
19 fibers; floriculture, viticulture, and horticulture; raising or
20 keeping livestock; raising or keeping exotic animals for the
21 production of human food or of fiber, leather, pelts, or other
22 tangible products having a commercial value; planting cover crops
23 or leaving land idle for the purpose of participating in a
24 governmental program, provided the land is not used for residential
25 purposes or a purpose inconsistent with agricultural use; and
26 planting cover crops or leaving land idle in conjunction with
27 normal crop or livestock rotation procedure. The term also
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1 includes the use of land to produce or harvest logs and posts for
2 the use in constructing or repairing fences, pens, barns, or othel
3 agr icultur al improvements on adj acent qualified open-space lanel
4 having the same owner and devoted to a different agricultural use.
5 The term also includes the use of land for wildlife management. - .
ThE!
6 term also includes the use of land to raise or keep bees fOJ:
7 pollination or for the production of human food or other tangibll~
8 products having a commercial value, provided that the land used ill
9 not less than 5 or more than 20 acres.
10 SECTION 58.02. This article applies only to the appraisal
11 of land for ad valorem tax purposes-for a tax year that begins on 0::
12 after the effective date of this Act.
13 ARTICLE.59. PLACE OF BUSINESS OF A RETAILER FOR SALES TAX PURPOSES
14 SECTION 59.01. Subdivision (3), Subsection (a), Sectio:l
15 321. 002, Tax Code, is amended to read as follows:
16 (3) "Place of business of the retailer" means an
17 established outlet, office, or location operated by the retailer or
18 the retailer's agent or employee for the purpose of receiving
19 orders for taxable items and includes any location at which three or
20 more orders are received by the retailer during a calendar year. A
21 warehouse, storage yard, or manufacturing plant is not a "place of
22 business of the retailer" unless at least three orders are received
23 by the retailer during the calendar year at the warehouse, storage
24 yard, or manufacturing plant. An outlet, office, facility, or ~y
25 location that contracts with a retail or commercial business

26 [eR'ja'jea iR aeti"'ities t9 ,.'AieA tAia eA3flter aflll1iesl to process
27 for that business invoices, purchase orders, [~l bills of ladin~L
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1 or other equivalent records onto which sales tax is added~
2 including an office operated for the purpose of buying and selling

3 taxable goods to be used or consumed by the retail or commercial'
4 business, is not a "place of business of the retailer" if the
5 comptroller determines that the out let, off ice, facility, or
6 location functions or exists to avoid the tax imposed by this
7 chapter or to rebate a portion of the tax imposed by this chapter to
8 the contracting business. Notwithstanding any other provision of
9 this subdivision, a kiosk is not a "place of business of the
10 retailer." In this subdivision, "kiosk" means a small stand-alone
11 area or structure that:
12 (A) is used solely to display merchandise or to
13 submit orders for taxable items from a data entry device, or both;
14 (B) is located entirely within a location that is
15 a place of business of another retailer, such as a department store
16 or shopping mall; and
17 (C) at which taxable items are not available for
18 immediate delivery to a customer.
19 SECTION 59.02. This article takes effect September 1, 201lo
20 ARTICLE 60. TEXAS FARM AND RANCH LANDS CONSERVATION PROGRAM
21 SECTION 60.0L Subsection (b), Section 183.059, Natural
23 (b) To receive a grant from the fund under this subchapter,

24 an applicant who is qualified to be an easement holder under this
25 subchapter must submit an application to the council. The
26 application must:
27 (1) set out the parties' clear conservation goals
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1 consistent with the program;
2 (2) include a site-specific estimate-of-value

3 appraisal:by a licensed appraiser qualified to determine the market
4 value of the easement; and
5 (3) [aemsHsEraEe EAat EAe ~plieaHt is aBle te mateR
6 §Q f)eresat af tHe am9l3:Rt af tRe 'jzaat BeiA~ Sati~At, e9Rsie1eliR'j tHat
7 the S8l:1flSil may BReese te a118\: a aSflatisR af fJart af tHe afJflraiseEl

8 valHe sf t~e eas€meat ~a ~e eeRsi~ered as fA liiRe mat8BiH§ fYRdsl
9 aM
10 [+4+) include a memorandum of understanding signed by

11 the landolmer and the applicant indicating intent to sell an
12 agricultural conservation easement and containing the terms of the
13 contract for the sale of the easement.
14 ARTICLE 61. CERTAIN CONTRIBUTION RATE COMPUTATIONS
15 SECTION 61. 01. Sect ion 815.402, Government Code, is amended
16 by adding Subsections (a-I) and (h-1) to read as follows:
17 (a-I) Notwithstanding Subsection (a) (1), if the state
18 contribution to the retirement system is computed using a
19 percentage less than 6.5 percent for the state fiscal year
20 beginning September 1, 2011, the member's contribution is not
21 required to be computed using a percentage equal to the percentage
22 used to compute the state contribution for that biennium. This
23 subsection expires September I, 2012.
24 (h-I) Notwithstanding Subsection (hI, if the state
25 contribution to the law enforcement and custodial officer
26 supplemental retirement fund is computed using a percentage less
27 than 0.5 percent for the state fiscal year beginning September 1,
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1 2011/ the member's contr ibution is not required to be computed
2 using a percentage equal to the percentage used to compute the state
3 contribution for that biennium. This subsection expires September
4 1, 2012.
5 ARTICLE 62. QUINQUENNIAL REPORTING OF CERTAIN INFORMATION FOR
6 UNCLAIMED PROPERTY
7 SECTION 62.01. Subsection (a) / Section 411.0111/
8 Government Code / is amended to read as follows:
9 (a) Not later than June 1 of every fifth [eaefil year, the
10 department shall provide to the comptroller, for the purpose of
11 assisting the comptroller in the identification of persons entitled
12 to unclaimed property reported to the comptroller / the name /
13 address, social security number, date of birth, and driver's
14 license or state identification number of each person about whom
15 the department has such information in its records.
17 Code, as added by Chapter 232 (S.B. 1589), Acts of the 81st
18 Legislature, Regular Session / 2009/ is amended to read as follows:
19 (a) Not later than June 1 of every fifth [eaefil year, the
20 retirement system shall provide to the comptroller / for the purpose
21 of assisting the comptroller in the identification of persons
22 entitled to unclaimed property reported to the comptroller, the
23 name, address, social security number, and date of birth of each
24 member, retiree, and beneficiary from the retirement system's
25 records.
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1 (a) Not later than June 1 of every fifth [~l year, the
2 retirement system shall provide to the comptroller, for the purpose
3 of assisting the comptroller in the ·identification of persons
4 entitled to unclaimed property reported to the comptroller, the
5 name, addIess, social security number, and date of birth of each
6 member, retiree, and beneficiary from the retirement system's
7 records.
8 SECTION 62.04. Subsection (a), Section 301.086, Labor Code,
10 (a) Not later than June 1 of every fifth [~l year, thE
11 commission shall provide to the comptroller, for the purpose of

12 assisting the comptroller in the identification of persons entitled
13 to unclaimed property reported to the comptroller, the name,
14 address, social security number, and date of birth of each person
15 about whom the commission has such information in its records.
16 SECTION 62.05. The Department of Public Safety, the
17 Employees Retirement System of Texas, the Teacher Retirement System
18 of Texas, and the Texas Workforce Commission shall providl~
19 information to the comptroller as required by Sections 411.01I1(a),

20 81l.010(a), and 821.010(a), Government Code, and Sectio:.l
21 301.086(a), Labor Code, as amended by this article, beginning i~
22 2016.
23 ARTICLE 63. AD VALOREM TAXATION OF CERTAIN STORED PROPERTY
24 SECTION 63.01. Subsection (a), Section 11.253, Tax Code, is
25 amended by amending Subdivision (2) and adding Subdivisions (5) and
26 (6) to read as follows:
27 (2) "Goods-in-transit" means tangible personal
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1 property that:
2 (A) is acquired in or imported into this state to
3 be forwarded to another location in this state or outside this
4 state;
5 (B) is stored under a contract of bailment by a
6 public warehouse operator [aetaiRea] at one or more public
7 warehouse facilities [a leeatieR] in this state that are not in any
8 way owned or controlled by [iR Ill:liel:l] the owner of the personal
9 property [sees Ret Nave a eireet: er iRdireat s·....ReIsllifi iRterest]
10 for the account of [aesemsliRlih eteriR~" maR""faet""riR~h
11 preeeeeiR~1 er fasrisatiR~ p""rpeeee sy] the person who acquired or

12 imported the property;
13 (C) is transported to another location in this
14 state or outside this state not later than 175 days after the date
15 the person acquired the property in or imported the property into
16 this state; and
17 (0) does not include oil, natural gas, petroleum
18 products, aircraft, dealer's motor vehicle inventory, dealer's
19 vessel and outboard motor inventory, dealer's heavy equipment
20 inventory, or retail manufactured housing inventory.
21 (5) "Bai lee" and "war ehouse" have the meanings
22 assigned by Section 7 .102, Business & Commerce Code.
23 (6) "Public warehouse operator" means a person that:
24 (A) is both a bailee and a warehouse; and
25 (B) stores under a contract of bailment, at one
26 or more public warehouse facilities, tangible personal property
27 that is owned by other persons solely for the account of those
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1 persons and not for the operator 's account.
2 SEC'rION 63.02. Section 11.253, Tax Code, is amended by
3 amending Subsections (e) and (h) and adding Subsections (j-1) and
4 (j-2) to read as follows:
5 (e) In determining the market value of goods-in-transit
6 that in the preceding year were [aseemlllea,) stored[, HlaR~faet~leia,.
7 ~raee6sea, al faerieatea] in this state, the chief appraiser shall
8 exclude the cost of equipment·, machinery, or mater ials that enterec.

9 into and became component parts of the goods-in-transit but were,
10 not themselves goods-in'-transit or that were not transported tCI
11 another location in this state or outside this state before thei
12 expiration of 175 days after the date they were brought into thin
13 state by the property owner or acquired by the property owner ill
14 this state. For component parts held in bulk, the chief appraiseJ:
15 may use the average length of time a component part was held by th,!
16 owner of the component parts dur ing the preceding year at a location
17 in this state that was not owned by or under the control of the owne:r
18 of the component parts in determining whether the component part"
19 were transported to another location in this state or outside thi3
20 state before the expiration of 175 days.
21 (h) The chief appraiser by written notice delivered to a
22 property owner who claims an exemption under this section may
23 require the property owner to provide copies of property reGords so
24 the chief appraiser can determine the amount and value of
25 goods:-in-transit and that the location in this state where the
26 goods-in-transit were detained for storage [assemllliR~, staliR~T
27 .HlaR~faetaliR~, ~leeessiR~, ar faerieatiR§ ~~r~ese6] was not owned
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1 by or under the control of the owner of the goods-in-transit. If
2 the property owner fails to deliver the information requested in
3 the notice before the 31st day after the date the notice is
4 delivered to the property owner, the property owner forfeits the
5 right to claim or receive the exemption for that year.
6 (j-1) Notwithstanding Subsection (j) or official action
7 that was taken under that subsection before September 1, 2011, to
8 tax goods-in-transit exempt under Subsection (b) and not exempt
9 under other law, a taxing unit may not tax such goods-in-transit in
10 a tax year that begins on or after January 1, 2012, unless the
11 governing body of the taxing unit takes action on or after September
12 1, 2011, in the manner required for official action by the governing
13 body, to provide for the taxation of the goods-in-transit. The
14 official action to tax the goods-in-transit must be taken before
15 .January 1 of the first tax year in which the governing body proposes
16 to tax goods-in-transit. Before acting to tax the exempt property,
17 the governing body of the taxing unit must conduct a public hear ing
18 as required by Section 1-n(d), Article VIII, Texas constitution.
19 If the governing body of a taxing unit provides for the taxation of
20 the goods-in-transit as provided by this subsection, the exemption
21 prescribed by. Subsection (b) does not apply to that unit. The
22 goods-in-transit remain subject to taxation by the taxing unit
23 until the governing body of the taxing unit, in the manner required
24 for official action, rescinds or repeals its previous action to tax
25 goods-in-transit or otherwise determines that the exemption
26 prescribed by Subsection (b) will apply to that taxing unit.
27 (j-2) Notwithstanding Subsection (;-1), if under Subsection
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1 (j) the governing body of a taxing unit, before September 1, 2011 I'.
2 took action to provide for the taxation of goods-in-transit ani!

3 pledged the taxes imposed on the goods-in-transit for the paymenj~
4 of a debt of the taxing unit, the tax off icials of the taxing uni'~
5 may continue to impose the taxes against the goods-in-transit unti1

6 the debt is discharged, if cessation of the imposition would impai'£.
7 the obligation of the contract by which the debt was created.
8 SECTION 63.03. Subdivision (2), Subsection (a), Sectiorl
9 11.253, 'I'ax Code, as amended by this article, applies only to an ad
10 valorem tax year that begins on or after January 1, 2012.

11 SECTION 63.04. (a) Except as provided by Subsection (b) of
12 this sect ion, this ar t icle takes effect January 1, 2012.
13 (b) Section 63.02 of this article takes effect September 1,
14 2011.
15 ARTICLE 64. FISCAL MATTERS CONCERNING ADVANCED PLACEMENT

16 SECTION 64.01. Subsection (h), Section 28.053, Educaticn
18 (h) The commissioner may enter into agreements with tr,e
19 college board and the International Baccalaureate Organization to
20 pay for all examinations taken by eligible public school studentf:.
21 An eligible student is a student [~l who:
22 ill takes a college advanced placement or
23 internationc:l baccalaureate course at a public school or who :ls
24 recommen.ded by the student I s pr incipal or teacher to take the tes1:L
25 and
26 (2) demonstrates financial need as determined in
27 accordance with guidelines adopted by the board that are consistent
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1 with the definition of financial need adopted by the college board

2 or the International Baccalaureate Organization.
3 ARTICLE 65. FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
5 Code., is amended to read as follows:
6 (c) To be eligible for an exemption under this section, a
7 person must:
8 (1) be a resident of this state;
9 (2) be a school employee serving in any capacity;
10 (3) for the init ial term or semester for which the
11 person receives an exemption under this section, have worked as an
12 educational aide for at least one school year dur ing the five years
13 preceding that term or semester;
14 (4) establish financial need as determined by
15 coordinating board rule;
16 (5) be enrolled at the institution of higher education
17 granting the exemption in courses required for teacher
18 certification in one or more subject areas determined by the Texas
19 Education Agency to be experiencing a critical shortage of teachers
20 at the public schools in this state [at tae iR8tit~tisR sf ai~aer
21 eaMeatisA: §raRtiR~ tHe e](e~tiaR] i
22 (6) maintain an acceptable grade point average as

23 determined by coordinating board rule; and
24 (7) comply with any other requirements adopted by the
25 coordinating board under this section.
26 SECTION 65.02. The change in law made by this article
27 applies beginning with tuition and fees charged for the 2011 fall
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1 semester. Tuition and fees charged for a term or semester before
2 the 2011 fall semester are covered by the law in effect during thE'
3 term or semester for which the tuition and fees are charged, and the,
4 former law is continued in effect for that purpose.
5 ARTICLE 66. FISCAL MATTERS CONCERNING DUAL HIGH SCHOOL AND JUNIOR
6 COLLEGE CREDIT
9 (c) The contact hours attributable to the enrollment of Ii
10 high school student in a course offered for joint high school and
11 junior college credit under this section, excluding a course fo:c
12 which the student attending high school may receive course credi~
13 toward the physical education curriculum requirement under Sectio.~
14 28.002(a) (2) (e), shall be included in the contact hours used t~
15 determine the junior college's proportionate share of the state

16 money appropriated and distributed to public junior colleges under
17 Sections 130.003 and 130.0031, even if the junior college waives
18 all or part of the tuition or fees for the student under Subsection
19 (b).
20 SECTION 66.02. This article applies beginning with funding

21 for the 2011 fall semester.
22 ARTICLE 67. CLASSIFICATION OF ENTITIES AS ENGAGED IN RETAIL TRADE,
23 FOR PURPOSES OF THE FRANCHISE TAX
24 SECTION 67.01. Subdivision (12), Section 171.0001, Ta.x
26 (12) "Retail trade" means..:.,
27 (A) the activities described in Division G of tbe
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1 1987 Standard Industrial Classification Manual published by the

2 federal Office of Management and Budget; and
3 (B) apparel rental activities classified as
4 Industry 5999 or 7299 of the 1987 Standard Industr ial
5 Classification Manual published by the federal Office of Management
6 and Budget.
7 SECTION 67.02. This article applies only to a report
8 originally due on or after the effective date of this Act.
9 SECTION 67.03. This article takes effect January 1,2012.
10 ARTICLE 68. RETENTION OF CERTAIN FOUNDATION SCHOOL FUND PAYMENTS
11 SECTION 68.01. Subchapter E, Chapter 42, Education Code, is
13 Sec. 42.2511. AUTHORIZATION FOR CERTAIN DISTRICTS TO RETAIN
14 ADDITIONAL STATE AID. (a) This section applies only to a school
15 district that was provided with state aid under former Section
16 42.2516 for the 2009-2010 or 2010-2011 school year based on the
17 amount of aid to which the district would have been entitled under
18 that section if Section 42.2516(g), as it existed on January 1,
19 2009, applied to determination of the amount to which the district
20 was entitled for that school year.
21 (b) Notwithstanding any other law, a district to which this
22 section applies may retain the state aid provided to the district as
23 described by Subsection (a).
25 SECTION 68.02. It is the intent of the legislature that the
26 authorization provided by Section 42.2511, Education Code, as added
27 by this article, to retain state aid described by that section is
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1 not affected by the expiration of that provision on September 1,

2 2013.
3 ARTICLE 69. THE STATE COMPRESSION PERCENTAGE

4 SECTION 69.01. Section 42.2516, Education Code, is amended
5 by adding Subsection (b-2) to read as follows:
6 (b-2) If a school district adopts a maintenance anc
7 operations tax rate that is below the rate egua1 to the product of:
8 the state compression percentage multiplied by the maintenance anc,

9 operations tax rate adopted by the district for the 2005 tax year,.
10 the commissioner shall reduce the district's entitlement under thi~~
11 section in proportion to the amount by which the adopted rate i~~
12 less than the rate egual to the product of the state compressior~
13 percentage multiplied by the rate adopted by the district for thl!

14 2005 tax year. The reduction required by this subsection apP1iel~
15 beginning with the maintenance and operations tax rate adopted for
16 the 2009 tax year.
17 ARTICLE 70. TEXAS GUARANTEED STUDENT LOAN CORPORATION; BOARD OF
18 DIRECTORS
20 Education Code, are amended to read as follows:

21 (a) The corporation is governed by a board of nine [,l,±1
22 directors in accordance with this section.

23 (b) The governor, with the advice and consent of the senate,
24 shall appoint the [~l members of [wI the board as follows:
25 (1) four [~l members who must have knowledge of or
26 experience in finance, including management of funds or business
27 operations;
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1 (2) one member who must be a student enrolled at a
2 postsecondary educational institution for the number of credit
3 hours required by the institution to be classified as a full-time
4 student of the institution; and
5 (3) four members who must be members the faculty or
6 administration of a [aR 81i§iele) postsecondary educational
7 institution that is an eligible institution for purposes of the
8 Higher Education Act of 1965, as amended[, as sefiR8s ey SestieR
9 §7,46].
10 SECTION 70.02. Section 57.17, Education Code, is amended to

11 read as follows:
12 Sec. 57.17. OFFICERS. The governor shall designate the
13 chairman from among the board's membership. The board shall elect
14 from among its members a [sRairmaR,) vice-chairman[T] and other
15 officers that the board considers necessary. The chairman and
16 vice-chairman serve for a term of one year and may be redesignated
17 or reelected, as applicable.
18 SECTION 70.03. Subsection. (d), Section 57.13, Education
19 Code, is 'r epealed.
20 ARTICLE 71. DRIVER'S LICENSES AND PERSONAL IDENTIFICATION
21 CERTIFICATES
22 SECTION 71.01. Subchapter A, Chapter 521, Transportation
23 Code, is amended by adding Section 521. 007 to read as follows:
24 Sec. 521.007. SECURITY, VALIDITY, AND EFFICIENCY STUDY.
25 (a) Notwithstanding any other law, the commission shall study
26 procedures and requirements necessary or advisable to ensure the
27 security, validity, and efficiency of driver's licenses and
82R32127 JJT-D 175

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S.B. No. 1B11

1 personal identification certificates issued under this chapter.
2 The study must include an analysis of potential cost savings!,
3 revenue issues, and other fiscal matters related to the issuance of
4 the licen:~e and certif icates. The commission shall adopt rules tc
5 implement any procedures or reguirements the commission finds are·
6 necessary or advisable.
7 (b) Notwithstandinq any other law, the commission by rulE,
B may spec ify the term of a dr iver' s license or per sonal,
9 identification certificate issued under this chapter.
10 SECTION 71. 02. The legislature declares that the Department:
11 of Public Safety had the statutory authority to adopt the rule!;
12 regarding driver's licenses and personal identification
13 certificates that are in effect on the effective date of thill
14 article and that the rules are valid.

15 SECTION 71. 03. This article takes effect immediately i':
16 this Act receives a vote of two-thirds of all the members elected tl)
17 each house, as provided by Section 39, Article III, Texa.;
1B Constitution. If this Act does not receive the vote necessary for
19 this article to have immediate effect, this article takes effect
20 SeptembeJ' 1, 2011.
21 ARTICLE: 72. FISCAL MATTERS CONCERNING LEASES OF PUBLIC LAND FOR

22 MINERAL DEVELOPMENT
23 SECTION 72.01. Subsections (a) and (c), Section B5.66,
25 (a) If oil or other minerals are developed on any of the
26 lands leased by the board, the royalty or money as stipulated in the
27 sale shall be paid to the general land office at Austin on or before
82R32127 JJT-D 176

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S.B. No. 1811

1 the last day of each month for the preceding month during the life
2 of the rights purchased, and shall be set aside [iA t~e state
3 treas~ryl as specified in Section 85.70 ref t~is eeael. The royalty
4 or money paid to the general land office shall be accompanied by the
5 sworn statement of the owner, manager, or other authorized agent
6 showing the gross amount of oil, gas, sulphur, mineral are, and
7 other minerals produced and saved since the last report, the amount
8 of oil, gas, sulphur, mineral are, and other minerals produced and
9 sold off the premises, and the market value of the oil, gas,
10 sulphur, mineral are, and other minerals, together with a copy of
11 all daily gauges, or vats, tanks, gas meter readings, pipeline
12 receipts, gas line receipts and other checks and memoranda of the
13 amounts produced and put into pipelines, tanks, vats, or pool and
14 gas lines, gas storage, other places of storage, and other means of
15 transportation.
16 (c) The commissioner of the general land office shall tender
17 to the board on or before the 10th day of each month a report of all
18 receipts that are collected from the lease or sale of oil, gas,
19 sulphur, mineral ore, and other minerals and that are deposited
20 [t~rAea iAte t~e state treas~ry,] as provided by Section 85.70
21 during [ef t~is eeae, efl the preceding month.
23 read as follows:
24 Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this
25 subchapter shall be made to the commissioner of the general land
26 office at Austin, who shall transmit to the board [eelllfltreller] all
27 royalties, lease fees, rentals for delay in drilling or mining, and
82R32127 JJT-D 177

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S.B. No. 1811

1 all othe:r payments, including all filing assignments and
2 relinquishment fees, to be deposited fiR tl:le state treasllor~,.] as
3 provided by Section 85.70 [ef tl:lis seele].
5 read as follows:
6 Sec. 85.70. CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;
7 SPECIAL FUNDS; INVESTMENT. (al Except as provided by Subsection
8 {cl [ef this sestieR], all money received under and by virtue of
9 this subchapter shall be deposited in [tae state treasllory te tl:le

10 eraelit sfl a special fund managed by the board to be known as The
11 Texas A&M University System Special Mineral Investment Fund. Money.
12 in the fund is considered to be institutional funds, as defined by.
13 Section 51.009, of the system and its component institutions. The
14 [Witk tke appreval sf tRB esmptrel1er, efte saare af re~eRt6 sf ~he·
15 Texas A&M URiversity System may appeiFlt eRe 91' mere e9li\fRereial
16 BaRlts, a.e£lssitery tryst esmpanies, af etksl eatities ~e serve ae,
17 8YsteeiaR at B~st8QiaRB af tRB S~esial Miaeral IavestmeRt F\iRe'er
18 see\il::Iities '.Ji'tA. 3\:1tl:t9rity t8 hele. tke meFley realiBeti frem t:A:e6(~
19 seSHlities p€RaiR9 8a~letieR sf aft iAvestmeat traRsastiea if tA(~
20 H\Bfley Hale is reiHl/estes ,.'itHiA SHe £H:lsiHeSS Bay af reseif)t in

21 ia'a'es1:m8flts EleteIlRiHeEl b~r tRe Bears sf re§8atSa HeRey fle1:-
22 reiRvestea. '.,itl:liR eRe S"tlSiReSS aa~! ef reeeipt sHalllae aefl8sitee. in

23 tAe 8~ate treaS~IY Ret later tkaR the fiftH day altaI tae aate 91;
24 reeaiflt. IR tae jlloElqmeRt af tae saarel, tl:lis] special fund may bl!
25 invested so as to produce faa] income which may be expended undeJ:
26 the direction of the board for the general use of any component 01:
27 The Texas A&M University System, including erecting permanen";
82R32127 JJT-D 178

J. !
S. B. No. 1811
1 improvements and in payment of expenses incurred in connection with
2 the administration of this subchapter. The unexpended income

3 likewise may be invested as [aereiR] provided by this section.
4 (b) The income from the investment of the special mineral
5 investment fund created by [I:IReer] Subsection (a) [sf tHis seetisR]
6 shall be deposited in [ts tae areeit sf] a fund managed by the board
7 to be known as The Texas A&M University System Special Mineral
8 Income Fund, and is considered to be institutional funds, as
9 defined by Section 51.009, of the system and its component
·10 institutions [SHall lie aflprapriatee lIy tae leljislatl:lre eusllisively
11 fer t1:18 HRiv8rsity sye1:3em fer tAB fHa1peses asreiR prs\'iaea].
12 (c) The board shall lease for oil, gas, sulphur, or other
13 mineral development, as prescribed by this subchapter, all or part
14 of the land under the exclusive control of the board owned by the
15 State of Texas and acquired for the use of Texas A&M
16 University--Kingsville and its divisions. Any money received by
17 the board concerning such land under this subchapter shall be
18 deposited in [tae state treasl:lry t9 tae areeil; af] a special fund
19 managed by the board to be known as the Texas A&M
20 university--Kingsville special mineral fund. Money in the fund is
21 considered to be institutional funds, as defined by Section 51.009,
22 of the university and is[.,.] to be used exclusively for the
23 university ['l'euas A&M YRiversity KiRljs·;ille] and its branches and
24 divisions. [HaRey may RSt lie eupeReee fram taia fl:lRe eueept as
25 al:lta9riaea lIy tae ljeReral apprspriatiaRs aet.]
26 (d) All deposits in and investments of the fund under this
27 section shall be made in accordance with Section 51.0031.
82R32127 JJT-D 179

S.B. No. 1811
1 (e) Section 34.017, Natural Resources Code, does not apply

2 to funds created by this section.
5 (b) Except as provided in Subsection (c) of this section,
6 any money received by virtue of this section and the income from the
7 investment of such money shall be deposited in [tAe State ~£ea8"£Y
8 ta tAB 8uiiit af] a special fund managed by the board to be known as

9 the Texas State University System special mineral fund. Money in
10 the fund is considered to be institutional funds, as defined by
11 Section 51.009, of the system and its component institutions anc
12 is[T] to be used exclusively for those entities. All deposits in and.
13 investments of the fund shall be made in accordance with SectioT.:
14 51.0031. Section 34.017, Natural Resources Code, does not apply tc~
15 the fund [-eRe \:lRi.... ersity system aHa tae lifliversities if) tRe system ..
16 HSl;lcver, AS meaey shall ever he supcRses fram taie f\:1flB ensept 30
17 a\;l~ft8rili5ea By t:ae GefleIal Atlpre~t:iatieR8 Aet].
18 SECTION 72.05. Subsection (b), Section 109.61, Educatiorl

19 Code, is <lmended to read as follows:
20 (b) Any money received by virtue of this section shall bE!
21 deposited in [tlie state treas\:uy t8 tlie ereiiit ef] a special funll
22 managed by the board to be known as the Texas Tech UniversitJ'
23 special mineral fund. Money in the fund is considered to bl~
24 institutional funds, as defined by Section 51.009, of thl!

25 university and is [T] to be used exclusively for the university and
26 its branches and divisions. All deposits in and investments of th.!
27 fund shall be made in accordance with Section 51.0031. Section
82R32127 JJT-D 180

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S.B. No. 1811
1 34.017, Natural Resources Code r does not apply to the fund.

2 [HOT:;18Ver I AS mORay shall ever Be e][j)eRaee frem tHis faRe elEBef)t as
3 aut1=leriBea sy tRe ~eAeral atltlletlriatisRs aet.]
4 SECTION 72.06. Subsections (al and (cl, Section 109.75,
6 (al If oil or other minerals are developed on any of the
7 lands leased by the board, the royalty as stipulated in the sale
8 shall be paid to the general land office in Austin on or before the
9 last day of each month for the preceding month during the life of
10 the rights purchased. The royalty payments shall be set aside [~
11 tRe state tEeas~Eyl as specified in Section 109.61 [af tRis eeael

12 and used as provided in that section.
13 (c l The commissioner of the general land office shall tender
14 to the board on or before the 10th day of each month a report of all
15 receipts that are collected from the lease or sale of oil, gas,
16 sulphur, or other minerals and that are deposited in [t~Eaea iatel
17 the special fund as provided by Section 109.61 [ia tRB state
18 tEBas~ryl during the preceding month.
19 SECTION 72.07. Subsection (bl, Section 109.78, Education
21 (bl Payment of all royalties, lease fees, rentals for delay
22 in drilling or mining, filing fees for assignments and
23 relinquishments, and all other payments shall be made to the
24 commissioner of the general land office at Austin. The
25 commissioner shall transmit all payments received to the board
26 [eem~tEelleEl for deposit to the credit of the Texas Tech
27 University special mineral fund as provided by Section 109.61.
82R32127 JJT-D 181

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S.B. No. 1811

1 SEC'rION 72.08. Section 85.72, Education Code, is repealed.
3 ARTICLE 73. FOUNDATION SCHOOL PROGRAM FINANCING i CERTAIN TAX
4 INCREMENT FUND REPORTING MATTERS
5 SECTION 73.01. (a) This section applies only to a school.
6 district that, before May 1, 2011, received from the commissioner

7 of education a notice of a reduction in state funding for thl!
8 2004-2005, 2005-2006, 2006-2007, 2007-2008, and 2008-2009 school

9 years based on the district's reporting related to deposits 0"
10 taxes into a tax increment fund under Chapter 311, Tax Code.
11 (b) Notwithstanding any other law, including Section
12 42.302(b) (2), Education Code, the commissioner of education shall
13 reduce by one-half the amounts of the reduction of entitlement
14 amounts computed for purposes of adjusting entitlement amounts tJ

15 account for taxes deposited into a·tax increment fund for any of the
16 schoo 1 ye ar s descr ibed by Subsect ion (a) of this sect ion.
18 ARTICLE 74. CRIMINAL BACKGROUND CHECKS FOR CERTAIN INTERSCHOLASTIC
19 SPORTS OFFICIALS
20 SECTION 74.01. Subchapter D, Chapter 33, Education Code, is
21 amended by adding section 33.085 to read as follows:
22 Sec. 33.085. CRIMINAL BACKGROUND CHECKS FOR SPOR~~
23 OFFICIALS; COST RECOVERY. (a) In this section, "sports official"

24 means a person who officiates, judges, or otherwise enforce·s
25 contest rules in an official capacity for athletic competition.
26 The term includes a referee, umpire, linesman, side judge, and back
27 jUdge.
82R32127 JJT-D 182

•
S.B. No. 1811

1 (b) The University Interscholastic League by rule may
2 require a person to have a criminal backqround check conducted by
3 the league as a precondition of acting as a sports official for
4 inter scho1ast ic athlet ic compet i t ion.
5 (c) The University Interscholastic League may refuse to
6 allow a person to act as a sports official for interscholastic
7 athletic competition if a criminal background check conducted under
8 league rules reveals a conviction of:
9 (1) an offense involving moral turpitude;
10 (2) an offense involving a form of sexual or physical
11 abuse of a minor or student or other illegal conduct in which the
12 victim is a minor or student;
13 (3) a felony offense involving the possession,
14 transfer, sale, or distr ibution of or conspiracy to possess,
15 transfer, sell, or distribute a controlled substance, as defined by
16 Chapter 481; Health and Safety Code, or by 21 U.S.C. Section 801 et
17 seq.;
18 (4) an offense involving the illegal transfer,
19 appropriation, or use of school district funds or other district
20 property; or
21 (5) an offense involving an attempt by fraudulent or
22 unauthorized means to obtain or alter registration to serve as a
23 sports official for interscholastic athletic competition.
24 (d) An interscholastic athletic league by rule may
25 establish a cost recovery program to offset any costs the league
26 incurs as a result of the implementation of this section.
27 liEns if [[ [ (datES]]] 9
82R32127 JJT-D 183

•
1 ARTICLE 75. FISCAL MATTERS RELATING TO PUBLIC SCHOOL FINANCE
2 SECTION 75.01. Effective September 1, 2011, Section
3 12.106, Education 'Code, is amended by amending Subsection (a)
4 and adding Subsection (a-3) to read as follows:
5 (a) A charter holder is entitled to receive for the open-
6 enrollment charter school funding under Chapter 42 equal to the
7 greater of:
8 (1) the percentage specified by Section 42.2516(i)
9 mUltiplied...EY the amount of funding per student in weighted
10 average daily attendance, excluding enrichment funding under
11 Sections 42.302(a-1) (2) and (3), as they existed on January 1,
12 2009, that would have been received for the school during the
13 2009-2010 school year under Chapter 42 as it existed on January
14 1, 2009, and an additional amount of the percentage specified by
15 Section 42.2516(i) multiplied by $120 for each student in
16 weighted average daily attendance; or
17 (2) the amount of funding per student in weighted
19 Section 42.302(a), to which the charter holder would be entitled
20 for the school under Chapter 42 if the school were a school
21 district without a tier one local share for purposes of Section
22 42.253 and without any local revenue for purposes of Section
23 42.2516.
24 (a-3) In determining funding for an open-enrollment
25 charter school under Subsection (a), the commissioner shall
26 apply the regular program adjustment factor provided under
27 Section 42.101 to calculate the regular program allotment to
28 which a charter school is entitled.
29 SECTION 75.02. Effective September 1, 2017, subsection
30 (a) , Section 12.106, Education Code, is amended to read as
31 follows:
11.148.50 CAE
1 (a) A charter holder is entitled to receive for the open-
2 enrollment charter school funding under Chapter 42 equal to [~
3 §£eate£ ef:
4 [(1) the ameliflt ef fliREiifl§ 13eF BtliEieflt ifl l.'ei§hteEi
5 avera§c aaily at:teflaaRce, eJfelliaiA~ CAFicfiffiCAt fl:1Adifl~ \:tRaCE
6 6eetieRB 42.392 (e 1) (2) aREi (3), as they eniBteEi eR JaflliaFY 1,
7 2999, that ue\;lld have eeeR Fceeived feE' tfte sehoe1 eh:lFifl§ tho
8 2009 2019 sclleel year aRea!! ChaptcE' 42 as it cHisteei eA JaA\:lary
9 1, 2999, aREi afl aEiEiitieflal ameliflt ef $129 feF eaeh stliEieRt iR
10 llei§htea aveFa§e Eiai1y atteflaanee/ e£
11 H-2+1 the amount of funding per student in weighted
13 Section 42.302(a), to which the charter holder would be entitled
14 for the school under Chapter 42 if the school were a school
15 district without a tier one local share for purposes of Section
16 42.253 [aRa ,lithelit aRy leeal Fe-JeRlie feE 13liF13esea ef SeetieR
17 42.2516].
19 .21.402, Education Code, is amended by amending Subsections (a),
20 (b), (c), and (c-l) and adding Subsection (i) to read as
21 follows:
22 (a) Except as provided by Subsection (d) [, (e), 1 or (f), a
23 school district must pay each classroom teacher, full-time
24 librarian, full-time counselor certified under Subchapter B, or
25 full-time school nurse not less than the minimum monthly salary,
26 based on the employee's level of experience in addition to other
27 factors, as determined by commissioner rule, determined by the
28 following formula:
29 MS = SF x FS
30 where:
31 "MS" is the minimum monthly salary;

11.148.50 CAE
•
1 ·SF" is the applicable salary factor specified by
2 Subsection (c); and
3 "FS· is the amount, as determined by the commissioner under
4 Subsection (b), of the basic allotment as provided by Section
5 42.101 (a) or (b) for a school district with a maintenance and
6 operations tax rate at least equal to the state maximum
7 compressed tax rate, as defined by Section 42.101 (a) [state and
8 leeal .f\:lflS.8 ~er \:oreigftEea at'l;1€leat, iael1:ltiiR§' £tJ:ftEle flZ"Bviaea \:1ftaer.
9 See~ieB 4J .. 2516, B:'t;,ailaele te a disEl?iet eligiBle te :reeeive
10 state asa:lstoaaee \:Utaer Seetieft iii. aQtI t",ith a maiftEeftaftSe afta
11 oflsratiea8 ~aJE Ea~e J:3sr $199 Bf tauaale ·,':811;10 sEfl:Ial te tae
12 !lfeatlct at" the state eefftfjrsssien flCFeeatage, as EicEeFlftiaca ttflaeF
13 SeeHen 4%!.2516, HllilHIlliea By S1.S9. elEeeIlt that I:he <HlIelil'll: ef
14 state afte. leeal fWl9S fleE \.teigfie.ca SEttdcfte aace fieE iaelttele efte
15 amouaE attristlEaBle te the ifle~eage ift the gtlaranteea level maEle
16 By Ch~te~ 1187, Acts af Efte 77th Legislatttfe, Regular Sessieft,
17 il-GGl- 1•
18 (b) Not later than June 1 of each year, the commissioner
19 shall determine the basic allotment and resulting monthly
20 salaries to be paid by school districts as provided by
21 Subsection (a) [<HlIelinl: ef el:al:e aI'la leeal flil'ldfl Ile£ ,.tei§'fil:ea
22 SEtlaeat availaBle, t6F ~~F~eees af S~seetieft (a), te a aistFice
23 aesefiaea :e~J' tHat st::tl3seee:iea feE the fel1e·.... ift~ seBeel year].
11.148.50 CAE
•
'Uk trl:"" 71 i1D11 [Icn-",wr.'.

3 (c) The salary factors per step are as follows:
4 Years Elqlerian! '0 1 2 3 4
5 salary Fl<:tcr .5<164 hQ;ll;] .5582 f,Qilll .$11 (.WI) .!Bl6 (~] .~ hQP.ll
6 Years Elqlerian! 5 6 7 8 9
7 salary Fl<:tcr .6312 f.:1'JIRl .fBI) [...14141 .6l9J ~J .i!!!} [..:l!l5) .12l4 (.lml]
8 Years Elqlerian! 10 11 12 l3 14
9 salary Fl<:tcr .74aI f,ll44l.] .7'!fI2 !.&ll .TIfB f.,&IH.) .iff!! ~J .lmi ~)
10 Years Elqlerian! 15 16 17 18 19
11 salary Fl<:tcr .8232 ~l .8372 ~l .lBl2 ~ .a;a; [.,lmlJ .8744 ~]
12 Years ElqleriEn:e ;n an CM!I
13 salary Fl<:tcr .EHi4 fM'QI)
14 (c-1) Notwithstanding Subsections [Sli9seetieal (a) and

15 (b)[, fe£ tae dQQ9 dQIQ aaa dQIQ dQll seaeel yea£sl, each school
16 distr ict shall pay a monthly salary to [iae£ ease tlle RlBatllly sala£y
17 *1 each classroom teacher, full-t ime speech pathologist,
18 full-time librarian, full-time counselor certified under
19 Subchapter B, and full-time school nurse that is at least equal to
20 the following monthly salary or the monthly salary determined by
21 the commissioner under Subsections (a) and (b), whichever is [&y
22 ~l greater [*1:
23 Years of Monthly
24 Experience Salary
25 0 2,732
26 1 2,791
27 2 2,849 .
82R32404 eM/X!C1\-D
•
3
4
8
9
10
11
12
13
14
15
16
17
18
19 [ (l)
20 [ (~) tee mauilWt:lR\ \lRifSIiQ alR9\:lRt taat, '.IReA G9JRBiRea "itA aRy
21 resl:l1tiR:J iasreas8s iR tAe ameYRt 8f 8E1RtxilH:itieas mass sy taB
22 eistriet fer seeial seeliIity eev8EaCj8 fer tAB sfJ8eifiea ell\flle~'ee8
23 at By the aistliet SR seHalf af the speGifieti 8lftfJleyees l:lRaeI

24 SeetieR QdS.4Qi, bBverameat Csse, may se pr9videa ~8iRCj &a am9\lRt
27 ;lQQ9 ;lQIQ 88R991 year .l
82R32404 CAE/KKt< f}
1 (i) Not later than January 1, 2013, the commissioner shall
2 submit to the governor, the lieutenant governor, the speaker of
3 the house of representatives, and the presiding officer of each
4 legislative standing committee with primary jurisdiction over
5 primary and secondary education a written report that evaluates
6 and provides recommendations regarding the salary schedUle.
7 This subsection expires September I, 2013.
9 21. 402, Education Code, is amended by amending Subsection (a)
10 and adding Subsection (e-l) to read as follows:
11 (a) Except as provided by Subsection (d), (e-l) £-tetJ, or
12 (f), a school district must pay each classroom teacher, full-
13 time librarian, full-time counselor certified under Subchapter
14 B, or full-time school nurse not less than the minimum monthly
15 salary, based on the employee's level of experience in addition
16 to other factors, as determined by commissioner rule, determined
17 by the following formula:
18 MS = SF x FS
19 where:
20 "MS" is the minimum monthly salary;
21 "SF" is the applicable salary factor specified by
22 Subsection (c); and
23 "FS" is the amount, as determined by the commissioner under
24 Subsection (b), of the basic allotment as provided by Section
25 42.101 (a) or (b) for a school district with a maintenance and
26 operation tax rate at least equal to the state maximum
27 compressed tax rate, as defined by Section 42.101 (a) [state afle
28 1eeal tUFIes peE \Iei~htee stueeflt, ifle1ueia~ tUFIes pfevieee uaeeE
29 Seetiefl 42.2516, a','ai1ae1e te a eistEiet e1i~ie1e te Eeeeive
30 state assistance \:1Reer Seetiefl 42 .. 392 -.,ith a maiAtenanee aHa
31 ol3CratieAO tau Fate fl6£ $199 at tanaele r.:al\:1e c~l:1al to tAo

4 11.148.50 CAE
15"'1
!
1 ~£eaHet af tRe state ee~£es8ieA ~eFeentagei as aetcFmiRca MAser
2 Seetiell 42.2516, ml:lltifllieel By $1. §Q, eueeflt that the amel:lllt ef
3 state alla l.eeal fl:lllas fle!' liei§hteel stl:leleflt elees flet iflell:lele the
4 amel:lflt attziBl:ltaBle Ee Efte ifle!'ease ifl Ehe §l:IaraflEeeel level maele
5 By GftaflEe!' 1187, AeEs ef Efte 77Eft Le§islaEI:IE'e, Re§'1:I1ar Sessiefl
6 2-OOl-1 •
7 (e-1) If the minimum monthly salary determined under
8 Subsection (a) for a particular level of experience is less than
9 the minimum monthly salary for that level of experience in the
10 preceding year, the minimum monthly salary is the minimum
11 monthly salary for the preceding year.
12 SECTION 75.05. Subsection (a), Section 41.002, Education
14 (a) Jl. school district may not have a wealth per student
15 that exceeds:
16 (1) the wealth per student that generates the amount
17 of maintenance and operations tax revenue per weighted student
18 available to a district with maintenance and operations tax
19 revenue per cent of tax effort equal to the maximum amount
20 provided per cent under Section 42.101(a) or (b) [42.1011, for
21 the district's maintenance and operations tax effort equal to or
22 less than the rate equal to the product of the state compression
23 percentage, as determined under Section 42.2516, multiplied by
24 the maintenance and operations tax rate adopted by the district
25 for the 2005 tax year;
26 (2) the wealth per student that generates the amount
27 of maintenance and operations tax revenue per weighted student
28 available to the Austin Independent School District, as
29 determined by the commissioner in cooperation with the
30 Legislative BUdget Board, for the first six cents by which the
31 district's maintenance and operations tax rate exceeds the rate

11.148.50 CAE
•
1 equal to the product of' the state compression percentage, as
2 determined under Section 42.2516, mUltiplied by the maintenance
3 and operations tax rate adopted by the district for the 2005 tax
4 year, subject to Section 41.093(b-1); or
5 (3) $319,500, for the district's maintenance and
6 operations tax effort that exceeds the first six cents by which
7 the district's maintenance and operations tax effort exceeds the
8 rate equal to the product of the state compression percentage,
9 as determined under Section 42.2516, multiplied by the
10 maintenance and operations tax rate adopted by the district for
11 the 2005 tax year.
12 SECTION 75.06. The heading to Section 42.101, Education
14 Sec. 42.101. BASIC AND REGULAR PROGRAM ALLOTMENTS
15 [ALLO'l'!!EN'l') •
17 by amending Subsections (a) and (b) and adding Subsections (c)
18 and (c-1) to read as follows:
19 (a) The basic [FeE eaeR 9t~aent
20 attendanee I net inehldinEj the time etl:ldents s~end eaeh day in
21 speeial edl:leatien pFeEjFams in an instFl:Ietienal aFFanEjement etheF
22 theft maiHotFeam e£ eaFeeE afta teehnele~y ea~eatiefl ~£e§£ams, feE
23 "hich aFl aaai1!:ieFlal allet:ffteflt is maae \iFlaeF Sl:lsefiapte:E C, a
24 distFiet is entitled te an) allotment is an amount equal to the
25 lesser of $4,765 or the amount that results from the following
26 formula:
27 A = $4,765 X (DCR/MCR)
28 where:
29 "A" is the resulting amount for [alletment te ',Ihieh] a
30 district [is entitled];
31 "DCR" is the district I s compressed tax rate, which is the
...6- 11.148.50 CAE
I'll
,
1 product of the state compression percentage, as determined under
2 Section 42.2516, multiplied by the maintenance and operations
3 tax rate adopted by the district for the 2005 tax year; and
4 "MCR" is the state maximum compressed tax rate, which is
5 the product of the state compression percentage, as determined
6 under Section 42.2516, multiplied by $1.50.
7 (b) J~ greater amount for any school year for the basic
8 allotment under Subsection la) may be provided by appropriation.
9 Ic) 1\ school district is entitled to a regular program
10 allotment equal to the amount that results from the following
11 formula:
14 "RPA" is the regular program allotment to which the.
15 district is entitled;
16 "ADA" is the number of students in average daily attendance
17 in a district, not including the time students spend each day in
18 special education programs in an instructional arrangement other
19 than mainstream or career and technology education programs, for
20 which an additional allotment is made under Subchapter C;
21 "M" is the district I s adjusted basic allotment, as
22 determined under Section 42.102 and, if applicable, as further
23 adjusted under Section 42.103; and
24 "RPAF" is the regular program adjustment factor, which is
25 an amount established by appropriation.
26 Ic-1) Notwithstanding Subsection Ic), the regular program
27 adjustment factor I "RPAF") is 0.9239 for the 2011-2012 school
28 year and 0.98 for the 2012-2013 school year. This subsection
29 expires September 1, 2013.
11.148.50 CAE
,
1 Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
2 Sections 42.101, 42.102, and 42.103, a school district that has
3 fewer than 130 students in average daily attendance shall be
4 provided a regular program taR aaj~stea easie) allotment on the
5 basis of 130 students in average daily attendance if it offers a
6 kindergarten through grade 12 program and has preceding or
7 current year's average daily attendance of at least 90 students
8 or is 30 miles or more by bus route from the nearest high school
9 district. A district offering a kindergarten through grade 8
10 program whose preceding or current year's average daily
11 attendance was at least 50 students or which is 30 miles or more
12 by bus route from the nearest high school district shall be
13 provided a regular program taR aajHstea easie] allotment on the
14 basis of 75 students in average daily attendance. An average
15 daily attendance of 60 students shall be the basis of providing
16 the regular program [aaj\:lstea easie) allotment if a district
17 offers a kindergarten through grade 6 program and has preceding
18 or current year's average daily attendance of at least 40
19 students or is 30 miles or more by bus route from the nearest
20 high school district.
21 SECTION 75.09. Subsection (a), Section 42.251, Education
23 (a) The sum of the regular program [easie) allotment under
24 Subchapter B and the special allotments under Subchapter C,
25 computed in accordance with this chapter, constitute the tier
26 one allotments. The sum of the tier one allotments and the
27 guaranteed yield allotments under Subchapter F, computed in
28 accordance with this chapter, constitute the total cost of the
29 Foundation School Program.
30 SECTION 75.10. Subchapter E, Chapter 42, Education Code,

.8- 11. 148.50 CAE
113
!
1 Sec. ~,2. 2514. ADDITIONAL STATE AID FOR TAX INCREMENT
2 FINANCING PAYMENTS. For each school year, a school district,
3 including a school district that is otherwise ineligible for
4 state aid under this chapter, is entitled to state aid in an
5 amount equal to the amount the district ,is required to pay into
6 the tax increment fund for a reinvestment zone under Section
7 311.013(n), Tax Code.
9 42.2516, Education Code, is amended by amending Subsections (a),
10 (b), (d), and (f-2) and adding Subsection (i) to read as
11 follows:
12 (a) In this title [seetien] , "state compression
13 percentage" means the percentage [, as eetol'mifloa by tHo
14 eemmissiefll*7] of a school district I s adopted maintenance and
15 operations tax rate for the 2005 tax year that serves as the
16 basis for state funding [fel' tau l'ato l'ee\:lotiefl \:Ifleel' tHis
17 °
s 0 t i en]. .=I.=f_----'=t~h~e'____'s::.;t::.:a::.t=_e=____.:::c.:::o.:::m""pc::r..::o:.::s:.::s:.::i:.::o:..:n.:.____Jpo:ce:::.=.r.:::c.:::e:..:n..::t.:::a",9:.::o,----,i:;.:s,,----,n:.=o.:::t
18 establishod by appropriation for a school year, the ['l'fie]
19 commission,er shall determine the state compression percentage
20 for each school year based on the percentage by which a district
21 is able to reduce the district's maintenance and operations tax
22 rate for that year, as compared to the district's adopted
23 maintenance and operations tax rate for the 2005 tax year, as a
24 result of state funds appropriated for distributio'n under this
25 section for that year from the property tax relief fund
26 established under Section 403.109, Government Code, or from
27 another funding source available for school district property
28 tax relief.
29 (b) Notwithstanding any other provision of this title, a
30 school district that imposes a maintenance and operations tax at
31 a rate at least equal to the product of the state compression

~ 11.148.50 CAE
i •
1 percentage multiplied by the maintenance and operations tax rate
2 adopted by the district for the 2005 tax year is entitled to at
3 least the amount of state revenue necessary to provide the
4 district with the sum of:
5 (1) the percentage specified by Subsection (i) of the
6 amount, as calculated under Subsection (e), [the ameHRt) of
7 state and local revenue per student in weighted average daily
8 attendance for maintenance and operations that the district
9 would have received during the 2009-2010 school year under
10 Chapter 41 and this chapter, as those chapters existed on
11 January 1, 2009, at a maintenance and operations tax rate equal
12 to the product of the state compression percentage for that year
13 multiplied by the maintenance and operations tax rate adopted by
14 the district for the 2005 tax year;
15 (2) the percentage specified by Subsection (i) of an
16 amount equal to the product of $120 multiplied by the number of
17 students in weighted average daily attendance in the district;
18 and
19 (3) [aR ameHRt eEJHal te the ameHRt the Eiistfiet is
20 FCEJuirca toe flay lAte tAe tan ine£CfftCAt ft:lA6 foE' a EciRvestmcnt
21 20flC uflder SootieR 311. G13 (ft), ~an Cede, 1ft tAo
22 year! aRa
23 H-4+l any amount to which the district is entitled
24 under Section 42.106.
25 (d) In determining the amount to which a district is
26 entitled under Subsection (b) (1), the commissioner shall:
27 (1) include the percentage specified by Subsection
28 (i) of any amounts received by the district during the 2008-2009
29 school year under Rider 86, page III-23, Chapter 1428 (H.B. 1),
30 Acts of the 80th Legislature, Regular Session, 2007 (the General
31 Appropriations Act); and

11.148.50 CAE
/19
1 (2) for a school district that paid tuition under
2 Section 25.039 during the 2008-2009 school year, reduce the
3 amount to which the district is entitled by the amount of
4 tuition paid during that school year.
5 (f-2) The rules adopted by the commissioner under
6 Subsection (f-l) must:
7 \1) require the commissioner to determine, as if this
Ii section did not exist, the effect under Chapter 41 and this
9 chapter of a school district's action described by Subsection
10 (f-1) (1), (2), (3), or (4) on the total state revenue to which
11 the district would be entitled or the cost to the district of
12 purchasing sufficient attendance credits to reduce the
13 district's wealth per student to the equalized wealth level; and
14 (2) require an increase or reduction in the amount of
15 state revenue to which a school district is entitled under
16 Subsection (b) (1) [-th-l-] that is substantially equivalent to any
17 change in total state revenue or the cost of purchasing
18 attendance credits that would apply to the district if this
19 section did not exist.
20 (i) The percentage to be applied for purposes of
21 Subsections (b) (1) and (2) and Subsection (d) (1) is 100.00
22 percent for the 2011-2012 school year and 92.35 percent for the
23 2012-2013 school year. For -the 2013-2014 school year and ,each
24 subsequent school year, the legislature by appropriation shall
25 establish the percentage reduction to be applied.
26 SECTION 75.12. Effective September 1, 2017, the heading to
27 Section 42.2516, Education Code, is amended to read as follows:
28 Sec. 42.2516. STATE COMPRESSION PERCENTAGE [AGDI'FIO!h'\L
29 S'FA'FE AID FOR 'l':m REDUC'FION].
30 SECTION 75.13. Effective September 1, 2017, Subsection
31 (a), Section 42.2516, Education Code, is amended to read as
II 11.148.50 CAE
.- .
1 follows:
2 (a) In this title [seetiea] , "state compression
3 percentage" means the percentage [7,--ia~ss-~eI~e~t~e~FE'lmll'J:i,;'

aA'eeeel--,ll9~~.,.·--tt;!'Hlee
4 eemmiseieaeF, 1 of a school district' s adopted maintenance and
5 operations tax rate for the 2005 tax year that serves as the
6 basis· for state funding [feF tan Fate Feeh:letiea \:IaeleF tHis
7 see t i ea]. .:::I.:::f_~t::.h:..::e::..--..:s::.:t",a"-t,,-e,,--_.:::c.:::o.:::m,,,p.:::r..::e::::s:.::s:..::i:..oo::.n,--------,p::.:e",r=-c::.e::.n=t.::a-'lg..::e,-------=i:..:s::..-----=n;:.o::.t::.
8 established by appropriation for a school year, the [~l
9 commissioner shall determine the state compression percentage
10 for each school year based on the percentage by which a district
11 is able to reduce the district's maintenance and operations tax
12 rate for that year, as compared to the district's adopted
13 maintenance and operations tax rate for the 2005 tax year, as a
14 result of state funds appropriated for [elistFil9\:1tiea \:IaeleF tHis
15 seetiea feF] that year from the property tax relief fund
16 established under Section 403.109, Government Code, or from
17 another funding source available for school district property
18 tax relief.
19 SECTION '75.14. Effective September 1, 2011, Subsection
20 (a), Section 42.25161, Education Code, is amended to read as
21 follows:
22 (a) The commissioner shall provide South Texas Independent
23 School District with the amount of state aid necessary to ensure
24 that the district receives an amount of state and local revenue
25 per student in weighted average daily attendance that is at
26 least the percentage specified by Section 42.2516 (i) of $120
27 greater than the amount the district would have received per
28 student in weighted average daily attendance during the 2009-
29 2010 school year under this chapter, as it existed on January 1,
30 2009, at a maintenance and operations tax rate equal to the
31 product of the state compression percentage multiplied by the

~ 11.148.50 CAE
/"!r
1 maintenance and operations tax rate adopted by the district for
2 the 2005 tax year, provided that the district imposes a
3 maintenance and operations tax at that rate.
4 SECTION 75.15. Subchapter E, Chapter 42, Education Code,
6 Sec. 42.2525. ADJUSTMENTS FOR CERTAIN DEPARTMENT OF
7 DEFENSE DISTRICTS. The commissioner is granted the authority to
8 ensure that Department of Defense school districts do not
9 receive more than an eight percent reduction should the federal
10 government reduce appropriations to those schools.
11 SECTION 75.16. Effective September 1, 2011, Subsections
12 (h) and (i), Section 42.253, Education Code, are amended to read
13 as follows:
14 (h) If the amount appropriated for the Foundation School
15 Program for the second year of a state fiscal biennium is less
16 than the amount to which school districts are entitled for that
17 year, the commissioner shall certify the amount of the
18 difference to the Legislative Budget Board not later than
19 January 1 'of the second year of the state fiscal biennium. The
20 Legislative Budget Board shall propose to the legislature that
21 the certified amount be transferred to the foundation school
22 fund from the economic stabilization fund and appropriated for
23 the purpose of increases in allocations under this subsection.
24 If the legislature fails during the regular session to enact the
25 proposed transfer and appropriation and there are not funds
26 available under Subsection (j), the commissioner shall adj ust
27 [l:eeh:lee) the total amounts due to each school district under
28 this chapter and the total amounts necessary for each school
29 district to comply with the requirements of Chapter 41 [ame\!Ht
30 sf state f~Ade alleeated to eaeh dist£iet) by an amount
31 determined by applying to each district, including a district

11.148.50 CAE
•
1 receiving funds under Section 42.2516, the same percentage
2 adjustment so that the total amount of the adjustment to all
3 districts [a lfteEhea lHiae:r '.ffiieR ERe ~fllieaEiefl ef ERe same
4 R\:lfftBer af eents af iasFease ift ~aJE £a~e if! all tiisE!'iees af)Iiliea
5 Ee tee taJEal31e valtle af I'F8I'Srt:y af sasft elist:riet, as e1eEel"miftea
6 lHiae:r S~eRaflEer H, CRafleer 493, Geve:rflllleflE Ceae,] results in an
7 amount [a eeeal levy] equal to the total adjustment necessary.
8 A school district is not entitled to reimbursement in a
9 subseguent fiscal year of the amount resulting from the
10 adjustment authorized by this subsection [reEl'tieeiefl. 'Fee
11 feller.JiB§ fiscal yea]!', a EliSEf'iee' s entielefftent \ifteeF Eliis
12 sestieft is iaeE"easea By aft ameuat efl\ial e8 the refitle£iea made
13 uftaer Eais suBseetieft].
14 (i I Not later than March 1 each year, the commissioner
15 shall determine the actual amount of state funds to which each
16 school district is entitled under the allocation formulas in
17 this chapter for the current school year, as adjusted in
18 accordance with Subsection (hI, if applicable, and shall compare
19 that amount with the amount of the warrants issued to each
20 district for that year. If the amount of the warrants differs
21 from the amount to which a district is entitled because of
22 variations in the district's tax rate, student enrollment, or
23 taxable value of property, the commissioner shall adjust the
24 district's entitlement for the next fiscal year accordingly.
25 SECTION 75.17. Effective September I, 2017, Subsection
26 (hI, Section 42.253, Education Code, is amended to read as
27 follows:
28 (hI If the amount appropriated for the Foundation School
29 Program for the second year of a state fiscal biennium is less
30 than the amount to which school districts are entitled for that
31 year, the commissioner shall certify the amount of the

11.148.50 CAE
1 difference to the Legislative Budget Board not later than
2 January 1 of the second year of the state fiscal biennium. The
3 LegislativB BUdget Board shall propose to the legislature that
4 the certified amount be transferred to the foundation school
5 fund from the economic stabilization fund and appropriated for
6 the purpose of increases in allocations under this subsection.
7 If the legislature fails during the regular session to enact the
8 proposed transfer and appropriation and there are not funds
9 available under Subsection (j), the commissioner shall adjust
10 [£eEil:lee I the total amounts due to each school district under
11 this chapter and the total amounts necessary for each school
12 district to comply with the requirements of Chapter 41 [ametiRto
13 ef etoatoe ftiRes alleeatoee toa eaeh eisto£iet] by an amount
14 determined by applying to each district the same percentage
15 adjustment so that the total amount of the adjustment to all
16 districts [a methae tlReeE Ilhieh tohe a~~lieatoieR af the same
17 RtimBeC ef ceRts af iAecease iR tall catoe iR all eistcietos a~~liee
18 to tHe tauable -·...aIMs af 13:E819Sl'ey af sash aistriet, as efetermiAcd
19 tlReeC BtiBeha~toec II, Cha~toeE HJ3, GeveCRmeRt Ceee,] results in an
20 amount [a tatal levy] equal to the total adjustment necessary.
21 A school district is not entitled to reimbursement in a
22 subsequent fiscal year of the amount resulting from the
23 adjustment authorized by this subsection [EedtietoiaR. The
24 felle~iift§ fiseal ycaf, a distfiet'a cfititlemcnt ~nde£ this
25 seetoiaR is iRe£easee By aR ametiRto eE!tlal toe tohe ceetietoieR made
26 tlRdec Hiis stieSeetoisR].
28 by amending Subsection (a) and adding Subsection (a-I) to read
29 as follows:
30 (a) If a school district has'received an overallocation of
31 state funds, the agency shall, by withholding from subsequent

11.148.50 CAE
,
1 allocations of state funds for the current or subsequent school
2 year or by requesting and obtaining a refund, recover from the
3 district an amount equal to the overallocation.
4 (a-1) Notwithstanding Subsection (a) , the agency may
5 recover an overallocation of state funds over a period not to
6 exceed the subsequent five school years if the commissioner
7 determines that the overallocation was the result of exceptional
8 circumstances reasonably caused by statutory changes to Chapter
9 41 or 46 or this chapter and related reporting requirements.
12 (b) For each year, the commissioner shall certify to each
13 school district or participating charter school the amount of[~
14 [+±+] additional funds to which the district or
15 school is entitled due to the increase made by H.B. No. 3343,
16 Acts of the 77th Legislature, Regular Session, 2001, to:
17 ill [+At] the equalized wealth level under Section
18 41.002; or
19 ill [-tBt ] the guaranteed level of state and local
20 funds per weighted student per cent of tax effort under Section
21 42.302[-r-er
22 [ (2) aEleli-eiefial state aiel 1::8 uhich: tlie tiiStFiet eF
23 sebeel is eRtitlea ~RaeE SeetieR 42.2§13].
25 by adding Subsection (g-l) to read as follows:
26 (g-l) If the rate calculated under Subsection
27 (c) (5) (A) (ii) (b) decreases after the publication of the notice
28 required by this section, the president is not required to
29 publish another notice or call another meeting to discuss and
30 adopt the budget and the proposed lower tax rate.
31 SECTION 75.21. Subsection (a), Section 26.05, Tax Code, is

11.148.50 CAE
2 (a) 'I'he governing body of each taKing unit, before the
3 later of September 30 or the 60th day after the date the
4 certified appraisal roll is received by the taKing unit, shall
5 adopt a tax rate for the current taK year and shall notify the
6 assessor for the unit of the rate adopted. The tax rate
7 consists of two components, each of which must be approved
8 separately. The components are:
9 (1) for a taxing unit other than a school district,
10 the rate that, if applied to the total taxable value, will
11 impose the total amount published under Section 26.04 (e) (3) (C),
12 less any amount of additional sales and use tax revenue that
13 will be used to pay debt service, or, for a school district, the
14 rate calculated [ptiBliSAea) under Section
15 44.004 (c) (5) (A) (ii) (b), Education Code; and
16 (2) the rate that, if applied to the total taxable
17 value, will· impose the amount of taxes needed to fund
18 maintenance and operation expenditures of the unit for the neKt
19 year.
20 SECTION 75.22. Effective September I, 2017 , Subsection
21 (i), Section 26.08, Tax Code, is amended to read as follows:
22 (i) For purposes of this section, the effective
23 maintenance and operations tax rate of a school district is the
24 tax rate that, applied to the current total value for the
25 district, would impose taxes in an amount that, when added to
26 state funds that would be distributed to the district under
27 Chapter 42, Education Code, for the school year beginning in the
28 current tax year using that tax rate, [iReltiaifllj SEaEe ftlftas
29 Ehat ',rill Be aisErietitea ES EAe aistrict iR tAat scheel year
30 tiRaOr SoetieR 42.2516, EatieatieR Geae,) would provide the same
31 amount of state funds distributed under Chapter 42, Education

11.148.50 CAE
•
1 Code, [iROhll:liR§ stato t\:lRee eistFis\:Itee \:IReeE SeotieR 42. 2§16 ,
2 Ee1:ioatieR Ceee,l and maintenance and operations taxes of the
3 district per student in weighted average daily attendance for
4 that school year that would have been available to the district
5 in the preceding year if the funding elements for Chapters· 41
6 and 42, Education Code, for the current year had been in effect
7 for the preceding year.
8 SECTION 75.23. Subsection (n), Section 311.013, Tax Code,
10 (n) This subsection applies only to a school district
11 whose taxable value computed under Section 403.302(d),
12 Government Code, is reduced in accordance with Subdivision (4)
13 of that subsection. In addition to the amount otherwise
14 required to be paid into the tax increment fund, the district
15 shall pay into the fund an amount equal to the amount by which
16 the amount of taxes the district would have been required to pay
17 into the fund in the current year if the district levied taxes
18 at the rate the district levied in 2005 exceeds the amount the
19 district is otherwise required to pay into the fund in the year
20 0 f the reduct i on,.:.._---=T:.:.h::i::s=-=a:=d:=d:=i:.:t"'i:.:o:.:.n::a::l=-=a""m"'o"'u:.:.n:.:t=-m=a.l.y---:n:.:.o::.t=----=e::.:xc:;c::.e::.e::.d=----=t::.:h=e
21 amount the school district receives in state aid for the current
22 tax year under Section 42.2514, Education Code. The school
23 district shall pay the additional amount after the district
24 receives the state aid to which the district is entitled for the
25 current tax year under Section 42.2514, Education Code.
26 SECTION 75.24. Effective September 1, 2011, the following
27 provisions of the Education Code are repealed:
28 (1) Subsections (c-2) , (c-3), and (e) , Section
29 21. 402;
30 (2) Section 42.008; and
31 (3) Subsections (a-1) and (a-2), Section 42.101.

11.148.50 CAE
•
1 SECTION 75.25. (a) Effective September 1, 2017, the
2 following provisions of the Education Code are repealed:
3 (1) Section 41.0041;
4 (2 ) Subsections (b) , (b-l) , (b-2) , (c) , (d) , (e) ,
5 (f) , (f-l) , (f-2), (f-3), and (i) , Section 42.2516;
6 (3 ) Section 42.25161;
7 (4 ) Subsection (c) , Section 42.2523;
8 (5 ) Subsection (g) , Section 42.2524;
9 ( 6) Subsection (c-1) , Section 42.253; and
10 (7 ) Section 42.261.
11 (b) E,ffective September 1, 2017, Subsections (i-I) and
12 (j) , Sectic,n 26.08, Tax Code, are repealed.
13 SECTION 75.26. (a) The speaker of the house of
14 representatives and the lieutenant governor shall establish a
15 joint legilllative interim committee to conduct a comprehensive
16 study of the public school finance system in this state.
17 (b) Not later than January 15, 2013, the committee shall
18 make recommendations to the 83rd Legislature regarding changes
19 to the public school finance system.
20 (c) The committee is dissolved September 1, 2013.
21 SECTION 75.27. It is the intent of the legislature,
22 between fincal year 2014 and fiscal year 2018, to continue to
23 reduce the amount of Additional State Aid For Tax Reduction
24 (ASATR) to which a school district is entitled under Section
25 42.2516, Education Code, and to increase the basic allotment to
26 which a school district is entitled under Section 42.101,
27 Education Code.
28 SECTION 75.28. Except as otherwise provided by this Act,
29 the changell in law made by this Act to Chapter 42, Education
30 Code, apply beginning with the 2011-2012 school year.
31 SECTION 75.29. The change in law made by Subsection (g-l),
11.148.50 CAE
•
1 Section 44.004, Education Code, as added by this Act, applies
2 beginning with adoption of a tax rate for the 2011 tax year.
5 ARTICLE 7'. MIXED BEVERAGE TAX REIMBURSEMENTS
6 Section 7~. 01. Effective September 1. 2013. Section
7 183.051(b). Tax Code. is amended to read as follows:
8 (b) The comptroller shall issue to each county described
9 in Subsection (a) a warrant drawn on the general revenue fund in
10 an amount appropriated by the legislature that may not be less
11 [gFea~e~l than 10.7143 percent of receipts from permittees
12 within the county during the quarter and shall issue to each
13 incorporated municipality described in Subsection (a) a warrant
14 drawn on that fund in an amount appropriated by the legislature
15 that may not be less [~Featepl than 10.7143 percent of receipts
16 from permittees within the incorporated municipality during the
17 quarter.
1 ARTICLE 17. EFFECTIVE DATE
2 SECTION 11.01. Except as otherwise provided by this Act,
3 this Act takes effect September 1, 2011.
11.139.298 SJ:z
H .148.:;0 CA;:l
• Senate Bill 1811
Conference Committee Report
Section-by-Section Analysis
SENATE VERSION HOUSE VERSION (IE) CONFERENCE

[ARTICLE I. REDUCTION OF EXPENDITURES AND Same as Senate version.
IMPOSITlON OF CHA.RGES GENE!VI.LLY added by the
substitute and deleted by FA I(I)]
No equivalent provision. ARTICLE 2. FISCAL MATTERS REGARDING ARTICLE 2. Same as House version.
REGULATION AND TAXATION OF INSURERS
No equivalent provision. SECTION _._. Section 221.006, Insurance Code, is SECTION 2.01. Same as House version.
amended by adding Subsection (c) as follows:
(c) An insurer is not entitled to a credit under Subsection (a)
for an examination or evaluation fee paid in calendar vear
2012 or 2013. This subsection expires January I. 2014.
[FAI,3rd]
(c) An insurer or health maintenance organization is not
entitled to a credit under Subsection (a) for an examination or
evaluation fee paid in calendar year 2012 or 2013. This
subsection expires January I. 2014. [FAI,3rd]
(c) A title insurance companv is not entitled to a credit under
Subsection (a) for an examination or evaluation fee paid in
calendar year 2012 or 2013. This subsection expires January
I. 2014. [FAI,3rd]
No equivalent provision. SECTION _ _ Section 401.151, Insurance Code, is SECTION 2.04. Same as House version.
amended by adding Subsection (f) as follows:
<D An insurer is not entitled to a credit under Subsection (e)
for an examination or evaluation fee paid in calendar year
I 11.148.310
.•
•.
Senate Bill 1811
..
2012 or 2013. This subsection expires January 1. 2014.

[FAI,3rd]
amended as follows:
Sec. 401.154. TAX CREDIT AUTHORIZED.li!) An insurer
is entitled to a credit on the amount of premium taxes to be
paid by the insurer for all examination fees paid under Section
401.153. The insurer may take the credit for the taxable year
during which the examination fees are paid and may take the
credit to the same extent the insurer may take a credit for
examination fees paid when a salaried department examiner
conducts the examination.
(b) An insurer is not entitled to a credit under Subsection (a)
for an examination fee paid in calendar year 2012 or 2013.
This subsection expires January 1. 2014. [FAI,3rd]
No equivalent provision. SECTION 2.01. Section 463.160, Insurance Code, is amended SECTION 2.06. Same as House version.
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 [iA tile 5QRle
Hl8RRer 8S 8 sreait is alle'.... eel HRder SeetisR 4Ql.l 31 (e»).
[SECTION 2.02. repealing Sections 221.006, 222.007,

223.009,401.1 5 I(e), and 401.154, Insurance Code, was added
by the substitute and deleted by FA 1,3rd]
No equivalent provision. SECTION 2.03. Saving provision relating to a tax credit for SECTION 2.07. Same as House version.
an examination or evaluation fee paid on or after January I,
2012. [FA I(2)]
2 11.148.310
Senate Bill 1811

No equivalent provision. ARTICLE 3. TEMPORARY ASSISTANCE FOR NEEDY Same as Senate version.
FAMILIES AND SUPPLEMENTAL NUTllJTION
ASSISTANCE PROGRAMS
No equivalent provision. ARTICLE 4. TAX RECORDS ARTICLE 5. Same as House version.
No equivalent provision. SECTION 4.01. Amends Section 2153.201, Occupations SECTION 5.01. Same as House version.
Code, by amending Subsection (b) and adding Subsection (c)
as follows:
(b) Makes a conforming change and removes the requirement
that an owner who purchases, receives, possesses, handles
exhibits, or displays coin-operated machines maintain a
complete and itemized record of each such machine until the
second anniversary of the date the owner ceases ownership of
the machine that is the subject of the record.
(c) Requires such a record to be available for inspection under
Subsection (b) for at least four years and as required by
Section 111.0041, Tax Code.
No equivalent provision. SECTION 4.02. Amends Section 111.0041, Tax Code, as SECTION 5.02. Same as House version.
follows:
Sec. 11 1.0041. RECORDS: BURDEN TO PRODUCE AND
SUBSTANTIATE CLAIMS. (a) Makes a conforming change
and specifies that., with regard to a provision requiring a
taxpayer who is required to keep records open to inspection by
certain entities for a four-year period, the four-year period is a
minimum requirement.
(b) Requires such a taxpayer to keep records open for
inspection under Subsection (a) for more than four years
throughout any period when:
(I) any tax. penalty. or interest may be assessed. collected, or
refunded by the comptroller: or
(2) an administrative hearing is pending before the
•
3 11.148.310
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Senate Bill ] 811

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.
Cc) Requires a taxpayer to 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 equivalent records. such as electronically
stored images of such documents. reflecting legal
relationships and taxes collected or paid.
Cd) 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.
~ This section prevails over any other conflicting provision
of this title. [FAI(3)]
No equivalent provision. SECTION 4.03. Section 112.052, Tax Code, is amended by SECTION 5.03. Same as House version.
adding Subsection (d) as follows:
Cd) 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
taxpaver's claim relating to the amount of the tax. penalty. or
interest that is to be assessed. collected. or refunded. as
required by Section I J 1.0041.
4 J 1.148.310
Senate Bill 1811
adding Subsection (f) as foHows:
(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, penallY, or
interest that is to be assessed, collected, or refunded. as
required by Section 111.0041.
No equivalent provision, SECTION 4.05. Section 151.025(b), Tax Code, is amended as SECTION 5.05. Same as House version.
follows:
(b) A record required by Subsection (a) [SftRis seetisR] shall
be kept for not less than four years from the date [EIay] that it
is made unless~
ill the comptroller authorizes in writing its destruction at an
earlier date~
(2) Section 111.0041 requires that the record be kept for a
longer period.
adding Subsection (h) as follows:
(h) Section "111.0041 applies to a person required to keep
records under this chapter.
adding Subsection (e) as follows:
(e) Section 111.0041 applies to a person required to keep
records under this chapter.
No equivalent provision. SECTION 4.08. Section 154.209(a), Tax Code, is amended as SECTION 5.08. Same as House version.
follows:
(a) Except as provided by Section 111.0041. each [Baeh]
permit holder shall keep records available for inspection and '.
5 11.148.310
Senate Bill 1811
•
copying by the comptroller and the attorney general for at

least four years.
No equivalent provision. SECTION 4.09. Section 155.1 IO(a). Tax Code, is amended as SECTION 5.09. Same as House version.
follows:
(a) Except as provided by Section 111.004lo each [J>aek]
permit holder shall keep records available for inspection and
copying by the comptroller and the attorney general for at
least four years.
adding Subsection (g) as follows:
(g) A person required to keep records under this section shall
also keep the records as required by Section 111.0041.
No equivalent provision. SECTION 4.1 lo Subchapter A, Chapter 162, Tax Code, is SECTION 5.11. Same as House version.
amended by adding Section 162.0125 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.
No equivalent provision. SECTION 4.12. This article takes effect immediately if this SECTION 5.12. Same as House version.
Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article lIl, Texas
Constitution. If this Act does not receive the vote necessary
for immediate effect, this article takes effect September I,
201 I.
ARTICLE lo FOUNDATION SCHOOL PROGRAM ARTICLE 7. CERTAIN FOUNDATION SCHOOL ARTICLE 1. Same as Senate version.
PAYMENTS PROGRAM PAYMENTS
SECTION 1.01. Amends Subsections (c), (d), and (f), Section SECTION 7.01 Sections 42.259(c), (d). and (f), Education SECTION loOlo Same as Senate version.
6 11.148.310
Senate Bill 1811
42.259, Education Code, as follows: Code, are amended as follows:

(c) Changes the payment period for the installment of the (c) Payments from the foundation school fund to each
foundation school funding totaling 15 percent of the yearly category 2 school district shall be made as follows:
entitlement of a category 2 school district from on or before (1) 22 percent of the yearly entitlement of the district shall be
the 25th day of August to after the 5th day of September and paid in an installment to be made on or before the 25th day of
not later than the 10th day of September of the calendar year September of a fiscal year;
following the calendar year of the 22 percent installment (2) 18 percent of the yearly entitlement of the district shall be
payment made to the district on or before the 25th day of paid in an installment to be made on or before the 25th day of
September of a fiscal year. October;
(d) Changes the payment period for the installment of the (3) 9.5 percent of the yearly entitlement of the district shall be
foundation school fund totaling 20 percent of the yearly . paid in an installment to be made on or before the 25th day of
entitlement of a category 3 school district from on or before November;
the 25th day of August to after the 5th day of September and (4) 7.5 percent of the yearly entitlement of the district shall be
not later than the 10th day of September of the calendar year paid in an installment to be made on or before the 25th day of
following the calendar year of the 45 percent installment April;
payment made to the district on or before the 25th day of (5) five percent of the yearly entitlement of the district shall
September of a fiscal year. be paid in an installment to be made on or before the 25th day
(I) Excepts these payments from the requirement that of May;
previously unpaid additional funds from prior years owed to a (6) 10 percent of the yearly entitlement of the district shall be
district be paid to the district together with the September paid in an installment to be made on or before the 25th day of
payment of the current year entitlement and specifies that the June;
years to which this requirement refers are fiscal years. (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) [eR ef ilefefe tile 23tll aay ef
AHgHst].
(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 .•
7 11.148.310
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Senate Bill 1811


September of a fiscal year;
October; and
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 (I) [eA er llefeFe tile 23tll lIa;,' ef
Al:igl:lst].
(I) Except as provided bv Subsection (c)(Sl. (d)!3). orCf- n,
any [ARy] 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. [FA5,3rd(I)]
No equivalent provision. SECTION _.015. Amends Section 42.259, Education Code, Same as Senate version.
by adding Subsection (f-1). [FA5,3rd(2)]
SECTION 1.02. Repeals Subsection (c), Section 466.355, SECTION 7.02. Same as Senate version. No equivalent provision.
Government Code.
SECTION 1.03. Makes the changes made by this article to SECTION 7.03. Substantially the same as Senate version. SECTION 1.02. Same as Senate version.
Section 42.259, Education Code, applicable only to a payment
from the foundation school fund that is made on or after the
effective date of this act and provides that 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.
No equivalent provision. SECTION 7.04. This article takes effect September 1,2011. Same as Senate version.
8 11.148.310
Senate Bill 1811
ARTICLE 2. SALE OF CERTAIN STATE PROPERTY ARTICLE _ SALE OF CERTAIN REAL PROPERTY No equivalent provision.
HELD BY CERTAIN STATE AGENCIES [FAl,FA2]
SECTION 2.01. (a) Requires the General Land Office, not SECTION _.0 I. Substantially the same as Senate version. No equivalent provision.
later than August 31, 2013, to offer for sale on behalf of each [FAI,FA2)
holder of real property the tracts of real property described by
Section 2.02 of this article.
(b) Requires the sale, except as otherwise provided, to be
conducted as provided by Section 31.158, Natural Resources
Code.
No equivalent provision. SECTION _.02. SPECIFIC TERMS. [FAI,FA2) No equivalent provision.
SECTION 2.02. Makes Section 2.01 of this article applicable SECTION .03. PROPERTY DESCRIPTIONS. (a) Sets out No equivalent provision.
to property described according to General Land Office Real descriptions for certain property held by the Texas
Property ID number and Parcel number, as applicable. Department of Criminal Justice.
(b) Sets out descriptions for certain property held by the Texas
Department of Transportation.
(c) Sets out descriptions for certain property held by the Texas
Facilities Commission.
(d) Sets out descriptions for certain property held by the
Health and Human Services Commission.
(e) Sets out descriptions for certain property held by the Parks
and Wildlife Department. [FA I,FA2)
SECTION 2.03. Requires the proceeds from the sales SECTION _.04. Substantially the same as Senate version No equivalent provision.
authorized by Section 2.01 of tllis article to be deposited in except refers to proceeds from the sales authorized by Section
the state treasury to the credit of the general revenue fund. 1 ofthis act. [FAI,FA2)
No equivalent provision. SECTION .05. Amends Section 2165.256(b), Government Same as Senate version.
Code, relating to the property dedicated for cemetery purposes
as part of the State Cemetery. [FAI,FA2) ..
9 11.\48.310
.'
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Senate Bill 1811
•
No equivalent provision. SECTION _.06. EFFECTIVE DATE. [FAI,FA2] Same as Senate version.
ARTICLE 3. CUSTOMS BROKERS No equivalent provision. Same as House version.
SECTION 3.01. Amends Subsections (a-I), (t), and (f-I), No equivalent provision. Same as House version.
Section 151.157, Tax Code.
SECTION 3.02. Amends Subsections (b) and (c), Section No equivalent provision. Same as House version.
151.1575, Tax Code.
SECTION 3.03. Amends Subsection (g), Section 151.158, No equivalent provision. Same as House version.
Tax Code.
SECTION 3.04. Saving provision relating to documentation No equivalent provision. Same as House version.
issued on or after the effective date of this article.
ARTICLE 4. STATE SALES AND FRANCHISE TAX No equivalent provision. ARTICLE 4. Same as Senate version.
REFUNDS FOR CERTAIN AD VALOREM TAXPAYERS
No equivalent provision. ARTICLE _. TAX REFUNDS FOR CERTAIN AD Same as Senate version.
VALOREM TAX PAYERS [FA74]
SECTION 4.01. Repeals Subchapter F, Chapter 111, Tax SECTION .01. Same as Senate version. [FA74 reverts the SECTION 4.0 I. Same as Senate version.
Code. text to the Senate engrossed version.]
SECTION 4.02. The repeal of Subchapter F, Chapter Ill, Tax SECTION _.02. The repeal of Subchapter F, Chapter I I I, SECTION 4.02. Same as Senate version.
Code, by this article does not affect an eligible p~rson's right Tax Code, by this article does not affect an eligible person's
to claim a refund of state Sales,and usciimd sta,eJranch~se right to claim a refund of state taxes collected· ~nd~r Chap!ers
taxes that was established under Section 111.30 I, Tax Code, HeaiidI71, TaX Code; that was established under Section
in relation to taxes paid before the effective date of this lirticie 111.301, Tax Code, in relation to taxes paid before the
in a calendar year for which the person paid ad valorem taxes effective date of this Act in a calendar year for which the
to a school district as provided by Section 111.30 I, Tax Code, person paid ad valorem taxes to a school district as provided
10 11.148.310
Senate Bill 1811

before the effective date of this article. by Section I I 1.301, Tax Code, before the effective date of
An eiigibie person's right to claim a refund of siaie sales and this Act. An eligible person's right lo claim a refund of stale
use,: and, state'franchise taxes that was established under taxes collected under ChapterSJ5Iand"17I;"TaxCode, that
Section 111.30 I, Tax Code, in relation to taxes paid before the was established under Section I I 1.301, Tax Code, in relation
effective date of this article in a calendar year for which the to taxes paid before the effective date of this Act in a calendar
person paid ad valorem taxes to a school district as provided year for which the person paid ad valorem taxes to a school
by Section 111.301, Tax Code, before the effective date of district as provided by Section 111.30 I, Tax Code, before the
this article is governed by the law in effect on the date the effective date of this Act is governed by the law in effect on
right to claim the refund was established, and the former law the date the right to claim the refund was established, and the
is continued in effect for that purpose. former law is continued in effect for that purpose. [FA74]
ARTICLE 5. STATE PURCHASING No equivalent provision. ARTICLE 43. Same as Senate version.
SECTION 5.01. Amends Section 2155.082, Government ARTICLE _. MISCELLANEOUS PROVISIONS [Part], SECTION 43.01. Same as Senate version except in (c) adds a
Code, PROVIDING CERTAIN PURCHASING SERVICES SECTION _. Section 2155.082, Government Code [FAI6] condition that the state agency on behalf of which the
ON FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT Same as Senate version. procurement is to be made agrees.
FUNDING, as follows:
Sec. 2155.082. (aHb) Makes conforming changes relating to [The conference committee may have exceeded the limitations
the transfer of certain powers of the Texas Facilities imposed on its jurisdiction. but only the presiding officer can
Commission to the comptroller of public accounts. make the final determination on this issue.]
(c) Authorizes the comptroller to engage a consultant to assist
with a particular procurement on behalf of a state agency and
pay the consultant from the cost savings realized by the state
agency.
ARTICLE 6. UNCLAIMED PROPERTY ARTICLE 8. Same as Senate version. ARTICLE 6. Same as Senate version.
SECTION 6.01. Amends Subsection (a), Section 72.101, No equivalent provision. SECTION 6.0 I. Same as Senate version.
Property Code.
SECTION 6.02. Amends Subchapter B, Chapter 72, Property

Code, by adding Section 72.1017, UTILITY DEPOSITS.
No equivalent provision. SECTION 6.02. Same as Senate version.
,.
II 11.148.310
•
Senate Bill 1811
Seetion-by-Seetion Analysis
.
SECTION 6.03. Amends Subsection (c), Section 72.102, No equivalent provision. SECTION 6.03. Same as Senate version.
Property Code.
SECTION 6.04. Amends Section 72. I03, Property Code. No equivalent provision. SECTION 6.04. Same as Senate version.
SECTION 6.05. Amends Section 73.1 0 I, Property Code, by No equivalent provision. SECTION 6.05. Same as Senate version.
amending Subsection (a) and adding Subsection (c).
SECTION 6.06. Amends Subsection (a), Section 74.101, SECTION 8.01. Same as Senate version except changes the SECTION 6.06. Same as House version.
Property Code, as follows: date to Marc" 1. [FAI(5)]
(a) Changes from June 30 to June 1 the date on which each
holder of certain property that is presumed abandoned is
required to file a report of that property by a certain deadline
and changes that deadline from on or before the following
November I to on or before the following July I.
SECTION 6.07. Amends Subsection (a), Section 74.1011, SECTION 8.02. Same as Senate version except makes the SECTION 6.07. Same as House version.
Property Code, as follows: requirement applicable to a person who holds such property
(a) Requires a person who holds property on June 1, rather on Marc" 1. [FA I (6)]
than June 30, valued at more $250 that is presumed
abandoned to mail to the last known address of the known
owner on or before the preceding May 1, rather than on or
before the following August I, written notice stating that the
holder is holding the property and the holder may be required
to deliver the property to the comptroller by a certain deadline
if unclaimed. Changes that deadline from on or before
November I to on or before July I.
SECTION 6.08. Amends Subsections (a) and (c), Section SECTION 8.03. Same as Senate version except changes the SECTION 6.08. Same as House version.
74.301, Property Code, as follows: date to Marc" 1. [FA I(7)]
(a) Changes from June 30 to June 1 the date on which each
holder of certain property presumed to be abandoned is
12 11.148.310
Senate Bill 1811
required to deliver the property to the comptroller by a certain

deadiine and changes that deadline from the foliowing
November I to the following July 1 and makes conforming
changes.
SECTION 6.09. Amends Subsection (e), Section 74.601, No equivalent provision. SECTION 6.09. Same as Senate version.
Property Code.
SECTION 6.10. Amends Section 74.708, Property Code, as SECTION 8.04. Same as Senate version except changes the SECTION 6.10. Same as House version.
follows: date to Marcil 1. [FA1(8)]
Sec. 74.708. PROPERTY HELD IN TRUST. Among other
provisions, changes from June 30 to June 1 the date on which
a holder who holds certain property presumed abandoned
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.
No equivalent provision. SECTION 8.05. (a) Except as provided by Subsection (b) of SECTION 6.11. Same as House version.
this section, this article takes effect September 1,2011.
(b) Sections 74.101(a), 74.1011(a), 74.30I(a) and (c), and
74.708, Property Code, as amended by this article, take effect
January 1,2013.
SECTION 6.11. A charge imposed on a money order under No equivalent provision. SECTION 6.12. Same as Senate version.
Section 72.103, Property Code, by a holder before the
effective date of this article is governed by the law applicable
to the charge immediately before the effective date of this
article, and the holder may retain the charge.
ARTICLE 7. CLASSIFICATION OF JUDICIAL AND No equivalent provision. ARTICLE 7. Same as Senate version.
COURT PERSONNEL TRAINING FUND
"
13 11.148.310
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Senate BiI11811
•
SECTION 7.0 I. Amends Section 56.00 I, Government Code, ARTICLE _ FISCAL MATTERS REGARDING SECTION 7.01. Same as Senate version.
as follows: JUDICIAL AND COURT PERSONNEL TRAINING FUND.
Sec. 56.001. JUDICIAL AND COURT PERSONNEL [Part] SECTION _.0 I. Same as Senate version. [FA85
TRAINING FUND. reverts the text back to the Senate engrossed version.]
ARTICLE 8. PROCESS SERVER CERTIFICATION FEES No equivalent provision. ARTICLE 8. Same as Senate version.
SECTION 8.01. Amends Subchapter A, Chapter 51, ARTICLE _ FISCAL MATTERS REGARDING SECTION 8.01. Same as Senate version.
Government Code, by adding Section 51.008, FEES FOR PROCESS SERVERS [Part] SECTION _.01. Same as
PROCESS SERVER CERTIFICATION. Senate version. [FA85 reverts the text back to the Senate
engrossed version.]
SECTION 8.02. (a) Sets out applicability for the fees No equivalent provision. SECTION 8.02. Same as Senate version.
recommended and approved under Section 51.008,
Government Code, as added by this article.
(b) Requires the Office of Court Administration of the Texas
Judicial System to prorate the process server certification fee
so that a person who holds a process server certification on the
effective date of this article pays only that portion of the fee
that is allocable to the period during which the certification is
valid. On renewal of the certification on the new expiration
date, the entire certification renewal fee is payable.
ARTICLE 9. FEES FOR DELIVERY OF CERTAIN ARTICLE _ FISCAL MATTERS REGARDING ARTICLE 9. Same as House version.
PETROLEUM PRODUCTS PETROLEUM INDUSTRY REGULATION [FA5]
SECTION 9.01. Amends Subsection (b), Section 26.3574, SECTION _.0 I. Same as Senate version except reduces the SECTION 9.01. [Part] Same as House version.
Water Code, as follows: fees as follows: from $3.75 to not more than $3.125 for each
(b) Removes the applicable period to impose a fee on the delivery into a cargo tank having a capacity of less than 2,500
delivery of a petroleum product on withdrawal from bulk of gallons; from $7.50 to not more than $6.25 for each delivery
that product. into a cargo tank having a capacity of 2,500 or more but less
than 5,000 gallons; from $11.75 to not more than $9.37 for
14 11.148.310
Senate Bill 1811
each delivery into a cargo tank having a capacity of 5,000

gallons or more but less than IS,UUO gaHons; from $i5.00 to
not more than $ J2.50 for each delivery into a cargo tank
having a capacity of 8,000 gallons or more but less than
10,000 gallons; and from $7.50 to not more than $6.25 for
each increment of 5,000 gallons or any part thereof delivered
into a cargo tank having a capacity of 10,000 gallons or more.
[FA5]
No equivalent provision. (b-I) Requires the Texas Natural Resource Conservation SECTION 9.01. [Part] Same as House version.
Commission by rule to set the amount ofthe fee in Subsection
(b) in an amount not to exceed the amount necessary to cover
the agency's costs of administering this subchapter, as
indicated by the amount appropriated by the legislature from
the petroleum storage tank remediation account for that
purpose. [FA5]
ARTICLE 10. REMIITANCE AND ALLOCATION OF No equivalent provision. ARTICLE 10. Same as Senate version.
CERTAIN MOTOR FUELS TAXES
SECTION 10.0 I. Amends Section 162. J 13, Tax Code, by No equivalent provision. SECTION 10.01. Same as Senate version.
adding Subsections (a-I), (a-2), (a-3), and (a-4).
SECTION 10.02. Amends Section 162.214, Tax Code, by No equivalent provision. SECTION 10.02. Same as Senate version.
adding Subsections (a-I), (a-2), (a-3), and (a-4).
SECTION 10.03. Amends Section 162.503, Tax Code, No equivalent provision. SECTION 10.03. Same as Senate version except includes July
ALLOCATION OF GASOLINE TAX, as follows: 2013 as a period during which the comptroller may not
(b) Prohibits the comptroller from allocating revenue allocate revenue otherwise required to be allocated before the
otherwise required to be allocated under Subsection (a) during first workday of September 2013.
August 2013 before the first workday of September 20 I3.
Requires the revenue to be allocated as otherwise provided by
'.
15 11.148.310
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Senate BiIl1811
•
Subsection (a) not later than the fifth workday of September

2013. Sets this subsection to expire September I, 2015.
SECTION 10.04. Amends Section 162.504, Tax Code, No equivalent provision. SECTION 10.04. Same as Senate version except includes July
ALLOCATION OF DIESEL FUEL TAX, as follows: 2013 as a period during which the comptroller may not
(b) Prohibits the comptroller from allocating revenue allocate revenue otherwise required to be allocated before the
otherwise required to be allocated under Subsection (a) during first workday of September 2013.
August 2013 before the first workday of September 2013.
Requires the revenue to be allocated as otherwise provided by
Subsection (a) not later than the fifth workday of September
2013. Sets this subsection to expire September 1,2015.
SECTION 10.05. The expiration of the amendments made to No equivalent provision. SECTION 10.05. Same as Senate version.
the Tax Code in accordance with this article does not affect
tax liability accruing before the expiration of those
amendments. That liability continues in effect as if the
amendments had not expired, and the former law is continued
in effect for the collection of taxes due and for civil and
criminal enforcement of the liability for those taxes.
ARTICLE I I. REMITIANCE OF MIXED BEVERAGE No equivalent provision. ARTICLE I I. Same as Senate version.
TAXES AND TAXES AND FEES ON CERTAIN
ALCOHOLIC BEVERAGES
SECTION 11.0 I. Amends Section 34.04, Alcoholic Beverage No equivalent provision. SECTION 11.01. Same as Senate version.
Code, by adding Subsections (c), (d), and (e).
SECTION I 1.02. Amends Section 48.04, Alcoholic Beverage No equivalent provision. SECTION I 1.02. Same as Senate version.
Code, by adding Subsections (c), (d), and (e).
SECTION 11.03. Amends Section 201.07, Alcoholic No equivalent provision. SECTION 11.03. Same as Senate version.
Beverage Code.
16 11.148.310
Senate Bill 1811

Beverage Code, by amending Subsection (b) and adding
Subsections (c), (d), and (e).
Beverage Code, by amending Subsection (b) and adding
Subsections (c), (d), and (e).
SECTION 11.06. Amends Section 183.023, Tax Code, No equivalent provision. SECTION 11.06. Same as Senate version.
PAYMENT.
SECTION 11.07. Saving provision relating to tax liability No equivalent provision. SECTION 11.07. Same as Senate version.
accruing before the expiration of the amendments made to the
Alcoholic Beverage Code and Tax Code in accordance with
this article.
ARTICLE 12. CIGARETTE TAX STAMPING No equivalent provision. ARTICLE 12. Same as Senate version.
ALLOWANCE
SECTION 12.01. Subsection (a), Section 154.052, Tax Code, No equivalent provision. SECTION 12.01. Same as Senate version except sets the
is amended as follows: distributor's stamping allowance at 2.5 percent of the face
(a) A distributor is, subject to the provisions of Section value of stamps purchased.
154.051, entitled to two (tMee] percent of the face value of
stamps purchased as a stamping allowance for providing the
service of affixing stamps to cigarette packages, except that an
out-of-state distributor is entitled to receive only the same
percentage of stamping allowance as that given to Texas
distributors doing business in the state of the distributor.
SECTION 12.02. Saving provision relating to cigarette stamps No equivalent provision. SECTION 12.02. Same as Senate version.
purchased on or after the effective date of this article.
"
17 11.148.310
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..
ARTICLE 13. FISCAL MATIERS REGARDING BASIC No equivalent provision. Same as House version.
CIVIL LEGAL SERVICES, INDIGENT DEFENSE, AND
JUDICIAL TECHNICAL SUPPORT
ARTICLE 14. SALES FOR RESALE No equivalent provision. ARTICLE 13. Same as Senate version.
SECTION 14.01. Section 151.006, Tax Code, is amended by No equivalent provision. SECTION 13.01. Same as Senate version except in (5) as
amending Subsection (a) and adding Subsection (c) as follows:
follows:
(a) "Sale for resale" means a sale of ... (a) "Sale for resale" means a sale of ...
(5) tangible personal property to a purchaser who acquires the (5) except as Provided bySlil)section'(c), tangible personal
property for the sole purpose of transferring it as an integral property to a purchaser who acquires the property for the
part of performing a contract with the federal government purpose of transferring it as an integral part of performing a
only if the purchaser: contract, or a subcontract of a contract, with the federal
(A) allocates to the contract the cost of the property as a direct government only if the purchaser:
or indirect cost; (A) allocates or charges to the contract the cost of the property
(B) billsthecoslofthepropertyiothe' federai govemmenifor as a direct or indirect cost; and
reimbursement and
(C) transfers title to the property to the federal government
under the contract and applicable federal acquisition (Bl transfers title to the property to the federal government
regulations. under the contract and applicable federal acquisition
(c) Except as otherwise provided bytlii5"chapter. a sale for regulations.
resale does not include the sale of tangible personal property (cl A sale for resale does not include the sale of tangible
or a taxable service to a purchaser who acquires the property personal property or a taxable service to a purchaser who
or service for the purpose of perfonning a service that is not acquires the property or service for the purpose of performing
subject to taXation under this chapter. regardless of whether a service that is not taxed under this chapter. regardless of
title transfers to the purchaser's customer. whether title transfers to the service provider's customer.
unless thetangibleD¢rsoriillprooeity or"taxable serVice is
purchased for the purpose of reselling it to the United States hi
a contract 'with any branch of the Departments of'Defense;
Homeland SecuriW;'Energy. National AeronllUtics and Space
Administration. : Central, Intelligence :Agency" National
Securiiy:Agimcy, National Oceanic and . Atmosphenc
18 11.148.310
Senate Bill 1811
Administration.' or National' Reconnaissance' Office' "'the to

extent" aiiocated and biiied io i.h~ CU!lt.'i!(;t --'''lith'the federal
government.
SECTION 14.02. This article takes effect immediately if this No equivalent provision. SECTION 13.02. Same as Senate version.
each house, as provided by Section 39, Article III, Texas
2011.
ARTICLE 15. COLLECTION IMPROVEMENT PROGRAM ARTICLE 5. Same as Senate version. ARTICLE 52. Same as Senate version.
SECTION 15.01. Subsections (t), (h), (i), and 0), Article SECTION 5.01. Same as Senate version except in (b), (c), (e), SECTION 52.01. Same as Senate version.
103.0033, Code of Criminal Procedure, are amended as (h), (i), and 0) as follows:
follows:
No equivalent provision. (b) Changes the entities to which the collection improvement (b) Same as Senate version.
program applies from only a county with a population of
50,000 or greater and a municipality with a population of
100,000 or greater to each county in this state and to each
municipality with a population of 100,000 or greater.
No equivalent provision. (c) Authorizes, rather than requires, a county to develop and (c) Same as Senate version.
implement a program that complies with the prioritized
implementation schedule under Subsection (h) and removes a
requirement that a program include district, county, and
justice courts.
No equivalent provision. (e) Requires the Office of Court Administration of the Texas (e)Same as Senate version.
Judicial System, by a certain deadline, to identifY those
counties and municipalities that have not implemented a '.
19 11.148.310
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•
program and that are planning to implement a program before

April I of the following year.
(I) (I) Same as Senate version. (I) Same as Senate version.
(h) The officer, in ssasliitatien witA tAs selRptFellsF,] may: (h) The officer, IA SSAsliltatisa witA tAs sSlRptrellsr,] may: (h) Same as Senate version.
(I) use case dispositions, population, revenue data, or other (I) use case dispositions, population, revenue data, or other
appropriate measures to develop a prioritized implementation appropriate measures to develop a prioritized implementation
schedule for programs; and schedule for programs; and
(2) determine whether it is not cost-effective to implement a (2) fora' mUJiidpalihi, determine whether it is not aCiuiin'y
program in 8, i:Q).lIit'Y or municipality and grant a waiver to the cost-effective to implement a program in the' [ae'slIa1;:,'sr]
countyoi municipality. municipality and grant a waiver to the [e~lIfl1;:,', ~r)
municipality.
(i) Each county and municipality shall at least annually submit (i) Each county that implemeritsii brogram and each (i) Same as Senate version.
to the office [ans tAe SSlRptFslleF] a written report that municipality shall at least lIIlnually submit to the office [eaa
includes updated information regarding the program, as tAs sSlRptrellsr] a written report that includes updated
determined by the office [ia sespsFI>tisa witA tAe information regarding the program, as determined by the
SSlRptFslleF]. The report must be in a form approved by the office [iR eeefJBF8tieR witH tAB e8fflfJtFeller]. The report must
office [iA ssspeF8tisa witA tAs sSlRptFellsr]. be in a form approved by the office [in SsspsF8tisn witll tlls
sSlRptFslIsr].
G) The office [sslRptrslIsF] shall periodically audit couniies (j) The office [selRptreller) shall periodically audit [es~~ties (j) Same as Senate version.
lIIl~ municipalities to verify information reported under eaa] municipalities to verify information reported under
Subsection (i) and confirm that the county 'or municipality is Subsection (i) and confirm that the [se~ni:?eF] municipality is
conforming with requirements relating to the program. [+Ile conforming with requirements relating to the program. [+Ile
eeffifJtFeller sHall aeRsH). wi~ tAe ames 18 eletefffliniAg hew eeH\ptFelier 51:1811 eeRsldt witH the eff.'iee i8 EJeteffHiRiRg Rew
ffeElH:eRtl~r fa aBBeys! audits HREler tRis seetieR.] frBElNBRtly ts eeA8l:let QuailS HAaer this seetieA.] [FAl(4)]
SECTION 15.02. Subsection (e), Section 133.058, Local SECTION 5.02. Section 133.058 (e), Local Government SECTION 52.02. Same as Senate version.
Government Code, is amended as follows: Code, is amended as follows:
(e) A municipality or
countY may not retain a service fee if, (e) A municipality [sfsellR~;] may not retain a service fee if,
20 11.148.310
Senate Bill 1811

during an audit under [SeetieR 133.QS9 eftRis eede er] Article during an audit under [SeelieR 133.QS9 eflRis eede er] Article
103.00330), Code of Criminal Procedure, the Office of Court 103.0033(j), Code of Criminal Procedure, the Office of Court
Administration of the Texas Judicial System [eelR~lreller] Administration of the Texas Judicial System [eelR~treller]
determines that the municipality or county is not in determines that the municipality [er ee~Aty] is not in
compliance with Article 103.0033, Code of Criminal compliance with Article 103.0033, Code of Criminal
Procedure. The municipality or county may continue to retain Procedure. The municipality [er ee~R!:r'] may continue to
a service fee under this section on receipt of a written retain a service fee under this section on receipt of a written
confirmation from the office of Court 'Administrationofthe confirmation from the office [eeFR~lreller] that the
Teicas Judicial System [eelRlllreller] that the municipality or municipality [er ee!ili!:r'] is in compliance with Article
county is in compliance with Article 103.0033, Code of 103.0033, Code of Criminal Procedure. [FAI(4)]
Criminal Procedure.
SECTION 15.03. Subsection (c-I), Section 133.103, Local SECTION 5.03. Section 133.103(c-1), Local Government SECTION 52.03. Same as Senate version.
Government Code, is amended as follows: Code, is amended as follows:
(c-l) The treasurer shall send 100 percent of the fees collected (c-1) The treasurer shall send to the comptroller 100 percent
under this section to the comptroller if, during an audit under of the fees collected under this section bv a municipalitY [te
[SeetieA 133.QS9 eflRis eede er] Article 103.0033(j), Code of IRe eelRlltreller] if, during an audit under [SeetieA 133.QS9 ef
Criminal Procedure, the Office of Court Administration of the tRis eede er] Article 103.00330), Code of Criminal Procedure,
Texas Judicial System [eelRlllreller] determines that the the Office of Court Administration of the Texas Judicial
municipality or county is not in compliance with Article System [eelRlltreller] determines that the municipality fer
103.0033, Code of Criminal Procedure. The municipality Or eetHlty] is not in compliance with Article 103.0033, Code of
county shall continue to dispose of fees as otherwise provided Criminal Procedure. The municipality [er eellR!)'] shall
by this section on receipt of a written confirmation from the continue to dispose of fees as otherwise provided by this
Oftice'ofCouitAdministration of the TexaS Judicial System section on receipt of a written confirmation from the office
[eelR~lreller] that the municipality or county is in compliance [eelRlltreller] that the municipality [er eeliRty] is in
with Article 103.0033, Code of Criminal Procedure. compliance with Article 103.0033, Code of Criminal
Procedure. [FAl(4)]
No equivalent provision. SECTION 5.04. This article takes effect September 1,2011. Same as Senate version.
ARTICLE 16. REMITTANCE AND ALLOCATION OF No equivalent provision. Same as House version.
FRANCHISE TAX ..
21 11.148.310
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ARTICLE 17. REMITTANCE OF SALES AND USE No equivalent provision. ARTICLE 14. Same as Senate version.
TAXES
SECTION 17.01. Amends Section 151.401, Tax Code, by No equivalent provision. SECTION 14.01. Same as Senate version.
adding Subsections (c), (d), and (e).
SECTION 17.02. Amends Section 151.402, Tax Code. No equivalent provision. SECTION 14.02. Same as Senate version.
SECTION 17.03. Saving provision relating to tax liability No equivalent provision. SECTION 14.03. Same as Senate version.
accruing before the expiration of the amendments made to the
Tax Code in accordance with this article.
ARTICLE 18. REPORTS REGARDING CERTAIN SALES No equivalent provision. ARTICLE 15. Same as Senate version.
OF ALCOHOLIC BEVERAGES
SECTION 18.0 I. Amends Section 1l1.006, Tax Code, by No equivalent provision. SECTION 15.01. Same as Senate version.
adding Subsections (h) and (i).
SECTION 18.02. Amends Chapter 151, Tax Code, by adding No equivalent provision. SECTION 15.02. Same as Senate version.
Subchapter I-I, and adding the following heading to that
subchapter; SUBCHAPTER I-I. REPORTS BY PERSONS
INVOLVED IN THE MANUFACTURE AND
DISTRIBUTION OF ALCOHOLIC BEVERAGES
SECTION 18.03. Amends Subchapter I-I, Chapter lSI, Tax No equivalent provision. SECTION 15.03. Same as Senate version.
Code, as added by this Act, by adding Sections 151.462,
151.463, 151.464, 151.465, 151.466, 151.467, 151.468,
151.469, 151.470, and 151.471, and transferring Section
151.433, Tax Code, to Subchapter I-I, Chapter 151, Tax
Code, and redesignating it as Section 151.461, Tax Code.
22 11.148.310
Senate Bill 1811
SECTION 18.04. Saving provision relating to a report due on No equivalent provision. SECTION 15.04. Same as Senate version.
or after the effective date of this article.
No equivalent provision. ARTICLE 6. PENALTIES FOR FAILURE TO REPORT OR ARTICLE 16. Same as House version.
REMIT CERTAIN TAXES OR FEES
No equivalent provision. SECTION 6.01. Amends Section 111.00455(b), Tax Code, as SECTION 16.0 I. Same as House version.
follows:
(b) The following are not contested cases under Subsection (a)
and Section 2003.101, Government Code:
(I) 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 I 51.703(d) [IR7Q31];
(F) the refusal or failure to settle under Section 111.10 I; 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.
No equivalent provision. SECTION 6.02. Amends Section 151.433(f), Ta.x Code, as SECTION 16.02. Same as House version.
.•
23 11.148.310
•
Senate Bill 1811
•
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) [!S1.7QJI] or 151.709.
No equivalent provision. SECTION 6.03. Amends Section 151.703, Tax Code, by SECTION 16.03. Same as House version.
(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.
(d) In addition to any other penalty provided by law. the
owner of a motor veh ide 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
taxpaver for the reporting period under the required report.
adding Subsection (j) 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
24 11.148.310
Senate Bill 1811
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.
amending Subsection (c) and adding Subsection (d) as
follows:
(c) The minimum penalty under Subsections (a) and (b) [tftis
seelisA1is $ I.
(d) In addition to any other penalty authorized by this section,
!Tom the tax paver for the reporting period under the required
report.
adding Subsection (c) as follows:
(c) In addition to any other penalty authorized by this section,
shall pay a penalty of $50. The penalty provided bv this
subsequentIv files the report or whether any taxes were due
from the taxpaver for the reporting period under the required
report.
No equivalent provision. SECTION 6.08. Amends Section 171.362, Tax Code. by SECTION 16.08. Same as House version.
amending Subsection (c) and adding Subsection (t) as follows:
(c) The minimum penalty under Subsections (a) and (b) [tftis
seelisA1is $ I.
'.
25 11.148.3 IO
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Senate Bill 1811
•
(Q 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.
No equivalent provision. SECTION 6.09. Amends Subchapter B, Chapter 183, Tax SECTION 16.09. Same as House version.
Code, by adding Section 183.024, FAILURE TO PAY TAX
OR FILE REPORT, as follows:
Sec. 183.024. (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.
ec) 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.
No equivalent provision. SECTION 6.10. Amends Section 771.0712, Health and Safety SECTION 16.10. Same as House version.
Code, by adding Subsections (c) and (d) 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
26 11.148.310
Senate Bill 1811
pay five percent of the amount due and payable as a penallY.

and if the seller faiis to me 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 pavable
as an additional penallY.
(d) In addition to any other penalty authorized by this section.
a seller who fails to file a report as provided by this section
subsection is assessed without regard to whether the seller
from the seller for the reporting period under the required
reoort.
No equivalent provision. SECTION 6.11. Repeals Section 151.7031, Tax Code. SECTION J6. I I. Same as House version.
No equivalent provision. SECTION 6.12. Saving provision relating to a report due or a SECTION 16.12. Same as House version.
tax or fee due and payable on or after the effective date of this
article.
201 I.
No equivalent provision. ARTICLE 9. FISCAL MATTERS RELATED TO VOTER ARTICLE 17. Same as House version.
REGISTRATION
No equivalent provision. SECTION 9.01. Amends Sections 18.065(b), (c), and (d), SECTION 17.0 I. Same as House version.
Election Code, to remove language requiring the secretary of
state to deliver written notice of a voter registrar's .
27 11.148.3 10
.
Senate Bill 1811
•

noncompliance with certain laws and rules to the comptroller
of public accounts and makes relating conforming changes.
(b) On determining that a registrar is not in substantial
compliance, the secretary shall deliver written notice of the
noncompliance tort
[87] the registrar and include[, iRel>lEliRg] in the notice a
description of the violation and an explanation of the action
necessary for substantial compliance and of the consequences
of noncompliance[t-llft6
[(~~ tHe eeFFljJtreller sf J3tlslie aeeStlRts, iRehuliRg iR tAB Retiee
tke iesAtity aftRe R8ReSFRplyiRg rsgistFaF).
(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 [lHKHe
tile eSRllltFslleF] that the registrar is in substantial compliance.
(d) [The eSfHptFsller sHall remiA a Retiee reeeived t:lReler tRis
saerisR 8A file tlRtiJ Jl:ily 1 f'ellewiRg tHe vetiRg )'ear iR 'NJ:lisR
it is Feeei¥eEl.] 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.
No equivalent provision. SECTION 9.02. Section 19.001(a), Election Code, is amended SECTION 17.02. Same as House version.
as follows:
(a) Before May 15 of each year, the registrar shall prepare and
submit to the secretary of state [eSRllltFslleF sf flYhlie
aeeSYRts] a statement containing:
(I) the total number of initial registrations for the previous
voting year;
(2) the total number of registrations canceled under Sections
16.03 I (a)(I), 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.
28 11.148.310
Senate Bill 1811

No equivalent provision. SECTION 9.03. The heading to Section 19.002, Election SECTION 17.03. Same as House version.
Code, is amended as foilows:
Sec. 19.002. PAYMENTS [ISSUA~ICB OF \I/ARRA~ITS 8Y
COMPTROllBR].
No equivalent provision. SECTION 9.04. Sections 19.002(b) and (d), Election Code, SECTION 17.04. Same as House version.
are amended as follows:
(b) After June I of each year, the secretary of state
[eeffl~tFelleF sf ~l;lblj6 aeeSl::lRts] shall make payments [issHe
waITaRls] 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 [esRljlIFslleF] may not make a
payment under Subsection fb) [issYe a 'Na_RI] if on June 1 of
the year in which the nayment [waFFaflI] is to be made [iss<led
tAe !fiBS. FeeeRt Retiee reeei"ea b~' the eefflf3treller fFem tHe
seeretaFy sf state HRBer SeetieA 18.Qe$ iRelieates tl:tat] 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.
No equivalent provision. SECTION 9.05. The heading to Section 19.0025, Election SECTION 17.05. Same as House version.
Code, is amended as follows:
Sec. 19.0025. ELECTRONIC ADMINISTRATION OF
VOUCHERS AND PAYMENTS ['.vARRA~ITS].
No equivalent provision. SECTION 9.06. Section 19.0025(a), Election Code, is SECTION 17.06. Same as House version.
amended as follows:
(a) The secretary of state shall establish and maintain an
online electronic system for administering vouchers submitted
and payments made [_ITaRls issYea] under Section 19.002. ••
29 11.148.310
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Senate Bill 1811
••
No equivalent provision. SECTION 9.07. Section 19.002(c), Election Code, is repealed. SECTION 17.07. Same as House version.
No equivalent provision. SECTION 9.08. This article takes effect September 1,201 I. SECTION 17.08. Same as House version.
No equivalent provision. ARTICLE 10. CERTAIN POWERS AND DUTIES OF THE ARTICLE 18. Same as House version.
COMPTROLLER OF PUBLIC ACCOUNTS
No equivalent provision. SECTION 10.01. Section 403.0551(d), Government Code, is SECTION 18.0 I. Same as House version.
amended 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
["eeFAfleRsatieR,tI] "indebtedness," "state agency," "state
employee," and "successor" have the meanings assigned by
Section 666.00 I.
No equivalent provision. SECTION 10.D2. Section 404.022(h), Government Code, is SECTION 18.02. Same as House version.
amended as follows:
(h) The comptroller may execute a simplified version of a
depository agreement with an eligible institution desiring to
hold [$98,ggg Sf less in] state deposits that are fully insured
by the Federal Deposit Insurance Corporation or the National
Credit Union Share Insurance Fund.
No equivalent provision. SECTION 10.03. Section 41 J.l 09(a), Government Code, is SECTION 18.03. Same as House version.
amended 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
30 11.148.310
Senate Bill 1811

enforcement or administration of Chapter 151, 152, [+£;]
154. ref] 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.
No equivalent provision, SECTION 10.04. Section 403.0551(d), Government Code, as SECTION 18.04. Same as House version.
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.
No equivalent provision. ARTICLE 11. PREPARATION AND PUBLICATION OF ARTICLE 19. Same as House version.
CERTAIN REPORTS AND OTHER MATERIALS
No equivalent provision. SECTION 11.01. Section 61.539(c), Education Code, is SECTION 19.0 I. Same as House version.
amended as follows:
(c) As soon as practicable after each state fiscal year, the
board [eem~kelleF] 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 •
31 11.148.310
Senate Bill 1811
•
available in the physician education loan repayment program

account for the repayment of student loans of physicians
under this subchapter. The board [eeRlfltfellef) shall deliver a
copy of the report to [tke lleafd aRa te] the governor,
lieutenant governor, and speaker of the house of
representatives not later than Janual)' 1 following the end of
the fiscal year covered by the report.
No equivalent provision. SECTION 11.02. Section 5.05(c), Tax Code, is amended as SECTION 19.02. Same as House version.
follows:
(c) The comptroller shall electronically publish all materials
under this section [I9F8\'iEle witkeY! sli8rge eRe e8J3~' sf all
materials 18 egjeials arlesel geverRffl8Rt wlJe BFe resJ38Rsihle]
for administering the property tax system. [If a leeal
gaVeFRRlBAt et+ieial reEfl:lests ffl8FB tHQA eRe sap)', the
SSJTtJ3tFsller AlB)' eh8rge 8 reaseRaele fee t8 egss! thB eests sf
J=1FiAtiRg aRel aistrisl:lting tile fHaterials.] 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.
No equivalent provision. SECTION 11.03. Section 5.06, Tax Code, is amended as SECTION 19.03. Same as House version.
follows:
Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES.
[W] 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.
[fa) Tl:le eefRJ3tfelier sRalt previae witkel:ltel:ler-ge 8 reas8Rabie
HymeSr sf e8flies sf tRe 198ffipl=tlet 18 a~' J3eFS8A 8A r8E1l:lest.
The 8efHptFelier may BR8rge a flerSBR whe reEftissts Rutltiple
32 11.148.310
Senate Bill 1811
espies sf tAe fJ8FRpklet B fe8S8RBBIe fee ta egss! tAe eests ef

prio.b e aRd distiibuting thasa eSpies. The scmptroller-at-i-ts
ElissretisR sRaH EleteFmiRe tAe Al:lmeer sf eepies ~8t a parseR
FRay reeei'"e wid=t8l:lt ekBrge.]
No equivalent provision. SECTION 11.04. Section 5.09, Tax Code, is amended as SECTION 19.04. Same as House version.
follows:
Sec. 5.09. BIENNIAL ["~~IUAb) REPORTS. (a) The
comptroller shall prepare a biennial [Il~elisll aA aAA~al] report
of [tAe 8peFatieRS sf the BfJJ3Faisal Elistriets. THe r8f'srt shall
iRshlEle fer eeak BfJJ3Faisal eistriet, aeeft eeliRl)', aRe eaek
seneel eistriat BRe FA~! iRehleJe far ether WtiRg HAits] the total
appraised values[, assessee! '.. al~es,) and taxable values of
taxable property by category [elass af IlrelleR)', tile
aSSeSSFAeAt ratia,) and the tax rates of each county,
municipality. and school district in effect for the two years
preceding the vear in which the report is prepared [Fllle].
(b) Not later than December 31 of each even-numbered vear,
the [+Ile) comptroller shall~
1I) electronically publish on the comptroller's Internet website
. the [e!eliver a aall)' af eaell aAA~al) report required by
[1l~elisllee! ~Ae!er] Subsection (a): and
(2) notify [af tllis seetiaA ta) the governor, the lieutenant
governor, and each member of the legislature that the report is
available on the website.
No equivalent provision. SECTION 11.05. The following are repealed: SECTION 19.05. Same as House version.
(I) Sections 403.030, and 552.143(e), Government Code; and
(2) Subchapter F, Chapter 379A, Local Government Code.
[FA I (9)]
[ARTICLE 12. SALES AND USE TAX HOLlDAY added by Same as Senate version.
the substitute and deleted by FA I (10); FA61,FA62; FA2,3rd) •
33 11.148.310
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•
[SECTION 12.01. The heading to Section 151.326, Tax Code Same as Senate version.
added by the substitute and deleted by FA I (I 0) ; FA61,FA62;
FA2,3rd]
[SECTION J2.02. Section J51.326, Tax Code added by the Same as Senate version.
substitute and deleted by FAI(IO); FA61,FA62; FA2,3rd]
[SECTION 12.03. The heading to Section 151.327, Tax Code Same as Senate version.
added by the substitute and deleted by FA I(10) ; FA6 I,FA62;
FA2,3rd]
[SECTION 12.04. Section 151.327, Tax Code added by the Same as Senate version.
substitute and deleted by FAI(IO); FA61,FA62; FA2,3rd]
[SECTION 12.05. added by the substitute and deleted by Same as Senate version.
FAI(IO); FA61,FA62; FA2,3rd]
FAI(IO); FA61,FA62; FA2,3rd]
FAI(lO); FA6J,FA62; FA2,3rd]
No equivalent provision. ARTICLE 13. SURPLUS LINES AND INDEPENDENTLY ARTICLE 20. Same as House version.
PROCURED INSURANCE
No equivalent provision. SECTION 13.01. Section 101.053(b), Insurance Code, is SECTION 20.0 I. Same as House version.
amended as follows:
(b) Sections 101.051 and 101.052 do not apply to:
(I) the lawful transaction of surplus lines insurance under
Chapter 98 I;
(2) the lawful transaction of reinsurance by insurers;
34 11.148.310
Senate Bill 1811

(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 ofthe 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 ."
35 11.148.310
Senate Bill 1811
Section-by-Section Analysis .,
(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.
No equivalent provision. SECTION 13.02. Section 225.001, Insurance Code, is SECTION 20.02. Same as House version.
amended as follows:
Sec. 225.001. DEFINITIONS [D81'~IlTIO~11. In this chapter.
(I) "Affiliate" means, with respect to an insured, a person or
entity that controls, is controlled by. or is under common
control with the insured.
(2) "Affiliated group" means a group of entities whose
members are all affiliated.
(3) "Control" means. with respect to determining the home
state of an affiliated entity:
(A) to directly or indirectly. acting through one or more
persons. own. control. or hold the power to vote at least 25
percent of any class of voting security of the affiliated entity:
Q!
(8) to control in any manner the election of the majority of
directors or trustees of the affiliated entity.
(4) "Home state" means:
(A) for an insured that is not an affiliated group described by
Paragraph (B):
(i) the state in which the insured maintains the insured's
principal residence. if the insured is an individual:
(ii) the state in which an insured that is not an individual
maintains its principal place of business: or
(iii) if 100 percent of the insured risk is located outside of the
state in which the insured maintains the insured's principal
residence or maintains the insured's principal place of
business. as applicable, the state to which the largest
percentage of the insured's taxable premium for the insurance
36 11.148.310
Senate Bill 1811
Section.by-Section Analysis

contract that covers the risk is allocated: or
(8) 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 [, "IlFemillm"] includes:
ill [€B] a premium;
(8) premium deposits:
{Q [~] a membership fee;
(D) a registration fee:
ill [~] an assessment;
ill [foB] dues; and
!Q} [~] any other compensation given in consideration for
surplus lines insurance. [FAI(lI)-(14)]
amended 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.
amended by adding Subsections (a-I) and (I) and amending
Subsections (b), (c), and (e) as follows:
(a-I) Consistent with IS U.S.C. Section 8201 et seq .. this state
may not impose a premium tax on nonadmitted insurance
premiums other than premiums paid for insurance in which
this state is the home state of the insured.
(b) Taxable gross premiums under this section are based on •
37 11.148.310
Senate Bill 1811
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 mav 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 [fleFtieR ef IRe] premium for
anv policy in which this state is the home state of the insured
[tRat is flFepefly allaeateEi le a risk SF e7~fJeSHfe leeateEi iR this
5tale].
(e) Premiums [Tke fellewiAg j3feffliuffls are Ret mZfseJe iR this
~
[(I) preffliHffis }3F8f'eFl)' alleeateEl la 8RstkeF state tliat are
speeiHsall)' e:l'i:efflfJt frefR t~iatieR iR t~at state; BREI
[(2) flfeRliHRls] 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.
(0 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. [FA I (15)]
amended as follows:
Sec. 225.005. TAX EXCLUSIVE. The tax imposed by this
chapter is a transaction tax collected by the surplus lines agent
38 11.148.310
Senate Bill 1811

of record and is in lieu of any [aU] other transaction
[inSYFllnee] taxes on these premiums.
amended by adding Subsection (d) 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.
amended as follows:
Sec. 226.05 I. DEFINITIONS [DeP'IJ>IlTIQI>I]. In this
subchapter~
(1) "Affiliate" means. with respect to an insured. a person or
entity that controls. is controlled by. or is under common
control with the insured.
(2) "Affiliated group" means a group of entities whose
members are all affiliated.
(3) "Control" means. with respect to determining the home
state of an affiliated entity:
(A) to directly or indirectly. acting through one or more
persons. own. control. or hold the power to vote at least 25
percent of any class of voting security of the affiliated entity;
ill
(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 (8):
(i) the state in which the insured maintains the insured's '.
39 11.148.310
Senate Bill 1811
•
principal residence. ifthe insured is an individual:
(m the state in which an insured that is not an individual
maintains its principal place of business: or
(iii) if 100 percent of the insured risk is located outside of the
state in which the insured maintains the insured's principal
residence or maintains the insured's principal place of
business. as applicable, the state to which the largest
percentage of the insured's taxable premium for the insurance
contract that covers the risk is allocated: or
(8) 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) "Independentlv procured insurance" means insurance
procured directly by an insured from a nonadmitted insurer.
(6) "Premium" means any payment made in consideration for
insurance and [, "JlreFAiLifR"] includes faR)' eSRsieeFatieR fer
iRsUoF8Hee, iRebuliRg]:
ill [81] a premium;
(B) premium deposits:
iQ [~] a membership fee; reF]
(0) a registration fee:
(E) an assessment:
ill [~] dues: and
(G) anv other compensation given in consideration for
insurance. [FA 1(16)-(20)]
amended as follows:
Sec. 226.052. APPLICABILITY OF SUBCHAPTER. This
subchapter applies to an insured who procures an
40 11.148.310
Senate Bill 1811

independently procured insurance contract for any risk in
which this state is the home state of the insured [in ReeerElRnee
Wil" SeelieR III Ul§3(~)(~)].
amended by amending Subsections (a) and (b) and adding
Subsection (d) 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 [IQ I.g§3(~)(4)].
(b) If an independently procured insurance policy [eenlreel]
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 [flerlien
ef.lke] premium for any policy in which this state is the home
state of the insured [tAat is fJrBfJerly 811eeatee 18 a fisk SF
eJtf)8SYFe leeateel iR tRis state].
Cd) 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 mullistate policies shall be allocated and reported
in accordance with the agreement or compact.
amended 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 20.11. Same as House version.

••
No equivalent provision. SECTION 13.11. The following provisions are repealed:
41 11.148.310
.'
Senate Bill 1811
•
(I) Sections 225.004(d) and (d-I), Insurance Code; and

(2) Section 226.053(b-1), Insurance Code. [FAI(21)]
No equivalent provision. SECTION 13.12. The changes in law made by this article to SECTION 20.12. Same as House version.
Chapters 225 and 226, Insurance Code, apply only to an
insurance policy that is delivered, issued for delivery, or
renewed on or after July 21, 20 II. A policy that is delivered,
issued for delivery, or renewed before July 21, 2011, is
governed by the law as it existed immed iately before the
effective date of this Act, and that law is continued in effect
for that purpose. [FA 1(22),(23)]
each house, as provided by Section 39, Article lII, Texas
for immediate effect, this article takes effect September 1,
2011.
No equivalent provision. ARTICLE 14. OBESITY INTERVENTION AND Same as Senate version.
PREVENTION PROGRAM
No equivalent provision. ARTICLE _. FISCAL MATTERS CONCERNING EARLY ARTICLE 21. Same as House version.
HIGH SCHOOL GRADUATION [FA3]
No equivalent provision. SECTION _.01. Amends Subchapter K, Chapter 56, SECTION 21.01. Same as House version.
Education Code, by adding Section 56.2012, EXPIRATION
OF SUBCHAPTER; ELIGIBILITY CLOSED, as follows:
(a) Sets provisions relating to the Early High School
Graduation Scholarship program to expire September 1,2017.
(b) Notwithstanding Section 56.203, prohibits a person from
receiving an award under this subchapter if the person
42 I I.l48.310
Senate Bill 1811
graduates from high school on or after September I, 20 I I.

[FA3]
No equivalent provision. SECTION _.02. Amends Subsection (b), Section 54.213, SECTION 21.02. Same as House version.
Education Code, as follows:
(b) Requires the commissioner of education to transfer funds
from gifts, grants, and donations made to the Texas Education
Agency for the purpose of tuition exemptions for educational
aides to the Texas Higher Education Coordinating Board to
distribute to institutions of higher education that provide such
exemptions. Removes the requirement that savings to the
foundation school fund that occur as a result of the Early High
School Graduation Scholarship program that are not required
for the funding of certain state credits or school district credits
be used first to provide tuition exemptions for specified
Temporary Assistance for Needy Families students, with the
remainder used for tuition exemptions for educational aides.
[FA3]
No equivalent provision. SECTION _.03. Repeals Section 56.210, Education Code. SECTION 21.03. Same as House version.
[FA3]
No equivalent provision. ARTICLE _ FISCAL MATTERS CONCERNING ARTICLE 22. Same as House version.
RETIRED TEACHERS [FA3]
No equivalent provision. SECTION _.01. Notwithstanding Subsection (a), Section SECTION 22.0 I. Same as House version excepts refers to the
825.404, Government Code, for the state fIScal biennium state fIScal year ending August 31,2012.
ending August 31, 2013, only, the amount of the slate
contribution to the Teacher Retirement System of Texas under
that section may be less than the amount contributed by
members during that biennium. [FA3]
43 11.148.310
•
Senate Bill 1811
•
No equivalent provision. SECTION .02. Notwithstanding Subsection (a), Section SECTION 22.02. Same as House version except refers to the
1575.202, Insurance Code, for the state fIScal biennium statejiscalyearendingAugust 31,2013.
ending August 31, 2013. only, the state may contribute an
amount to the retired school employees group insurance fund
that is less than one percent of the salary of each active
employee. [FA3]
No equivalent provision. ARTICLE _. TEXAS EMERGING TECHNOLOGY FUND ARTICLE 57. ENTERPRiSE~(.'ANl) EMERGING
[FA4] TECHNOLOGY FUNDS.
[The conference committee may have exceeded the limitations

imposed on its jurisdiction. but only the presiding officer can
make the jinal determination on this issue.]
No equivalent provision. No equivalent provision. SECTION 57.01. Section 481.078. Government Code, is
amended by amending Subsections (e) and Gl and adding
Subsections (f-I), (f-2), and (h-I) 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 [el'IlFess "'filteR] prior approval of the lieutenant
governor and speaker of the house of representatives. For
pumoses 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 91 st day after the date of receipt of the proposal
from the governor. The lieutenant governor or the soeaker 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
44 11.148.310
Senate Bill 1811
before the expiration of the initial review period.

(f-I) A grant agreement must contain a provision:
(J) 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 m.
(h-I) 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 and the lieutenant governor.
(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.
No equivalent provision. SECTION .01. Section 490.005(b), Government Code, is SECTION 57.02. Sections 490.005(a) and (b), Government
amended as follows: Code, are amended as follows:
(a) Noilater,than January 31 [.l-]of'each· year, the governor
shall. siIbmii to thelieuten;;t governot.· the sPeaker of the
house of representatives. and the standing' committee' of each
house of the.:legislatllre.with· primary' jurisdiction over
economic development matters 'and post on the office of the
governor's' Internet :.website a:'reportr'thatiriCiudes:' the
following informaiion reiarding awards made under the fu~4
during each .[fei'Jllef preceding '" [1RTee]state ;fiscal. year
~]:
(I) the total number and arnouni'ofawards made;
(2);ttie ·number,.and ,amount:. of" a'Yardsrnade '. under
Subchapters D,E, and'F;
45 1I.148.310
•
Senate Bill 1811
•
(3) tiie'aggnigate tdtal.o(private's¥Ctor" invesiTneh~Je'deral

government'funding,; and· .contributionS fr~m':other" sources
obtiin~din~coiinectipri\Vith' awards made under, each of the
s!Jbchapterslisted in'Subdivision (2);
(4) tile' iiiimeof eacliaward,redpiell(and' the'amount the of
award made to therecipieni; and
(5)a bri~fdescripti~n6fthe'~q~itfji6~itiori 'ihat. tliegovernor,
011\ be~~if: of.the; .Sfate"may'take., in;.'.i:6mpanies ."rec.eiviilg
awardsaiidthel1ames.· oftliec~)Jlli>aitiesin.\Vhichthe Sfl\te.haS
taken iiIl equii)'positioii:
(b) The annual report must also contain~ (b) The annual report must also contain~
(n the total number of jobs actually created by each project (I) the total number of jobs actually created by each project
receiving funding under this chapter; receiving funding under this chapter;
(2) an analysis of the number of jobs actually created by each (2) an analysis of the number of jobs actually created by each
project receiving funding under this chapter: and project receiving funding under th is chapter. and
ill a brief description regarding: ill a brief description regarding:
(A) the methodology used to determine the information (A) the methodology used to determine the information
provided under Subdivisions (I) and (2); provided under Subdivisions (I) and. (2). which inay be
developed in consultation with the comptroller's office:
(ill [tB] the intended outcomes of projects funded under (ill [( I)] the intended outcomes of projects funded under
Subchapter D during 1he preceding two state fiscal years; and Subchapter D during each. [UIe] preceding [~] state fiscal
year [yeafs]; and
fQ [~] the actual outcomes of all projects funded under fQ [(2)] the actual outcomes of all projects funded under
Subchapter D during the, fuml's<.existence, including any Subchapter D during eachpreceding':state' fiscal year [~
financial impact on the state resulting from a liquidity event [IIRS'S el'i!HeRee], including any financial impact on the state
involving a company whose project was funded under that resulting from a liquidity event involving a company whose
subchapter. [FA4] project was funded under that subchapter.
No equivalent provision. No equivalent provision. SECTION 57.03. Subchapter A, Chapter 490, Government
Code, is amended by adding Section 490.006 as follows:
Sec. 490.006. VALUATION OF INVESTMENTS:
INCLUSION IN ANNUAL REPORT. To the maximum
extent practicable. the office of the governor shall annually
46 11.148.310
Senate BiI11811
perform a valuation of the eauity positions taken by the

governor, on behalf of the state, in companies receiving
awards under the fund and of other investments made bv the
governor, on behalf of the state, in connection with an award
under the fund. The valuation must:
I I) be based on a methodology that:
IA) may be developed in consultation with the comptroller's
office; and
IB) is consistent with generallv accepted accounting
principles; and
(21 be included with the annual report required under Section
490.005.
No equivalent provision. SECTION _.02. The heading to Section 490.052, SECTION 57.04. Same as House version.
Government Code, is amended as follows:
Sec. 490.052. APPOINTMENT TO COMMITTEE [B¥
GOVIOPJoIOR]; NOMINATIONS. [F A4]
No equivalent provision. SECTION .03. Section 490.052, Government Code, is SECTION 57.05. Same as House version.
amended by amending Subsection (a) and adding Subsections
(a-I) and (a-2) as follows:
(a) The governor shall appoint to the committee II individuals
nominated as provided by Subsection (b).
la-1) The lieutenant governor shall appoint two senators to the
committee.
la-2) The speaker of the house of representatives shall appoint
two members ofthe house of representatives to the committee.
[FA4]
No equivalent provision. SECTION _.04. Subchapter B, Chapter 490, Government SECTION 57.06. Subchapter B, Chapter 490, Government
Code, is amended by adding Section 490.0521 as follows: Code, is amended by adding Section 490.0521 as follows:
Sec. 490.0521. FINANCIAL STATEMENT REOUIRED. Sec. 490.0521. FINANCIAL STATEMENT REOUIRED. la)
Each member of the committee shall file with the office of the Each member of the committee shall file with the office of the
•
47 11.148.310
.'
Senate BiI11811

governor i1n;dtheTeX'asEtiiits';';tcimmissi6~ a verified governor a verified financial statement complying with
financial statement complying with Sections 572,022 through Sections 572.022 through 572,0252 as is required of a state
572.0252 as is required of a state officer by Section 572.021. officer by Section 572.021.
[FA4) rb) All iitfcinnation obtained and-maiillainedpilfSuant'tli
Subsection (a). " incluoing' infoririatioh; derived -.from the
finanCial 'statements.' is' - confidential'and -is not subject 'to
disclosure under Chapter 552:
rcr The governor. '_on reguesh6ririih'e -, iiorn;alcourse ot
official'business;sha1l"provide information thatis confidential
under Subsection (b) to the state auditor's office.
(d) This; section -does not affect release of information for
legislative purposes pursuant to Section 552.008.
No equivalent provision. SECTION _.05. Section 490.054, Government Code, is SECTION 57.07. Same as House version.
amended as follows:
Sec. 490.054. TERMS. fl!} 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. [FA4]
No equivalent provision. SECTION _.06. Subchapter B, Chapter 490, Government Same as Senate version.
Sec. 490.0551. MEETINGS. (a) The committee shall hold
meetings periodically to conduct the business of the
committee.
(b) The committee and any subcommittee of the committee
shall give notice of each meeting to be held by the committee
or subcommittee. as applicable. to the secretary of state. The
secretary of state shall post the notice on the secretary of
state's Internet website at least 72 hours before the scheduled
time of the meeting. The notice must contain:
48 11.148.310
Senate Bill 1811

(l )the date. time. and place of the meeting: and
(2) the agenda of items to be considered at the meeting.
(c) The committee and any subcommittee of the committee
shall keep minutes of each meeting. The minutes must
include:
(I) an indication of each committee member's vote. including
any recusal by a member. on each matter under consideration
by the committee; and
(2) a description of the specific nature of any conflict of
interest disclosed by a committee member. including the
manner in which the conflict of interest was resolved. [FA4]
No equivalent provision. SECTION _.07. Section 490.056, Government Code, is SECTION 57.08. Section 490.056, Government Code, is
amended by adding Subsections (c), (d), and (e) as follows: amended by adding Subsections (c), (d), and (e) as follows:
(c) Each entity recommended by the committee for an award (c) Each entity recommended by the committee for an award
of money from the fund as provided by this chapter shall of money from the fund as provided by this chapter shall
obtain and provide the following information to the office of obtain and provide the following information to the office of
the governor: the governor:
(I) a federal criminal historY background check for each 1I) a federal criminal history background check for each
principal ofthe entity: principal of the entity;
(2) a state criminal history background check for each (2) a state criminal history background check for each
principal of the entity: principal of the entity:
(3) a credit check for each principal of the entity: (3) a credit check for each principal of the entity:
(4) a copy ofa government-issued form of photo identification (4) a copy of a govemment-issued form of photo identification
for each principal of the entity: and for each principal ofthe entity: and
(5) information regarding whether the entity or a principal of (5) information regarding whether the entity or a principal of
the entity has ever been subject to a sanction imposed by the the entity has ever been subject to a sanction imposed by the
Securities and Exchange Commission for a violation of Securities and Exchange Commission for a violation of
applicable federal law. applicable federal law.
(d) For pumoses of Subsection (c): (d) For pumoses of Subsection (c),
(l) "'Controlling interest" has the nieanini£assiimed biSection
171 .000 I. Tax Code.
(2) "Principal" means: "principal" means:
49 11.148.310
•
•
Senate BiJl1811
Section.by·Section Analysis
•
(A) an officer of an entity: or (I) an officer of an entity: or

(8) a person who directly or 'i~direct1\l.bWrisor'coMrcils~ (2) a person who has at least a: ]Opercentowne~ship'intereSt
controlling interest in an entity. in an entity.
(e) With each proposal to award funding submitted by the (e) With each proposal to award funding submitted by the
governor to the lieutenant governor and speaker of the house governor to the lieutenant governor and speaker of the house
of representatives for purposes of obtaining prior approval, the of representatives for purposes of obtaining prior approval, the
governor shall provide each officer with a copy of the governor shall provide each officer with a copy of the
information provided by the appropriate entity under information provided by the appropriate entity under
Subsection (c). [FA4] Subsection (cl.
No equivalent provision. No equivalent provision. SECTION 57.09. Section 490.057, Government Code. is
amended as follows:
Sec. 490.057. CONFIDENTIALITY. (a) Except as provided
by Subsection (b). information [IRfefRlBtieR] 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:
(I) the name and address of an individual or entity receiving
or having received an award from the fund:
(2) the amount offunding 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
50 11.148.310
Senate Bill 1811

(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;
(8) the governor:
(e> the lieutenant governor: and
(0) the speaker of the house of representatives,
No equivalent provision. SECTION _.08. Section 490.101, Government Code, is Same as Senate version.
amended by adding Subsection (f-I) as follows:
(f-11 A,Caward to a DllrticularreCipierit from the fundma~ not
exceed $3,000,000. [FA4]
No equivalent provision. No equivalent provision. SECTION 57.10, Section 490.101, Government Code, is
amended by amending Subsection (f) and adding Subsection
(f-1) as follows:
(f) The administration "of the "fund,. is}consid~red:toiie,a
trusteed 'program within thi:office,of tlie;governor.Jhe
goVernor may negotiate, pn 'behalf of the State reginding
awards from; the, fund. ,ThegoyemOr may ~~ardmoney
appropriatedfromthe fundorilywith the [e;'flressv.,...lieR]
prior approval of the lieutenant governor l!nd ,speaker:of the
houSe of representatives:
(f-l) For purposes' of SubseCtion' (6; lnl"award 'of money
appropriated frOm the fund is considered disapproved by the
I ieutenant governor or speaker of the house of representatives
if that officer does not approve the proposal to award funding
before the 91stday after the date of receipt of the proposal
from the governor. The'lieutenant !\Overnor or the speaker of
tliehouse of representatives may' extend 'the review deadline
in?plicable to thai- officer. 'for an' additioiial"14 days' by
submitting a 'written notice to that effect to the' governor
before the expiration ofthe initial review period. '.
51 11.148.310
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•
No equivalent provision. SECTION _.09. Subchapter D, Chapter 490, Government SECTION 57.12. Subchapter D, Chapter 490, Government
Code, is amended by adding Section 490.1 52 I as follows: Code, is amended by adding Section 490.1521 as follows:
Sec. 490.1521. MINUTES OF CERTAIN MEETINGS. (a) Sec. 490.1521. MINUTES OF CERTAIN MEETINGS. (a)
Each regional center of innovation and commercial ization Each regional center of innovation and commercialization
established under Section 490.152. including the Texas Life established under Section 490.152. including the Texas Life
Science Center for Innovation and Commercialization, shall Science Center for Innovation and Commercialization, shall
keep minutes of each meeting at which applications for keep minutes of each meeting at which applications for
funding under this subchapter are evaluated. The minutes funding under this subchapter are evaluated. The minutes
~ must:
(I) include the name of each applicant recommended by the (I) include the name of each applicant recommended by the
regional center of innovation and commercialization to the regional center of innovation and commercialization to the
committee for funding: and committee for funding: and
(2) indicate the vote of each member of the governing body of (2) indicate the vote of each member of the governing body of
the regional center of innovation and commercialization. the regional center of innovation and commercialization,
including any recusal by a member and the member's reason including any recHsal by a member and the member's reason
for recusal. with regard to each application reviewed. for recusal, with regard to each application reviewed.
(b) Not" later than the 30th day after the date a' meeting'io (b) Each regional center of innovation and coinmerci~lizatiori
which this section :applieS' is held. ;,theappropriate regional shallretiiin a 'copy of the minutes of each meeting to which
center' of innovation and commercialization shall post it copy this section amilies forat least three yearS.
of the minutes of the meetingon'thecenter's Internet website.
The copy oftheininutes must remain posted On the website
for at leastfolrryears. [FA4]
No equivalent provision. No equivalent provision. SECTION 57.13. Section 203.021, Labor Code, is amended
by adding Subsection (e) as follows:
(e) Money in the compensation fund may not be transferred to
the:
(n Texas Enterprise Fund created under Section 481.078.
Government Code; or
(2) Texas emerging technology fund established under Section
490.101, Government Code.
No equivalent provision. No equivalent provision. SECTION 57.14. Section 204.123, Labor Code, is amended as
52 11.148.310
Senate Bill 1811
follows:
Sec. 204.123. TRANSFER TO [TBXAS ~ITBRPR~SB
H~lg,] . SKILLS DEVELOPMENT FUND, TRAINING
STABILIZATION FUND, AND COMPENSATION FUND.
(a) If, on September I 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 I computation date, the commission shall
transfer from the holding fund created under Section 204.122:
(I) [frem tHe ~fSt $leQ RiillieR aefJ8sitet:l in tAe RsleliAg AiRel
in aA)! slate {.issal eieARiHff&:
[(A) Eh:lFiAg tke state fiseallJieRRil:lffl eREliRg l\Hg\:ist d1, 2QQ7:
Hi) 67 J3ereeRt 1a tAe Telras ERteFfJFise ¥HR8 8reatea UReter
£eetieR 481.978, GeveFAfReAt Geele, e)£ee~t tJ:\at tHe BRlSlIRt
traAsfeFFeti \:lASer tRis fl8FagF8ph ffi~t Ret sussed tJ:le 81H8HRt
aJ3f3fefJri8teell:J~' tHe legislstHf8 18 tAe Te~c8s eRteFj3Fise J:YRel iR
tABt eieRRitlffl; BRe
[(ii) 33 fiBreS"! 18 tAe shills ee\'elef)ffieRt fHRe 6Teeled HAser
SeetisR 3Q3.QQ3, eli.sept lRat ike Offi8H"t tfaRsfeFFee HRBer llti5
f38fagf8f31~ ffl8)' Ret SUBsea tl:te affi8l:lAt apJ3reJ3Fiateei hy tHe
JegislatHfe ta tl:te skills ele\lelepRteAt J3fSgrBffi strategies BRa
aetivities iR tltat llieRAiHFH; aAEI
~] during any state fiscal biennium beginning on or after
September 1,2007. 100 [:
[(i) 75 J3ereeRt ta tl:le Tellas eRteFJ3rise YtiRS ereateel HAEler
SeetisR ~81.Q78, Ge",emRteRt Ceele, eneeJ=1t that tRe alHaHRt
tF8ASFeFfeei NAeler tl:lis j9aragFafJh may Ret euseee tRe aFHeuRt
afJJ3f8J=1riatee h)' tAe legislatHre ts tRS Teu8s eRte"rise fHREI iIi
tRBt eieARiHm; BAS
Wi) 23] percent to the skills development fund created under
Section 303.003, except that the amount transferred under this
subdivision [~BF8grB~Il] may not exceed the amount
appropriated by the legislature to the skills development ..
53 11.148.310
•
Senate BiI11811
•
program strategies and activities in that biennium; and

(2) any remaining amount in the holding fund after the
distribution under Subdivision (I) to the training stabilization
fund created under Section 302.10J.
(b) If, on September I 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 I 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 [Teli&S eRleFflFise FIIRB, IRe] skills
development fund[,] and the training stabilization fund in the
manner [iR IRe peFeeRI&ges] prescribed by Subsection (a).
No equivalent provision. No equivalent provision. SECTION 57.15. Sections 302.IOI(b) and (c), Labor Code,
(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 [eilReF IRe 1=el<&s
ellleFflFise FIIRB eF] the skills development program strategies
and activities.
(c) Money in the training stabilization fund shall be
transferred to the [1=ell&S eRleFflFise VIIRB &RB IRe] skills
development fund under Subsection (b) not later than
September 30. [THe tFansfeF HRser SYBseetien (e~ sAal1 eensist
sf transferring fi7 parSeR! sf tAe ffteRe)' iR the tFaiRing
stallili28tien faRe 1a tHe Tau-as enteFfJfise ¥HRti and 33 f3ereeat
sf tRe lTIeRe~' in tRe {faiRing steeiliMtien HtRe 1a tAe skills
Be.'elepFfleRI fIlRB.] The amount transferred from the training
54 11.148.310
Senate Bill 1811

stabilization fund may not exceed the amounts appropriated to
the [fe?ias HAleFjlFise J::YAEI aAEI] skills development program
strategies and activities in the fiscal year in which the transfer
is made.
No equivalent provision. No equivalent provision. SECTION 57.16. Sections 4SI.07S(e) and 490.IOI(t),
Government Code, as amended by this Act, and Section
490.101(f-I), Government Code, as added by this Act, 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 Act. A proposal submitted by the governor for prior
approval before the effective date of this Act 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.
No equivalent provision. No equivalent provision. SECTION 57.17. Section 4SI.0780), Government Code, as
amended by this article, and Sections 481.07S(f-l) 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.
No equivalent provision. SECTION _.10. SECTION 57.IS. Same as House version except in (a) as
follows:
(a) The terms of the members of the Texas Emerging (a) The terms of the members of the T.exas Emerging
Technology Advisory Committee serving on the effective date Technology Advisory Committee serving immediately before
of this article expire September I, 20 I I. the effective date of this article expire September 1,201 I.
(b) As soon as practicable after this article takes effect, the
55 11.148.310
Senate Bill 1811
•
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.
(c) At the first meeting of members of the Texas Emerging
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 J, 2012, and which seven members will serve a
term expiring September 1,2013. [FA4]
No equivalent provision. SECTION _.I I. Section 490.101(f-I), Government Code, as Same as Senate version.
added by this article, applies only to an award from the Texas
emerging technology fund that is made on or after the
effective date of this article. An award from the Texas
emerging technology fund made before the effective date of
this article is governed by the law in effect on the date the
award was made, and the former law is continued in effect for
that purpose. [FA4]
No equivalent provision. ARTICLE _ FISCAL MATTERS CONCERNING Same as Senate version.

ANIMAL HEALTH REGULATION [FA5]
No equivalent provision. ARTICLE _. COASTAL EROSION [FA5] ARTICLE 23. Same as House version.
No equivalent provision. SECTION _.01. Section 33.608, Natural Resources Code, SECTION 23.01. Same as House version.
REPORT TO LEGISLATURE, is amended as follows:
(b) Requires the biennial report submitted to the legislature by
the commissioner of the General Land Office to include a plan
for coastal erosion response studies and projects that may be
56 11.148.310
Senate Bill 1811
funded, wholly or partly, from money in the account and may

be undertaken during the next 10 or more years. [FAS]
No equivalent provision. ARTICLE . TEXAS FARM AND RANCH LANDS ARTICLE 60. Same as House version.
CONSERVATION PROGRAM [FAS]
SECTION _.01. Subsection (b), Section 183.059, Natural SECTION 60.01. Same as House version.
Resources Code, is amended as follows:
(b) To receive a grant from the fund under this subchapter, an
applicant who is qualified to be an easement holder under this
subchapter must submit an application to the council. The
application must:
(1) set out the parties' clear conservation goals consistent with
the program;
(2) include a site-specific estimate-of-value appraisal by a
licensed appraiser qualified to determine the market value of
the easement; and
(3) [ae.eeRstmte that the BIlillieBRt is Bele te .eateh ~g llereeRt
sf tJ:te 8FR8YRt sf tHe gF8Rt heing 58 light, eeAsieleriRg tRst tAe
eeHReil ffi~! eReese fa allew e eleRatieR sf fl8Ft sf tfie
8f'~f8iseel vallie sf tHe eB:SeFReRt 19 se eeRsiEieFes as in kiHEi
mateJ:tiAg RiRas; SAd
[f41] include a memorandum of understanding signed by the
landowner and the applicant indicating intent to sell an
agricultural conservation easement and containing the terms
of the contract for the sale of the easement. [FAS]
No equivalent provision. ARTICLE_. FISCAL MATTERS CONCERNING PARKS ARTICLE 24. Same as House version.
AND WILDLIFE CONTRIBUTIONS [FA5]
No equivalent provision. SECTION _.01. Subchapter D, Chapter 502, Transportation SECTION 24.01. Same as House version.
Code, is amended by adding Sections 502. I747,
VOLUNTARY CONTRIBUTION TO PARKS AND
..
57 11.148.310
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Senate Bill 1811
•
WILDLIFE DEPARTMENT, and 502.1748. DISPOSITION

OF CERTAIN VOLUNTARY CONTRIBUTIONS. as
follows:
Sec. 502.1747. (a) When a person registers or renews the
registration of a motor vehicle under this chapter, the person
mav contribute $5 or more to the Parks and Wildlife
Department.
(b) The department shall:
(I) include space on each motor vehicle registration renewal
notice, on the page that states the total fee for registration
renewal, that allows a person renewing a registration to
indicate the amount that the person is voluntarily contributing
to the state parks account:
(2) provide an opportunity to contribute to the state parks
account similar to the opportunity described by Subsection (a)
and in the manner described by Subdivision (1) in any
registration renewal system that succeeds the svstem in place
on September 1, 2011: and
(3) provide an opportunity for a person to contribute to the
state parks account during the registration renewal process on
the department's Internet website.
(c) If a person makes a contribution under this section and
does not pay the full amount of a registration fee, the county
assessor-colleetor may credit all or a portion of the
contribution to the person's registration fee.
(d) The county assessor-collector shall send any contribution
made under this section to the comptroller for deposit to the
credit of the state parks account under Section 11.035, Parks
and Wildlife Code, Money received by the Parks and Wildlife
Department under this section may be used onlv for the
operation and maintenance of state parks, historic sites, or
natural areas under the jurisdiction of the Parks and Wildlife
Department.
58 11.148.310
Senate Bill 1811

eel The department shall consult with the Parks and Wildlife
Department in performing the department's duties under this
section.
Sec. 502.1748. If a person makes a voluntarv contribution
under Section 502.1746 or 502.1747 at the time the person
registers or renews the registration of a motor vehicle under
this chapter but the person does not clearlv specifv the entity
to wh ich the person intends to contribute. the county assessor-
collector shall divide the contribution between the entities
authorized to receive contributions under those sections.
[FA5]
No equivalent provision. SECTION _.02. Sections 502.1747 and 502.1748, SECTION 24.02. Same as House version.
Transportation Code, as added by this article, apply only to a
motor vehicle registration renewal notice issued for a
registration that expires on or after January I, 2012. [FA5]
No equivalent provision. ARTICLE _. FISCAL MATIERS CONCERNING OIL ARTICLE 25. Same as House version.
AND GAS REGULATION [FA5]
No equivalent provision. SECTION .0 I. Subsection (c), Section 81.0521, Natural SECTION 25.01. Same as House version.
(c) Two-thirds of the proceeds from this fee, excluding
[iAelllEliAg] any penalties collected in connection with the fee,
shall be deposited to the oil and gas regulation and [ail field]
cleanup fund as provided by Section 81.067 [~]. [FA5]
No equivalent provision. SECTION _.02. Subchapter C, Chapter 81, Natural SECTION 25.02. Same as House version.
Resources Code, is amended by adding Sections 81.067
through 81.070 as follows:
No equivalent provision. Sec. 81.067. OIL AND GAS REGULATION AND Same as House version. ..
59 11.148.310
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Senate Bill 1811
CLEANUP FUND. (a) Creates the oil and gas regulation and
cleanup fund as an account in the general revenue fund of the
state treasury.
(b) Requires the Railroad Commission of Texas to certifY to
the comptroller the date on which the balance in the fund
equals or exceeds $20 million. Prohibits the oil-field cleanup
regulatory fees on oil and gas from being collected or required
to be paid on or after the first day of the second month
following the certification, but requires the comptroller to
resume collecting the fees on receipt of a commission
certification that the fund has fallen below $10 million.
Requires the comptroller to continue collecting the fees until
collections are again suspended in the manner provided by
this subsection.
(c) Sets out the components of the fund.
No equivalent provision. Sec. 81.068. PURPOSE OF OIL AND GAS REGULATION Same as House version.
AND CLEANUP FUND. Money in the oil and gas regulation
and cleanup fund may be used by the commission or its
employees or agents for any pumose related to the regulation
of oil and gas development, including oil and gas monitoring
and inspections, oil and gas remediation, oil and gas well
plugging. public information and services related to those
activities. and administrative costs and state benefits for
personnel involved in those activities.
No equivalent provision. Sec. 81.069. REPORTING ON PROGRESS IN MEETING Same as House version.
PERFORMANCE GOALS FOR THE OIL AND GAS
REGULATION AND CLEANUP FUND. (a) Requires the
commission, through the legislative appropriations request
process, to establish specific performance goals for the oil and
gas regulation and cleanup fund for the next biennium,
including goals for each quarter of each state fiscal year of the
60 l1.I48.310
Senate Bill 1811

biennium for the number of:
(1) orphaned wells to be plugged with state-managed funds;
(2) abandoned sites to be investigated, assessed, or cleaned up
with state funds; and
(3) surface locations to be remediated.
(b) Requires the commission to provide quarterly reports to
the Legislative Budget Board that include certain specified
information
(c) Requires the commission to submit to the legislature and
make available to the public, annually, a report that reviews
the extent to which money provided under Section 81.067 has
enabled the commission to better protect the environment
through oil-field cleanup activities. Requires the report to
include certain specified information.
No equivalent provision. Sec. 81.070. ESTABLISHMENT OF SURCHARGES ON Same as House version except in (I) prohibits a surcharge
FEES. (a) Requires the commission, except as provided by collected under tllis section from exceeding an amount equal
Subsection (b), by rule to provide for the imposition of to 185 percent ofthefee on which it is imposed.
reasonable surcharges as necessary on fees imposed by the
commission that are required to be deposited to the credit of
the oil and gas regulation and cleanup fund as provided by
Section 81.067 in amounts sufficient to enable the
commission to recover the costs of performing the functions
specified by Section 81.068 from those fees and surcharges.
(b) Prohibits the commission from imposing a surcharge on an
oil-field cleanup regulatory fee on oil collected under Section
81.116 or an oil-field cleanup regulatory fee on gas collected
under Section 81.117.
(c) Requires the commission by rule to establish a
methodology for determining the amount of a surcharge that
takes certain factors into account.
(d) Requires the commission to collect a surcharge on a fee at
the time the fee is collected. '.
61 11.148.310
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Senate Bill 1811
•
(e) Requires a surcharge collected under this section to be

deposited to the credit of the oil and gas regulation and
cleanup fund as provided by Section 81.067.
(f) Prohibits the commission, notwithstanding any other
provision of this section, from setting a surcharge in an
amount that would generate an amount of revenue that
exceeds the amount appropriated to the commission for
performing thefunctions specified by Section 81.068" [FA5]
No equivalent provision. SECTION _.03. Section 81.115, Natural Resources Code, is SECTION 25.03. Same as House version.
amended as follows:
Sec. 81.115. APPROPRIATIONS [PAYMm-lTS] TO
COMMISSION FOR OIL AND GAS REGULATION AND
CLEANUP PURPOSES [DI'lISIO~I]. Money appropriated to
the [eil aREI gas Eli,'isieR eft".] commission under the General
Appropriations Act for the purposes described by Section
81.068 shall be paid from the oil and gas regulation and
cleanup fund [C.R.Fal R..... R~. F~REI]. [FA5]
No equivalent provision. SECTION _.04. Subsections (d) and (e), Section 81.116, SECTION 25.04. Same as House version.
Natural Resources Code, are amended as follows:
(d) The comptroller shall suspend collection of the fee in the
manner provided by Section 81.067 [~]. The exemptions
and reductions set out in Sections 202.052, 202.054, 202.056,
202.057, 202.059, and 202.060, Tax Code, do not affect the
fee imposed by this section.
(e) Proceeds from the fee, excluding [jRel~EliRg] any penalties
collected in connection with the fee, shall be deposited to the
oil and gas regulation and [eil fielEl] cleanup fund as provided
by Section 81.067 [91.111 eftkis eeEle]. [FA5]
No equivalent provision. SECTION _.05. Subsections (d) and (e), Section 81.1 17, SECTION 25.05. Same as House version.
62 11.148.310
Senate Bill 1811

(d) The comptroller shall suspend collection of the fee in the
manner provided by Section 81.067 [9+rl-I-+]. The exemptions
and reductions set out in Sections 201.053, 201.057, 201.058,
and 202.060, Tax Code, do not affect the fee imposed by this
section.
(e) Proceeds from the fee, excluding [iRShllliRg] any penalties
collected in connection with the fee, shall be deposited to the
oil and gas regulation and [eil lield] cleanup fund as provided
by Section 81.067 [91.111 ef IRis eede]. [FA5]
No equivalent provision. SECTION _.06. Subsection (d), Section 85.2021, Natural SECTION 25.06. Same as House version.
(d) All fees collected under this section shall be deposited in
the oil and gas regulation and [stale eil field] cleanup fund.
[FA5]
(d) An operator who files an abeyance of plugging report must
pay an annual fee of$IOO for each well covered by the report.
A fee collected under this section shall be deposited in the oil
and gas regulation and [eil field] cleanup fund. [FA5]
(d) An operator who files documentation described by
Subsection (a) must pay an annual fee of $50 for each well
covered by the documentation. A fee collected under this
section shall be deposited in the oil and gas regulation and
[eil field] cleanup fund. [FA5]
Resources Code, is amended as follows: '.
63 11.148.310
•
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Senate Bill 1811
•
(d) On successful plugging of the well by the well plugger, the

surface estate owner may submit documentation to the
commission of the cost of the well-plugging operation. The
commission shall reimburse the surface estate owner from
money in the oil and gas regulation and [eil Held) cleanup
fund in an amount not to exceed 50 percent of the lesser of:
(I) the documented well-plugging costs; or
(2) the average cost incurred by the commission in the
preceding 24 months in plugging similar wells located in the
same general area. [FA5)
No equivalent provision. SECTION .I O. Subsection 0), Section 89.083, Natural SECTION 25.10. Same as House version.
0) Money collected in a suit under this section shall be
deposited in the oil and gas regulation and [stale ail Held)
cleanup fund. [FA5)
No equivalent provision. SECTION .I J. Subsection (d), Section 89.085, Natural SECTION 25. I I. Same as House version.
(d) The commission shall deposit money received from the
sale of well-site equipment or hydrocarbons under this section
to the credit of the oil and gas regulation and [ail Held)
cleanup fund. The commission shall separately account for
money and credit received for each well. [FA5)
No equivalent provision. SECTION _.12. The heading to Section 89.086, Natural SECTION 25.12. Same as House version.
Sec. 89.086. CLAIMS AGAINST OIL AND GAS
REGULATION AND [Ulg 016 F1g6D) CLEANUP FUND.
[FA5)
No equivalent provision. SECTION _.13. Subsections (a) and (h) through (k), Section SECTION 25.13. Same as House version.
89.086, Natural Resources Code, are amended as follows:
64 11.I48.310
Senate Bill 1811
(a) A person with a legal or equitable ownership or security

interest in well-site equipment or hydrocarbons disposed of
under Section 89.085 [aft"is ea~e] may make a claim against
the oil and gas regulation and [ail Hel~] cleanup fund unless
an element of the transaction giving rise to the interest occurs
after the commission forecloses its statutory lien under
Section 89.083.
(h) The commission shall suspend an amount of money in the
oil and gas regulation and [ail HeM] cleanup fund equal to the
amount of the claim until the claim is finally resolved. If the
provisions of Subsection (k) [af t"is seelieR] prevent
suspension of the full amount of the claim, the commission
shall treat the claim as two consecutively filed claims, one in
the amount of funds available for suspension and the other in
the remaining amount of the claim.
(i) A claim made by or on behalf of the operator or a
nonoperator of a well or a successor to the rights of the
operator or nonoperator is subject to a ratable deduction from
the proceeds or credit received for the well-site equipment to
cover the costs incurred by the commission in removing the
equipment or hydrocarbons from the well or in transporting,
storing, or disposing of the equipment or hydrocarbons. A
claim made by a person who is not an operator or nonoperator
is subject to a ratable deduction for the costs incurred by the
commission in removing the equipment from the well. If a
claimant is a person who is responsible under law or
commission rules for plugging the well or cleaning up
pollution originating on the lease or if the claimant owes a
penalty assessed by the commission or a court for a violation
of a commission rule or order, the commission may recoup
from or offset against a valid claim an expense incurred by the
oil and gas regulation and [ail Hel~] cleanup fund that is not
otherwise reimbursed or any penalties owed. An amount
65 11.148.310
•
Senate Bill 1811
•

recouped from, deducted from, or offset against a claim under
this subsection shall be treated as an invalid portion of the
claim and shall remain suspended in the oil and gas regulation
and [eil Hele] cleanup fund in the manner provided by
Subsection (j) [eflllis seelieA].
(j) If the commission finds that a claim is valid in whole or in
part, the commission shall pay the valid portion of the claim
from the suspended amount in the oil and gas regulation and
[eil Hele] cleanup fund not later than the 30th day after the
date of the commission's decision. If the commission finds
that a claim is invalid in whole or in part, the commission
shall continue to suspend in the oil and gas regulation and
[eil Hele] cleanup fund an amount equal to the invalid portion
of the claim until the period during which the commission's
decision may be appealed has expired or, if appealed, during
the period the case is under judicial review. If on appeal the
district court finds the claim valid in whole or in part, the
commission shall pay the valid portion of the claim from the
suspended amount in the oil and gas regulation and [eil Hele]
cleanup fund not later than 30 days after the date the court's
judgment becomes unappealable. On the date the
commission's decision is not subject to judicial review, the
commission shall release from the suspended amount in the
oil and gas regulation and [eil Held] cleanup fund the amount
of the claim held to be invalid.
(k) If the aggregate of claims paid and money suspended that
relates to well-site equipment or hydrocarbons from a
particular well equals the total of the actual proceeds and
credit realized from the disposition of that equipment or those
hydrocarbons, the oil and gas regulation and [eil Held]
cleanup fund is not liable for any subsequently filed claims
that relate to the same equipment or hydrocarbons unless and
until the commission releases from the suspended amount
66 11.148.310
Senate Bill 1811
money derived from the disposition of that equipment or those

hydrocarbons. If the commission releases money, then the
commission shall suspend money in the amount of
subsequently filed claims in the order offiling. [FA5]
No equivalent provision. SECTION _.14. Subsection (b), Section 89.121, Natural SECTION 25.14. Same as House version.
(b) Civil penalties collected for violations of this chapter or of
rules relating to plugging that are adopted under this code
shall be deposited in the general revenue [stille eil fieltl
eleaRlIll] fund. [FA5]
No equivalent provision. SECTION .15. Subsection (c), Section 91.1013, Natural SECTION 25.15. Same as House version.
(c) Fees collected under this section shall be deposited in the
oil and gas regulation and [slale eil fieltl] cleanup fund. [FA5]
No equivalent provision. SECTION _.16. Section 91.108, Natural Resources Code, is SECTION 25.16. Same as House version.
amended as follows:
Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the
refund provisions of Section 91.1 091, if applicable, proceeds
from bonds and other financial security required pursuant to
this chapter and benefits under well-specific plugging
insurance policies described by Section 91. I 04(c) that are paid
to the state as contingent beneficiary of the policies shall be
deposited in the oil and gas regulation and [eil fieltl] cleanup
fund and, notwithstanding Sections 81.068 [~] and
91.113, may be used only for actual well plugging and surface
remediation. [FAS]
No equivalent provision. SECTION .17. Subsection (a), Section 91.109, Natural SECTION 25.17. Same as House version.
(a) A person applying for or acting under a commission permit '.
67 11.148.310
•
Senate Bill 1811
•
to store, handle, treat, reclaim, or dispose of oil and gas waste

may be required by the commission to maintain a performance
bond or other form of financial security conditioned that the
permittee will operate and close the storage, handling,
treatment, reclamation, or disposal site in accordance with
state law, commission rules, and the permit to operate the site.
However, this section does not authorize the commission to
require a bond or other form of financial security for saltwater
disposal pits, emergency saltwater storage pits (including
blow-down pits), collecting pits, or skimming pits provided
that such pits are used in conjunction with the operation of an
individual oil or gas lease. Subject to the refund provisions of
Section 91.1091 ref this eelle], proceeds from any bond or
other form of financial security required by this section shall
be placed in the oil and gas regulation and [eil Helll] cleanup
fund. Each bond or other form of financial security shall be
renewed and continued in effect until the conditions have been
met or release is authorized by the commission. [FAS]
No equivalent provision. SECTION _.18. Subsections (a) and (f), Section 91.113, SECTION 25.18. Same as House version.
(a) If oil and gas wastes or other substances or materials
regulated by the commission under Section 91.101 are causing
or are likely to cause the pollution of surface or subsurface
water, the commission, through its employees or agents, may
use money in the oil and gas regulation and [eil Helll] cleanup
fund to conduct a site investigation or environmental
assessment or control or clean up the oil and gas wastes or
other substances or materials if ...
(f) If the commission conducts a site investigation or
environmental assessment or controls or cleans up oil and gas
wastes or other substances or materials under this section, the
commission may recover all costs incurred by the commission
68 11.148.310
Senate Bill 1811

from any person who was required by law, rules adopted by
the commission, or a valid order of the commission to control
or clean up the oil and gas wastes or other substances or
materials. The commission by order may require the person to
reimburse the commission for those costs or may request the
attorney general to file suit against the person to recover those
costs. At the request of the commission, the attorney general
may file suit to enforce an order issued by the commission
under this subsection. A suit under this subsection may be
filed in any court of competent jurisdiction in Travis County.
Costs recovered under this subsection shall be deposited to the
oil and gas regulation and [eil field) cleanup fund. [FA5)
No equivalent provision. SECTION .19. Subsection (c), Section 91.264, Natural SECTION 25. I9. Same as House version.
(c) A penalty collected under this section shall be deposited to
the credit of the general revenue [eil Held elesRlIll] fund
[seeallRt). [FA5]
No equivalent provision. SECTION _.20. Subsection (b), Section 91.457, Natural SECTION 25.20. Same as House version.
(b) If a person ordered to close a saltwater disposal pit under
Subsection (a) [aftkis seetiaR) fails or refuses to close the pit
in compl iance with the commission's order and rules, the
commission may close the pit using money from the oil and
gas regulation and [ail Held) cleanup fund and may direct the
attorney general to file suits in any courts of competent
jurisdiction in Travis County to recover applicable penalties
and the costs incurred by the commission in closing the
saltwater disposal pit. [FAS]
No equivalent provision. SECTION .21. Subsection (c), Section 91.459, Natural

SECTION 25.21. Same as House version. ..
69 11.148.3 10
•
Senate Bill 1811
•
(c) Any [~eAalties er] costs recovered by the attorney general

under this subchapter shall be deposited in the oil and gas
regulation and [eil fie lEi] cleanup fund. [FA5]
No equivalent provision. SECTION _.22. Subsection (e), Section 91.605, Natural SECTION 25.22. Same as House version.
(e) The fees collected under this section shall be deposited in
the oil and gas regulation and [ail fieJEl] cleanup fund. [FA5]
No equivalent provision. SECTION _.23. Subsection (e), Section 91.654, Natural SECTION 25.23. Same as House version.
(e) Fees collected under this section shall be deposited to the
credit of the oil and gas regulation and [ail fielEl] cleanup fund
under Section 81.067 [9h-J..I..I.]. [FA5]
No equivalent provision. SECTION _.24. Subsection (b), Section 91.707, Natural SECTION. 25.24. Same 8S House version.
(b) Fees collected under this section shall be deposited to the
oil and gas regulation and [ail fielEl] cleanup fund. [FA5]
No equivalent provision. SECTION _.25. The heading to Section 121.211, Utilities SECTION 25.25. Same as House version.
Sec. 121.211. PIPELINE SAFETY AND REGULATORY
FEES. [FA5]
No equivalent provision. SECTION _.26. Subsections (a) through (e) and (h), Section SECTION 25.26. Same as House version except in (c) omits
121.21 I, Utilities Code, are amended as follows: provision prohibiting more than five cents of the annual one
(a) The railroad commission by rule may adopt .!! [11ft dollar service line fee being used to fund the agency's
iAs~eetiaA] fee to be assessed annually against operators of regulato!)' program..
natural gas distribution pipelines and their pipeline facilities
and natural gas master metered pipelines and their pipeline
facilities subject to this title [sR&jltar].
70 11.148.310
Senate Bill 1811

(b) The railroad commission by rule shall establish the method
by which the fee will be calculated and assessed. In adopting a
fee structure, the railroad commission may consider any
factors necessary to provide for the equitable allocation
among operators of the costs of administering the railroad
commission's pipeline safety and regulatory program under
this title [e~aflteF].
(c) The total amount of fees estimated to be collected under
rules adopted by the railroad commission under this section
may not exceed the amount estimated by the railroad
commission to be necessary to recover the costs of
administering the railroad commission's pipeline safety and
regulatory program under this title [e~aflteF], excluding costs
that are fully funded by federal sources. No more than five
cents of the annual one dollar service line fee may be used to
fund the agency's regulatorv program.
(d) The commission may assess each operator of a natural gas
distribution system subject to this title [e~8flteF] an annual
[iasfleetiea] fee not to exceed one dollar for each service line
reported by the system on the Distribution Annual Report,
Form RSPA F7100.1-1, due on March 15 of each year. The
fee is due March IS of each year.
(e) The railroad commission may assess each operator of a
natural gas master metered system subject to this title
[e~aflteF] an annual [iasfleetieR] fee not to exceed $\00 for
each master metered system. The fee is due June 30 of each
year.
(h) A fee collected under this section shall be deposited to the
credit of the general revenue fund to be used for the pipeline
safety and regulatory program. [FA5,FA7]
No equivalent provision. SECTION _.27. Section 29.015, Water Code, is amended as SECTION 25.27. Same as House version.
follows:
71 11.148.310
,
Senate Bill 1811
•
Sec. 29.015. APPLICATION FEE. With each application for

issuance, renewal, or material amendment of a permit, the
applicant shall submit to the railroad commission a
nonrefundable fee of $100. Fees collected under this section
shall be deposited in the oil and gas regulation and [eil Bel~]
cleanup fund. [FA5]
No equivalent provision. SECTION .28. The following provisions of the Natural SECTION 25.28. Same as House version.
Resources Code are repealed:
(I) Section 91.111; and
(2) Section 91.112. [FA5]
No equivalent provision. SECTION _.29. On the effective date of this article: SECTION 25.29. Same as House version.
(I) the oil-field cleanup fund is abolished;
(2) any money remaining in the oil-field cleanup fund is
transferred to the oil and gas regulation and cleanup fund;
(3) any claim against the oil-field cleanup fund is transferred
to the oil and gas regulation and cleanup fund; and
(4) any amount required to be deposited to the credit of the
oil-field cleanup fund shall be deposited to the credit of the oil
and gas regulation and cleanup fund. [F A5]
No equivalent provision. ARTICLE _ CORRECTIONAL MANAGED HEALTH ARTICLE 53. Same as House version.
CARE [FA8]
No equivalent provision. SECTION _. Section 50 I. 133(a), Government Code, is SECTION 53.01. Section 501.133(a), Government Code, is
amended as follows: amended as follows:
(a) The committee consists of the' foJlowirigsix [fiffle] (a) The committee consists of five voting [ftiflefmeml>ers and
members [8~fJaiRteel as faHeY/5]: D'ne non~voting m~mber [SfJfJSiRtea as felle'Ns]:
(I) rn>(l'rllembers employed fuJI-time by the department, at (I) one member [t''';'13 RlemlieFsj employed, fuJI-time by the
ieast one: ofwhoTii ,is a physician, appointed by the executive department, [at least' EiRe af y.~keffi is" ~ f'R,.~.i~.ian,] appointed
director; by the executive director;
(2) '["'7;8' R:le'fR'~e'~ '~ffi}31e)'eEl -ftill '~l~e: ~~: 'Th"e ~tJHi~ie~it5< e'f (2) one member who 'is a physician'[k'",il memlle"s] employed
72 11.148.310
Senate Bill 1811
Teues' ~4eEli8al_:8'F8ReR ·af"<;;al.\reste~, at -ieaSt '8Rs';'s"{';,ihs"Rl""is"'8

f ftiilctime by The University of Texas Medical Bmrich at
~RysieiaR, a~J3eiR~e8. e~' t,Jie J3fesi8~fit -eftke ffieEli~al eFaRe~; Galveston,: [at ',least eRe:ef 'A'H,~ffl is' 8. f3H~:'sieiaFi,] ~ppointe.d by
the president of the medical brarich;
[(3) w.;emembeFs'e"'~le~;e8flilltimib~' die' Tellas"Teeh (3) one ml:D1bei' who is a jihysician[iY,;e'iR~mbeFs3 employed
URiveFsi~!. J.iea1t~··gej~·Re_eS.GeHter,'afle'as.t ~R~- ~f.~~e~· i,s's full-tim«;"·bY,Jhe_TexasTech University Health Science$
'J3,I=t)!s~eiaAJ .BJ3fJ~jRteEl.e~· the _~J:,esjel~~t sf t~~ HR.i\~'~isit)·;'·a~~ Center, [at lea~t,eAe ~fy,'llemisii~1l)'sieiaA;]appoirlted!>Ythe
president of the tiniversi\Y;and
[f41] ihre~ public members appointed by the governor who are (4) tWo [~] public members appointed by the governor
not affiliated with the department or with any entity with who are not affiliated with the department or with any entity
which the committee has contracted to provide health care with which the committee has contracted to provide health
services under this chapter, at least two of whom are care services under this chapter, at least Qill< [Woe] of whom is
physicians: and [afe]licensedto practice medicine inthis state: and
(3) the state Medicaid director. to serve as an ex officio, (5) the state Medicaid director. to serve as an ex officio,
nonvoting member [lieeRse~,te. fl~etiee meeieiR'e iR. lAi§: nonvoting member.
_ ] . [FA8]
No equivalent provision. SECTION . Section 501.135(b), Government Code, is SECTION 53.02. Same as House version.
amended as follows:
(b) A person may not be an appointed [a] member of the
committee and may not be a committee employee employed
in a "bona fide executive, administrative, or professional
capacity," as that phrase is used for purposes of establishing
an exemption to the overtime provisions of the federal Fair
Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.)
and its subsequent amendments if:
(I) the person is an officer, employee, or paid consultant of a '
Texas trade association in the field of health care or health
care services; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of health
care or health care services. [FA8]
No equivalent provision. SECTION _ Section 501.136, Government Code, is SECTION 53.03. Section 501.136, Government Code, is
73 11.148.310
Senate Bill 1811

amended as follows: amended as follows:
Sec. 501.136. TERMS OF OFFICE. Sec. 501.136. TERMS OF OFFICE FORPOSLIC:
Committee members appointed by the governor serve MEMBERS. Committee members appointed by the governor
staggered six-y~ar terms, with the term of one of those serve staggered four-year [si!. )'ear] terms, with the term of
members expiring on February I of each odd-numbered year. one of those members expiring on February I of each odd-
Commirtee:[Otller ,e8RuRitlee] members appoilltedby:the numbered year. Other committee members serve at the will of
executive"direct6r serve at the will of the executive director the appointing official or until termination of the member's
[aJ'lJ'l8iR~iRg ,,8ffi~i~li or until termination of the member's employment with the eiiti,tY. the (I1emberr~pre'sentS.
employment with the demirtment: [~~~il);, ,iIle,', Rl~~,eer
represeiits]. [FA8]
No equivalent provision. SECTION _. Section 501.137, Government Code, is Same as Senate version.
amended as follows:
Sec. 501.137. PRESIDING OFFICER. The governor shall
designate a public member of the committee who is J!
physician [lieeRseEi te fJFaetiee ffieaieiRe iR tHis state] as
presiding officer. The presiding officer serves in that capacity
at the will ofthe governor. [FA8]
No equivalent provision. SECTION _' Section 501.142, Government Code, is Same as Senate version.
amended as follows:
Sec. 501.142. ADMINISTRATION; PERSONNEL. The
committee may hire a managed health care administrator, who
may be familiar with health care rate structures and may
employ personnel necessary for the administration of the
committee's duties. The committee shall pay necessary costs
for its operation, including costs of hiring the managed health
care administrator and other personnel, from funds
appropriated by the legislature to the department for
correctional health care. [FA8]
No equivalent provision. SECTION _. Section 501.147, Government Code, is SECTION 53.04. Section 501.147, Government Code, is
amended by amending Subsection (a) and adding Subsections amended as follows:
74 11.148.310
Senate Bill 1811

(e) and (f) as follows: Sec. . 501.147., DEPARTMENT', [COi>:4MITrg~l
AUTHORITY TO CONTRACT , '
(a) The 80mminee may enter into a contract on,'behalf of the (a) The department [eeRlRlitlee] may enter into a contract [eft
department to fully implement the managed health care plan behalf sf ihe lle~BltmeAll to fully implement the managed
under this su bchapter. A contract entered into under this health care plan under this subchapter. A contract entered into
subsection must~ under this subsection must include provisions necessary to
ill include provisions necessary to ensure that The University ensure that The University of Texas Medical Branch at
of Texas Medical Branch at Galveston is eligible for and Galveston is eligible for and makes reasonable efforts to
makes reasonable efforts to participate in the purchase of participate in the purchase of prescription drugs under Section
prescription drugs under Section 340B, Public Health Service 340B, Public Health Service Act (42 U.S.C. Section 256bt
Act (42 U.S.C. Section 256b); and
(2) require' the heaith 'care' provider' to receivellavnientfor
services' on it capitated. fee-forcservice. or contracted basis.
(li)The~departmenf[eeAlmitte83 ,may[, in allllilien ie
J3FevieiRg sep"iees t8..tl:le ElefJ.8AiRleRt;). contract with:'.othei
govemmentai 'or nongovernmentiilentitiesfor similar health
care services and integrate those services into'the'managed
health' care provider network.
(8) In contracting ,for impiemenUllion :of.the managed health
care plan, the departnient [esRlffiiiteeJ. to theeictent possible,
shall, integiate the managed health care provider network with
thepublic. m~djCal,~chools ~rt1Jis ,statel1l14 the component and
affiliated' tiospitalsof those:rnedicalschookThe contract
must 8uthoriieTtie University of Texas 'Medi~IBraiich at
Galveston to coritracidirectly with the Texas Tech University
Health: Si:ieni:es:Cenie~ Jor, the provision of', health !lare
servi8es~ 'The Texas, Tecti University Health Sciences Center
shall cooperate with 'The Uni~er$itY ofTexlis Medical Branch
at Galveston in its effortS to participate in the purchase of
preScription drugs underSeCtiori3~OB, PublicHealthSej-yices
Act (42. U.S.C.SectioIl256b).
(d}Forservicesthatttiepubli{llledicaC sch601~. and their
ctiinponents ',and" iiffiliates. cannot' provide; ,the. department "
75 11.148.310
Senate BiI11811
..
[llsRiffiittee]' shail:iriitiatea:competiti~e'
biddingprbcess Yo~
conlracij with'other:providers (()r~ril~edic'alcare to persons
confined bYlhe department.
as
(ejThe committee shaH ti&eac!iori necessary ioerisure that (e) The''Clepartl11ent. iti coopeniii6nwith'the committee,maY
the committee contracts'. only with an entity that can provide 'contract \Vithan individmil or firm :for a biennial review of,
services within the amount appropriatedfcir thosepurooses by and reportcoricerning.expend itures.under the managed healih
the General AppropriatiorisAct; care plan; Thereviewrriust be conduCted byanindividualoi
<0 A'conitact entered into underthis:secHonmust anow'the firm experienced in a'udiiing the state'sMedicaid expenditures
cOIhinittee' access tei:aJl'ofthe .contracting entity's· financial and other rriedieaFexpendiiUres: Not later than September I of
records and writtenjlolicy 'standards ·thai relate to any inmate eacheven~numberedyear; the department shall submit 'a copy
health care issiJe or concern, [FA8] of a report under this section to the health care providers that
are' pari·or·the· managed" health <care." provider network
established under this subchapter. the Legislative Budget
Board; thegovemor'. and the .lieutenant governor. and 'the
'speaker' of the house of representatives:
No equivalent provision, SECTION _. Section 501.148, Government Code, is SECTION 53.05. Section 501.148, Government Code, is
amended by amending Subsection (a) and adding Subsections amended by amending Subsection (a) and adding Subsections
(a-I) and (e) as follows: (a-I) and (e) as foHows:
(a) The committee shail: (a) The committeerriay [$aJI1:
(J) develop statewide policies for the delivery of correctional (I) develop statewide policies for the delivery of correctional
health care; health care;
(2) n\airitain coniractSfor healthcarc!servicesir\':'!:Orisultati9n (2) [ffi8iRt~iR e~fttf8~t.5·:'ieF·-ke_B~dl e~fe -se'A'i~es 1ft 'e~~·~iii-~~8·~
wiihlhe department and the health care 'providers; lsi.tI=r tke r:f~paFHReRt 8~e. die .tlea.lt~ e~e pFeviEl~FS;
(3) communicate with the department and the legislature ~ communicate with the department and the legislature
regarding the financial needs of the correctional health care regarding the financial needs of the correctional health care
system; .. , " ,y . . ' ,. " , '" ",'.' .. " system; '. ,.. . .' . ". »'." ' "."
(4) allocate funding, made ,available 'through', legislativ~ ill [(4) all~eate fYRetiRg meete ·'availaele·: ~t:~Mgfl .Iegi,slati... ~
appropriations for correctional healthcare; 8flPF8ffriat1eRs fer eeffeeJieRaI.~ealtli·eefe;
(5) monitor the expenditures of The University of Texas ~ in conjunction with the department, monitor the
Medical Branch at Galveston and the Texas Tech University expenditures of The University of Texas Medical Branch at
Health Sciences Center to ensure that those expenditures Galveston and the Texas Tech University Health Sciences
comply with applicable statutory and contractual Center to ensure that those expenditures comply with
76 11.148.310
Senate Bill 1811
requirements; applicable statutory and contractual requirements;

(6) serve as a dispute resolution forum, and final'authciritY ill [~) serve as a dispute resolution forum in the event of a
regarding standards of care. in the event of a disagreement disagreement relating to inmate health care services between:
relating to inmate health care services between:
(A) the department and the health care providers; or (A) the department and the health care providers; or
(B) The University of Texas Medical Branch at Galveston and (B) The University of Texas Medical Branch at Galveston and
the Texas Tech University Health Sciences Center; the Texas Tech University Health Sciences Center;
(7) address problems found through monitoring activities by ill [f7* address problems found through monitoring activities
the department and health care providers, including requiring by the department and health care providers, including
corrective action if care does not meet expectations as requiring corrective action if care does not meet expectations
determined by those monitoring activities; as determined by those monitoring activities;
(8) identify and address long-term needs of the correctional ill [fSH identify and address long-term needs of the
health care system; and correctional health care system; and
(9) report to the Texas Board of Criminal Justice at the board's ill [f9j} report to the Texas Board of Criminal Justice at the
regularly scheduled meeting each quarter on the committee's board's regularly scheduled meeting each quarter on the
policy decisions, the financial status of the correctional health committee's policy recommendations [E1eeisiens3, the financial
care system, and corrective actions taken by or required of the status of the correctional health care system, and corrective
department or the health care providers. actions taken by or required of the department or the health
care providers.
n
(a" the corillnittee annually shall developimdsubmiticithe
department. the governor. and the Legislative Budget Board a
proposed budgei for the performance of the committee's duties
andi'esponsibilities under this subchapter. Except to the extent
the budget' is modified bv the budget execution process under
Chapter3I7,thedepartment shall provide funding to the
committee in accordance with the budget.
(e) In addition to contracting under Subsection {cfor (dfthe
committee may contract with'lm independent 'certified public
accountant or other independent qualified individual with
specific health care auditing and billing 'expertise to peri'onna
complete audit of or aCtuarial analvsis concerning allorimy
partof the managed health care system and shall contractwith
an independent qualified individual to conducl'im annual audit ,.
77 11.148.310
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ofilllmedi2aTbiHirigperformed by' ihe' heaiihcareprovlders.

[FAS]
No equivalent provision. No equivalent provision. SECTION 53.06. (a) The correctional managed health care
committee established under Section 501.133, Government
Code, as that section existed before amendment by this article,
is abolished effective November 30, 201 I.
(b) An appointing official under Section 501.133, Government
Code, shall appoint the members of the correctional managed
health care committee under Section 501.133, Government
Code, as amended by this Act, not later than November 3 I,
2011. The governor shall appoint one public member to serve
a term that expires February 1,2013, and one public member
to serve a term that expires February 1,2015
(c) The term of a person who is serving as a member of the
correctional managed health care committee immediately
before the abolition of that board under Subsection (a) of this
section expires on November 30, 201 I. Such a person is
eligible for appointment by an appointing official to the new
committee under Section 501.133, Government Code, as
amended by this article.
No equivalent provision. SECTION _. Subchapter E, Chapter 501, Government Code, Same as Senate version.
is amended by adding Section 501.14SI, STUDY; ANNUAL
REPORT. [FAS]
No equivalent provision. SECTION . Not later than December 31, 2012, the Same as Senate version.
Correctional Managed Health Care Committee shall submit to
the Texas Department of Criminal Justice, the governor, and
the Legislative Budget Board the first report required by
Section 501.14SI, Government Code, as added by this Act.
[FAS]
7S 11.l4S310
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No equivalent provision. ARTICLE _. FISCAL MATIERS REGARDING LEASING ARTICLE 26. Same as House version.
CERTAIN STATE FACILITIES
[FA9,FA 1O,FA II ,FA J2,FA 13]
No equivalent provision. SECTION _.01. The heading to Section 2165.2035, SECTION 26.0 I. Same as House version.
Sec. 2165.2035. LEASE OF SPACE IN STATE-OWNED
PARKING LOTS AND GARAGES: USE AFTER HOURS.
[FA9,FA10,FAI I,FA 12,FAI3]
No equivalent provision. SECTION _.02. Subchapter E, Chapter 2165, Government SECTION 26.02. Same as House version.
Code, is amended by adding Sections 2165.204, 2165.2045,
and 2165.2046 as follows:
PARKING LOTS AND GARAGES: EXCESS INDIVIDUAL
PARKING SPACES. (a) The commission may lease to a
private individual an individual parking space in a state-
owned parking lot or garage located in the cilY of Austin that
the commission determines is not needed 10 accommodate the
regular parking requirements of state employees who work
near the lot or garage and visitors to nearby state government
offices.
(b) Money received from a lease under this section shall be
deposited to the credit of the general revenue fund.
(c) In leasing a parking space under Subsection (a). the
commission must ensure that the lease does not restrict uses
for parking lots and garages developed under Section
2165.2035. including special event parking related to
institutions of higher education.
fd) Tn leasing or renewing a lease for a parking space under
Subsection (a). the commission shall give preference to an
individual who is currently leasing or previously leased the
parking space.
79 11.148.310
Senate Bill 1811

PARKING LOTS AND GARAGES: EXCESS BLOCKS OF
PARKING SPACE. la) The commission may lease to an
institution of higher education or a local government all or a
significant block of a state-owned parking lot or garage
located in the city of Austin that the commission determines is
not needed to accommodate the regular parking requirements
of state employees who work near the lot or garage and
visitors to nearby state government offices.
Ib) Money received from a lease under this section shall be
deposited to the credit of the general revenue fund.
Ic) In leasing all or a block of a state-owned parking lot or
garage under Subsection la), the commission must ensure that
the lease does not restrict uses for parking Jots and garages
developed under Section 2165.2035. including special event
parking related to institutions of higher education.
Id) In leasing or renewing a lease for all or a block of a state-
owned parking lot or garage under Subsection (al. the
commission shall give preference to an entity that is currently
leasing or previously leased the lot or garage or a block of the
lot or garage.
Sec. 2165.2046. REPORTS ON PARKING PROGRAMS. On
or before October I of each even-numbered year, the
commission shall submit a report to the Legislative Budget
Board describing the effectiveness of parking programs
developed by the commission under this subchapter. The
report must. at a minimum, include:
(J) the yearly revenue generated by the programs:
(2) the yearlv administrative and enforcement costs of each
program:
(3) yearlv usage statistics for each program: and
(4) initiatives and suggestions by the commission to:
(A) modify administration of the programs: and
80 11.148.310
Senate Bill 1811

(B) increase revenue generated by the programs. [FA9,
,FAlO,FAll,FAI2,FAI3]
No equivalent provision. SECTION _.03. This article takes effect immediately if this SECTION 26.03. Same as House version.
each house, as provided by Section 39, Article Ill, Texas
2011. [FA9]
No equivalent provision. ARTICLE _. FISCAL MATTERS RELATING TO ARTICLE 27. Same as House version.
SECRETARY OF STATE [FA9,FAIO,FAII,FAI2,FAI3]
No equivalent provision. SECTION _.oI. Section 405.014, Government Code, is SECTION 27.01. Same as House version.
amended as follows:
Sec. 405.014. ACTS OF THE LEGISLATURE. Requires the
secretary of state, as soon as practicable after the closing of
each session of the legislature, to publish and maintain
electronicaiiy the bills enacted at that session. Requires the
electronic publication to be:
(I) indexed by bill number and assigned chapter number for
each bill; and
(2) made available by an electronic link on the secretary of
state's generally accessible Internet website.
[FA9,FAIO,FAI I,FAI2,FA 13]
No equivalent provision. SECTION _.02. Subchapter B, Chapter 2158, Government SECTION 27.02. Same as House version.
Code, is repealed. [FA9,FAIO,FAI I,FAI2,FAI3]
No equivalent provision. SECTION _.03. The change in law made by this article does SECTION 27.03. Same as House version.
not apply to a contract for the publication of the laws of this
state entered into before the effective date of this article. ..
81 11.148.310
Senate Bill 1811
.'
[FA9,FAIO,FAII,FAI2,FAI3]
each house, as provided by Section 39, Article JIl, Texas
201 I. [FA9,FA10,FAI I,FAI2,FA13]
No equivalent provision. ARTICLE _ FISCAL MATTERS REGARDING ARTICLE 28. Same as House version.
ATTORNEY GENERAL [FA9,FAIO,FAI l,FAI2,FAI3]
No equivalent provision. SECTION _.01. Section 402.006, Government Code, is SECTION 28.0 I. Same as House version.
amended by adding Subsection (e) as follows:
(e) The attorney general may charge a reasonable fee for the
electronic filing of a document.
[FA9,FA IO,FA I I,FAI2,FAI3]
No equivalent provision. SECTION _.02. The heading to Section 402.0212, SECTION 28.02. Same as House version.
Sec. 402.0212. PROVISION OF LEGAL SERVICES--
OUTSIDE COUNSEL: FEES. [FA9,FAIO,FAll,FAI2,FAI3]
amended by amending Subsections (b) and (c) and adding
Subsections (d), (e), and (I) as follows:
(b) An invoice submitted to a state agency under a contract for
legal services as described by Subsection (a) must be
reviewed by the attorney general to determine whether the
invoice is eligible for oayment.
(c) An attorney or law firm must pay an administrative fee to
the attorney general for the review described in Subsection (b)
82 11.148.310
Senate BiJl1811

when entering into a contract to provide legal services to a
state agency.
@ For purposes of this section, the functions of a hearing
examiner, administrative law judge, or other quasi-judicial
officer are not considered legal services.
~ [W] This section shall not apply to the Texas Turnpike
Authority division of the Texas Department of Transportation.
m The attornev general may adopt rules as necessary to
implement and administer this section.
[FA9,FAI0,FAII,FAI2,FAI3]
No equivalent provision. SECTION _.04. Section 371.051, Transportation Code, is SECTION 28.04. Same as House version,
amended as follows:
Sec. 371.051. ATIORNEY GENERAL REVIEW AND
EXAMINATION FEE. ~ A toll project entity may not enter
into a comprehensive development agreement unless the
attorney general reviews the proposed agreement and
determines that it is legally sufficient.
Cb) A toll project entity shall pay a nonrefundable examination
fee to the attorney general on submitting a proposed
comprehensive development agreement for review. At the
time the examination fee is paid, the toll project entity shall
also submit for review a complete transcript of proceedings
related to the comprehensive development agreement.
Cc) If the toll project entity submits multiple proposed
comprehensive development agreements relating to the same
toll project for review, the entity shall pay the examination fee
under Subsection Cb) for each proposed comprehensive
development agreement.
Cd) The attorney general shall provide a legal sufficiency
determination not later than the 60th business day after the
date the examination fee and transcript of the proceedings
required under Subsection Cb) are received. If the attorney
..
83 11.148.310
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..'
general cannot provide a legal sufficiency determination

within the 6o-business-day period, the attorney general shall
notify the toll project entity in writing of the reason for the
delay and may extend the review period for not more than 30
business days.
(el After the attorney general issues a legal sufficiency
determination, a toll project entity may supplement the
transcript of proceedings or amend the comprehensive
development agreement to facilitate a redetermination by the
attornev general of the prior legal sufficiency determination
issued under this section.
(f) The toll project entity may collect or seek reimbursement
of the examination fee under Subsection (bl from the private
participant.
(gl The attornev general by rule shall set the examination fee
required under Subsection (bl in a reasonable amount and may
adopt other rules as necessary to implement this section. The
fee may not be set in an amount that is determined by a
percentage of the cost of the toll project. The amount of the
fee may not exceed reasonable attorney's fees charged for
similar legal services in the private sector.
[FA9,FA 10,FAIl,FA 12,FAI3]
No equivalent provision. SECTION .05. (a) Amends Section 81.054, Government Same as Senate version.
Code, by adding Subsection (m).
No equivalent provision. SECTION _.06. The fee prescribed by Section 402.006, SECTION 28.05. Same as House version.
Government Code, as amended by this article, applies only to
a document electronically submitted to the office of the
attorney general on or after the effective date of this article.
[FA9,FAI O,FA II,FAI2,FAI3]
84 11.148.310
Senate Bill 1811
Government Code, as amended by this article, applies only to
invoices for legal services submitted to the office of the
attorney general for review on or after the effective date of
this article. [FA9,FAIO,FAII,FAI2,FA13]
Transportation Code, as amended by this article, applies only
to a comprehensive development agreement submitted to the
office of the attorney general on or after the effective date of
this article. [FA9,FAJO,FAII,FAJ2,FAI3]
No equivalent provision. SECTION _.09. The changes in law made by this article SECTION 28.08. Same as House version.
apply only to a contract for legal services between a state
agency and a private attorney or Jaw firm entered into on or
after the effective date of this article. A contract for legal
services between a state agency and a private attorney or law
firm entered into before the effective date of this article is
governed by the law in effect at the time the contract was
entered into, and the former law is continued in effect for that
purpose. [FA9,FAIO,FAJ I,FAI2,FAJ3]
No equivalent provision. SECTION _.10. Except as otherwise provided by this article, SECTION 28.09. Same as House version.
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 1Il, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect,
this article takes effect September I, 20 II.
[FA9,FA 10,FAII,FA12,FAI3]
No equivalent provision. ARTICLE _. TEXAS PRESERVATION TRUST FUND ARTICLE 29. Same as House version.
ACCOUNT [FA9,FAIO,FAII,FAI2,FAI3]
85 11.148.310
"
Senate Bill 1811
No equivalent provision. SECTION .01. Subsections (a), (b), and (f), Section SECTION 29.01. Same as House version.
442.0 IS, Government Code, are amended to make
nonsubstantive changes to provisions relating to the Texas
preservation trust fund account, to limit the use of money in
the account to purposes set out in state law, and to authorize
such money to be used to pay the operating expenses of the
Texas Historical Commission. [FA9,FAIO,FAII,FAI2,FA13)
No equivalent provision. SECTION _.02. Subsections (h), (i), G), (k), and (I), Section SECTION 29.02. Same as House version.
442.015, Government Code, are repealed.
[FA9,FAIO,FAII,FAI2,FA13)
No equivalent provision. SECTION _.03. The comptroller of public accounts and the SECTION 29.03. Same as House version.
Texas Historical Commission shall enter into a memorandum
of understanding to facilitate the conversion of assets of the
Texas preservation trust fund account into cash for deposit
into the state treasury using a method that provides for the
lowest amount of revenue loss to the state.
[FA9,FA 10,FAII,FAI2,FA13)
No equivalent provision. SECTION _.04. This article takes effect November 1,2011. SECTION 29.04. Same as House version.
[FA9,FAIO,FAll,FAJ2,FA13)
No equivalent provision. ARTICLE _ FISCAL MATIERS CONCERNING ARTICLE 30. Same as House version.
INFORMATION TECHNOLOGY [FA9, FAJO, FAIl, FAI2,
FA13)
amended as follows:
Sec. 2054.380. FEES.ll!} The department shall set and charge
a fee to each state agency that receives a service from a
statewide technology center in an amount sufficient to cover
86 11.148.310
Senate Bill 1811

the direct and indirect cost of providing the service.
(b) Revenue derived from the collection of fees imoosed
under Subsection (a) may be appropriated to the department
for:
(]) developing statewide information resources technology
policies and planning under this chapter and Chapter 2059:
and
(2) providing shared information resources technology
services under this chapter. [FA9,FA10,FAI I,FAI2,FAI3]
No equivalent provision. SECTION .02. Subsection (d), Section 2157.068, SECTION 30.02. Same as House version.
(d) The department may charge a reasonable administrative
fee to a state agency, political subdivision of this state, or
governmental entity of another state that purchases
commodity items through the department in an amount that is
sufficient to recover costs associated with the administration
of this section. Revenue derived from the collection of fees
imposed under this subsection may be appropriated to the
department for:
(n developing statewide information resources technology
policies and planning under Chapters 2054 and 2059: and
(2) providing shared information resources technology
services under Chapter 2054. [FA9,FAIO,FAJ I,FAI2,FAI3]
No equivalent provision. SECTION _.03. Subsections (a) and (d), Section 2170.057, SECTION 30.03. Same as House version.
Government Code, are amended as follows:
(a) The department shall develop a system of billings and
charges for services provided in operating and administering
the consolidated telecommunications system that allocates the
total state cost to each entity served by the system based on
proportionate usage. The department shall set and charge a fee
to each entity that receives services provided under this
87 11.1.48.310
•
Senate Bill 1811
.
chapter in an amount sufficient to cover the direct and indirect

costs of providing the service. Revenue derived fTom the
collection of fees imposed under this subsection may be
appropriated to the department for:
(I) developing statewide information resources technology
policies and planning under Chapters 2054 and 2059: and
(2) providing:
(A) shared information resources technology services under
Chapter 2054: and
(8) network security services under Chapter 2059.
(d) The department shall maintain in the revolving fund
account sufficient amounts to pay the bills of the consolidated
telecommunications system and the centralized capitol
complex telephone system. [The eefl8FtHleAt 511811 eeFtif')'
8fftel:lRts tRat elLseee tRis 8ffieHRt ta tAe eefJIfllfelleF, eRB the
e8mptreller shall tF8RSfeF tlte e?ieess 8Rl8HRtS 1a tAe ereElit sf
the statewide RetY/8FI:: 813plieatisRs aBaSH"! estaelished &y
Seeti8A 2QaQll.] [FA9,FAIO,FAl I,FAI2,FAJ3]
No equivalent provision. SECTION _,04. This article takes effect immediately if this SECTION 30.04. Same as House version.
each house, as provided by Section 39, Article 1lI, Texas
Constitution, If this Act does not receive the vote necessary
201 I. [FA9,FAIO,FAI I,FAI2,FAJ3]
No equivalent provision, ARTICLE_. STATE DEBT [FA9,FA IO,FAI I,FAI2,FAJ3] ARTICLE 3 I. Same as House version.
No equivalent provision. SECTION _.01. Chapter 123 I, Government Code, is SECTION 3 1.0 I. Same as House version.
amended by adding Subchapter G, LIMIT ON STATE DEBT
PAYABLE FROM GENERAL REVENUE FUND,· as
follows:
Sec. 1231.151. DEFINITIONS. In this subchapter:
88 11.I48.310
Senate Bill 1811
Conference Comm ittee Report

(n "Maximum annual debt service" means the limitation on
annual debt service imposed bv Section 49-j(a), Article III,
Texas Constitution.
(2) "State debt pavable from the general revenue fund" has the
meaning assigned by Section 49-j(b). Article III, Texas
Constitution.
(3) "Unissued debt" means state debt payable from the general
revenue fund that has been authorized but not issued.
Sec. 1231.152. COMPUTAnON OF DEBT LIMIT. 1n
computing the annual debt service in a state fiscal year on
state debt payable from the general revenue fund for purposes
of determining whether additional state debt may be
authorized without exceeding the maximum annual debt
service. the board may employ any assumptions related to
unissued debt that the board determines are necessary to
reflect common or standard debt issuance practices authorized
by law. including assumptions regarding:
(\) interest rates;
(2) debt maturity; and
(3) debt service payment structures.
Sec. 1231.153. REPORT ON COMPUTATION. (a) The
board shall publish during each state fiscal year a report
providing a detailed description of the method used to
compute the annual debt service in that fiscal year on state
debt payable from the general revenue fund for purposes of
determining whether additional state debt may be authorized.
The report must describe;
(n the debt service included in the computation, including
debt service on issued and un issued debt;
(2) the assumptions on which the debt service on unissued
debt was based; and
(3) any other factors required by law that affect the
computation. ..
89 11.148.310
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..
Senate Bill 1811
Cb) The board may publish the report required by this section
as a component of any other report required by law. including
the annual report required by Section 1231.102. or as an
independent report. The board shall make the report available
to the public. [FA9,FAI0,FAI I,FAI2,FAI3]
No equivalent provision. SECTION _.02. The Bond Review Board shall publish the SECTION 31.02 Same as House version.
initial report required by Section 1231.153, Government
Code, as added by this article, during the state fiscal year
beginning September 1,201 I. [FA9,FAIO,FAII,FAI2,FAI3]
No equivalent provision. SECTION _.03. This article takes effect immediately if this SECTION 3 I.03. Same as House version.
201 I. [FA9,FAI0,FAII,FAI2,FAI3]
No equivalent provision. ARTICLE . CONTINUING LEGAL EDUCATION ARTICLE 32. Same as House version.
REQUIREMENTS FOR ATIORNEY EMPLOYED BY
ATIORNEY GENERAL [FA9,FAIO,FAI I,FAI2,FAI3]
amended by adding Subsection (a-I) as follows:
(a-I) The state bar shall credit an attorney licensed in this state
with meeting the minimum continuing legal education
requirements of the state bar for a reporting year if during the
reporting vear the attorney is employed full-time as an
attorney by the office of the attorney general. An attorney
credited for continuing legal education under this subsection
must meet the continuing legal education requirements of the
state bar in legal ethics or professional responsibility. This
subsection expires January 1. 2014.
90 11.148.310
Senate Bill 1811
[FA9,FAI0,FAII,FA 12,FA13]
No equivalent provision. SECTION _.02. Subchapter A, Chapter 402, Government SECTION 32.02. Same as House version.
Sec. 402.010. CONTINUING LEGAL EDUCATION
PROGRAMS. The office of the attorney general shall
recognize. prepare. or administer continuing legal education
programs that meet continuing legal education requirements
imposed under Section 81.113(c) for the attorneys employed
by the office. This section expires January I. 2014.
No equivalent provision. SECTION _.03. Section 81.J 13, Government Code, as SECTION 32.03. Same as House version.
amended by this article, applies only to the requirements for a
continuing legal education compliance year that ends on or
after September I, 2011. The requirements for continuing
legal education for a compliance year that ends before
September J, 2011, are covered by the law and rules in effect
when the compliance year ended, and that law and those rules
are continued in effect for that purpose.
[FA9,FA 10,FA II,FAI2,FA13l
No equivalent provision. ARTICLE _ REGISTRATION FEE AND ARTICLE 33. Same as House version.
REGISTRATION RENEWAL FEE FOR LOBBYISTS
[FA9,FAIO,FA II,FA 12,FA13]
No equivalent provision. SECTION .01. Subsection (c), Section 305.005, SECTION 33.01. Same as House version.
(c) The registration fee and registration renewal fee are:
(I) $150 [$+00] for a registrant employed by an organization
exempt from federal income tax under Section 501(c)(3),{eF1
SOI(c)(4), orSO](cX6). Internal Revenue Code of 1986;
(2) ill [$WI for any person requircd to register solely '.
91 11.148.310
Senate Bill 1811
because the person is required to register under Section

305.0041 [eftllis ellaflter); or
(3) $750 [~) for any other registrant. [FA9,
,FAJO,FAII,FAI2,FA13)
No equivalent provision. ARTICLE _ ASSESSMENT OF PREMIUM ARTICLE 34. Same as House version.
DIFFERENTIAL ON CERTAIN PUBLIC EMPLOYEES
WHO USE TOBACCO [FA9,FAIO,FAII,FAI2,FA13]
No equivalent provision. SECTION _.01. Subchapter G, Chapter 1551, Insurance SECTION 34.0 I. Same as House version.
Sec. 1551.3075. TOBACCO USER PREMIUM
DIFFERENTIAL. (a) The board of trustees shall assess each
participant in a health benefit plan provided under the group
benefits program who uses one or more tobacco products a
tobacco user premium differential. to be paid in monthly
installments. Except as provided by Subsection (b). the board
of trustees shall determine the amount of the monthly
installments of the premium differential.
<b) If the General Appropriations Act for a state fiscal
biennium sets the amount of the monthly installments of the
tobacco user premium differential for that biennium. the board
of trustees shall assess the premium differential during that
biennium in the amount prescribed by the General
Appropriations Act. [FA9,FAIO,FAll,FAI2,FA13)
No equivalent provision. SECTION _.02. Section 1551.314, Insurance Code, is SECTION 34.02. Same as House version.
amended as follows:
Sec. 1551.314. CERTAIN STATE CONTRIBUTIONS
PROHIBITED. Prohibits a state contribution from being made
for or used to pay a tobacco user premium differential
assessed under Section 1551.3075. [FA9, FAI0, FAil, FAI2,
FA 13]
92 11.148.310
Senate Bill 1811

No equivalent provision. SECTION _.03. The board of trustees of the Employees SECTION 34.03. Same as House version.
Retirement System of Texas shall implement the tobacco user
premium differential required under Section 1551.3075,
Insurance Code, as added by this article, not later than January
1,2012. [FA9,FAIO,FAII,FA12,FA13]
No equivalent provision. ARTICLE _. REGIONAL POISON CONTROL CENTER ARTICLE 36. Same as House version.
MANAGEMENT CONTROLS AND EFFICIENCY
[FA9,FA 10,FA II,FAI2,FA13]
No equivalent provision. SECTION _.01. Amends Section 777.001, Health and Safety SECTION 36.01. Same as House version except as follows:
Code, by amending Subsections (a) and (c) and adding
Subsection (d) as follows: [FA9,FAI 0,FAII,FAI2,FA13]
No equivalent provision. (a) The following medical facilities may be [£ili FegieABI Same as Senate version.
seAters feF peiseR eeRtrel are] designated by the Commission
on State Emergencv Communications as the regional poison
control centers forthe state [es fellews]:
(I) The University of Texas Medical Branch at Galveston;
(2) the Dallas County Hospital District/North Texas Poison
Center;
(3) The University of Texas Health Science Center at San
Antonio;
(4) the University Medical Center of EI Paso, EI Paso County
Hospital District;
(5) the Texas Tech University Health Sciences Center at
Amarillo; and
(6) Scott and White Memorial Hospital, Temple, Texas.
No equivalent provision. (c) The Commission on State Emergency Communications (c) Same as House version.
may standardize the operations of and implement management
controls to improve the efficiency of regional poison control
93 11.148.310
Senate BiI11811
•
centers [vete t8 designate a savaRth regisRal SF satellite peiseR

seRtrsl eeRter in Harris CSl::IAty. TAB! fJSiS8R seRtrsl seRter is
sH9jeet ta all ~Fe\tisieRS sf tRis eRa~tef BRei stReF law relating
1a regisRal peiseR BeRtra] aeRters].
No equivalent provision. (d) If the Commission on State Emergency Communications (d) Same as House version.
implements management controls under Subsection (c), the
commission shall submit to the governor and the Legislative
Budget Board a plan for implementing the controls not later
than October 3 I. 201 I. This subsection expires January I.
2013. [FA9,FAIO,FAII,FAI2,FA13]
No equivalent provision. SECTION _.02. Amends Subsection (b), Section 777.008, Same as Senate version.
Health and Safety Code. [FA9,FAIO,FAI I,FAI2,FA13]
ARTICLE 19. AUTHORIZED USES FOR CERTAIN ARTICLE _. Same as Senate version except article heading ARTICLE 37. Same as Senate version.
DEDICATED PERMANENT FUNDS reads AUTHORIZED USES FOR CERTAIN DEDICATED
PERMANENT FUNDS IN STATE TREASURY. [FA9
reverts the text to the Senate Engrossed version.]
SECTION 19.01. Amends Section 403.105, Government SECTION _.01. Same as Senate version. [FA9, FAIO, FAIl, SECTION 37.01. Same as Senate version.
Code, by amending Subsection (b) and adding Subsection (h- FA 12, FA 13 reverts the text to the Senate engrossed version.]
I) as follows:
(b) Makes a conforming change.
(h- I) Authorizes the legislature, notwithstanding the
limitations and requirements of Section 403.1 068, to
appropriate money in the permanent fund for health and
tobacco education and enforcement, including the corpus and
available earnings of the fund determined under Section
403.1 068, to pay the principal of or interest on a bond issued
for the purposes of Section 67, Article JIl, Texas Constitution.
94 11.l48.310
Senate Bill 1811
Section.by-Section Analysis

Specifies that this subsection does not authorize the
appropriation under this subsection of money subject to a
limitation or requirement as described by Subsection (e) that
is not consistent with the use of the money in accordance with
this subsection.
SECTION 19.02. Amends Section 403.1055, Government SECTION _.02. Same as Senate version. [FA9, FAIO, FAI I, SECTION 37.02. Same as Senate version.
Code, by amending Subsection (b) and adding Subsection (b- FA 12, FA 13 reverts the text to the Senate engrossed version.]
I) as follows:
(b) Makes a confonning change.
(b·l) Authorizes the legislature, notwithstanding the
limitations and requirements of Section 403.1068, to
appropriate money in the pennanent fund for children and
public health, including the corpus and available earnings of
the fund detennined under Section 403.1 068, to pay the
principal of or interest on a bond issued for the purposes of
Section 67, Article Ill, Texas Constitution. Specifies that this
subsection does not authorize the appropriation under this
subsection of money subject to a limitation or requirement as
described by Subsection (e) that is not consistent with the use
of the money in accordance with this subsection.
SECTION 19.03. Amends Section 403.106, Government SECTION .03. Same as Senate version. [FA9, FAIO, FAIl, SECTION 37.03. Same as Senate version.
Code, by amending Subsection (b) and adding Subsection (h- FA 12, FA I3 reverts text to the Senate engrossed version.]
1) as follows:
(b) Makes a confonning change.
(h-I) Authorizes the legislature, notwithstanding the
limitations and requirements of Section 403.1 068, to
appropriate money in the pennanent fund for emergency
medical services and trauma care, including the corpus and
available earnings of the fund detennined under Section
403.1068, to pay the principal of or interest on a bond issued
for the purposes of Section 67, Article 111, Texas Constitution.
95 J1.148.310
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Specifies that this subsection does not authorize the

appropriation under this subsection of money subject to a
limitation or requirement as described by Subsection (e) that
is not consistent with the use of the money in accordance with
this subsection.
SECTION 19.04. Article effective date. SECTION _.04. Same as Senate version. [FA9, FA10, FAil, SECTION 37.04. Same as Senate version.
FAI2, FAI3 reverts text to the Senate engrossed version.]
ARTICLE 20. EMPLOYER ENROLLMENT FEE FOR No equivalent provision. ARTICLE 38. Same as Senate version.
PARTICIPATION IN CERTAIN HEALTH BENEFIT
PLANS
SECTION 20.01. Amends Subchapter G, Chapter 1551, No equivalent provision. SECTION 38.01. Same as Senate version.
Insurance Code, by adding Section J55 1.3076, EMPLOYER
ENROLLMENT FEE, as follows:
(a) Requires the board of trustees to assess each employer
whose employees participate in the group benefits program an
employer enrollment fee in an amount not to exceed a
percentage of the employer's total payroll, as determined by
the General Appropriations Act.
(b) Requires the board of trustees to deposit the enrollment
fees to the credit of the employees life, accident, and health
insurance and benefits fund to be used for the purposes
specified by Section 1551.40 I.
ARTICLE 21. LEGISLATIVE BUDGET BOARD No equivalent provision. ARTICLE 45. Same as Senate version.
MEETINGS
SECTION 21.0 I. Section 322.003, Government Code, is No equivalent provision. SECTION 45.01. Section 322.003, Government Code, is
amended by adding Subsection (t) as follo\Vs: ... . amended by adding Subsection (t) as follows:
(f) The board shall hold a public hearing in Novemberof each (f) The board shall hold a public hearing each state fiscal year
96 11.148.310
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state fiscal year to hear a report from the comptroller and to r';<ieivea report from the comptroller and receive invited
receive public testimony regarding the financial condition of testimony regarding the financial condition of this state. The
this state. The report from the comptroller must: report from the comptroller shall' include, io the, 'extent
practicable:
(I) soecify"' for each revenue source included in determining (]) informaiion"on each revenue source included in
the estimate of anticipated revenue for purposes of the most determining the estimate of anticipated revenue for purposes
recent statement required by Section 49a. Article III. Texas of the most recent statement required by Section 49a. Article
Constitution. the total net revenue actually collected from that III, Texas Constitution, and the total net revenue actually
source for the state fiscal year as of the end of the most recent collected from that source for the state fiscal year as ofthe end
state fiscal quarter: of the most recent state fiscal quarter:
(2) compare for the period described by Subdivision (]) the (2) a comparison for the period described bv Subdivision (])
total net revenue collected from each revenue source required of the total net revenue collected from each revenue source
to be specified under that subdivision with the anticipated required to be specified under that subdivision with the
revenue from that source that was included for purposes of anticipated revenue from that source that was included for
determining the estimate of anticipated revenue in the purposes of determining the estimate of anticipated revenue in
statement required by Section 49a, Article III, Texas the statement required by Section 49a. Article III. Texas
Constitution: Constitution:
(3) specify for each state revenue source resulting from a law (3) information'on state revenue sources resulting from a law
taking effect after the comptroller submitted the most recent taking "crect after the comptroller submitted the most recent
statement required bv Section 49a. Article III. Texas statement required bv Section 49a. Article III. Texas
Constitution, the estimated total net revenue collected from Constitution, 'and the estimated total net revenue collected
that source for the state fiscal year as of the end of the most from that source for the state fiscal year as of the end of the
recent state fiscal quarter: most recent state fiscal quarter:
(4) summarize indicators of state economic trends experienced (4) 'a summary of the indicators of state economic trends
since the most recent statement required by Section 49a. experienced since the most recent statement required by
Article Ill. Texas Constitution: and Section 49a. Article III, Texas Constitution: and
(5) summ'arize anticipated state economic trends and the (51 a summarvOf anticipated state economic trends and the
anticipated effect of the trends on state revenue collections. anticipated effect of the trends on state revenue collections.
No equivalent provision. Same as Senate version. SECTION 45.02. Chapter 322, Government Code, is amended
by adding Section 322.008 I as follows:
Sec. 322.0081. BUDGET DOCUMENTS ONLINE. {al The
board shall post on the board's Internet website documents
,.
97 11.148.310
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nrenared by the board that are nrovided 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.
(c) The document must be downloadable and provide data in 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, Government
Code.
ee) The board shall promulgate rules to implement the
provisions ofthis section.
[The conference commillee may have exceeded the limitations
make the final determination on this issue.)
No equivalent provision. ARTICLE _. GENERAL HOUSING MATTERS [FA9, ARTICLE 54. Same as House version.
FAIO, FAil, FAI2, FAl3)
No equivalent provision. SECTION .0 I. Section 481.078, Government Code, is SECTION 54.01. Same as House version except as follows:
amended by amending Subsection (c) and adding Subsections
(d-I) and (d-2)as follows:
No equivalent provision. (c) Except as provided by Subsections [SY9seetieR) (d) and (c) Same as House version.
!!!::l1 the fund may be used only for economic development,
infrastructure development, community development, job
training programs, and business incentives.
No equivalent provision. (d-l> The fund may be used for the Texas homeless housing (d-I) Same as House version.
98 11.148.310
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and services program administered by the Texas Department
of Housing and Community Affairs. Subsections (e- 1), (0,
(g), (h), Ii), and (j) and Section 481.080 do not apply to a
grant awarded for a purnose specified by this subsection.
No equivalent provision, (d-2) The fund may be used for the Jobs and Education for Same as Senate version.
Texans Fund established under Chapter 403, Subsections (e-
I), co. (g), (h), (j), and (j) and Section 481 .080 do not apply to
a grant awarded for a purnose specified by this subsection,
[FA9,FAIO,FAI I,FAI2,FAI3)
No equivalent provision, Same as Senate version. (d-2) Notwithstanding Subsection (e), during the state fiscal
biennium that begins on September I. 2011. the governor
shall use not less than $10 million from the fund for grants
described by Subsection (d-I). This subsection expires
September I. 2013.
imposed on its jurisdiction, but only the presiding officer can
No equivalent provision, SECTION _,02. Section 481.079, Government Code, is SECTION 54,02, Same as House version.
(a-I) For grants awarded for a purpose specified by Section
481.078(d-l), the report must include only the amount and
purnose of each grant. [FA9,FAIO,FAII,FAI2,FAI3)
No equivalent provision. SECTION _,03. Subchapter K, Chapter 2306, Government SECTION 54.03, Same as House version.
Sec. 2306.2585. HOMELESS HOUSING AND SERVICES
PROGRAM. (a) The department may administer a homeless
housing and services program in each municipality in this
state with a population of285,500 or more to:
99 11.148.310
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•
(1) provide for the construction. development. or procurement

of housing for homeless persons: and
(2) provide local programs to prevent and eliminate
homelessness.
(b) The department may adopt rules to govern the
administration ofthe program, including rules that:
(I) provide for the allocation of any available funding: and
(2) provide detailed guidelines as to the scope of the local
programs in the municipalities described by Subsection (a),
(c) The department may use any available revenue, including
legislative appropriations, and shall sol icit and accept gifts
and grants for the purposes of this section. The department
shall use gifts and grants received for the pumoses of this
section before using any other revenue.
[FA9,FAIO,FAII,FAI2,FA13]
201 I. [FA9,FAIO,FAII,FA12,FAI3]
No equivalent provision. ARTICLE _' DEBT ISSUANCE AUTHORITY OF AND Same as Senate version.
FUNDING FOR CANCER PREVENTION AND
RESEARCH INSTITUTE OF TEXAS [FA9, FAIO, FAIl,
FA12, FAI3]
No equivalent provision. ARTICLE _ PUBLIC ASSISTANCE REPORTING ARTICLE 35. Same as House version,
INFORMATION SYSTEM [FA9,FAIO,FAI I,FAI2,FAI3]
No equivalent provision. SECTION .01. Subsection (c), Section 434.017, SECTION 35.01. Same as House version.
100 11.148.310
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Seetion-by-Section Analysis

(c) Money in the fund may be appropriated to the Texas
Veterans Commission to:
(I) enhance or improve veterans' assistance programs,
including veterans' representation and counseling;
(2) make grants to address veterans' needs; [and]
(3) administer the fund: and
(4) analyze and investigate data received from the federal
Public Assistance Reporting Information System (PARIS) that
is administered by the Administration for Children and
Families of the United States Department of Health and
Human Services. [FA9,FAIO,FAII,FA12,FAI3]
No equivalent provision. SECTION _.02. SECTION _.02. The comptroller shall SECTION 35.02. Same as House version.
credit to the fund for veterans' assistance established under
Section 434.017, Government Code, as amended by this
article, the savings generated from the use of the federal
Public Assistance Reporting Information System (PARIS)
under that section. [FA9,FAIO,FAII,FAI2,FA 13]
No equivalent provision. ARTICLE _. UNIFORM GRANT AND CONTRACT ARTICLE 55. Same as House version.
MANAGEMENT [FA9,FAIO,FAJ I,FAJ2,FA13]
amended as follows:
Sec. 783.004. OFFICE OF THE COMPTROLLER
[(;OVeR."IOR'£ OFFICE]. The office of the comptroller
[gs\'sFRsr's smea] is the state agency for uniform grant and
contract management. [FA9,FA10,FAII,FAI2,FAI3]
No equivalent provision. SECTION _.02. Subsections (a) and (b), Section 783.005, SECTION 55.02. Same as House version.
Government Code, are amended as follows:
(a) The comptroller [gs'"eFRSr'S amea] shall develop uniform
and concise language for any assurances that a local
101 11.148.310
.'
Senate Bill 1811
•
government is required to make to a state agency.

(b) The comptroller [ga.'eRlar's amee] may:
(I) categorize assurances according to the type of grant or
contract;
(2) designate programs to which the assurances are applicable;
and
(3) revise the assurances. [FA9,FAIO,FAI I,FAI2,FA13]
amended as follows:
Sec. 783.006. STANDARD FINANCIAL MANAGEMENT
CONDITIONS. (a) The comptroller [ga'leRlar's alliee] shaH
compile and distribute to each state agency an official
compilation of standard financial management conditions.
(b) The comptroller [ga.'eFRar's alliee] shall develop the
compilation from Federal Management Circular A-102 or
from a revision of that circular and from other applicable
statutes and regulations.
(c) The comptroller [ga','erRar's alliee] shall include in the
compilation official commentary regarding administrative or
judicial interpretations that affect the application of financial
management standards.
(d) The comptroller [ga.'eRlar's alliee] may:
(I) categorize the financial management conditions according
to the type of grant or contract;
(2) designate programs to which the conditions are applicable;
and
(3) revise the conditions. [FA9,FAIO,FAI I,FAI2,FAI3]
No equivalent provision. SECTION .04. Subsection (d), Section 783.007, SECTION 55.04. Same as House version.
(d) The agency shall file a notice of each proposed rule that
establishes a variation from uniform assurances or standard
102 11.148.310
Senate Bill 1811
conditions with the comptroller [gs',sfRsr's sffiee].

[FA9,FAI0,FAII,FA 12,FA 13]
No equivalent provision. SECTION .05. Subsection (b), Section 783.008, SECTJON 55.05. Same as House version.
(b) On receipt of a request for a single audit or audit
coordination, the· comptroller [gs'ieFRsr's sffiee] in
consultation with the state auditor shall not later than the 30th
day after the date of the request designate a single state
agency to coordinate state audits of the local government.
[FA9,FAIO,FA I I,FAI2,FA 13]
No equivalent provision. ARTICLE _. STATE ENERGY FACILITIES [FA9, Same as Senate version.
FAII,FAI2,FAI3,FAI0]
No equivalent provision. ARTICLE _ FISCAL MATTERS CONCERNING ARTJCLE. 39. Same as House version.
SURPLUS AND SALVAGE PROPERTY
[FA9,FAI0,FA11,FAI2,FAI3]
No equivalent provision. SECTION _.01. Subchapter C, Chapter 2175, Government SECTJON 39.01. Same as House version.
Code, is repealed. [FA9, FA 10,FAI I,FAI2,FAI3]
No equivalent provision. SECTION _.02. Section 32. I 02(a), Education Code, is SECTION 39.02. Same as House version.
amended as follows:
(a) As provided by this subchapter, a school district or open-
enrollment charter school may transfer to a student enrolled in
the district or school:
(I) any data processing equipment donated to the district or
school, including equipment donated by:
(A) a private donor; or
(B) a state eleemosynary institution or a state agency under
Section 2175.905 [211$.128], Government Code; •
103 11.148.310
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•
(2) any equipment purchased by the district or school, to the

extent consistent with Section 32.105; and
(3) any surplus or salvage equipment owned by the district or
school. [FA9,FA10,FAII,FAI2,FAI3]
amended as follows:
Sec. 2175.002. ADMINISTRATION OF CHAPTER. The
commission is responsible for the disposal of surplus and
salvage property of the state. The commission's surplus and
salvage property division shall administer this chapter.
[FA9,FAIO,FAII,FAI2,FA13]
amended by amending Subsection (a) and adding Subsections
(c) and (d) as follows:
(a) The commission may authorize a state agency to dispose
of surplus or salvage property if the agency demonstrates to
the commission its ability to dispose of the property under this
chapter [S~eeJ.1al3lerS C aRB e] in a manner that results in cost
savings to the state, under commission rules adopted under
this chapter.
(cl If property is disposed of under this section. the disposing
state agency shall report the transaction to the commission.
The report must include a description of the property disposed
of. the reasons for disposal. the price paid for the property
disposed of, and the recipient of the property disposed of.
(d) If the commission determines that a violation ofa state law
or rule has occurred based on the report under Subsection (cl.
the commission shall report the violation to the Legislative
Budget Board. [FA9,FAI0,FAII,FAI2,FA13]
No equivalent provision. SECTION _.05. The heading to Subchapter D, Chapter 2175, SECTION 39.05. Same as House version.
104 11.148.310
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SUBCHAPTER D. DISPOSITION OF SURPLUS OR
SALVAGE PROPERTY [.~Q'¥Y----{,C;tOijl,~,4Jln.4J41~S&lSII{,;O~N]
[FA9,FAI0,FAI1,FAI2,FA13]
amended as follows:
Sec. 2175.181. APPLICABILITY. [Eel TRis sYeehal'ter
8J3J3ties 8RI)' ts Sl:IFflhiS 8RB salvage J3F8J3eR)' laeateEl in:
[Ell Tre\'is CeYR t:1';
[(2~ a 88HRt)' iR wl:iie~ feaeral S\U:phIS J3FBfJeFt)' is w8reRBuseEi
1:1)' .ke eeFRfAissieR HReer St:teeR8pter G; SF
[(3) 8 eel:fRt-y fer wAieh tAB eeRuHissieA eleteFRiiReS tftat it is
eest effeetive fe fellew tAe j3FeeeElHFes areolae HAEler tJ:tis
Sl:ISSR8j3ter 1!fl8 iAfeFfHS af+eeteel state ageReies sf that
eleteFlTliA8tieR.
[W] This subchapter applies [aees Ret el'!,I)'] to a state
agency delegated the authority to dispose of surplus or salvage
property under Section 2175.065.
[FA9,FAIO,FAll,FAI2,FA13]
amended as follows:
Sec. 2175.182. STATE AGENCY TRANSFER OF
PROPERTY [TO COMMISSlmlj. (a) A state agency that
determines it has surplus or salvage property shall inform the
commission of that fact for the purpose of determining the
method of disposal of the property. [The eemmissisR is
resp8nsi19le fer the ElisfJ8sel sf SHFj3ttlS SF salvage J3F8peR),
YRaer this SYeeh8I'ter.] The commission may take physical
possession of the property.
(b) Based on the condition of the property, the commission..Jn
conjunction with the state agency, shall determine whether the •
105 11.148.310
•
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•
property is:
(I) surplus property that should be offered for transfer under
Section 2175. I84 or sold to the public; or
(2) salvage property.
(c) Following the determination in Subsection (b). the [+Re]
commission shall direct the state agency to inform the
comptroller's office of the property's kind, number, location,
condition, original cost or value, and date of acquisition.
[FA9,FAIO,FA I l,FAI2,FAI3]
amended as follows:
Sec. 2175.1825. ADVERTISING ON COMPTROLLER
WEBSITE. W Not later than the second day after the date the
comptroller receives notice from a state agency [#Ie
8sRlRlissi8A] under Section 2175.182(c), the comptroller shall
advertise the property's kind, number, location, and condition
on the comptroller's website.
(b) The comptroller shall provide the commission access to all
records in the state property accounting system related to
sumlus and salvage property. [FA9,FAIO,FAI I,FAI2,FA13]
amended as follows:
Sec. 2175.183. COMMISSION NOTICE TO OTHER
ENTITIES. The [OR taltiRg Fesf1snsihilit)' fer Sl::lFfIHS J3F8J3e~r
YAlIer Illis sYllsllat1ler, llle] commission shall inform other
state agencies, political subdivisions, and assistance
organizations of the comptroller's website that lists surplus
property that is available for sale.
No equivalent provision. SECTION _.10. Section 2175.184, Government Code, is SECTION 39. I O. Same as House version.
106 11.148.310
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amended as follows:
Sec. 2175. I84. DIRECT TRANSFER. During the 10 business
days after the date the property is posted on the comptroller's
website, a state agency, political subdivision, or assistance
organization shall [~] coordinate with the commission for a
transfer of the property at a price established by the
commission [iR sssJ3eFlltisR witk tke tFllRSFeFfiRg agaRa)']. A
transfer to a state agency has priority over any other transfer
during this period. [FA9,FA IO,FA 1I,FA12,FA13]
No equivalent provision. SECTION _.1 I. Section 2175.1 86(a), Government Code, is SECTION 39.1 I. Same as House version.
amended as follows:
(a) If a disposition of a state agency's surplus property is not
made under Section 2175.184, the commission shall sell the
property by competitive bid, auction, or direct sale to the
public, including a sale using an Internet auction site. The
commission may contract with a private vendor to assist with
the sale of the property. [FA9,FAIO,FAI I,FAI2,FAI3]
No equivalent provision. SECTION _. I2. Section 2175.189, Government Code, is SECTION 39.12. Same as House version.
amended as follows:
Sec. 2175.189. ADVERTISEMENT OF SALE. If the value of
an item or a lot of property to be sold is estimated to be more
than $25.000 [~], the commission shall advertise the sale
at least once in at least one newspaper of general circulation in
the vicinity in which the property is located.
No equivalent provision. SECTION .13. Section 2175.191(a), Government Code, is SECTION 39.13. Same as House version.
amended as follows:
(a) Proceeds from the sale of surplus or salvage property, less
the cost of advertising the sale, the cost of selling the surplus
or salvage property, including the cost of auctioneer services •
107 11.148.310
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•
or assistance from a private vendor, and the amount of the fee

collected under Section 2175.188, shall be deposited to the
credit of the general revenue fund of the state treasuf)'.
[FA9,FA IO,FAI I,FAI2,FA 13)
amended as follows:
Sec. 2175.302. EXCEPTION FOR ELEEMOSYNARY
INSTITUTIONS. Except as provided by Section 2175.905(b)
[2173.128(8)), this chapter does not apply to the disposition of
surplus or salvage property by a state eleemosynary
institution. [FA9,FAIO,FAI I,FAI2,FAI3)
No equivalent provision. SECTION _.15. Section 2I75.904, Government Code, is SECTION 39.15. Same as House version.
amended by amending Subsections (a) and (c) and adding
Subsection (d) as follows:
(a) The commission shall establish a program for the sale of
gambling equipment received from a municipality, from a
commissioners court under Section 263.I52(a)(5), Local
Government Code, or from a state agency under this chapter.
(c) Proceeds from the sale of gambling equipment from a
municipality or commissioners court, less the costs of the sale,
including costs of advertising, storage, shipping, and
auctioneer or broker services, and the amount of the fee
collected under Section 2175.188 [2173.13 I), shall be divided
according to an agreement between the commission and the
municipality or commissioners court that provided the
equipment for sale. The agreement must provide that:
(I) not less than 50 percent of the net proceeds be remitted to
the commissioners court; and
(2) the remainder of the net proceeds retained by the
commission be deposited to the credit of the general revenue
fund.
108 11.148.310
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(d) Proceeds from the sale of gambling equipment from a state
agency, less the costs of the sale, including costs of
advertising, storage, shipping. and auctioneer or broker
services, and the amount of the fee collected under Section
2175.188, shall be deposited to the credit of the general
revenue fund of the state treasury.
No equivalent provision, SECTION _.16. Subchapter Z, Chapter 2175, Government SECTION 39.16. Same as House version,
Code, is amended by adding Sections 2175.905,
DISPOSITION OF DATA PROCESSING EQUIPMENT, and
2175.906, ABOLISHED AGENCIES, as follows:
Sec. 2175.905. (a) If a disposition of a state agency's surplus
or salvage data processing equipment is not made under
Section 2175.184, the state agency shall transfer the
equipment to:
(I) a school district or open-enrollment charter school in this
state under Subchapter C, Chapter 32, Education Code;
(2) an assistance organization specificd by the school district;
or
(3) the Texas Department of Criminal Justice.
(b) If a disposition of the surplus or salvage data processing
equipment of a state eleemosynary institution or an institution
or agency of higher education is not made under other law, the
institution or agency shall transfer the equipment to:
(I) a school district or open-enrollment charter school in this
state under Subchapter C. Chapter 32, Education Code;
(2) an assistance organization specified by the school district;
.Q!
(3) the Texas Department of Criminal Justice.
(c) The state eleemosynary institution or institution or agency
of higher education or other state agency may not collect a fee
or other reimbursement from the district, the school, the •
109 11.148.310
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•
assistance organization. or the Texas Department of Criminal

Justice for the surplus or salvage data processing equipment
transferred under this section.
Sec. 2175.906. On abolition of a state agency, in accordance
with Chapter 325. the commission shall take custody of all of
the agency's property or other assets as surplus propertY unless
other law or the legislature designates another appropriate
governmental entity to take custody of the property or assets.
[FA9,FAI0,FAII,FA 12,FAI3]
No equivalent provision. ARTICLE _ TEXAS COMMISSION ON FIRE Same as Senate version.

PROTECTION FEES [FA9,FAI0,FAII,FAI2,FAI3] .
No equivalent provision. ARTICLE _ FISCAL MAITERS REGARDING Same as Senate version.

ALCOHOLIC BEVERAGE REGULATION [FA 14]
No equivalent provision. ARTICLE _. LAW ENFORCEMENT AND CUSTODIAL ARTICLE 40. Same as House version.
OFFICER SUPPLEMENTAL RETIREMENT FUND [FA IS]
(a-]) The comptroller shall deposit fees collected under
Section 133.102(e)(7), Local Government Code. to the credit
of the law enforcement and custodial officer supplemental
retirement fund. [FA 15]
No equivalent provision. SECTION .02. Section 133.102(e), Local Government SECTION 40.02. Same as House version.
(e) The comptroller shall allocate the court costs received
under this section to the following accounts and funds so that
each receives to the extent practicable, utilizing historical data
as applicable, the same amount of money the account or fund
110 I J.l48.310
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would have received if the court costs for the accounts and
funds had been collected and reported separately, except that
the account or fund may not receive less than the following
percentages:
(I) abused children's counseling 0.0088 percent;
(7) law enforcement and custodial officer supplemental

retirement fund [a~eFlllar's aAe eha"ff.,,,.'s liesllse]11.1426
percent; [FA 15]
No equivalent provision. SECTION _.03. This article takes effect September I, 2013. SECTION 40.03. Same as House version.
[FAI5]
No equivalent provision. ARTICLE _. SALES AND USE TAX COLLECTION AND ARTICLE 41. Same as House version.
ALLOCATION [FAI9]
No equivalent provision. SECTION _.01. Section 151.008(b), Tax Code, is amended SECTION 41.0 I. Same as House version.
as follows:
(b) "Seller" and "retailer" include:
(I) a person in the business of making sales at auction of
tangible personal property owned by the person or by another;
(2) a person who makes more than two sales of taxable items
during a 12-month period, including sales made in the
capacity of an assignee for the benefit of creditors or receiver
or trustee in bankruptcy;
(3) a person regarded by the comptroller as a seller or retailer
under Section 151.024 [aflhis eaee];
(4) a hotel, motel, or owner or lessor of an office or residential
building or development that contracts and pays for
telecommunications services for resale to guests or tenants;
[aRd]
(5) a person who engages in regular or systematic solicitation
111 11.148.310
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•
of sales of taxable items in this state by the distribution of

catalogs, periodicals, advertising flyers, or other advertising,
by means of print, radio, or television media, or by mail,
telegraphy, telephone, computer data base, cable, optic,
microwave, or other communication system for the purpose of
effecting sales of taxable items; and
(6) a person who. under an agreement with another person. is:
(A) entrusted with possession of tangible personal propertY
with respect to which the other person has title or another
ownership interest; and
(8) authorized to sell. lease. or rent the property without
additional action by the person having title to or another
ownership interest in the property. [FA 19]
No equivalent provision. SECTION _.02. Section 151.107, Tax Code, is amended by SECTION 41.02. Same as House version.
amending Subsection (a) and adding Subsection (d) as
follows:
(a) For the purpose of this subchapter and in relation to the use
tax, a retailer is engaged in business in this state if the retailer:
(1) maintains, occupies, or uses in this state permanently,
temporarily, directly, or indirectly or through a subsidiary or
agent by whatever name, an office, [~1gee ef] distribution
center, sales or sample room or place, warehouse, storage
place, or any other physical location where [~1gee ef] business
is conducted;
(2) has a representative, agent, salesman, canvasser, or
solicitor operating in this state under the authority of the
retailer or its subsidiary for the purpose of selling or
delivering or the taking of orders for a taxable item;
(3) derives receipts [feIH9Is] from the sale. [a] lease. or rental
of tangible personal property situated in this state; ...
(7) holds a substantial ownership interest in. or is owned in
whole or substantial part by. a person who maintains a
112 11.148.310
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location in this state from which business is conducted and if:
(A) the retailer sells the same or a substantially similar line of
products as the person with the location in this state and sells
those products under a business name that is the same as or
substantially similar to the business name of the person with
the location in this state: or
(8) the facilities or employees of the person with the location
in this state are used to:
(i) advertise. promote. or facilitate sales by the retailer to
consumers: or
(m perform any other activity on behalf of the retailer that is
intended to establish or maintain a marketplace for the retailer
in this state. including receiving or exchanging returned
merchandise:
(8) holds a substantial ownership interest in. or is owned in
whole or substantial part by. a person that:
(A) maintains a distribution center, warehouse. or similar
location in this state; and
(8) delivers propertY sold by the retailer to consumers; or
1'D otherwise does business in this state.
(d) In this section:
(I) "Ownership" includes;
(A) direct ownership:
(B) common ownership: and
(C) indirect ownership through a parent entity. subsidiary. or
affiliate.
(2) "Substantial" means. with respect to an ownership interest.
an interest in an entity that is:
(A) if the entity is a corporation, at least 50 percent. directly or
indirectly. of:
(il the total combined voting power of all classes of stock of
the corporation; or
nil the beneficial ownership interest in the voting stock of the •
113 11.148.310
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•

corporation:
(B) if the entity is a trust. at least 50 percent. directly or
indirectly. of the current beneficial interest in the trust corpus
or income:
(C) if the entity is a limited liability company. at least 50
percent, directly or indirectly. of:
(j) the total membership interest of the limited liability
company: or
(ij) the beneficial ownership interest in the membership
interest of the limited liability company: or
(0) for anv entity. including a partnership or association. at
least 50 percent. directly or indirectly. of the capital or profits
interest in the entity. [FA I9]
No equivalent provision. SECTION _.03. Subchapter M, Chapter 151, Tax Code, is SECTION 41.03. Same as House version.
amended by adding Section 151.802, ALLOCATION OF
CERTAIN REVENUE TO PROPERTY TAX RELIEF
FUND, as follows:
Sec. 151 .802. (a) This section applies only:
(I) during the state fiscal years beginning September I of
. 2012.2013.2014.2015. and 2016: and
(2) with respect to unused franchise tax credits described by
Sections 18(e) and CO. Chapter 1 (H.B. 3). Acts of the 79th
Legislature, 3rd Called Session. 2006.
(b) Notwithstanding Section 151.801. the comptroller shall
deposit to the credit of the propertY tax rei ief fund under
Section 403.109. Government Code. an amount of the
proceeds from the collection of the taxes imposed bv this
chapter equal to the amount of revenue the state does not
receive from the tax imposed under Chapter 171 because
taxable entities. as defined by that chapter. that are
corporations are entitled to claim unused franchise tax credits
after December 31. 2012. and during that state fiscal year.
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ecl This section expires September 1. 2017. [FA 19)
No equivalent provision. SECTION _.04. The change in law made by this article does SECTION 41.04. Same as House version.
not affect tax liability accruing before the effective date of this
article. That liability continues in effect as if this article had
not been enacted, and the former law is continued in effect for
the collection of taxes due and for civil and criminal
enforcement of the liability for those taxes. [FA 19)
No equivalent provision. SECTION _.05. This article takes effect January I, 2012. SECTION 41.05. Same as House version.
[FAI9]
No equivalent provision. ARTICLE _ CARRYFORWARD OF CERTAIN ARTICLE 42. Same as House version.
FRANCHISE TAX CREDITS [FA 19)
No equivalent provision. SECTION _.01. Sections 18(e) and (t), Chapter I (H.B. 3), SECTION 42.01. Same as House version.
Acts of the 79th Legislature, 3rd Called Session, 2006, are
amended as follows:
(e) A corporation that has any unused credits established
bcfore the effective date of this Act under Subchapter P,
Chapter 171, Tax Code, may claim those unused credits on or
with the tax report for the period in which the credit was
established. However, if the corporation was allowed to carry
forward unused credits under that subchapter, the corporation
may continue to apply those credits on or with each
consecutive report until the earlier of the date the credit would
have expired under the terms of Subchapter P, Chapter 171,
Tax Code, had it continued in existence, or December 31,
2016 [~), and the former law under which the corporation
established the credits is continued in effect for purposes of
determining the amount of the credits the corporation may
claim and the manner in which the corporation may claim the •
credits.
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•
(f) A corporation that has any unused credits established

before the effective date of this Act under Subchapter Q,
Chapter 171, Tax Code, may claim those unused credits on or
with the tax report for the period in which the credit was
established. However, if the corporation was allowed to carry
forward unused credits under that subchapter, the corporation
may continue to apply those credits on or with each
consecutive report until the earlier of the date the credit would
have expired under the terms of Subchapter Q, Chapter 171,
Tax Code, had it continued in existence, or December 31,
20 16 [~], and the former law under which the corporation
established the credits is continued in effect for purposes of
determining the amount of the credits the corporation may
claim and the manner in which the corporation may claim the
credits. [FA 19]
No equivalent provision. ARTICLE _ GENERAL APPROPRIATIONS ACT Same as Senate version.

FORMAT [FA45, FA46]
SECTION 21.02. Amends Section 322.008, Government SECTION .01. Amends Section 322.008, Government No equivalent provision.
Code, by adding Subsection (b- I) as follows: Code, by adding Subsection (b-I) as follows:
(b-I) Requires the general appropriations bill, for each state (b-l) Requires the general appropriations bill to, for each state [The conference commil/ee may have exceeded the limitations
fee the amount of which is proposed or authorized to be agency or other entity for which an appropriation is proposed imposed on its jurisdiction, but only the presiding officer can
increased by a provision of the general appropriations bill, to under the bill: make the final determination on this issue.]
set out in a separate section of the bill: (I) include a line item for each specific program or activity
(I) the statutory authority for the fee; administered by the agency or entity or an organizational unit
(2) the amount of the fee increase; of the agency or entity, organized according to the
(3) each purpose for which the fee revenue is to be used; and organizational structure of the agency, entity, or unit, except
(4) into which fund the fee revenue will be deposited. that if a specific program or activity administered by the
agency, entity, or unit includes identifiable components or
subprograms, the bill must include a line item for each of
those components or subprograms;
(2) speci!)' the amount of the proposed appropriation for each
116 11.148.310
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line item; and
(3) include, for each line item that represents a specific
program or activity or, if applicable, each group of line items
representing the components or subprograms of a specific
program or activity:
(A) a citation to the authorization in law for the program or
activity; and
(B) a statement regarding whether the source of the proposed
appropriation is nondedicated general revenue money,
dedicated general revenue money, federal money, or another
source, [fA45,fA46]
SECTION 21.03. Chapter 322, Government Code, is amended No equivalent provision. SECTION 45.03, Same as Senate version.
by adding Section 322.022 as follows:
Sec. 322.022. PUBLIC HEARING ON INTERIM BUDGET
REDUCTION REOUEST. (a) In this section:
(ll "Interim budget reduction request" means a request
communicated in any manner for a state agency to make
adjustments to the strategies. methods of finance. performance
measures. or riders applicable to the agency through the state
budget in effect on the date the request is communicated that.
if implemented. would reduce the agency's total expenditures
for the current state fiscal biennium to an amount less than the
total amount that otherwise would be permissible based on the
appropriations made to the agency in the budget.
(2) "State agency" means an office. department board,
commission, institution, or other entity to which a legislative
appropriation is made.
(b) A state agency shall provide to the board a detailed report
of any expenditure reduction plan that:
(ll the agency develops in response to an interim budget
reduction request made by the governor, the lieutenant
governor, or a member of the legislature. or any combination •
117 11.148.310
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•
of those persons: and

(2) if implemented. would reduce the agency's total
expenditures for the current state fiscal biennium to an amount
less than the total amount that otherwise would be permissible
based on the appropriations made to the agency in the state
budget for the biennium.
(c) The board shall hold a public hearing to solicit testimony
on an expenditure reduction plan a state agency reports to the
board as required by Subsection (b) as soon as practicable
after receiving the report. The agency may not implement any
element of the plan until the conclusion of the hearing.
(d) This section does not apply to an expenditure reduction a
state agency desires to make that does not directly or
indirectly result from an interim budget reduction request
made by the governor. the lieutenant governor. or a member
of the legislature. or any combination of those persons.
SECTION 21.04. Subchapter B, Chapter 403, Government No equivalent provision. SECTION 45.04. Same as Senate version except as follows:
Code, is amended by adding Section 403.0145 as follows: Sec. 403.0145. PUBLICATION OF FEES SCHEDULE. As
Sec. 403.0145. PUBLICATION OF FEES SCHEDULE. As soon as practicable after the end of each state fiscal year. the
soon as practicable after the end of each state fiscal year. the comptroller shall publish online a schedule of all revenue to
comptroller shall publish a schedule of all revenue to the state the state from fees authorized by statute. For each fee. the
from fees authorized by statute. For each fee. the schedule schedule must specify:
must specify: (I) the statutoryauthoritvfor the" fee:
(1) die purpose for which the fee revenue is tobe used: (2) if the fee has been increased during the most recent
(2) if the fee has been increased during the most recent legislative session. the amount of the increase:
legislative session. the amount of the increase: (3) into which fund the fee revenue will be deposited: and
(3) into which fund the fee revenue will be deposited: and (4) the amount of the fee revenue that will be considered
(4) the amount of the fee revenue that will be considered available for general governmental purposes and accordingly
available for general governmental purposes and accordingly considered available for the pUroose of certification under
considered available for the purpose of certification under Section 403.121.
Section 403.121.
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SECTION 21.05. Section 404.124, Government Code, is No equivalent provision. SECTION 45.05. Same as Senate version except as follows:
amended by amending Subsections (a) and (b) and adding (a) Before issuing notes the comptroller shall submit to the
Subsection (b-I) as follows: committee a general revenue cash flow shortfall forecast,
(a) Before issuing notes the comptroller shall submit to the based on the comptroller's most recent anticipated revenue
committee a general revenue cash flow shortfall forecast, estimate. The forecast must contain a detailed report of
based on the comptroller's most recent anticipated revenue estimated revenues and expenditures for each month and each
estimate. The forecast must contain a detailed report of major revenue and expenditure category and must
estimated revenues and expenditures for each month and each demonstrate the maximum general revenue cash flow shortfall
major revenue and expenditure category and must that may be predicted. The committee shall hold a public
demonstrate the maximum general revenue cash flow shortfall hearing to receive inviied testimony on the forecast. including
that may be predicted. The committee shall hold a public testimony on this state's overall economic condition, as soon
hearing to solicit testimony on the forecast, including as practicable after receiving the forecast.
testimony on this state's overall economic condition, as soon (b) Based on the forecast and testimony provided at the
as practicable after receiving the forecast. hearing required by Subsection (a), the committee may
(b) Based on the forecast and testimony provided at the approve the issuance of notes, subject to Subsections (b-I)
hearing required by Subsection (a). the committee may and (c), and the maximum outstanding balance of notes in any
approve the issuance of notes. subject to Subsections (b-I) and fiscal year. The outstanding balance may not exceed the
!£1 and the maximum outstanding balance of notes in any maximum temporary cash shortfall forecast by the comptroller
fiscal year. The outstanding balance may not exceed the for any period in the fiscal year. The compiroiier may nol
maximum temporary cash shortfall forecast by the comptroller issue notes in excess of the amount approved.
for any period in the fiscal year. The comptroller may not (b-I) The committee's approval of the issuance of notes
issue notes in excess of the amount approved. granted under Subsection (b) expires on the 91st day after the
(b-l) The committee's approval of the issuance of notes date the hearing conducted under Subsection (a) concludes.
granted under Subsection (b) expires on the 91 st dav after the The comptroller may not issue notes on or after the 91 st day
date the hearing conducted under Subsection (a) concludes. unless the comptroller submits another general revenue cash
The comptroller may not issue notes on or after the 91 st day flow shortfall forecast to the committee and the committee
unless the comptroller submits another general revenue cash subsequently grants approval for the issuance of the notes in
flow shortfall forecast to the committee and the committee accordance with the procedure required bv Subsections (a)
subsequently grants approval for the issuance of the notes in and (b). Each subsequent approval expires on the 6\ st day
accordance with the procedure required by Subsections (a) after the date the hearing on which the approval was based
and (b). Each subsequent approval expires on the 61st day concludes.
after the date the hearing on which the approval was based
concludes.
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•
ARTICLE 22. ECONOMIC AND WORKFORCE No equivalent provision. ARTICLE 46. Same as Senate version.
DEVELOPMENT PROGRAMS
SECTION 22.01. Section 481.078, Government Code, is No equivalent provision. SECTION 46.01. Section 481.078, Government Code, is
amended by adding Subsection (m) as follows: amended by adding Subsection (m) as follows:
fm) Notwithstanding Subsections fe) and fe-n. during the fm) Notwithstanding Subsections fe) and fe-\}, during the
state fiscal biennium that begins on September I. 201 I. the state fiscal biennium that begins on September I. 2011. the
governor shall transfer $30.niillion from the fund to the Texas governor shall transfer $10 million from the fund to the Texas
Workforce Commission to fund the Texas Back to Work Workforce Commission to fund the Texas Back to Work
Program established under Chapter 313, Labor Code. and $15 Program established under Chapter 313, Labor Code. The
millio':... from'· the fund to 'the skills development fund governor shall begin transferring money as required by this
established under Sectioid03.003. Labor Code. The governor subsection as soon as possible after September I. 2011. and
shall begin transferring money as required by this subsection may make more than one transfer if necessary to satisfy the
as soon as possible after September I. 2011. and may make requirements of this subsection. This subsectiotiexpires
more than one transfer if necessary to satisfy the requirements September I. 2013:
ofthis subsection.
SECTION 22.02. Section 303.003, Labor Code, is amended No equivalent provision. Same as House version.
by adding Subsection (b-2).
SECTION 22.03. Subtitle B, Title 4, Labor Code, is amended No equivalent provision. SECTION 46.02. Same as Senate version.
by adding Chapter 313, TEXAS BACK TO WORK
PROGRAM.
No equivalent provision. ARTICLE . REDUCING STATE MEDICAID AND Same as Senate version.
OTHER HEALTH CARE COSTS BY PROHIBITING
SMOKING IN CERTAIN PUBLIC PLACES
[FA53,FA54,FA55,FA57]
No equivalent provision. ARTICLE _. SMOKING IN CERTAIN PUBLIC PLACES Same as Senate version.
[FA53,FA54,FA55,FA57]
120 II.l48.3IO
Senate Bill 1811

No equivalent provision. ARTICLE _ PERIOD FOR SALES AND USE TAX ARTICLE 44. Same as House version.
HOLIDAY [FA2,3rd)
No equivalent provision. SECTION _.01. Section I51.326(a), Tax Code, is amended SECTION 44.01. Same as House version except changes the
to change the period during which the sale of an article of period to a period beginning at 12:01 a.m. on the Friday
clothing or footwear designed to be worn on or about the before the eighth day preceding the earliest date on which any
human body is exempted from the sales tax from a period school district, other than a district operating a year-round
beginning at 12:01 a.m. on the third Friday in August and system, may begin instruction for the school year as
ending at 12 midnight on the following Sunday to a period prescribed by Section 25.081 1(a), Education Code, and ending
beginning at 12:01 a.m. on the first Friday in August and at 12 midnight on the following Sunday.
ending at 12 midnight on the following Sunday. [FA2,3rd)
No equivalent provision. SECTION _.02. Saving provision relating to tax liability SECTION 44.02. Same as House version.
accruing before the effective date of this article. [FA2,3rd)
No equivalent provision. SECTION _.03. This article takes effect immediately if the SECTION 44.03. Same as House version.
Act receives a vote oftwe-thirds of all the members elected to
each house, as provided by Section 39, Article Ill, Texas
2011. [FA2;3rd]
No equivalent provision. ARTICLE _ MIXED BEVERAGE TAX Same as Senate version.

REIMBURSEMENTS [FAn]
No equivalent provision. ARTICLE _ FRANCHISE TAX LIABILITY OF Same as Senate version.

CERTAIN TAXABLE ENTITIES [FA73)
No equivalent provision. ARTICLE _. FRANCHISE TAX APPLICABILITY AND ARTICLE 56. Same as House version.
EXCLUSIONS [FA74]
No equivalent provision. SECTION _.Or. Section 171.0001, Tax Code, is amended by SECTION 56.0r. Same as House version.
121 11.148.310
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•

adding Subdivisions (I-a), (IO-a), (to-b), and (II-b) as
follows:
(I-a) Defines "Artist."
(IO-a) Defines "Live entertainment event."
(IO-b) Defines "Live event promotion services."
(II-b) Defines "Qualified live event promotion company."
[FA74]
No equivalent provision. SECTION .02. Section 171.0002(c), Tax Code, is amended SECTION 56.02. Section 171.0002(c), Tax Code, is amended
as follows: as follows:
(c) "Taxable entity" does not include an entity that is: ... (c) "Taxable entity" does not include an entity that is: ...
man S corpofuiion. asthat"terrnis d&fined by'Section h61; (10) anunincornomied entitY"organized as a: o<ilitical
Internal Reven"ue Code. that is owned entirely by an employee comrriitteeurider the Election Code oithe provisions of the
stock oWnerShip plan. as that term is defined by Section Federal Eleciion Campaign Act of 1971 (2 U.S.CSection43 j
4975(e),lntemal Revenue Code: [FA74] elseg);
No equivalent provision. SECTION _,03. Section 171.1011, Tax Code, is amended by SECTION 56.03. Same as House version.
adding Subsections (g-5) and (g-7) as follows:
(g-5) Requires a taxable entity that is a qualified live event
promotion company to exclude from its total revenue, to the
extent included under Subsection (c)(I)(A), (c)(2)(A), or
(c)(3), a payment made to an artist in connection with the
provision of a live entertainment event or live event
promotion services.
(g-7) Requires a taxable entity that is a qualified courier and
logistics company to exclude from its total revenue, to the
extent included under Subsection (c)(I)(A), (cX2)(A), or
(cX3), subcontracting payments made by the taxable entity to
nonemployee agents for the performance of delivery services
on behalf of the taxable entity. Defines "qualified courier and
logistics company" for purposes of this subsection. [FA74]
No equivalent provision. SECTION _.04. This article applies only to a report SECTION 56.04. Same as House version.
122 11.148.310
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originally due on or after January 1,2012. [FA74]
[FA74]
No equivalent provision. ARTICLE . TREATMENT OF CERTAIN EXEMPT Same as Senate version.

ORGANIZATIONS FOR SALES AND USE TAX
PURPOSES [FA75,FA76]
No equivalent provision. ARTICLE _. ELIGIBILITY OF SURVIVING SPOUSE OF ARTICLE 47. Same as House version.
DISABLED VETERAN TO PAY AD VALOREM TAXES
ON RESIDENCE HOMESTEAD IN INSTALLMENTS
[FA82]
No equivalent provision. SECTION _.01. Section 31.031, Tax Code, is amended by SECTION 47.01. Same as House version.
amending Subsection (a) and adding Subsection (a-I) as
follows:
(a) This section applies only to:
ill [lfllefeFe tile EleliR~ijeRe~' Elate] an individual who is;
ftJ. disabled or at least 65 years of age; and
ill} [is] qualified for an exemption under Section II.13(c);..Qr
(2) an individual who is:
(A) the unmarried surviving spouse of a disabled veteran: and
(8) qualified for an exemption under Section 11.22.
(a- I) If before the delinquency date an individual to whom
this section applies pays at least one-fourth of a taxing unit'S
ta.xes imposed on property that the person owns and occupies
as a residence homestead, accompanied by notice to the taxing
unit that the person will pay the remaining taxes in
installments, the person may pay the remaining taxes without
penalty or interest in three equal installments. The first
installment must be paid before April I. the second
installment before June I, and the third installment before '.
123 11.148.310
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•
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•
August I. [FA82]
No equivalent provision. SECTION _.02. This article applies only to an ad valorem SECTION 47.02. Same as House version.
tax year that begins on or after the effective date of this
article. [FA82]
[FA82]
No equivalent provision. ARTICLE _. GENERAL REVENUE ATTRIBUTABLE TO Same as Senate version.

ACT. [FA84]
No equivalent provision. ARTICLE _. TEXAS FISCAL STABILITY COMMISSION Same as Senate version.
No equivalent provision. ARTICLE _. REDUCTION IN GENERAL Same as Senate version.

APPROPRIATIONS ACT [FA85]
No equivalent provision. ARTICLE _ FISCAL MATTERS REGARDING ARTICLE 49. Same as House version.
ASSISTANT PROSECUTORS [FA85]
No equivalent provision. SECTION _.01. Section 41.255(f), Government Code, is SECTION 49.01. Same as House version.
amended as follows:
(f) A county is not required to pay longevity supplements if
the county does not receive funds from the comptroller as
provided by Subsection (d). If sufficient funds are not
available to meet the requests made by counties for funds for
payment of assistant prosecutors qualified for longevity
supplements;
ill [;] the comptroller shall apportion the available funds to
the eligible counties by reducing the amount payable to each
county on an equal percentage basis,
(2) a county is not entitled to receive the balance of the funds
124 11.148.310
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at a later date; and
(3) the longevity pay program under this chapter is suspended
to the extent of the insufficiency. [A aeYRt:I' IRat Feaei.'es fFe!l'l
the 8SFAfltreileF 8ft 8fH8l:1Rt less tH8R the 8Rl8URt eeFtiHeS by
the 8SYAty 1a thB eemfJtreller HRBer SlihseetieR (el) SHall
8fJpeFtieR thB AiReS passives e~! r8Eh:leiAg the 8FABliRt fJ~'aele
t8 eligiBle 85SistaRt J9FBSeSytsrs 8A 8ft efJl::lal J3ereentage hasis,
BY! is Ret rBEll:Iireei ta lise eeHRt:,. fHRels 1a make YfJ 8AY
Elifler8Aee ae.weeR the amBNR! eeftit:ieel aRa tAe ameliRt
Feaei·lea.] [FA85]
No equivalent provision. SECTION _.02. Section 41.255(g), Government Code, is SECTION 49.02. Same as House version.
repealed. [FA85]
No equivalent provision, ARTICLE _. FISCAL MATIERS REGARDING PROCESS ARTICLE 50. Same as House version.
SERVERS [FA8S]
[SEE ABOVE]
No equivalent provision, SECTION .02. Subchapter B, Chapter 72, Government SECTION 50.01. Same as House version.
Code, is amended by adding Sections 72.013 and 72.014 as
follows;
Sec. 72.013. PROCESS SERVER REVIEW BOARD. A
person appointed to the process server review board
established by supreme court order serves without
compensation but is entitled to reimbursement for actual and
necessary expenses incurred in traveling and performing
official board duties.
Sec. 72.014. CERTIFICATION DIVISION. The office shall
establish a certification division to oversee the regulatory
programs assigned to the office by law or by the supreme
court. [FA85]
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Senate BiJl1811
•
No equivalent provision. SECTION _.03. (a) Sets out applicability of the fees Same as Senate version.
recommended and approved under Section 51.008,
Government Code, as added by this article.
(b) Requires the Office of Court Administration of the Texas
Judicial System to prorate the process server certification fee
so that a person who holds a process server certification on the
effective date of this Act pays only that portion of the fee that
is allocable to the period during which the certification is
valid. On renewal of the certification on the new expiration
date, the entire certification renewal fee is payable. [FA85]
No equivalent provision. ARTICLE _ FISCAL MATTERS REGARDING Same as Senate version.

JUDICIAL AND COURT PERSONNEL TRAINING FUND
[FA85]
[SEE ABOVE]
No equivalent provision. ARTICLE _ FISCAL MATTERS REGARDING ARTICLE 51. FISCAL MATTERS REGARDING
PAYMENT OF JURORS [FA85,FA86] REIMBURSEMENT OF JURORS
No equivalent provision. SECTION _.0 I. Section 61.00 I, Government Code, is SECTION 51.01. Same as House version.
amended by adding Subsections (a-I) and (a-2) as follows:
(a-I) Notwithstanding Subsection (a). and except as provided
bv Subsection (c), during the state fiscal biennium beginning
September I. 2011. a person who reports for jurv service in
response to the process of a court is entitled to receive as
reimbursement for travel and other expenses an amount:
(1) not less than $6 for the first day or fraction of the first day
the person is in attendance in court in response to the process
and discharges the person's duty for that day: and
(2) not less than the amount provided in the General
Appropriations Act for each day or fraction of each day the
person is in attendance in court in response to the process after
126 11.148.310
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the first day and discharges the person's duty for that day.
(a-2) This subsection and Subsection (a-I) expire September
1. 2013. [FA85,FA86]
No equivalent provision. SECTION _.02. Section 61.0015, Government Code, is SECTION 5I .02. Same as House version.
amended by adding Subsections (a-I), (a-2), and (e-I) as
follows:
(a- I) Notwithstanding Subsection (a), during the state fiscal
biennium beginning September 1. 2011, the state shall
reimburse a county the appropriate amount as provided in the
General Appropriations Act for the reimbursement paid under
Section 61.00 I to a person who reports for jury service in
response to the process of a court for each day or fraction of
each day after the first day in attendance in court in response
to the process.
(a-2) This subsection and Subsections (a- I) and (e-]) expire
September 1. 2013.
(e- I) Notwithstanding Subsection (e), during the state fiscal
biennium beginning September 1, 20 11. if a payment on a
county's claim for reimbursement is reduced under Subsection
(d), or if a county fails to file the claim for reimbursement in a
timelv manner, the comptroller may, as provided by rule,
apportion the payment of the balance owed the county. The
comptroller's rules may permit a different rate of
reimbursement for each quarterly pavment under Subsection
III [FA85,FA86]
No equivalent provision. ARTICLE _. ADJUDICATION OF CLAIMS ARISING Same as Senate version.

UNDER WRITTEN CONTRACTS WITH STATE
AGENCIES [FA87]
No equivalent provision. ARTICLE _. STATE COSTS FOR ATTORNEYS AD Same as Senate version.
LITEM AND GUARDIANS AD LITEM APPOINTED TO •
127 11.148.310
•
Senate BiI11811
•
REPRESENT MINORS IN JUDICIAL BYPASS

ABORTION PROCEEDINGS [FA89,FA90]
No equivalent provision. ARTICLE _ FISCAL MATTERS CONCERNING Same as Senate version.

SCHOLARSHIPS AWARDED FROM STUDENT
SUCCESS-BASED FUNDS [FA3,3rd]
No equivalent provision. ARTICLE _ MISCELLANEOUS PROVISIONS Same as Senate version.

[FAI6,FAI7; FA22,FA23; FA52; FA64; FA68,FA69;
FA75,FA76; FA78; FA88; FA89,FA90]
No equivalent provision. SECTION _.Amends Subchapter B, Chapter 2155, Same as Senate version.
Government Code, by adding Section 2 I55.0721,
REDUCING STATE AGENCY DOCUMENTATION AND
REPORT COSTS. [FAJ 6,FAI 7]
[Same as House version. See Section 5.01 above.] SECTION _. Amends Section 2155.082, Government Code, [See Section 43.01 above]
PROVIDING CERTAIN PURCHASING SERVICES ON
FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT
FUNDING.
No equivalent provision. SECTION _. Amends Subchapter A, Chapter 382, Health Same as Senate version.
and Safety Code, by adding Section 382.005, PROHIBITION
ON IMPLEMENTATION OF GREENHOUSE GAS
EMISSIONS REGULATORY PROGRAMS. [FA52]
No equivalent provision. SECTION _. Amends Subchapter D, Chapter 301, Labor Same as Senate version.
Code, by adding Section 301.068, EFFICIENCY PILOT
PROGRAM. [FA64]
No equivalent provision. No equivalent provision. ARTICLE 58. AD VALOREM TAXATION OF LAND

USED TO RAISE OR KEEP BEES
128 11.148.310
Senate Bill 1811

No equivalent provision. SECTION _. (a) Section 23.51(2), Tax Code, is amended as SECTION 58.0 I. Same as House version.
follows:
(2) "Agricultural use" includes but is not limited to the
following activities: cultivating the soil, producing crops for
human food, animal feed, or planting seed or for the
production of fibers; floriculture, viticulture, and horticulture;
raising or keeping livestock; raising or keeping exotic animals
for the production of human food or of fiber, leather, pelts, or
other tangible products having a commercial value; planting
cover crops or leaving land idle for the purpose of
participating in a governmental program, provided the land is
not used for residential purposes or a purpose inconsistent
with agricultural use; and planting cover crops or leaving land
idle in conjunction with normal crop or livestock rotation
procedure. The term also includes the use of land to produce
or harvest logs and posts for the use in constructing or
repairing fences, pens, barns, or other agricultural
improvements on adjacent qualified open-space land having
the same owner and devoted to a different agricultural use.
The term also includes the use of land for wildlife
management. The term also includes the use of land to raise or
keep bees for pollination or for the production of human food
or other tangible products having a commercial value.
provided that the land used is not less than 5 or more than 20
~
(b) This section applies only to the appraisal of land for ad SECTION 58.02. This article applies only to the appraisal of
valorem tax purposes for a tax year that begins on or after the land for ad valorem tax purposes for a tax year that begins on
effective date of this Act. [FA78] or after the effective date of this Act.
No equivalent provision. SECTION _. Amends Section 151.336, Tax Code, Same as Senate version.
CERTAIN COINS AND PRECIOUS METALS.
[FA75,FA76] •
129 11.148.310
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Senate BiIII8H

No equivalent provision. SECTION _ Amends Section 171.1012, Tax Code, by Same as Senate version.
adding Subsection (e-I). [FA89,FA90)
No equivalent provision. SECTION _. Amends Section 17J.1013, Tax Code, by Same as Senate version.
adding Subsection (c-2). [FA89,FA90)
No equivalent provision. SECTION _. Applicability provision relating to Sections Same as Senate version.
171.1012 and 171.1013. [FA89,FA90)
No equivalent provision. SECTION . Amends Section 313.007, Tax Code, Same as Senate version.
EXPIRATION. [FA68,FA69)
No equivalent provision. No equivalent provision. ARTICLE 59. PLACE OF BUSINESS OF A RETAILER

FOR SALES TAX PURPOSES
No equivalent provision. SECTION _. Section 32J.002, Tax Code, is amended as SECTION 59.01. Same as House version.
follows:
Sec. 321.002. DEFINITIONS. (a) In this chapter:
(I) "Additional municipal sales and use tax" means only the
additional tax authorized by Section 321.101(b).
(2) "Municipality" includes any incorporated city, town, or
village.
(3) "Place of business of the retailer" means an established
outlet, office, or location operated by the retailer or the
retailer's agent or employee for the purpose of receiving
orders for taxable items and includes any location at which
three or more orders are received by the retailer during a
calendar year. A warehouse, storage yard, or manufacturing
plant is not a "place of business of the retailer" unless at least
three orders are received by the retailer during the calendar
year at the warehouse, storage yard, or manufacturing plant.
An outlet, office, facility, or any location that contracts with a
130 11.148.310
Senate Bill 1811
retail or commercial business [eRgagee iA eetivities ta lNRiek

t!lis e!lBflter Bflfllies] to process for that business invoices.
purchase orders. [er] bills of lading. or other equivalent
records onto which sales tax is added. including an office
operated for the purpose of buying and selling taxable goods
to be used or consumed by the retail or commercial business.
is not a "place of business of the retailer" if the comptroller
determines that the outlet, office, facility, or location functions
or exists to avoid the tax imposed by this chapter or to rebate a
portion of the tax imposed by this chapter to the contracting
business. Notwithstanding any other provision of this
subdivision, a kiosk is not a "place of business of the retailer."
In this subdivision, "kiosk" means a small stand-alone area or
structure that:
(A) is used solely to display merchandise or to submit orders
for taxable items from a data entry device, or both;
(8) is located entirely within a location that is a place of
business of another retailer, such as a department store or
shopping mall; and
(C) at which taxable items are not available for immediate
delivery to a customer. [FA22,FA23]
No equivalent provision. (b) Words used in this chapter and defined by Chapter 151 No equivalent provision.
have the meanings assigned by Chapter lSI. [FA22,FA23]
No equivalent provision. SECTION _. SEtTION:~ asaddei(by this amendment SECTION 59.02. This article takes effect September 1,2011.
takes effect September 1,2011. [FA22,FA23]
No equivalent provision. No equivalent provision. ARTICLE 48. EXTENSION OF FRANCHISE TAX

EXEMPTION

131 11.148.310
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Senate Bill 1811
•
make theftl/al determination on this issue.]
No equivalent provision. SECTION _. Section I(c), Chapter 286 (H.B. 4765), Acts of SECTION 48.0 I. Same as House version.
the 8Ist Legislature, Regular Session, 2009, is amended as
follows:
(c) This [If tllis seetieR lfIlies e#feel; this] section expires
December 31, 2013 [~]. [FA88)
No equivalent provision. SECTION _. Section 2(b), Chapter 286 (H.B. 4765), Acts of SECTION 48.02. Same as House version.
the 81st Legislature, Regular Session, 2009, is amended as
follows:
(b) This section takes effect January 1, 2014 [21112, if ~.B.
~Ie. 2134, Poets efttle 81st begisJah:IFe, Regl::JIsf SessieR, 2gg9,
8ftteR8S SeetisA 155.Q211, Tan Geee, if) a fR8RRer tkat r8stths
if) 8A iRBrease if) the TaveRNS frem thB 1a?( uAder tl:tat seetieR
ElttriRg thB state f-iseal eieRRiHtTt eegiRRiRg SeJ3temser 1, 2QQ9,
that is attrisytable 18 that ek8Rge, BRei tRat Aet is BRsales aRS
sesames la'l¥'. ]f II.B. ~re. 2154, Aets sf the 81st Legislature,
RegNier SessieR, 2QQ9, dees Ret 8ffi8A8 SeetieR 155.(2) 1, T&:l'i
CeEJe, if) tHat ffiBAR8r BF is Ret 8Heeted Sf 888S Ret 8ee8mB
Jaw, t~i5 seatieR takes agee! JaRttar:,' 1, 2QIQ]. [FA88]
No equivalent provision. SECTION _. Section 3(b), Chapter 286 (H.B. 4765), Acts of SECTION 48.03. Same as House version.
the 81st Legislature, Regular Session, 2009, is amended as
follows:
(b) This section takes effect January 1, 2014 [21112, if !I.R
~le. 21$4, Aets eftke 81st LegislatHFe, Regl:tlaF SessieR, 29g9,
BffleR85 SeetieR 133.9211, Tal( CeEle, iR a fRBRReF tHat resHl15
iR 8ft iRsrease iR tke reveRHe KelH tke tau HAser tHat seatieR
eYriRg tke slate Hseall:JieRRiHFR l:JegiRRiAg SepteMBer 1,2999,
tHat is Mtriht:llaele t8 ~at eR8Rge, 8Ad that Aet is eRaetee BRe
eeeeffies law. If J..I.8. ~le. 2134, Aets eflke 81st LegislatYFe,
RegNIer SessieR, 2999, Elees Ret BHleREI SeatieR 13$.9211, +8U
132 11.148.310
Senate Bill 1811

Ceee, iR tRBt Rl8RReF Sf is Ret eReeteeJ SF sees Ret aeeama
law, tHis seetieR tRices ef-feet JaR1::l8f)' 1, 291 Q]. [FA88]
No equivalent provision. SECTION _. This Act takes effect only if S.B. No. 1811, Same as Senate version.
Acts of the 82nd Legislature, Regular Session, 2011, results in
an increase in the revenue collected from state taxes imposed
during the state fiscal biennium beginning September 1,2011,
that is attributable to the changes provided by that Act, and
that Act is enacted and becomes law.lfS.B. No. 1811, Acts of
the 82nd legislature, Regular Session, 2011, does not result in
an increase in the revenue collected from state taxes imposed
or is not enacted or does not become law, this Act has no
effect. [FA88]
No equivalent provision. SECTION _. This Act takes effect immediately if it receives SECTION 48.04. This article takes effect immediately if this
a vote of two-thirds of all the members elected to each house, Act receives a vote of two-thirds of all the members elected to
as provided by Section 39, Article III, Texas Constitution. If each house, as provided by Section 39, Article III, Texas
this Act does not receive the vote necessary for immediate Constitution. If this Act does not receive the vote necessary
effect, this Ad takes effect September I, 20 II. [FASS] for immediate effect, Lhis article takes effect September i,
2011.
ARTICLE 23. EFFECTIVE DATE ARTICLE 15. Same as Senate version. ARTICLE 77.
SECTION 23.01. Except as otherwise provided by this Act, SECTION 15.01. Same as Senate version. SECTION 77.01. Same as Senate version.
this Act takes effect September I, 20 I I.
No equivalent provision. No equivalent provision. ARTICLE 61. CERTAIN CONTRIBUTION RATE

COMPUTATIONS
[The conference committee may have exceeded the limitalions

make the final determination on this issue.]
133 11.148.310
Senate Bill 1811
No equivalent provision. No equivalent provision. SECTION 61.01. Section 815.402, Government Code, is
amended by adding Subsections (a-I) and (h-I) as follows:
(a-]) 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 I. 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 I. 2012.
(h-I) 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 I, 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 I. 2012.
No equivalent provision. No equivalent provision. ARTICLE 62. QUINTENNJAL REPORTING OF CERTAIN

INFORMATlON FOR UNCLAIMED PROPERTY
[The conference committee may have exceeded the /imitations

No equivalent provision. No equivalent provision. SECTION 62.01. Section 411.01 II (a), Government Code, is
amended as follows:
(a) Not later than June I of every fifth [eeeft] 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
134 11.148.310
Senate Bill 1811

about whom the department has such information in its
records.
No equivalent provision. No equivalent provision. SECTION 62.02. Section 811.010(a), Government Code, as
added by Chapter 232 (S.B. 1589), Acts of the 81st
Legislature, Regular Session, 2009, is amended as follows:
(a) Not later than June I of every fifth [eaeIt] 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.
No equivalent provision. No equivalent provision. SECTION 62.03. Section 821.0 IO(a), Government Code, is
amended as follows:
(a) Not later than June I of every fifth [eaeIt) year, the
retirement system shall provide to the comptroller, for the
purpose of assisting the comptroJier in the identitication 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.
No equivalent provision. No equivalent provision. SECTION 62.04. Section 301.086(a), Labor Code, is
amended as follows:
(a) Not later than June 1 of every fifth [eaeIt] 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.
135 11.148.310
Senate Bill 1811
•
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.
No equivalent provision. No equivalent provision. ARTICLE 63. AD VALOREM TAXATION OF CERTAIN

STORED PROPERTY

No equivalent provision. No equivalent provision. SECTION 63.01. Subsection (a), Section J 1.253, Tax Code, is
amended by amending Subdivision (2) and adding
Subdivisions (5) and (6) 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 [delaiReEl] at one or more public
warehouse facilities [aleeetieR] in this state that are not in any
way owned or controlled by [iR ....'fiiek] the owner of the
personal property [Bees Ret ha,'e a elireet SF iAsiFeet
8'NRersJ:iiJ:l iRterest] for the account of [asseJH:sliRg, steFiAg,
maRHfaetHfiRg, IlfeeessiAg, SF -FaerieatiRg fJHFfJ8ses hy] the
person who acquired or imported the property;
(C) is transported to another location in this 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
136 11.148.310
Senate BiIl1811
(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:
CA) 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.
No equivalent provision. No equivalent provision. SECTION 63.02. Section 11.253, Tax Code, is amended by
amending Subsections (e) and (h) and adding Subsections G-
I) and G-2) as follows:
(e) In determining the market value of goods-in-transit that in
the preceding year were [essemeleel,) stored[, meRlifaetliFeel,
j3FOeCSSc3, Sf fft13fiealt!d] ill this state, the chief appraiser shaH
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.
137 11.148.310
Senate Bill 1811
(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
[asSefAeliRg, . ster-iRg, 1fl8Rtlfaetl:iFiRg, j3FeeessiRg, 6F
fallFieatiRg jlllfjl8ses] 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 31 st 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.
0-1) Notwithstanding Subsection (j) or official action that was
taken under that subsection before September I. 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 Januarv I. 2012.
unless the governing bodv ofthe taxing unit takes action on or
after September I, 20 II, 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 I-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
138 11.148.310
Senate Bill 1811
previous action to tax goods-in-transit or otherwise determines

that the exemption prescribed by Subsection (b) will apply to
that taxing unit.
0-2) Notwithstanding Subsection n- n. 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 ofa 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.
No equivalent provision. No equivalent provision. 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 I, 2012.
No equivalent provision. No equivalent provision. SECTION 63.04. (a) Except as provided by Subsection (b) of
this section, this article takes etTect january 1,2012.
(b) Section 63.02 of this article of this Act takes effect
September I, 20 I I.
No equivalent provision. No equivalent provision. ARTICLE 64. FISCAL MATIERS CONCERNING

ADVANCED PLACEMENT

No equivalent provision. No equivalent provision. SECTION 64.01. Subsection (h), Section 28.053, Education
(h) The commissioner may enter into agreements with the
college board and the International Baccalaureate
139 11.148.310
•
Senate Bill 1811
Organization to pay for all examinations taken by eligible

public school students. An eligible student is a student [ene]
who~
ill 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.
No equivalent provision. No equivalent provision. ARTICLE 65. FISCAL MATIERS CONCERNING

TUITION EXEMPTIONS
[The conference commil/ee may have exceeded the limitations

make thefinal determination on this issue.]
No equivalent provision. No equivalent provision. SECTION 65.01. Subsection (c), Section 54.214, Education
(c) To be eligible for an exemption under this section, a
person must: ...
(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 [al Ihe ieslilYlise sf higher
eeitoleatieFl gFaAtiAg tHe eJiemj3tisR];
(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.
140 11.148.310
Senate BiJl1811
No equivalent provision. No equivalent provision. 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.
No equivalent provision. No equivalent provision. ARTICLE 66. FISCAL MATIERS CONCERNING DUAL
HIGH SCHOOL AND JUNIOR COLLEGE CREDIT.

No equivalent provision. No equivalent provision. SECTION 66.01. Subsection (c), Section 130.008, Education
(c) The contact hours attributable to the enrollment of a 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 28.002fa)(2)(C). shall be included in the contact
hours used to determine the junior college's proportionate
share ofthe 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).
No equivalent provision. No equivalent provision. SECTION 66.02. This article applies beginning with funding
for the 20 II fall semester.
No equivalent provision. No equivalent provision. ARTICLE 67. CLASSIFICAnON OF ENTITIES
141 11.148.310
Senate Bill 1811
Seclion-by-Seclion Analysis
ENGAGED IN RETAIL TRADE FOR PURPOSES OF THE

FRANCHISE TAX

imposed on its jurisdiction. but only the presiding officer call
make the filial determillatioll 011 this issue.]
No equivalent provision. No equivalent provision. SECTION 67.01. Section 171.0001(12), Tax Code, is
amended as follows:
(12) "Retail trade" means~
fA} the activities described in Division G of the 1987
Standard Industrial Classification Manual published by the
federal Office of Management and Budget: and
(8) 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.
No equivalent provision. No equivalent provision. SECTION 67.02. This article applies only to a report
originally due on or after the effective date ofthis Act.
No equivalent provision. No equivalent provision. SECTION 67.03. This article takes effect Janu3l)' 1,2012.
No equivalent provision. No equivalent provision. ARTICLE 68. RETENTION OF CERTAIN FOUNDATION

SCHOOL FUND PAYMENTS
[The cOllference committee may have exceeded the limitations

make the filial determination 011 this issue.]
SECTION 68.0 I. Subchapter E, Chapter 42, Education Code,

is amended by adding Section 42.2511 as follows:
Sec. 42.2511. AUTHORIZATION FOR CERTAIN
142 11.148.310
Senate BiI11811

DISTRICTS TO RETAIN ADDlTIONAL STATE AID. (a)
This section applies only to a school district that was provided
with state aid under former Section 42.2516 for the 2009-20 I0
or 20 I 0-20 II school year based on the amount of aid to which
the district would have been entitled under that section if
Section 42.25 16<g), as it existed on January I. 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).
(c) This section expires September 1,2013.
SECTION 68.02, It is the intent of the legislature that the

authorization provided by Section 42,251 I, 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.
No equivalent provision. No equivalent provision. ARTICLE 69. THE STATE COMPRESSION

PERCENTAGE

No equivalent provision. No equivalent provision. SECTION 69.01. Section 42,2516, Education Code, is
amended by adding Subsection (b-2) 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
143 11.148.310
•
•
Senate Bill 1811
SENATE VERSION . HOUSE VERSION (IE) CONFERENCE
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 vear. The reduction required by
this subsection applies beginning with the maintenance and
operations tax rate adopted for the 2009 tax year.
No equivalent provision. No equivalent provision. ARTICLE 70. TEXAS GUARANTEED STUDENT LOAN
CORPORATION; BOARD OF DIRECTORS

No equivalent provision. No equivalent provision. SECTION 70.01. Sections 57.13(a) and (b), Education Code,
(a) The corporation is governed by a board of nine [-1+]
directors in accordance with this section.
(b) The governor, with the advice and consent of the senate,
shall appoint the [oW] membersof[te] the board as follows:
(I) four [fi¥e] 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 J! [eA eligiBle] postsecondary educational
institution that is an eligible institution for purposes of the
Higher Education Act of 1965. as amended[, lIS deAAed B)'
SeetieR §7.46).
144 11.148.310
Senate Bill 1811

No equivalent provision. No equivalent provision. SECTION. 70.02. Section 57.17, Education Code, is amended
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 [eR8iFRl8R,] 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~
applicable.
No equivalent provision. No equivalent provision. SECTION 70.03. Section 57.13(d), Education Code, is
repealed.
No equivalent provision. No equivalent provision. ARTICLE 71. DRIVER'S LICENSES AND PERSONAL
IDENTIFICATION CERTIFICATES

make the final determination 011 this issue.)
No equivalent provision. No equivalent provision. SECTION 71.01. Subchapter A, Chapter 521, Transportation
Sec. 52\.007. SECURITY, VALIDITY AND EFFICIENCY
STUDY. (a) Notwithstanding any other law, the commission
shall study procedures and requirements necessarv 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
145 11.148.310
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Senate Bi1I1811
•
may specify the term of a driver's license or personal

identification certificate issued under this chapter.
No equivalent provision. No equivalent provision. 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.
No equivalent provision. No equivalent provision. SECTION 71.03. This article takes effect immediately if this
each house, as provided by Section 39, Article 111, Texas
for this article to have immediate effect, this article takes
effect September I, 20 II.
No equivalent provision. No equivalent provision. ARTICLE 72. FISCAL MATTERS CONCERNING LEASES
OF PUBLIC LAND FOR MINERAL DEVELOPMENT

imposed on its jurisdiction, but ollly the presiding officer can
No equivalent provision. No equivalent provision. SECTION 72.01. Sections 85.66(a) and (c), Education Code,
(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
[iR tke stale tFeft5l1FY] as specified in Section 85.70 [ef-tIlis
eeEIe]. The royalty or money paid to the general land office
shall be accompanied by the sworn statement of the owner,
146 II.l48.310
Senate Bill 1811
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.
(c) The commissioner ofthe general land office shall 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
[tllmes iRle tAe stale IfeaSIl~',] as provided by Section 85.70
during [enAis eese, at] the preceding month.
No equivalent provision. No equivalent provision. SECTION 72,02. Section 85.69, Education Code, is amended
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
[eefR)3tfellef] 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 [ift...Hle
slele IfeaSIlI)'] as provided by Section 85.70 [enAis eese].
No equivalent provision. No equivalent provision. SECTION 72.03. Section 85.70, Education Code, is amended
as follows:
Sec. 85.70. CERTAIN MINERAL LEASES; DISPOSITION
OF MONEY; SPECIAL FUNDS; INVESTMENT. (a) Except
as provided by Subsection (c) [ef IAis seelieR], all money •
147 11.148.310
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•
received under and by virtue of this subchapter shall be

deposited in [Ille slale lfeaStifY Ie llle ereail et] 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 tke afJ~Fe,ral sf lRB s8fH}3treller, tke
aeaFs sf regeRts sf +As TeJf8S A&~4 URi\'8fSit)' S~tsteJfl IH~'
81313BiRt BRe SF IHBF8 8BHUR8reiai eaRks, eel38site~r trt:lst
eefflfJ8Ries, SF ether 8Rtities 18 SeRre B5 BtlsteEliaR aF
8l:1steaiaRS afiRe SfJeeial ~4jReFal IR\restFfieRt 1=HRS'S seel:iFities
""ith al:ltJ:teFi~' t8 Reid thB IHBRey realized fram tRese
seeHFities fJ8aeliAg eefHfJletieR sf aft ift\'estffteRt tTaRsaetieR if
tHe fRBAey Reid is reiRvested witkiR eRe lnisiRBSS day sf
reeeifJt iR iR\'estfft8Rts deteFFRiRea e~f the hears sf regeRts.
~qeRey Ret reiAYestea witkin eRe InlsiR8ss Ela~,. sf reeeifJt sRall
he ee19ssiteel iR tHe state tr=eeSl:iry Ret later taeA tl:le fiftH ela;'
after the eate sf reeei19t. IR tJ:.e jHElgffleRt sf tHe hears, tHis]
special fund may be invested so as to produce [ftIl] 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 pennanent
improvements and in payment of expenses incurred in
connection with the administration of this subchapter. The
unexpended income likewise may be invested as [ftereift]
provided by this section.
(b) The income from the investment of the special mineral
investment fund created by [ItfI6ef) Subsection (a) ref tRis
seelieR) shall be deposited in [Ie llle eFeail ef] 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 [sllall lle allllFellriatea
148 11.148.310
Senate Bill 1811
lJy the legisIatHFe eJ(eltisi"el~' fer tJ:\e l::lRiversity ~!steFN fer dte
fJH~eses J~eFeiA f)FevieleEl].
(c) The board shall lease for oil, gas, sulphur, or other 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 [tllB SlatB tFBlt5l1F)' tB tllB eFBait et] 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 universitv and is[;] to be used
exclusively for the universitv [Te,,&s A&M URivBFSil':l'
KiRgs',.jlle] and its branches and divisions. [MeRe)' ffi&:/' Ret
Be el£fleRseei fi:sm this FYflB BJieept 8S 8l:l1Asrirzeei ey lRe
geRer:al 8f3f3F8J3fiatieRS Bet.]
(d) All deposits in and investments of the fund under this
section shall be made in accordance with Section 51.003 i.
(e) Section 34.017. Natural Resources Code. does not apply to
funds created bv this section.
No equivalent provision. No equivalent provision. SECTION 72.04. Section 95.36(b), Education Code, is
amended 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 [tilB StatB
TFeaslIF)' te tllB BrBa;t et] 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 lind its component institutions and ish] to be used
exclusively for those entities. All deposits in and investments
149 11.148.310
Senate Bill 1811
of the fund shalt be made in accordance with Section 51.0031.

Section 34.017. Natural Resources Code. does not apply to the
fund [tAe tlRiversit;' 5"stefR BREI t~e HRiversities in tRe ~'steRl.
Heweyer, Ae lHeRe~· sJ::iall ever he enfJeAelee freffi this fl:!Rd
e:lsel3t 85 8Htk8rizeEl h~' the GeR8FaI AfJfJF8fJFiatieRS Aet].
No equivalent provision. No equivalent provision. SECTION 72.05. Section 109.61 (b), Education Code, is
amended as follows:
(b) Any money received by virtue of this section shalt be
deposited in [tile state treas",~' te the eresit et] 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. [l-IeW8\<8f, Ae ffieRe~t shall ever he
eUfJ8ReleEl Half! tRis fYfUI 8HeefJt as 81:1t"R8rizeel 9)' the general
allllrellriatieRs aet.]
No equivalent provision. No equivalent provision. SECTION 72.06. Sections 109.75(a) and (c), Education Code,
(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 [iR the state treBS"'')'] as specified in Section 109.61 ref
this eese] and used as provided in that section.
(c) The commissioner of the general land office shall 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,
150 11.148.310
Senate Bill 1811
sulphur, or other minerals and that are deposited in [ft!ffteEI

iRte) the special fund as provided by Section 109.61 [i<HIle
slate IreasNry) during the preceding month.
No equivalent provision. No equivalent provision. SECTION 72.07. Section 109.78(b), Education Code, is
amended 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 [eefA)llreller) for deposit to the credit ofthe Texas Tech
University special mineral fund as provided by Section
109.61.
No equivalent provision. No equivalent provision. SECTION 72.08. Section 85.72, Education Code, is repealed.
No equivalent provision. No equivalent provision. SECTION 72.09. This article takes effect September 1,2011.
No equivalent provision. No equivalent provision. ARTICLE 73. FOUNDATION SCHOOL PROGRAM

FINANCING; CERTAIN TAX INCREMENT FUND
REPORTING MATIERS

make thefina/ determination on this issue.)
No equivalent provision. No equivalent provision. 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
'.
lSI 11.148.310
•
•
Senate Bill 1811
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.
(c) This section expires September 1,2013.
No equivalent provision. No equivalent provision. ARTICLE 74. CRIMINAL BACKGROUND CHECKS FOR
CERTAIN INTERSCHOLASTIC SPORTS OFFICIALS

imposed on itsjurisdiction. but only the presiding officer can
SECTION 74.01. SECTION 74.01. Subchapter D Chapter 33,

Education Code, is amended by adding Section 33.085 as
follows:
SECTION 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.
(c) The University Interscholastic League may refuse to allow
a person to act as a sports official for interscholastic athletic
152 J 1.148.310
Senate Bill 1811
competition if a criminal background check conducted under

league ru les reveals a conviction of:
(n 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 ITaudulent or
unauthorized means to obtain or alter registration to serve as a
sports official for interscholastic athletic competition.
(Ol 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.
No equivalent provision. No equivalent provision. ARTICLE 75. FISCAL MATIERS RELATED TO PUBLIC
SCHOOL FINANCE

No equivalent provision. No equivalent provision. SECTION 75.01. Effective September I, 2011, Section
12.106, Education Code, is amended by amending Subsection
(a) and adding Subsection (a-3) 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 42.25 J6(j) multiplied
153 11.148.310
•
Senate Bill 1811
•
!lx the amount of funding per student in weighted average

daily attendance, excluding enrichment funding under
Sections 42.302(a-I)(2) and (3), as they existed on January I,
2009, that would have been received for the school during the
2009-20 I0 school year under Chapter 42 as it existed on
January I, 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.
No equivalent provision. No equivalent provision. SECTION 75.02. Effective September I, 2017, Subsection
(a), Section 12. I06, Education Code, is amended 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) tAe 8fft8HRt sf ftlReliRg flef styes"! in weighted 8VeFage
Elaily a~eREIaRee, el(ehu:liRg eRFieRffieRt fitReliAg \::IRSer
SeatieRS 42.3Q2(a 1)(2) aRe (3), as tRey e:dsteel en J8RHe,,· 1,
2QQ9, tHat waHle Rave heaR Fassives feF d~e sekee] ehiFiRg the
29992919 seheel yaM HRser Chapter 42 85 it eniSles 8R
lsRH8f)' 1,2999, aRa 8n aeaitieRal 8fflBHRt sf $129 fer €laek
stiteleR! in weigl:tteEl 8V8Fage daily et:teREIaRee; SF
154 11.148.310
Senate Bill 1811
[~) 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 [aRs witl:tetlt 8A)' leeal FeYeAye fer JnlFf38ses sf SeetisR
42.23\(;).
No equivalent provision. No equivalent provision. SECTION 75.03. Effective September I, 201 I, Section
21.402, Education Code, is amended by amending
Subsections (a), (b), (c), and (c-I) and adding Subsection (i)
as follows:
(a) Except as provided by Subsection (d)[~) or (t), 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=SFx 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) [5!lHe
eRa laeel {HRSS per '",sigkted ShuleRt, inelHsing fYR8S
pr8viaee HRtler Seetien 42.2319, avaiJel:Jle fa a eliswiet eligiele
fa reeeive state 85sisHlAee HRser SeetieR 42.3g~ witl:t 8
ffiainteRftnee BRB 8peF8tisflS ta:'l fate flap $lQQ eftftH8ele '1'811:18 .' •.
155 11.148.310
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Senate BiJl1811
Section.by·Section Analysis .
8EJYBI t8 the fJre«:ltJet sf tke state eSFAfJf8SsisA )38reeAtage 8S
7
eeteRflifleEl l:iRElef SeetisR 42.231~) FAultiflliee1 e~' $1.5Q,

8!iesfJt that tRe 8FA8'tiRt sf state aREI leeal f1:lA8S per 'NsigHtee
stuseR! sees Ret ineluse the 8FA8l:lAt attrisl::Itaele t6 the
iR8FeBSe iF! tRB gH8r8Rteea 18,'81 FAaEle 13~· CReflte, 1187, Aets
afll!e 7711! Legislal~Fe, Reg~laF SessieR, 2QQlj.
(b) Not later than June I 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)
[affi8HRt sf state BAe leeal HIRes per weighted stNeeRl
availal:11e, fer f11:1Ff)8ses sf SUBseetieA (a), ta Q elisH'iet
ElessrieeEll=Jy tREK sYBseetieR feF thB f'aliewiRg seReel yesr].
(c) The salary factors per step are as follows:
Years Experience o 2 3 4
Salary FaclOr <464 [~l ~ [~J ~ (,64ll;lJ ~ (,eQ+J ~ [-J
Years Experience s 6 7 8 9
Salary FaClor .§.lU [~J M@[.'14+4J &122 [~l 7008 (~]..lli.1 [=J
Years EXperience 10 II 12 13 14
Salary Factor ..z±Q! (ril44l-] ~ I-J.112l! 1~1.121!![~J.IDll!2[~J
Years Experience IS 16 17 18 19
Salary FaclOr ~[-J~[-J ~[.%ll+]~[~J 8744 [,l)9Q]
Years Experience 20 and over

Salary FaclOr ~ [-hQQ9]
(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
156 11.148.310
Senate Bill 1811

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.
(c-I) Notwithstanding Subsections [£~"seetieR] (a) and (b)[;
fertile 2QQ9 2QjQ aREl2QIQ 2QII sekeel )'ears], each school
district shall pay a monthly salary to [iRerease tke AlaRtk()'
sala!';' af] 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 [~] greater ref]:
Years of Experience Monthly Salary
Q 2,732
1 2,791
I 2,849
1 2,908
1 3,032
~ 3,156
§ 3,280
1 3.395
! 3,504
.2 3,607
lQ 3,704
11 3,796
II 3,884
II 3,965
H 4,043
li.. 4,116
12 4,186
157 11.148.310
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Senate Bill 1811
•
11 4,251
~ 4.313
li 4.372
20& Over 4,427
[(1) $89; 8F
[(2) the ffi8UifRHRl
HHifeFffi 8ffiBI::iRt dUN, 'vReR eeRiBiRee with
aAy resHltiAg iRGresses if! ~e affleNRt sf eSRwietttieRS fRaEle
e~r the tiistriet fer saeia] sesuR!?' ee t/8r8ge fer the speeifieEl
eRlflleyees BF B)' tke Elistriet eA aehalf sf the sJ:1eeitieEl
8FApleyees HRser SeeliG" 825.4QS, GeV8FRIH8Rt Ceee, ffia~,. Be
fJr8vieleEi l:Isifig aR 8FRBHRt BetHel 1a tAe flF8ehiet sf S,g
lTlultiplied 13)' ike RIiRlSer sf stt:lSeRts in weigliteel average
sail)' MteRsaRee iR tAB seheel sHring the 2QQ9 2Q I Q seReel
~l
(il Not later than January I. 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 secondaD' education a written report that
evaluates and provides recommendations regarding the salary
schedule. This subsection expires September I. 2013.
No equivalent provision. No equivalent provision. SECTION 75.04. Effective September I, 2017, Section
21.402, Education Code, is amended by amending Subsection
(a) and adding Subsection (e-I) as follows:
(a) Except as provided by Subsection (d). ~ (Wl, or (t), 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:
158 11.148.310
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MS=SFxFS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as detennined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
42.10](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 bv Section 42.10 I (a) [5lete
BAd lesal AiRes fieF weig~teEi Sh:IEleR~ iRehuliRg FuJuis
-pfsvieiee uRaar SeetieR 42.2§ l~, EwailBhle ta a elistriet eligible
ta passive S1ma BssistaRee HAser SeetieR 42.392 witA a
maiRteR8Ree aRe 8fJ8mtieAS ta-K Fate ):'SF $1 gg 8f tenahle v81Me
etlt:tal 18 tke fJF8Ehiet sf tlla state eefflpressieR fJ8reeRtage, 85
EleteRfliReEl liAder SeetisA 42.251 (t, IfII:dtifJlieel e~' $1.59,
eus8fJt tftat tke amaH"! sf state aHa leeal Hinds fief weigllteEi
shu:leRt sees Ret iRehule tRe amaH"! Mkiluitellie ta tke
iReRRse in the gt:!cfeRteee! le'.'c! ffiUS8 ey CHapter 1187, Acts
eftAe 77th Legislatlue, Regl:llsr SessieR 2QQl].
(e-I) If the minimum monthly salary detennined 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 monthlv salary is the minimum
monthly salarv for the preceding year.
No equivalent provision. No equivalent provision. SECTION 75.05. Subsection (a), Section 41.002, Education
Code, is' amended as follows:
(a) A school district may not have a wealth per student that
exceeds:
(I) 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 .•
159 11.148.310
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•
revenue per cent of tax effort equal to the maximum amount

provided per cent under Section 42.lOl(a) or (b) [~l, 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-l); 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.
No equivalent provision. No equivalent provision. 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 [ALLOTM~ITl.
No equivalent provision. No equivalent provision. SECTION 75.07. Section 42.101, Education Code, is
amended by amending Subsections (a) and (b) and adding
Subsections (c) and (c-l) as follows:
160 11.148.310
Senate Bill 1811
(a) The basic [168' seeh st\::IaBRt iH average elai~' aMeR9aAee,

Ret iRel~eliRg tAB tiJTIB stYe eAts Sf)eR8 aasR Bay in sJ3eeial
eehieatieR I9Fsgr8ms in an iAstFUetisAal BFF8AgeAlBRt etHer tkaR
ffisiAstream SF eareer BRei teekRelegy edlJeatisR ~F8gFaMs, fer
wHisk an aEielitieRal alletFRBRt is RlBae HAaer Sl:IsShapteF C, 6
sistriet is entitles te 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 (DCRlMCR)
where:
"A" is the resulting amount for [alletffient te wlliell] a district
[is entitles];
"DCR" is the district's compressed tax rale, which is the
product of the state compression percentage, as determined
under Section 42.2516, multiplied by the maintenance and
operations tax rale 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.
(c) A school district is entitled to a regular program 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 dailv 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 "
161 11.148.310
Senate Bi1l1811
•
DrOlmlmS, 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 42.1 03: and
"RPAF" is the regular prolmlm adjustment factor, which is an
amount established by appropriation.
ec- J) Notwithstanding Subsection ecl. the regular program
adjustment factor e"RPAF") is 0.9239 for the 2011-2012
school year and 0,98 for the 201 2-201 3 school year. This
subsection expires September 1,2013.
amended 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 prolmlm [aR ae!jasteel basi) 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 [aR aeljasteel basie)
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 [aeljasleeillasie)
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
162 11.148.310
Senate Bill 1811
bus route from the nearest high school district.
No equivalent provision. No equivalent provision. SECTION 75.09. Subsection (a), Section 42.25 I, Education
(a) The sum of the regular program [b&sie] 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.
No equivalent provision. No equivalent provision. SECTION 75.10. Subchapter E, Chapter 42, Education Code,
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 pav into the tax increment fund for a reinvestment
zone under Section 31 1.013(n). Tax Code.
No equivalent provision. No equivalent provision. SECTION 75.11. Effective September I, 201 I, Section
42.2516, Education Code, is amended by amending
Subsections (a), (b), (d), and (f.2) and adding Subsection (i) as
follows:
(a) In this title [seetieR], "state compression percentage"
means the percentage[, as eleteRHiRe~ ey tHe eeFRFflissisReF,]
of a school district's adopted maintenance and operations tax
rate for the 2005 tax year that serves as the basis for state
funding [far t~( Fate reSystieR I:lReer tJ:iis seetieR]. If the state
compression percentage is not established by appropriation for
a school vear. the [+Ile] commissioner shall determine the '.
163 11.148.310
~,
Senate Bill 1811


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
403.1 09, 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), [tke &lTleYRt] 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 I, 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 $ J20 multiplied by the number of
students in weighted average daily attendance in the district;
and
(3) [8" aJflS\lRt BEtHel fa the 8Ri8HRt the f:tisf:fiet is reEJHireEi ta
pa-y iAts ~e t8?i iRerelflBRt fYR8 fer a FeiRvestJReRt i!8RB HRser
SeetieA 311.913(8), Tan CeEle, in tHe StiffeR. tau year; anEi
164 11.J48.310
Senate Bill 1811
[f411 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)(I), the commissioner shall:
(I) include the percentage specified by Subsection (i) of any
amounts received by the district during the 2008-2009 school
year under Rider 86, page 111-23, Chapter 1428 (H.B. I), 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. I) must:
(I) 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-I)(I), (2),
(3), or (4) on the torai 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
(Q)(J) [~l 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)(l) and (2) and Subsection (d)(]) 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. ·t
165 11.148.310
Senate Bill 1811
No equivalent provision. No equivalent provision. SECTION 75.12. Effective September 1,2017, the heading to
Section 42.2516, Education Code, is amended as follows:
Sec.42.2516. STATE COMPRESSION PERCENTAGE
[ADQITlmlAL STATe AID fOR TAX ReDUCTlml].
(a), Section 42.2516, Education Code, is amended as follows:
(a) In this title [5eeli8R], "state compression percentage"
means the percentage[, as EleteAflifleEl sy tke eeffimissieReF,]
of a school district's adopted maintenance and operations tax
rate for the 2005 tax year that serves as the basis for state
funding [fer tau fate feet:letieR HRser this seetieA]. lfthe state
compression percentage is not established by appropriation for
a school year. the [+ile] 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 [sistFillHli8R HRser IRis seeli8R fer] 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.
(a), Section 42.25161, Education Code, is amended 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(;) of
$120 greater than the amount the district would have received
166 11.148.310
Senate Bill 1811
per student in weighted average daily attendance during the

2009-20 I0 school year under this chapter, as it existed on
January I, 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.
No equivalent provision. No equivalent provision. SECTION 75.15. Subchapter E, Chapter 42, Education Code,
Sec. 42.2525. ADJUSTMENTS FOR CERTAIN
DEPARTMENT OF DEFENSE DlSTRICTS. The
commissioner is granted the authority to ensure that
Deoartment of Defense school districts do not receive more
than an eight percent reduction should the federal government
reduce appropriations to those schools.
No equivalent provision. No equivalent provision. SECTION 75.16. Effective September I, 2011, Subsections
(h) and (i), Section 42.253, Education Code, are amended 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 I 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 0), the commissioner shall
167 11.I48.310
,
Senate Bill 1811
'.
adjust [reffiIee] 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 4 t
[aRlSHAt sf slate fHAas allseatea ts eaeil aistriet] 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 [8 Hletl:l8e HABer WHisk tJ:te 8fJfJlieatisA sf tHe saffle
"limBer sf seRts sf iRerease iR t8if Fffie iR all elistriets 8f)fJliea
fa tJ:te t9-1£81318 ,'allie sf J:JfefJeF~Y sf aaek elistfiet, as eete~iAeEl
HRser S1:isshaftter Pit, Cl:t8flter 4QJ, Ce'leFRfReRt Ceee,] results
in an amount [a telal le\'y] 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 [reaHelieA. Tile
fellewiAg assaI year, a elistriet's BRtitlemeRt HRser .Ris seetieR
is iR8reasea ~. an 8ffi8tlRt BEtHel fa tkB reSYetieR fRees t:lASer
£.Ris sl:lBseetisa].
(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.
No equivalent provision. No equivalent provision. SECTION 75.17. Effective September 1, 2017, Subsection
(h), Section 42.253, Education Code, is amended as follows:
(h) If the amount appropriated for the Foundation School
168 1J.148.31 0
Senate Bill 1811

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 0), the commissioner shall
adjust [re6tiee] the total amounts due to each school district
under this chapter and the total amounts necessarY for each
school district to complv with the requirements of Chapter 41
[ameHRt efstate fHRElS alleeateel 18 saeR Elistriet] by an amount
determined by applying to each district the same percentage
adjustment so that the total amount of the adjustment to all
districts [a iiiCth8el i:iiieer ",..-liteh tltt:: lifJplieatiEHI tiC ih~ £tlFH~
Al::llfleer sf eeRts sf iR6rease iR tan Fate iR aU e\istriets BfJfJliea
Ie the ta1l:Hhle valHs sf ~FeJgeF~Y sf aaeR elistriet, as eeteffAiRed
IIRaer SlIa"Rapler M, GRapIer 41)3, Ge\'eFRR'lesl Geae,] results
in an amount [a lelal le\'}'] 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 [reall"lies. TRe
fellewiflg fisee) year, a elistriet's anti.lameR! tuuler tRis seetisR
is iRereasee B)' 8:R 8fM8t1Rt eti1::lal 18 tHe reeHetieR made HRaer
III is slIase"li es].
amended by amending Subsection (a) and adding Subsection
(a-I) as follows: t'
169 11.148.310
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Senate Bill 1811

l'

(a) If a school district has received an overallocation of state
funds, the agency shall, by withholding from subsequent
allocations of state funds for the current or subsequent school
year or by requesting and obtaining a refund, recover from the
district an amount equal to the overallocation.
(a-1) Notwithstanding Subsection (a). the agency may
recover an overallocation of state funds over a period not to
exceed the subsequent five school years if the commissioner
determines that the overallocation was the result of
exceptional circumstances reasonably caused by statutory
changes to Chapter 41 or 46 or this chapter and related
reporting requirements.
No equivalent provision. No equivalent provision. SECTION 75.19. Subsection (b), Section 42.260, Education
(b) For each year, the commissioner shall certify to each
school district or participating charter school the amount ofT:
[fBl additional funds to which the district or school is
entitled due to the increase made by H.B. No. 3343, Acts of
the 77th Legislature, Regular Session, 200 I, to:
ill [~l the equalized wealth level under Section 4 I.002; or
ill [tB11 the guaranteed level of state and local funds per
weighted student per cent of tax effort under Section 42.302 t
ef
[(2) aElelitieRal stsa aiel te ',..JiieR tHe distfiet SF seReet is
eatitleElHReler SeetieA 42.2$13].
amended by adding Subsection (g-I) as follows:
(g-I) If the rate calculated under Subsection (c)(5)(A)(iilCb)
decreases after the publication of the notice required by this
section. the president is not required to publish another notice
or call another meeting to discuss and adopt the budget and
170 11.148.3 10
Senate Bill 1811

the oroposed lower tax rate.
No equivalent provision. No equivalent provision. SECTION 75.21. Subsection (a), Section 26.05, Tax Code, is
amended as follows:
(a) The governing body of each taxing unit, before the later of
September 30 or the 60th day after the date the certified
appraisal roll is received by the ta.xing unit, shall adopt a tax
rate for the current tax year and shall notify the assessor for
the unit of the rate adopted. The tax rate consists of two
components, each of which must be approved separately. The
components are:
(I) for a taxing unit other than a school district, the rate that,
if applied to the total taxable value, will impose the total
amount published under Section 26.04(e)(3)(C), less any
amount of additional sales and use tax revenue that will be
used to pay debt service, or, for a school district, the rate
calculated [~~Blishea] under Section 44.004(c)(5)(A)(ii)(b),
Education Code; and
(2) the rate that, if applied to ihe toiai taxabie vaiue, wiil
impose the amount of taxes needed to fund maintenance and
operation expenditures of the unit for the next year.
(i), Section 26.08, Tax Code, is amended as follows:
(i) For purposes of this section, the effective maintenance and
operations tax rate of a school district is the tax rate that,
applied to the current total value for the district, would impose
taxes in an amount that, when added to state funds that would
be distributed to the district under Chapter 42, Education
Code, for the school year beginning in the current tax year
using that tax rate, [iRel~aiRg state flIRaS that will lle
ElistFitnlteei fa tHe elistFiat in lRBt sekee) )'eaF HAser Seetien
42.2$ 16, ea~eatieR beae,] would provide the same amount of
171 I J.I48.310
Senate Bill 1811
"
state funds distributed under Chapter 42, Education Code,

[iReh:lsiRg stMe H:JRelS distrieutee liReeF £eetieA 42.251 a,
BSlIeatieR Cese,] and maintenance and operations taxes of the
district per student in weighted average daily attendance for
that school year that would have been available to the district
in the preceding year if the funding elements for Chapters 41
and 42, Education Code, for the current year had been in
effect for the preceding year.
No equivalent provision. No equivalent provision. SECTION 75.23. Subsection (n), Section 311.013, Tax Code,
is amended as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 403.302(d),
Government Code, is reduced in accordance with Subdivision
(4) of that subsection. In addition to the amount otherwise
required to be paid into the tax increment fund, the district
shall pay into the fund an amount equal to the amount by
which the amount of taxes the district would have been
required to pay into the fund in the current year if the district
levied taxes at the rate the district levied in 2005 exceeds the
amount the district is otherwise required to pay into the fund
in the year of the reduction. This additional amount may not
exceed the amount the school district receives in state aid for
the current tax year under Section 42.2514. Education Code.
The school district shall pay the additional amount after the
district receives the state aid to which the district is entitled
for the current tax year under Section 42.2514. Education
Code.
No equivalent provision. No equivalent provision. SECTION 75.24. Effective September 1,201 I, the following
provisions of the Education Code are repealed:
(I) Subsections (c-2), (c-3), and (e), Section 21.402;
(2) Section 42.008; and
172 11.148.310
Senate BiII1811

(3) Subsections (a-I) and (a-2), Section 42.1 01.
No equivalent provision. No equivalent provision. SECTION 75.25. (a) Effective September I, 2017, the
following provisions of the Education Code are repealed:
(1) Section 41.0041;
(2) Subsections (b), (b-1), (b-2), (c), (d), (e), (t), (f-l), (f-2),
(f-3), and (i), Section 42.2516;
(3) Section 42.25161;
(4) Subsection (c), Section 42.2523;
(5) Subsection (g), Section 42.2524;
(6) Subsection (c-l), Section 42.253; and
(7) Section 42.261.
(b) Effective September I, 2017, Subsections (i-I) and (j),
Section 26.08, Tax Code, are repealed.
No equivalent provision. No equivalent provision. SECTION 75.26. (a) The speaker of the house of
representatives and the lieutenant governor shall establish a
joint legislative interim committee to conduct a
comprehensive study of the public school finance system in
this state.
(b) Not later than January 15, 2013, the committee shall make
recommendations to the 83rd Legislature regarding changes to
the public school finance system.
(c) The committee is dissolved September 1,2013.
No equivalent provision. No equivalent provision. SECTION 75.27. It is the intent of the legislature, between
fiscal year 2014 and fiscal year 2018, to continue to reduce the
amount of Additional State Aid For Tax Reduction (ASATR)
to which a school district is entitled under Section 42.2516,
Education Code, and to increase the basic allotment to which
a school district is entitled under Section 42.101, Education
Code.
173 11.148.310
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Senate Bill 1811
•
No equivalent provision. No equivalent provision. SECTION 75.28. Except as otherwise provided by this Act,
the changes in law made by this Act to Chapter 42, Education
Code, apply beginning with the 2011-2012 school year.
No equivalent provision. No equivalent provision. SECTION 75.29. The change in law made by Subsection (g-
I), Section 44.004, Education Code, as added by this Act,
applies beginning with adoption of a tax rate for the 2011 tax
year.
No equivalent provision. No equivalent provision. ARTICLE 76. MIXED BEVERAGE TAX

REIMBURSEMENTS
Section 76.01. Effective September I, 2013, Section

183.051(b), Tax Code, is amended as follows:
(b) The comptroller shall issue to each county described in
Subsection (a) a warrant drawn on the general revenue fund in
an amount appropriated by the legislature that may not be less
[gFealeF) than 10.7143 percent of receipts from permittees
within the county during the quarter and shall issue to each
incorporated municipality described in Subsection (a) a
warrant drawn on that fund in an amount appropriated by the
legislature that may not be less [gFealeF) than 10.7143 percent
of receipts from permittees within the incorporated
municipality during the quarter.
174 I I.148.310
\1.
LEGISLATIVE BUDGET BOARD

Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
May 28, 2011
TO: Honorable David Dewhurst, Lieutenant Governor, Senate

Honorable Joe Straus, Speaker of the House, House of Representatives
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SBI811 by Duncan (Relating to certain state fiscal matters; providing penalties. ),
Estimated Two-year Net Impact to General Revenue Related Funds for SB1811, Conference Committee
Report: a positive impact of $7,696,187,978 through the biennium ending August 31, 2013.
The bill would also result in a $141,680,500 loss to the Propert)' Tax Relief Fund 304 for the biennium
ending August 31, 2013. Therefore the bill would have a net positive impact of $7,554,507,478 to
General Revenue funds for the biennium.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to
implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact:
Probable Net Positivel(Negative)

Fiscal Year Impact to General Revenne Related
Funds
2012 $2.088,294,665
2013 $5,607,893,313
2014 $1,427,686,821
2015 $2,152,333,371
2016 $2,157,395,571
All Funds, Five-Year Impact:
Probable Savings! Probable Savings! Probable Savings! Probable Savings!

Fiscal Year (Cost) from New ~~~:~~';:enue ,(Cost) from (Cost) from
General Revenue Fund D d' al d Oil d G Oil-field Cleanup Acet Federal Funds
1 e Ie e - an as 145 555
Acet
2012 $1,989,994,729 ($50,300,000) $27,500,000 (SII,413,511)
2013 $2,123,894,822 ($50,300,000) $27,500,000 ($11,385,468)
2014 $1,759,194,330 ($50,300,000) $27,500,000 ($11,385,468)
2015 $1,990,419,330 ($50,300,000) $27,500,000 (SI1,385,468)
2016 $1,990,594,330 ($50,300,000) $27,500,000 ($11,385,468)
I of 13
Probable Savings! Probable Savings!
Probable Savings! Probable Savings!
(Cost) from (Cost) from
(Cost) from (Cost) from
Fiscal Year Foundalion School Other SpecUd Stote
GR Dedicoted Accounts Stote Highway Fund
Fund Funds 6
994
193 998
2012 ($11,750,000) ($2,037,712) ($9,569,872) ($10,850,382)
2013 52,301,788,000 ($2,032,706) ($9,546,359) ($10,823,723)
2014 $0 ($2,032,706) ($9,546,359) ($10,823,723)
2015 $0 ($2,032,706) (59,546,359) ($10,823,723)
2016 $0 ($2,032,706) ($9,546,359) ($10,823,723)
Probable Savings!
Probable Revenne
(Cost) from Probable Revenue Probable Revenue
Ga/nI(Loss) from
RETIRED SCHOOL Gainl(Loss) from Gainl(Loss) from
Fiscal Year Petro Sto Tank Remed
EMPGROUP Generol Revenue Fund Stote Parks Acct
Acct
INSURANCE 1 64
655
989
2012 $0 $110,049,936 $21,124,000 $1,600,000
2013 ($133,675,492) $1,316,548,491 $23,663,000 $1,600,000
2014 $0 ($465,845,509) $23,807,000 $1,600,000
2015 $0 $161,914,041 $23,937,000 $1,600,000
2016 $0 $166,801,241 $2,007,000 $1,600,000
Probable Revenue Probable Revenue

Gainl(Loss) from Galnl(Loss) from
Gainl(Loss) from Gainl(Loss) from
Fiscal Year New General Revenue Tx Preservation Trust
Oil-Jield Cleanup Acet Insurance Trust Fund
Dedicoted - Oil and Gas Acc
145 973
Acct 664
2012 $79,097,500 ($55,201,000) 510,089,461 $105,424,456
2013 $48,897,500 ($25,111,000) $0 $105,224,458
2014 $48,897,500 ($25,268,000) $0 $105,224,458
2015 $48,897,500 (525,483,000) $0 5105,224,458
2016 $48,897,500 (525,696,000) $0 $105,224,458
Probable Revenue Probable Revenue Probable Revenue Probable Revenue

Galnl(Loss) from Gainl(Loss) from Gainl(Loss) from Gainl(Loss) from
Fiscal Year DIR Clearing Fund Telecommunications DIR Clearing Fund Telecommunications
Account -AR Revolving - AR Account -lAC Revolving - IA C
8122 8123 8124 8125
2012 $272,351 5226,863 $116,722 51,550,119
2013 $256,572 5221,938 $109,960 $1,506,890
2014 $0 $0 $0 $0
2015 $0 $0 $0 $0
2016 $0 $0 50 50
Probable Revenue Probable Revenue Probable Revenue Probable Revenue

Gainl(Loss) from Gainl(Loss) from Gainl(Loss) from Gainl(Loss) from
Fiscal Year Statewide Technology Tobacco Children & Public Ems & Trouma Care
Account -lAC EducotionlEnforce Health Account
8126 5044 5045 5046
2012 $365,729 $10,562,519 $5,281,258 $5,281,258
2013 $344,541 $28,481,408 $14,240,704 $14,240,704
2014 $0 50 $0 $0
2015 $0 50 $0 $0
2016 $0 50 $0 $0
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Probable Revenue
Gain/(Loss) from Probable Revenue
Fiscal Year Oper & Chauffeurs Lie Gain/(Loss) from Gain/(Loss) from
Gain/(Loss) from
Ac Counlies and SpecUlJ
CUies TmnsiJ AUlhormes
Districts
99
2012 $0 $16,824,000 $4,975,000 S3,830,OOO
2013 $0 $18,745,000 $5,175,000 S5,249,OOO
2014 (S2I,3oo,ooo) $20,388,000 $5,275,000 $6,693,000
2015 ($21,300,000) 821,127,000 $5,475,000 S6,943,OOO
2016 (S21,3OO,000) $21,871,000 S5,675,000 87,198,000

Probable Reveuue Probable Revenue
Gain/(Loss) from Gain/(Loss) from
Galn/(Lnss) from Gain/(Loss) from
Fiscal Year Property Tax Relief Jud & Court Training
Available School Fund Slale Highway Fund
Fund Fd
2 6
304 540
2012 (S71 ,684,750) (SI1,716,ooo) $0 $0
2013 ($69,995,750) ($10,660,000) ($134,338,000) $403,016,000
2014 S5,557,250 ($10,660,000) SI34,338,Ooo $403,016,000
2015 S5.727,250 ($10,660,000) SO SO
2016 S5,31 1,000 ($10,660,000) SO SO
Probable Revenue
Gain/(Loss) from Change In Number of
Fiscal Year New General Revenue Slate Employees from
Dedicaled - Iud Ed FY 2011
Accl
2012 $11,716,000 14.0
2013 SIO,660,ooo 14.0
2014 $10,660,000 14.0
2015 SIO,660,Ooo 14.0
2016 SIO.660,ooo 14.0
Fiscal Analysis
Article 1 would defer the Foundation School Program (FSP) payment to school districts scheduled for
August of fiscal year 2013 to not earlier than September 5th of the following fiscal year.
Article 2 would implement a recommendation in the report, "End the Use of General Revenue Funds
to Pay for Insurance Company Examinations," in the Legislative Budget Board's Government
Effectiveness and Efficiency Report, submitted to the Eighty-second Texas Legislature, 2011, by
repealing insurance premium tax credits for examination fees. This provision would apply to
examination fees or evaluations paid in calendar year 2012 or 2013 and the provision would expire on
January 1,2014,
Article 3 would partially implement recommendations from the report, "Strengthen Sales Tax
Enforcement Related to Customs Brokers and Increase the Charge for Export Stamps." in the
Legislative Budget Board's (LBB) Government Effectiveness and Efficiency Report submitted to the
Eighty-Second Legislature, 2011, The bill would amend Chapter 151, Tax Code relating to customs
brokers, The bill would eliminate the requirement that the comptroller provide an alternate method to
show documentation of exemption of tangible personal property when the website for such
documentation is unavailable. The bill would provide that the comptroller may suspend or revoke a
customs broker license if the licensee does not comply with statute or issues false documentation. The
bill would require thai export documentation include a declaration that the customs broker or
authorized employee inspected the property and the original receipt for the property. The bill would
increase the charge for each export stamp from $1.60 to $2.10 and require the increase to be used for
enforcement of the laws relating to customs brokers.
Article 4 would partially implement recommendations from the report, "Phase out Economic
Development Tax Refunds," in the Legislative Budget Board's (LBB) Government Effectiveness and
Efficiency Report submitted to the Eighty-Second Legislature, 2011. This bill would repeal
Subchapter F of Chapter III of the Tax Code, regarding tax refunds for certain ad valorem taxpayers
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in reinvestment zones.
Article 5, relating to tax records, would amend the Occupations Code and the Tax Code to extend the
amount of time that taxpayers must keep records such as electronically stored images of documents.
Specifically, Section 111.0041 of the Tax Code would be amended to extend the time to at least four
years that taxpayers would be required to maintain records to substantiate and verify a claim regarding
the taxes, penalties, and interest. Conforming changes would be made elsewhere in the Tax Code and
the Occupations Code.
Article 6 would implement the recommendation in the report, "Reduce the Unclaimed Property
Dormancy Period for Certain Property Types" in the Legislative Budget Board's Government
Effectiveness and Efficiency Report, submitted to the Eighty-second Legislature, 2011. It would
decrease the unclaimed property dormancy period for utility deposits from three years to one year;
money orders from seven years to three years; and bank deposits, savings accounts, and matured
certificates of deposits from five years to three years. The bill would increase the maximum service,
maintenance, or other charge from 50 cents to $1 that money order companies can assess before the
property is defined as abandoned under the Property Code. Article 6 would move the deadline for
businesses to transfer unclaimed property to the Comptroller from November 1 to July 1. As a result,
three unclaimed property transfers would occur in the 2012-13 biennium. There would be two
transfers in all future biennia, but with a new July I st transfer deadline. Article 6 would also authorize
the Comptroller to sell unclaimed securities upon receipt from the companies that hold them, as well
as from time to time. Current law does not specifically permit the Comptroller to sell securities upon
receipt.
Article 7 of the bill would change the classification of the Judicial and Court Personnel Training Fund
No. 540 from Other Funds to a dedicated account within the General Revenue Fund.
Article 8 of the bill would amend the Government Code to allow the Process Server Review Board to
recommend to the Supreme Court fees to be charged for the certification and renewal of certification
of process servers. The Supreme Court would have to approve the fees before the fees could be
collected. The proposed amendment also provides that the Office of Court Administration may collect
the fees and that the fees collected shall be sent to the Comptroller for deposit into the General
Revenue Fund. The bill would allow fees collected to be appropriated for the support of regulatory
programs for process servers and guardians.
Article 9 would amend the Water Code to extend the petroleum product delivery fee. Under current
law, the fee will not be collected after August 31, 2011. The bill would continue the fees with no
expiration date and at the same rate as in fiscal 201 I. The fee would continue to be imposed on the
delivery of virtually all petroleum products withdrawn from bulk storage at various rates on each
delivery, based on cargo tank capacity, and would range from $3.75 to $15 per delivery. According to
the Comptroller, revenues collected would be subject to a 2 percent service charge that would be
deposited to the General Revenue Fund, and the remaining receipts deposited to the GR-Dedicated
Petroleum Storage Tank Remediation Account No. 655.
Article 10 would impact the collection of certain motor fuel taxes. The bill would amend various
chapters of the Tax Code to require tax remittances on motor fuel taxes and delay the transfer of motor
fuels taxes from general revenue to the State Highway Fund and Fund 002 that would normally occur
in August 2013. The revenue would be deposited in September 2013.
Article 11 would impact collections of mixed beverage taxes and takes and fees on certain alcoholic
beverages. The bill would amend various chapters of the Alcoholic Beverage Code to require tax
remittances for the month of September to be paid in August for certain taxes in odd-numbered years.
Article 12 would reduce the cigarette tax distributors' discount from three percent to two and a half
percent.
Article 13 would amend Tax Code to redefine sale for resale. This provision would take effect
immediately if the bill received the requisite two-thirds vote of each chamber; otherwise, it would take
effect September 1, 2011.
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Article 14 would impact collections of sales and use taxes. The bill would amend various chapters of
the Tax Code to require tax remittances on sales and use tax.
Article 15 would amend statute regarding reports by wholesaler and distributors of beer, wine, and
malt liquor, as Section 151.461 in new Subchapter I-I, regarding reports by persons involved in the
manufacture and distribution of alcoholic beverages, and add IIew subsections with that subchapter.
Article 15 would expand who would be required by the Comptroller's Office to file a monthly report
on alcoholic beverage sales to retailers. Article 15 would provide the Comptroller the authority to
inspect and conduct audits to ensure compliance; impose civil and criminal penalties for violations;
bring forth a suit to enforce these provisions; and adopt rules to implement these provisions. The bill
would amend Chapter III of the Tax Code, regarding collection procedures for state taxes, to require
the Comptroller's Office to disclose information from the sales reports required under Section
151.4620f this Code.
Article 16, relating to the penalties for failure to report or remit certain taxes or fees, would amend the
Tax Code and the Health and Safety Code to add a penalty of $50 for a person who fails to file certain
reports required under the codes. The penalty would be in addition to any other authorized penalties,
and without regard to whether the person subsequently files the report or whether any taxes or fees
were due. The bill's provisions would apply to several taxes including the sales and use tax and motor
vehicle rental and seller financed taxes.
Article 17, regarding voter registration, would amend Chapters 18 and 19 of the Election Code to
remove the requirement that the Secretary of State (SOS) notify the Comptroller's Office of statutory
noncompliance by voting registrars, and when a registrar has corrected the violation and is
insubstantial compliance; remove the requirement that registrars submit notices to the Comptroller
regarding voter registrations; replace the Comptroller with the SOS in making authorized payments to
registrars; and repeal Section 19.002(c), which allows the Comptroller to require proof before issuing
a warrant.
Article 18, regarding certain powers and duties of the Comptroller of Public Accounts, to expand the
Comptroller's warrant hold offset authority to include state employee lump sum payments.
Article 19, regarding preparation and publication of certain reports and other materials, would amend
Chapter 61 of the Education Code and Chapter 5 of the Tax Code to require the electronic publication
of various reports. The Comptroller would be allowed to charge a reasonable fee to offset the costs of
preparing materials. The bill repeals Section 403.030, regarding information on economic
development activities, and 552.143(e) of the Government Code; and Chapter 379A of the Local
government Code, regarding a report to the Comptroller by municipal development corporations.
Article 20, regarding surplus lines and independently procured insurance, would amend Chapter
225and 226 of the Insurance Code to comply with the requirements of the Non- admitted and
Reinsurance Reform Act (NRRA) of 2010. Under the provisions of the bill, this state could not impose
a premium tax on non-admitted insurance for policies in which this state is not the home state of the
insured. If this state has not entered into a cooperative agreement or compact with another state for the
collection of non-admitted insurance tax, the tax would be computed on the entire premium for any
policy in which this state is the home state. If this state has entered into a cooperative agreement or
compact with another state, taxes due on multi-state policies would be allocated in accordance with
the agreement or compact. The bill would allow the Comptroller to establish an alternate basis for
taxation of non-admitted policies for the purposes of achieving uniformity. The bill would repeal
Insurance Code Sections 225.004(d) and (d-l), and Sections 226.053(b-l) and (c), which would
conflict with the provisions of NRRA.
Article 21 would end eligibility to redeem Early High School Graduation Scholarships awards issued
prior to fiscal year 2012 effective for fiscal year 2018 and would close the program to new awards
effective for fiscal year 2012. The bill would eliminate automatic transfers of funding from the
Foundation School Program (FSP) to the Texas Higher Education Coordinating Board (THECB) for
purposes of funding certain tuition exemption programs and repeal section 56.210 of the Education
Code.
5 of 13
Article 22 would allow the state contribution to the Teacher Retirement System (TRS) pension trust
fund for public education and higher education retirement to be less than contributions of active
members for the fiscal ending August 31, 2012.The bill would also allow the state contribution to the
TRS-Care insurance program to be less than 1.0 percent of total active payroll for fiscal year ending
August 31, 2013.
Article 23 relates to coastal erosion reporting.
Article 24 would implement a recommendation in the report, "Increase Private Contributions for State
Parks" in the Legislative Budget Board's Government Effectiveness and Efficiency Report, submitted
to the Eighty-second Legislature, 2011. The bill would establish a system in which motorists can
voluntarily donate $5 or more with the vehicle registration to the Texas Parks and Wildlife
Department.
Article 25 relates to oil and gas regulation.
Article 26 would implement a recommendation in the report, "Optimize the Use of State Parking
Facilities" in the Legislative Budget Board's Government Effectiveness and Efficiency Report,
submitted to the Eighty-second Legislature, 2011. The bill would expand the Texas Facilities
Commission authority related to the operations of state-owned parking lots and garages by authorizing
the agency to lease excess parking spaces and facilities.
Article 27 would eliminate the publication and distribution of bound copies of the General and Special
Laws of Texas (referred to as session law) by the Secretary of State following each session of the
legislation, replacing such information with an electronic version on the agency's website.
Article 28 would authorize three specific fees for the Office of the Attorney General.
Article 29 would authorize money in the Preservation Trust Fund to be used for operation expenses of
the Texas Historical Commission.
Article 30 would clarify the appropriate expenditure of revenue derived from the collection of fees
imposed by the Department of Information Resources.
Article 31 would implement a recommendation in the report, "Implement Strategies to Increase the
Transparency of the State Constitutional Debt Limit" in the Legislative Budget Board's Government
Effectiveness and Efficiency Report, submitted to the Eighty-second Legislature, 2011. The bill would
permit the Bond Review Board (BRB) to use common or standard debt issuance practices to make
changes to the assumptions used for estimating debt service amounts for any unissued debt in the
constitutional debt limit (COL) calculation. This could include changes to assumptions for interest
rates, debt maturity, and debt service payment structures. The impact to the debt limit would depend
upon what, if any, changes the BRB makes to the current assumptions it uses for unissued debt. The
bill would also require the BRB to publish an explanation of how the COL is calculated, including
debt service amounts for issued and unissued debt and the assumptions regarding unissued debt.
Article 32 relates to fiscal matters concerning continuing legal education for Office of Attorney
General attorneys.
Article 33 would increase lobby registration fees.
Article 34 would implement a recommendation in the report, "Implement a Tobacco User Surcharge
on Employees Retirement System Health Premiums" in the Legislative Budget Board's Government
Effectiveness and Efficiency Report, submitted to the Eighty-second Legislature, 2011. The bill would
require the Employees Retirement System to apply a monthly tobacco user premium differential which
could be set in the General Appropriations Act.
Article 35 would allow the Texas Veterans Commission to analyze data from the U.S. Department of
Health and Human Services' Public Assistance Reporting Information System to improve benefit
6 of 13
coordination for Texas veterans.
Article 36 makes changes to statutes governing the state's regional poison control centers'
management controls and efficiency.
Article 37 would expand the use of three tobacco settlement funds to pay the principal or interest on a
bond issued on behalf of the Cancer Prevention and Research Institute of Texas, including: the
Permanent Fund for Health and Tobacco Education and Enforcement; the Permanent Fund for
Children and Public Health; and the Permanent Fund for Emergency medical Services and Trauma
Care. Article 37 provisions would take immediate effect upon receiving two-thirds vote in both
houses; otherwise, the provisions would take effect September, 1,2011.
Article 38 would require the ERS board to assess an enrollment fee on each state and higher educatio~
employer whose employees participate in the ERS group benefits program. The amount of the fee
would be determined by the General Appropriations Act. The ERS board would deposit the enrollment
fees to the credit of the employee's life, accident, and health insurance and benefits fund.
Article 39 relates to surplus and salvage property.
Article 40 of the bill would amend the Government Code relating to allocation of court costs so that
the portion previously allocated to the Operator's and Chauffeur's License Fund 99 would be re-
allocated to the LECOS Retirement Fund. This provision of the bill would take effect September 2,
2012 and would therefore have no fiscal impact in the 2012-13 biennium.
Article 41 relates to the collection and allocation of certain sales and use tax. The bill would amend
Section 151.008(b) to provide that the terms "seller" and "retailer" include a person who by agreement
with an owner of tangible personal property has been entrusted with possession of and authority to
sell, lease, or rent the property without additional action on the part of the owner.
The bill would amend Section 151.107 to provide that a "retailer engaged in business in this state"
includes a retailer that (l) holds a substantial ownership in, or is owned in whole or substantial part b:r,
a person who maintains a business location in this state if the retailer sells substantially the same
product line and does so under substantially the same business name as the related retailer or if the
facilities or employees of the related person in this state are used to advertise, promote, or facilitate
sales by the retailer or are used to maintain a marketplace in this state for the retailer, exchanging
returned merchandise; or (2) holds a substantial ownership in, or is owned in whole or substantial part
by, a person that maintains a distribution center, warehouse, or similar location in this state that
delivers property sold by the retailer.
Article 42 relates to the extension of certain franchise tax credits.
Article 43 would allow the Comptroller to enter into contracts with procurement specialists to more
effectively and inexpensively procure items purchased and used by state agencies. The specialist
would be paid from the cost savings gener~ted.
Article 44 would change the period for the sales and use tax holiday from the period beginning at12:01
a.m. on the third Friday in August and ending at 12 a.m. on the following Sunday, to a period
beginning at 12:01 a.m. on the first Friday in August and ending at 12 a.m. on the following Sunday.
Article 45 would amend several sections of the Government Code related to the development of state
budgets and the publication of related documentation, including: requiring the Legislative Budget
Board (LBB) to hold public hearings each state fiscal year to hear a report from the comptroller on tte
financial condition of the state and receive public testimony; requiring the LBB to hold public
hearings on interim budget reduction requests from state agencies; requiring the Comptroller of Public
Accounts to publish data related to revenue from fees; and amending procedures related to the Cash
Management Committee.
Article 46 of the bill would amend the Government Code relating to the Texas Back to Work Initiati'/e
and the Skills Development Fund and would require the Governor to transfer money from the Texas
7 of 13
Enterprise Fund (TEF) to the Texas Back To Work initiative and the Skills Development Fund
administered by the Texas Workforce Commission upon an appropriation made by the Legislature.
The bill would also recreate the Skills Development Fund established under the Labor Code, Section
303.003.
Article 47 would provide a homestead exemption for surviving veteran spouses.
Article 48 extends the small business franchise tax exemption at $1,000,000 until 2014.
Article 49 stipulates that reimbursements and payments to prosecuting attomeys not be made in an
amount greater than amounts authorized in the General Appropriations Act.
Article 50 relates to fiscal matters concerning process servers and entitles a person appointed to the
process server review board to reimbursement for actual and necessary expenses incurred in traveling
and performing official board duties and requires the office to establish a certification division.
Article 51 relates to fiscal matters regarding reimbursement of jurors and entitles a person who reports
for jury service to receive reimbursement for travel and other expenses.
Article 52 of the bill would amend the Code of Criminal Procedure Article 103.0033 by transferring
audit responsibilities for the court-related Collection Improvement Program (CIP) from the
Comptroller of Public Accounts (CPA) to the Office of Court Administration (OCA).
Article 53 would amend Government Code, Chapter 501, to decrease the number of public members
appointed to the Correctional Managed Health Care Committee from nine to six, and require the
committee to take certain actions relating to contracts.
Article 54 would expand the allowable use of the Texas Enterprise Fund to include grant awards under
the Texas homeless housing and services program, administered by the Texas Department of Housing
and Community Affairs.
Article 55 would transfer responsibility for uniform grant and contract management from the Office of
the Governor to the Comptroller of Public Accounts.
Article 56 expands certain franchise tax exemptions to live entertainment events, couriers and PACs.
Article 57 would change the required content of the annual report for the Texas Emerging Technology
Fund, change committee appointment procedures, require financial statements and specify committee
meetings procedures.
Article 58 would amend Chapter 23 of the Tax Code to add beekeeping for the purpose of pollination,
food production, or production of other commercial products to the list of activities that could qualify
land for the reduced agricultural use property tax appraisal if the activity is at the degree of intensity
generally accepted in the area and meets other existing requirements. The bill would provide that land
used for these purposes could not be less than five acres but not more than 20 acres. The bill's
provision that would add beekeeping to the list of land uses that could result in a reduced property tax
appraisal would create a cost to units of local government and to the state through the school funding
formula. The determination of the number of acres per beehive that could qualify would be left up to
chief appraisers. The chief appraisers' determinations on the acceptable level of intensity standards and
resulting qualification determinations under the bill are unknown. Further, the number of beekeeping
agricultural use applications that would be submitted under the bill is unknown. The bill would take
effect on January 1,2012.
Article 59 relates to a tax on retail or commercial business and amends Section 321.002 of the Tax
Code, effective September 1,2011.
Article 60 relates to farm and ranch lands conservation program.
Article 61 allows state contribution rates for ERS and LECOS to be less than the member contribution
8 of 13
rate for fiscal year 2012. The bill would also allow DPS, TRS, ERS and TWC to provide the
Comptroller with certain information regarding individuals from their records every five years rather
than annually.
Article 62 would allow the Comptroller to collect data for unclaimed property search every five years,
instead of every year.
Article 63 would amend Chapter II of the Tax Code, regarding property taxation and exemptions, to
change the definition of "goods-in-transit" to require that the personal property be stored under a
contract of bailment by a public warehouse operator at one or more public warehouses that are not in
any way owned or controlled by the owner of the personal property.
Article 64 would implement the recommendation in the report, "Limit Advanced Placement Incentive
Program Exam Fee Subsidies and End Campus Awards," in the Legislative Budget Board's
Government Effectiveness and Efficiency Report submitted to the Eighty-Second Texas Legislature,
2011 by funding the cost of examinations for students who demonstrate financial need in accordance
with adopted guidelines.
Article 65 would limit eligibility for Educational Aide tuition exemptions to persons seeking
certification in teacher shortage areas, as determined by the Commissioner.
Article 66 would exclude physical education curriculum from counting towards contact hours used to
determine a junior college's proportionate share of the state money appropriated.
Article 67 relates to the franchise tax classification of certain entities as retails.
Article 68 relates to the retention of certain FSP payments.
Article 69 would amend Chapter 42 of the Education code to reduce a district's additional state aid for
tax relief in proportion to the degree to which its adopted maintenance and operations tax rates is
below its compressed tax rate, applying beginning with tax rates adopted for the 2009 tax year.
Article 70 would remove the CPA from the Texas Guarantee Student Loan Board, authorize the
Governor to appoint an additional member to the Board and authorize the Governor to appoint the
Board of the Chair.
Article 71 relates to driver's license and personal identification certificates.
Article 72 relates to mineral funds outside of the treasury for Texas A&M University System, Texas
State University System, Texas Tech University and Texas A&M Kingsville.
Article 73 relates to the Foundation School Program financing and reporting.
Article 74 would require sports officials by the University Interscholastic League to undergo crimina',
background verification. This provision of the bill would have no significant fiscal impact.
Article 75 of the bill would make structural changes in the Foundation School Program that would
result in significant state savings in fiscal year 2012 and continuing thereafter.
Article 76 would amend the allocation of mixed beverage tax reimbursements to cities and would be
effective on September 1,2013.
The provisions of this bill would be effective September 1,2011 except as otherwise provided.
Methodology
For Article 1 of the bill, the effect of deferring the August FSP payment in fiscal year 2013 to
September of the following fiscal year is that a total of 23 monthly FSP payments would be dispersed
during the 2012-13 biennium. Under current law funding of the FSP, this deferral would result in a
9 of 13
one-time savings of $2.3 billion in fiscal year 2013. However, any statutory reduction to school
districts' FSP entitlements would decrease the savings gained from this deferral. The House and
Senate funding levels in House Bill I would produce savings of $1.8 billion and $2.3 billion
respectively.
Article 2 would result in a revenue gain of $7.1 in General Revenue Related Funds in fiscal year 2013.
To estimate the provisions of Article 2, data from TDI and the Comptroller were used to calculate the
amount of examination fee and overhead assessment credits that would be available, the proportion of
available examination fee credits that would be applied towards premium tax liability under current
law, and the extent to which the repeal of these credits would increase the use of other types of
premium tax credits.
Article 3 of the bill relating to custom brokers stamp fee would result in a gain of $1.0 million to the
General Revenue fund in the 2012-13 biennium. For Article 3 of the bill, the revenue gain was
estimated by the Comptroller by multiplying the estimate of the number of export certificates by the
increase in the fee. The bill would have no administrative cost.
Article 4 of the bill would result in a gain of $10 million in General Revenue Related funds in
the2012-13 biennium. The Comptroller estimated fiscal impact from the proposed repeal based on
refunds that have been made under the provisions of Subchapter F. There is no estimated fiscal impact
for 2012 as the current statute and provisions of the bill would result in refunds being made through
fiscal 2012. State savings would begin in fiscal 2013.
The Comptroller estimates that Article 5 would result in gain of $11 million in General Revenue
Funds for the 2012-13 biennium.
In Article 6, moving the unclaimed property transfer deadline to July I from November I would result
in a one-time gain of $200 million in fiscal year 2013. The estimate reflects the impact of changes in
the unclaimed property determination and transfer date and was developed using Comptroller data.
For Article 6, there would be a one-time gain of $77.7 million in fiscal year 2013 from reducing
various unclaimed property dormancy periods. The Comptroller based this estimate on data for the
affected property types. The increase in service, maintenance, and other fees that may be assessed by
money order issuers would not have a significant fiscal impact because the dormancy period decrease
from seven years to three years would offset any potential reduction in unclaimed property receipts.
For Article 6, the Comptroller estimates that unclaimed securities liquidation would result in a gain of
$38 million to the General Revenue Fund in the 2012·13 biennium.
For Article 7, this analysis projects probable revenue gain to the General Revenue Fund from the
reclassification of the Judicial and Court Personnel Training Fund No. 540 from Other Funds to
general Revenue account of $11,716,000 in fiscal year 2012 and $10,660,000 in each fiscal year
thereafter. Projected revenues to the Judicial and Court Personnel Training Fund are based on amounts
included in the Comptroller's 2012-13 Biennial Revenue Estimate, or $10.6 million in fiscal year
2012 and $10.7 million in fiscal year 2013. Additionally, this estimate assumes $1,128,000 in
unexpended balances available in the Judicial and Court Personnel Training Fund at the end of fiscal
year 2011.
Article 9 continues the petroleum products delivery fee which under current law is scheduled to expire
on August 31,2011. According to the Comptroller, extending the fee would generate an estimated
$44.8 million to the Petroleum Storage Tank Remediation Fund 655 in the 2012-13 biennium.
Article 10, relating to the motor fuels tax speed-up would result in a revenue gain of $67.1 million in
General Revenue Funds for the 2012-13 biennium. Article 10 would also delay the motor fuels tax
transfer to Fund 6 and 2 and this provision would result in a net revenue gain of $403 million in
General Revenue Related Funds.
Article II relating to the alcohol tax speed up would result in a gain of $17.6 million in General
Revenue funds in the 2012-13 biennium. The fiscal impacts of Articles 10 and 11 were based on the
10 of 13
Comptroller's 2012-13 Biennial Revenue Estimate. The provisions of this bill would impact revenue
collections only in fiscal year 2013 and 2014.
Article 12 would result in a revenue gain of $11.63 million in General Revenue Related funds in the
2012-13 biennium. Thc fiscal impact of Articles 12 was based on the Comptroller's 2012-13 Biennial
Revenue Estimate. The proposed cigarette stamping allowanc,e change would increase the revenue
from each stamp by roughly one-half of one percent. First year revenue collections were adjusted for
collection lags.
Article 13 would result in gain of$150 million in General Revenue Related funds in the 2012-13
biennium. Article 13 relates to a recent court decision that expanded the interpretation of items that
may be purchased as a nontaxable sale for resale to include items purchased by contractors for use or
consumption in performing services under federal contract. The bill would preclude the court decision
from being further expanded to apply to contracts with exempt entities other than the federal
government. The Comptroller used data on refund claims pursuant to the court decision to estimate th e
annual state sales tax reduction to be expected were the decision applied to contracts with exempt
entities other than the federal government, and the implications for units of local government were
estimated proportionally. The tables shown above assume an effective date of September I, 2011.
For the 2012-13 biennium, article 14 would result in a revenue gain of $231.2 million in General
Revenue funds. The fiscal impact of Article 14 was based on the Comptroller's 2012-13 Biennial
Revenue Estimate. The provisions of this bill would impact revenue collections only in fiscal year
2013 and 2014. The analysis for this article assumes a one-time payment would apply only to state
sales taxes.
Article 15 would result in a revenue gain of $25.8 million in General Revenue funds for the 2012-13
biennium. The Comptroller of Public Accounts (CPA) estimates the bill's provisions in article 15
would increase collections from the mixed beverage tax due to an increase in the effectiveness of the
audit selection process. Gains would be reflected in both revenue realized per audit and an increase ir.
the percentage of mixed beverage audits yielding revenue. Additionally, in response to enhanced
reporting requirements, there would be a revenue gain due to greater voluntary tax compliance. Citie!,
and counties could also expect positive revenue gains. This analysis shows the estimated gains to
cities and counties if they were to be appropriated their current share of total mixed beverage revenue.
The number of potential violations and the amount of penalties levied are unknown, the fiscal impact
relating to penalty provisions cannot be determined.
Article 16, relating to the penalties for failure to report or remit certain taxes or fees, would amend the
Tax Code and the Health and Safety Code to add a penalty of $50 for a person who fails to file certai n
reports required under the codes. Article 16 would result in gain of $13.15 million in General Revenue
Funds in the 2012-13 biennium.
Article 21 relating to the repeal of early High School Graduation credit would result in a revenue gain
of $10.2 million in General Revenue Funds in the 2012-13 biennium.
For Article 22, it is assumed that by reducing the state contribution rate to the TRS Care retiree
insurance fund below 1.0 percent of active employee payroll in fiscal year 2013, state costs to General
Revenue would be reduced. The TRS-Care Insurance Trust Fund would experience a revenue loss in
like amounts. Senate Committee Substitute to HB I captures savings totaling $133.7 million in fiscal
year 2013 based on a state contribution rate of 0.5 percent of payroll.
Articles 23, 24 and 25 relating to fiscal matters regarding natural resources would result in a net
positive fiscal impact of $53.6 in General Revenue and General Revenue-Dedicated Funds in the
2012-13 biennium.
Articles 26 through 36 relating to fiscal matters regarding general government would result in a net
positive fiscal impact of $70 million in General Revenue and General Revenue-Dedicated Funds.
The provisions included in Article 37 related to expanding the use of three tobacco settlement funds to
pay the principal or interest on a bond issued on behalf of the Cancer Prevention and Research
II of 13
•
Institute of Texas would result in a gain to General Revenue- Dedicated Funds of $78.1 in the 2012-13
biennium. The gain shown above is based on appropriated amounts for the 2012-13 biennium.
For Article 38 of the bill, the estimate assumes one percent of the employer's total payroll would be
charged to state and higher education employers as an enrollment fee. The fee would generate $162.6
million in General Revenue Related Funds per year which would be deposited to the ERS Employees
Life. Accident, Health Insurance and Benefits Trust Account.
According to the CPA, article 41 and 42 regarding the sales and use tax, nexus and the franchise tax
credits would result in a net revenue gain of $9.2 million in the 2012-13 biennium. The extension of
certain franchise tax credits would result in a revenue loss of $6.8 million in General Revenue Funds
in the 2012-13 biennium, and the provisions related to Nexus are estimated to result in a revenue gain
of $16 million in General Revenue Funds for the 2012-13 biennium.
Article 48 relating to small business tax exemptions, would result in a revenue loss of $149.9 million
in General Revenue Related Funds in the 2012-13 biennium.
According to the Comptroller the fiscal impact of article 50 relating to process servers could not be
determined.
Article 52 relating to the Collection Improvement Program would result in a net revenue gain of $9
million in General Revenue Related funds in the 2012-13 biennium. Article 52 of the bill would
transfer the auditing of the court-related Collection Improvement Program (CIP) function from the
Comptroller of Publ ic Accounts (CPA) to the Office of Court Administration (OCA). When the
mandatory CIP was created by legislation in 2005, the CPA received appropriations for eight full-time
equivalents (FTEs) to fulfill the related auditing functions. It is assumed that eight FTEs, Auditor IV
positions, would be needed at OCA at a salary cost of$54,498 per FTE per fiscal year, with a total
salary cost of $435,984 to General Revenue per year. Additional expenses include travel, at a cost of
$80,000 per year; other operating expenses. at a cost of $13.840-$14,640 per year; and equipment
costs for computers at a cost $19,824 in fiscal year 2012with a four-year replacement schedule. In
addition, benefits would cost $121,465 per fiscal year. The estimated cost to OCA for the auditing
function is approximately $671,913 in fiscal year 2012 and$651,289 in subsequent fiscal years. The
CPA reports that redirecting the existing staff currently performing court collections audits to taxpayer
audits would result in additional General Revenue to the state of: $5.1 million fiscal year2012; $5.2
million in fiscal year 2013; $5.4 million in fiscal year 2014; $5.5 million in fiscal year2015; and $5.7
million in fiscal year 2016. Since existing CPA staff will be redirected to taxpayer audits, for purposes
of this analysis, it is assumed that the OCA would require additional funding and FTEs, as previously
described, to assume the auditing function currently performed by CPA staff.
Article 56 relating to certain franchise tax exemptions, would result in a net revenue loss of $2.42
million in General Revenue Related Funds in the 2012-13 biennium.
Article 62 relating to data collection from unclaimed property searches would result in a General
Revenue savings of $400,000 in the 2012-13 biennium.
Article 64 would limit APIIB exam fee subsidies to students who are educationally disadvantaged as
defined in Section 5.001(4), Education Code, which would save an estimated $6.1 million in General
Revenue Funds for fiscal year 2012 and $6.2 million in General Revenue Funds for fiscal year 2013,
increasing to $6.5 million by fiscal year 2016. This estimate is based on current appropriations of $8.4
million for exam fee subsidies and assumes a 4 percent increase in the total number of AP/lB exams
taken and a 9 percent increase in the number of APIIB exams taken by low income students that would
be eligible for a subsidy each school year. Projected increases are based on historical data and growth
in participation provided by TEA. The savings from the provision are assumed in CSHB 1.
Article 65 limiting eligibility for Educational Aide tuition exemptions to persons seeking certification
in teacher shortage areas is estimated to reduce state costs for this program by $7.5 million in General
Revenue related funds for the 2012-13 biennium. The savings from the provision are assumed in
CSHB I.
12 of 13
•
Article 67 relating to the franchise tax and classification of entities as retail would result in a revenue
loss of $200,000 in the 2012-13 biennium.
Regarding article 73, according to data from the Texas Education Agency, districts affected by the bill
would see the amount they owe the state, under the current school finance provisions of Chapter 4 I
and Chapter 42 of the Texas Education Code, decrease by an estimated $1 1,750,000, entailing a non-
time state cost to the Foundation School Program compared to current law of a like amount.
Regarding article 75, a model of the bill's changes to the calculation of Foundation School Program
(FSP) formulas indicates that savings of approximately $2.0 billion each year would be achieved in
the 2012-13 biennium. In fiscal year 2012 the $2.0 billion in reduction would be achieved through a
proportional reduction to the FSP regular program. In fiscal year 2013 the reduction is achieved
through a reduction to the regular program (75% of the reduction) and through a reduction to target
revenue (25% of the reduction). In fiscal year 2014 and beyond those amounts are determined by in
the General Appropriations Act.
Local Government Impact
School districts would experience significant loss of revenue under the article 75's provisions. In total,
revenues available to school districts would decline by approximately $2.0 billion per year relative to
current law in fiscal year 2012 and fiscal year 2013. Reductions in revenue would vary among
districts depending on specific local circumstances.
Source Agencies:
LBB Staff: JOB, KK, n, ACI, JJ
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82d Legislature SB 1811 From Committee

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82d Legislature SB 1811 From Committee

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". We, Your C()nfere~~eCQmmittee,apPoiriteci t:o~dji.tst 'th~'dlffe.ieri~esbet~e~n t:heSe~atea:ndtl1e

S.B. No. 1811

2 relating to certain state fiscal matters; providing penalties.

8 category 2 school distr ict shall be made as follows:

S.B. No. 1811

3 (7) 13 percent of the yearly entitlement of the

11 (d) Payments from the foundation school fund to eac·i1

24 (f) Except as provided by Subsection (c) (8) or (d) (3), an'C

S.B. No. 1811

S.B. No. 18D

1 by adding Subsection (f) to read as follows:

3 (e) for an examination or evaluation fee paid in calendar year 201:!

13 salar ied department examiner conducts the examinat ion.

16 subsect ion expires January 1, 2014.

S.B. No. 1811

S.B. No. 1811

the amount of an tax r efunded .:::a~n:.:::d,-",t:..:h:.:::e_a:::m=o.:::u.:.:n:.:::t....:::.:r=L...I:=':=="""==';;:';:;'

2 SECTION 3.02. (c), Section 151.1575,

2 the name and address of the purchase

S.B. No. 1811

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

21 of the attorney general or comptroller as provided by Subsection

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12 [{.A+] at a permanent address in this state

S.B. No. 1811

2 provision of this title.

7 period in guestion to substantiate and enable verification of c~

9 interest that is to be assessed, collected, or refunded, af:

14 supporting documentation appropriate to the tax or fee for the

17 interest that is to be assessed, collected, or refunded, as,

21 (b) A record required by Subsection (a) [ef tais seatieRl

27 for a longer per iod.

4 records under this chapter.

12 permit holder shall keep records available for inspection and

18 permit holder shall keep records available for inspection and

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3 SECTION 5.12. This article takes effect immediately i f this

15 property is unknown to the holder of the property; and

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24 (2) the location of the depositor of the account or

3 Chapter 72, 73, or 75 shall deliver the property to the comptroller

23 1 [J~Re 30] holds property presumed abandoned under Chapters 72-75

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1 accounts for the property provided the property is timely delivered

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3 ARTICLE 8. PROCESS SERVER CERTIFICATION FEES

1 SECTION 8.02. (a) The fees recommended and approved under

14 certification renewal fee is payable.

10 (4) not more than $12.50 [$1§,QQ) for each delivery

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

4 SECTION 10.02. Sect ion 162.214, Tax Code, is amended by

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

8 licensed importer shall remit to the supplier or permissive

14 is entitled. The supplier or permissive supplier shall remit the

21 credit against the amount of tax imposed by Section 162.201 for

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

S.B. No. 1811