S.B. No. 1
 
 
 
 
AN ACT
  relating to certain state fiscal matters; providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  FOUNDATION SCHOOL PROGRAM PAYMENTS
         SECTION 1.01.  Subsections (c), (d), and (f), Section
  42.259, Education Code, are amended to read as follows:
         (c)  Payments from the foundation school fund to each
  category 2 school district shall be made as follows:
               (1)  22 percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of September of a fiscal year;
               (2)  18 percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of October;
               (3)  9.5 percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of November;
               (4)  7.5 percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of April;
               (5)  five percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of May;
               (6)  10 percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of June;
               (7)  13 percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of July; and
               (8)  15 percent of the yearly entitlement of the
  district shall be paid in an installment to be made after the 5th
  day of September and not later than the 10th day of September of the
  calendar year following the calendar year of the payment made under
  Subdivision (1) [on or before the 25th day of August].
         (d)  Payments from the foundation school fund to each
  category 3 school district shall be made as follows:
               (1)  45 percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of September of a fiscal year;
               (2)  35 percent of the yearly entitlement of the
  district shall be paid in an installment to be made on or before the
  25th day of October; and
               (3)  20 percent of the yearly entitlement of the
  district shall be paid in an installment to be made after the 5th
  day of September and not later than the 10th day of September of the
  calendar year following the calendar year of the payment made under
  Subdivision (1) [on or before the 25th day of August].
         (f)  Except as provided by Subsection (c)(8) or (d)(3), any
  [Any] previously unpaid additional funds from prior fiscal years
  owed to a district shall be paid to the district together with the
  September payment of the current fiscal year entitlement.
         SECTION 1.02.  Subsection (c), Section 466.355, Government
  Code, is amended to read as follows:
         (c)  Each August the comptroller shall:
               (1)  estimate the amount to be transferred to the
  foundation school fund on or before September 15; and
               (2)  notwithstanding Subsection (b)(4), transfer the
  amount estimated in Subdivision (1) to the foundation school fund
  before August 25 [installment payments are made under Section
  42.259, Education Code].
         SECTION 1.03.  The changes made by this article to Section
  42.259, Education Code, apply only to a payment from the foundation
  school fund that is made on or after the effective date of this Act.
  A payment to a school district from the foundation school fund that
  is made before that date is governed by Section 42.259, Education
  Code, as it existed before amendment by this article, and the former
  law is continued in effect for that purpose.
  ARTICLE 2.  FISCAL MATTERS REGARDING REGULATION AND TAXATION OF
  INSURERS
         SECTION 2.01.  Section 221.006, Insurance Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  An insurer 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 1, 2014.
         SECTION 2.02.  Section 222.007, Insurance Code, is amended
  by adding Subsection (c) to read as follows:
         (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 1, 2014.
         SECTION 2.03.  Section 223.009, Insurance Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  A title insurance company 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 1,
  2014.
         SECTION 2.04.  Section 401.151, Insurance Code, is amended
  by adding Subsection (f) to read as follows:
         (f)  An insurer is not entitled to a credit under Subsection
  (e) for an examination or evaluation fee paid in calendar year 2012
  or 2013.  This subsection expires January 1, 2014.
         SECTION 2.05.  Section 401.154, Insurance Code, is amended
  to read as follows:
         Sec. 401.154.  TAX CREDIT AUTHORIZED.  (a)  An insurer is
  entitled to a credit on the amount of premium taxes to be paid by the
  insurer for all examination fees paid under Section 401.153.  The
  insurer may take the credit for the taxable year during which the
  examination fees are paid and may take the credit to the same extent
  the insurer may take a credit for examination fees paid when a
  salaried department examiner conducts the examination.
         (b)  An insurer is not entitled to a credit under Subsection
  (a) for an examination fee paid in calendar year 2012 or 2013.  This
  subsection expires January 1, 2014.
         SECTION 2.06.  Section 463.160, Insurance Code, is amended
  to read as follows:
         Sec. 463.160.  PREMIUM TAX CREDIT FOR CLASS A ASSESSMENT.
  The amount of a Class A assessment paid by a member insurer in each
  taxable year shall be allowed as a credit on the amount of premium
  taxes due [in the same manner as a credit is allowed under Section
  401.151(e)].
         SECTION 2.07.  The changes in law made by this article apply
  only to a tax credit for an examination or evaluation fee paid on or
  after January 1, 2012.  Tax credits for examination or evaluation
  fees paid before January 1, 2012, are governed by the law in effect
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
  ARTICLE 3.  STATE SALES AND FRANCHISE TAX REFUNDS FOR CERTAIN AD
  VALOREM TAXPAYERS
         SECTION 3.01.  Subchapter F, Chapter 111, Tax Code, is
  repealed.
         SECTION 3.02.  The repeal of Subchapter F, Chapter 111, Tax
  Code, by this article does not affect an eligible person's right to
  claim a refund of state sales and use and state franchise taxes that
  was established under Section 111.301, Tax Code, in relation to
  taxes paid before the effective date of this article in a calendar
  year for which the person paid ad valorem taxes to a school district
  as provided by Section 111.301, Tax Code, before the effective date
  of this article.  An eligible person's right to claim a refund of
  state sales and use and state franchise taxes that was established
  under Section 111.301, Tax Code, in relation to taxes paid before
  the effective date of this article in a calendar year for which the
  person paid ad valorem taxes to a school district as provided by
  Section 111.301, Tax Code, before the effective date of this
  article is governed by the law in effect on the date the right to
  claim the refund was established, and the former law is continued in
  effect for that purpose.
         SECTION 3.03.  This article takes effect October 1, 2011.
  ARTICLE 4.  TAX RECORDS
         SECTION 4.01.  Section 2153.201, Occupations Code, is
  amended by amending Subsection (b) and adding Subsection (c) to
  read as follows:
         (b)  A record required under Subsection (a) must:
               (1)  be available at all times for inspection by the
  attorney general, the comptroller, or an authorized representative
  of the attorney general or comptroller as provided by Subsection
  (c);
               (2)  include information relating to:
                     (A)  the kind of each machine;
                     (B)  the date each machine is:
                           (i)  acquired or received in this state; and
                           (ii)  placed in operation;
                     (C)  the location of each machine, including the:
                           (i)  county;
                           (ii)  municipality, if any; and
                           (iii)  street or rural route number;
                     (D)  the name and complete address of each
  operator of each machine;
                     (E)  if the owner is an individual, the full name
  and address of the owner; and
                     (F)  if the owner is not an individual, the name
  and address of each principal officer or member of the owner; and
               (3)  be maintained[:
                     [(A)]  at a permanent address in this state
  designated on the application for a license under Section
  2153.153[; and
                     [(B)     until the second anniversary of the date the
  owner ceases ownership of the machine that is the subject of the
  record].
         (c)  A record required under Subsection (a) must be available
  for inspection under Subsection (b) for at least four years and as
  required by Section 111.0041, Tax Code.
         SECTION 4.02.  Section 111.0041, Tax Code, is amended to
  read as follows:
         Sec. 111.0041.  RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE
  CLAIMS. (a)  Except as provided by Subsection (b), a [Any]
  taxpayer who is required by this title to keep records shall keep
  those records open to inspection by the comptroller, the attorney
  general, or the authorized representatives of either of them for at
  least four years.
         (b)  A taxpayer is required to keep records, as provided by
  Subsection (c) with respect to the taxpayer's claim, open for
  inspection under Subsection (a) for more than four years throughout
  any period when:
               (1)  any tax, penalty, or interest may be assessed,
  collected, or refunded by the comptroller; or
               (2)  an administrative hearing is pending before the
  comptroller, or a judicial proceeding is pending, to determine the
  amount of the tax, penalty, or interest that is to be assessed,
  collected, or refunded.
         (c)  A taxpayer shall produce contemporaneous records and
  supporting documentation appropriate to the tax or fee for the
  transactions in question to substantiate and enable verification of
  the taxpayer's claim related to the amount of tax, penalty, or
  interest to be assessed, collected, or refunded in an
  administrative or judicial proceeding. Contemporaneous records
  and supporting documentation appropriate to the tax or fee may
  include, for example, invoices, vouchers, checks, shipping
  records, contracts, or other equivalent records, such as
  electronically stored images of such documents, reflecting legal
  relationships and taxes collected or paid.
         (d)  This section prevails over any other conflicting
  provision of this title.
         SECTION 4.03.  Section 112.052, Tax Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  A taxpayer shall produce contemporaneous records and
  supporting documentation appropriate to the tax or fee for the
  transactions in question to substantiate and enable verification of
  a taxpayer's claim relating to the amount of the tax, penalty, or
  interest that has been assessed or collected or will be refunded, as
  required by Section 111.0041.
         SECTION 4.04.  Section 112.151, Tax Code, is amended by
  adding Subsection (f) to read as follows:
         (f)  A taxpayer shall produce contemporaneous records and
  supporting documentation appropriate to the tax or fee for the
  transactions in question to substantiate and enable verification of
  a taxpayer's claim relating to the amount of the tax, penalty, or
  interest that has been assessed or collected or will be refunded, as
  required by Section 111.0041.
         SECTION 4.05.  Subsection (b), Section 151.025, Tax Code, is
  amended to read as follows:
         (b)  A record required by Subsection (a) [of this section]
  shall be kept for not less than four years from the date [day] that
  it is made unless:
               (1)  the comptroller authorizes in writing its
  destruction at an earlier date; or
               (2)  Section 111.0041 requires that the record be kept
  for a longer period.
         SECTION 4.06.  Section 152.063, Tax Code, is amended by
  adding Subsection (h) to read as follows:
         (h)  Section 111.0041 applies to a person required to keep
  records under this chapter.
         SECTION 4.07.  Section 152.0635, Tax Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  Section 111.0041 applies to a person required to keep
  records under this chapter.
         SECTION 4.08.  Subsection (a), Section 154.209, Tax Code, is
  amended to read as follows:
         (a)  Except as provided by Section 111.0041, each [Each]
  permit holder shall keep records available for inspection and
  copying by the comptroller and the attorney general for at least 
  four years.
         SECTION 4.09.  Subsection (a), Section 155.110, Tax Code, is
  amended to read as follows:
         (a)  Except as provided by Section 111.0041, each [Each]
  permit holder shall keep records available for inspection and
  copying by the comptroller and the attorney general for at least 
  four years.
         SECTION 4.10.  Section 160.046, Tax Code, is amended by
  adding Subsection (g) to read as follows:
         (g)  A person required to keep records under this section
  shall also keep the records as required by Section 111.0041.
         SECTION 4.11.  Subchapter A, Chapter 162, Tax Code, is
  amended by adding Section 162.0125 to read as follows:
         Sec. 162.0125.  DUTY TO KEEP RECORDS. A person required to
  keep a record under this chapter shall also keep the record as
  required by Section 111.0041.
         SECTION 4.12.  This article takes effect immediately if this
  Act receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.
  If this Act does not receive the vote necessary for immediate
  effect, this article takes effect October 1, 2011.
  ARTICLE 5.  UNCLAIMED PROPERTY
         SECTION 5.01.  Subsection (b), Section 72.1017, Property
  Code, as effective September 1, 2011, is amended to read as follows:
         (b)  Notwithstanding Section 73.102, a utility deposit is
  presumed abandoned on the latest of:
               (1)  the first anniversary of [18 months after] the
  date a refund check for the utility deposit was payable to the owner
  of the deposit;
               (2)  the first anniversary of [18 months after] the
  date the utility last received documented communication from the
  owner of the utility deposit; or
               (3)  the first anniversary of [18 months after] the
  date the utility issued a refund check for the deposit payable to
  the owner of the deposit if, according to the knowledge and records
  of the utility or payor of the check, during that period, a claim to
  the check has not been asserted or an act of ownership by the payee
  has not been exercised.
         SECTION 5.02.  This article takes effect on the 91st day
  after the last day of the legislative session.
  ARTICLE 6.  CLASSIFICATION OF JUDICIAL AND COURT PERSONNEL
  TRAINING FUND
         SECTION 6.01.  Section 56.001, Government Code, is amended
  to read as follows:
         Sec. 56.001.  JUDICIAL AND COURT PERSONNEL TRAINING FUND.
  (a)  The judicial and court personnel training fund is an account
  in the general revenue fund. Money in the judicial and court
  personnel training fund may be appropriated only to [created in the
  state treasury and shall be administered by] the court of criminal
  appeals for the uses authorized in Section 56.003.
         (b) [(i)]  On requisition of the court of criminal appeals,
  the comptroller shall draw a warrant on the fund for the amount
  specified in the requisition for a use authorized in Section
  56.003. A warrant may not exceed the amount appropriated for any
  one fiscal year. [At the end of each state fiscal year, any
  unexpended balance in the fund in excess of $500,000 shall be
  transferred to the general revenue fund.]
  ARTICLE 7.  PROCESS SERVER CERTIFICATION FEES
         SECTION 7.01.  Section 51.008, Government Code, as effective
  September 1, 2011, is amended by amending Subsection (c) and adding
  Subsection (d) to read as follows:
         (c)  The Office of Court Administration of the Texas Judicial
  System may collect the fees recommended by the process server
  review board and approved by the supreme court. Fees collected
  under this section shall be sent to the comptroller for deposit to
  the credit of the general revenue fund [and may be appropriated only
  to the office for purposes of this section].
         (d)  Fees collected under this section may be appropriated to
  the Office of Court Administration of the Texas Judicial System for
  the support of regulatory programs for process servers, guardians,
  and court reporters.
  [ARTICLE 8 reserved]
  ARTICLE 9.  REMITTANCE AND ALLOCATION OF CERTAIN MOTOR FUELS TAXES
         SECTION 9.01.  Section 162.113, Tax Code, is amended by
  adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
  follows:
         (a-1)  On August 28, 2013, each licensed distributor and
  licensed importer shall remit to the supplier or permissive
  supplier, as applicable, a tax prepayment in an amount equal to 25
  percent of the tax imposed by Section 162.101 for gasoline removed
  at the terminal rack during July 2013 by the licensed distributor or
  licensed importer, without accounting for any credit or allowance
  to which the licensed distributor or licensed importer is entitled.
  The supplier or permissive supplier shall remit the tax prepayment
  received under this subsection to the comptroller by electronic
  funds transfer on August 30, 2013, without accounting for any
  credit or allowance to which the supplier or permissive supplier is
  entitled. Subsections (c)-(e) do not apply to the tax prepayment
  under this subsection.
         (a-2)  A licensed distributor or licensed importer may take a
  credit against the amount of tax imposed by Section 162.101 for
  gasoline removed at a terminal rack during August 2013 that is
  required to be remitted to the supplier or permissive supplier, as
  applicable, under Subsection (a) in September 2013. The amount of
  the credit is equal to the amount of any tax prepayment remitted by
  the licensed distributor or licensed importer as required by
  Subsection (a-1).
         (a-3)  Subsections (a-1) and (a-2) apply to a supplier or an
  affiliate of a supplier who removes gasoline at the terminal rack
  for distribution to the same extent and in the same manner that
  those subsections apply to a licensed distributor or licensed
  importer.
         (a-4)  Subsections (a-1), (a-2), and (a-3) and this
  subsection expire September 1, 2015.
         SECTION 9.02.  Section 162.214, Tax Code, is amended by
  adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
  follows:
         (a-1)  On August 28, 2013, each licensed distributor and
  licensed importer shall remit to the supplier or permissive
  supplier, as applicable, a tax prepayment in an amount equal to 25
  percent of the tax imposed by Section 162.201 for diesel fuel
  removed at the terminal rack during July 2013 by the licensed
  distributor or licensed importer, without accounting for any credit
  or allowance to which the licensed distributor or licensed importer
  is entitled. The supplier or permissive supplier shall remit the
  tax prepayment received under this subsection to the comptroller by
  electronic funds transfer on August 30, 2013, without accounting
  for any credit or allowance to which the supplier or permissive
  supplier is entitled. Subsections (c)-(e) do not apply to the tax
  prepayment under this subsection.
         (a-2)  A licensed distributor or licensed importer may take a
  credit against the amount of tax imposed by Section 162.201 for
  diesel fuel removed at a terminal rack during August 2013 that is
  required to be remitted to the supplier or permissive supplier, as
  applicable, under Subsection (a) in September 2013. The amount of
  the credit is equal to any tax prepayment remitted by the licensed
  distributor or licensed importer as required by Subsection (a-1).
         (a-3)  Subsections (a-1) and (a-2) apply to a supplier or an
  affiliate of a supplier who removes diesel fuel at the terminal rack
  for distribution to the same extent and in the same manner that
  those subsections apply to a licensed distributor or licensed
  importer.
         (a-4)  Subsections (a-1), (a-2), and (a-3) and this
  subsection expire September 1, 2015.
         SECTION 9.03.  Section 162.503, Tax Code, is amended to read
  as follows:
         Sec. 162.503.  ALLOCATION OF GASOLINE TAX. (a)  On or
  before the fifth workday after the end of each month, the
  comptroller, after making all deductions for refund purposes and
  for the amounts allocated under Sections 162.502 and 162.5025,
  shall allocate the net remainder of the taxes collected under
  Subchapter B as follows:
               (1)  one-fourth of the tax shall be deposited to the
  credit of the available school fund;
               (2)  one-half of the tax shall be deposited to the
  credit of the state highway fund for the construction and
  maintenance of the state road system under existing law; and
               (3)  from the remaining one-fourth of the tax the
  comptroller shall:
                     (A)  deposit to the credit of the county and road
  district highway fund all the remaining tax receipts until a total
  of $7,300,000 has been credited to the fund each fiscal year; and
                     (B)  after the amount required to be deposited to
  the county and road district highway fund has been deposited,
  deposit to the credit of the state highway fund the remainder of the
  one-fourth of the tax, the amount to be provided on the basis of
  allocations made each month of the fiscal year, which sum shall be
  used by the Texas Department of Transportation for the
  construction, improvement, and maintenance of farm-to-market
  roads.
         (b)  Notwithstanding Subsection (a), the comptroller may not
  allocate revenue otherwise required to be allocated under
  Subsection (a) during July and August 2013 before the first workday
  of September 2013. The revenue shall be allocated as otherwise
  provided by Subsection (a) not later than the fifth workday of
  September 2013. This subsection expires September 1, 2015.
         SECTION 9.04.  Section 162.504, Tax Code, is amended to read
  as follows:
         Sec. 162.504.  ALLOCATION OF DIESEL FUEL TAX. (a)  On or
  before the fifth workday after the end of each month, the
  comptroller, after making deductions for refund purposes, for the
  administration and enforcement of this chapter, and for the amounts
  allocated under Section 162.5025, shall allocate the remainder of
  the taxes collected under Subchapter C as follows:
               (1)  one-fourth of the taxes shall be deposited to the
  credit of the available school fund; and
               (2)  three-fourths of the taxes shall be deposited to
  the credit of the state highway fund.
         (b)  Notwithstanding Subsection (a), the comptroller may not
  allocate revenue otherwise required to be allocated under
  Subsection (a) during July and August 2013 before the first workday
  of September 2013. The revenue shall be allocated as otherwise
  provided by Subsection (a) not later than the fifth workday of
  September 2013. This subsection expires September 1, 2015.
         SECTION 9.05.  The expiration of the amendments made to the
  Tax Code in accordance with this article does not affect tax
  liability accruing before the expiration of those amendments. That
  liability continues in effect as if the amendments had not expired,
  and the former law is continued in effect for the collection of
  taxes due and for civil and criminal enforcement of the liability
  for those taxes.
         SECTION 9.06.  This article takes effect October 1, 2011.
  ARTICLE 10.  REMITTANCE OF MIXED BEVERAGE TAXES AND TAXES AND FEES
  ON CERTAIN ALCOHOLIC BEVERAGES
         SECTION 10.01.  Section 34.04, Alcoholic Beverage Code, is
  amended by adding Subsections (c), (d), and (e) to read as follows:
         (c)  In August 2013, a permittee shall remit a tax prepayment
  of taxes due to be remitted in September 2013 that is equal to 25
  percent of the amount the permittee is otherwise required to remit
  during August 2013 under the reporting system prescribed by the
  commission. The prepayment is in addition to the amount the
  permittee is otherwise required to remit during August. The
  permittee shall remit the additional payment in conjunction with
  the report and payment otherwise required during that month.
         (d)  A permittee who remits the additional payment as
  required by Subsection (c) may take a credit in the amount of the
  additional payment against the next payment due under the reporting
  system prescribed by the commission.
         (e)  Subsections (c) and (d) and this subsection expire
  September 1, 2015.
         SECTION 10.02.  Section 48.04, Alcoholic Beverage Code, is
  amended by adding Subsections (c), (d), and (e) to read as follows:
         (c)  In August 2013, a permittee shall remit a tax prepayment
  of taxes due to be remitted in September 2013 that is equal to 25
  percent of the amount the permittee is otherwise required to remit
  during August 2013 under the reporting system prescribed by the
  commission. The prepayment is in addition to the amount the
  permittee is otherwise required to remit during August. The
  permittee shall remit the additional payment in conjunction with
  the report and payment otherwise required during that month.
         (d)  A permittee who remits the additional payment as
  required by Subsection (c) may take a credit in the amount of the
  additional payment against the next payment due under the reporting
  system prescribed by the commission.
         (e)  Subsections (c) and (d) and this subsection expire
  September 1, 2015.
         SECTION 10.03.  Section 201.07, Alcoholic Beverage Code, is
  amended to read as follows:
         Sec. 201.07.  DUE DATE. (a)  The tax on liquor is due and
  payable on the 15th of the month following the first sale, together
  with a report on the tax due.
         (b)  In August 2013, each permittee who is liable for the
  taxes imposed by this subchapter shall remit a tax prepayment of
  taxes due to be remitted in September 2013 that is equal to 25
  percent of the amount the permittee is otherwise required to remit
  during August 2013 under Subsection (a). The prepayment is in
  addition to the amount the permittee is otherwise required to remit
  during August. The permittee shall remit the additional payment in
  conjunction with the report and payment otherwise required during
  that month.
         (c)  A permittee who remits the additional payment as
  required by Subsection (b) may take a credit in the amount of the
  additional payment against the next payment due under Subsection
  (a).
         (d)  Subsections (b) and (c) and this subsection expire
  September 1, 2015.
         SECTION 10.04.  Section 201.43, Alcoholic Beverage Code, is
  amended by amending Subsection (b) and adding Subsections (c), (d),
  and (e) to read as follows:
         (b)  The tax is due and payable on the 15th day of the month
  following the month in which the taxable first sale occurs,
  together with a report on the tax due.
         (c)  In August 2013, each permittee who is liable for the tax
  imposed by this subchapter shall remit a tax prepayment of taxes due
  to be remitted in September 2013 that is equal to 25 percent of the
  amount the permittee is otherwise required to remit during August
  2013 under Subsection (b). The prepayment is in addition to the
  amount the permittee is otherwise required to remit during August.
  The permittee shall remit the additional payment in conjunction
  with the report and payment otherwise required during that month.
         (d)  A permittee who remits the additional payment as
  required by Subsection (c) may take a credit in the amount of the
  additional payment against the next payment due under Subsection
  (b).
         (e)  Subsections (c) and (d) and this subsection expire
  September 1, 2015.
         SECTION 10.05.  Section 203.03, Alcoholic Beverage Code, is
  amended by amending Subsection (b) and adding Subsections (c), (d),
  and (e) to read as follows:
         (b)  The tax is due and payable on the 15th day of the month
  following the month in which the taxable first sale occurs,
  together with a report on the tax due.
         (c)  Each licensee who is liable for the tax imposed by this
  chapter shall remit a tax prepayment of taxes due to be remitted in
  September 2013 that is equal to 25 percent of the amount the
  licensee is otherwise required to remit during August 2013 under
  Subsection (b). The prepayment is in addition to the amount the
  licensee is otherwise required to remit during August. The
  licensee shall remit the additional payment in conjunction with the
  report and payment otherwise required during that month.
         (d)  A licensee who remits the additional payment as required
  by Subsection (c) may take a credit in the amount of the additional
  payment against the next payment due under Subsection (b).
         (e)  Subsections (c) and (d) and this subsection expire
  September 1, 2015.
         SECTION 10.06.  Section 183.023, Tax Code, is amended to
  read as follows:
         Sec. 183.023.  PAYMENT. (a)  The tax due for the preceding
  month shall accompany the return and shall be payable to the state.
         (b)  The comptroller shall deposit the revenue received
  under this section in the general revenue fund.
         (c)  In August 2013, each permittee who is liable for the tax
  imposed by this subchapter shall remit a tax prepayment of taxes due
  to be remitted in September 2013 that is equal to 25 percent of the
  amount the permittee is otherwise required to remit during August
  2013 under Subsection (a). The prepayment is in addition to the
  amount the permittee is otherwise required to remit during August.
  The permittee shall remit the additional payment in conjunction
  with the return and payment otherwise required during that month.
         (d)  A permittee who remits the additional payment as
  required by Subsection (c) may take a credit in the amount of the
  additional payment against the next payment due under Subsection
  (a).
         (e)  Subsections (c) and (d) and this subsection expire
  September 1, 2015.
         SECTION 10.07.  The expiration of the amendments made to the
  Alcoholic Beverage Code and Tax Code in accordance with this
  article does not affect tax liability accruing before the
  expiration of those amendments. That liability continues in effect
  as if the amendments had not expired, and the former law is
  continued in effect for the collection of taxes due and for civil
  and criminal enforcement of the liability for those taxes.
  ARTICLE 11.  CIGARETTE TAX STAMPING ALLOWANCE
         SECTION 11.01.  Subsection (a), Section 154.052, Tax Code,
  is amended to read as follows:
         (a)  A distributor is, subject to the provisions of Section
  154.051, entitled to 2.5 [three] percent of the face value of stamps
  purchased as a stamping allowance for providing the service of
  affixing stamps to cigarette packages, except that an out-of-state
  distributor is entitled to receive only the same percentage of
  stamping allowance as that given to Texas distributors doing
  business in the state of the distributor.
         SECTION 11.02.  This article applies only to cigarette
  stamps purchased on or after the effective date of this article.
  Cigarette stamps purchased before the effective date of this
  article are governed by the law in effect on the date the cigarette
  stamps were purchased, and that law is continued in effect for that
  purpose.
         SECTION 11.03.  This article takes effect October 1, 2011.
  ARTICLE 12.  SALES FOR RESALE
         SECTION 12.01.  Section 151.006, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (c) to read as
  follows:
         (a)  "Sale for resale" means a sale of:
               (1)  tangible personal property or a taxable service to
  a purchaser who acquires the property or service for the purpose of
  reselling it with or as a taxable item as defined by Section 151.010
  in the United States of America or a possession or territory of the
  United States of America or in the United Mexican States in the
  normal course of business in the form or condition in which it is
  acquired or as an attachment to or integral part of other tangible
  personal property or taxable service;
               (2)  tangible personal property to a purchaser for the
  sole purpose of the purchaser's leasing or renting it in the United
  States of America or a possession or territory of the United States
  of America or in the United Mexican States in the normal course of
  business to another person, but not if incidental to the leasing or
  renting of real estate;
               (3)  tangible personal property to a purchaser who
  acquires the property for the purpose of transferring it in the
  United States of America or a possession or territory of the United
  States of America or in the United Mexican States as an integral
  part of a taxable service; [or]
               (4)  a taxable service performed on tangible personal
  property that is held for sale by the purchaser of the taxable
  service; or
               (5)  except as provided by Subsection (c), tangible
  personal property to a purchaser who acquires the property for the
  purpose of transferring it as an integral part of performing a
  contract, or a subcontract of a contract, with the federal
  government only if the purchaser:
                     (A)  allocates and bills to the contract the cost
  of the property as a direct or indirect cost; and
                     (B)  transfers title to the property to the
  federal government under the contract and applicable federal
  acquisition regulations.
         (c)  A sale for resale does not include the sale of tangible
  personal property or a taxable service to a purchaser who acquires
  the property or service for the purpose of performing a service that
  is not taxed under this chapter, regardless of whether title
  transfers to the service provider's customer, unless the tangible
  personal property or taxable service is purchased for the purpose
  of reselling it to the United States in a contract, or a subcontract
  of a contract, with any branch of the Department of Defense,
  Department of Homeland Security, Department of Energy, National
  Aeronautics and Space Administration, Central Intelligence Agency,
  National Security Agency, National Oceanic and Atmospheric
  Administration, or National Reconnaissance Office to the extent
  allocated and billed to the contract with the federal government.
         SECTION 12.02.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this article takes effect October 1, 2011.
  ARTICLE 13.  REMITTANCE OF SALES AND USE TAXES
         SECTION 13.01.  Section 151.401, Tax Code, is amended by
  adding Subsections (c), (d), and (e) to read as follows:
         (c)  In August 2013, a taxpayer who is required to pay the
  taxes imposed by this chapter on or before the 20th day of that
  month under Subsection (a), who pays the taxes imposed by this
  chapter by electronic funds transfer, and who does not prepay as
  provided by Section 151.424 shall remit to the comptroller a tax
  prepayment that is equal to 25 percent of the amount the taxpayer is
  otherwise required to remit during August 2013 under Subsection
  (a).  The prepayment is in addition to the amount the taxpayer is
  otherwise required to remit during August. The taxpayer shall
  remit the additional payment in conjunction with the payment
  otherwise required during that month. Section 151.424 does not
  apply with respect to the additional payment required by this
  subsection.
         (d)  A taxpayer who remits the additional payment as required
  by Subsection (c) may take a credit in the amount of the additional
  payment against the next payment due under Subsection (a).
         (e)  Subsections (c) and (d) and this subsection expire
  September 1, 2015.
         SECTION 13.02.  Section 151.402, Tax Code, is amended to
  read as follows:
         Sec. 151.402.  TAX REPORT DATES. (a)  A [Except as provided
  by Subsection (b) of this section, a] tax report required by this
  chapter for a reporting period is due on the same date that the tax
  payment for the period is due as provided by Section 151.401.
         (b)  A taxpayer may report a credit in the amount of any tax
  prepayment remitted to the comptroller as required by Section
  151.401(c) on the tax report required by this chapter that is
  otherwise due in September 2013 [for taxes required by Section
  151.401(a) to be paid on or before August 20 is due on or before the
  20th day of the following month]. This subsection expires
  September 1, 2015.
         SECTION 13.03.  The expiration of the amendments made to the
  Tax Code in accordance with this article does not affect tax
  liability accruing before the expiration of those amendments. That
  liability continues in effect as if the amendments had not expired,
  and the former law is continued in effect for the collection of
  taxes due and for civil and criminal enforcement of the liability
  for those taxes.
  ARTICLE 14.  PENALTIES FOR FAILURE TO REPORT OR REMIT CERTAIN TAXES
  OR FEES
         SECTION 14.01.  Subsection (b), Section 111.00455, Tax Code,
  is amended to read as follows:
         (b)  The following are not contested cases under Subsection
  (a) and Section 2003.101, Government Code:
               (1)  a show cause hearing or any hearing not related to
  the collection, receipt, administration, or enforcement of the
  amount of a tax or fee imposed, or the penalty or interest
  associated with that amount, except for a hearing under Section
  151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;
               (2)  a property value study hearing under Subchapter M,
  Chapter 403, Government Code;
               (3)  a hearing in which the issue relates to:
                     (A)  Chapters 72-75, Property Code;
                     (B)  forfeiture of a right to do business;
                     (C)  a certificate of authority;
                     (D)  articles of incorporation;
                     (E)  a penalty imposed under Section 151.703(d)
  [151.7031];
                     (F)  the refusal or failure to settle under
  Section 111.101; or
                     (G)  a request for or revocation of an exemption
  from taxation; and
               (4)  any other hearing not related to the collection,
  receipt, administration, or enforcement of the amount of a tax or
  fee imposed, or the penalty or interest associated with that
  amount.
         SECTION 14.02.  Subsection (a), Section 151.468, Tax Code,
  as effective September 1, 2011, is amended to read as follows:
         (a)  If a person fails to file a report required by this
  subchapter or fails to file a complete report, the comptroller may
  impose a civil or criminal penalty, or both, under Section
  151.703(d) [151.7031] or 151.709.
         SECTION 14.03.  Section 151.703, Tax Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  In addition to any other penalty authorized by this
  section, a person who fails to file a report as required by this
  chapter shall pay a penalty of $50. The penalty provided by this
  subsection is assessed without regard to whether the taxpayer
  subsequently files the report or whether any taxes were due from the
  taxpayer for the reporting period under the required report.
         SECTION 14.04.  Section 152.045, Tax Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  In addition to any other penalty provided by law, the
  owner of a motor vehicle subject to the tax on gross rental receipts
  who is required to file a report as provided by this chapter and who
  fails to timely file the report shall pay a penalty of $50. The
  penalty provided by this subsection is assessed without regard to
  whether the taxpayer subsequently files the report or whether any
  taxes were due from the taxpayer for the reporting period under the
  required report.
         SECTION 14.05.  Section 152.047, Tax Code, is amended by
  adding Subsection (j) to read as follows:
         (j)  In addition to any other penalty provided by law, the
  seller of a motor vehicle sold in a seller-financed sale who is
  required to file a report as provided by this chapter and who fails
  to timely file the report shall pay a penalty of $50. The penalty
  provided by this subsection is assessed without regard to whether
  the taxpayer subsequently files the report or whether any taxes
  were due from the taxpayer for the reporting period under the
  required report.
         SECTION 14.06.  Section 156.202, Tax Code, is amended by
  amending Subsection (c) and adding Subsection (d) to read as
  follows:
         (c)  The minimum penalty under Subsections (a) and (b) [this
  section] is $1.
         (d)  In addition to any other penalty authorized by this
  section, a person who fails to file a report as required by this
  chapter shall pay a penalty of $50. The penalty provided by this
  subsection is assessed without regard to whether the taxpayer
  subsequently files the report or whether any taxes were due from the
  taxpayer for the reporting period under the required report.
         SECTION 14.07.  Section 162.401, Tax Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  In addition to any other penalty authorized by this
  section, a person who fails to file a report as required by this
  chapter shall pay a penalty of $50. The penalty provided by this
  subsection is assessed without regard to whether the taxpayer
  subsequently files the report or whether any taxes were due from the
  taxpayer for the reporting period under the required report.
         SECTION 14.08.  Section 171.362, Tax Code, is amended by
  amending Subsection (c) and adding Subsection (f) to read as
  follows:
         (c)  The minimum penalty under Subsections (a) and (b) [this
  section] is $1.
         (f)  In addition to any other penalty authorized by this
  section, a taxable entity who fails to file a report as required by
  this chapter shall pay a penalty of $50. The penalty provided by
  this subsection is assessed without regard to whether the taxable
  entity subsequently files the report or whether any taxes were due
  from the taxable entity for the reporting period under the required
  report.
         SECTION 14.09.  Subchapter B, Chapter 183, Tax Code, is
  amended by adding Section 183.024 to read as follows:
         Sec. 183.024.  FAILURE TO PAY TAX OR FILE REPORT. (a)  A
  permittee who fails to file a report as required by this chapter or
  who fails to pay a tax imposed by this chapter when due shall pay
  five percent of the amount due as a penalty, and if the permittee
  fails to file the report or pay the tax within 30 days after the day
  the tax or report is due, the permittee shall pay an additional five
  percent of the amount due as an additional penalty.
         (b)  The minimum penalty under Subsection (a) is $1.
         (c)  A delinquent tax draws interest beginning 60 days from
  the due date.
         (d)  In addition to any other penalty authorized by this
  section, a permittee who fails to file a report as required by this
  chapter shall pay a penalty of $50. The penalty provided by this
  subsection is assessed without regard to whether the permittee
  subsequently files the report or whether any taxes were due from the
  permittee for the reporting period under the required report.
         SECTION 14.10.  Section 771.0712, Health and Safety Code, is
  amended by adding Subsections (c) and (d) to read as follows:
         (c)  A seller who fails to file a report or remit a fee
  collected or payable as provided by this section and comptroller
  rules shall pay five percent of the amount due and payable as a
  penalty, and if the seller fails to file the report or remit the fee
  within 30 days after the day the fee or report is due, the seller
  shall pay an additional five percent of the amount due and payable
  as an additional penalty.
         (d)  In addition to any other penalty authorized by this
  section, a seller who fails to file a report as provided by this
  section shall pay a penalty of $50. The penalty provided by this
  subsection is assessed without regard to whether the seller
  subsequently files the report or whether any taxes were due from the
  seller for the reporting period under the required report.
         SECTION 14.11.  Section 151.7031, Tax Code, is repealed.
         SECTION 14.12.  The change in law made by this article
  applies only to a report due or a tax or fee due and payable on or
  after the effective date of this article. A report due or a tax or
  fee due and payable before the effective date of this article is
  governed by the law in effect at that time, and that law is
  continued in effect for that purpose.
         SECTION 14.13.  This article takes effect October 1, 2011.
  ARTICLE 15.  FISCAL MATTERS RELATED TO VOTER REGISTRATION
         SECTION 15.01.  Subsections (b), (c), and (d), Section
  18.065, Election Code, are amended to read as follows:
         (b)  On determining that a registrar is not in substantial
  compliance, the secretary shall deliver written notice of the
  noncompliance to[:
               [(1)]  the registrar and include[, including] in the
  notice a description of the violation and an explanation of the
  action necessary for substantial compliance and of the consequences
  of noncompliance[; and
               [(2)     the comptroller of public accounts, including in
  the notice the identity of the noncomplying registrar].
         (c)  On determining that a noncomplying registrar has
  corrected the violation and is in substantial compliance, the
  secretary shall deliver written notice to the registrar [and to the
  comptroller] that the registrar is in substantial compliance.
         (d)  [The comptroller shall retain a notice received under
  this section on file until July 1 following the voting year in which
  it is received.] The secretary shall retain a copy of each notice
  the secretary delivers under this section for two years after the
  date the notice is delivered.
         SECTION 15.02.  Subsection (a), Section 19.001, Election
  Code, is amended to read as follows:
         (a)  Before May 15 of each year, the registrar shall prepare
  and submit to the secretary of state [comptroller of public
  accounts] a statement containing:
               (1)  the total number of initial registrations for the
  previous voting year;
               (2)  the total number of registrations canceled under
  Sections 16.031(a)(1), 16.033, and 16.0332 for the previous voting
  year; and
               (3)  the total number of registrations for which
  information was updated for the previous voting year.
         SECTION 15.03.  The heading to Section 19.002, Election
  Code, is amended to read as follows:
         Sec. 19.002.  PAYMENTS [ISSUANCE OF WARRANTS BY
  COMPTROLLER].
         SECTION 15.04.  Subsection (b), Section 19.002, Election
  Code, is amended to read as follows:
         (b)  After June 1 of each year, the secretary of state
  [comptroller of public accounts] shall make payments [issue
  warrants] pursuant to vouchers submitted by the registrar and
  approved by the secretary of state in amounts that in the aggregate
  do not exceed the registrar's entitlement. The secretary of state
  shall prescribe the procedures necessary to implement this
  subsection.
         SECTION 15.05.  Subsection (d), Section 19.002, Election
  Code, as effective September 1, 2011, is amended to read as
  follows:  
         (d)  The secretary of state [comptroller] may not make a
  payment under Subsection (b) [issue a warrant] if on June 1 of the
  year in which the payment [warrant] is to be made [issued the most
  recent notice received by the comptroller from the secretary of
  state under Section 18.065 indicates that] the registrar is not in
  substantial compliance with Section 15.083, 16.032, or 18.065 or
  with rules implementing the registration service program.
         SECTION 15.06.  The heading to Section 19.0025, Election
  Code, is amended to read as follows:
         Sec. 19.0025.  ELECTRONIC ADMINISTRATION OF VOUCHERS AND
  PAYMENTS [WARRANTS].
         SECTION 15.07.  Subsection (a), Section 19.0025, Election
  Code, is amended to read as follows:
         (a)  The secretary of state shall establish and maintain an
  online electronic system for administering vouchers submitted and
  payments made [warrants issued] under Section 19.002.
         SECTION 15.08.  Subsection (c), Section 19.002, Election
  Code, is repealed.
  ARTICLE 16.  CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF
  PUBLIC ACCOUNTS
         SECTION 16.01.  Subsection (d), Section 403.0551,
  Government Code, is amended to read as follows:
         (d)  This section does not authorize the comptroller to
  deduct the amount of a state employee's indebtedness to a state
  agency from any amount of compensation owed by the agency to the
  employee, the employee's successor, or the assignee of the employee
  or successor. In this subsection, "compensation" has the meaning
  assigned by Section 403.055 and ["compensation,"] "indebtedness,"
  "state agency," "state employee," and "successor" have the meanings
  assigned by Section 666.001.
         SECTION 16.02.  Subsection (h), Section 404.022, Government
  Code, is amended to read as follows:
         (h)  The comptroller may execute a simplified version of a
  depository agreement with an eligible institution desiring to hold
  [$98,000 or less in] state deposits that are fully insured by the
  Federal Deposit Insurance Corporation or the National Credit Union
  Share Insurance Fund.
         SECTION 16.03.  Subsection (d), Section 403.0551,
  Government Code, as amended by this article, applies to a deduction
  made on or after the effective date of this Act for an indebtedness
  to a state agency regardless of:
               (1)  the date the indebtedness accrued; or
               (2)  the dates of the pay period for which the
  compensation from which the indebtedness is deducted is earned.
  ARTICLE 17.  PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND
  OTHER MATERIALS
         SECTION 17.01.  Subsection (c), Section 61.539, Education
  Code, is amended to read as follows:
         (c)  As soon as practicable after each state fiscal year, the
  board [comptroller] shall prepare a report for that fiscal year of
  the number of students registered in a medical branch, school, or
  college, the total amount of tuition charges collected by each
  institution, the total amount transferred to the comptroller under
  this section, and the total amount available in the physician
  education loan repayment program account for the repayment of
  student loans of physicians under this subchapter.  The board
  [comptroller] shall deliver a copy of the report to [the board and
  to] the governor, lieutenant governor, and speaker of the house of
  representatives not later than January 1 following the end of the
  fiscal year covered by the report.
         SECTION 17.02.  Subsection (c), Section 5.05, Tax Code, is
  amended to read as follows:
         (c)  The comptroller shall electronically publish all
  materials under this section [provide without charge one copy of
  all materials to officials of local government who are responsible]
  for administering the property tax system. [If a local government
  official requests more than one copy, the comptroller may charge a
  reasonable fee to offset the costs of printing and distributing the
  materials.] The comptroller shall make the materials available to
  local governmental officials and members of the public but may
  charge a reasonable fee to offset the costs of preparing, printing,
  and distributing the materials.
         SECTION 17.03.  Section 5.06, Tax Code, is amended to read as
  follows:
         Sec. 5.06.  EXPLANATION OF TAXPAYER REMEDIES. [(a)]  The
  comptroller shall prepare and electronically publish a pamphlet
  explaining the remedies available to dissatisfied taxpayers and the
  procedures to be followed in seeking remedial action. The
  comptroller shall include in the pamphlet advice on preparing and
  presenting a protest.
         [(b)     The comptroller shall provide without charge a
  reasonable number of copies of the pamphlet to any person on
  request. The comptroller may charge a person who requests multiple
  copies of the pamphlet a reasonable fee to offset the costs of
  printing and distributing those copies. The comptroller at its
  discretion shall determine the number of copies that a person may
  receive without charge.]
         SECTION 17.04.  Section 5.09, Tax Code, is amended to read as
  follows:
         Sec. 5.09.  BIENNIAL [ANNUAL] REPORTS. (a)  The comptroller
  shall prepare a biennial [publish an annual] report of [the
  operations of the appraisal districts. The report shall include
  for each appraisal district, each county, and each school district
  and may include for other taxing units] the total appraised
  values[, assessed values,] and taxable values of taxable property
  by category [class of property, the assessment ratio,] and the tax
  rates of each county, municipality, and school district in effect
  for the two years preceding the year in which the report is prepared
  [rate].
         (b)  Not later than December 31 of each even-numbered year,
  the [The] comptroller shall:
               (1)  electronically publish on the comptroller's
  Internet website the [deliver a copy of each annual] report
  required by [published under] Subsection (a); and
               (2)  notify [of this section to] the governor, the
  lieutenant governor, and each member of the legislature that the
  report is available on the website.
         SECTION 17.05.  The following are repealed:
               (1)  Section 403.030 and Subsection (e), Section
  552.143, Government Code; and
               (2)  Subchapter F, Chapter 379A, Local Government Code.
  ARTICLE 18.  SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE
         SECTION 18.01.  Subsection (b), Section 101.053, Insurance
  Code, is amended to read as follows:
         (b)  Sections 101.051 and 101.052 do not apply to:
               (1)  the lawful transaction of surplus lines insurance
  under Chapter 981;
               (2)  the lawful transaction of reinsurance by insurers;
               (3)  a transaction in this state that:
                     (A)  involves a policy that:
                           (i)  is lawfully solicited, written, and
  delivered outside this state; and
                           (ii)  covers, at the time the policy is
  issued, only subjects of insurance that are not resident, located,
  or expressly to be performed in this state; and
                     (B)  takes place after the policy is issued;
               (4)  a transaction:
                     (A)  that involves an insurance contract
  independently procured by the insured from an insurance company not
  authorized to do insurance business in this state through
  negotiations occurring entirely outside this state;
                     (B)  that is reported; and
                     (C)  on which premium tax, if applicable, is paid
  in accordance with Chapter 226;
               (5)  a transaction in this state that:
                     (A)  involves group life, health, or accident
  insurance, other than credit insurance, and group annuities in
  which the master policy for the group was lawfully issued and
  delivered in a state in which the insurer or person was authorized
  to do insurance business; and
                     (B)  is authorized by a statute of this state;
               (6)  an activity in this state by or on the sole behalf
  of a nonadmitted captive insurance company that insures solely:
                     (A)  directors' and officers' liability insurance
  for the directors and officers of the company's parent and
  affiliated companies;
                     (B)  the risks of the company's parent and
  affiliated companies; or
                     (C)  both the individuals and entities described
  by Paragraphs (A) and (B);
               (7)  the issuance of a qualified charitable gift
  annuity under Chapter 102; or
               (8)  a lawful transaction by a servicing company of the
  Texas workers' compensation employers' rejected risk fund under
  Section 4.08, Article 5.76-2, as that article existed before its
  repeal.
         SECTION 18.02.  Section 225.001, Insurance Code, is amended
  to read as follows:
         Sec. 225.001.  DEFINITIONS [DEFINITION]. In this chapter:
               (1)  "Affiliate" means, with respect to an insured, a
  person or entity that controls, is controlled by, or is under common
  control with the insured.
               (2)  "Affiliated group" means a group of entities whose
  members are all affiliated.
               (3)  "Control" means, with respect to determining the
  home state of an affiliated entity:
                     (A)  to directly or indirectly, acting through one
  or more persons, own, control, or hold the power to vote at least 25
  percent of any class of voting security of the affiliated entity; or
                     (B)  to control in any manner the election of the
  majority of directors or trustees of the affiliated entity.
               (4)  "Home state" means:
                     (A)  for an insured that is not an affiliated
  group described by Paragraph (B):
                           (i)  the state in which the insured
  maintains the insured's principal residence, if the insured is an
  individual;
                           (ii)  the state in which an insured that is
  not an individual maintains its principal place of business; or
                           (iii)  if 100 percent of the insured risk is
  located outside of the state in which the insured maintains the
  insured's principal residence or maintains the insured's principal
  place of business, as applicable, the state to which the largest
  percentage of the insured's taxable premium for the insurance
  contract that covers the risk is allocated; or
                     (B)  for an affiliated group with respect to which
  more than one member is a named insured on a single insurance
  contract subject to this chapter, the home state of the member, as
  determined under Paragraph (A), that has the largest percentage of
  premium attributed to it under the insurance contract.
               (5)  "Premium" means any payment made in consideration
  for insurance and[, "premium"] includes:
                     (A) [(1)]  a premium;
                     (B)  premium deposits;
                     (C) [(2)]  a membership fee;
                     (D)  a registration fee;
                     (E) [(3)]  an assessment;
                     (F) [(4)]  dues; and
                     (G) [(5)]  any other compensation given in
  consideration for surplus lines insurance.
         SECTION 18.03.  Section 225.002, Insurance Code, is amended
  to read as follows:
         Sec. 225.002.  APPLICABILITY OF CHAPTER. This chapter
  applies to a surplus lines agent who collects gross premiums for
  surplus lines insurance for any risk in which this state is the home
  state of the insured.
         SECTION 18.04.  Section 225.004, Insurance Code, is amended
  by adding Subsections (a-1) and (f) and amending Subsections (b),
  (c), and (e) to read as follows:
         (a-1)  Consistent with 15 U.S.C. Section 8201 et seq., this
  state may not impose a premium tax on nonadmitted insurance
  premiums other than premiums paid for insurance in which this state
  is the home state of the insured.
         (b)  Taxable gross premiums under this section are based on
  gross premiums written or received for surplus lines insurance
  placed through an eligible surplus lines insurer during a calendar
  year. Notwithstanding the tax basis described by this subsection,
  the comptroller by rule may establish an alternate basis for
  taxation for multistate and single-state policies for the purpose
  of achieving uniformity.
         (c)  If a surplus lines insurance policy covers risks or
  exposures only partially located in this state, and this state has
  not entered into a cooperative agreement, reciprocal agreement, or
  compact with another state for the collection of surplus lines tax
  as authorized by Chapter 229, the tax is computed on the entire
  policy [portion of the] premium for any policy in which this state
  is the home state of the insured [that is properly allocated to a
  risk or exposure located in this state].
         (e)  Premiums [The following premiums are not taxable in
  this state:
               [(1)     premiums properly allocated to another state that
  are specifically exempt from taxation in that state; and
               [(2)  premiums] on risks or exposures that are properly
  allocated to federal or international waters or are under the
  jurisdiction of a foreign government are not taxable in this state.
         (f)  If this state enters a cooperative agreement,
  reciprocal agreement, or compact with another state for the
  allocation of surplus lines tax as authorized by Chapter 229, taxes
  due on multistate policies shall be allocated and reported in
  accordance with the agreement or compact.
         SECTION 18.05.  Section 225.005, Insurance Code, is amended
  to read as follows:
         Sec. 225.005.  TAX EXCLUSIVE. The tax imposed by this
  chapter is a transaction tax collected by the surplus lines agent of
  record and is in lieu of any [all] other transaction [insurance]
  taxes on these premiums.
         SECTION 18.06.  Section 225.009, Insurance Code, is amended
  by adding Subsection (d) to read as follows:
         (d)  Notwithstanding Subsections (a), (b), and (c), if this
  state enters a cooperative agreement, reciprocal agreement, or
  compact with another state for the allocation of surplus lines tax
  as authorized by Chapter 229, the tax shall be allocated and
  reported in accordance with the terms of the agreement or compact.
         SECTION 18.07.  Section 226.051, Insurance Code, is amended
  to read as follows:
         Sec. 226.051.  DEFINITIONS [DEFINITION].  In this
  subchapter:
               (1)  "Affiliate" means, with respect to an insured, a
  person or entity that controls, is controlled by, or is under common
  control with the insured.
               (2)  "Affiliated group" means a group of entities whose
  members are all affiliated.
               (3)  "Control" means, with respect to determining the
  home state of an affiliated entity:
                     (A)  to directly or indirectly, acting through one
  or more persons, own, control, or hold the power to vote at least 25
  percent of any class of voting security of the affiliated entity; or
                     (B)  to control in any manner the election of the
  majority of directors or trustees of the affiliated entity.
               (4)  "Home state" means:
                     (A)  for an insured that is not an affiliated
  group described by Paragraph (B):
                           (i)  the state in which the insured
  maintains the insured's principal residence, if the insured is an
  individual;
                           (ii)  the state in which an insured that is
  not an individual maintains its principal place of business; or
                           (iii)  if 100 percent of the insured risk is
  located outside of the state in which the insured maintains the
  insured's principal residence or maintains the insured's principal
  place of business, as applicable, the state to which the largest
  percentage of the insured's taxable premium for the insurance
  contract that covers the risk is allocated; or
                     (B)  for an affiliated group with respect to which
  more than one member is a named insured on a single insurance
  contract subject to this chapter, the home state of the member, as
  determined under Paragraph (A), that has the largest percentage of
  premium attributed to it under the insurance contract.
               (5)  "Independently procured insurance" means
  insurance procured directly by an insured from a nonadmitted
  insurer.
               (6)  "Premium" means any payment made in consideration
  for insurance and[, "premium"] includes [any consideration for
  insurance, including]:
                     (A) [(1)]  a premium;
                     (B)  premium deposits;
                     (C) [(2)]  a membership fee; [or]
                     (D)  a registration fee;
                     (E)  an assessment;
                     (F) [(3)]  dues; and
                     (G)  any other compensation given in
  consideration for insurance.
         SECTION 18.08.  Section 226.052, Insurance Code, is amended
  to read as follows:
         Sec. 226.052.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies to an insured who procures an independently procured
  insurance contract for any risk in which this state is the home
  state of the insured [in accordance with Section 101.053(b)(4)].
         SECTION 18.09.  Section 226.053, Insurance Code, is amended
  by amending Subsections (a) and (b) and adding Subsection (d) to
  read as follows:
         (a)  A tax is imposed on each insured at the rate of 4.85
  percent of the premium paid for the insurance contract procured in
  accordance with Section 226.052 [101.053(b)(4)].
         (b)  If an independently procured insurance policy
  [contract] covers risks or exposures only partially located in this
  state and this state has not joined a cooperative agreement,
  reciprocal agreement, or compact with another state for the
  allocation of nonadmitted insurance taxes as authorized by Chapter
  229, the tax is computed on the entire policy [portion of the]
  premium for any policy in which this state is the home state of the
  insured [that is properly allocated to a risk or exposure located in
  this state].
         (d)  If this state enters into a cooperative agreement,
  reciprocal agreement, or compact with another state for the
  allocation of nonadmitted insurance taxes as authorized by Chapter
  229, the tax due on multistate policies shall be allocated and
  reported in accordance with the agreement or compact.
         SECTION 18.10.  Section 981.008, Insurance Code, is amended
  to read as follows:
         Sec. 981.008.  SURPLUS LINES INSURANCE PREMIUM TAX. The
  premiums charged for surplus lines insurance are subject to the
  premium tax, if applicable, imposed under Chapter 225.
         SECTION 18.11.  The following provisions are repealed:
               (1)  Subsections (d) and (d-1), Section 225.004,
  Insurance Code; and
               (2)  Subsection (b-1), Section 226.053, Insurance
  Code.
         SECTION 18.12.  The changes in law made by this article to
  Chapters 225 and 226, Insurance Code, apply only to an insurance
  policy that is delivered, issued for delivery, or renewed on or
  after July 21, 2011.  A policy that is delivered, issued for
  delivery, or renewed before July 21, 2011, is governed by the law as
  it existed immediately before the effective date of this article,
  and that law is continued in effect for that purpose.
         SECTION 18.13.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this article takes effect on the 91st day after
  the last day of the legislative session.
  ARTICLE 19.  FISCAL MATTERS CONCERNING OIL AND GAS REGULATION
         SECTION 19.01.  Subsection (c), Section 81.0521, Natural
  Resources Code, is amended to read as follows:
         (c)  Two-thirds of the proceeds from this fee, excluding 
  [including] any penalties collected in connection with the fee,
  shall be deposited to the oil and gas regulation and [oil-field]
  cleanup fund as provided by Section 81.067 [91.111].
         SECTION 19.02.  Subchapter C, Chapter 81, Natural Resources
  Code, is amended by adding Sections 81.067 through 81.070 to read as
  follows:
         Sec. 81.067.  OIL AND GAS REGULATION AND CLEANUP FUND.
  (a)  The oil and gas regulation and cleanup fund is created as an
  account in the general revenue fund of the state treasury.
         (b)  The commission shall certify to the comptroller the date
  on which the balance in the fund equals or exceeds $20 million. The
  oil-field cleanup regulatory fees on oil and gas shall not be
  collected or required to be paid on or after the first day of the
  second month following the certification, except that the
  comptroller shall resume collecting the fees on receipt of a
  commission certification that the fund has fallen below $10
  million. The comptroller shall continue collecting the fees until
  collections are again suspended in the manner provided by this
  subsection.
         (c)  The fund consists of:
               (1)  proceeds from bonds and other financial security
  required by this chapter and benefits under well-specific plugging
  insurance policies described by Section 91.104(c) that are paid to
  the state as contingent beneficiary of the policies, subject to the
  refund provisions of Section 91.1091, if applicable;
               (2)  private contributions, including contributions
  made under Section 89.084;
               (3)  expenses collected under Section 89.083;
               (4)  fees imposed under Section 85.2021;
               (5)  costs recovered under Section 91.457 or 91.459;
               (6)  proceeds collected under Sections 89.085 and
  91.115;
               (7)  interest earned on the funds deposited in the
  fund;
               (8)  oil and gas waste hauler permit application fees
  collected under Section 29.015, Water Code;
               (9)  costs recovered under Section 91.113(f);
               (10)  hazardous oil and gas waste generation fees
  collected under Section 91.605;
               (11)  oil-field cleanup regulatory fees on oil
  collected under Section 81.116;
               (12)  oil-field cleanup regulatory fees on gas
  collected under Section 81.117;
               (13)  fees for a reissued certificate collected under
  Section 91.707;
               (14)  fees collected under Section 91.1013;
               (15)  fees collected under Section 89.088;
               (16)  fees collected under Section 91.142;
               (17)  fees collected under Section 91.654;
               (18)  costs recovered under Sections 91.656 and 91.657;
               (19)  two-thirds of the fees collected under Section
  81.0521;
               (20)  fees collected under Sections 89.024 and 89.026;
               (21)  legislative appropriations; and
               (22)  any surcharges collected under Section 81.070.
         Sec. 81.068.  PURPOSE OF OIL AND GAS REGULATION AND CLEANUP
  FUND. Money in the oil and gas regulation and cleanup fund may be
  used by the commission or its employees or agents for any purpose
  related to the regulation of oil and gas development, including oil
  and gas monitoring and inspections, oil and gas remediation, oil
  and gas well plugging, public information and services related to
  those activities, and administrative costs and state benefits for
  personnel involved in those activities.
         Sec. 81.069.  REPORTING ON PROGRESS IN MEETING PERFORMANCE
  GOALS FOR THE OIL AND GAS REGULATION AND CLEANUP FUND. (a)  The
  commission, through the legislative appropriations request
  process, shall establish specific performance goals for the oil and
  gas regulation and cleanup fund for the next biennium, including
  goals for each quarter of each state fiscal year of the biennium for
  the number of:
               (1)  orphaned wells to be plugged with state-managed
  funds;
               (2)  abandoned sites to be investigated, assessed, or
  cleaned up with state funds; and
               (3)  surface locations to be remediated.
         (b)  The commission shall provide quarterly reports to the
  Legislative Budget Board that include:
               (1)  the following information with respect to the
  period since the last report was provided as well as cumulatively:
                     (A)  the amount of money deposited in the oil and
  gas regulation and cleanup fund;
                     (B)  the amount of money spent from the fund for
  the purposes described by Subsection (a);
                     (C)  the balance of the fund; and
                     (D)  the commission's progress in meeting the
  quarterly performance goals established under Subsection (a) and,
  if the number of orphaned wells plugged with state-managed funds,
  abandoned sites investigated, assessed, or cleaned up with state
  funds, or surface locations remediated is at least five percent
  less than the number projected in the applicable goal established
  under Subsection (a), an explanation of the reason for the
  variance; and
               (2)  any additional information or data requested in
  writing by the Legislative Budget Board.
         (c)  The commission shall 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. The report must include:
               (1)  the performance goals established under
  Subsection (a) for that state fiscal year, the commission's
  progress in meeting those performance goals, and, if the number of
  orphaned wells plugged with state-managed funds, abandoned sites
  investigated, assessed, or cleaned up with state funds, or surface
  locations remediated is at least five percent less than the number
  projected in the applicable goal established under Subsection (a),
  an explanation of the reason for the variance;
               (2)  the number of orphaned wells plugged with
  state-managed funds, by region;
               (3)  the number of wells orphaned, by region;
               (4)  the number of inactive wells not currently in
  compliance with commission rules, by region;
               (5)  the status of enforcement proceedings for all
  wells in violation of commission rules and the period during which
  the wells have been in violation, by region in which the wells are
  located;
               (6)  the number of surface locations remediated, by
  region;
               (7)  a detailed accounting of expenditures of money in
  the fund for oil-field cleanup activities, including expenditures
  for plugging of orphaned wells, investigation, assessment, and
  cleaning up of abandoned sites, and remediation of surface
  locations;
               (8)  the method by which the commission sets priorities
  by which it determines the order in which orphaned wells are
  plugged;
               (9)  a projection of the amount of money needed for the
  next biennium for plugging orphaned wells, investigating,
  assessing, and cleaning up abandoned sites, and remediating surface
  locations; and
               (10)  the number of sites successfully remediated under
  the voluntary cleanup program under Subchapter O, Chapter 91, by
  region.
         Sec. 81.070.  ESTABLISHMENT OF SURCHARGES ON FEES.
  (a)  Except as provided by Subsection (b), the commission by rule
  shall provide for the imposition of reasonable surcharges as
  necessary on fees imposed by the commission that are required to be
  deposited to the credit of the oil and gas regulation and cleanup
  fund as provided by Section 81.067 in amounts sufficient to enable
  the commission to recover the costs of performing the functions
  specified by Section 81.068 from those fees and surcharges.
         (b)  The commission may not impose a surcharge on an
  oil-field cleanup regulatory fee on oil collected under Section
  81.116 or an oil-field cleanup regulatory fee on gas collected
  under Section 81.117.
         (c)  The commission by rule shall establish a methodology for
  determining the amount of a surcharge that takes into account:
               (1)  the time required for regulatory work associated
  with the activity in connection with which the surcharge is
  imposed;
               (2)  the number of individuals or entities from which
  the commission's costs may be recovered;
               (3)  the effect of the surcharge on operators of all
  sizes, as measured by the number of oil or gas wells operated;
               (4)  the balance in the oil and gas regulation and
  cleanup fund; and
               (5)  any other factors the commission determines to be
  important to the fair and equitable imposition of the surcharge.
         (d)  The commission shall collect a surcharge on a fee at the
  time the fee is collected.
         (e)  A surcharge collected under this section shall be
  deposited to the credit of the oil and gas regulation and cleanup
  fund as provided by Section 81.067.
         (f)  A surcharge collected under this section shall not
  exceed an amount equal to 185 percent of the fee on which it is
  imposed.
         SECTION 19.03.  Section 81.115, Natural Resources Code, is
  amended to read as follows:
         Sec. 81.115.  APPROPRIATIONS [PAYMENTS] TO COMMISSION FOR 
  OIL AND GAS REGULATION AND CLEANUP PURPOSES [DIVISION]. Money
  appropriated to the [oil and gas division of the] commission under
  the General Appropriations Act for the purposes described by
  Section 81.068 shall be paid from the oil and gas regulation and
  cleanup fund or other fund indicated by the appropriation [General
  Revenue Fund].
         SECTION 19.04.  Subsections (d) and (e), Section 81.116,
  Natural Resources Code, are amended to read as follows:
         (d)  The comptroller shall suspend collection of the fee in
  the manner provided by Section 81.067 [91.111].  The exemptions and
  reductions set out in Sections 202.052, 202.054, 202.056, 202.057,
  202.059, and 202.060, Tax Code, do not affect the fee imposed by
  this section.
         (e)  Proceeds from the fee, excluding [including] any
  penalties collected in connection with the fee, shall be deposited
  to the oil and gas regulation and [oil-field] cleanup fund as
  provided by Section 81.067 [91.111 of this code].
         SECTION 19.05.  Subsections (d) and (e), Section 81.117,
  Natural Resources Code, are amended to read as follows:
         (d)  The comptroller shall suspend collection of the fee in
  the manner provided by Section 81.067 [91.111].  The exemptions and
  reductions set out in Sections 201.053, 201.057, 201.058, and
  202.060, Tax Code, do not affect the fee imposed by this section.
         (e)  Proceeds from the fee, excluding [including] any
  penalties collected in connection with the fee, shall be deposited
  to the oil and gas regulation and [oil-field] cleanup fund as
  provided by Section 81.067 [91.111 of this code].
         SECTION 19.06.  Subsection (d), Section 85.2021, Natural
  Resources Code, is amended to read as follows:
         (d)  All fees collected under this section shall be deposited
  in the oil and gas regulation and [state oil-field] cleanup fund.
         SECTION 19.07.  Subsection (d), Section 89.024, Natural
  Resources Code, is amended to read as follows:
         (d)  An operator who files an abeyance of plugging report
  must pay an annual fee of $100 for each well covered by the report.  
  A fee collected under this section shall be deposited in the oil and
  gas regulation and [oil-field] cleanup fund.
         SECTION 19.08.  Subsection (d), Section 89.026, Natural
  Resources Code, is amended to read as follows:
         (d)  An operator who files documentation described by
  Subsection (a) must pay an annual fee of $50 for each well covered
  by the documentation.  A fee collected under this section shall be
  deposited in the oil and gas regulation and [oil-field] cleanup
  fund.
         SECTION 19.09.  Subsection (d), Section 89.048, Natural
  Resources Code, is amended to read as follows:
         (d)  On successful plugging of the well by the well plugger,
  the surface estate owner may submit documentation to the commission
  of the cost of the well-plugging operation.  The commission shall
  reimburse the surface estate owner from money in the oil and gas
  regulation and [oil-field] cleanup fund in an amount not to exceed
  50 percent of the lesser of:
               (1)  the documented well-plugging costs; or
               (2)  the average cost incurred by the commission in the
  preceding 24 months in plugging similar wells located in the same
  general area.
         SECTION 19.10.  Subsection (j), Section 89.083, Natural
  Resources Code, is amended to read as follows:
         (j)  Money collected in a suit under this section shall be
  deposited in the oil and gas regulation and [state oil-field]
  cleanup fund.
         SECTION 19.11.  Subsection (d), Section 89.085, Natural
  Resources Code, is amended to read as follows:
         (d)  The commission shall deposit money received from the
  sale of well-site equipment or hydrocarbons under this section to
  the credit of the oil and gas regulation and [oil-field] cleanup
  fund. The commission shall separately account for money and credit
  received for each well.
         SECTION 19.12.  The heading to Section 89.086, Natural
  Resources Code, is amended to read as follows:
         Sec. 89.086.  CLAIMS AGAINST OIL AND GAS REGULATION AND [THE
  OIL-FIELD] CLEANUP FUND.
         SECTION 19.13.  Subsections (a) and (h) through (k), Section
  89.086, Natural Resources Code, are amended to read as follows:
         (a)  A person with a legal or equitable ownership or security
  interest in well-site equipment or hydrocarbons disposed of under
  Section 89.085 [of this code] may make a claim against the oil and
  gas regulation and [oil-field] cleanup fund unless an element of
  the transaction giving rise to the interest occurs after the
  commission forecloses its statutory lien under Section 89.083.
         (h)  The commission shall suspend an amount of money in the
  oil and gas regulation and [oil-field] cleanup fund equal to the
  amount of the claim until the claim is finally resolved. If the
  provisions of Subsection (k) [of this section] prevent suspension
  of the full amount of the claim, the commission shall treat the
  claim as two consecutively filed claims, one in the amount of funds
  available for suspension and the other in the remaining amount of
  the claim.
         (i)  A claim made by or on behalf of the operator or a
  nonoperator of a well or a successor to the rights of the operator
  or nonoperator is subject to a ratable deduction from the proceeds
  or credit received for the well-site equipment to cover the costs
  incurred by the commission in removing the equipment or
  hydrocarbons from the well or in transporting, storing, or
  disposing of the equipment or hydrocarbons. A claim made by a
  person who is not an operator or nonoperator is subject to a ratable
  deduction for the costs incurred by the commission in removing the
  equipment from the well. If a claimant is a person who is
  responsible under law or commission rules for plugging the well or
  cleaning up pollution originating on the lease or if the claimant
  owes a penalty assessed by the commission or a court for a violation
  of a commission rule or order, the commission may recoup from or
  offset against a valid claim an expense incurred by the oil and gas
  regulation and [oil-field] cleanup fund that is not otherwise
  reimbursed or any penalties owed. An amount recouped from,
  deducted from, or offset against a claim under this subsection
  shall be treated as an invalid portion of the claim and shall remain
  suspended in the oil and gas regulation and [oil-field] cleanup
  fund in the manner provided by Subsection (j) [of this section].
         (j)  If the commission finds that a claim is valid in whole or
  in part, the commission shall pay the valid portion of the claim
  from the suspended amount in the oil and gas regulation and
  [oil-field] cleanup fund not later than the 30th day after the date
  of the commission's decision. If the commission finds that a claim
  is invalid in whole or in part, the commission shall continue to
  suspend in the oil and gas regulation and [oil-field] cleanup fund
  an amount equal to the invalid portion of the claim until the period
  during which the commission's decision may be appealed has expired
  or, if appealed, during the period the case is under judicial
  review. If on appeal the district court finds the claim valid in
  whole or in part, the commission shall pay the valid portion of the
  claim from the suspended amount in the oil and gas regulation and
  [oil-field] cleanup fund not later than 30 days after the date the
  court's judgment becomes unappealable. On the date the
  commission's decision is not subject to judicial review, the
  commission shall release from the suspended amount in the oil and
  gas regulation and [oil-field] cleanup fund the amount of the claim
  held to be invalid.
         (k)  If the aggregate of claims paid and money suspended that
  relates to well-site equipment or hydrocarbons from a particular
  well equals the total of the actual proceeds and credit realized
  from the disposition of that equipment or those hydrocarbons, the
  oil and gas regulation and [oil-field] cleanup fund is not liable
  for any subsequently filed claims that relate to the same equipment
  or hydrocarbons unless and until the commission releases from the
  suspended amount money derived from the disposition of that
  equipment or those hydrocarbons. If the commission releases money,
  then the commission shall suspend money in the amount of
  subsequently filed claims in the order of filing.
         SECTION 19.14.  Subsection (b), Section 89.121, Natural
  Resources Code, is amended to read as follows:
         (b)  Civil penalties collected for violations of this
  chapter or of rules relating to plugging that are adopted under this
  code shall be deposited in the general revenue [state oil-field
  cleanup] fund.
         SECTION 19.15.  Subsection (c), Section 91.1013, Natural
  Resources Code, is amended to read as follows:
         (c)  Fees collected under this section shall be deposited in
  the oil and gas regulation and [state oil-field] cleanup fund.
         SECTION 19.16.  Section 91.108, Natural Resources Code, is
  amended to read as follows:
         Sec. 91.108.  DEPOSIT AND USE OF FUNDS. Subject to the
  refund provisions of Section 91.1091, if applicable, proceeds from
  bonds and other financial security required pursuant to this
  chapter and benefits under well-specific plugging insurance
  policies described by Section 91.104(c) that are paid to the state
  as contingent beneficiary of the policies shall be deposited in the
  oil and gas regulation and [oil-field] cleanup fund and,
  notwithstanding Sections 81.068 [91.112] and 91.113, may be used
  only for actual well plugging and surface remediation.
         SECTION 19.17.  Subsection (a), Section 91.109, Natural
  Resources Code, is amended to read as follows:
         (a)  A person applying for or acting under a commission
  permit to store, handle, treat, reclaim, or dispose of oil and gas
  waste may be required by the commission to maintain a performance
  bond or other form of financial security conditioned that the
  permittee will operate and close the storage, handling, treatment,
  reclamation, or disposal site in accordance with state law,
  commission rules, and the permit to operate the site. However, this
  section does not authorize the commission to require a bond or other
  form of financial security for saltwater disposal pits, emergency
  saltwater storage pits (including blow-down pits), collecting
  pits, or skimming pits provided that such pits are used in
  conjunction with the operation of an individual oil or gas lease.
  Subject to the refund provisions of Section 91.1091 [of this code],
  proceeds from any bond or other form of financial security required
  by this section shall be placed in the oil and gas regulation and
  [oil-field] cleanup fund. Each bond or other form of financial
  security shall be renewed and continued in effect until the
  conditions have been met or release is authorized by the
  commission.
         SECTION 19.18.  Subsections (a) and (f), Section 91.113,
  Natural Resources Code, are amended to read as follows:
         (a)  If oil and gas wastes or other substances or materials
  regulated by the commission under Section 91.101 are causing or are
  likely to cause the pollution of surface or subsurface water, the
  commission, through its employees or agents, may use money in the
  oil and gas regulation and [oil-field] cleanup fund to conduct a
  site investigation or environmental assessment or control or clean
  up the oil and gas wastes or other substances or materials if:
               (1)  the responsible person has failed or refused to
  control or clean up the oil and gas wastes or other substances or
  materials after notice and opportunity for hearing;
               (2)  the responsible person is unknown, cannot be
  found, or has no assets with which to control or clean up the oil and
  gas wastes or other substances or materials; or
               (3)  the oil and gas wastes or other substances or
  materials are causing the pollution of surface or subsurface water.
         (f)  If the commission conducts a site investigation or
  environmental assessment or controls or cleans up oil and gas
  wastes or other substances or materials under this section, the
  commission may recover all costs incurred by the commission from
  any person who was required by law, rules adopted by the commission,
  or a valid order of the commission to control or clean up the oil and
  gas wastes or other substances or materials. The commission by
  order may require the person to reimburse the commission for those
  costs or may request the attorney general to file suit against the
  person to recover those costs. At the request of the commission,
  the attorney general may file suit to enforce an order issued by the
  commission under this subsection. A suit under this subsection may
  be filed in any court of competent jurisdiction in Travis County.
  Costs recovered under this subsection shall be deposited to the oil
  and gas regulation and [oil-field] cleanup fund.
         SECTION 19.19.  Subsection (c), Section 91.264, Natural
  Resources Code, is amended to read as follows:
         (c)  A penalty collected under this section shall be
  deposited to the credit of the general revenue [oil-field cleanup]
  fund [account].
         SECTION 19.20.  Subsection (b), Section 91.457, Natural
  Resources Code, is amended to read as follows:
         (b)  If a person ordered to close a saltwater disposal pit
  under Subsection (a) [of this section] fails or refuses to close the
  pit in compliance with the commission's order and rules, the
  commission may close the pit using money from the oil and gas
  regulation and [oil-field] cleanup fund and may direct the attorney
  general to file suits in any courts of competent jurisdiction in
  Travis County to recover applicable penalties and the costs
  incurred by the commission in closing the saltwater disposal pit.
         SECTION 19.21.  Subsection (c), Section 91.459, Natural
  Resources Code, is amended to read as follows:
         (c)  Any [penalties or] costs recovered by the attorney
  general under this subchapter shall be deposited in the oil and gas
  regulation and [oil-field] cleanup fund.
         SECTION 19.22.  Subsection (e), Section 91.605, Natural
  Resources Code, is amended to read as follows:
         (e)  The fees collected under this section shall be deposited
  in the oil and gas regulation and [oil-field] cleanup fund.
         SECTION 19.23.  Subsection (e), Section 91.654, Natural
  Resources Code, is amended to read as follows:
         (e)  Fees collected under this section shall be deposited to
  the credit of the oil and gas regulation and [oil-field] cleanup
  fund under Section 81.067 [91.111].
         SECTION 19.24.  Subsection (b), Section 91.707, Natural
  Resources Code, is amended to read as follows:
         (b)  Fees collected under this section shall be deposited to
  the oil and gas regulation and [oil-field] cleanup fund.
         SECTION 19.25.  The heading to Section 121.211, Utilities
  Code, is amended to read as follows:
         Sec. 121.211.  PIPELINE SAFETY AND REGULATORY FEES.
         SECTION 19.26.  Subsections (a) through (e) and (h), Section
  121.211, Utilities Code, are amended to read as follows:
         (a)  The railroad commission by rule may adopt a [an
  inspection] fee to be assessed annually against operators of
  natural gas distribution pipelines and their pipeline facilities
  and natural gas master metered pipelines and their pipeline
  facilities subject to this title [chapter].
         (b)  The railroad commission by rule shall establish the
  method by which the fee will be calculated and assessed. In
  adopting a fee structure, the railroad commission may consider any
  factors necessary to provide for the equitable allocation among
  operators of the costs of administering the railroad commission's
  pipeline safety and regulatory program under this title [chapter].
         (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 [chapter], excluding costs that are fully funded by federal
  sources.
         (d)  The commission may assess each operator of a natural gas
  distribution system subject to this title [chapter] an annual
  [inspection] fee not to exceed one dollar for each service line
  reported by the system on the Distribution Annual Report, Form RSPA
  F7100.1-1, due on March 15 of each year.  The fee is due March 15 of
  each year.
         (e)  The railroad commission may assess each operator of a
  natural gas master metered system subject to this title [chapter]
  an annual [inspection] fee not to exceed $100 for each master
  metered system.  The fee is due June 30 of each year.
         (h)  A fee collected under this section shall be deposited to
  the credit of the general revenue fund to be used for the pipeline
  safety and regulatory program.
         SECTION 19.27.  Section 29.015, Water Code, is amended to
  read as follows:
         Sec. 29.015.  APPLICATION FEE. With each application for
  issuance, renewal, or material amendment of a permit, the applicant
  shall submit to the railroad commission a nonrefundable fee of
  $100.  Fees collected under this section shall be deposited in the
  oil and gas regulation and [oil-field] cleanup fund.
         SECTION 19.28.  The following provisions of the Natural
  Resources Code are repealed:
               (1)  Section 91.111; and
               (2)  Section 91.112.
         SECTION 19.29.  On the effective date of this article:
               (1)  the oil-field cleanup fund is abolished;
               (2)  any money remaining in the oil-field cleanup fund
  is transferred to the oil and gas regulation and cleanup fund;
               (3)  any claim against the oil-field cleanup fund is
  transferred to the oil and gas regulation and cleanup fund; and
               (4)  any amount required to be deposited to the credit
  of the oil-field cleanup fund shall be deposited to the credit of
  the oil and gas regulation and cleanup fund.
  ARTICLE 20.  FISCAL MATTERS RELATING TO SECRETARY OF STATE
         SECTION 20.01.  Section 405.014, Government Code, is amended
  to read as follows:
         Sec. 405.014.  ACTS OF THE LEGISLATURE. (a)  At each
  session of the legislature the secretary of state shall obtain the
  bills that have become law. Immediately after the closing of each
  session of the legislature, the secretary of state shall bind all
  enrolled bills and resolutions in volumes on which the date of the
  session is placed.
         (b)  As soon as practicable after the closing of each session
  of the legislature, the secretary of state shall publish and
  maintain electronically the bills enacted at that session. The
  electronic publication must be:
               (1)  indexed by bill number and assigned chapter number
  for each bill; and
               (2)  made available by an electronic link on the
  secretary of state's generally accessible Internet website.
         SECTION 20.02.  Subchapter B, Chapter 2158, Government Code,
  is repealed.
         SECTION 20.03.  The change in law made by this article does
  not apply to a contract for the publication of the laws of this
  state entered into before the effective date of this article.
         SECTION 20.04.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this article takes effect on the 91st day after
  the last day of the legislative session.
  ARTICLE 21.  FISCAL MATTERS REGARDING ATTORNEY GENERAL
         SECTION 21.01.  Section 402.006, Government Code, is amended
  by adding Subsection (e) to read as follows:
         (e)  The attorney general may charge a reasonable fee for the
  electronic filing of a document.
         SECTION 21.02.  The fee prescribed by Section 402.006,
  Government Code, as amended by this article, applies only to a
  document electronically submitted to the office of the attorney
  general on or after the effective date of this article.
         SECTION 21.03.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this article takes effect on the 91st day after
  the last day of the legislative session.
  ARTICLE 22.  TEXAS PRESERVATION TRUST FUND ACCOUNT
         SECTION 22.01.  Subsections (a), (b), and (f), Section
  442.015, Government Code, are amended to read as follows:
         (a)  Notwithstanding Section [Sections 403.094 and] 403.095,
  the Texas preservation trust fund account is a separate account in
  the general revenue fund.  The account consists of transfers made to
  the account, loan repayments, grants and donations made for the
  purposes of this program, proceeds of sales, income earned
  [earnings] on money in the account, and any other money received
  under this section.  Money in [Distributions from] the account may
  be used only for the purposes of this section and [may not be used]
  to pay operating expenses of the commission.  Money allocated to the
  commission's historic preservation grant program shall be
  deposited to the credit of the account.  Income earned [Earnings] on
  money in the account shall be deposited to the credit of the
  account.
         (b)  The commission may use money in [distributions from] the
  Texas preservation trust fund account to provide financial
  assistance to public or private entities for the acquisition,
  survey, restoration, or preservation, or for planning and
  educational activities leading to the preservation, of historic
  property in the state that is listed in the National Register of
  Historic Places or designated as a State Archeological Landmark or
  Recorded Texas Historic Landmark, or that the commission determines
  is eligible for such listing or designation.  The financial
  assistance may be in the amount and form and according to the terms
  that the commission by rule determines.  The commission shall give
  priority to property the commission determines to be endangered by
  demolition, neglect, underuse, looting, vandalism, or other threat
  to the property.  Gifts and grants deposited to the credit of the
  account specifically for any eligible projects may be used only for
  the type of projects specified.  If such a specification is not
  made, the gift or grant shall be unencumbered and accrue to the
  benefit of the Texas preservation trust fund account.  If such a
  specification is made, the entire amount of the gift or grant may be
  used during any period for the project or type of project specified.
         (f)  The advisory board shall recommend to the commission
  rules for administering this section [Subsections (a)-(e)].
         SECTION 22.02.  Subsections (h), (i), (j), (k), and (l),
  Section 442.015, Government Code, are repealed.
         SECTION 22.03.  The comptroller of public accounts and the
  Texas Historical Commission shall enter into a memorandum of
  understanding to facilitate the conversion of assets of the Texas
  preservation trust fund account into cash for deposit into the
  state treasury using a method that provides for the lowest amount of
  revenue loss to the state.
         SECTION 22.04.  This article takes effect November 1, 2011.
  ARTICLE 23. FISCAL MATTERS CONCERNING INFORMATION TECHNOLOGY
         SECTION 23.01.  Section 572.054, Government Code, is amended
  by adding Subsection (g-1) to read as follows:
         (g-1)  For purposes of this section, the Department of
  Information Resources is a regulatory agency.
         SECTION 23.02.  Section 2054.005, Government Code, is
  amended to read as follows:
         Sec. 2054.005.  SUNSET PROVISION.  (a)  The Department of
  Information Resources is subject to Chapter 325 (Texas Sunset
  Act).  Unless continued in existence as provided by that chapter,
  the department is abolished and this chapter expires September 1,
  2013 [2011].
         (b)  The review of the Department of Information Resources by
  the Sunset Advisory Commission in preparation for the work of the
  83rd Legislature, Regular Session, is not limited to the
  appropriateness of recommendations made by the commission to the
  82nd Legislature. In the commission's report to the 83rd
  Legislature, the commission may include any recommendations it
  considers appropriate.
         SECTION 23.03.  Subchapter C, Chapter 2054, Government Code,
  is amended by adding Section 2054.064 to read as follows:
         Sec. 2054.064.  BOARD APPROVAL OF CONTRACTS. The board by
  rule shall establish approval requirements for all contracts,
  including a monetary threshold above which board approval is
  required before the contract may be executed.
         SECTION 23.04.  Subsection (b), Section 2054.376,
  Government Code, is amended to read as follows:
         (b)  This subchapter does not apply to:
               (1)  the Department of Public Safety's use for criminal
  justice or homeland security purposes of a federal database or
  network;
               (2)  a Texas equivalent of a database or network
  described by Subdivision (1) that is managed by the Department of
  Public Safety;
               (3)  the uniform statewide accounting system, as that
  term is used in Subchapter C, Chapter 2101;
               (4)  the state treasury cash and treasury management
  system; [or]
               (5)  a database or network managed by the comptroller
  to:
                     (A)  collect and process multiple types of taxes
  imposed by the state; or
                     (B)  manage or administer fiscal, financial,
  revenue, and expenditure activities of the state under Chapter 403
  and Chapter 404; or
               (6)  a database or network managed by the Department of
  Agriculture.
         SECTION 23.05.  Section 2054.380, Government Code, is
  amended to read as follows:
         Sec. 2054.380.  FEES.  (a)  The department shall set and
  charge a fee to each state agency that receives a service from a
  statewide technology center in an amount sufficient to cover the
  direct and indirect cost of providing the service.
         (b)  Revenue derived from the collection of fees imposed
  under Subsection (a) may be appropriated to the department for:
               (1)  developing statewide information resources
  technology policies and planning under this chapter and Chapter
  2059; and
               (2)  providing shared information resources technology
  services under this chapter.
         SECTION 23.06.  Subsections (b) and (d), Section 2157.068,
  Government Code, are amended to read as follows:
         (b)  The department shall negotiate with vendors [to
  attempt] to obtain the best value for the state in the purchase of
  commodity items. The department may consider strategic sourcing
  and other methodologies to select the vendor offering the best
  value on [a favorable price for all of state government on licenses
  for] commodity items[, based on the aggregate volume of purchases
  expected to be made by the state]. The terms and conditions of a
  license agreement between a vendor and the department under this
  section may not be less favorable to the state than the terms of
  similar license agreements between the vendor and retail
  distributors.
         (d)  The department may charge a reasonable administrative
  fee to a state agency, political subdivision of this state, or
  governmental entity of another state that purchases commodity items
  through the department in an amount that is sufficient to recover
  costs associated with the administration of this section.  Revenue
  derived from the collection of fees imposed under this subsection
  may be appropriated to the department for:
               (1)  developing statewide information resources
  technology policies and planning under Chapters 2054 and 2059; and
               (2)  providing shared information resources technology
  services under Chapter 2054.
         SECTION 23.07.  Subsections (a) and (d), Section 2170.057,
  Government Code, are amended to read as follows:
         (a)  The department shall develop a system of billings and
  charges for services provided in operating and administering the
  consolidated telecommunications system that allocates the total
  state cost to each entity served by the system based on
  proportionate usage.  The department shall set and charge a fee to
  each entity that receives services provided under this chapter in
  an amount sufficient to cover the direct and indirect costs of
  providing the service.  Revenue derived from the collection of fees
  imposed under this subsection may be appropriated to the department
  for:
               (1)  developing statewide information resources
  technology policies and planning under Chapters 2054 and 2059; and
               (2)  providing:
                     (A)  shared information resources technology
  services under Chapter 2054; and
                     (B)  network security services under Chapter
  2059.
         (d)  The department shall maintain in the revolving fund
  account sufficient amounts to pay the bills of the consolidated
  telecommunications system and the centralized capitol complex
  telephone system. [The department shall certify amounts that
  exceed this amount to the comptroller, and the comptroller shall
  transfer the excess amounts to the credit of the statewide network
  applications account established by Section 2054.011.]
  ARTICLE 24.  CONTINUING LEGAL EDUCATION REQUIREMENTS FOR ATTORNEY
  EMPLOYED BY ATTORNEY GENERAL
         SECTION 24.01.  Section 81.113, Government Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  The state bar shall credit an attorney licensed in
  this state with meeting the minimum continuing legal education
  requirements of the state bar for a reporting year if during the
  reporting year the attorney is employed full-time as an attorney by
  the office of the attorney general.  An attorney credited for
  continuing legal education under this subsection must meet the
  continuing legal education requirements of the state bar in legal
  ethics or professional responsibility.  This subsection expires
  January 1, 2014.
         SECTION 24.02.  Subchapter A, Chapter 402, Government Code,
  is amended by adding Section 402.011 to read as follows:
         Sec. 402.011.  CONTINUING LEGAL EDUCATION PROGRAMS.  The
  office of the attorney general shall recognize, prepare, or
  administer continuing legal education programs that meet
  continuing legal education requirements imposed under Section
  81.113(c) for the attorneys employed by the office.  This section
  expires January 1, 2014.
         SECTION 24.03.  Section 81.113, Government Code, as amended
  by this article, applies only to the requirements for a continuing
  legal education compliance year that ends on or after October 1,
  2011. The requirements for continuing legal education for a
  compliance year that ends before October 1, 2011, are covered by the
  law and rules in effect when the compliance year ended, and that law
  and those rules are continued in effect for that purpose.
  ARTICLE 25.  REGISTRATION FEE AND REGISTRATION RENEWAL FEE FOR
  LOBBYISTS
         SECTION 25.01.  Subsection (c), Section 305.005, Government
  Code, is amended to read as follows:
         (c)  The registration fee and registration renewal fee are:
               (1)  $150 [$100] for a registrant employed by an
  organization exempt from federal income tax under Section
  501(c)(3), [or] 501(c)(4), or 501(c)(6), Internal Revenue Code of
  1986;
               (2)  $75 [$50] for any person required to register
  solely because the person is required to register under Section
  305.0041 [of this chapter]; or
               (3)  $750 [$500] for any other registrant.
  ARTICLE 26.  PUBLIC ASSISTANCE REPORTING INFORMATION SYSTEM
         SECTION 26.01.  Subsection (c), Section 434.017, Government
  Code, is amended to read as follows:
         (c)  Money in the fund may only be appropriated to the Texas
  Veterans Commission.  Money appropriated under this subsection
  shall be used to:
               (1)  make grants to address veterans' needs; [and]
               (2)  administer the fund; and
               (3)  analyze and investigate data received from the
  federal Public Assistance Reporting Information System (PARIS)
  that is administered by the Administration for Children and
  Families of the United States Department of Health and Human
  Services.
  ARTICLE 27.  REGIONAL POISON CONTROL CENTER MANAGEMENT CONTROLS
  AND EFFICIENCY
         SECTION 27.01.  Section 777.001, Health and Safety Code, is
  amended by amending Subsection (c) and adding Subsection (d) to
  read as follows:
         (c)  The Commission on State Emergency Communications may
  standardize the operations of and implement management controls to
  improve the efficiency of regional poison control centers [vote to
  designate a seventh regional or satellite poison control center in
  Harris County.   That poison control center is subject to all
  provisions of this chapter and other law relating to regional
  poison control centers].
         (d)  If the Commission on State Emergency Communications
  implements management controls under Subsection (c), the
  commission shall submit to the governor and the Legislative Budget
  Board a plan for implementing the controls not later than October
  31, 2011.  This subsection expires January 1, 2013.
  ARTICLE 28.  AUTHORIZED USES FOR CERTAIN DEDICATED PERMANENT FUNDS
         SECTION 28.01.  Section 403.105, Government Code, is amended
  by amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  Except as provided by Subsections (b-1), (c), (e), (f),
  and (h), money in the fund may not be appropriated for any purpose.
         (b-1)  Notwithstanding the limitations and requirements of
  Section 403.1068, the legislature may appropriate money in the
  fund, including the corpus and available earnings of the fund
  determined under Section 403.1068, to pay the principal of or
  interest on a bond issued for the purposes of Section 67, Article
  III, Texas Constitution. This subsection does not authorize the
  appropriation under this subsection of money subject to a
  limitation or requirement as described by Subsection (e) that is
  not consistent with the use of the money in accordance with this
  subsection.
         SECTION 28.02.  Section 403.1055, Government Code, is
  amended by amending Subsection (b) and adding Subsection (b-1) to
  read as follows:
         (b)  Except as provided by Subsections (b-1), (c), (e), (f),
  and (h), money in the fund may not be appropriated for any purpose.
         (b-1)  Notwithstanding the limitations and requirements of
  Section 403.1068, the legislature may appropriate money in the
  fund, including the corpus and available earnings of the fund
  determined under Section 403.1068, to pay the principal of or
  interest on a bond issued for the purposes of Section 67, Article
  III, Texas Constitution. This subsection does not authorize the
  appropriation under this subsection of money subject to a
  limitation or requirement as described by Subsection (e) that is
  not consistent with the use of the money in accordance with this
  subsection.
         SECTION 28.03.  Section 403.106, Government Code, is amended
  by amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  Except as provided by Subsections (b-1), (c), (e), (f),
  and (h), money in the fund may not be appropriated for any purpose.
         (b-1)  Notwithstanding the limitations and requirements of
  Section 403.1068, the legislature may appropriate money in the
  fund, including the corpus and available earnings of the fund
  determined under Section 403.1068, to pay the principal of or
  interest on a bond issued for the purposes of Section 67, Article
  III, Texas Constitution. This subsection does not authorize the
  appropriation under this subsection of money subject to a
  limitation or requirement as described by Subsection (e) that is
  not consistent with the use of the money in accordance with this
  subsection.
         SECTION 28.04.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this article takes effect on the 91st day after
  the last day of the legislative session.
  ARTICLE 29.  FISCAL MATTERS CONCERNING SURPLUS AND SALVAGE
  PROPERTY
         SECTION 29.01.  Subchapter C, Chapter 2175, Government Code,
  is repealed.
         SECTION 29.02.  Subsection (a), Section 32.102, Education
  Code, is amended to read as follows:
         (a)  As provided by this subchapter, a school district or
  open-enrollment charter school may transfer to a student enrolled
  in the district or school:
               (1)  any data processing equipment donated to the
  district or school, including equipment donated by:
                     (A)  a private donor; or
                     (B)  a state eleemosynary institution or a state
  agency under Section 2175.905 [2175.128], Government Code;
               (2)  any equipment purchased by the district or school,
  to the extent consistent with Section 32.105; and
               (3)  any surplus or salvage equipment owned by the
  district or school.
         SECTION 29.03.  Section 2175.002, Government Code, is
  amended to read as follows:
         Sec. 2175.002.  ADMINISTRATION OF CHAPTER.  The commission
  is responsible for the disposal of surplus and salvage property of
  the state.  The commission's surplus and salvage property division
  shall administer this chapter.
         SECTION 29.04.  Section 2175.065, Government Code, is
  amended by amending Subsection (a) and adding Subsections (c) and
  (d) to read as follows:
         (a)  The commission may authorize a state agency to dispose
  of surplus or salvage property if the agency demonstrates to the
  commission its ability to dispose of the property under this
  chapter [Subchapters C and E] in a manner that results in cost
  savings to the state, under commission rules adopted under this
  chapter.
         (c)  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 of a state
  law or rule has occurred based on the report under Subsection (c),
  the commission shall report the violation to the Legislative Budget
  Board.
         SECTION 29.05.  The heading to Subchapter D, Chapter 2175,
  Government Code, is amended to read as follows:
  SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE PROPERTY [BY
  COMMISSION]
         SECTION 29.06.  Section 2175.181, Government Code, is
  amended to read as follows:
         Sec. 2175.181.  APPLICABILITY.  [(a)     This subchapter
  applies only to surplus and salvage property located in:
               [(1)  Travis County;
               [(2)     a county in which federal surplus property is
  warehoused by the commission under Subchapter G; or
               [(3)     a county for which the commission determines that
  it is cost-effective to follow the procedures created under this
  subchapter and informs affected state agencies of that
  determination.
         [(b)]  This subchapter applies [does not apply] to a state
  agency delegated the authority to dispose of surplus or salvage
  property under Section 2175.065.
         SECTION 29.07.  Section 2175.182, Government Code, is
  amended to read as follows:
         Sec. 2175.182.  STATE AGENCY TRANSFER OF PROPERTY [TO
  COMMISSION].  (a)  A state agency that determines it has surplus or
  salvage property shall inform the commission of that fact for the
  purpose of determining the method of disposal of the property [The
  commission is responsible for the disposal of surplus or salvage
  property under this subchapter]. The commission may take physical
  possession of the property.
         (b)  Based on the condition of the property, the commission,
  in conjunction with the state agency, shall determine whether the
  property is:
               (1)  surplus property that should be offered for
  transfer under Section 2175.184 or sold to the public; or
               (2)  salvage property.
         (c)  Following the determination in Subsection (b), the
  [The] commission shall direct the state agency to inform the
  comptroller's office of the property's kind, number, location,
  condition, original cost or value, and date of acquisition.
         SECTION 29.08.  Section 2175.1825, Government Code, is
  amended to read as follows:
         Sec. 2175.1825.  ADVERTISING ON COMPTROLLER WEBSITE.  
  (a)  Not later than the second day after the date the comptroller
  receives notice from a state agency [the commission] under Section
  2175.182(c), the comptroller shall advertise the property's kind,
  number, location, and condition on the comptroller's website.
         (b)  The comptroller shall provide the commission access to
  all records in the state property accounting system related to
  surplus and salvage property.
         SECTION 29.09.  Section 2175.183, Government Code, is
  amended to read as follows:
         Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES.  The
  [On taking responsibility for surplus property under this
  subchapter, the] commission shall inform other state agencies,
  political subdivisions, and assistance organizations of the
  comptroller's website that lists surplus property that is available
  for sale.
         SECTION 29.10.  Section 2175.184, Government Code, is
  amended to read as follows:
         Sec. 2175.184.  DIRECT TRANSFER. During the 10 business
  days after the date the property is posted on the comptroller's
  website, a state agency, political subdivision, or assistance
  organization shall [may] coordinate with the commission for a
  transfer of the property at a price established by the commission
  [in cooperation with the transferring agency]. A transfer to a
  state agency has priority over any other transfer during this
  period.
         SECTION 29.11.  Subsection (a), Section 2175.186,
  Government Code, is amended to read as follows:
         (a)  If a disposition of a state agency's surplus property is
  not made under Section 2175.184, the commission shall sell the
  property by competitive bid, auction, or direct sale to the public,
  including a sale using an Internet auction site.  The commission may
  contract with a private vendor to assist with the sale of the
  property.
         SECTION 29.12.  Section 2175.189, Government Code, is
  amended to read as follows:
         Sec. 2175.189.  ADVERTISEMENT OF SALE. If the value of an
  item or a lot of property to be sold is estimated to be more than
  $25,000 [$5,000], the commission shall advertise the sale at least
  once in at least one newspaper of general circulation in the
  vicinity in which the property is located.
         SECTION 29.13.  Subsection (a), Section 2175.191,
  Government Code, is amended to read as follows:
         (a)  Proceeds from the sale of surplus or salvage property,
  less the cost of advertising the sale, the cost of selling the
  surplus or salvage property, including the cost of auctioneer
  services or assistance from a private vendor, and the amount of the
  fee collected under Section 2175.188, shall be deposited to the
  credit of the general revenue fund of the state treasury.
         SECTION 29.14.  Section 2175.302, Government Code, is
  amended to read as follows:
         Sec. 2175.302.  EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS.
  Except as provided by Section 2175.905(b) [2175.128(b)], this
  chapter does not apply to the disposition of surplus or salvage
  property by a state eleemosynary institution.
         SECTION 29.15.  Section 2175.904, Government Code, is
  amended by amending Subsections (a) and (c) and adding Subsection
  (d) to read as follows:
         (a)  The commission shall establish a program for the sale of
  gambling equipment received from a municipality, from a
  commissioners court under Section 263.152(a)(5), Local Government
  Code, or from a state agency under this chapter.
         (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 [2175.131], shall be divided according to an
  agreement between the commission and the municipality or
  commissioners court that provided the equipment for sale.  The
  agreement must provide that:
               (1)  not less than 50 percent of the net proceeds be
  remitted to the commissioners court; and
               (2)  the remainder of the net proceeds retained by the
  commission be deposited to the credit of the general revenue fund.
         (d)  Proceeds from the sale of gambling equipment from a
  state agency, less the costs of the sale, including costs of
  advertising, storage, shipping, and auctioneer or broker services,
  and the amount of the fee collected under Section 2175.188, shall be
  deposited to the credit of the general revenue fund of the state
  treasury.
         SECTION 29.16.  Subchapter Z, Chapter 2175, Government Code,
  is amended by adding Sections 2175.905 and 2175.906 to read as
  follows:
         Sec. 2175.905.  DISPOSITION OF DATA PROCESSING EQUIPMENT.
  (a)  If a disposition of a state agency's surplus or salvage data
  processing equipment is not made under Section 2175.184, the state
  agency shall transfer the equipment to:
               (1)  a school district or open-enrollment charter
  school in this state under Subchapter C, Chapter 32, Education
  Code;
               (2)  an assistance organization specified by the school
  district; or
               (3)  the Texas Department of Criminal Justice.
         (b)  If a disposition of the surplus or salvage data
  processing equipment of a state eleemosynary institution or an
  institution or agency of higher education is not made under other
  law, the institution or agency shall transfer the equipment to:
               (1)  a school district or open-enrollment charter
  school in this state under Subchapter C, Chapter 32, Education
  Code;
               (2)  an assistance organization specified by the school
  district; or
               (3)  the Texas Department of Criminal Justice.
         (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
  assistance organization, or the Texas Department of Criminal
  Justice for the surplus or salvage data processing equipment
  transferred under this section.
         Sec. 2175.906.  ABOLISHED AGENCIES. On abolition of a state
  agency, in accordance with Chapter 325, the commission shall take
  custody of all of the agency's property or other assets as surplus
  property unless other law or the legislature designates another
  appropriate governmental entity to take custody of the property or
  assets.
  ARTICLE 30.  SALES AND USE TAX COLLECTION AND ALLOCATION
         SECTION 30.01.  Subsection (b), Section 151.008, Tax Code,
  is amended to read as follows:
         (b)  "Seller" and "retailer" include:
               (1)  a person in the business of making sales at auction
  of tangible personal property owned by the person or by another;
               (2)  a person who makes more than two sales of taxable
  items during a 12-month period, including sales made in the
  capacity of an assignee for the benefit of creditors or receiver or
  trustee in bankruptcy;
               (3)  a person regarded by the comptroller as a seller or
  retailer under Section 151.024 [of this code];
               (4)  a hotel, motel, or owner or lessor of an office or
  residential building or development that contracts and pays for
  telecommunications services for resale to guests or tenants; [and]
               (5)  a person who engages in regular or systematic
  solicitation of sales of taxable items in this state by the
  distribution of catalogs, periodicals, advertising flyers, or
  other advertising, by means of print, radio, or television media,
  or by mail, telegraphy, telephone, computer data base, cable,
  optic, microwave, or other communication system for the purpose of
  effecting sales of taxable items; and
               (6)  a person who, under an agreement with another
  person, is:
                     (A)  entrusted with possession of tangible
  personal property with respect to which the other person has title
  or another ownership interest; and
                     (B)  authorized to sell, lease, or rent the
  property without additional action by the person having title to or
  another ownership interest in the property.
         SECTION 30.02.  Section 151.107, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (d) to read as
  follows:
         (a)  For the purpose of this subchapter and in relation to
  the use tax, a retailer is engaged in business in this state if the
  retailer:
               (1)  maintains, occupies, or uses in this state
  permanently, temporarily, directly, or indirectly or through a
  subsidiary or agent by whatever name, an office, [place of]
  distribution center, sales or sample room or place, warehouse,
  storage place, or any other physical location where [place of]
  business is conducted;
               (2)  has a representative, agent, salesman, canvasser,
  or solicitor operating in this state under the authority of the
  retailer or its subsidiary for the purpose of selling or delivering
  or the taking of orders for a taxable item;
               (3)  derives receipts [rentals] from the sale, [a]
  lease, or rental of tangible personal property situated in this
  state;
               (4)  engages in regular or systematic solicitation of
  sales of taxable items in this state by the distribution of
  catalogs, periodicals, advertising flyers, or other advertising,
  by means of print, radio, or television media, or by mail,
  telegraphy, telephone, computer data base, cable, optic,
  microwave, or other communication system for the purpose of
  effecting sales of taxable items;
               (5)  solicits orders for taxable items by mail or
  through other media and under federal law is subject to or permitted
  to be made subject to the jurisdiction of this state for purposes of
  collecting the taxes imposed by this chapter;
               (6)  has a franchisee or licensee operating under its
  trade name if the franchisee or licensee is required to collect the
  tax under this section; [or]
               (7)  holds a substantial ownership interest in, or is
  owned in whole or substantial part by, a person who maintains a
  location in this state from which business is conducted and if:
                     (A)  the retailer sells the same or a
  substantially similar line of products as the person with the
  location in this state and sells those products under a business
  name that is the same as or substantially similar to the business
  name of the person with the location in this state; or
                     (B)  the facilities or employees of the person
  with the location in this state are used to:
                           (i)  advertise, promote, or facilitate sales
  by the retailer to consumers; or
                           (ii)  perform any other activity on behalf
  of the retailer that is intended to establish or maintain a
  marketplace for the retailer in this state, including receiving or
  exchanging returned merchandise;
               (8)  holds a substantial ownership interest in, or is
  owned in whole or substantial part by, a person that:
                     (A)  maintains a distribution center, warehouse,
  or similar location in this state; and
                     (B)  delivers property sold by the retailer to
  consumers; or
               (9)  otherwise does business in this state.
         (d)  In this section:
               (1)  "Ownership" includes:
                     (A)  direct ownership;
                     (B)  common ownership; and
                     (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:
                           (i)  the total combined voting power of all
  classes of stock of the corporation; or
                           (ii)  the beneficial ownership interest in
  the voting stock of the corporation;
                     (B)  if the entity is a trust, at least 50 percent,
  directly or indirectly, of the current beneficial interest in the
  trust corpus or income;
                     (C)  if the entity is a limited liability company,
  at least 50 percent, directly or indirectly, of:
                           (i)  the total membership interest of the
  limited liability company; or
                           (ii)  the beneficial ownership interest in
  the membership interest of the limited liability company; or
                     (D)  for any entity, including a partnership or
  association, at least 50 percent, directly or indirectly, of the
  capital or profits interest in the entity.
         SECTION 30.03.  Subchapter M, Chapter 151, Tax Code, is
  amended by adding Section 151.802 to read as follows:
         Sec. 151.802.  ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX
  RELIEF FUND. (a)  This section applies only:
               (1)  during the state fiscal years beginning September
  1 of 2012, 2013, 2014, 2015, and 2016; and
               (2)  with respect to unused franchise tax credits
  described by Sections 18(e) and (f), Chapter 1 (H.B. 3), Acts of the
  79th Legislature, 3rd Called Session, 2006.
         (b)  Notwithstanding Section 151.801, the comptroller shall
  deposit to the credit of the property tax relief fund under Section
  403.109, Government Code, an amount of the proceeds from the
  collection of the taxes imposed by this chapter equal to the amount
  of revenue the state does not receive from the tax imposed under
  Chapter 171 because taxable entities, as defined by that chapter,
  that are corporations are entitled to claim unused franchise tax
  credits after December 31, 2012, and during that state fiscal year.
         (c)  This section expires September 1, 2017.
         SECTION 30.04.  The change in law made by this article does
  not affect tax liability accruing before the effective date of this
  article. That liability continues in effect as if this article had
  not been enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 30.05.  This article takes effect January 1, 2012.
  ARTICLE 31.  CARRYFORWARD OF CERTAIN FRANCHISE TAX CREDITS
         SECTION 31.01.  Subsections (e) and (f), Section 18, Chapter
  1 (H.B. 3), Acts of the 79th Legislature, 3rd Called Session, 2006,
  are amended to read as follows:
         (e)  A corporation that has any unused credits established
  before the effective date of this Act under Subchapter P, Chapter
  171, Tax Code, may claim those unused credits on or with the tax
  report for the period in which the credit was established.  However,
  if the corporation was allowed to carry forward unused credits
  under that subchapter, the corporation may continue to apply those
  credits on or with each consecutive report until the earlier of the
  date the credit would have expired under the terms of Subchapter P,
  Chapter 171, Tax Code, had it continued in existence, or December
  31, 2016 [2012], and the former law under which the corporation
  established the credits is continued in effect for purposes of
  determining the amount of the credits the corporation may claim and
  the manner in which the corporation may claim the credits.
         (f)  A corporation that has any unused credits established
  before the effective date of this Act under Subchapter Q, Chapter
  171, Tax Code, may claim those unused credits on or with the tax
  report for the period in which the credit was established.  However,
  if the corporation was allowed to carry forward unused credits
  under that subchapter, the corporation may continue to apply those
  credits on or with each consecutive report until the earlier of the
  date the credit would have expired under the terms of Subchapter Q,
  Chapter 171, Tax Code, had it continued in existence, or December
  31, 2016 [2012], and the former law under which the corporation
  established the credits is continued in effect for purposes of
  determining the amount of the credits the corporation may claim and
  the manner in which the corporation may claim the credits.
  ARTICLE 32.  STATE PURCHASING
         SECTION 32.01.  Section 2155.082, Government Code, is
  amended to read as follows:
         Sec. 2155.082.  PROVIDING CERTAIN PURCHASING SERVICES ON
  FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT FUNDING.  (a)  The
  comptroller [commission] may provide open market purchasing
  services on a fee-for-service basis for state agency purchases that
  are delegated to an agency under Section 2155.131, 2155.132,
  [2155.133,] or 2157.121 or that are exempted from the purchasing
  authority of the comptroller [commission].  The comptroller
  [commission] shall set the fees in an amount that recovers the
  comptroller's [commission's] costs in providing the services.
         (b)  The comptroller [commission] shall  publish a schedule
  of [its] fees for services that are subject to this section.  The
  schedule must include the comptroller's [commission's] fees for:
               (1)  reviewing bid and contract documents for clarity,
  completeness, and compliance with laws and rules;
               (2)  developing and transmitting invitations to bid;
               (3)  receiving and tabulating bids;
               (4)  evaluating and determining which bidder offers the
  best value to the state;
               (5)  creating and transmitting purchase orders; and
               (6)  participating in agencies' request for proposal
  processes.
         (c)  If the state agency on behalf of which the procurement
  is to be made agrees, the comptroller may engage a consultant to
  assist with a particular procurement on behalf of a state agency and
  pay the consultant from the cost savings realized by the state
  agency.
  ARTICLE 33.  PERIOD FOR SALES AND USE TAX HOLIDAY
         SECTION 33.01.  Subsection (a), Section 151.326, Tax Code,
  is amended to read as follows:
         (a)  The sale of an article of clothing or footwear designed
  to be worn on or about the human body is exempted from the taxes
  imposed by this chapter if:
               (1)  the sales price of the article is less than $100;
  and
               (2)  the sale takes place during a period beginning at
  12:01 a.m. on the [third] Friday before the eighth day preceding the
  earliest date on which any school district, other than a district
  operating a year-round system, may begin instruction for the school
  year as prescribed by Section 25.0811(a), Education Code, [in
  August] and ending at 12 midnight on the following Sunday.
         SECTION 33.02.  Subsection (a), Section 151.326, Tax Code,
  as amended by this article, does not affect tax liability accruing
  before the effective date of this article. That liability
  continues in effect as if this article had not been enacted, and the
  former law is continued in effect for the collection of taxes due
  and for civil and criminal enforcement of the liability for those
  taxes.
  ARTICLE 34.  LEGISLATIVE BUDGET BOARD MEETINGS
         SECTION 34.01.  Section 322.003, Government Code, is amended
  by adding Subsection (f) to read as follows:
         (f)  The board shall hold a public hearing each state fiscal
  year to receive a report from the comptroller and receive invited
  testimony regarding the financial condition of this state. The
  report from the comptroller shall include, to the extent
  practicable:
               (1)  information on each revenue source included in
  determining the estimate of anticipated revenue for purposes of the
  most recent statement required by Section 49a, Article III, Texas
  Constitution, and the total net revenue actually collected from
  that source for the state fiscal year as of the end of the most
  recent state fiscal quarter;
               (2)  a comparison for the period described by
  Subdivision (1) of the total net revenue collected from each
  revenue source required to be specified under that subdivision with
  the anticipated revenue from that source that was included for
  purposes of determining the estimate of anticipated revenue in the
  statement required by Section 49a, Article III, Texas Constitution;
               (3)  information on state revenue sources resulting
  from a law taking effect after the comptroller submitted the most
  recent statement required by Section 49a, Article III, Texas
  Constitution, and the estimated total net revenue collected from
  that source for the state fiscal year as of the end of the most
  recent state fiscal quarter;
               (4)  a summary of the indicators of state economic
  trends experienced since the most recent statement required by
  Section 49a, Article III, Texas Constitution; and
               (5)  a summary of anticipated state economic trends and
  the anticipated effect of the trends on state revenue collections.
         SECTION 34.02.  Chapter 322, Government Code, is amended by
  adding Section 322.0081 to read as follows:
         Sec. 322.0081.  BUDGET DOCUMENTS ONLINE. (a)  The board
  shall post on the board's Internet website documents prepared by
  the board that are provided to a committee, subcommittee, or
  conference committee of either house of the legislature in
  connection with an appropriations bill.
         (b)  The board shall post a document to which this section
  applies as soon as practicable after the document is provided to a
  committee, subcommittee, or conference committee.
         (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.
         (e)  The board shall promulgate rules to implement the
  provisions of this section.
         SECTION 34.03.  Chapter 322, Government Code, is amended by
  adding Section 322.022 to read as follows:
         Sec. 322.022.  PUBLIC HEARING ON INTERIM BUDGET REDUCTION
  REQUEST. (a)  In this section:
               (1)  "Interim budget reduction request" means a request
  communicated in any manner for a state agency to make adjustments to
  the strategies, methods of finance, performance measures, or riders
  applicable to the agency through the state budget in effect on the
  date the request is communicated that, if implemented, would reduce
  the agency's total expenditures for the current state fiscal
  biennium to an amount less than the total amount that otherwise
  would be permissible based on the appropriations made to the agency
  in the budget.
               (2)  "State agency" means an office, department, board,
  commission, institution, or other entity to which a legislative
  appropriation is made.
         (b)  A state agency shall provide to the board a detailed
  report of any expenditure reduction plan that:
               (1)  the agency develops in response to an interim
  budget reduction request made by the governor, the lieutenant
  governor, or a member of the legislature, or any combination of
  those persons; and
               (2)  if implemented, would reduce the agency's total
  expenditures for the current state fiscal biennium to an amount
  less than the total amount that otherwise would be permissible
  based on the appropriations made to the agency in the state budget
  for the biennium.
         (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 34.04.  Subchapter B, Chapter 403, Government Code,
  is amended by adding Section 403.0145 to read as follows:
         Sec. 403.0145.  PUBLICATION OF FEES SCHEDULE. As soon as
  practicable after the end of each state fiscal year, the
  comptroller shall publish online a schedule of all revenue to the
  state from fees authorized by statute. For each fee, the schedule
  must specify:
               (1)  the statutory authority for the fee;
               (2)  if the fee has been increased during the most
  recent legislative session, the amount of the increase;
               (3)  into which fund the fee revenue will be deposited;
  and
               (4)  the amount of the fee revenue that will be
  considered available for general governmental purposes and
  accordingly considered available for the purpose of certification
  under Section 403.121.
         SECTION 34.05.  Section 404.124, Government Code, is amended
  by amending Subsections (a) and (b) and adding Subsection (b-1) to
  read as follows:
         (a)  Before issuing notes the comptroller shall submit to the
  committee a general revenue cash flow shortfall forecast, based on
  the comptroller's most recent anticipated revenue estimate. The
  forecast must contain a detailed report of estimated revenues and
  expenditures for each month and each major revenue and expenditure
  category and must demonstrate the maximum general revenue cash flow
  shortfall that may be predicted. The committee shall hold a public
  hearing to receive invited testimony on the forecast, including
  testimony on this state's overall economic condition, as soon as
  practicable after receiving the forecast.
         (b)  Based on the forecast and testimony provided at the
  hearing required by Subsection (a), the committee may approve the
  issuance of notes, subject to Subsections (b-1) and (c), and the
  maximum outstanding balance of notes in any fiscal year. The
  outstanding balance may not exceed the maximum temporary cash
  shortfall forecast by the comptroller for any period in the fiscal
  year. The comptroller may not issue notes in excess of the amount
  approved.
         (b-1)  The committee's approval of the issuance of notes
  granted under Subsection (b) expires on the 91st day after the date
  the hearing conducted under Subsection (a) concludes. The
  comptroller may not issue notes on or after the 91st day unless the
  comptroller submits another general revenue cash flow shortfall
  forecast to the committee and the committee subsequently grants
  approval for the issuance of the notes in accordance with the
  procedure required by Subsections (a) and (b). Each subsequent
  approval expires on the 61st day after the date the hearing on which
  the approval was based concludes.
         SECTION 34.06.  It is the intent of the legislature that the
  Legislative Budget Board place information on its Internet website
  that provides additional program detail for items of appropriation
  in the General Appropriations Act. The Legislative Budget Board
  shall include as additional program detail the specific programs
  funded, the source of that funding, and the related statutory
  authorization.
  ARTICLE 35.  ECONOMIC AND WORKFORCE DEVELOPMENT PROGRAMS
         SECTION 35.01.  Section 481.078, Government Code, is amended
  by adding Subsection (m) to read as follows:
         (m)  Notwithstanding Subsections (e) and (e-1), during the
  state fiscal biennium that begins on September 1, 2011, the
  governor may transfer appropriated money from the fund to the Texas
  Workforce Commission to fund the Texas Back to Work Program
  established under Chapter 314, Labor Code.  This subsection expires
  September 1, 2013.
         SECTION  35.02.  Subtitle B, Title 4, Labor Code, is amended
  by adding Chapter 314 to read as follows:
  CHAPTER 314.  TEXAS BACK TO WORK PROGRAM
         Sec. 314.001.  DEFINITION.  In this chapter, "qualified
  applicant" means a person who made less than $40 per hour at the
  person's last employment before becoming unemployed.
         Sec. 314.002.  INITIATIVE ESTABLISHED.  (a)  The Texas Back
  to Work Program is established within the commission.
         (b)  The purpose of the program is to establish
  public-private partnerships with employers to transition residents
  of this state from receiving unemployment compensation to becoming
  employed as members of the workforce.
         (c)  An employer that participates in the initiative may
  receive a wage subsidy for hiring one or more qualified applicants
  who are unemployed at the time of hire.
         (d)  The commission, for the purposes of this section, may use:
               (1)  money appropriated to the commission; and
               (2)  money that is transferred to the commission from
  trusteed programs within the office of the governor, including:
                     (A)  appropriated money from the Texas Enterprise
  Fund;
                     (B)  available federal funds; and
                     (C)  money from other appropriate, statutorily
  authorized funding sources.
         Sec. 314.003.  RULES.  The commission may adopt rules as
  necessary to implement this chapter.
  ARTICLE 36.  ELIGIBILITY OF SURVIVING SPOUSE OF DISABLED VETERAN
  TO PAY AD VALOREM TAXES ON RESIDENCE HOMESTEAD IN INSTALLMENTS
         SECTION 36.01.  Section 31.031, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  This section applies only to:
               (1)  [If before the delinquency date] an individual who
  is:
                     (A)  disabled or at least 65 years of age; and
                     (B)  [is] qualified for an exemption under Section
  11.13(c); or
               (2)  an individual who is:
                     (A)  the unmarried surviving spouse of a disabled
  veteran; and
                     (B)  qualified for an exemption under Section
  11.22.
         (a-1)  If before the delinquency date an individual to whom
  this section applies pays at least one-fourth of a taxing unit's
  taxes imposed on property that the person owns and occupies as a
  residence homestead, accompanied by notice to the taxing unit that
  the person will pay the remaining taxes in installments, the person
  may pay the remaining taxes without penalty or interest in three
  equal installments.  The first installment must be paid before
  April 1, the second installment before June 1, and the third
  installment before August 1.
         SECTION 36.02.  This article applies only to an ad valorem
  tax year that begins on or after the effective date of this article.
         SECTION 36.03.  This article takes effect January 1, 2012.
  ARTICLE 37.  EXTENSION OF FRANCHISE TAX EXEMPTION
         SECTION 37.01.  Subsection (c), Section 1, Chapter 286 (H.B.
  4765), Acts of the 81st Legislature, Regular Session, 2009, is
  amended to read as follows:
         (c)  This [If this section takes effect, this] section
  expires December 31, 2013 [2011].
         SECTION 37.02.  Subsection (b), Section 2, Chapter 286 (H.B.
  4765), Acts of the 81st Legislature, Regular Session, 2009, is
  amended to read as follows:
         (b)  This section takes effect January 1, 2014 [2012, if H.B.
  No. 2154, Acts of the 81st Legislature, Regular Session, 2009,
  amends Section 155.0211, Tax Code, in a manner that results in an
  increase in the revenue from the tax under that section during the
  state fiscal biennium beginning September 1, 2009, that is
  attributable to that change, and that Act is enacted and becomes
  law.   If H.B. No. 2154, Acts of the 81st Legislature, Regular
  Session, 2009, does not amend Section 155.0211, Tax Code, in that
  manner or is not enacted or does not become law, this section takes
  effect January 1, 2010].
         SECTION 37.03.  Subsection (b), Section 3, Chapter 286 (H.B.
  4765), Acts of the 81st Legislature, Regular Session, 2009, is
  amended to read as follows:
         (b)  This section takes effect January 1, 2014 [2012, if H.B.
  No. 2154, Acts of the 81st Legislature, Regular Session, 2009,
  amends Section 155.0211, Tax Code, in a manner that results in an
  increase in the revenue from the tax under that section during the
  state fiscal biennium beginning September 1, 2009, that is
  attributable to that change, and that Act is enacted and becomes
  law.   If H.B. No. 2154, Acts of the 81st Legislature, Regular
  Session, 2009, does not amend Section 155.0211, Tax Code, in that
  manner or is not enacted or does not become law, this section takes
  effect January 1, 2010].
         SECTION 37.04.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  this article to have immediate effect, this article takes effect on
  the 91st day after the last day of the legislative session.
  ARTICLE 38.  FISCAL MATTERS REGARDING ASSISTANT PROSECUTORS
         SECTION 38.01.  Subsection (f), Section 41.255, Government
  Code, is amended to read 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:
               (1)  [,] 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 at a later date; and
               (3)  the longevity pay program under this chapter is
  suspended to the extent of the insufficiency.  [A county that
  receives from the comptroller an amount less than the amount
  certified by the county to the comptroller under Subsection (d)
  shall apportion the funds received by reducing the amount payable
  to eligible assistant prosecutors on an equal percentage basis, but
  is not required to use county funds to make up any difference
  between the amount certified and the amount received.]
         SECTION 38.02.  Subsection (g), Section 41.255, Government
  Code, is repealed.
  ARTICLE 39.  FISCAL MATTERS REGARDING PROCESS SERVERS
         SECTION 39.01.  Subchapter B, Chapter 72, Government Code,
  is amended by adding Sections 72.013 and 72.014 to read 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.  
  Fees collected under Section 51.008 may be appropriated to the
  office to support the certification division.
  ARTICLE 40.  FISCAL MATTERS REGARDING REIMBURSEMENT OF JURORS
         SECTION 40.01.  Section 61.001, Government Code, is amended
  by adding Subsections (a-1) and (a-2) to read as follows:
         (a-1)  Notwithstanding Subsection (a), and except as
  provided by Subsection (c), during the state fiscal biennium
  beginning September 1, 2011, a person who reports for jury 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 the first
  day and discharges the person's duty for that day.
         (a-2)  This subsection and Subsection (a-1) expire September
  1, 2013.
         SECTION 40.02.  Section 61.0015, Government Code, is amended
  by adding Subsections (a-1), (a-2), and (e-1) to read as follows:
         (a-1)  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
  61.001 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-1) and (e-1)
  expire September 1, 2013.
         (e-1)  Notwithstanding Subsection (e), during the state
  fiscal biennium beginning September 1, 2011,  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 timely
  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 payment
  under Subsection (c).
  ARTICLE 41.  COLLECTION IMPROVEMENT PROGRAM
         SECTION 41.01.  Subsections (b), (c), (e), (h), (i), and
  (j), Article 103.0033, Code of Criminal Procedure, as effective
  September 1, 2011, are amended to read as follows:
         (b)  This article applies only to:
               (1)  a [each] county with a population of 50,000 or
  greater; [in this state] and
               (2)  a [to each] municipality with a population of
  100,000 or greater.
         (c)  Unless granted a waiver under Subsection (h), each
  county and municipality shall develop and implement a program that
  complies with the prioritized implementation schedule under
  Subsection (h).  [A county may develop and implement a program that
  complies with the prioritized implementation schedule under
  Subsection (h).]  A county program must include district, county,
  and justice courts.
         (e)  Not later than June 1 of each year, the office shall
  identify those counties and municipalities that:
               (1)  have not implemented a program; and
               (2)  are able [planning] to implement a program before
  April 1 of the following year.
         (h)  The office may:
               (1)  use case dispositions, population, revenue data,
  or other appropriate measures to develop a prioritized
  implementation schedule for programs; and
               (2)  [for a municipality,] determine whether it is not
  [actually] cost-effective to implement a program in a county or
  [the] municipality and grant a waiver to the county or
  municipality.
         (i)  Each county [that implements a program] and [each]
  municipality shall at least annually submit to the office a written
  report that includes updated information regarding the program, as
  determined by the office.  The report must be in a form approved by
  the office.
         (j)  The office shall periodically audit counties and
  municipalities to verify information reported under Subsection (i)
  and confirm that the county or municipality is conforming with
  requirements relating to the program.
         SECTION 41.02.  Subsection (e), Section 133.058, Local
  Government Code, as effective September 1, 2011, is amended to read
  as follows:
         (e)  A municipality or county may not retain a service fee
  if, during an audit under Article 103.0033(j), Code of Criminal
  Procedure, the Office of Court Administration of the Texas Judicial
  System determines that the municipality or county is not in
  compliance with Article 103.0033, Code of Criminal Procedure, and
  in the case of a municipality if the municipality is unable to
  reestablish compliance on or before the 180th day after the date the
  municipality receives written notice of noncompliance from the
  office. After any period in which the municipality or county
  becomes unable to retain a service fee under this subsection, the
  municipality or county may begin once more to retain the fee only on
  receipt of a written confirmation from the office that the
  municipality or county is in compliance with Article 103.0033, Code
  of Criminal Procedure.
         SECTION 41.03.  Subsection (c-1), Section 133.103, Local
  Government Code, as effective September 1, 2011, is amended to read
  as follows:
         (c-1)  The treasurer shall send to the comptroller 100
  percent of the fees collected under this section [by a
  municipality] if, during an audit under Article 103.0033(j), Code
  of Criminal Procedure, the Office of Court Administration of the
  Texas Judicial System determines that the municipality or county is
  not in compliance with Article 103.0033, Code of Criminal
  Procedure, and in the case of a municipality if the municipality is
  unable to reestablish compliance on or before the 180th day after
  the date the municipality receives written notice of noncompliance
  from the office.  After any period in which the treasurer is
  required under this subsection to send 100 percent of the fees
  collected under this section to the comptroller, the municipality
  or county shall begin once more to dispose of fees as otherwise
  provided by this section on receipt of a written confirmation from
  the office that the municipality or county is in compliance with
  Article 103.0033, Code of Criminal Procedure.
         SECTION 41.04.  The change in law made by this article in
  amending Subsection (e), Section 133.058, and Subsection (c-1),
  Section 133.103, Local Government Code, applies only to an audit
  commenced on or after the effective date of this article. An audit
  commenced before the effective date of this article is governed by
  the law in effect when the audit was commenced, and the former law
  is continued in effect for that purpose.
         SECTION 41.05.  The change in law made by this article in
  amending Article 103.0033, Code of Criminal Procedure, applies only
  to a court cost, fee, or fine imposed in a criminal case on or after
  the effective date of this article. A court cost, fee, or fine
  imposed in a criminal case before the effective date of this article
  is governed by the law in effect on the date the cost, fee, or fine
  was imposed, and the former law is continued in effect for that
  purpose.
  ARTICLE 42.  CORRECTIONAL MANAGED HEALTH CARE
         SECTION 42.01.  Subsection (a), Section 501.133, Government
  Code, is amended to read as follows:
         (a)  The committee consists of five voting [nine] members and
  one nonvoting member [appointed] as follows:
               (1)  one member [two members] employed full-time by the
  department, [at least one of whom is a physician,] appointed by the
  executive director;
               (2)  one member who is a physician and [two members]
  employed full-time by The University of Texas Medical Branch at
  Galveston, [at least one of whom is a physician,] appointed by the
  president of the medical branch;
               (3)  one member who is a physician and [two members]
  employed full-time by the Texas Tech University Health Sciences
  Center, [at least one of whom is a physician,] appointed by the
  president of the university; [and]
               (4)  two [three] public members appointed by the
  governor who are not affiliated with the department or with any
  entity with which the committee has contracted to provide health
  care services under this chapter, at least one [two] of whom is 
  [are] licensed to practice medicine in this state; and
               (5)  the state Medicaid director, to serve ex officio
  as a nonvoting member.
         SECTION 42.02.  Subsection (b), Section 501.135, Government
  Code, is amended to read 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:
               (1)  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.
         SECTION 42.03.  Section 501.136, Government Code, is amended
  to read as follows:
         Sec. 501.136.  TERMS OF OFFICE FOR PUBLIC MEMBERS.
  Committee members appointed by the governor serve staggered
  four-year [six-year] terms, with the term of one of those members
  expiring on February 1 of each odd-numbered year. Other committee
  members serve at the will of the appointing official or until
  termination of the member's employment with the entity the member
  represents.
         SECTION 42.04.  Section 501.147, Government Code, is amended
  to read as follows:
         Sec. 501.147.  DEPARTMENT [COMMITTEE] AUTHORITY TO
  CONTRACT. (a)  The department [committee] may enter into a
  contract [on behalf of the department] to fully implement the
  managed health care plan under this subchapter. A contract entered
  into under this subsection must include provisions necessary to
  ensure that The University of Texas Medical Branch at Galveston is
  eligible for and makes reasonable efforts to participate in the
  purchase of prescription drugs under Section 340B, Public Health
  Service Act (42 U.S.C. Section 256b).
         (b)  The department [committee] may[, in addition to
  providing services to the department,] contract with other
  governmental entities for similar health care services and
  integrate those services into the managed health care provider
  network.
         (c)  In contracting for implementation of the managed health
  care plan, the department [committee], to the extent possible,
  shall integrate the managed health care provider network with the
  public medical schools of this state and the component and
  affiliated hospitals of those medical schools. The contract must
  authorize The University of Texas Medical Branch at Galveston to
  contract directly with the Texas Tech University Health Sciences
  Center for the provision of health care services. The Texas Tech
  University Health Sciences Center shall cooperate with The
  University of Texas Medical Branch at Galveston in its efforts to
  participate in the purchase of prescription drugs under Section
  340B, Public Health Service Act (42 U.S.C. Section 256b).
         (d)  For services that the public medical schools and their
  components and affiliates cannot provide, the department 
  [committee] shall initiate a competitive bidding process for
  contracts with other providers for medical care to persons confined
  by the department.
         (e)  The department, in cooperation with the committee, may
  contract with an individual or firm for a biennial review of, and
  report concerning, expenditures under the managed health care plan.
  The review must be conducted by an individual or firm experienced in
  auditing the state's Medicaid expenditures and other medical
  expenditures. Not later than September 1 of each even-numbered
  year, the department shall submit a copy of a report under this
  section to the health care providers that are part of the managed
  health care provider network established under this subchapter, the
  Legislative Budget Board, the governor, the lieutenant governor,
  and the speaker of the house of representatives.
         SECTION 42.05.  Subsection (a), Section 501.148, Government
  Code, is amended to read as follows:
         (a)  The committee may [shall]:
               (1)  develop statewide policies for the delivery of
  correctional health care;
               (2)  [maintain contracts for health care services in
  consultation with the department and the health care providers;
               [(3)]  communicate with the department and the
  legislature regarding the financial needs of the correctional
  health care system;
               (3)  in conjunction with the department, 
  [(4)     allocate funding made available through legislative
  appropriations for correctional health care;
               [(5)]  monitor the expenditures of The University of
  Texas Medical Branch at Galveston and the Texas Tech University
  Health Sciences Center to ensure that those expenditures comply
  with applicable statutory and contractual requirements;
               (4) [(6)]  serve as a dispute resolution forum in the
  event of a disagreement relating to inmate health care services
  between:
                     (A)  the department and the health care providers;
  or
                     (B)  The University of Texas Medical Branch at
  Galveston and the Texas Tech University Health Sciences Center;
               (5) [(7)]  address problems found through monitoring
  activities by the department and health care providers, including
  requiring corrective action if care does not meet expectations as
  determined by those monitoring activities;
               (6) [(8)]  identify and address long-term needs of the
  correctional health care system; and
               (7) [(9)]  report to the Texas Board of Criminal
  Justice at the board's regularly scheduled meeting each quarter on
  the committee's policy recommendations [decisions], the financial
  status of the correctional health care system, and corrective
  actions taken by or required of the department or the health care
  providers.
         SECTION 42.06.  (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, 2011.
         (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 30, 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 committee under Subsection (a) of this section
  expires on November 30, 2011. 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.
  ARTICLE 43. GENERAL HOUSING MATTERS
         SECTION 43.01.  Section 481.078, Government Code, is amended
  by amending Subsection (c) and adding Subsection (d-1) to read as
  follows:
         (c)  Except as provided by Subsections [Subsection] (d) and
  (d-1), the fund may be used only for economic development,
  infrastructure development, community development, job training
  programs, and business incentives.
         (d-1)  The fund may be used for the Texas homeless housing
  and services program administered by the Texas Department of
  Housing and Community Affairs under Section 2306.2585.  The
  governor may transfer appropriations from the fund to the Texas
  Department of Housing and Community Affairs to fund the Texas
  homeless housing and services program.  Subsections (e-1), (f),
  (f-1), (f-2), (g), (h), (h-1), (i), and (j) and Section 481.080 do
  not apply to a grant awarded for a purpose specified by this
  subsection.
         SECTION 43.02.  Section 481.079, Government Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  For grants awarded for a purpose specified by Section
  481.078(d-1), the report must include only the amount and purpose
  of each grant.
         SECTION 43.03.  Subchapter K, Chapter 2306, Government Code,
  is amended by adding Section 2306.2585 to read as follows:
         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 of
  285,500 or more to:
               (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 of the program, including rules that:
               (1)  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, appropriation transfers from the
  trusteed programs within the office of the governor, including
  authorized appropriations from the Texas Enterprise Fund,
  available federal funds, and any other statutorily authorized and
  appropriate funding sources transferred from the trusteed programs
  within the office of the governor, for the purposes of this section.  
  The department shall solicit and accept gifts and grants for the
  purposes of this section. The department shall use gifts and grants
  received for the purposes of this section before using any other
  revenue.
         SECTION 43.04.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this article takes effect on the 91st day after
  the last day of the legislative session.
  ARTICLE 44.  UNIFORM GRANT AND CONTRACT MANAGEMENT
         SECTION 44.01.  Section 783.004, Government Code, is amended
  to read as follows:
         Sec. 783.004.  OFFICE OF THE COMPTROLLER [GOVERNOR'S
  OFFICE]. The office of the comptroller [governor's office] is the
  state agency for uniform grant and contract management.
         SECTION 44.02.  Subsections (a) and (b), Section 783.005,
  Government Code, are amended to read as follows:
         (a)  The comptroller [governor's office] shall develop
  uniform and concise language for any assurances that a local
  government is required to make to a state agency.
         (b)  The comptroller [governor's office] may:
               (1)  categorize assurances according to the type of
  grant or contract;
               (2)  designate programs to which the assurances are
  applicable; and
               (3)  revise the assurances.
         SECTION 44.03.  Section 783.006, Government Code, is amended
  to read as follows:
         Sec. 783.006.  STANDARD FINANCIAL MANAGEMENT CONDITIONS.
  (a)  The comptroller [governor's office] shall compile and
  distribute to each state agency an official compilation of standard
  financial management conditions.
         (b)  The comptroller [governor's office] 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 [governor's office] shall include in
  the compilation official commentary regarding administrative or
  judicial interpretations that affect the application of financial
  management standards.
         (d)  The comptroller [governor's office] may:
               (1)  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.
         SECTION 44.04.  Subsection (d), Section 783.007, Government
  Code, is amended to read as follows:
         (d)  The agency shall file a notice of each proposed rule
  that establishes a variation from uniform assurances or standard
  conditions with the comptroller [governor's office].
         SECTION 44.05.  Subsection (b), Section 783.008, Government
  Code, is amended to read as follows:
         (b)  On receipt of a request for a single audit or audit
  coordination, the comptroller [governor's office] 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.
  ARTICLE 45.  FRANCHISE TAX APPLICABILITY AND EXCLUSIONS
         SECTION 45.01.  Section 171.0001, Tax Code, is amended by
  adding Subdivisions (1-a), (10-a), (10-b), and (11-b) to read as
  follows:
               (1-a)  "Artist" means a natural person or an entity
  that contracts to perform or entertain at a live entertainment
  event.
               (10-a)  "Live entertainment event" means an event that
  occurs on a specific date to which tickets are sold in advance by a
  third-party vendor and at which:
                     (A)  a natural person or a group of natural
  persons, physically present at the venue, performs for the purpose
  of entertaining a ticket holder who is present at the event;
                     (B)  a traveling circus or animal show performs
  for the purpose of entertaining a ticket holder who is present at
  the event; or
                     (C)  a historical, museum-quality artifact is on
  display in an exhibition.
               (10-b)  "Live event promotion services" means services
  related to the promotion, coordination, operation, or management of
  a live entertainment event.  The term includes services related to:
                     (A)  the provision of staff for the live
  entertainment event; or
                     (B)  the scheduling and promotion of an artist
  performing or entertaining at the live entertainment event.
               (11-b)  "Qualified live event promotion company" means
  a taxable entity that:
                     (A)  receives at least 50 percent of the entity's
  annual total revenue from the provision or arrangement for the
  provision of three or more live event promotion services;
                     (B)  maintains a permanent nonresidential office
  from which the live event promotion services are provided or
  arranged;
                     (C)  employs 10 or more full-time employees during
  all or part of the period for which taxable margin is calculated;
                     (D)  does not provide services for a wedding or
  carnival; and
                     (E)  is not a movie theater.
         SECTION 45.02.  Subsection (c), Section 171.0002, Tax Code,
  is amended to read as follows:
         (c)  "Taxable entity" does not include an entity that is:
               (1)  a grantor trust as defined by Sections 671 and
  7701(a)(30)(E), Internal Revenue Code, all of the grantors and
  beneficiaries of which are natural persons or charitable entities
  as described in Section 501(c)(3), Internal Revenue Code, excluding
  a trust taxable as a business entity pursuant to Treasury
  Regulation Section 301.7701-4(b);
               (2)  an estate of a natural person as defined by Section
  7701(a)(30)(D), Internal Revenue Code, excluding an estate taxable
  as a business entity pursuant to Treasury Regulation Section
  301.7701-4(b);
               (3)  an escrow;
               (4)  a real estate investment trust (REIT) as defined
  by Section 856, Internal Revenue Code, and its "qualified REIT
  subsidiary" entities as defined by Section 856(i)(2), Internal
  Revenue Code, provided that:
                     (A)  a REIT with any amount of its assets in direct
  holdings of real estate, other than real estate it occupies for
  business purposes, as opposed to holding interests in limited
  partnerships or other entities that directly hold the real estate,
  is a taxable entity; and
                     (B)  a limited partnership or other entity that
  directly holds the real estate as described in Paragraph (A) is not
  exempt under this subdivision, without regard to whether a REIT
  holds an interest in it;
               (5)  a real estate mortgage investment conduit (REMIC),
  as defined by Section 860D, Internal Revenue Code;
               (6)  a nonprofit self-insurance trust created under
  Chapter 2212, Insurance Code, or a predecessor statute;
               (7)  a trust qualified under Section 401(a), Internal
  Revenue Code; [or]
               (8)  a trust or other entity that is exempt under
  Section 501(c)(9), Internal Revenue Code; or
               (9)  an unincorporated entity organized as a political
  committee under the Election Code or the provisions of the Federal
  Election Campaign Act of 1971 (2 U.S.C. Section 431 et seq.).
         SECTION 45.03.  Section 171.1011, Tax Code, is amended by
  adding Subsections (g-5) and (g-7) to read as follows:
         (g-5)  A taxable entity that is a qualified live event
  promotion company shall exclude from its total revenue, to the
  extent included under Subsection (c)(1)(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)  A taxable entity that is a qualified courier and
  logistics company shall exclude from its total revenue, to the
  extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3),
  subcontracting payments made by the taxable entity to nonemployee
  agents for the performance of delivery services on behalf of the
  taxable entity.  For purposes of this subsection, "qualified
  courier and logistics company" means a taxable entity that:
               (1)  receives at least 80 percent of the taxable
  entity's annual total revenue from its entire business from a
  combination of at least two of the following courier and logistics
  services:
                     (A)  expedited same-day delivery of an envelope,
  package, parcel, roll of architectural drawings, box, or pallet;
                     (B)  temporary storage and delivery of the
  property of another entity, including an envelope, package, parcel,
  roll of architectural drawings, box, or pallet; and
                     (C)  brokerage of same-day or expedited courier
  and logistics services to be completed by a person or entity under a
  contract that includes a contractual obligation by the taxable
  entity to make payments to the person or entity for those services;
               (2)  during the period on which margin is based, is
  registered as a motor carrier under Chapter 643, Transportation
  Code, and if the taxable entity operates on an interstate basis, is
  registered as a motor carrier or broker under the unified carrier
  registration system, as defined by Section 643.001, Transportation
  Code, during that period;
               (3)  maintains an automobile liability insurance
  policy covering individuals operating vehicles owned, hired, or
  otherwise used in the taxable entity's business, with a combined
  single limit for each occurrence of at least $1 million;
               (4)  maintains at least $25,000 of cargo insurance;
               (5)  maintains a permanent nonresidential office from
  which the courier and logistics services are provided or arranged;
               (6)  has at least five full-time employees during the
  period on which margin is based;
               (7)  is not doing business as a livery service, floral
  delivery service, motor coach service, taxicab service, building
  supply delivery service, water supply service, fuel or energy
  supply service, restaurant supply service, commercial moving and
  storage company, or overnight delivery service; and
               (8)  is not delivering items that the taxable entity or
  an affiliated entity sold.
         SECTION 45.04.  This article applies only to a report
  originally due on or after January 1, 2012.
         SECTION 45.05.  This article takes effect January 1, 2012.
  ARTICLE 46.  AD VALOREM TAXATION OF LAND USED TO RAISE OR KEEP BEES
         SECTION 46.01.  Subdivision (2), Section 23.51, Tax Code, is
  amended to read as 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 acres.
         SECTION 46.02.  This article applies only to the appraisal
  of land for ad valorem tax purposes for a tax year that begins on or
  after the effective date of this Act.
  ARTICLE 47.  QUINQUENNIAL REPORTING OF CERTAIN INFORMATION FOR
  UNCLAIMED PROPERTY
         SECTION 47.01.  Subsection (a), Section 411.0111,
  Government Code, is amended to read as follows:
         (a)  Not later than June 1 of every fifth [each] year, the
  department shall provide to the comptroller, for the purpose of
  assisting the comptroller in the identification of persons entitled
  to unclaimed property reported to the comptroller, the name,
  address, social security number, date of birth, and driver's
  license or state identification number of each person about whom
  the department has such information in its records.
         SECTION 47.02.  Subsection (a), Section 821.010, Government
  Code, is amended to read as follows:
         (a)  Not later than June 1 of every fifth [each] year, the
  retirement system shall provide to the comptroller, for the purpose
  of assisting the comptroller in the identification of persons
  entitled to unclaimed property reported to the comptroller, the
  name, address, social security number, and date of birth of each
  member, retiree, and beneficiary from the retirement system's
  records.
         SECTION 47.03.  Subsection (a), Section 301.086, Labor Code,
  is amended to read as follows:
         (a)  Not later than June 1 of every fifth [each] year, the
  commission shall provide to the comptroller, for the purpose of
  assisting the comptroller in the identification of persons entitled
  to unclaimed property reported to the comptroller, the name,
  address, social security number, and date of birth of each person
  about whom the commission has such information in its records.
         SECTION 47.04.  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 Subsection (a),
  Section 411.0111, and Subsection (a), Section 821.010, Government
  Code, and Subsection (a), Section 301.086, Labor Code, as amended
  by this article, beginning in 2016.
  ARTICLE 48.  AD VALOREM TAXATION OF CERTAIN STORED PROPERTY
         SECTION 48.01.  Subsection (a), Section 11.253, Tax Code, is
  amended by amending Subdivision (2) and adding Subdivisions (5) and
  (6) to read as follows:
               (2)  "Goods-in-transit" means tangible personal
  property that:
                     (A)  is acquired in or imported into this state to
  be forwarded to another location in this state or outside this
  state;
                     (B)  is stored under a contract of bailment by a
  public warehouse operator [detained] at one or more public
  warehouse facilities [a location] in this state that are not in any
  way owned or controlled by [in which] the owner of the personal
  property [does not have a direct or indirect ownership interest]
  for the account of [assembling, storing, manufacturing,
  processing, or fabricating purposes by] the person who acquired or
  imported the property;
                     (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
                     (D)  does not include oil, natural gas, petroleum
  products, aircraft, dealer's motor vehicle inventory, dealer's
  vessel and outboard motor inventory, dealer's heavy equipment
  inventory, or retail manufactured housing inventory.
               (5)  "Bailee" and "warehouse" have the meanings
  assigned by Section 7.102, Business & Commerce Code.
               (6)  "Public warehouse operator" means a person that:
                     (A)  is both a bailee and a warehouse; and
                     (B)  stores under a contract of bailment, at one
  or more public warehouse facilities, tangible personal property
  that is owned by other persons solely for the account of those
  persons and not for the operator's account.
         SECTION 48.02.  Section 11.253, Tax Code, is amended by
  amending Subsections (e) and (h) and adding Subsections (j-1) and
  (j-2) to read as follows:
         (e)  In determining the market value of goods-in-transit
  that in the preceding year were [assembled,] stored[, manufactured,
  processed, or fabricated] in this state, the chief appraiser shall
  exclude the cost of equipment, machinery, or materials that entered
  into and became component parts of the goods-in-transit but were
  not themselves goods-in-transit or that were not transported to
  another location in this state or outside this state before the
  expiration of 175 days after the date they were brought into this
  state by the property owner or acquired by the property owner in
  this state.  For component parts held in bulk, the chief appraiser
  may use the average length of time a component part was held by the
  owner of the component parts during the preceding year at a location
  in this state that was not owned by or under the control of the owner
  of the component parts in determining whether the component parts
  were transported to another location in this state or outside this
  state before the expiration of 175 days.
         (h)  The chief appraiser by written notice delivered to a
  property owner who claims an exemption under this section may
  require the property owner to provide copies of property records so
  the chief appraiser can determine the amount and value of
  goods-in-transit and that the location in this state where the
  goods-in-transit were detained for storage [assembling, storing,
  manufacturing, processing, or fabricating purposes] was not owned
  by or under the control of the owner of the goods-in-transit.  If
  the property owner fails to deliver the information requested in
  the notice before the 31st day after the date the notice is
  delivered to the property owner, the property owner forfeits the
  right to claim or receive the exemption for that year.
         (j-1)  Notwithstanding Subsection (j) or official action
  that was taken under that subsection before October 1, 2011, to tax
  goods-in-transit exempt under Subsection (b) and not exempt under
  other law, a taxing unit may not tax such goods-in-transit in a tax
  year that begins on or after January 1, 2012, unless the governing
  body of the taxing unit takes action on or after October 1, 2011, in
  the manner required for official action by the governing body, to
  provide for the taxation of the goods-in-transit.  The official
  action to tax the goods-in-transit must be taken before January 1 of
  the first tax year in which the governing body proposes to tax
  goods-in-transit.  Before acting to tax the exempt property, the
  governing body of the taxing unit must conduct a public hearing as
  required by Section 1-n(d), Article VIII, Texas Constitution.  If
  the governing body of a taxing unit provides for the taxation of the
  goods-in-transit as provided by this subsection, the exemption
  prescribed by Subsection (b) does not apply to that unit.  The
  goods-in-transit remain subject to taxation by the taxing unit
  until the governing body of the taxing unit, in the manner required
  for official action, rescinds or repeals its previous action to tax
  goods-in-transit or otherwise determines that the exemption
  prescribed by Subsection (b) will apply to that taxing unit.
         (j-2)  Notwithstanding Subsection (j-1), if under Subsection
  (j) the governing body of a taxing unit, before October 1, 2011,
  took action to provide for the taxation of goods-in-transit and
  pledged the taxes imposed on the goods-in-transit for the payment
  of a debt of the taxing unit, the tax officials of the taxing unit
  may continue to impose the taxes against the goods-in-transit until
  the debt is discharged, if cessation of the imposition would impair
  the obligation of the contract by which the debt was created.
         SECTION 48.03.  Subdivision (2), Subsection (a), Section
  11.253, Tax Code, as amended by this article, applies only to an ad
  valorem tax year that begins on or after January 1, 2012.
         SECTION 48.04.  (a)  Except as provided by Subsection (b) of
  this section, this article takes effect January 1, 2012.
         (b)  Section 48.02 of this article takes effect October 1,
  2011.
  ARTICLE 49.  FISCAL MATTERS CONCERNING ADVANCED PLACEMENT
         SECTION 49.01.  Subsection (h), Section 28.053, Education
  Code, is amended to read as follows:
         (h)  The commissioner may enter into agreements with the
  college board and the International Baccalaureate Organization to
  pay for all examinations taken by eligible public school students.
  An eligible student is a student [one] who:
               (1)  takes a college advanced placement or
  international baccalaureate course at a public school or who is
  recommended by the student's principal or teacher to take the test;
  and
               (2)  demonstrates financial need as determined in
  accordance with guidelines adopted by the board that are consistent
  with the definition of financial need adopted by the college board
  or the International Baccalaureate Organization.
  ARTICLE 50.  FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
         SECTION 50.01.  Section 54.214, Education Code, is amended
  by amending Subsection (c) and adding Subsection (c-1) to read as
  follows:
         (c)  To be eligible for an exemption under this section, a
  person must:
               (1)  be a resident of this state;
               (2)  be a school employee serving in any capacity;
               (3)  for the initial term or semester for which the
  person receives an exemption under this section, have worked as an
  educational aide for at least one school year during the five years
  preceding that term or semester;
               (4)  establish financial need as determined by
  coordinating board rule;
               (5)  be enrolled at the institution of higher education
  granting the exemption in courses required for teacher
  certification in one or more subject areas determined by the Texas
  Education Agency to be experiencing a critical shortage of teachers
  at the public schools in this state [at the institution of higher
  education granting the exemption];
               (6)  maintain an acceptable grade point average as
  determined by coordinating board rule; and
               (7)  comply with any other requirements adopted by the
  coordinating board under this section.
         (c-1)  Notwithstanding Subsection (c)(5), a person who
  previously received a tuition exemption under this section remains
  eligible for an exemption if the person:
               (1)  is enrolled at an institution of higher education
  granting the exemption in courses required for teacher
  certification; and
               (2)  meets the eligibility requirements in Subsection
  (c) other than Subsection (c)(5).
         SECTION 50.02.  The change in law made by this article
  applies beginning with tuition and fees charged for the 2012 fall
  semester. Tuition and fees charged for a term or semester before
  the 2012 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.
  ARTICLE 51.  CLASSIFICATION OF ENTITIES AS ENGAGED IN RETAIL TRADE
  FOR PURPOSES OF THE FRANCHISE TAX
         SECTION 51.01.  Subdivision (12), Section 171.0001, Tax
  Code, is amended to read as follows:
               (12)  "Retail trade" means:
                     (A)  the activities described in Division G of the
  1987 Standard Industrial Classification Manual published by the
  federal Office of Management and Budget; and
                     (B)  apparel rental activities classified as
  Industry 5999 or 7299 of the 1987 Standard Industrial
  Classification Manual published by the federal Office of Management
  and Budget.
         SECTION 51.02.  This article applies only to a report
  originally due on or after the effective date of this Act.
         SECTION 51.03.  This article takes effect January 1, 2012.
  ARTICLE 52. RETENTION OF CERTAIN FOUNDATION SCHOOL FUND PAYMENTS
         SECTION 52.01.  Subchapter E, Chapter 42, Education Code, is
  amended by adding Section 42.2511 to read as follows:
         Sec. 42.2511.  AUTHORIZATION FOR CERTAIN DISTRICTS TO RETAIN
  ADDITIONAL STATE AID.  (a)  This section applies only to a school
  district that was provided with state aid under former Section
  42.2516 for the 2009-2010 or 2010-2011 school year based on the
  amount of aid to which the district would have been entitled under
  that section if Section 42.2516(g), as it existed on January 1,
  2009, applied to determination of the amount to which the district
  was entitled for that school year.
         (b)  Notwithstanding any other law, a district to which this
  section applies may retain the state aid provided to the district as
  described by Subsection (a).
         (c)  This section expires September 1, 2013.
         SECTION 52.02.  It is the intent of the legislature that the
  authorization provided by Section 42.2511, Education Code, as added
  by this article, to retain state aid described by that section is
  not affected by the expiration of that provision on September 1,
  2013.
  ARTICLE 53.  THE STATE COMPRESSION PERCENTAGE
         SECTION 53.01.  Section 42.2516, Education Code, is amended
  by adding Subsection (b-2) to read as follows:
         (b-2)  If a school district adopts a maintenance and
  operations tax rate that is below the rate equal to the product of
  the state compression percentage multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year,
  the commissioner shall reduce the district's entitlement under this
  section in proportion to the amount by which the adopted rate is
  less than the rate equal to the product of the state compression
  percentage multiplied by the rate adopted by the district for the
  2005 tax year.  The reduction required by this subsection applies
  beginning with the maintenance and operations tax rate adopted for
  the 2009 tax year.
  ARTICLE 54.  TEXAS GUARANTEED STUDENT LOAN CORPORATION; BOARD OF
  DIRECTORS
         SECTION 54.01.  Subsections (a) and (b), Section 57.13,
  Education Code, are amended to read as follows:
         (a)  The corporation is governed by a board of nine [11]
  directors in accordance with this section.
         (b)  The governor, with the advice and consent of the senate,
  shall appoint the [10] members of [to] the board as follows:
               (1)  four [five] members who must have knowledge of or
  experience in finance, including management of funds or business
  operations;
               (2)  one member who must be a student enrolled at a
  postsecondary educational institution for the number of credit
  hours required by the institution to be classified as a full-time
  student of the institution; and
               (3)  four members who must be members of the faculty or
  administration of a [an eligible] postsecondary educational
  institution that is an eligible institution for purposes of the
  Higher Education Act of 1965, as amended[, as defined by Section
  57.46].
         SECTION 54.02.  Section 57.17, Education Code, is amended to
  read as follows:
         Sec. 57.17.  OFFICERS.  The governor shall designate the
  chairman from among the board's membership. The board shall elect
  from among its members a [chairman,] vice-chairman[,] and other
  officers that the board considers necessary. The chairman and
  vice-chairman serve for a term of one year and may be redesignated
  or reelected, as applicable.
         SECTION 54.03.  Subsection (d), Section 57.13, Education
  Code, is repealed.
  ARTICLE 55.  FISCAL MATTERS CONCERNING LEASES OF PUBLIC LAND FOR
  MINERAL DEVELOPMENT
         SECTION 55.01.  Subsections (a) and (c), Section 85.66,
  Education Code, are amended to read as follows:
         (a)  If oil or other minerals are developed on any of the
  lands leased by the board, the royalty or money as stipulated in the
  sale shall be paid to the general land office at Austin on or before
  the last day of each month for the preceding month during the life
  of the rights purchased, and shall be set aside [in the state
  treasury] as specified in Section 85.70 [of this code]. The royalty
  or money paid to the general land office shall be accompanied by the
  sworn statement of the owner, manager, or other authorized agent
  showing the gross amount of oil, gas, sulphur, mineral ore, and
  other minerals produced and saved since the last report, the amount
  of oil, gas, sulphur, mineral ore, and other minerals produced and
  sold off the premises, and the market value of the oil, gas,
  sulphur, mineral ore, and other minerals, together with a copy of
  all daily gauges, or vats, tanks, gas meter readings, pipeline
  receipts, gas line receipts and other checks and memoranda of the
  amounts produced and put into pipelines, tanks, vats, or pool and
  gas lines, gas storage, other places of storage, and other means of
  transportation.
         (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,
  sulphur, mineral ore, and other minerals and that are deposited 
  [turned into the state treasury,] as provided by Section 85.70
  during [of this code, of] the preceding month.
         SECTION 55.02.  Section 85.69, Education Code, is amended to
  read as follows:
         Sec. 85.69.  PAYMENTS; DISPOSITION. Payments under this
  subchapter shall be made to the commissioner of the general land
  office at Austin, who shall transmit to the board [comptroller] all
  royalties, lease fees, rentals for delay in drilling or mining, and
  all other payments, including all filing assignments and
  relinquishment fees, to be deposited [in the state treasury] as
  provided by Section 85.70 [of this code].
         SECTION 55.03.  Section 85.70, Education Code, is amended to
  read as follows:
         Sec. 85.70.  CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;
  SPECIAL FUNDS; INVESTMENT. (a)  Except as provided by Subsection
  (c) [of this section], all money received under and by virtue of
  this subchapter shall be deposited in [the state treasury to the
  credit of] a special fund managed by the board to be known as The
  Texas A&M University System Special Mineral Investment Fund. Money
  in the fund is considered to be institutional funds, as defined by
  Section 51.009, of the system and its component institutions.  The 
  [With the approval of the comptroller, the board of regents of The
  Texas A&M University System may appoint one or more commercial
  banks, depository trust companies, or other entities to serve as
  custodian or custodians of the Special Mineral Investment Fund's
  securities with authority to hold the money realized from those
  securities pending completion of an investment transaction if the
  money held is reinvested within one business day of receipt in
  investments determined by the board of regents. Money not
  reinvested within one business day of receipt shall be deposited in
  the state treasury not later than the fifth day after the date of
  receipt. In the judgment of the board, this] special fund may be
  invested so as to produce [an] income which may be expended under
  the direction of the board for the general use of any component of
  The Texas A&M University System, including erecting permanent
  improvements and in payment of expenses incurred in connection with
  the administration of this subchapter. The unexpended income
  likewise may be invested as [herein] provided by this section.
         (b)  The income from the investment of the special mineral
  investment fund created by [under] Subsection (a) [of this section]
  shall be deposited in [to the credit of] a fund managed by the board 
  to be known as The Texas A&M University System Special Mineral
  Income Fund, and is considered to be institutional funds, as
  defined by Section 51.009, of the system and its component
  institutions [shall be appropriated by the legislature exclusively
  for the university system for the purposes herein provided].
         (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 [the state treasury to the credit of] a special fund
  managed by the board to be known as the Texas A&M
  University--Kingsville special mineral fund.  Money in the fund is
  considered to be institutional funds, as defined by Section 51.009,
  of the university and is[,] to be used exclusively for the
  university [Texas A&M University--Kingsville] and its branches and
  divisions.
         (d)  All deposits in and investments of the fund under this
  section shall be made in accordance with Section 51.0031.
         (e)  Section 34.017, Natural Resources Code, does not apply
  to funds created by this section  [Money may not be expended from
  this fund except as authorized by the general appropriations act].
         SECTION 55.04.  Subsection (b), Section 95.36, Education
  Code, is amended to read as follows:
         (b)  Except as provided in Subsection (c) of this section,
  any money received by virtue of this section and the income from the
  investment of such money shall be deposited in [the State Treasury
  to the credit of] a special fund managed by the board to be known as
  the Texas State University System special mineral fund.  Money in
  the fund is considered to be institutional funds, as defined by
  Section 51.009, of the system and its component institutions and
  is[,] to be used exclusively for those entities.  All deposits in
  and investments of the fund shall be made in accordance with Section
  51.0031.  Section 34.017, Natural Resources Code, does not apply to
  the fund [the university system and the universities in the system.
  However, no money shall ever be expended from this fund except as
  authorized by the General Appropriations Act].
         SECTION 55.05.  Subsection (b), Section 109.61, Education
  Code, is amended to read as follows:
         (b)  Any money received by virtue of this section shall be
  deposited in [the state treasury to the credit of] a special fund
  managed by the board to be known as the Texas Tech University
  special mineral fund.  Money in the fund is considered to be
  institutional funds, as defined by Section 51.009, of the
  university and is[,] to be used exclusively for the university and
  its branches and divisions.  All deposits in and investments of the
  fund shall be made in accordance with Section 51.0031.  Section
  34.017, Natural Resources Code, does not apply to the fund  
  [However, no money shall ever be expended from this fund except as
  authorized by the general appropriations act].
         SECTION 55.06.  Subsections (a) and (c), Section 109.75,
  Education Code, are amended to read as follows:
         (a)  If oil or other minerals are developed on any of the
  lands leased by the board, the royalty as stipulated in the sale
  shall be paid to the general land office in Austin on or before the
  last day of each month for the preceding month during the life of
  the rights purchased. The royalty payments shall be set aside [in
  the state treasury] as specified in Section 109.61 [of this code]
  and used as provided in that section.
         (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,
  sulphur, or other minerals and that are deposited in [turned into]
  the special fund as provided by Section 109.61 [in the state
  treasury] during the preceding month.
         SECTION 55.07.  Subsection (b), Section 109.78, Education
  Code, is amended to read as follows:
         (b)  Payment of all royalties, lease fees, rentals for delay
  in drilling or mining, filing fees for assignments and
  relinquishments, and all other payments shall be made to the
  commissioner of the general land office at Austin. The
  commissioner shall transmit all payments received to the board 
  [comptroller] for deposit to the credit of the Texas Tech
  University special mineral fund as provided by Section 109.61.
         SECTION 55.08.  Section 85.72, Education Code, is repealed.
  ARTICLE 56.  FOUNDATION SCHOOL PROGRAM FINANCING; CERTAIN TAX
  INCREMENT FUND REPORTING MATTERS
         SECTION 56.01.  (a)  This section applies only to a school
  district that, before May 1, 2011, received from the commissioner
  of education a notice of a reduction in state funding for the
  2004-2005, 2005-2006, 2006-2007, 2007-2008, and 2008-2009 school
  years based on the district's reporting related to deposits of
  taxes into a tax increment fund under Chapter 311, Tax Code.
         (b)  Notwithstanding any other law, including Subdivision
  (2), Subsection (b), Section 42.302, 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.
  ARTICLE 57.  FISCAL MATTERS RELATING TO PUBLIC SCHOOL FINANCE
         SECTION 57.01.  Subsection (a), Section 11.158, Education
  Code, is amended to read as follows:
         (a)  The board of trustees of an independent school district
  may require payment of:
               (1)  a fee for materials used in any program in which
  the resultant product in excess of minimum requirements becomes, at
  the student's option, the personal property of the student, if the
  fee does not exceed the cost of materials;
               (2)  membership dues in student organizations or clubs
  and admission fees or charges for attending extracurricular
  activities, if membership or attendance is voluntary;
               (3)  a security deposit for the return of materials,
  supplies, or equipment;
               (4)  a fee for personal physical education and athletic
  equipment and apparel, although any student may provide the
  student's own equipment or apparel if it meets reasonable
  requirements and standards relating to health and safety
  established by the board;
               (5)  a fee for items of personal use or products that a
  student may purchase at the student's option, such as student
  publications, class rings, annuals, and graduation announcements;
               (6)  a fee specifically permitted by any other statute;
               (7)  a fee for an authorized voluntary student health
  and accident benefit plan;
               (8)  a reasonable fee, not to exceed the actual annual
  maintenance cost, for the use of musical instruments and uniforms
  owned or rented by the district;
               (9)  a fee for items of personal apparel that become the
  property of the student and that are used in extracurricular
  activities;
               (10)  a parking fee or a fee for an identification card;
               (11)  a fee for a driver training course, not to exceed
  the actual district cost per student in the program for the current
  school year;
               (12)  a fee for a course offered for credit that
  requires the use of facilities not available on the school premises
  or the employment of an educator who is not part of the school's
  regular staff, if participation in the course is at the student's
  option;
               (13)  a fee for a course offered during summer school,
  except that the board may charge a fee for a course required for
  graduation only if the course is also offered without a fee during
  the regular school year;
               (14)  a reasonable fee for transportation of a student
  who lives within two miles of the school the student attends to and
  from that school, except that the board may not charge a fee for
  transportation for which the school district receives funds under
  Section 42.155(d); [or]
               (15)  a reasonable fee, not to exceed $50, for costs
  associated with an educational program offered outside of regular
  school hours through which a student who was absent from class
  receives instruction voluntarily for the purpose of making up the
  missed instruction and meeting the level of attendance required
  under Section 25.092; or
               (16)  if the district does not receive any funds under
  Section 42.155 and does not participate in a county transportation
  system for which an allotment is provided under Section 42.155(i),
  a reasonable fee for the transportation of a student to and from the
  school the student attends.
         SECTION 57.02.  Effective September 1, 2011, Section 12.106,
  Education Code, is amended by amending Subsection (a) and adding
  Subsections (a-3) and (a-4) to read as follows:
         (a)  A charter holder is entitled to receive for the
  open-enrollment charter school funding under Chapter 42 equal to
  the greater of:
               (1)  the percentage specified by Section 42.2516(i)
  multiplied by the amount of funding per student in weighted average
  daily attendance, excluding enrichment funding under Sections
  42.302(a-1)(2) and (3), as they existed on January 1, 2009, that
  would have been received for the school during the 2009-2010 school
  year under Chapter 42 as it existed on January 1, 2009, and an
  additional amount of the percentage specified by Section 42.2516(i)
  multiplied by $120 for each student in weighted average daily
  attendance; or
               (2)  the amount of funding per student in weighted
  average daily attendance, excluding enrichment funding under
  Section 42.302(a), to which the charter holder would be entitled
  for the school under Chapter 42 if the school were a school district
  without a tier one local share for purposes of Section 42.253 and
  without any local revenue for purposes of Section 42.2516.
         (a-3)  In determining funding for an open-enrollment charter
  school under Subsection (a), the commissioner shall apply the
  regular program adjustment factor provided under Section 42.101 to
  calculate the regular program allotment to which a charter school
  is entitled.
         (a-4)  Subsection (a-3) and this subsection expire September
  1, 2015.
         SECTION 57.03.  Effective September 1, 2017, Subsection (a),
  Section 12.106, Education Code, is amended to read as follows:
         (a)  A charter holder is entitled to receive for the
  open-enrollment charter school funding under Chapter 42 equal to
  [the greater of:
               [(1)     the amount of funding per student in weighted
  average daily attendance, excluding enrichment funding under
  Sections 42.302(a-1)(2) and (3), as they existed on January 1,
  2009, that would have been received for the school during the
  2009-2010 school year under Chapter 42 as it existed on January 1,
  2009, and an additional amount of $120 for each student in weighted
  average daily attendance; or
               [(2)]  the amount of funding per student in weighted
  average daily attendance, excluding enrichment funding under
  Section 42.302(a), to which the charter holder would be entitled
  for the school under Chapter 42 if the school were a school district
  without a tier one local share for purposes of Section 42.253 [and
  without any local revenue for purposes of Section 42.2516].
         SECTION 57.04.  Effective September 1, 2011, Section 21.402,
  Education Code, is amended by amending Subsections (a), (b), (c),
  and (c-1) and adding Subsection (i) to read as follows:
         (a)  Except as provided by Subsection (d)[, (e),] or (f), a
  school district must pay each classroom teacher, full-time
  librarian, full-time counselor certified under Subchapter B, or
  full-time school nurse not less than the minimum monthly salary,
  based on the employee's level of experience in addition to other
  factors, as determined by commissioner rule, determined by the
  following formula:
  MS = SF x FS
  where:
         "MS" is the minimum monthly salary;
         "SF" is the applicable salary factor specified by Subsection
  (c); and
         "FS" is the amount, as determined by the commissioner under
  Subsection (b), of the basic allotment as provided by Section
  42.101(a) or (b) for a school district with a maintenance and
  operations tax rate at least equal to the state maximum compressed
  tax rate, as defined by Section 42.101(a) [state and local funds per
  weighted student, including funds provided under Section 42.2516,
  available to a district eligible to receive state assistance under
  Section 42.302 with a maintenance and operations tax rate per $100
  of taxable value equal to the product of the state compression
  percentage, as determined under Section 42.2516, multiplied by
  $1.50, except that the amount of state and local funds per weighted
  student does not include the amount attributable to the increase in
  the guaranteed level made by Chapter 1187, Acts of the 77th
  Legislature, Regular Session, 2001].
         (b)  Not later than June 1 of each year, the commissioner
  shall determine the basic allotment and resulting monthly salaries
  to be paid by school districts as provided by Subsection (a) [amount
  of state and local funds per weighted student available, for
  purposes of Subsection (a), to a district described by that
  subsection for the following school year].
         (c)  The salary factors per step are as follows:
 
 
0 1 2 3 4
 
 
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
 
 
5 6 7 8 9
 
 
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
 
 
10 11 12 13 14
 
 
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
 
 
15 16 17 18 19
 
 
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
 
 
 
 
 
.8854 [1.009]
         (c-1)  Notwithstanding Subsections [Subsection] (a) and
  (b)[, for the 2009-2010 and 2010-2011 school years], each school
  district shall pay a monthly salary to [increase the monthly salary
  of] each classroom teacher, full-time speech pathologist,
  full-time librarian, full-time counselor certified under
  Subchapter B, and full-time school nurse that is at least equal to
  the following monthly salary or the monthly salary determined by
  the commissioner under Subsections (a) and (b), whichever is [by
  the] greater [of]:
 
 
 
Years of Monthly
 
Experience Salary
 
0 2,732
 
1 2,791
 
2 2,849
 
3 2,908
 
4 3,032
 
5 3,156
 
6 3,280
 
7 3,395
 
8 3,504
 
9 3,607
 
10 3,704
 
11 3,796
 
12 3,884
 
13 3,965
 
14 4,043
 
15 4,116
 
16 4,186
 
17 4,251
 
18 4,313
 
19 4,372
 
20 & Over 4,427
               [(1)  $80; or
               [(2)     the maximum uniform amount that, when combined
  with any resulting increases in the amount of contributions made by
  the district for social security coverage for the specified
  employees or by the district on behalf of the specified employees
  under Section 825.405, Government Code, may be provided using an
  amount equal to the product of $60 multiplied by the number of
  students in weighted average daily attendance in the school during
  the 2009-2010 school year.]
         (i)  Not later than January 1, 2013, the commissioner shall
  submit to the governor, the lieutenant governor, the speaker of the
  house of representatives, and the presiding officer of each
  legislative standing committee with primary jurisdiction over
  primary and secondary education a written report that evaluates and
  provides recommendations regarding the salary schedule.  This
  subsection expires September 1, 2013.
         SECTION 57.05.  Effective September 1, 2017, Section 21.402,
  Education Code, is amended by amending Subsection (a) and adding
  Subsection (e-1) to read as follows:
         (a)  Except as provided by Subsection (d), (e-1) [(e)], or
  (f), a school district must pay each classroom teacher, full-time
  librarian, full-time counselor certified under Subchapter B, or
  full-time school nurse not less than the minimum monthly salary,
  based on the employee's level of experience in addition to other
  factors, as determined by commissioner rule, determined by the
  following formula:
  MS = SF x FS
  where:
         "MS" is the minimum monthly salary;
         "SF" is the applicable salary factor specified by Subsection
  (c); and
         "FS" is the amount, as determined by the commissioner under
  Subsection (b), of the basic allotment as provided by Section
  42.101(a) or (b) for a school district with a maintenance and
  operations tax rate at least equal to the state maximum compressed
  tax rate, as defined by Section 42.101(a) [state and local funds per
  weighted student, including funds provided under Section 42.2516,
  available to a district eligible to receive state assistance under
  Section 42.302 with a maintenance and operations tax rate per $100
  of taxable value equal to the product of the state compression
  percentage, as determined under Section 42.2516, multiplied by
  $1.50, except that the amount of state and local funds per weighted
  student does not include the amount attributable to the increase in
  the guaranteed level made by Chapter 1187, Acts of the 77th
  Legislature, Regular Session, 2001].
         (e-1)  If the minimum monthly salary determined under
  Subsection (a) for a particular level of experience is less than the
  minimum monthly salary for that level of experience in the
  preceding year, the minimum monthly salary is the minimum monthly
  salary for the preceding year.
         SECTION 57.06.  Section 41.002, Education Code, is amended
  by amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  A school district may not have a wealth per student that
  exceeds:
               (1)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to a district with maintenance and operations tax revenue
  per cent of tax effort equal to the maximum amount provided per cent
  under Section 42.101(a) or (b) [42.101], for the district's
  maintenance and operations tax effort equal to or less than the rate
  equal to the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year;
               (2)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to the Austin Independent School District, as determined
  by the commissioner in cooperation with the Legislative Budget
  Board, for the first six cents by which the district's maintenance
  and operations tax rate exceeds the rate equal to the product of the
  state compression percentage, as determined under Section 42.2516,
  multiplied by the maintenance and operations tax rate adopted by
  the district for the 2005 tax year, subject to Section 41.093(b-1);
  or
               (3)  $319,500, for the district's maintenance and
  operations tax effort that exceeds the first six cents by which the
  district's maintenance and operations tax effort exceeds the rate
  equal to the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year.
         (a-1)  Notwithstanding Subsection (a), a school district
  that imposed a maintenance and operations tax for the 2010 tax year
  at the maximum rate permitted under Section 45.003 may not have a
  wealth per student that exceeds $339,500 for the district's
  maintenance and operations tax effort described by Subsection
  (a)(3). This subsection expires September 1, 2012.
         SECTION 57.07.  Effective September 1, 2011, the heading to
  Section 42.101, Education Code, is amended to read as follows:
         Sec. 42.101.  BASIC AND REGULAR PROGRAM ALLOTMENTS
  [ALLOTMENT].
         SECTION 57.08.  Effective September 1, 2011, Section 42.101,
  Education Code, is amended by amending Subsections (a) and (b) and
  adding Subsections (c), (c-1), (c-2), and (c-3) to read as follows:
         (a)  The basic [For each student in average daily attendance,
  not including the time students spend each day in special education
  programs in an instructional arrangement other than mainstream or
  career and technology education programs, for which an additional