HBA-JRA H.B. 3211 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3211 By: McCall Ways & Means 7/30/1999 Enrolled BACKGROUND AND PURPOSE The purpose of H.B. 3211 is to provide guidance about state fiscal issues and improve the fiscal management of state government. This bill makes technical and policy changes to several statutes relating to fiscal management and the comptroller's powers and duties; clarifies the statutes that prohibit the state from making payments to a person who is indebted to the state or delinquent in tax, child support, or student loan payments; expands and revises the statutes that authorize the comptroller to deduct a person's indebtedness to the state or tax delinquency from any amount the state owes the person; authorizes state agencies to deduct an overpayment of compensation to a state officer or employee from a subsequent payment of compensation; authorizes the comptroller to allow persons to debit a state account directly for the types of payments that the comptroller determines are appropriate for the direct debit process; authorizes the comptroller to contract with a private person or entity to print and deliver warrants; and extends the deadline for filing certain information with the secretary of state after a state agency enters into or renews, amends, or extends a consulting services contract. This bill also makes various technical changes regarding taxes and fees. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the comptroller of public accounts in SECTIONS 1, 1.14, 1.15, 1.16, 1.27, 2.18, 4.02 4.06, and 4.09 (Section 57.48, Education Code; Sections 403.0271, 403.055, 403.0551, and 666.007, Government Code; and Section 152.062, Tax Code) and that rulemaking authority previously delegated to the comptroller of public accounts is modified in SECTIONS 1.13 and 4.01 (Section 403.023, Government Code and Section 152.062, Tax Code) of this bill. SECTION BY SECTION ANALYSIS ARTICLE 1. STATE FISCAL MATTERS SECTION 1. Amends Section 57.48, Education Code, as follows: Sec. 57.48. New title: PAYMENTS BY THE COMPTROLLER TO DEFAULTING PERSONS PROHIBITED. (a) Provides that Subsection (g) provides an exception to the requirements of this subsection. Provides that the report of persons in default on a guaranteed student loan the Guaranteed Student Loan Corporation (corporation) is required to make to the comptroller must contain the information and be submitted in the manner and with the frequency required by rules of the comptroller. (b) Makes conforming changes. (c) Makes conforming changes. (d) Provides that if this section prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to person, the comptroller is also prohibited from issuing a warrant or initiating electronic funds transfer to the person's estate, the distributees of the person's estate, or the person's surviving spouse. (e) Provides that this section does not prohibit the comptroller from issuing a warrant or initiating an electronic funds transfer to a person properly reported under Subsection (a) or to the assignee of the person if the corporation subsequently and properly reports to the comptroller that the person is complying with an installment payment agreement to eliminate the default unless the person is no longer complying with the agreement, the person's wages are being garnished to eliminate the default, the default has been eliminated, or the report of default was prohibited by Subsection (g) or was otherwise erroneous. Redesignated from existing Subsection (d). (f) Redesignated from existing Subsection (e). Makes conforming and nonsubstantive changes. Deletes existing Subsection (f) relating to a state agency carrying out the actions authorized in this section. (g) Prohibits the corporation from reporting a person under Subsection (a) unless the corporation first provides the person with an opportunity to exercise any due process or other constitutional or statutory protection that must be accommodated before the corporation may begin a collection action or procedure. Prohibits the corporation from investigating or determining whether the corporation has complied with this prohibition. (h) Provides that this section does not prohibit the comptroller from issuing a warrant or initiating an electronic funds transfer if the warrant or transfer would result in a payment being made in whole or in part with money paid to the state by the United States and the state agency that administers the money certifies to the comptroller that federal law requires the payment to be made or conditions the state's receipt of the money on the payment being made. (i) Authorizes the comptroller to adopt rules and establish procedures to administer this section. (j) Redefines "compensation" and "state agency" in this section. Redesignated from existing Subsection (g). SECTION 1.02. Amends Subchapter C, Chapter 57, Education Code, by adding Section 57.482, as follows: Sec. 57.482. PAYMENTS BY A STATE AGENCY TO DEFAULTING PERSON PROHIBITED. (a) Prohibits a state agency, as a ministerial duty, from using funds inside or outside the state treasury to pay a person or the person's assignee if Section 57.48 prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to the person or assignee. (b) Provides that a state agency that is prohibited from paying a person by Subsection (a) is also prohibited from paying the person's estate, the distributees of the person's estate, or the person's surviving spouse. (c) Prohibits the comptroller from reimbursing a state agency for a payment that the comptroller determines was made in violation of this section. (d) Provides that this section applies to a payment only if the comptroller is not responsible under Section 404.046 (Payment From Treasury), 404.069 (Trust Funds), or 2103.003 (State Agency Spending of Appropriated Funds), Government Code, for issuing a warrant or initiating an electronic funds transfer to make the payment. (e) Defines "state agency" in this section. SECTION 1.03. Amends Section 62.021(a), Education Code, to provide an exception to the prohibition against the comptroller issuing a warrant from any funds allocated under this subsection before the delivery of good or services described in Section 17 (Higher Education; Appropriations and Funding), Article VII (Education), Texas Constitution, for a payment for a book or other published library material as authorized by Section 2155.386 (Prepayment for Library Materials by Institution of Higher Education), Government Code. Amends specific allocations of funds under this chapter to specific institutions. SECTION 1.04. Amends Section 66.02, Education Code, to change references to "dividends, interest, and other income," to "distributions" and delete the requirement that such distributions be deposited in the State Treasury at least once a month. SECTION 1.05. Amends Section 66.022, Education Code, as follows: Sec. 62.022. New title: ALLOCATION FORMULA. Requires the Texas Higher Education Coordinating Board (coordinating board) to conduct a study and present recommendations to the Legislative Budget Board and the standing committees of the house of representatives and the senate having jurisdiction over legislation related to higher education as to the allocation of the money appropriated by Section 17(a), Article VIII, Texas Constitution, prior to the convening the regular session of the legislature preceding each 10-year allocation period and another study as to whether, and if so, how, the equitable allocation formula established for that 10-year period should be adjusted for the last five years of the period prior to the convening of the regular session of the legislature preceding the sixth year of each 10-year allocation period. Makes conforming changes. SECTION 1.06. Amends Subchapter A, Chapter 66, Education code, by adding Section 66.09, as follows: Sec. 66.09. COST VALUE OF INVESTMENTS AND OTHER ASSETS OF THE PERMANENT UNIVERSITY FUND. Sets forth the method for calculating the cost value of the permanent university fund's investment. SECTION 1.07. Amends Section 231.007, Family Code, as follows: Sec. 231.007. DEBTS TO STATE. (a) Provides that a person is indebted to the Office of the Attorney General - Child Support Division (Title IV-D agency) for purposes of Section 403.055 (Issuance to Debtors Prohibited), Government Code, if the Title IV-D agency has reported the person to the comptroller under that section properly. (b) Makes nonsubstantive changes. (c) Provides that the Office of the Attorney General is the sole, rather than an, assignee of all payments by the state to a person indebted to the state under this Subsection (a). (d) Requires the comptroller to make payable and deliver to the Title IV-D agency any payments for which the Title IV-D agency is the assignee under Subsection (c) if the comptroller is responsible for issuing warrants or initiating electronic funds transfers to make those payments and requires a state agency to such payments if the comptroller is not responsible. (e) Redesignated from existing Subsection (d). Makes conforming and nonsubstantive changes. (f) Redesignated from existing Subsection (e). Makes conforming and nonsubstantive changes. (g) Redesignated from existing Subsection (f). Makes conforming and nonsubstantive changes. (h) Authorizes the comptroller or a state agency to rely on a representation by the Title IV-D agency that a withholding or assignment under this section would not violate this subsection. Redesignated from existing Subsection (g). (i) Includes issuing an electronic funds transfer and remunerating an individual who is being paid by a private person through a state agency, if the individual is indebted to the state under Subsection (a), among the activities from which the comptroller is prohibited, notwithstanding Section 403.055, rather than Sections 403.055(c) and (e)(4), Government Code. Redesignated from existing Subsection (h). Makes conforming and nonsubstantive changes. (j) Prohibits a state agency from paying compensation to a state officer or employee who is indebted to the state under Subsection (a) or remunerating an individual who is being paid by a private person through the agency if the individual is indebted to the state under Subsection (a), notwithstanding Section 2107.008 (Payments to Debtors or Delinquents Prohibited), Government Code. (k) Redefines "compensation," and defines "state agency" and "state officer or employee" in this section. Redesignated from existing Subsection (i). SECTION 1.08. Amends Section 26.006, Government Code, by amending Subsection (a) and adding Subsection (c), as follows: (a) Entitles a county judge to an annual salary supplement from the state of $10,000, rather than $5,000, if at least 40 percent of the functions that the judge performs are judicial functions. (c) Prohibits the commissioners court from reducing the county funds provided for the salary or office of the county judge a s a result of the salary supplement required by this section. SECTION 1.09. Amends Subchapter A, Chapter 26, Government Code, by adding Sections 26.007 and 26.008, as follows: Sec. 26.007. STATE CONTRIBUTION. Requires the state, beginning on the first day of the state fiscal year, to annually compensate each county that collects the additional fees and costs under Section 51.703 in an amount equal to $5,000 if the county judge is entitled to an annual salary supplement from the state under Section 26.006. Requires the amount to be paid to the county's salary fund in equal monthly installments from funds appropriated from the judicial fund. Sec. 26.008. EXCESS CONTRIBUTIONS. Requires the comptroller, at the end of each state fiscal year, to determine the amounts deposited in the judicial fund under Section 51.703 and the amounts paid to the counties under Section 26.007. Requires the state, if the total amount paid under Section 51.703 by all counties that collect fees and costs under that section exceeds the total amount paid to the counties under Section 26.007, to remit the excess to the counties that collect fees and costs under Section 51.703 proportionately based on the percentage of the total paid by each county. Requires the amounts to be paid to the county's general fund to be used only for court-related purposes for the support of the judiciary as provided by Section 21.006. SECTION 1.10. Amends the heading to Section 51.702, Government Code, to read as follows: Sec. 51.702. ADDITIONAL FEES AND COSTS IN CERTAIN STATUTORY COUNTY COURTS. SECTION 1.11. Amends Subchapter H, Chapter 51, Government Code, by adding Section 51.703 to read as follows: Sec. 51.703. ADDITIONAL FEES AND COSTS IN CERTAIN COUNTY COURTS. (a) Requires the clerk of a county court with a judge who is entitled to an annual salary supplement from the state under Section 26.006 to collect a $40 filing fee in each civil case filed in the court to be used for court-related purposes for the support of the judiciary, in addition to all other fees authorized or required by other law. Requires a person, in addition to other court costs, to pay $15 as a court cost on conviction of any criminal offense in a county court, including cases in which probation or deferred adjudication is granted and a conviction that arises under Chapter 521, Transportation Code, or a conviction under Subtitle C, Title 7, Transportation Code, is included, but not a conviction arising under any law that regulates pedestrians or the parking of motor vehicles. Requires court costs and fees due under this section to be collected in the same manner as other fees, fines, or costs are collected in the case. Requires the clerk to send the fees and costs collected under this section to the comptroller at least as frequently as monthly and deposit the fees in the judicial fund. Provides that Section 51.320 applies to a fee or cost collected under this section. SECTION 1.12. Amends Section 403.011, Government Code, to require the comptroller to draw warrants on the treasury for payment of all money required by law to be paid from the treasury on warrants drawn by the comptroller. Authorizes the comptroller to solicit, accept, or refuse a gift or grant of money, services, or property on behalf of the state for any public purpose related to the office or duties of the comptroller. SECTION 1.13. Amends Section 403.023, Government Code, as follows: Sec. 403.023. New title: CREDIT AND DEBIT CARDS. Authorizes the comptroller to adopt rules relating to the acceptance of charge and debit cards for the payment of fees, taxes, and other charges assessed by state agencies. Prohibits the comptroller from adopting rules about a particular state agency's acceptance of charge and debit cards for a payment if the rules would affect a contract that the agency has entered into that is in effect on September 1, 1999. Makes conforming and nonsubstantive changes. SECTION 1.14. Amends Subchapter B, Chapter 403, Government Code, by adding Section 403.0271, as follows: Sec. 403.0271. AUTHORIZATIONS TO DEBIT STATE ACCOUNTS. (a) Authorizes the comptroller to authorize a person to debit a state account in or outside of the state treasury for the purpose of receiving payment for goods or services provided to a state agency. (b) Authorizes the comptroller to limit the circumstances under which a debit is permitted. (c) Requires each state agency whose funds are paid through debits authorized under Subsection (a) to reconcile the debits with the actual amount due for goods or services provided and recover any amount debited that exceeds the amount due. (d) Requires the comptroller, by rule, to specify the frequency with which a state agency must conduct such a reconciliation. Authorizes the comptroller, by rule, to require the agency to submit the reconciliation to the comptroller for review and approval. Authorizes the comptroller to audit the agency to ensure the accuracy of the reconciliation. (e) Authorizes the comptroller to adopt rules and establish procedures to administer this section. (f) Defines "state agency" in this section. SECTION 1.15. Amends Section 403.055, Government Code, as follows: Sec. 403.055. New title: PAYMENTS TO DEBTORS OR DELINQUENTS PROHIBITED. (a) Includes initiating an electronic funds transfer to a person who has been reported to the comptroller as being indebted to the state or having a tax delinquency among the activities from which the comptroller is prohibited. Makes conforming changes. (b) Makes conforming changes. (c) Provides that when this section prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to person, the comptroller is also prohibited from issuing a warrant or initiating electronic funds transfer to the person's estate, the distributees of the person's estate, or the person's surviving spouse. (d) Redesignated from existing Subsection (c). Makes conforming and nonsubstantive changes. (e) Provides that this section does not prohibit the comptroller from issuing a warrant or initiating an electronic funds transfer to a person properly reported under Subsection (f) or to the person's assignee if the state agency responsible for collecting the person's debt or tax delinquency subsequently and properly reports to the comptroller that the person is complying with an installment payment agreement to eliminate the debt or delinquency unless the person is no longer complying with the agreement, the debt or delinquency has been eliminated, or the report of the indebtedness or delinquency was prohibited by Subsection (g) or was otherwise erroneous. Redesignated from existing Subsection (d). (f) Requires a state agency to report to the comptroller each person who is indebted to the state or has a tax delinquency, except as provided by Subsection (g). Provides that the report must contain the information and be submitted in the manner and with the frequency required by the comptroller. (g) Prohibits the state agency from reporting a person under Subsection (f) unless the agency first provides the person with an opportunity to exercise any due process or other constitutional or statutory protection that must be accommodated before the agency or the state may begin a collection action or procedure. Prohibits the comptroller from investigating or determining whether a state agency has complied with this prohibition. (h) Provides that this section does not apply to the extent Section 57.48, Education Code, applies or to the extent this section conflicts with Section 231.007, Family Code. (i) Provides that this section does not prohibit the comptroller from issuing a warrant or initiating an electronic funds transfer if the warrant or transfer would result in a payment being made in whole or in part with money paid to the state by the United States and the state agency that administers the money certifies to the comptroller that federal law requires the payment to be made or conditions the state's receipt of the money on the payment being made. (j) Authorizes the comptroller to adopt rules and establish procedures to administer this section. (k) Redefines "compensation," "state agency" and defines "tax delinquency" in this section. Redesignated from existing Subsection (f). Deletes existing Subsection (k) relating to a state agency carrying out the actions authorized in this section. SECTION 1.16. Amends Subchapter D, Chapter 403, Government Code, by adding Section 403.0551, as follows: Sec. 403.0551. DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR TAX DELINQUENCIES. (a) Authorizes the comptroller to deduct the amount of a person's indebtedness to the state or tax delinquency from any amount the state owes the person or the person's successor, except as provided by Subsections (b) and (d). Requires the comptroller to issue a warrant or initiate an electronic funds transfer to the person or successor for any remaining amount. (b) Provides that Subsection (a) applies to a person or the person's successor only the comptroller has provided notice to the person or successor that complies with Subsection (c); Section 57.48, Education Code, or Section 403.055 prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to the person or successor; and the comptroller is responsible under Section 404.046, 404.069, or 2103.003 for paying the amount owed by the state to the person or successor through the issuance of warrant or initiation of an electronic funds transfer. (c) Requires the comptroller to provide notice to a person or the person's successor before deducting the amount of the person's indebtedness to the state or tax delinquency under Subsection (a). Sets forth the notice requirements and the information which the notice must state. (d) Provides that the 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. Defines "compensation," "indebtedness," state agency," "state employee," and "successor" in this subsection. (e) Requires the comptroller to credit the appropriate fund or account for any amount deducted under this section if the comptroller is the custodian or trustee of that fund or account or remit the amount to the custodian or trustee of the appropriate fund or account if the comptroller is not its custodian or trustee. (f) Authorizes the comptroller to determine the order in which a person's multiple types of indebtedness to the state or tax delinquencies are deducted from the amount the state owes the person or the person's successor. (g) Provides that the assignee of a person or the person's successor is considered to be a successor of the person for the purposes of this section, but prohibits a deduction under this section from the amount owed to the assignee of a person or the person's successor from being made if the assignment became effective before the person became indebted to the state or incurred the tax delinquency. (h) Authorizes the comptroller to adopt rules and establish procedures to administer this section. (i) Defines "successor" in this section. SECTION 1.17. Amends Subchapter D, Chapter 403, Government Code, by adding Section 403.0552, as follows: Sec. 403.0552. PREPARATION AND RETENTION OF CERTAIN WARRANTS. (a) Authorizes the comptroller to prepare and retain a warrant that Section 57.48, Education Code, Section 231.007, Family Code, or Section 403.055, Government Code, prohibits the comptroller from issuing. (b) Authorizes the comptroller to prepare a warrant to make a payment that Section 57.48, Education Code, Section 231.007, Family Code, or Section 403.055, Government Code, prohibits the comptroller from initiating by electronic funds transfer. (c) Requires the comptroller, if the comptroller prepares a warrant under Subsection (a) or (b), to make the warrant payable to the person to whom the warrant may not be issued or an electronic funds transfer may not be initiated and retain the warrant for a certain period of time. (d) Prohibits the comptroller from canceling or destroying such a warrant unless the comptroller receives a request for its cancellation or destruction from the state agency that submitted the voucher requesting issuance of the warrant or initiation of the electronic funds transfer and the agency informs the comptroller that the voucher was erroneous, the agency is the only state agency responsible for collecting the indebtedness or tax delinquency of the payee or warrant, or all state agencies that are responsible for collecting the indebtedness or tax delinquency of the payee of the warrant consent to the cancellation or destruction. (e) Provides that a voucher is not erroneous and is not submitted erroneously merely because the comptroller is prohibited from issuing a warrant or initiating an electronic funds transfer in accordance with the voucher. SECTION 1.18. Amends Section 403.060(a), Government Code, to authorize the comptroller to delegate to a person, rather than a state agency, the authority to print warrants and deliver those warrants to the appropriate person. Makes conforming changes. SECTION 1.19. Amends Section 403.302(b), Government Code, to require the comptroller to ensure that different levels of appraisal on sold and unsold property do not adversely affect the accuracy of the study when determining the taxable value of property in each school district. SECTION 1.20. Amends Section 404.046, Government Code, to provide that Section 403.0271 provides an exception to the prohibition against money being paid out of the treasury except on a warrant drawn or an electronic funds transfer initiated by the comptroller. Makes conforming changes. SECTION 1.21. Amends Section 404.069(a), Government Code, to authorizes money to be withdrawn only on a warrant drawn or an electronic funds transfer initiated by the comptroller, except as provided by Section 403.0271, and securities to be withdrawn only by withdrawal authorization. Deletes requirement that those instruments be issued by the comptroller as provided by Section 403.011 (General Powers) and 403.056 (Preparation and Delivery of Warrants). SECTION 1.22. Amends Section 608.002(b), Government Code, to provide that an authorization of an individual's department administrator or disbursing officer to deduct from the individual's compensation an amount to be used to purchase savings bonds must state the denomination of the savings bonds to be purchased. SECTION 1.23. Amends Section 608.003(b), Government Code, to make a conforming change. SECTION 1.24. Amends Section 608.005, Government Code, as follows: Sec. 608.005. New title: PAYMENT TO DEPARTMENT ADMINISTRATOR OR DISBURSING OFFICER. Makes conforming changes. SECTION 1.25. Amends Section 608.007, Government Code, to make conforming changes. SECTION 1.26. Amends Section 608.010(b), Government Code, to make a conforming change. SECTION 1.27. Amends Subtitle B, Title 6, Government Code, by adding Chapter 666, as follows: CHAPTER 666. PAYROLL DEDUCTION TO RECOUP EXCESS COMPENSATION PAID TO A STATE OFFICER OR EMPLOYEE Sec. 666.001. DEFINITIONS. Defines "compensation," "indebtedness," "state agency," "state employee" and "successor" in this chapter. Sec. 666.002. DEDUCTION AUTHORIZATION. (a) Authorizes a state agency to deduct the amount of a state employee's indebtedness to the agency from any amount of compensation the agency owes the employee or the employee's successor if the agency provides a notice to the employee or successor that complies with Section 666.003, the agency provides the employee or successor with an opportunity to exercise any due process or other constitutional or statutory protection that must be accommodated before the agency may begin a collection action or procedure, the agency determines that the deduction would not violation any applicable law or rule of this state or the United States, and the comptroller is not responsible under Section 404.046, 404.069, or 2103.003 for paying the amount owed by the agency to the employee or successor through the issuance of a warrant or initiation of an electronic funds transfer. (b) Authorizes the comptroller to deduct the amount of a state employee's indebtedness to a state agency from any amount of compensation the agency owes the employee or the employee's successor if the agency provides a notice to the employee or successor that complies with Section 666.003, the agency requests the comptroller to make the deduction in accordance with Section 666.005, and the comptroller is responsible under Section 404.046, 404.069, or 2103.003 for paying the amount owed by the agency to the employee or successor through the issuance of a warrant or initiation of an electronic funds transfer. Sec. 666.003. NOTICE. Requires a state agency to provide notice to a state employee or the employee's successor before the agency deducts the amount of the employee's indebtedness to the agency under Section 666.002(a) or requests the comptroller to make a deduction under Section 666.002(b). Sets forth the required procedures for and contents of the notice. Sec. 666.004. PAYMENT OF AMOUNT REMAINING. Requires any amount that remains owed after a deduction under Section 666.002 to be paid to the state employee or successor. Sec. 666.005. DEDUCTION REQUESTS TO THE COMPTROLLER. (a) Prohibits a state agency from requesting the comptroller to make a deduction from compensation owed to a state employee or successor under Section 666.002(b) before the agency provides the employee or successor the opportunity to exercise any due process or other constitutional or statutory protection that must be accommodated before a collection action or procedure may begin and determines that the deduction would not violate any applicable law or rule of this state or the United States. (b) Prohibits the comptroller from investigating or determining whether the agency has complied with Subsection (a). Authorizes the comptroller to rely on a determination made under Subsection (a). (c) Provides that a state agency's request to the comptroller to make a deduction under Section 666.002(b) must comply with the comptroller's requirements for format, content, and frequency. Sec. 666.006. ASSIGNEES. Provides that the assignee of a state employee or the employee's successor is considered to be a successor for the purposes of this chapter, but prohibits a deduction under this chapter from the compensation owed to the assignee of a state employee or the employee's successor from being made if the assignment became effective after the employee incurred the indebtedness. Sec. 666.007. ADMINISTRATION. Authorizes the comptroller to adopt rules and establish procedures to administer this chapter. SECTION 1.28. Amends Section 2103.003, Government Code, to authorize a state agency to spend appropriated funds by a warrant drawn by a person, rather than a state agency, to which the comptroller has delegated authority and to include a debit to a state account by a person authorized under Section 402.0271 among the ways by which a state agency is authorized to spend appropriated funds. SECTION 1.29. Amends Chapter 2107, Government Code, by adding Section 2107.008, as follows: Sec. 2107.008. PAYMENTS TO DEBTORS OR DELINQUENTS PROHIBITED. (a) Prohibits a state agency, as a ministerial duty, from using funds in or outside of the state treasury to pay a person if: (1) Section 403.055 prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to the person, or (2) the person is indebted to the state or has a tax delinquency, the agency is responsible for collecting that indebtedness of delinquency, and Section 403.055 does not prohibit the comptroller from issuing a warrant or initiating an electronic funds transfer to the person. (b) Prohibits a state agency from paying the assignee of a person that the agency is prohibited from paying under Subsection (a)(1) if Section 403.055 prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to the assignee. Prohibits the agency from paying the assignee of a person that the agency is prohibited from paying under Subsection (a)(2) if the assignment became effective after the person became indebted to the state or incurred a tax delinquency. (c) Provides that a state agency that Subsection (a) prohibits from making a payment to a person is also prohibited from paying any part of that payment to the person's estate, the distributees of the person's estate, or the person's surviving spouse. (d) Provides that this section does not prohibit a state agency from paying a person subject to Subsection (a)(2) or the person's assignee if the agency determines that the person is complying with an installment payment agreement to eliminate the debt or delinquency. (e) Prohibits the comptroller from reimbursing a state agency for a payment that the comptroller determines was made in violation of this section. (f) Provides that Subsection (a)(2) does not prohibit a state agency from paying the compensation of a state officer or employee or the remuneration of an individual if the remuneration is being paid by a private person through the agency. (g) Provides that Subsection (a)(2) does not prohibit a state agency from making a payment if the payment would be made in whole or in part with money paid to the state by the United States and the agency determines that federal law requires the payment to be made or conditions the state's receipt of those funds on the payment being made. (h) Prohibits a state agency from refusing to make a payment under Subsection (a)(2) before the agency has provided the person with an opportunity to exercise any due process or other constitutional or statutory protection that must be accommodated before the agency or the state may begin a collection action or procedure. (i) Provides that this section does not apply to the extent Section 57.482, Education Code, applies. (j) Provides that this section applies to a payment only if the comptroller is not responsible under Section 404.046, 404.069, or 2103.003 for issuing a warrant or initiating an electronic funds transfer to make the payment. (k) Defines "compensation," "state agency," "state officer or employee," and "tax delinquency" in this section, notwithstanding Section 2107.001. SECTION 1.30. Amends Section 2254.030, Government Code, to require a contracting state agency to file descriptive information with the secretary of state for publication in the Texas Register by the 20th, rather than the10th, day after the date of entering into a major consulting services contract. SECTION 1.31. Amends Sections 2254.031(a) and (c), Government Code, to require a state agency that intends to renew a major consulting services contract or has amended or extended such a contract to file the required information with the secretary of state for publication in the Texas Register by the 20th, rather than the10th, day after the date the contract is renewed, amended, or extended. SECTION 1.32. Amends Section 2254.034(c), Government Code, to delete the requirement that an agency comply with Sections 2254.029 through 2254.031 before the agency is authorized to make any payment under the contract with state or federal money or money held in or outside the state treasury. SECTION 1.33. Amends Section 31.038, Human Resources Code, to authorize the Texas Department of Human Services (department), rather than the comptroller on the department's authorization, to cancel a financial assistance warrant that has not been cashed within a reasonable period of time after issuance. Provides that the cancellation must be performed in the manner required by rules of the comptroller. ARTICLE 2. TECHNICAL CHANGES REGARDING TAXES AND FEES. SECTION 2.01. Amends Article 102.075(g), Code of Criminal Procedure, to provide that in order for a municipality or county to be authorized to retain 10 percent of the money collected under this article as a service fee the funds must be remitted to the comptroller within the prescribed period. SECTION 2.02. Amends Section 403.014(b), Government Code, to provide that the comptroller's report on the effect of certain tax provisions must include, for provisions reducing revenue by more than one percent of total revenue for a tax covered by this section, the effect of each provision on total income by income class. SECTION 2.03. Amends Section 403.0141(c), Government Code, to require the incidence impact analysis to evaluate the effect of each tax on total income by income group. SECTION 2.04. Amends Section 12(b), Article 1.14-1, Insurance Code, to change the due date of the report to May 15, rather than March 1, of the calendar year after the calendar year in which the insurance was procured, continued, or renewed or on another date prescribed by the comptroller. SECTION 2.05. Amends Sections 12(a) and (b), Article 1.14-2, Insurance Code, to require the surplus line agent to pay taxes to the comptroller by March 1 of each year on forms prescribed by the comptroller. Requires a tax prepayment, due by the 15th day the following month, any time accrued taxes due equal or exceed $70,000. Deletes the requirement that the surplus line agent maintain surplus lines premium receipt taxes in a separate account. SECTION 2.06. Amends Section 9(b), Article 2.50-3, V.T.C.S. (Texas State College and University Employees Uniform Insurance Benefits Act), to provide that premiums on policies, insurance contracts, or agreements with health maintenance organizations established under this Act are not subject to any regulatory fee or surcharge, including premium or maintenance taxes or fees. SECTION 2.07. Amends Section 11(b), Article 3.50-4, Insurance Code (Texas Public School Employees Group Insurance Act), to provide that a premium or contribution on a policy, insurance contract, or agreement authorized as provided by this article is not subject to any regulatory fee, or surcharge, including premium or maintenance taxes or fees. SECTION 2.08. Amends Section 326.029(a), Local Government Code, to require the commissioners court to declare by resolution or order that the district is created if it is so voted in an election. SECTION 2.09. Amends Section 326.092(a), Local Government Code, to provide that Section 323.406, Tax Code, does not apply to this subchapter. SECTION 2.10. Amends Section 101.003, Tax Code, to define "tax." SECTION 2.11. Amends Section 111.0041(b), Tax Code, to delete the exception of Section 191.024(b) of this code from the provision that this section prevails over any other conflicting provision of this title. SECTION 2.12. Amends Section 111.023, Tax Code, to authorize an officer, director, or employee of the taxpayer whose duties include administering the taxpayer's rights and responsibilities with the comptroller to sign the written authorization. Provides that the authorization must include the title and telephone number of the officer, director, or employee who signs the authorization for verification by the comptroller. Authorizes the comptroller to impose such a requirement on a taxpayer's assignment of a claim for refund. Makes nonsubstantive changes. SECTION 2.13. Amends Section 111.104(e), Tax Code, to delete the exception of those taxes that qualify for refund allowed under Section 151.318(g) or (n) from the provision that this section applies to all taxes and license fees collected or administered by the comptroller. SECTION 2.14. Amends Section 111.107, Tax Code, to make a conforming change. SECTION 2.15. Amends Sections 151.310(c) and (e), Tax Code, to authorize a taxable item manufactured by or donated to a qualified organization or chapter of the organization to be sold tax free regardless of the sales price to any purchaser other than the donor. Requires a nonprofit hospital or hospital system that qualifies for an exemption under Subsection (a)(2) to provide community benefits that include charity care and government-sponsored indigent health care as set forth in Subchapter D, Chapter 311, Health and Safety Code. Deletes list of specific types of charity care to be provided and regulations regarding such care. SECTION 2.16. Amends Section 151.3101, Tax Code, to define "educational organization." SECTION 2.17. Amends Section 151.312, Tax Code, to exempt periodicals and writings presented on audio tape, videotape, and computer disk from the taxes imposed by this chapter. SECTION 2.18. Amends Section 151.317, Tax Code, as follows: Sec. 151.317. GAS AND ELECTRICITY. (a) Sets forth the specific uses of gas and electricity which are exempted from the taxes imposed by this chapter. (b) Makes conforming changes. (c) Deletes definition of "commercial use." Makes conforming changes. (d) Provides that, to qualify for the exemptions in Subsections (a)(2)-(8), the gas or electricity must be sold to the person using it in the exempt manner. Provides that, for purposes of this subsection, the use of gas or electricity in an exempt manner by an independent contractor engaged by the purchaser of the gas or electricity to perform one or more of the exempt activities identified in Subsections (a)(2)-(8) is considered use by the purchaser of the gas or electricity. (e) Provides that natural gas or electricity used during a regular monthly billing period for both exempt and taxable purposes under a single meter is totally exempt or taxable based on the predominant use of the natural gas or electricity measured by that meter. Authorizes the comptroller to prescribe by rule the procedures by which a purchaser must establish the predominant use of the natural gas or electricity. SECTION 2.19. Amends Section 151.318, Tax Code, by amending Subsections (a), (c), (o), (q), and (s), and adding Subsections (f) and (t), as follows: (a) Exempts a specified list of items from the taxes imposed by this chapter if sold, leased, or rented to, or stored, used or consumed by a manufacturer. (c) Provides that a specified list of items remain eligible for the exemption. (f) Specifies that certain equipment is not considered a component part of a single item of manufacturing equipment and so is not exempt. (o) Defines "intraplant transportation equipment." (s) Makes conforming changes. (t) Exempts certain other items from the tax imposed by this chapter if they are purchased by a person engaged in printing or imprinting tangible personal property for sale or producing a publication for the dissemination of general news distributed to the general public free of charge at a short interval. SECTION 2.20. Amends Subchapter H, Chapter 151, Tax Code, by adding Section 151.3185, as follows: Sec. 151.3185. PROPERTY USED IN THE PRODUCTION OF MOTION PICTURES OR VIDEO OR AUDIO RECORDINGS AND BROADCASTS. (a) Exempts from the taxes imposed by this chapter the sale, lease, or rental or storage, use, or other consumption of tangible personal property that will become an ingredient or component part of a motion picture or video or audio recording, a copy of which is sold or offered for ultimate sale, licensed, distributed, broadcast, or otherwise exhibited or a broadcast by a producer of cable programs or by a radio or television station licensed by the Federal Communications Commission; tangible personal property that is necessary or essential to and used or consumed in or during the production of a motion picture or video or audio recording, a copy of which is sold or offered for ultimate sale, licensed, distributed, broadcast, or otherwise exhibited or the production of a broadcast by or for a cable program producer or by or for a radio or television station licensed by the Federal Communications Commission; and except as provided by Subsection (c), services that are necessary and essential to and used directly in a such production. (b) Sets forth the specific items the exemption includes. (c) Sets forth the specific items the exemption does not include. (d) Provides that a production described by Subsection (a)(2) does not include a production for broadcast that is not intended to be broadcast to either the general public or to cable television service subscribers or paying customers. SECTION 2.21. Amends Section 151.321(a), Tax Code, to provide that a taxable item manufactured by or donated to a qualified student organization is exempt from the taxes imposed by Subchapter C regardless of sales price unless sold to the donor. SECTION 2.22. Amends Section 151.350(d), Tax Code, to redefine "restore." SECTION 2.23. Amends Subchapter H, Chapter 151, Tax Code, by adding Section 151.354, as follows: Sec. 151.354. SERVICES BY EMPLOYEES OF PROPERTY MANAGEMENT COMPANIES. (a) Exempts from the taxes imposed by this chapter services performed by an employee of a property management company if the employee is permanently assigned to one rental property by the property management company; the property management company is reimbursed on a dollar-for-dollar basis for the services provided; and the employee remains assigned to that property while employed by successive owners or management companies. (b) Provides that this exemption does not apply to services performed by an employee for properties other than the one to which the employee is permanently assigned. (c) Provides that, for purposes of this section, a person is an employee of a property management company if either the property management company or an affiliate of the property management company employs the person. (d) Provides that the property management company must be contractually obligated to the property owner to exercise control over the activities of the employee providing the service and manage and direct the employee's day-to-day activities. (e) Provides that the property management company or the affiliate must pay tax on the taxable items purchased and provided to employees providing services on managed property. (f) Defines "property management company." (g) Provides that, in this section, a corporation, limited liability company, partnership, trust, or estate is an affiliate of the property management company if an 80 percent ownership interest in the property management company or the corporation, limited liability company, partnership, trust, or estate is held by the other, or if a third person has an 80 percent ownership interest either directly or indirectly in both the property management company and the corporation, limited liability company, partnership, trust, or estate. SECTION 2.24. Amends Section 151.426, Tax Code, by amending Subsection (c) and adding Subsections (e), (f), (g), (h), (i), and (j), as follows: (c) Entitles any person who extends credit to a purchaser under a retailer's private label credit agreement, or an assignee or affiliate of such a person or a retailer to credit or reimbursement for taxes paid on the portion of an account determined to be worthless and actually charged off for federal income tax purposes or the remaining unpaid sales price of a taxable item when the item is repossessed under a conditional sales contract. (e) Entitles a person to a credit or reimbursement provided by Subsection (c) only if the retailer has a valid sales or use tax permit and remits the tax for which the credit or reimbursement is sought; all payments on an account are prorated between taxable and nontaxable charges; and the retailer or person claiming the credit or reimbursement provides detailed records outlining the amount the purchaser contracted to pay, taxable and nontaxable charges, the tax collected and remitted, the unpaid portion of the sales price assigned, and the taxpayer number of the seller who collected and remitted the tax. (f) Authorizes a person whose volume and character of uncollectible accounts warrants an alternative method of substantiating the reimbursement or credit to maintain records other than the records specified in Subsection (e) under certain conditions or to implement a system to report its future tax responsibilities based on a historical percentage calculated from a sample of transactions if the system utilizes records provided by the person claiming the credit or reimbursement and the comptroller approves the procedures used. (g) Authorizes the comptroller to revoke the authorization to report under Subsection (f)(2) if the comptroller determines that the percentage being used is no longer representative because of a change in law, including a change in the interpretation of an existing law or rule, or a change in the taxpayer's business operations. (h) Requires a person claiming a credit or reimbursement under this section to remit tax on any payments received on an account that has been written off and claimed as a bad debt. (i) Authorizes a person who is not a retailer to claim a credit or reimbursement authorized by Subsection (c) only for taxes imposed by Section 151.051 or 151.101. (j) Defines "affiliate." SECTION 2.25. Amends Sections 151.429(d) and (g), Tax Code, to update references to the department of commerce to the Texas Department of Economic Development. SECTION 2.26. Amends Section 151.429(e)(1), Tax Code, to update a reference to the department of commerce to the Texas Department of Economic Development. SECTION 2.27. Amends Sections 151.4291(d) and (g), Tax Code, to update references to the department of commerce to the Texas Department of Economic Development. SECTION 2.28. Amends Section 151.4291(e)(1), Tax Code, to update a reference to the department of commerce to the Texas Department of Economic Development. SECTION 2.29. Amends Section 151.431(a), Tax Code, to update a reference to the department of commerce to the Texas Department of Economic Development. SECTION 2.30. Amends Section 152.002, by adding Subsection (d), as follows: (d) Authorizes a person who holds a lessor license under Article 4413(36), V.T.C.S. (Texas Motor Vehicle Commission Code), or is specifically not required to obtain a lessor license under Section 4.01(a) of that Act to deduct the fair market value of a replaced motor vehicle that has been leased for longer than 180 days and is titled to another person if either person holds a beneficial ownership interest in the other person of at least 80 percent or acquires all of its vehicles exclusively from franchised dealers whose franchisor shares common ownership with the other person and the replaced motor vehicle is offered for sale. SECTION 2.31. Amends Section 152.041, Tax Code, by adding Subsection (e), as follows: (e) Authorizes a tax assessor-collector to accept application for title to the motor vehicle without the payment of additional tax by the applicant if a motor vehicle title applicant has paid the tax to the seller who is required by this chapter to collect the tax and the seller has failed to remit the tax to the county tax assessor-collector. Provides that, before title to the motor vehicle may be issued under these circumstances, the motor vehicle title applicant must present satisfactory documentation to the tax assessor-collector that the tax was paid. Requires the county tax assessor-collector to notify the comptroller in writing of the seller's failure to remit the tax. Sets forth the information the notice must contain. SECTION 2.32. Amends Sections 153.117(a), (b), (d), and (h), Tax Code, to include the number of gallons of gasoline lost by theft among the records required to be kept by a distributor, a dealer, an aviation fuel dealer, and a gasoline jobber. SECTION 2.33. Amends Sections 153.119(a) and (e), Tax Code, to make conforming changes. SECTION 2.34. Amends Section 153.121(a), Tax Code, to make a conforming change. SECTION 2.35. Amends Section 153.206, Tax Code, by adding Subsection (j), as follows: (j) Requires the amount of tax, on each subsequent sale of diesel fuel on which the tax has been collected, to be added to the selling price so that the tax is paid ultimately by the person using or consuming the diesel fuel for the purpose of propelling a vehicle on the public highways of this state. SECTION 2.36. Amends Sections 153.219(a), (b), (c), (d), and (i), Tax Code, to include the number of gallons of diesel fuel lost by theft among the records required to be kept by a supplier, a dealer, a bonded user or other user with nonhighway equipment who files a claim for a refund, an aviation fuel dealer, and a diesel fuel jobber. SECTION 2.37. Amends Section 153.222(e), Tax Code, to make a conforming change. SECTION 2.38. Amends Section 153.224(a), Tax Code, to make a conforming change. SECTION 2.39. Amends Sections 154.114(c) and (g), Tax Code, as follows: (c) Requires the comptroller to deliver, rather than mail, the written notice by personal service or by mail, rather than by certified mail, return receipt requested, to the permit holder's mailing address. Makes a conforming change. (g) Specifies that the permit holder referenced in this subsection refers to a distributor or wholesaler permit holder. SECTION 2.40. Amends Section 154.210(a), Tax Code, to require a distributor to deliver to the comptroller, on or before the last, rather than 15th, day of each month, a report for the preceding month. SECTION 2.41. Amends Section 154.308(b), Tax Code, to require the comptroller to notify the person by personal service or by mail, rather than by certified mail, return receipt requested, on making a deficiency determination. Makes a conforming change. SECTION 2.42. Amends Sections 154.309(b) and (d), Tax Code, to provide that a written request for redetermination must be filed at the office of the comptroller by the 30th, rather than the 15th working, day after the date notice of deficiency is issued, rather than received. Requires the comptroller to give notice of a redetermination by personal service or by mail, rather than by certified mail, return receipt requested. SECTION 2.43. Amends Section 155.059(c), Tax Code, to require the comptroller to deliver, rather than mail, the written notice by personal service or by rail, rather than by certified mail, return receipt requested, to the permit holder's mailing address. Makes a conforming change. SECTION 2.44. Amends Section 155.103(b), Tax Code, to require a manufacturer who sells tobacco products to a permit holder in this state to file with the comptroller, on or before the last, rather than the 15th, day of each month, a report showing the required information for the previous month. SECTION 2.45. Amends Section 155.111(a), Tax Code, to require a distributor to deliver to the comptroller, on or before the last, rather than 15th, day of each month, a report for the preceding month. SECTION 2.46. Amends Section 155.185(b), Tax Code, to require the comptroller to notify the person by personal service or by mail, rather than by certified mail, return receipt requested, on making a deficiency determination. Makes a conforming change. SECTION 2.47. Amends Sections 155.186(b) and (d), Tax Code, to provide that a written request for redetermination must be filed at the office of the comptroller by the 30th, rather than the 15th working, day after the date notice of deficiency is issued, rather than received. Requires the comptroller to give notice of a redetermination by personal service or by mail, rather than by certified mail, return receipt requested. SECTION 2.48. Amends Section 156.102, Tax Code, to provide that, for purposes of this section, an institution of higher education is organized and operated exclusively for an educational purpose only if the institution is defined as an institution of higher education under any Subdivision of Section 61.003, Education Code. SECTION 2.49. Amends Sections 156.103(a), (b), (c), and (d), Tax Code, to provide that this chapter does not impose a tax on a governmental entity of the United States. Deletes the condition that the governmental entity directly pay to the hotel the price for the room for an officer or employee of a governmental entity of the United States to be exempt. Makes conforming changes. SECTION 2.50. Amends Section 171.063, Tax Code, by amending Subsection (a) and adding Subsection (h), as follows: (a) Exempts a nonprofit hospital providing community benefits that include charity care and government-sponsored indigent health care as set forth in Subchapter D, Chapter 311, Health and Safety Code. Deletes list of specific types of charity care to be provided and regulations regarding such care. (h) Authorizes the requirement that a nonprofit hospital provide charity care and community benefits to be satisfied by a donation of money to the Texas Healthy Kids Corporation established by Chapter 109, Health and Safety Code, if the money is donated to be used for a purpose described by Section 109.033(c), Health and Safety Code. Prohibits more than 10 percent of the charity care required under any provision of Section 311.045, Health and Safety Code, from being satisfied by the donation. SECTION 2.51. Amends Sections 171.063(c) and (d), Tax Code, to delete the provision that a copy of the Internal Revenue Service's letter of exemption must be filed with the comptroller by a certain date. Provides that evidence establishing a provisional exemption must be filed within 15 months of the date of the corporation's charter or certificate of authority. Makes conforming changes. SECTION 2.52. Amends the heading of Subchapter C, Chapter 171, Tax Code, to read as follows: SUBCHAPTER C. DETERMINATION OF TAXABLE CAPITAL AND TAXABLE EARNED SURPLUS; ALLOCATION AND APPORTIONMENT SECTION 2.53. Amends the heading of Section 171.1015, Tax Code, to read as follows: Sec. 171.1015. REDUCTION OF TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS FOR INVESTMENT IN AN ENTERPRISE ZONE. SECTION 2.54. Amends Section 171.1015(f)(1), Tax Code, to update a reference to the Texas Department of Commerce to the Texas Department of Economic Development. SECTION 2.55. Amends Section 171.1015(g), Tax Code, to update a reference to the Texas Department of Commerce to the Texas Department of Economic Development. SECTION 2.56. Amends the heading of Section 11.1016, Tax Code, to read as follows: Sec. 171.1016. REDUCTION OF TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS FOR INVESTMENT IN A READJUSTMENT ZONE. SECTION 2.57. Amends Section 171.1016(f)(1), Tax Code, to update a reference to the Texas Department of Commerce to the Texas Department of Economic Development. SECTION 2.58. Amends Section 171.1016(g), Tax Code, to update a reference to the Texas Department of Commerce to the Texas Department of Economic Development. SECTION 2.59. Amends the heading of Section 171.107, Tax Code, to read as follows: Sec. 171.107. DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS APPORTIONED TO THIS STATE. SECTION 2.60. Amends Section 171.110, Tax Code, by adding Subsections (i) and (j), as follows: (i) Provides that, for purposes of this section, any person designated as an officer is presumed to be an officer if that person holds an office created by the board of directors or under the corporate charter or bylaws and has legal authority to bind the corporation with third parties by executing contracts or other legal documents. (j) Authorizes a corporation to rebut this presumption if it conclusively shows that the person does not participate or have authority to participate in significant policy making aspects of the corporate operations. SECTION 2.61. Amends Section 171.501(a), Tax Code, to update references to the Texas Department of Commerce to the Texas Department of Economic Development. SECTION 2.62. Amends the heading of Subchapter C, Chapter 183, Tax Code, to read as follows: SUBCHAPTER C. MIXED BEVERAGE TAX CLEARANCE SECTION 2.63. Amends the heading of Section 183.051, Tax Code, to read as follows: Sec. 183.051. MIXED BEVERAGE TAX CLEARANCE. SECTION 2.64. Amends Section 183.051(b), Tax Code, to require the comptroller to issue to each county described in Subsection (a) a warrant drawn on the general revenue fund, rather than the mixed beverage tax clearance, in an amount appropriated by the legislature that may not be greater than 10.7143 percent, rather than of 10.7143 percent, of receipts from permittees during the quarter. Makes conforming changes. SECTION 2.65. Amends Section 191.085(b), Tax Code, to require a person to keep the record open for four, rather than two, years for inspection by the comptroller or the attorney general. SECTION 2.66. Amends Section 203.051(a), Tax Code, to authorize a producer to destroy a record required by this section four, rather than three, years after the last entry in the record. SECTION 2.67. Amends Section 321.102, Tax Code, by adding Subsections (e), (f), and (g), as follows: (e) Provides that, if as a result of the imposition or increase in a sales and use tax by a municipality in which there is located all or part of a local governmental entity that has adopted a sales and use tax or as a result of the annexation by a municipality of all or part of the territory in a local governmental entity that has adopted a sales and use tax the overlapping local sales and use taxes in the area will exceed two percent, the entity's sales and use tax is automatically reduced in that area to a rate that when added to the combined rate of local sales and use taxes will equal two percent. (f) Requires the comptroller, if an entity's rate is reduced in accordance with Subsection (e), to withhold from the municipality's monthly sales and use tax allocation an amount equal to the amount that would have been collected by the entity had the municipality not imposed or increased its sales and use tax or annexed the area in the entity less amounts that the entity collects following the municipality's levy of or increase in its sales and use tax or annexation of the area in the entity. Requires the comptroller to withhold and pay the amount withheld to the entity under policies or procedures that the comptroller considers reasonable. (g) Provides that a transit authority is not a local governmental entity for the purposes of Subsections (e) and (f). SECTION 2.68. Amends Section 322.302, Tax Code, to require the comptroller to pay a taxing entity it's share of collected taxes at least quarterly, rather than twice, during each state fiscal year. Makes a conforming change. SECTION 2.69. Amends Section 323.102(c), Tax Code, to provide that a tax imposed under Chapter 326, Local Government Code, take effect on a certain day. SECTION 2.70. Amends Section 323.105(e), Tax Code, to condition the requirement that the comptroller remit to the county amounts collected at the rate imposed under this section as part of the regular allocation of county tax revenue collected by the comptroller on the district being composed of the entire county. Requires the comptroller, rather than the county, to remit that amount to the district. SECTION 2.71. Amends Section 351.001, Tax Code, to define "revenue." SECTION 2.72. Amends Section 351.006, Tax Code, to provide that a United States governmental entity described in Section 156.103(a) is exempt from the payment of tax authorized by this chapter. Requires a state governmental entity excepted from the tax imposed by Chapter 156 under Section 156.103(a)(1) or (a)(3) to pay the tax imposed by this chapter but entitles it to a refund of the tax paid. Makes conforming changes. SECTION 2.73. Amends Subchapter B, Chapter 351, Tax Code, by adding Section 351.107, as follows: Sec. 351.107. RECORDS. Requires a municipality to maintain a record that accurately identifies the receipt and expenditure of all revenue derived from the tax imposed under this chapter. SECTION 2.74. Amends Section 352.007, Tax Code, to provide that a United States governmental entity described in Section 156.103(a) is exempt from the payment of tax authorized by this chapter. Requires a state governmental entity excepted from the tax imposed by Chapter 156 under Section 156.103(a)(1) or (a)(3) to pay the tax imposed by this chapter but entitles it to a refund of the tax paid. Makes conforming changes. SECTION 2.75. Reenacts Section 4B(e), Article 5190.6, V.T.C.S. (Development Corporation Act of 1979), as amended by Section 3, Chapter 1022, and Section 12, Chapter 1031, Acts of the 73rd Legislature, Regular Session, 1993. ARTICLE 3. APPROPRIATIONS AND PROVISIONS RELATED TO APPROPRIATIONS SECTION 3.01. (a) Provides that, in addition to other amounts appropriated by the 76th Legislature, Regular Session, 1999, for the biennium beginning September 1, 1999, and subject to the restrictions provided under Articles II and IX, House Bill No. 1, Acts of the 76th Legislature, Regular Session, 1999 (the General Appropriations Act), specifically including Rider 38, page II-66, House Bill No. 1, the Texas Department of Human Services is appropriated $12 million from the general revenue fund for fiscal year 2000 for reimbursement expenses related to increases in reimbursement rates for nursing homes under the medical assistance program and $12 million from the general revenue fund for fiscal year 2001 for the same purpose. Provides that, any unexpended balance of the appropriation made by this section for fiscal year 2000 is reappropriated to the department for fiscal year 2001 for the same purpose. (b) Authorizes the Texas Department of Human Services to transfer the appropriations made by this section to the appropriate agency or the appropriate strategy item. (c) Provides that the appropriations made by this section are contingent on the comptroller's providing of notice to the governor and the Legislative Budget Board that the comptroller has made a finding, based on a revenue estimate made before or after the adjournment sine die of the 76th Legislature, Regular Session, that sufficient revenue is estimated to be available from the general revenue fund to provide for the appropriations made by this section. SECTION 3.02. (a) Provides that, in addition to other amounts appropriated by the 76th Legislature, Regular Session, 1999, for the biennium beginning September 1, 1999, and subject to the restrictions provided under Articles II and IX, House Bill No. 1, Acts of the 76th Legislature, Regular Session, 1999 (the General Appropriations Act), the Texas Department of Human Services is appropriated $6.6 million from the general revenue fund for fiscal year 2000 for expenses related to increases in the personal needs allowance provided under Section 32.024, Human Resources Code, for a person who receives medical assistance and is a resident of a convalescent or nursing home or related institution licensed under Chapter 242, Health and Safety Code, a personal care facility, an ICF-MR facility, or another similar long-term care facility and $6.6 million from the general revenue fund for fiscal year 2001 for the same purpose. Provides that any unexpended balance of the appropriation made by this section for fiscal year 2000 is reappropriated to the department for fiscal year 2001 for the same purpose. (b) Authorizes the Texas Department of Human Services to transfer the appropriations made by this section to the appropriate agency or the appropriate strategy item. (c) Provides that the appropriations made by this section are contingent on the comptroller's providing of notice to the governor and the Legislative Budget Board that the comptroller has made a finding, based on a revenue estimate made before or after the adjournment sine die of the 76th Legislature, Regular Session, that sufficient revenue is estimated to be available from the general revenue fund to provide for the appropriations made by this section. SECTION 3.03. (a) Provides that this section applies only to an Act of the 76th Legislature, Regular Session, that contains a provision stating that the Act, or a provision of the Act, takes effect only if a specific appropriation for the implementation of the Act is provided in House Bill No. 1, Acts of the 76th Legislature, Regular Session, 1999 (General Appropriations Act). (b) Provides that, in accordance with the terms of the provision described by Subsection (a) of this section, House Bill Nos. 424, 713, 714, 820, 1172, 1188, 1341, 1652, 1833, 1939, 2085, 2145, 2148, 2202, 2307, 2573, 2641, 2719, 2992, 3174, 3504, 3517, and 3778 and Senate Bill Nos. 526, 565, 666, 708, 1287, 1423, 1651, and 1690 take effect. (c) Provides that, in accordance with the terms of the provision described by Subsection (a) of this section, House Bill No. 1933 and Senate Bill Nos. 313, 840, and 1650 do not take effect. (d) Provides that House Bill Nos. 64, 153, 628, 676, 1018, 1140, 1223, 1444, 1860, 2631, 2815, 2896, 2978, 3050, 3079, 3304, and 3757 and Senate Bill Nos. 229, 913 and 1613 take effect notwithstanding the provision described by Subsection (a) of this section: (e) Provides that the Acts identified in this section take effect, or do not take effect, as provided by this section, notwithstanding the provision described by Subsection (a) of this section. (f) Provides that if a provision described by Subsection (a) of this section is contained in a bill that is not listed in Subsection (b), (c), or (d) of this section, the provision is ineffective, and the bill takes effect in accordance with its terms notwithstanding that provision, regardless of the relative dates of enactment. ARTICLE 4. MISCELLANEOUS PROVISIONS SECTION 4.01. Repealer: Section 66.03 (Apportionment and Use of Available Fund), Education Code; Sections 481.0841 (Payments Not to be Made to Defaulting Users), 608.004 (Issuance of Warrant to Officer or Employee), and 608.012 (Transfer by Electronic Means), Government Code; and Sections 151.318(g) (entitling each person engaged in manufacturing, processing, fabricating, or repairing tangible personal property for ultimate sale to a tax refund or reduction) and (p) (defining "semiconductor fabrication cleanrooms and equipment") and 152.062(d) (requiring the comptroller to promulgate rules to govern the enforcement of this section, including standard value guidelines to assist a tax assessor-collector in determining the truth and accuracy of material facts in a joint statement), Tax Code. SECTION 4.02. (a) Authorizes the comptroller to adopt rules and take other action before January 1, 2000, that the comptroller considers necessary or appropriate to prepare for Sections 1.01, 1.02, 1.07, 1.15-1.17, 1.27, and 1.29 of this Act to take effect. Provides that this subsection does not authorize the comptroller to adopt any rule or take any action that Sections 1.01, 1.02, 1.07, 1.151.17, 1.27, and 1.29 of this Act would not authorize the comptroller to adopt or take if those sections took effect immediately. (b) Authorizes a state agency to take actions before January 1, 2000, that the agency considers necessary or appropriate to prepare for Sections 1.01, 1.02, 1.07, 1.15-1.17, 1.27, and 1.29 of this Act to take effect. Provides that this subsection does not authorize a state agency to take any action that Sections 1.01, 1.02, 1.07, 1.15-1.17, 1.27, and 1.29 of this Act would not authorize the agency to take if those sections took effect immediately. Provides that in this subsection, "state agency" does not include the comptroller. SECTION 4.03. Provides that Section 51.703, Government Code, as added by this Act, applies only to filing fees for civil cases filed and to costs on convictions occurring on or after the effective date of this Act. SECTION 4.04. Provides that the repeal of Section 608.004, Government Code, by Section 26(a) of this Act is intended only to repeal a redundant law and does not imply that on and after the effective date of Section 26 of this Act the amount an officer or employee authorizes to be deducted from the officer's or employee's compensation for the purchase of savings bonds may not actually be withheld and deducted as authorized by Section 608.003, Government Code, or the amount of an officer's or employee's compensation remaining after all authorized deductions have been made may not be paid to the officer or employee. SECTION 4.05. Makes application of Sections 1.30 and 1.31 of this Act prospective. SECTION 4.06. Authorizes the comptroller to adopt rules and take other action before September 1, 1999, that the comptroller considers necessary or appropriate to prepare for Sections 1.13, 1.30, 1.31, and 4.05 of this Act to take effect. Provides that this subsection does not authorize the comptroller to adopt any rule or take any action that Sections 1.13, 1.30, 1.31, and 4.05 of this Act would not authorize the comptroller to adopt or take if those sections took effect immediately. SECTION 4.07. Provides that a tax to which Section 2.69 of this Act applies that is not being collected on the effective date of this Act and that was adopted at an election held before January 1, 1999, takes effect on the first day of the first calendar quarter that begins after the effective date of this Act. SECTION 4.08. Provides that each change in law made to the following provisions by this Act is a clarification of existing law and does not imply that existing law may be construed as inconsistent with the law as amended by this Act: (1) Section 102.075, Code of Criminal Procedure; (2) Section 9, Texas State College and University Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance Code); (3) Section 11, Texas Public School Employees Group Insurance Act (Article 3.50-4, Insurance Code); (4) Section 326.029, Local Government Code; (5) Section 326.092, Local Government Code; (6) Section 151.317, Tax Code; (7) Section 151.318, Tax Code; (8) Section 151.3185, Tax Code; (9) Section 151.350(d), Tax Code; (10) Section 152.002, Tax Code; (11) Section 152.041, Tax Code; (12) Section 153.117, Tax Code; (13) Section 153.119, Tax Code; (14) Section 153.206, Tax Code; (15) Section 153.219, Tax Code; (16) Section 171.063, Tax Code; (17) the heading of Subchapter C, Chapter 171, Tax Code; (18) the headings of Sections 171.1015, 171.1016, and 171.107, Tax Code; (19) Section 171.110, Tax Code; (20) Section 191.085, Tax Code; and (21) Section 203.051, Tax Code. SECTION 4.09. Authorizes the comptroller of public accounts to adopt rules and take other actions before October 1, 1999, as the comptroller deems necessary or advisable to prepare for the taking effect of Article 2 of this Act. SECTION 4.10. (a) Provides that, except as provided by Subsections (b), (c), and (d) of this section, Article 2 of this Act takes effect October 1, 1999. (b) Provides that Section 2.05 of this Act takes effect January 1, 2000, and applies to reporting periods beginning on or after that date. (c) Provides that Sections 2.50 through 2.61 of this Act take effect January 1, 2000, and apply to a report originally due on or after that date. (d) Provides that Sections 2.67, 2.69, 4.07, and 4.09 of this Act take effect on the earliest date on which they may take effect under Section 39, Article III, Texas Constitution. SECTION 4.11. Makes application of Section 351.107, Tax Code, as added by this Act, prospective. SECTION 4.12. (a) Effective date: immediately upon passage except that: (1) Sections 1.13, 1.30, 1.31, and 4.05 of this Act take effect September 1, 1999; (2) Sections 1.01, 1.02, 1.07, 1.15-1.17, 1.27, and 1.29 of this Act take effect January 1, 2000; (3) Sections 1.04, 1.06, and 4.01(1) of this Act take effect only if the constitutional amendment proposed by H.J.R. No. 58, 76th Legislature, Regular Session, 1999, is approved by the voters; and (4) Article 2 of this Act takes effect as provided by Section 4.10 of this Act. (b) Provides that if H.J.R. No. 58, 76th Legislature, Regular Session, 1999, is not approved by the voters, Sections 1.04, 1.06, and 4.01(1) of this Act do not take effect. SECTION 4.13. Emergency clause.