HOUSE JOURNALThursday, May 22, 1997 HOUSE JOURNAL — 79th Day 3125 HOUSE JOURNAL SEVENTY-FIFTH LEGISLATURE, REGULAR SESSION PROCEEDINGS SEVENTY-NINTH DAY — THURSDAY, MAY 22, 1997

Thursday, May 22, 1997 HOUSE JOURNAL — 79th Day 3125

HOUSE JOURNALSEVENTY-FIFTH LEGISLATURE, REGULAR SESSION

PROCEEDINGS

SEVENTY-NINTH DAY — THURSDAY, MAY 22, 1997

The house met at 10 a.m. and was called to order by the speaker.

The roll of the house was called and a quorum was announced present(Record 483).

Present — Mr. Speaker; Alexander; Allen; Alvarado; Averitt; Bailey;Berlanga; Bonnen; Bosse; Brimer; Burnam; Carter; Chavez; Chisum; Christian;Clark; Coleman; Cook; Corte; Counts; Crabb; Craddick; Cuellar; Culberson;Danburg; Davila; Davis; Delisi; Denny; Driver; Dukes; Dunnam; Dutton;Edwards; Ehrhardt; Eiland; Elkins; Farrar; Finnell; Flores; Gallego; Galloway;Garcia; Giddings; Glaze; Goodman; Goolsby; Gray; Greenberg; Grusendorf;Gutierrez; Haggerty; Hamric; Hartnett; Hawley; Heflin; Hernandez; Hightower;Hilbert; Hilderbran; Hill; Hinojosa; Hochberg; Hodge; Holzheauser; Horn;Howard; Hunter; Hupp; Isett; Jackson; Janek; Jones, D.; Jones, J.; Junell; Kamel;Keel; Keffer; King; Krusee; Kubiak; Kuempel; Lewis, G.; Lewis, R.; Longoria;Luna; Madden; Marchant; Maxey; McCall; McClendon; McReynolds; Merritt;Moffat; Moreno; Mowery; Naishtat; Nixon; Oakley; Oliveira; Olivo; Palmer;Patterson; Pickett; Pitts; Place; Price; Puente; Rabuck; Ramsay; Rangel;Raymond; Reyna, A.; Reyna, E.; Rhodes; Roman; Sadler; Seaman; Serna;Shields; Siebert; Smith; Smithee; Solis; Solomons; Staples; Stiles; Swinford;Talton; Telford; Thompson; Tillery; Torres; Turner, B.; Turner, S.; Uher;Van de Putte; Walker; West; Williams; Williamson; Wilson; Wise; Wohlgemuth;Wolens; Woolley; Yarbrough; Zbranek.

Absent — Hirschi.

The invocation was offered by Troy McKee, pastor, Barnett ChapelMethodist Church, Kerrville, as follows:

Let us be in an attitude of prayer. At the opening of this session of thehouse of representatives, I pray you, Heavenly Father, to take into your graciouscare all members of the senate and the house of representatives, the presidingofficers, and all other officials. Endow them with a high sense of responsibilityof the office to which they have been elected. Make them immune to thetemptations of selfish interests. Fill them with knowledge and wisdom, thatthe resolutions adopted and the laws enacted may meet your standards and befor the good of our people.

Keep me and my fellow citizens from unfair criticism and fault-finding.Help us, O God, at opening and closing of these sessions to render to themembers of this body the honor and respect that is proper and to support themwith our prayers and good will.

Bless our country, bless our government, bless our people, and make ournation a blessing to the people of the world. For Jesus' sake. Amen.

page 3125

3126 75th LEGISLATURE — REGULAR SESSION

CAPITOL PHYSICIAN

The speaker recognized Representative Driver who presented Dr. TimLambert of Garland as the "Doctor for the Day."

The house welcomed Dr. Lambert, his son Bill, and intern Kristen Walland thanked them for their participation in the Physician of the Day Programsponsored by the Texas Academy of Family Physicians.

LEAVE OF ABSENCE GRANTED

The following member was granted leave of absence for the remainder oftoday because of important business:

Smithee on motion of Chisum.

HR 1046 - ADOPTED(by Laney)

Representative Goolsby moved to suspend all necessary rules to take upand consider at this time HR 1046.

The motion prevailed without objection.

The speaker laid before the house the following resolution:

HR 1046, In memory of Jack Wimberly Minor.

HR 1046 was read and was unanimously adopted by a rising vote.

On motion of Representative Rangel, the names of all the members of thehouse were added to HR 1046 as signers thereof.

INTRODUCTION OF GUESTS

The speaker recognized Representative Goolsby, who introduced membersof Jack Wimberly Minor's family: his wife, Monica; his children, Jack Edward,Garrett Stephen, and Maria Dolores; his parents, Jack and Dolores; and hisgrandmother, Martha Wimberly.

HR 927 - ADOPTED(by Clark)

Representative Clark moved to suspend all necessary rules to take up andconsider at this time HR 927.



HR 927, Honoring Mary Ethel Praetz for her service as a member of theSilver-Haired Legislature.

(Gallego in the chair)

HR 927 was read and was adopted without objection.

HR 1000 - ADOPTED(by Farrar)

Representative Farrar moved to suspend all necessary rules to take up andconsider at this time HR 1000.



The chair laid before the house the following resolution:

HR 1000, Recognizing the Urban Experience Program for its manyachievements in the field of education.


INTRODUCTION OF GUESTS

The chair recognized Representative Farrar, who introduced a group ofstudents with the Urban Experience Program.

MESSAGE FROM THE SENATE

A message from the senate was received at this time (see the addendumto the daily journal, Messages from the Senate, Message No. 1).

HCR 254 - ADOPTED(by G. Lewis)

Representative G. Lewis moved to suspend all necessary rules to take upand consider at this time HCR 254.



HCR 254, Recognizing the Very Special Arts-Texas program.

HCR 254 was read and was adopted without objection.

SCR 105 - ADOPTED(Telford - House Sponsor)

Representative Telford moved to suspend all necessary rules to take up andconsider at this time SCR 105.



SCR 105, Instructing the enrolling clerk of the house to make correctionsin HB 337.

SCR 105 was adopted without objection.

HR 1038 - ADOPTED(by Wise)

Representative Wise moved to suspend all necessary rules to take up andconsider at this time HR 1038.



HR 1038, Congratulating Ramon Zertuche, Jr., on being namedvaledictorian of Donna High School.

HR 1038 was adopted without objection.


On motion of Representative Seaman, the names of all the members of thehouse were added to HR 1038 as signers thereof.





HR 1039, Congratulating Celina Flores on being named valedictorian ofMercedes High School.







HR 1040, Congratulating Rosa I. Flores on being named valedictorian ofProgreso High School.







HR 1041, Congratulating Leandro Lopez on being named valedictorian ofWeslaco High School.








HR 1042, Congratulating Joel Torres on being named valedictorian ofPharr-San Juan-Alamo (PSJA) High School.


On motion of Representative Gutierrez, the names of all the members ofthe house were added to HR 1042 as signers thereof.





HR 1043, Congratulating Juan Carlos Salas on being named valedictorianof Pharr-San Juan-Alamo (PSJA) North High School.


On motion of Representative Gutierrez, the names of all the members ofthe house were added to HR 1043 as signers thereof.

HR 1051 - ADOPTED(by Seaman)

Representative Seaman moved to suspend all necessary rules to take up andconsider at this time HR 1051.



HR 1051, Congratulating the Honorable Rene De Alejandro on hisreelection as mayor of Robstown.


On motion of Representative Wise, the names of all the members of thehouse were added to HR 1051 as signers thereof.

(Hirschi now present)

HR 1048 - ADOPTED(by McClendon)

Representative McClendon moved to suspend all necessary rules to take upand consider at this time HR 1048.



HR 1048, Honoring playwright Sterling Houston for his contributions toSan Antonio theater.



HR 1047 - ADOPTED(by McClendon)

Representative McClendon moved to suspend all necessary rules to take upand consider at this time HR 1047.



HR 1047, Honoring officers of the San Antonio Police Department killedin the line of duty.

HR 1047 was unanimously adopted by a rising vote.

On motion of Representative Puente, the names of all the members of thehouse were added to HR 1047 as signers thereof.

HR 1036 - ADOPTED(by Price)

Representative Price moved to suspend all necessary rules to take up andconsider at this time HR 1036.



HR 1036, Honoring the House Parking Guards.


HR 1035 - ADOPTED(by Price)

Representative Price moved to suspend all necessary rules to take up andconsider at this time HR 1035.



HR 1035, Honoring the staff of the house sergeant at arms office.


INTRODUCTION OF GUEST

The chair recognized Representative Davis, who introduced Dr. DavidWilliams, executive director of the Texas African American HeritageOrganization, Inc.

HR 808, honoring the Texas African American Heritage Organization, Inc.,on its 10th anniversary, having been previously adopted, was read.

(Speaker in the chair)

BILLS AND RESOLUTIONS SIGNED BY THE SPEAKER

Notice was given at this time that the speaker had signed bills andresolutions in the presence of the house (see the addendum to the daily journal,Signed by the Speaker, House List No. 61, Senate List No. 29).


HCR 287 - ADOPTED(by Averitt)

Representative Averitt moved to suspend all necessary rules to take up andconsider at this time HCR 287.



HCR 287

WHEREAS, HB 710 has been adopted by the house of representatives andthe senate; and

WHEREAS, The bill contains technical and typographical errors that needcorrection; now, therefore, be it

RESOLVED, That the enrolling clerk of the house of representatives behereby instructed to make the following corrections:

(1) In Section 1.01 of the bill, in Section 2(11), Article 3.77, InsuranceCode, as added by the bill, strike "For the purposes of this Act, insurerincludes" and substitute "For the purposes of this article, "insurer" includes".

(2) In Section 1.01 of the bill, in Section 2(13), Article 3.77, InsuranceCode, as added by the bill, strike "Title XVII, Social Security Act (42 U.S.C.Section 1395 et seq.)" and substitute "Title XVIII, Social Security Act (42U.S.C. Section 1395c et seq.)".

(3) In Section 1.02 of the bill, in Section 4(g), Article 3.77, InsuranceCode, as amended by the bill, strike "designate one of its appointees" andsubstitute "designate one of the commissioner's [its] appointees".

(4) In Section 1.04 of the bill, in Section 6(b)(4), Article 3.77,Insurance Code, as amended by the bill, strike "provided by or through the poolto recover any amounts erroneously or improperly paid by the pool" andsubstitute "provided by or through the pool, to recover any amountserroneously or improperly paid by the pool".

(5) In Section 1.08 of the bill, in Section 10(a)(4), Article 3.77,Insurance Code, as added by the bill, strike "the individual has maintainedhealth insurance" and substitute "the individual's maintenance of healthinsurance".

(6) In Section 1.08 of the bill, in Section 10(d)(5), Article 3.77,Insurance Code, as added by the bill, strike "the person's premiums are paidfor" and substitute "has premiums that are paid for".

(7) In Section 1.08 of the bill, in Section 10(d)(6), Article 3.77,Insurance Code, as added by the bill, strike "the person".

(8) In Section 2.01 of the bill, in Section 1(d)(3)(A)(v), Article 3.51-6, Insurance Code, as added by the bill, strike "or one of the conditionsspecified in items (aa) through (dd) of Subparagraph (ii), Paragraph (A) aboveis met by the covered individual;".

(9) In Section 2.01 of the bill, in Section 1(d)(3)(A)(v), Article 3.51-6, Insurance Code, as added by the bill, at the end of that subparagraph, strikethe underlined period and substitute "[or one of the conditions specified initems (aa) through (dd) of Subparagraph (ii), Paragraph (A) above is met bythe covered individual]."

(10) In Section 2.01 of the bill, in Section 1(d)(3)(B)(i), Article 3.51-


6, Insurance Code, as added by the bill, strike "Such converted policy shall beissued without evidence of insurability if written application for and paymentof the first premium is made not later than the 31st day after the date oftermination. The converted policy" and substitute "Such a conversion policyshall be issued without evidence of insurability if a written application for thepolicy and payment of the first premium are made not later than the 31st dayafter the date of termination. The conversion policy".

(11) In Section 2.01 of the bill, in Section 1(d)(3)(B)(ii), Article 3.51-6, Insurance Code, as added by the bill, strike "Subparagraph (v), Paragraph(3)(A) above" and substitute "Subparagraph (v), Paragraph (A), of thissubdivision".

(12) In Section 2.01 of the bill, in Section 1(d)(3)(B)(ii), Article 3.51-6, Insurance Code, as added by the bill, strike "under policies issued pursuantto this subsection." and substitute "under policies issued pursuant to thisparagraph."

(13) In Section 3.01 of the bill, in Section 1(H)(4)(b), Chapter 397,Acts of the 54th Legislature, Regular Session, 1955 (Article 3.70-1, Vernon'sTexas Insurance Code), as added by the bill, strike "coverage under a self-funded or self-insured employee welfare benefit plan" and substitute "a self-funded or self-insured employee welfare benefit plan".

(14) In Section 3.01 of the bill, in Section 1(H)(4)(b), Chapter 397,Acts of the 54th Legislature, Regular Session, 1955 (Article 3.70-1, Vernon'sTexas Insurance Code), as added by the bill, strike "coverage under any groupor individual health benefit plan" and substitute "any group or individual healthbenefit plan".

(15) In Section 3.02 of the bill, in Subsection (b)(4), Article 3.70-1A,Insurance Code, as added by the bill, strike "under this paragraph" andsubstitute "under this subdivision".

(16) In Section 4.01 of the bill, in Section 9(k)(A)(5), Texas HealthMaintenance Organization Act (Article 20A.09, Vernon's Texas InsuranceCode), as added by the bill, strike "as provided under Article 3.77 of this code"and substitute "as provided under Article 3.77, Insurance Code".

(17) In Section 4.01 of the bill, in the last sentence of Section 9(k)(B),Texas Health Maintenance Organization Act (Article 20A.09, Vernon's TexasInsurance Code), as added by the bill, strike "contracts issued pursuant to thissubsection" and substitute "contracts issued pursuant to this subdivision".

(18) In Section 4.01 of the bill, in the last sentence of Section 9(k)(C),Texas Health Maintenance Organization Act (Article 20A.09, Vernon's TexasInsurance Code), as added by the bill, strike "the premium determined inaccordance with this paragraph" and substitute "the premium determined inaccordance with this subdivision".

(19) In Section 4.01 of the bill, in Section 9(l)(D), Texas HealthMaintenance Organization Act (Article 20A.09, Vernon's Texas InsuranceCode), as added by the bill, strike "necessary to implement this article" andsubstitute "necessary to implement this subsection".

HCR 287 was adopted without objection.


HB 2692 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Ehrhardt submitted the following conference committeereport on HB 2692:

Austin, Texas, May 15, 1997

Honorable Bob BullockPresident of the Senate

Honorable Pete LaneySpeaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differencesbetween the Senate and the House of Representatives on HB 2692 have metand had the same under consideration, and beg to report it back with therecommendation that it do pass in the form and text hereto attached.

Carona EhrhardtLucio HillWest MaddenShapiro HodgeCain BurnamOn the part of the Senate On the part of the House

HB 2692, A bill to be entitled An Act relating to the method of biddingfor certain contracts related to community development programs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OFTEXAS:

SECTION 1. Section 252.021, Local Government Code, is amended byadding Subsection (d) to read as follows:

(d) This chapter does not apply to the expenditure of municipal funds thatare derived from an appropriation, loan, or grant received by a municipalityfrom the federal or state government for conducting a community developmentprogram established under Chapter 373 if under the program items arepurchased under the request-for-proposal process described by Section 252.042.A municipality using a request-for-proposal process under this subsection shallalso comply with the requirements of Section 252.0215.

SECTION 2 . The importance of this legislation and the crowded conditionof the calendars in both houses create an emergency and an imperative publicnecessity that the constitutional rule requiring bills to be read on three severaldays in each house be suspended, and this rule is hereby suspended, and thatthis Act take effect and be in force from and after its passage, and it is soenacted.

Representative Ehrhardt moved to adopt the conference committee reporton HB 2692.

A record vote was requested.

The motion prevailed by (Record 484): 142 Yeas, 0 Nays, 1 Present, notvoting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Bosse; Brimer; Burnam; Carter; Chavez; Chisum; Christian; Clark; Coleman;


Cook; Corte; Counts; Crabb; Craddick; Cuellar; Culberson; Danburg; Davila;Davis; Delisi; Denny; Driver; Dukes; Dunnam; Dutton; Edwards; Ehrhardt;Eiland; Elkins; Farrar; Finnell; Flores; Gallego; Galloway; Garcia; Giddings;Glaze; Goodman; Goolsby; Gray; Greenberg; Grusendorf; Gutierrez; Haggerty;Hamric; Hartnett; Hawley; Heflin; Hernandez; Hightower; Hilbert; Hilderbran;Hill; Hinojosa; Hirschi; Hodge; Holzheauser; Horn; Howard; Hunter; Hupp;Isett; Jackson; Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel; Keffer; King;Krusee; Kubiak; Kuempel; Lewis, G.; Lewis, R.; Luna; Madden; Marchant;Maxey; McCall; McClendon; McReynolds; Merritt; Moffat; Moreno; Naishtat;Oakley; Oliveira; Olivo; Palmer; Patterson; Pickett; Pitts; Place; Price; Puente;Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.; Rhodes; Roman;Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis; Staples; Stiles; Swinford;Talton; Telford; Thompson; Tillery; Torres; Turner, B.; Turner, S.; Uher;Van de Putte; Walker; West; Williams; Williamson; Wilson; Wise; Wohlgemuth;Wolens; Woolley; Yarbrough; Zbranek.

Present, not voting — Mr. Speaker(C).

Absent, Excused — Smithee.

Absent — Hochberg; Longoria; Mowery; Nixon; Solomons.

HB 66 - HOUSE CONCURS IN SENATE AMENDMENTSTEXT OF SENATE AMENDMENTS

Representative Cuellar called up with senate amendments for considerationat this time,

HB 66, A bill to be entitled An Act relating to unfunded state mandateson political subdivisions.

On motion of Representative Cuellar, the house concurred in the senateamendments to HB 66 by (Record 485): 145 Yeas, 0 Nays, 1 Present, notvoting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Bosse; Brimer; Burnam; Carter; Chavez; Chisum; Christian; Clark; Coleman;Cook; Corte; Counts; Crabb; Craddick; Cuellar; Culberson; Danburg; Davila;Davis; Delisi; Denny; Driver; Dukes; Dunnam; Dutton; Edwards; Ehrhardt;Eiland; Elkins; Farrar; Finnell; Flores; Gallego; Galloway; Garcia; Giddings;Glaze; Goodman; Goolsby; Gray; Greenberg; Grusendorf; Gutierrez; Haggerty;Hamric; Hartnett; Hawley; Heflin; Hernandez; Hightower; Hilbert; Hilderbran;Hill; Hinojosa; Hirschi; Hochberg; Hodge; Holzheauser; Horn; Howard; Hunter;Hupp; Isett; Jackson; Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel; Keffer;King; Krusee; Kubiak; Kuempel; Lewis, G.; Longoria; Luna; Madden;Marchant; Maxey; McCall; McClendon; McReynolds; Merritt; Moffat; Moreno;Mowery; Naishtat; Oakley; Oliveira; Olivo; Palmer; Patterson; Pickett; Pitts;Place; Price; Puente; Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.;Rhodes; Roman; Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis;Solomons; Staples; Stiles; Swinford; Talton; Telford; Thompson; Tillery; Torres;Turner, B.; Turner, S.; Uher; Van de Putte; Walker; West; Williams; Williamson;Wilson; Wise; Wohlgemuth; Wolens; Woolley; Yarbrough; Zbranek.




Absent — Lewis, R.; Nixon.

STATEMENT OF VOTE

When Record No. 485 was taken, I was in the house but away from mydesk. I would have voted yes.

R. Lewis

Senate Amendment No. 1 (Senate Committee Amendment No. 1)

Amend HB 66, in Section 320.002 by striking all of subdivision (3) andrenumbering the subsequent subdivisions accordingly.


Amend HB 66, in Section 320.003 as follows:(1) On page 3, line 17, strike "or".(2) On page 3, line 19, strike "." and insert "; or

(4) affecting employee pensions and benefits."


Representative Brimer called up with senate amendments for considerationat this time,

HB 92, A bill to be entitled An Act relating to the financing of sports andcommunity venues and related infrastructure; authorizing the imposition ofcertain local taxes and the issuance of local bonds; providing penalties.

Representative Brimer moved that the house concur in the senateamendments to HB 92.

Representative S. Turner offered a substitute motion that the house notconcur and that a conference committee be requested to adjust the differencesbetween the two houses on the bill.

The substitute motion that the house not concur and that a conferencecommittee be requested was lost by (Record 486): 55 Yeas, 87 Nays, 2 Present,not voting.

Yeas — Bonnen; Bosse; Christian; Clark; Counts; Crabb; Craddick; Davis;Denny; Driver; Elkins; Finnell; Galloway; Hamric; Heflin; Hightower; Hilbert;Hilderbran; Hill; Hirschi; Hodge; Horn; Howard; Hunter; Hupp; Isett; Jackson;Kamel; Keffer; King; Kuempel; Lewis, R.; Madden; McCall; Moffat; Nixon;Patterson; Pitts; Place; Rabuck; Ramsay; Raymond; Reyna, E.; Seaman; Talton;Telford; Tillery; Turner, S.; Walker; West; Williams; Williamson; Wohlgemuth;Wolens; Zbranek.

Nays — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Brimer;Burnam; Carter; Chavez; Chisum; Coleman; Cook; Corte; Cuellar; Culberson;Danburg; Davila; Delisi; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland;


Farrar; Flores; Gallego; Garcia; Giddings; Glaze; Goodman; Goolsby; Gray;Grusendorf; Gutierrez; Haggerty; Hartnett; Hawley; Hernandez; Hinojosa;Hochberg; Holzheauser; Janek; Jones, D.; Junell; Keel; Krusee; Kubiak;Lewis, G.; Longoria; Luna; Marchant; Maxey; McClendon; Merritt; Moreno;Mowery; Naishtat; Oakley; Oliveira; Olivo; Palmer; Pickett; Price; Puente;Rangel; Reyna, A.; Roman; Sadler; Serna; Shields; Siebert; Smith; Solis;Solomons; Stiles; Swinford; Thompson; Torres; Turner, B.; Uher; Van de Putte;Wilson; Wise; Woolley; Yarbrough.

Present, not voting — Mr. Speaker(C); Greenberg.


Absent — Jones, J.; McReynolds; Rhodes; Staples.

STATEMENT OF VOTE

I was shown voting no on Record No. 486. I intended to vote yes.

Edwards

The motion to concur in the senate amendments to HB 92 prevailed by(Record 487): 88 Yeas, 56 Nays, 2 Present, not voting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Brimer;Burnam; Carter; Chavez; Coleman; Cook; Corte; Cuellar; Culberson; Danburg;Davila; Delisi; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland; Farrar;Flores; Gallego; Garcia; Giddings; Glaze; Goodman; Goolsby; Gray;Grusendorf; Gutierrez; Haggerty; Hawley; Hernandez; Hinojosa; Hochberg;Hodge; Holzheauser; Janek; Jones, D.; Jones, J.; Junell; Keel; Krusee; Kubiak;Lewis, G.; Luna; Marchant; Maxey; McClendon; McReynolds; Moreno;Mowery; Naishtat; Oakley; Oliveira; Olivo; Palmer; Pickett; Pitts; Price; Puente;Rangel; Raymond; Reyna, A.; Roman; Sadler; Serna; Shields; Siebert; Smith;Solis; Solomons; Stiles; Swinford; Thompson; Torres; Turner, B.; Van de Putte;Williamson; Wilson; Wise; Woolley; Yarbrough.

Nays — Bonnen; Bosse; Chisum; Christian; Clark; Counts; Crabb;Craddick; Davis; Denny; Driver; Elkins; Finnell; Galloway; Hamric; Hartnett;Heflin; Hightower; Hilbert; Hilderbran; Hill; Hirschi; Horn; Howard; Hunter;Hupp; Isett; Jackson; Kamel; Keffer; King; Kuempel; Lewis, R.; Longoria;Madden; McCall; Merritt; Moffat; Nixon; Patterson; Place; Rabuck; Ramsay;Reyna, E.; Seaman; Talton; Telford; Tillery; Turner, S.; Uher; Walker; West;Williams; Wohlgemuth; Wolens; Zbranek.

Present, not voting — Mr. Speaker(C); Greenberg.


Absent — Rhodes; Staples.

Senate Committee Substitute

CSHB 92, A bill to be entitled An Act relating to the financing of sportsand community venues and related infrastructure; authorizing the imposition ofcertain local taxes and the issuance of local bonds; providing penalties.



SECTION 1. Subtitle C, Title 10, Local Government Code, is amendedby adding Chapters 334 and 335 to read as follows:

CHAPTER 334. SPORTS AND COMMUNITY VENUESSUBCHAPTER A. GENERAL PROVISIONS

Sec. 334.001. DEFINITIONS. In this chapter:(1) "Approved venue project" means a sports and community venue

project that has been approved under this chapter by the voters of a municipalityor county.

(2) "Governing body" means the governing body of a municipality orthe commissioners court of a county.

(3) "Related infrastructure" includes any store, restaurant, on-site hotel,concession, automobile parking facility, area transportation facility, road,street, water or sewer facility, park, or other on-site or off-site improvement thatrelates to and enhances the use, value, or appeal of a venue, including areasadjacent to the venue, and any other expenditure reasonably necessary toconstruct, improve, renovate, or expand a venue, including an expenditure forenvironmental remediation.

(4) "Venue" means:(A) an arena, coliseum, stadium, or other type of area or

facility:(i) that is used or is planned for use for one or more

professional or amateur sports events, community events, or other sports events,including rodeos, livestock shows, agricultural expositions, promotional events,and other civic or charitable events; and

(ii) for which a fee for admission to the events ischarged or is planned to be charged;

(B) a convention center facility or related improvement suchas a convention center, civic center, civic center building, civic center hotel,auditorium, theater, opera house, music hall, exhibition hall, rehearsal hall, park,zoological park, museum, aquarium, or plaza located in the vicinity of aconvention center or facility owned by a municipality or a county;

(C) a tourist development area along an inland waterway; and(D) any other economic development project authorized by

other law.(5) "Sports and community venue project" or "venue project" means

a venue and related infrastructure that is planned, acquired, established,developed, constructed, or renovated under this chapter.

Sec. 334.002. APPLICATION TO CERTAIN MUNICIPALITIES ANDCOUNTIES. This chapter applies to a municipality with a population of morethan 1.2 million and to a county with a population of more than 2.2 milliononly if the municipality and county create a sports and community venue districtunder Chapter 335 and only to the extent the use of this chapter by the districtis necessary or convenient for the creation or operation of the district to thefullest extent authorized by Chapter 335.

Sec. 334.003. APPLICATION TO VENUE CONSTRUCTED UNDEROTHER LAW. A county or municipality may use this chapter for a venueproject relating to a venue and related infrastructure planned, acquired,


established, developed, constructed, or renovated under other law, includingSection 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon'sTexas Civil Statutes), or Subchapter E, Chapter 451, Transportation Code.

Sec. 334.004. OTHER USES OF VENUE PERMITTED. This chapterdoes not prohibit the use of a venue for an event that is not related to a purposedescribed by Section 334.001, such as a community-related event.

Sec. 334.005. SPECIFIC PERFORMANCE. (a) The legislature expresslyfinds and determines that:

(1) the presence of a professional sports team in an approved venueproject built or renovated under this chapter provides a unique value to themunicipality or county that built or renovated the project that cannot beadequately valued in money; and

(2) the municipality or county that built or renovated the approvedvenue project would suffer irreparable injury if a professional sports teambreaches its obligation to play its home games in the approved venue projectas required by an agreement between the sports team and the municipality orcounty.

(b) An agreement described by Subsection (a)(2) shall be enforceable byspecific performance in the courts of this state. A waiver of this remedy iscontrary to public policy and is unenforceable and void.

[Sections 334.006-334.020 reserved for expansion]SUBCHAPTER B. VENUE PROJECTS

Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A countyor municipality by resolution may provide for the planning, acquisition,establishment, development, construction, or renovation of a venue project if:

(1) the comptroller determines under Section 334.022 or 334.023 thatthe implementation of the resolution will not have a significant negative fiscalimpact on state revenue;

(2) to the extent required by Section 334.0235 or 334.0236, a rapidtransit authority determines that the implementation of the resolution will nothave a significant negative impact on the authority's ability to provide servicesand will not impair any existing contracts; and

(3) the resolution is approved by a majority of the qualified voters ofthe municipality or county voting at an election called and held for that purposeunder Section 334.024.

(b) The resolution must designate each venue project and each method offinancing authorized by this chapter that the municipality or county wants touse to finance a project. A resolution may designate more than one methodof financing.

Sec. 334.022. STATE FISCAL IMPACT ANALYSIS. (a) Before callingan election on the resolution under Section 334.024, the municipality or countyshall send a copy of the resolution to the comptroller.

(b) Before the 15th day after the date the comptroller receives the copyof the resolution, the comptroller shall:

(1) perform an analysis to determine if approval and implementationof the resolution will have a significant negative fiscal impact on state revenue;and

(2) provide to the municipality or county written notice of the resultsof the analysis.


(c) If the comptroller determines that implementation will have a significantnegative fiscal impact on state revenue, the written analysis required underSubsection (b)(2) must include information on how to change the resolution sothat implementation will not have a significant negative fiscal impact on staterevenue.

(d) If the comptroller does not complete the analysis and provide the noticebefore the 30th day after the date the comptroller receives the copy of theresolution, the comptroller is considered to have determined that approval andimplementation of the resolution will not have a significant negative fiscalimpact on state revenue.

Sec. 334.023. APPEAL OF COMPTROLLER DETERMINATION. (a) Ifthe comptroller determines under Section 334.022 that implementation of theresolution will have a significant negative fiscal impact on state revenue, themunicipality or county may contest the finding by filing an appeal with thecomptroller not later than the 10th day after the date the municipality or countyreceives the written notice under Section 334.022.

(b) Before the 11th day after the date the comptroller receives the appealunder Subsection (a), the comptroller shall perform a new analysis to determineif implementation of the resolution will have a significant negative fiscal impacton state revenue and provide to the municipality or county written notice ofthe results of the analysis.

(c) If the comptroller again determines that implementation will have asignificant negative fiscal impact on state revenue, the written analysis requiredunder Subsection (b) must include additional information on how to change theresolution so that implementation will not have a significant negative fiscalimpact on state revenue.

(d) If the comptroller does not comply with Subsection (b) before the 30thday after the date the comptroller receives the appeal or request for information,the comptroller is considered to have determined that approval andimplementation of the resolution will not have a significant negative fiscalimpact on state revenue.

Sec. 334.0235. TRANSPORTATION AUTHORITY IMPACT ANALYSIS.(a) If the resolution contains a proposed sales and use tax under SubchapterD, and imposition of the tax would result in the reduction of the tax rate of arapid transit authority created under Chapter 451, Transportation Code, or aregional transportation authority created under Chapter 452, TransportationCode, the municipality or county shall send a copy of the resolution to theauthority before calling an election on the resolution under Section 334.024.

(b) Before the 30th day after the date the rapid transit authority receivesthe copy of the resolution, the authority shall:

(1) perform an analysis to determine if implementation of the proposedsales and use tax and the resulting reduction in the authority's tax rate will:

(A) have a significant negative impact on the authority'sability to provide services; or

(B) impair any existing contracts; and(2) provide to the municipality or county written notice of the results

of the analysis.(c) If the rapid transit authority determines that implementation of the

resolution will have a significant negative impact on the authority's ability to


provide services or will impair any existing contracts, the written analysisrequired under Subsection (b)(2) must include information on how to changethe resolution so that implementation will not have a significant negative impacton the authority's ability to provide service or will not impair any existingcontracts.

(d) If the rapid transit authority does not complete the analysis and providethe notice before the 30th day after the date the authority receives the copy ofthe resolution, the authority is considered to have determined thatimplementation of the resolution will not have a significant negative impact onthe authority's ability to provide services and will not impair any existingcontracts.

Sec. 334.0236. APPEAL OF AUTHORITY DETERMINATION. (a) Ifa rapid transit authority determines under Section 334.0235 that implementationof the resolution will have a significant negative impact on the authority's abilityto provide services or will impair an existing contract, the municipality orcounty may contest the finding by filing an appeal with the authority not laterthan the 10th day after the date the municipality or county receives the writtennotice under Section 334.0235.

(b) Before the 11th day after the date the rapid transit authority receivesthe appeal under Subsection (a), the authority shall perform a new analysis todetermine if implementation of the resolution will have a significant negativeimpact on the authority's ability to provide services or will impair an existingcontract and provide to the municipality or county written notice of the resultsof the analysis.

(c) If the authority again determines that implementation will have asignificant negative impact on the authority's ability to provide services or willimpair an existing contract, the written analysis required under Subsection (b)must include additional information on how to change the resolution so thatimplementation will not have a significant negative impact on the authority'sability to provide services and will not impair an existing contract.

(d) If the rapid transit authority does not comply with Subsection (b) beforethe 11th day after the date the authority receives the appeal or request forinformation, the authority is considered to have determined that approval andimplementation of the resolution will not have a significant negative impact onthe authority's ability to provide services and will not impair any existingcontracts.

Sec. 334.024. ELECTION. (a) If the comptroller determines under Section334.022 or 334.023 that the implementation of the resolution will not have asignificant negative fiscal impact on state revenue, and, if applicable, the rapidtransit authority determines under Section 334.0235 or 334.0236 that theimplementation will not have a significant negative impact on the authority'sability to provide service and will not impair any existing contracts, thegoverning body of the municipality or county may order an election on thequestion of approving and implementing the resolution.

(b) The order calling the election must:(1) allow the voters to vote separately on each venue project;(2) designate the venue project;(3) designate each method of financing authorized by this chapter that


the municipality or county wants to use to finance the project and the maximumrate of each method; and

(4) allow the voters to vote, in the same proposition or in separatepropositions, on each method of financing authorized by this chapter that themunicipality or county wants to use to finance the project and the maximumrate of each method.

(c) The ballot at the election held under this section must be printed topermit voting for or against the proposition: "Authorizing ________ (insertname of municipality or county) to _______ (insert description of venue project)and to impose a ________ tax at the rate of ________ (insert the type of taxand the maximum rate of the tax) for the purpose of financing the venueproject."

(d) If more than one method of financing is to be voted on in oneproposition, the ballot must be printed to permit voting for or against theproposition: "Authorizing ________ (insert name of municipality or county)to ________ (insert description of venue project) and to impose a ________tax at the rate of _______ (insert each type of tax and the maximum rate ofeach tax) for the purpose of financing the venue project."

(e) The Election Code governs an election held under this chapter.[Sections 334.025-334.040 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIESSec. 334.041. GENERAL POWERS. (a) A municipality or county may

perform any act necessary to the full exercise of the municipality's or county'spowers under this chapter.

(b) A municipality or county may acquire, sell, lease, convey, or otherwisedispose of property or an interest in property, including an approved venueproject, under terms and conditions determined by the municipality or county.In a transaction with another public entity that is made as provided by thissubsection, the public purpose found by the legislature under Section 334.044is adequate consideration for the municipality or county and the other publicentity.

(c) A municipality or county may contract with a public or private person,including a sports team, club, organization, or other entity to:

(1) plan, acquire, establish, develop, construct, or renovate an approvedvenue project; or

(2) perform any other act the municipality or county is authorized toperform under this chapter, other than conducting an election under this chapter.

(d) A municipality or county may contract with or enter into an interlocalagreement with a school district, junior or community college district, or aninstitution of higher education as defined by Section 61.003, Education Code,for a purpose described by Subsection (c). The contract or interlocal agreementmay provide for joint ownership and operation or joint use.

(e) The competitive bidding laws, including Chapter 271, do not apply tothe planning, acquisition, establishment, development, construction, orrenovation of an approved venue project under this chapter.

(f) A municipality or county may not use revenue derived from ad valoremtaxes to plan, acquire, establish, develop, construct, operate, maintain, orrenovate an approved venue project.


Sec. 334.0415. USE OF FINANCING FOR CERTAIN PROJECTS.Notwithstanding any other provision of this chapter, a municipality or county,or an entity created by or acting on behalf of or in conjunction with amunicipality or county, that contracts with a professional sports team or theteam's owner or representative for the team to relocate and play at an arena,coliseum, or stadium in the municipality or county may not use any methodof financing authorized by this chapter to finance the acquisition or constructionof the arena, coliseum, or stadium if the team is playing under an existingcontract and is located in another arena, coliseum, or stadium owned by adifferent municipality or county in this state unless the governing body of thatdifferent municipality or county consents to the contract.

Sec. 334.042. VENUE PROJECT FUND. (a) A municipality or countyin which an approved venue project is located shall establish by resolution afund known as the venue project fund. The municipality or county shallestablish separate accounts within the fund for the various revenue sources.

(b) The municipality or county shall deposit into the venue project fund:(1) the proceeds of any tax imposed by the municipality or county

under this chapter;(2) all revenue from the sale of bonds or other obligations by the

municipality or county under this chapter; and(3) any other money required by law to be deposited in the fund.

(c) The municipality or county may deposit into the venue project fund:(1) money received by the municipality or county from innovative

funding concepts such as the sale or lease of luxury boxes or the sale oflicenses for personal seats; and

(2) any other revenue received by the municipality or county from theapproved venue project, including stadium rental payments and revenue fromconcessions and parking.

(d) The municipality or county may use money in the venue project fundto:

(1) reimburse or pay the costs of planning, acquiring, establishing,developing, constructing, or renovating one or more approved venue projectsin the municipality or county;

(2) pay the principal of, interest on, and other costs relating to bondsor other obligations issued by the municipality or county or to refund bonds,notes, or other obligations; or

(3) pay the costs of operating or maintaining one or more approvedvenue projects.

(e) Money deposited into the venue project fund, including moneydeposited under Subsection (c), is the property of the municipality or countydepositing the money.

Sec. 334.0425. BOOKS, RECORDS, AND PAPERS. The books, records,and papers of the municipality or county relating to an approved venue projectand the revenue used to finance the project are public information and subjectto disclosure under Chapter 552, Government Code.

Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) Amunicipality or county in which an approved venue project is located may issuebonds, including revenue bonds and refunding bonds, or other obligations topay the costs of the approved venue project.


(b) The bonds or other obligations and the proceedings authorizing thebonds or other obligations shall be submitted to the attorney general for reviewand approval as required by Article 3, Chapter 53, Acts of the 70th Legislature,2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes).

(c) The bonds or other obligations must be payable from and secured bythe revenues in the venue project fund.

(d) The bonds or other obligations may mature serially or otherwise notmore than 30 years from their date of issuance.

(e) The bonds or other obligations are not a debt of and do not create aclaim for payment against the revenue or property of the municipality or countyother than the revenue sources pledged and an approved venue project forwhich the bonds are issued.

Sec. 334.044. PUBLIC PURPOSE OF VENUE PROJECT. (a) Thelegislature finds for all constitutional and statutory purposes that an approvedvenue project is owned, used, and held for public purposes by the municipalityor county.

(b) Section 25.07(a), Tax Code, does not apply to a leasehold or otherpossessory interest granted by the municipality or county while the municipalityor county owns the venue project.

(c) The venue project is exempt from taxation under Section 11.11, TaxCode, while the municipality or county owns the venue project.

(d) If approval and implementation of a resolution under this chapterresults in the removal from a school district's property tax rolls of real propertyotherwise subject to ad valorem taxation, the operator of the approved venueproject located on that property shall pay to the school district on January 1of each year in which the project is in operation and in which the real propertyis exempt from ad valorem taxation an amount equal to the ad valorem taxesthat would otherwise have been levied for the preceding tax year on that realproperty by the school district, without including the value of anyimprovements. This subsection does not apply if the operator of the projectis a political subdivision of this state.

[Sections 334.045-334.080 reserved for expansion]SUBCHAPTER D. SALES AND USE TAX

Sec. 334.081. SALES AND USE TAX. (a) A municipality by ordinanceor a county by order may impose a sales and use tax under this subchapter.

(b) A municipality by ordinance or a county by order may repeal ordecrease the rate of a tax imposed under this subchapter.

(c) A municipality or county may impose a tax under this subchapter onlyif:

(1) an approved venue project is or is planned to be located in themunicipality or county; and

(2) the tax is approved at an election held under Section 334.024.Sec. 334.082. TAX CODE APPLICABLE. (a) Chapter 321, Tax Code,

governs the imposition, computation, administration, collection, and remittanceof a municipal tax authorized under this subchapter except as inconsistent withthis chapter.

(b) Chapter 323, Tax Code, governs the imposition, computation,administration, collection, and remittance of a county tax authorized under thissubchapter except as inconsistent with this chapter.


(c) Sections 321.101(b), 321.506, and 323.101(b), Tax Code, do not applyto the tax authorized by this subchapter.

(d) The tax imposed by this subchapter is in addition to a tax imposedunder other law, including Chapters 321 and 323, Tax Code.

Sec. 334.083. TAX RATE. (a) The rate of a tax adopted under thissubchapter must be one-eighth, one-fourth, three-eighths, or one-half of onepercent.

(b) The ballot proposition at the election held to adopt the tax must specifythe rate of the tax to be adopted.

Sec. 334.084. RATE INCREASE. (a) A municipality or county that hasadopted a sales and use tax under this subchapter at a rate of less than one-half of one percent may by ordinance or order increase the rate of the tax ifthe increase is approved by a majority of the registered voters of thatmunicipality or county voting at an election called and held for that purpose.

(b) The tax may be increased under Subsection (a) in one or moreincrements of one-eighth of one percent to a maximum of one-half of onepercent.

(c) The ballot for an election to increase the tax shall be printed to permitvoting for or against the proposition: "The adoption of a sales and use tax forthe purpose of financing _______ (insert description of venue project) at therate of _______ of one percent (insert one-fourth, three-eighths, or one-half, asappropriate)."

Sec. 334.085. IMPOSITION IN MUNICIPALITY OR COUNTY WITHOTHER TAXING AUTHORITY. (a) In this section, "taxing authority" means:

(1) a rapid transit authority created under Chapter 451, TransportationCode;

(2) a regional transportation authority created under Chapter 452,Transportation Code;

(3) a crime control district created under the Crime Control andPrevention District Act (Article 2370c-4, Vernon's Texas Civil Statutes); or

(4) an industrial development corporation created under Section 4A or4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's TexasCivil Statutes).

(b) If a municipality or county is included within the boundaries of anothertaxing authority and the adoption or increase of the tax under this subchapterwould result in a combined tax rate of more than two percent in any locationin the municipality or county, the election to approve or increase the tax underthis chapter is to be treated for all purposes as an election to reduce the taxrate of the other taxing authority to the highest rate that will not result in acombined tax rate of more than two percent in any location in the municipalityor county. If the municipality or county is located within the boundaries ofonly one taxing authority, and the adoption or increase of the tax under thissubchapter will result in a decrease of the tax rate of the taxing authority, theballot at an election to impose or increase the tax must clearly state that theadoption or increase of the tax will result in a reduction of the tax rate of thetaxing authority. If the municipality or county is included within the boundariesof more than one taxing authority, the election to impose or increase the taxunder this subchapter must allow the voters to choose which taxing authority'stax will be reduced.


(c) The rate of the tax imposed by the other taxing authority is increasedwithout further action of the board of the authority or the voters of theauthority, municipality, or county on the date on which the tax imposed underthis subchapter is decreased or expires, but only to the extent that any taximposed by the authority was reduced under this section when the tax imposedby the municipality or county was adopted or increased.

(d) This section does not permit a taxing authority to impose taxes atdifferential tax rates within the territory of the authority.

Sec. 334.086. IMPOSITION OF TAX. (a) If the municipality or countyadopts the tax, a tax is imposed on the receipts from the sale at retail of taxableitems in the municipality or county at the rate approved at the election.

(b) There is also imposed an excise tax on the use, storage, or otherconsumption in the municipality or county of tangible personal propertypurchased, leased, or rented from a retailer during the period that the tax iseffective in the municipality or county. The rate of the excise tax is the sameas the rate of the sales tax portion of the tax and is applied to the sale priceof the tangible personal property.

Sec. 334.087. EFFECTIVE DATE OF TAX. The adoption of the tax orthe change of the tax rate takes effect on the first day of the first calendarquarter occurring after the expiration of the first complete quarter occurring afterthe date on which the comptroller receives a notice of the results of the electionadopting or increasing the tax or of the ordinance or order decreasing the tax.

Sec. 334.088. DEPOSIT OF TAX REVENUES. Revenue from the taximposed under this subchapter shall be deposited in the venue project fund ofthe municipality or county imposing the tax.

Sec. 334.089. ABOLITION OF TAX. (a) A sales and use tax imposedunder this subchapter may not be collected after the last day of the first calendarquarter occurring after notification to the comptroller by the municipality orcounty that the municipality or county has abolished the tax or that all bondsor other obligations of the municipality or county that are payable in whole orin part from money in the venue project fund, including any refunding bondsor other obligations, have been paid in full or the full amount of money,exclusive of guaranteed interest, necessary to pay in full the bonds and otherobligations has been set aside in a trust account dedicated to the payment ofthe bonds and other obligations.

(b) The municipality or county shall notify the comptroller of theexpiration of the tax not later than the 60th day before the expiration date.

[Sections 334.090-334.100 reserved for expansion]SUBCHAPTER E. SHORT-TERM MOTOR VEHICLE RENTAL TAX

Sec. 334.101. DEFINITIONS. (a) In this subchapter:(1) "Motor vehicle" means a self-propelled vehicle designed principally

to transport persons or property on a public roadway and includes a passengercar, van, station wagon, sports utility vehicle, and truck. The term does notinclude a:

(A) trailer, semitrailer, house trailer, truck having amanufacturer's rating of more than one-half ton, or road-building machine;

(B) device moved only by human power;(C) device used exclusively on stationary rails or tracks;


(D) farm machine; or(E) mobile office.

(2) "Rental" means an agreement by the owner of a motor vehicle toauthorize for not longer than 30 days the exclusive use of that vehicle toanother for consideration.

(3) "Place of business of the owner" means an established outlet,office, or location operated by the owner of a motor vehicle or the owner'sagent or employee for the purpose of renting motor vehicles and includes anylocation at which three or more rentals are made during a year.

(b) Except as provided by Subsection (a), words used in this subchapterand defined by Chapter 152, Tax Code, have the meanings assigned by Chapter152, Tax Code.

Sec. 334.102. TAX AUTHORIZED. (a) A municipality by ordinance ora county by order may impose a tax on the rental in the municipality or countyof a motor vehicle.

(b) A municipality by ordinance or a county by order may repeal ordecrease the rate of a tax imposed under Subsection (a).



(2) the tax is approved at an election held under Section 334.024.Sec. 334.103. SHORT-TERM RENTAL TAX. (a) Except as provided by

Subsection (b), the tax authorized by this subchapter is imposed at a rate inincrements of one-eighth of one percent, not to exceed 10 percent, on the grossrental receipts from the rental in the municipality or county of a motor vehicle.

(b) In a municipality with a population of more than 1.2 million, or acounty with a population of more than 2.2 million, the tax authorized by thissubchapter is imposed at a rate in increments of one-eighth of one percent, notto exceed five percent, on the gross rental receipts from the rental in themunicipality or county of a motor vehicle.

(c) The ballot proposition at the election held to adopt the tax must specifythe maximum rate of the tax to be adopted.

Sec. 334.104. RATE INCREASE. (a) A municipality or county that hasadopted a tax under this subchapter at a rate of less than five percent or 10percent, as applicable, may by ordinance or order increase the rate of the taxto a maximum of five percent or 10 percent, as applicable, if the increase isapproved by a majority of the registered voters of that municipality or countyvoting at an election called and held for that purpose.

(b) The ballot for an election to increase the rate of the tax shall be printedto permit voting for or against the proposition: "The increase of the motorvehicle rental tax for the purpose of financing _____ (insert description ofvenue project) to a maximum rate of _______ percent (insert new maximumrate not to exceed five percent or 10 percent, as applicable)."

Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motorvehicle subject to the tax imposed under this subchapter shall collect the taxfor the benefit of the municipality or county.

(b) The owner shall add the short-term motor vehicle rental tax imposed


by the municipality or county under this subchapter, if applicable, and the grossrental receipts tax imposed by Chapter 152, Tax Code, to the rental charge, andthe sum of the taxes is a part of the rental charge, is a debt owed to the motorvehicle owner by the person renting the vehicle, and is recoverable at law inthe same manner as the rental charge.

Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motorvehicle occurs in the municipality or county in which transfer of possession ofthe motor vehicle occurs.

Sec. 334.107. EXEMPTIONS APPLICABLE. The exemptions provided bySubchapter E, Chapter 152, Tax Code, apply to the tax authorized by thissubchapter.

Sec. 334.108. NOTICE OF TAX. Each bill or other receipt for a rentalsubject to the tax imposed under this subchapter must contain a statement in aconspicuous location stating: "_______ (insert name of taxing municipality orcounty) requires that an additional tax of ____ percent (insert rate of tax) beimposed on each motor vehicle rental for the purpose of financing ______(describe approved venue project)."

Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. Allgross receipts of an owner of a motor vehicle from the rental of the motorvehicle are presumed to be subject to the tax imposed by this subchapter, exceptfor gross receipts for which the owner has accepted in good faith a properlycompleted exemption certificate.

Sec. 334.110. RECORDS. (a) The owner of a motor vehicle used forrental purposes shall keep for four years records and supporting documentscontaining the following information on the amount of:

(1) gross rental receipts received from the rental of the motor vehicle;and

(2) the tax imposed under this subchapter and paid to the municipalityor county on each motor vehicle used for rental purposes by the owner.

(b) Mileage records are not required.Sec. 334.111. FAILURE TO KEEP RECORDS. (a) An owner of a motor

vehicle commits an offense if the owner fails to make and retain completerecords for the four-year period required by Section 334.110.

(b) An offense under this section is a misdemeanor punishable by a fineof not less than $25 or more than $500.

Sec. 334.112. EFFECTIVE DATE AND ENDING DATE OF TAX. (a)A tax imposed under this subchapter or a change in the tax rate takes effecton the date prescribed by the ordinance or order imposing the tax or changingthe rate.

(b) A municipality or county may impose a tax under this subchapter onlyif the municipality or county issues bonds or other obligations under Section334.043 before the first anniversary of the date the tax is imposed. Themunicipality or county may not impose the tax after those bonds or otherobligations are paid in full.

Sec. 334.113. TAX COLLECTION; PENALTY. (a) The owner of amotor vehicle required to collect the tax imposed under this subchapter shallreport and send the taxes collected to the municipality or county as providedby the ordinance or order imposing the tax.


(b) A municipality by ordinance or a county by order may prescribepenalties, including interest charges, for failure to keep records required by themunicipality or county, to report when required, or to pay the tax when due.

(c) The attorney acting for the municipality or county may bring suitagainst a person who fails to collect a tax under this subchapter and to pay itover to the municipality or county as required.

Sec. 334.114. COLLECTION PROCEDURES ON PURCHASE OFMOTOR VEHICLE RENTAL BUSINESS. (a) If the owner of a motorvehicle rental business that makes rentals subject to the tax imposed by thissubchapter sells the business, the successor to the seller or the seller's assigneeshall withhold an amount of the purchase price sufficient to pay the amountof tax due until the seller provides a receipt by a person designated by themunicipality or county to provide the receipt showing that the amount has beenpaid or a certificate showing that no tax is due.

(b) The purchaser of a motor vehicle rental business who fails to withholdan amount of the purchase price as required by this section is liable for theamount required to be withheld to the extent of the value of the purchase price.

(c) The purchaser of a motor vehicle rental business may request that theperson designated by the municipality or county to provide a receipt underSubsection (a) issue a certificate stating that no tax is due or issue a statementof the amount required to be paid before a certificate may be issued. Theperson designated by the municipality or county shall issue the certificate orstatement not later than the 60th day after the date the person receives therequest.

(d) If the person designated by the municipality or county to provide areceipt under Subsection (a) fails to issue the certificate or statement withinthe period provided by Subsection (c), the purchaser is released from theobligation to withhold the purchase price or pay the amount due.

Sec. 334.115. DEPOSIT OF TAX REVENUE. Revenue from the taximposed under this subchapter shall be deposited in the venue project fund ofthe municipality or county imposing the tax.

[Sections 334.116-334.150 reserved for expansion]SUBCHAPTER F. ADMISSIONS TAX

Sec. 334.151. TAX AUTHORIZED. (a) A municipality by ordinance ora county by order may impose a tax on each ticket sold as admission to anevent held at an approved venue project in the municipality or county for whichthe municipality or county has issued bonds to plan, acquire, establish, develop,construct, or renovate the approved venue project.

(b) The municipality or county may not impose the tax under thissubchapter for admission to an event at a venue that is not an approved venueproject or for which the municipality or county has not issued bonds to plan,acquire, establish, develop, construct, or renovate the approved venue project.


(1) an approved venue project is or will be located in the municipalityor county; and

(2) the tax is approved at an election held under Section 334.024.Sec. 334.152. TAX RATE. (a) The tax authorized by this subchapter is


imposed at the tax rate on each ticket sold as admission to an event held atan approved venue.

(b) The amount of the tax may be imposed at any uniform percentage notto exceed 10 percent of the price of the ticket sold as admission to an eventheld at an approved venue.


(d) The municipality by ordinance or the county by order may repeal ordecrease the rate of the tax imposed under this subchapter.

Sec. 334.153. RATE INCREASE. (a) A municipality or county that hasadopted a tax under this subchapter at the rate of less than the maximumpercentage allowed by this subchapter may by ordinance or order increase therate of the tax to the maximum percentage allowed by this subchapter if theincrease is approved by a majority of the registered voters of that municipalityor county voting at an election called and held for that purpose.

(b) The ballot for an election to increase the rate of the tax shall be printedto permit voting for or against the proposition: "The increase of the admissionstax for the purpose of financing _______ (insert description of venue project)to a maximum rate of ________ percent of the price of each ticket sold asadmission to an event held at an approved venue (insert new maximum ratenot to exceed 10 percent of the price of each ticket sold as admission to anevent held at an approved venue)."

Sec. 334.154. COLLECTION. (a) The municipality by ordinance or thecounty by order may require the owner or lessee of an approved venue projectin the municipality or county to collect the tax for the benefit of themunicipality or county.

(b) An owner or lessee required to collect the tax under this section shalladd the tax to the admissions price, and the tax is a part of the admissions price,a debt owed to the owner or lessee of the approved venue project by the personadmitted, and recoverable at law in the same manner as the admissions charge.

(c) The tax imposed by this subchapter is not an occupation tax imposedon the owner or lessee of the approved venue project.

Sec. 334.155. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) Atax imposed under this subchapter or a change in a tax rate takes effect onthe date prescribed by the ordinance or order imposing the tax or changing therate.

(b) A municipality or county may impose a tax under this subchapter onlyif the municipality or county issues bonds or other obligations under Section334.043. The municipality or county may impose the tax only while thosebonds or other obligations are outstanding and unpaid.

Sec. 334.156. COLLECTION OF TAX. (a) A person required to collecta tax imposed under this subchapter shall report and send the taxes to themunicipality or county as provided by the municipality or county imposing thetax.

(b) A municipality by ordinance or a county by order may prescribepenalties, including interest charges, for failure to keep records required by themunicipality or county, to report when required, or to pay the tax when due.The attorney acting for the municipality or county may bring suit against a


person who fails to collect a tax under this subchapter and to pay it over tothe municipality or county as required.

(c) A municipality by ordinance or a county by order may permit a personwho is required to collect a tax under this subchapter to retain a percentage ofthe amount collected and required to be reported as reimbursement to the personfor the costs of collecting the tax. The municipality or county may providethat the person may retain the amount only if the person pays the tax and filesreports as required by the municipality or county.


[Sections 334.158-334.200 reserved for expansion]SUBCHAPTER G. PARKING TAX

Sec. 334.201. EVENT PARKING TAX. (a) A municipality by ordinanceor a county by order may impose a tax on each motor vehicle parking in aparking facility of an approved venue project.

(b) The municipality or county may impose the tax during a periodbeginning not more than three hours before and ending not more than threehours after the time an event in an approved venue project is scheduled tobegin. The municipality or county may not impose the tax under thissubchapter during any other time.

(c) A municipality or county may impose a tax under this subchapter onlyif the tax is approved at an election held under Section 334.024.

Sec. 334.202. TAX RATE. (a) The municipality by ordinance or thecounty by order may provide that the tax is imposed at a flat amount on eachparked motor vehicle or is imposed as a percentage of the amount charged forevent parking by the owner or lessee of the parking facility.

(b) Regardless of the method of imposition, the amount of the tax may notexceed $3 for each motor vehicle.


(d) The municipality by ordinance or the county by order may repeal ordecrease the rate of the tax imposed under this section.

Sec. 334.203. RATE INCREASE. (a) A municipality or county that hasadopted a tax under this subchapter at a rate of less than $3 a vehicle may byordinance or order increase the rate of the tax to a maximum of $3 a vehicleif the increase is approved by a majority of the registered voters of thatmunicipality or county voting at an election called and held for that purpose.

(b) The ballot for an election to increase the rate of the tax shall be printedto permit voting for or against the proposition: "The increase of the parkingtax for the purpose of financing _______ (insert description of venue project)to a maximum rate of _______ (insert new maximum rate not to exceed $3)."

Sec. 334.204. COLLECTION. (a) The municipality by ordinance or thecounty by order may require the owner or lessee of a parking facility to collectthe tax for the benefit of the municipality or county.

(b) An owner or lessee required to collect the tax under this section shalladd the tax to the parking charge, and the tax is a part of the parking charge,a debt owed to the parking facility owner or lessee by the person parking, and


recoverable at law in the same manner as the parking charge.(c) The tax imposed by this subchapter is not an occupation tax imposed

on the owner or lessee of the parking facility.Sec. 334.205. EFFECTIVE DATE AND ENDING DATE OF TAX. (a)

A tax imposed under this subchapter or a change in the tax rate takes effecton the date prescribed by the ordinance or order imposing the tax or changingthe rate.



(b) A municipality by ordinance or a county by order may prescribepenalties, including interest charges, for failure to keep records required by themunicipality or county, to report when required, or to pay the tax when due.The attorney acting for the municipality or county may bring suit against aperson who fails to collect a tax under this subchapter and to pay it over tothe municipality or county as required.



[Sections 334.208-334.250 reserved for expansion]SUBCHAPTER H. HOTEL OCCUPANCY TAXES

Sec. 334.251. DEFINITION. In this subchapter, "hotel" has the meaningassigned by Section 156.001, Tax Code.

Sec. 334.252. APPLICATION OF SUBCHAPTER. (a) This subchapterapplies only to:

(1) a municipality with a population of less than 200,000 whoseboundaries are located within two counties;

(2) a county contiguous to the Gulf of Mexico or a bay or inletopening into the gulf and bordering the United Mexican States;

(3) a county adjacent to a county described by Subdivision (2) thatalso borders the United Mexican States;

(4) a municipality located within the boundaries of a county describedby Subdivision (2) or (3); and

(5) an eligible entity described by Subsection (b).(b) An eligible entity means a municipality with a population of more than

1.2 million or a county with a population of more than 2.2 million if themunicipality and the county have joined together to form a sports andcommunity venue district under Chapter 335 or a municipality with a population


of less than 200,000 in the boundary of which is contained a professional sportsfacility with a seating of at least 60,000 seats that has been in existence andused for professional sports activities for at least 25 years.

Sec. 334.253. IMPOSITION OF TAX. (a) A municipality by ordinanceor a county by order may impose a tax on a person who, under a lease,concession, permit, right of access, license, contract, or agreement, pays for theuse or possession or for the right to the use or possession of a room that is ina hotel, costs $2 or more each day, and is ordinarily used for sleeping.

(b) A municipality or county may impose a tax under this subchapter onlyif:


(2) the tax is approved at an election held under Section 334.024.Sec. 334.254. TAX CODE APPLICABLE. (a) Sections 351.002(c),

351.004, 351.0041, 351.005, and 351.006, Tax Code, govern the imposition,computation, administration, collection, and remittance of a municipal taxauthorized under this subchapter except as inconsistent with this subchapter.

(b) Sections 352.002(c), 352.004, 352.0041, 352.005, and 352.007, TaxCode, govern the imposition, computation, administration, collection, andremittance of a county tax authorized under this subchapter except asinconsistent with this subchapter.

(c) The tax imposed by this subchapter is in addition to a tax imposedunder Chapter 351 or 352, Tax Code.

Sec. 334.255. TAX RATE. (a) The tax authorized by this subchapter maybe imposed by a municipality or county described by Sections 334.252(a)(1)-(4) at any rate not to exceed five percent of the price paid for a room in a hotelor by an eligible entity described by Section 334.252(b) at any rate not toexceed two percent of the price paid for a room in a hotel.

(b) The ballot proposition at the election held to adopt the tax must specifythe maximum rate of the tax to be adopted.

Sec. 334.256. RATE INCREASE. (a) A municipality or county that hasadopted a tax under this subchapter at a rate of less than five percent or twopercent, as applicable, may by ordinance or order increase the rate of the taxto the maximum applicable rate if the increase is approved by a majority ofthe registered voters of that municipality or county voting at an election calledand held for that purpose.

(b) The ballot for an election to increase the rate of the tax shall be printedto permit voting for or against the proposition: "The increase of the hoteloccupancy tax for the purpose of financing __________ (insert description ofvenue project) to a maximum rate of ___________ percent (insert newmaximum applicable rate)."

Sec. 334.257. NOTICE OF TAX. Each bill or other receipt for a hotelcharge subject to the tax imposed under this subchapter must contain astatement in a conspicuous location stating: "_____________ (insert name oftaxing municipality or county) requires that an additional tax of _____ percent(insert rate of tax) be imposed on each hotel charge for the purpose of financinga venue project."

Sec. 334.258. EFFECTIVE DATE AND ENDING DATE OF TAX. (a)A tax imposed under this subchapter or a change in the tax rate takes effect


on the date prescribed by the ordinance or order imposing the tax or changingthe rate.

(b) A municipality or county may impose a tax under this subchapter onlyif the municipality or county issues bonds or other obligations under Section334.043 before the first anniversary of the date the tax is imposed. Themunicipality or county may impose the tax only while those bonds or otherobligations are outstanding and unpaid.

Sec. 334.259. DEPOSIT OF TAX REVENUE. Revenue from the taximposed under this subchapter shall be deposited in the venue project fund ofthe municipality or county imposing the tax.[Sections 334.260-334.300 reserved for expansion]SUBCHAPTER I. FACILITY USE TAX

Sec. 334.301. DEFINITION. In this subchapter, "major league team"means a team that is a member of the National Football League, NationalBasketball Association, or National Hockey League or a major league baseballteam or any other professional team.

Sec. 334.302. TAX AUTHORIZED. (a) A municipality by ordinance ora county by order may impose a facility use tax on each member of a majorleague team that plays a professional sports game in an approved venue projectin the municipality or county for which the municipality or county has issuedbonds to plan, acquire, establish, develop, construct, or renovate the approvedvenue project.

(b) The municipality or county may not impose the facility use tax underthis subchapter for a professional sports game at a venue that is not an approvedvenue project or for which the municipality or county has not issued bonds toplan, acquire, establish, develop, construct, or renovate the approved venueproject.


(1) an approved venue project is or will be located in the municipalityor county; and

(2) the tax is approved at an election held under Section 334.024.Sec. 334.303. TAX RATE. (a) The tax authorized by this subchapter is

imposed at the tax rate on each member of the professional sports team foreach professional game the member plays at the approved venue project.

(b) The amount of the tax may be imposed at any uniform monetaryamount not to exceed $5,000 a game.


(d) The municipality by ordinance or the county by order may repeal ordecrease the rate of the tax imposed under this subchapter.

Sec. 334.304. RATE INCREASE. (a) A municipality or county that hasadopted a tax under this subchapter at the rate of less than $5,000 a gamemay by ordinance or order increase the rate of the tax to a maximum of $5,000a game if the increase is approved by a majority of the registered voters of thatmunicipality or county voting at an election called and held for that purpose.

(b) The ballot for an election to increase the rate of the tax shall be printedto permit voting for or against the proposition: "The increase of the facility


use tax for the purpose of financing _______ (insert description of venueproject) to a maximum rate of ________ a game (insert new maximum rate notto exceed $5,000)."

Sec. 334.305. COLLECTION. (a) The municipality by ordinance or thecounty by order may require the owner or lessee of an approved venue projectin the municipality or county to collect the tax for the benefit of themunicipality or county.

(b) The tax imposed by this subchapter is a debt owed to the owner orlessee of the approved venue project by the team member and recoverable atlaw.

(c) The tax imposed by this subchapter is not an occupation tax imposedon the owner or lessee of the approved venue project or on the professionalsports team member.

Sec. 334.306. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) Atax imposed under this subchapter or a change in a tax rate takes effect onthe date prescribed by the ordinance or order imposing the tax or changing therate.



(b) A municipality by ordinance or a county by order may prescribepenalties, including interest charges, for failure to keep records required by themunicipality or county, to report when required, or to pay the tax when due.The attorney acting for the municipality or county may bring suit against aperson who fails to collect a tax under this subchapter and to pay it over tothe municipality or county as required.


Sec. 334.308. DEPOSIT OF TAX REVENUE. Revenue from the taximposed under this subchapter shall be deposited in the venue project fund ofthe municipality or county imposing the tax.[Sections 334.309-334.350 reserved for expansion]SUBCHAPTER J. ATHLETIC EVENTS IN CERTAIN MUNICIPALITIES

Sec. 334.351. DEFINITION. In this subchapter, "athletic event" means apostseason intercollegiate athletic football bowl game that is held annually.

Sec. 334.352. APPLICATION OF SUBCHAPTER. This subchapterapplies only to a municipality with a population of more than 500,000 that islocated in a county that borders the United Mexican States.

Sec. 334.353. SHORT-TERM MOTOR VEHICLE RENTAL TAX. (a)


Notwithstanding any other provision of this chapter, a municipality to whichthis subchapter applies may impose by ordinance a tax on the rental in themunicipality of a motor vehicle.

(b) The municipality may impose the tax only if the tax is approved at anelection called and held for that purpose.

(c) Except as otherwise provided by this subchapter, Subchapter E appliesto the tax imposed under this subchapter.

Sec. 334.354. USE OF REVENUE. Notwithstanding any other provisionof this chapter, the municipality may use revenue from the tax to:

(1) pay the costs of collecting the tax;(2) operate one or more athletic events in the municipality; and(3) pay costs associated with an athletic event in the municipality,

including paying the costs of planning, acquiring, establishing, developing,advertising, promoting, conducting, sponsoring, or otherwise supporting theevent.

CHAPTER 335. SPORTS AND COMMUNITY VENUE DISTRICTSSUBCHAPTER A. GENERAL PROVISIONS

Sec. 335.001. DEFINITIONS. In this chapter:(1) "Approved venue project" has the meaning assigned by Section

334.001, except that the approval of the project must occur under this chapter.(2) "Board" means the board of directors of a venue district.(3) "District" means a venue district created under this chapter.(4) "Related infrastructure" has the meaning assigned by Section

334.001.(5) "Venue" has the meaning assigned by Section 334.001.(6) "Venue project" has the meaning assigned by Section 334.001,

except that the actions described by that section must occur under this chapter.Sec. 335.002. APPLICATION TO VENUE CONSTRUCTED UNDER

OTHER LAW. A district may use this chapter for a venue project relating toa venue and related infrastructure planned, acquired, established, developed,constructed, or renovated under other law, including Section 4B, DevelopmentCorporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), orSubchapter E, Chapter 451, Transportation Code.

Sec. 335.003. OTHER USES OF VENUE PERMITTED. This chapterdoes not prohibit the use of a venue for an event that is not related to a purposedescribed by Section 334.001, such as a community-related event.

Sec. 335.004. SPECIFIC PERFORMANCE. (a) The legislature expresslyfinds and determines that:

(1) the presence of a professional sports team in an approved venueproject built or renovated under this chapter provides a unique value to thedistrict that built or renovated the project and to each political subdivision thatcreated the district that cannot be adequately valued in money; and

(2) the district that built or renovated the approved venue project andeach political subdivision that created the district would suffer irreparable injuryif a professional sports team breaches its obligation to play its home games inthe approved venue project as required by an agreement between the sportsteam and the district.

(b) An agreement described by Subsection (a)(2) shall be enforceable by


specific performance in the courts of this state. A waiver of this remedy iscontrary to public policy and is unenforceable and void.

[Sections 335.005-335.020 reserved for expansion]SUBCHAPTER B. VENUE DISTRICT

Sec. 335.021. CREATION. A county and a municipality, two or morecounties, two or more municipalities, or a combination of municipalities,counties, or municipalities and counties may create a venue district under thischapter to plan, acquire, establish, develop, construct, or renovate one or morevenue projects in the district subject to voter approval under Subchapter D.

Sec. 335.022. ORDER CREATING DISTRICT. A county and amunicipality, two or more counties, two or more municipalities, or acombination of municipalities, counties, or municipalities and counties maycreate a district under this chapter by adopting concurrent orders. A concurrentorder must:

(1) contain identical provisions;(2) define the boundaries of the district to be coextensive with the

combined boundaries of each creating political subdivision; and(3) designate the number of directors, the manner of appointment, and

the manner in which the chair will be appointed in accordance with Section335.031.

Sec. 335.023. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) Adistrict is a political subdivision of the creating political subdivisions and ofthis state.

(b) A district is subject to Chapter 551, Government Code.[Sections 335.024-335.030 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORSSec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a)

A district is governed by a board of at least four directors.(b) The board is appointed by the mayors or county judges, or both as

appropriate, of the political subdivisions that create the district in accordancewith the concurrent order.

(c) Directors serve staggered two-year terms. A director may be removedby the appointing mayor or county judge at any time without cause. Successordirectors are appointed in the same manner as the original appointees.

(d) To qualify to serve as a director, a person must be a resident of theappointing political subdivision. An employee, officer, or member of thegoverning body of the appointing political subdivision may serve as a director,but may not have a personal interest in a contract executed by the district otherthan as an employee, officer, or member of the governing body of the politicalsubdivision.

Sec. 335.032. COMPENSATION. A board member is not entitled tocompensation, but is entitled to reimbursement for actual and necessaryexpenses.

Sec. 335.033. MEETINGS. The board shall conduct its meetings in thedistrict.

Sec. 335.034. OFFICERS. The presiding officer is designated as providedby the concurrent order. The board shall designate from the members of theboard a secretary and other officers the board considers necessary.


[Sections 335.035-335.050 reserved for expansion]SUBCHAPTER D. VENUE PROJECTS

Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A districtby resolution may provide for the planning, acquisition, establishment,development, construction, or renovation of a venue project if:

(1) the comptroller determines under Section 335.052 or 335.053 thatthe implementation of the resolution will not have a significant negative fiscalimpact on state revenue;

(2) to the extent required by Section 335.0535 or 335.0536, a rapidtransit authority determines that the implementation of the resolution will nothave a significant negative impact on the authority's ability to provide servicesand will not impair any existing contracts; and

(3) the resolution is approved by a majority of the qualified voters ofeach political subdivision that created the district voting at one election or atseparate elections called and held for that purpose under Section 335.054.

(b) The resolution must designate each venue project and each method offinancing authorized by this chapter that the district wants to use to finance aproject. A resolution may designate more than one method of financing.

Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before callingan election on the resolution under Section 335.054, the district shall send acopy of the resolution to the comptroller.

(b) Before the 15th day after the date the comptroller receives the copyof the resolution, the comptroller shall:

(1) perform an analysis to determine if approval and implementationof the resolution will have a significant negative fiscal impact on state revenue;and

(2) provide to the district written notice of the results of the analysis.(c) If the comptroller determines that implementation will have a significant

negative fiscal impact on state revenue, the written analysis required underSubsection (b)(2) must include information on how to change the resolution sothat implementation will not have a significant negative fiscal impact on staterevenue.

(d) If the comptroller does not complete the analysis and provide the noticebefore the 30th day after the date the comptroller receives the copy of theresolution, the comptroller is considered to have determined that approval andimplementation of the resolution will not have a significant negative fiscalimpact on state revenue.

Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) Ifthe comptroller determines under Section 335.052 that implementation of theresolution will have a significant negative fiscal impact on state revenue, thedistrict may contest the finding by filing an appeal with the comptroller not laterthan the 10th day after the date the district receives the written notice underSection 335.052.

(b) Before the 11th day after the date the comptroller receives the appealunder Subsection (a), the comptroller shall perform a new analysis to determineif implementation of the resolution will have a significant negative fiscal impacton state revenue and provide to the district written notice of the results of theanalysis.


(c) If the comptroller again determines that implementation will have asignificant negative fiscal impact on state revenue, the written analysis requiredunder Subsection (b) must include additional information on how to change theresolution so that implementation will not have a significant negative fiscalimpact on state revenue.

(d) If the comptroller does not comply with Subsection (b) before the 30thday after the date the comptroller receives the appeal or request for information,the comptroller is considered to have determined that approval andimplementation of the resolution will not have a significant negative fiscalimpact on state revenue.

Sec. 335.0535. TRANSPORTATION AUTHORITY IMPACT ANALYSIS.(a) If the resolution contains a proposed sales and use tax under SubchapterD, Chapter 334, and imposition of the tax would result in the reduction of thetax rate of a rapid transit authority created under Chapter 451, TransportationCode, or a regional transportation authority created under Chapter 452,Transportation Code, the district shall send a copy of the resolution to theauthority before calling an election on the resolution under Section 335.054.

(b) Before the 30th day after the date the rapid transit authority receivesthe copy of the resolution, the authority shall:

(1) perform an analysis to determine if implementation of the proposedsales and use tax and the resulting reduction in the authority's tax rate will:

(A) have a significant negative impact on the authority'sability to provide services; or

(B) impair any existing contracts; and(2) provide to the district written notice of the results of the analysis.

(c) If the rapid transit authority determines that implementation of theresolution will have a significant negative impact on the authority's ability toprovide services or will impair any existing contracts, the written analysisrequired under Subsection (b)(2) must include information on how to changethe resolution so that implementation will not have a significant negative impacton the authority's ability to provide service or will not impair any existingcontracts.

(d) If the rapid transit authority does not complete the analysis and providethe notice before the 30th day after the date the authority receives the copy ofthe resolution, the authority is considered to have determined thatimplementation of the resolution will not have a significant negative impact onthe authority's ability to provide services and will not impair any existingcontracts.

Sec. 335.0536. APPEAL OF AUTHORITY DETERMINATION. (a) Ifa rapid transit authority determines under Section 335.0535 that implementationof the resolution will have a significant negative impact on the authority's abilityto provide services or will impair an existing contract, the district may contestthe finding by filing an appeal with the authority not later than the 10th dayafter the date the district receives the written notice under Section 335.0535.

(b) Before the 11th day after the date the rapid transit authority receivesthe appeal under Subsection (a), the authority shall perform a new analysis todetermine if implementation of the resolution will have a significant negativeimpact on the authority's ability to provide services or will impair an existing


contract and provide to the district written notice of the results of the analysis.(c) If the authority again determines that implementation will have a

significant negative impact on the authority's ability to provide services or willimpair an existing contract, the written analysis required under Subsection (b)must include additional information on how to change the resolution so thatimplementation will not have a significant negative impact on the authority'sability to provide services and will not impair an existing contract.

(d) If the rapid transit authority does not comply with Subsection (b) beforethe 11th day after the date the authority receives the appeal or request forinformation, the authority is considered to have determined that approval andimplementation of the resolution will not have a significant negative impact onthe authority's ability to provide services and will not impair any existingcontracts.

Sec. 335.054. ELECTION. (a) If the comptroller determines under Section335.052 or 335.053 that implementation of the resolution will not have asignificant negative fiscal impact on state revenue, and, if applicable, the rapidtransit authority determines under Section 335.0535 or 335.0536 that theimplementation will not have a significant impact on the authority's ability toprovide service and will not impair any existing contracts, the board may orderan election or elections on the question of approving and implementing theresolution. In a district created by a county with a population of more than2.2 million and a municipality with a population of more than 1.2 million, theboard may order one district-wide election or may order a separate election ineach political subdivision that created the district. The election or electionsshall be held on the same day.

(b) The order calling the election or elections must:(1) allow the voters to vote separately on each venue project;(2) designate the venue project;(3) designate each method of financing authorized by this chapter that

the district wants to use to finance the project and the maximum rate of eachmethod; and

(4) allow the voters to vote, in the same proposition or in separatepropositions, on each method of financing authorized by this chapter that thedistrict wants to use to finance the project and the maximum rate of eachmethod.

(c) The ballot at the election or elections held under this section must beprinted to permit voting for or against the proposition: "Authorizing ________(insert name of district) to __________ (insert description of venue project) andto impose a __________ tax (insert type of tax) at the rate of ________ (insertmaximum rate) for the purpose of financing the venue project."

(d) If more than one method of financing is to be voted on in oneproposition, the ballot must be printed to permit voting for or against theproposition: "Authorizing _________ (insert name of district) to __________(insert description of venue project) and to impose a __________ tax at the rateof ________ (insert each type of tax and the maximum rate of each tax) forthe purpose of financing the venue project."

(e) If a majority of the votes cast at the district-wide election or at theelection in each creating political subdivision approves the proposition


authorizing the project, the district may implement the resolution. If separateelections are held and a majority of the votes cast in one or more of thecreating political subdivisions disapproves the proposition authorizing theproject, the district may not implement the resolution. If the project isapproved, but one or more financing methods contained in separate propositionsare disapproved, the district may use only the approved financing methods.

(f) The Election Code governs an election held under this chapter.[Sections 335.055-335.070 reserved for expansion]

SUBCHAPTER E. POWERS AND DUTIESSec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district may:

(1) perform any act necessary to the full exercise of the district'spowers;

(2) accept a gift, grant, or loan from a:(A) department or agency of the United States;(B) department, agency, or political subdivision of this state;

or(C) public or private person;

(3) acquire, sell, lease, convey, or otherwise dispose of property or aninterest in property, including a right-of-way or easement or an approved venueproject, under terms and conditions determined by the district;

(4) employ necessary personnel; and(5) adopt rules to govern the operation of the district and its

employees and property.(b) A district may contract with a public or private person, including one

or more political subdivisions that created the district or a sports team, club,organization, or other entity, to:

(1) plan, acquire, establish, develop, construct, or renovate an approvedvenue project; or

(2) perform any other act the district is authorized to perform underthis chapter, other than conducting an election under this chapter.

(c) A district may contract with or enter into an interlocal agreement witha school district, junior or community college district, or an institution of highereducation as defined by Section 61.003, Education Code, for a purposedescribed by Subsection (b). The contract or interlocal agreement may providefor joint ownership and operation or joint use.

(d) The competitive bidding laws, including Chapter 271, do not apply tothe planning, acquisition, establishment, development, construction, orrenovation of an approved venue project.

(e) A district may impose any tax a municipality or county may imposeunder Chapter 334, subject to approval of the voters of the district as prescribedby this chapter and Chapter 334. The district shall impose the tax in the samemanner as a county or municipality and may issue bonds in lieu of a countyor municipality as required by Chapter 334.

(f) A district may not levy an ad valorem tax.(g) In a transaction with another public entity that is made as provided by

Subsection (a)(3), the public purpose found by the legislature under Section335.074 is adequate consideration for the district and the other public entity.

(h) A district has the right and power of eminent domain under Chapter21, Property Code, to acquire and condemn any interest, including a fee simple


interest, in real property in the district, in connection with the planning,acquisition, establishment, development, construction, renovation, repair,maintenance, or operation of an approved venue project. A district is notrequired to provide bond for appeal or bond for costs under Section21.021(a)(2) or (3), Property Code, in any lawsuit to which the district is aparty and is not required to deposit more than the amount of the award in asuit.

Sec. 335.0715. USE OF FINANCING FOR CERTAIN PROJECTS.Notwithstanding any other provision of this chapter, a district, a municipalityor county that created the district, or an entity created by or acting on behalfof or in conjunction with the district, municipality, or county, that contracts witha professional sports team or the team's owner or representative for the teamto relocate and play at an arena, coliseum, or stadium in the district may notuse any method of financing authorized by this chapter to finance theacquisition or construction of the arena, coliseum, or stadium if the team isplaying under an existing contract and is located in another arena, coliseum,or stadium owned by a different municipality or county in this state unless thegoverning body of that different municipality or county consents to the contract.

Sec. 335.072. VENUE PROJECT FUND. (a) A district in which anapproved venue project is located shall establish by resolution a fund knownas the venue project fund. The district shall establish separate accounts withinthe fund for the various revenue sources.

(b) The district shall deposit into the venue project fund:(1) the proceeds from any tax imposed by the district;(2) all revenue from the sale of bonds or other obligations by the

district;(3) money received under Section 335.075 from a political subdivision

that created the district; and(4) any other money required by law to be deposited in the fund.

(c) The district may deposit into the venue project fund:(1) money received by the district from innovative funding concepts

such as the sale or lease of luxury boxes or the sale of licenses for personalseats; and

(2) any other revenue received by the district from the approved venueproject, including stadium rental payments and revenue from concessions andparking.

(d) The district may use money in the venue project fund to:(1) reimburse or pay the costs of planning, acquiring, establishing,

developing, constructing, or renovating one or more approved venue projectsin the district;

(2) pay the principal of, interest on, and other costs relating to bondsor other obligations issued by the district or to refund bonds or otherobligations; or

(3) pay the costs of operating or maintaining one or more approvedvenue projects.

(e) Money deposited into the venue project fund, including moneydeposited under Subsection (c), is the property of the district depositing themoney.


Sec. 335.0725. BOOKS, RECORDS, AND PAPERS. The books, records,and papers of the district relating to an approved venue project and the revenueused to finance the project are public information and subject to disclosureunder Chapter 552, Government Code.

Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district inwhich an approved venue project is located may issue bonds, including revenuebonds and refunding bonds, or other obligations to pay the costs of theapproved venue project. For a district created by a county with a populationof more than 2.2 million and a municipality with a population of more than1.2 million, the power of the district to issue bonds or other obligations issubject to the prior approval by the governing bodies of the county andmunicipality.

(b) The bonds or other obligations and the proceedings authorizing thebonds or other obligations shall be submitted to the attorney general for reviewand approval as required by Article 3, Chapter 53, Acts of the 70th Legislature,2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes).

(c) The bonds or other obligations must be payable from and secured bythe designated revenues in the venue project fund.

(d) The bonds or other obligations may mature serially or otherwise notmore than 30 years from their date of issuance.

(e) The bonds or other obligations are not a debt of and do not create aclaim for payment against the revenue or property of the district other than therevenue sources pledged and an approved venue project for which the bondsare issued.

(f) A district may issue short term obligations and enter into creditagreements under Chapter 656, Acts of the 68th Legislature, Regular Session,1983 (Article 717q, Vernon's Texas Civil Statutes). For purposes of that Act,a district is a "public utility" and an approved venue project is an "eligibleproject."

Sec. 335.074. PUBLIC PURPOSE OF VENUE PROJECT. (a) Thelegislature finds for all constitutional and statutory purposes that an approvedvenue project is owned, used, and held for public purposes by the district.

(b) Section 25.07(a), Tax Code, does not apply to a leasehold or otherpossessory interest granted by the district while the district owns the venueproject.

(c) The project is exempt from taxation under Section 11.11, Tax Code,while the district owns the venue project.

(d) If approval and implementation of a resolution under this chapterresults in the removal from a school district's property tax rolls of real propertyotherwise subject to ad valorem taxation, the operator of the approved venueproject located on that real property shall pay to the school district on January1 of each year in which the project is in operation and in which the realproperty is exempt from ad valorem taxation an amount equal to the ad valoremtaxes that would otherwise have been levied for the preceding tax year on thatreal property by the school district, without including the value of anyimprovements. This subsection does not apply if the operator of the projectis a political subdivision of this state.

Sec. 335.075. CONTRIBUTION OR DEDICATION OF CERTAIN


REVENUE BY POLITICAL SUBDIVISION. (a) A political subdivision,including a metropolitan rapid transit authority created under Chapter 451,Transportation Code, may contribute or dedicate to the district all or part ofthe sales and use tax revenue received by the political subdivision that isgenerated, paid, or collected by any or all businesses operating in an approvedvenue project. If the political subdivision contributes or dedicates the revenueto assist the district in securing bonds or other obligations, including refundingbonds, that are issued to provide funding for an approved venue project, thepolitical subdivision may not make a contribution or dedication for that purposeafter the date on which those bonds or other obligations are no longeroutstanding.

(b) A political subdivision may contribute or dedicate sales and use taxrevenue under this section only if the governing body or governing board ofthe political subdivision determines that the approved venue project from whichthe revenue was or will be derived will contribute to the economic, cultural,or recreational development or well-being of the residents of the politicalsubdivision.

(c) The district shall deposit revenue contributed or dedicated under thissection in the venue project fund and may use the revenue in the same manneras any other money deposited in the fund.

(d) A contribution or dedication of revenue under this section is not a"method of financing" of the district as that term is used in Subchapter D.

Sec. 335.076. COUNTY VENUE DISTRICT. A county, acting through itscommissioners court, may create a venue district on land within theunincorporated area of the county to plan, acquire, establish, develop, finance,construct, or renovate one or more venue projects in the district, provided saidproposed venue district contains fewer than 150 acres and is not platted underChapter 212 or 232 for single-family or multi-family residential purposes. Saiddistrict shall have those powers granted by Chapters 325, 372, and 375.

SECTION 2. Section 4A, Development Corporation Act of 1979 (Article5190.6, Vernon's Texas Civil Statutes), is amended by adding Subsection (s)to read as follows:

(s)(1) A city that creates or has created a corporation governed by thissection may submit to the voters of the city, at a separate election to be heldon a uniform election date or at an election held under another provision ofthis Act, including the election at which the proposition to initially authorizethe collection of a sales and use tax for the benefit of the corporation issubmitted, a ballot proposition that authorizes the corporation to use the salesand use tax, including any amount previously authorized and collected, for aspecific project or for a specific category of projects, including a sports venueand related infrastructure, that does not qualify under this section but qualifiesunder Section 4B of this Act. Prior approval of a specific project at an electionor completion of a specific project approved at an election does not prohibit acity from seeking voter approval of an additional project or category of projectsunder this subsection to be funded from the same sales and use tax.

(2) In the election to authorize the use of the sales or use tax for aspecific project or for a specific category of projects not authorized under thissection, including a sports venue and related infrastructure, the project or


category of projects must be clearly described on the ballot so that a voter willbe able to discern the limits of the specific project or category of projectsauthorized by the proposition. If maintenance and operating costs of anotherwise authorized facility are to be paid from the sales or use tax, the ballotlanguage must clearly state that fact.

(3) Before an election may be held under this subsection, a publichearing shall be held in the city to inform the residents of the city of the costand impact of the project or category of projects. At least 30 days before thedate set for the hearing, a notice of the date, time, place, and subject of thehearing shall be published in a newspaper with general circulation in the cityin which the project is located. The notice shall be published on a weekly basisuntil the date of the hearing.

(4) If a majority of the voters voting on the issue do not approve aspecific project or a specific category of projects at an election under thissubsection, another election may not be held on the same project or categoryof projects before the first anniversary of the date of the most recent electiondisapproving the project or category of projects.

(5) In this subsection:(A) "Related infrastructure" has the meaning assigned by

Section 334.001, Local Government Code.(B) "Sports venue" means an arena, coliseum, stadium, or

other type of area or facility:(i) that is primarily used or is planned for primary

use for one or more professional or amateur sports or athletics events; and(ii) for which a fee for admission to the sports or

athletics events, other than occasional civic, charitable, or promotional events,is charged or is planned to be charged.

SECTION 3. Section 4B, Development Corporation Act of 1979 (Article5190.6, Vernon's Texas Civil Statutes), is amended by adding Subsections (a-3) and (a-4) to read as follows:

(a-3)(1) A city that creates or has created a corporation governed by thissection may submit to the voters of the city, at a separate election to be heldon a uniform election date or at an election held under another provision ofthis Act, including the election at which the proposition to initially authorizethe collection of a sales and use tax for the benefit of the corporation issubmitted, a ballot proposition that authorizes the corporation to use the salesand use tax, including any amount previously authorized and collected, for aspecific sports venue project, including related infrastructure, or for a specificcategory of sports venue projects, including related infrastructure. Priorapproval of a specific sports venue project at an election or completion of aspecific sports venue project approved at an election does not prohibit a cityfrom seeking voter approval of an additional project or category of projectsunder this subsection to be funded from the same sales and use tax.

(2) In the election to authorize the use of the sales or use tax for aspecific sports venue project or for a specific category of sports venue projects,the project or category of projects must be clearly described on the ballot sothat a voter will be able to discern the limits of the specific project or categoryof projects authorized by the proposition. If maintenance and operating costs


of an otherwise authorized facility are to be paid from the sales or use tax, theballot language must clearly state that fact.

(3) Before an election may be held under this subsection, a publichearing shall be held in the city to inform the residents of the city of the costand impact of the project or category of projects. At least 30 days before thedate set for the hearing, a notice of the date, time, place, and subject of thehearing shall be published in a newspaper with general circulation in the cityin which the project is located. The notice shall be published on a weekly basisuntil the date of the hearing.

(4) If a majority of the voters voting on the issue do not approve aspecific sports venue project or a specific category of sports venue projects atan election under this subsection, another election may not be held on the sameproject or category of projects before the first anniversary of the date of themost recent election disapproving the project or category of projects.

(a-4) In this section:(1) "Related infrastructure" has the meaning assigned by Section

334.001, Local Government Code.(2) "Sports venue" means an arena, coliseum, stadium, or other type

of area or facility that is primarily used or is planned for primary use for oneor more professional or amateur sports or athletics events and for which a feefor admission to the sports or athletics events, other than occasional civic,charitable, or promotional events, is charged or is planned to be charged. Theterm does not include an arena, coliseum, stadium, or other type of area orfacility that is or will be owned and operated by a state-supported institutionof higher education.

SECTION 4. Subchapter F, Chapter 321, Tax Code, is amended by addingSection 321.508 to read as follows:

Sec. 321.508. PLEDGE OF TAX REVENUE. (a) A municipality maycall and hold an election on the issue of authorizing the municipality to pledgea percentage of the sales and use tax revenue received under Section 321.101(a)or (b), or both, to the payment of obligations issued to pay all or part of thecosts of one or more sports and community venue projects located in themunicipality.

(b) The ballot at the election under this section must be printed to permitvoting for or against the proposition: "Authorizing the City of ______ (insertname of municipality) to pledge not more than ______ percent (insertpercentage not to exceed 25 percent) of the revenue received from the_________ (insert municipal sales and use tax, additional municipal sales anduse tax, or both) previously adopted in the city to the payment of obligationsissued to pay all or part of the costs of _________ (insert description of eachsports and community venue project)."

(c) If a majority of the voters vote in favor of the proposition, themunicipality may:

(1) issue bonds, notes, or other obligations that are payable from thepledged revenues to pay for all or part of the costs of the sports and communityvenue project or projects described in the proposition; and

(2) set aside the portion of the revenue approved at the election thatthe municipality actually receives and pledge that revenue as security for the


payment of the bonds, notes, or other obligations.(d) If the municipality pledges revenue under Subsection (c), the pledge

and security interest shall continue while the bonds, notes, or obligations,including refunding obligations, are outstanding and unpaid.

(e) The municipality may direct the comptroller to deposit the pledgedrevenue to a trust or account as may be required to obtain the financing andto protect the related security interest.

(f) Sections 321.506 and 321.507 do not apply to taxes pledged under thissection.

(g) In this section, "sports and community venue project" has the meaningassigned by Section 334.001, Local Government Code.

SECTION 5. The changes in law made by this Act do not apply to theuse of tax revenue pledged to secure bonds issued before the effective dateof this Act. Tax revenue pledged to secure bonds issued before the effectivedate of this Act is governed by the law in effect on the date the bonds wereissued, and that law is continued in effect for that purpose.

SECTION 6. (a) This Act does not affect the authority of:(1) a municipality that created an industrial development corporation

under Section 4A or 4B, Development Corporation Act of 1979 (Article 5190.6,Vernon's Texas Civil Statutes), before the effective date of this Act to continueto collect any tax authorized for the benefit of the corporation before that date;or

(2) an industrial development corporation described by Subdivision (1)to continue a project or category of projects authorized for the corporationbefore the effective date of this Act that the corporation had begun before thatdate.

(b) A tax collected under Subsection (a)(1) of this section or a projectcontinued under Subsection (a)(2) of this section is subject to the samerestrictions applicable under Sections 4A and 4B, Development Corporation Actof 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as those sectionsexisted immediately before the effective date of this Act, and that law iscontinued in effect for that purpose.

SECTION 7. Notwithstanding any other provision of Chapter 334 or 335,Local Government Code, as added by this Act, an election to approve a sportsand community venue project, to approve a method of financing for the venueproject, other than the imposition of a sales and use tax or a facility use tax,or to create a sports and community venue district in a specific county ormunicipality is not necessary if, at an election held before the effective dateof this Act, the voters of that county, or of the county in which the municipalityor district is primarily located, authorized the establishment and operation ofnew or renovated stadiums, arenas, or other facilities for professional sportsteams. This section:

(1) negates the necessity of an election only for the type of venueproject approved at the previous election; and

(2) does not negate the necessity of an election for approval of theimposition of a sales and use tax or a facility use tax to finance a venue project.

SECTION 8. Notwithstanding any other provision of Chapter 334 or 335,Local Government Code, as added by this Act, a municipality, county, or venue


district is not required to obtain from the comptroller a determination of statefiscal impact if, at an election held before the effective date of this Act, thevoters of that county, or of the county in which the municipality or district isprimarily located, authorized the establishment and operation of new orrenovated stadiums, arenas, or other facilities for professional sports teams.This section negates the necessity of a comptroller determination only for thetype of venue project approved at the previous election.

SECTION 9. All acts or proceedings authorized or undertaken by a sportsand community venue district or by a county or municipality that created thedistrict that were undertaken before the effective date of this Act, including actsor proceedings to create the district, are validated and confirmed in all respects,provided that the validation and confirmation do not apply to an act orproceeding that is subject to litigation that is pending on the effective date ofthis Act.

SECTION 10. If any provision of this Act or its application to any personor circumstance is held invalid, the invalidity does not affect other provisionsor applications of this Act that can be given effect without the invalid provisionor application, and to this end the provisions of this Act are severable.

SECTION 11. The importance of this legislation and the crowdedcondition of the calendars in both houses create an emergency and animperative public necessity that the constitutional rule requiring bills to be readon three several days in each house be suspended, and this rule is herebysuspended, and that this Act take effect and be in force from and after itspassage, and it is so enacted.

Senate Amendment No. 1

Amend CSHB 92 on page 2, line 27 of the committee report by insertingthe a new section 334.006 as follows:

Sec. 334.006. PROHIBITION AGAINST TAX EXPANSION. In acounty with a population of over 2.8 million, no tax on real property or onpersonal property may be used for the operation, maintenance, renovation, orrepair of any venue authorized by an election on November 5, 1996 andconstructed after that date.


Amend CSHB 92 as follows:On page 5, delete lines 21-24 and insert in lieu thereof the following:"(f) A municipality or county may not use revenue derived from ad

valorem taxes to construct, operate, maintain, or renovate a venue that is partof an approved venue project."


Amend CSHB 92 as follows:On page 5, line 29, between the words "representative" and "for", insert

the following:"on or before November 1, 1998" and, on page 21, line 8, between the

words "representative" and "for", insert the following:"on or before November 1, 1998"



Amend CSHB 92 as follows:(1) In Subsection (b), Section 334.085, Local Government Code, page 7,

line 38 as added by Section 1 of the bill, strike "If a municipality or county"and substitute "Except as provided by Section 334.0855, if a municipality orcounty".

(2) In Subchapter D, Chapter 334, Local Government Code, as added bySection 1 of the bill, insert a new Section 334.0855 to read as follows:

Sec. 334.0855. IMPOSITION IN CERTAIN MUNICIPALITIES ANDCOUNTIES. This section applies only to a:

(1) municipality that is included in a regional transportation authoritycreated under Chapter 452, Transportation Code; and

(2) county that is included within the boundaries of a regionaltransportation authority created under Chapter 452, Transportation Code.

(b) If the adoption or increase of the tax under this subchapter wouldotherwise result under Section 334.085 in the reduction of the tax rate of thetransportation authority, the election to approve or increase the tax under thissubchapter is to be treated for all purposes as an election to withdraw from theauthority in accordance with and subject to Subchapter O, Chapter 452,Transportation Code.

(c) The ballot language at an election to which this section applies mustclearly state that the adoption or increase of the tax under this subchapter willresult in the withdrawal of the municipality or county from the transportationauthority.

(d) A municipality or county subject to this section that votes to adopt orincrease the tax under this subchapter may not impose that tax before the dateon which the municipality's or county's financial obligations to the authority aresatisfied in accordance with Subchapter O, Chapter 452, Transportation Code.


Amend CSHB 92, as follows:(1) On page 9, delete all language beginning with and including the word

"Except" on line 9-2, and ending with and including the word "the" on line 9-3, and insert the following after the subsection designator "(a)" on line 9-2:"The".

(2) On page 9, line 9-5 delete the figure "10" and insert the figure "5" afterthe word exceed.

(3) On page 9, delete all language beginning with and including the word"In" on line 9-7, and ending with and including the subsection designator "(c)"on line 9-13.

(4) On page 9, line 9-17, delete the following language: "or 10 percent,as applicable,".

(5) On page 9, beginning at the end of line 9-18, delete the followinglanguage: "or 10 percent, as applicable,".

(6) On page 9, line 9-27, delete the following language: "or 10 percent,as applicable".



Amend CSHB 92 by deleting proposed Sec. 335.076. COUNTY VENUEDISTRICT.


Amend CSHB 92 as follows:Delete Section 334.252 (lines 17 through 37 on page 13 of the Committee

Printing).On page 13 (of the Committee Printing), strike lines 62 through 67 and

insert the following: "Sec. 334.255. TAX RATE. (a) The tax authorized bythis subchapter may be imposed by a municipality or county at any rate notto exceed two percent of the price paid for a room in a hotel."

On page 14, line 3 (Committee Printing), strike "five percent or twopercent, as applicable," and insert: "two percent".

Renumber all respective subsequent sections.


Amend CSHB 92 as follows:(1) On page 7, line 44, between "authority" and "to", insert "(except a

Rapid Transit Authority created under Ch. 451, Transportation Code,"(2) On page 7, at the end of subsection 334.085(b), add subsections (b)(1):"(1) If the voters choose reduction of the tax collected by a Rapid Transit

Authority created under Ch. 451, Transportation Code, and imposition of thetax authorized under this section would result in a reduction of the RapidTransit Authority's tax rate to the highest rate that will not result in a combinedtax rate of more than two percent in any location in the municipality or county,an election must be held pursuant to Subchapter M, Sec. 451.601 et. seq.,Transportation Code, as applicable for the type of authority involved, on thequestion of withdrawing the affected municipalities from the authority prior toimposition of the tax authorized in this section. If withdrawal is not authorized,the tax may not be imposed unless authorized pursuant to subsequentelection(s). Upon withdrawal of each affected municipality from the authority(if withdrawal is authorized), the obligation to provide service (including serviceto persons with disabilities) shall be discontinued for that municipality exceptas required under applicable federal law. In all other respects, the provisionsof Subchapter M governing withdrawal procedures and obligations ofmunicipalities upon withdrawal, shall apply.



COMMITTEE MEETING ANNOUNCEMENTS

The following committee meetings were announced:

Higher Education, on noon recess today, Desk 118, to consider SB 576.

Pensions and Investments, on noon recess today, Desk 54, to considerSB 1923.


State Affairs, on noon recess today, Desk 71, to consider pendinglegislation.

Urban Affairs, on noon recess today, Desk 73, to consider SB 679.

County Affairs, on noon recess today, Desk 4.

Conference Committee on HB 4 and HJR 4, scheduled for 1:30 p.m. iscancelled.

RECESS

Representative Gallego moved that the house recess until 2:15 p.m. today.


The house accordingly, at 12:44 p.m., recessed until 2:15 p.m. today.

AFTERNOON SESSION

The house met at 2:15 p.m. and was called to order by the speaker.

BILLS AND RESOLUTIONS SIGNED BY THE SPEAKER

Notice was given at this time that the speaker had signed bills andresolutions in the presence of the house (see the addendum to the daily journal,Signed by the Speaker, House List No. 62).


Representative Pickett called up with senate amendments for considerationat this time,

HB 325, A bill to be entitled An Act relating to the required distancebetween certain businesses that sell alcoholic beverages and a day-care centeror child-care facility.

On motion of Representative Pickett, the house concurred in the senateamendments to HB 325.


Amend HB 325 by adding a new subsection (d) as follows:"(d) This section does not apply to a foster group home, foster family

home, family home, agency group home, or agency home as those terms aredefined by Section 42.002, Human Resources Code."

HR 1035 and HR 1036 - NAMES ADDED

On motion of Representative Torres, the names of all the members of thehouse were added to HR 1035 and HR 1036 as signers thereof.


Representative Naishtat called up with senate amendments for considerationat this time,

HB 1039, A bill to be entitled An Act relating to court-ordered mentalhealth services.


On motion of Representative Naishtat, the house concurred in the senateamendments to HB 1039.


Amend HB 1039 as follows:1) On page 2, line 10, strike "and safety" and substitute "or safety".2) On page 2, line 14, add a new SECTION 3 to read as follows and

renumber subsequent SECTIONS accordingly:SECTION 3. Sec. 574.012, Health and Safety Code, is amended by adding

a new subsection (d) to read as follows and renumbering subsequent subsectionsaccordingly:

(d) If outpatient treatment is recommended, the entity will also file astatement as to whether the proposed mental health services are availablethrough:

(1) the local mental health authority because:(i) the proposed patient is a member of a priority population

identified for those mental health services in the department's long range plan;and

(ii) that sufficient resources to provide the necessary servicesare available; and

(2) another mental health services provider and that sufficient resourcesto provide the necessary services are available.

3) On page 2, line 18, strike subsection (a) and substitute the following:(a) The clerk of each court with jurisdiction to order commitment under

this chapter shall provide the Office of Court Administration each month witha report of the number of applications for commitment orders for involuntarymental health services filed with the court and the disposition of those cases,including the number of commitment orders for inpatient and outpatient mentalhealth services. The Office of Court Administration shall make the reportedinformation available to the department annually.

4) On page 2, line 52, strike "and safety" and substitute "or safety".5) On page 2, line 57, strike subsection (1) in its entirety and substitute

the following:(1) the judge finds that appropriate mental health services are available

to the patient; and6) On page 3, line 13, strike subsection (i) and substitute the following:

(i) any of the proposed patient's actions occurring within the two yearperiod which immediately precedes the hearing; or

7) On page 4, line 22, strike "and safety" and substitute "or safety".8) On page 4, line 33, strike subsection (1) in its entirety and substitute

the following:(1) the judge finds that appropriate mental health services are available

to the patient; and9) On page 4, line 58, strike subsection (i) and substitute the following:

(i) any of the proposed patient's actions occurring within the two yearperiod which immediately precedes the hearing; or



Representative Alexander called up with senate amendments forconsideration at this time,

HB 1595, A bill to be entitled An Act relating to the regulation of motorvehicle dealers and manufacturers.

On motion of Representative Alexander, the house concurred in the senateamendments to HB 1595 by (Record 488): 131 Yeas, 0 Nays, 1 Present, notvoting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Brimer; Burnam; Carter; Chavez; Chisum; Christian; Clark; Coleman; Cook;Corte; Counts; Crabb; Culberson; Danburg; Davila; Davis; Delisi; Denny;Driver; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland; Elkins; Farrar;Finnell; Flores; Gallego; Garcia; Glaze; Goodman; Goolsby; Gray; Grusendorf;Gutierrez; Haggerty; Hartnett; Hawley; Heflin; Hernandez; Hightower; Hilbert;Hilderbran; Hill; Hinojosa; Hirschi; Hodge; Holzheauser; Horn; Howard;Hunter; Hupp; Isett; Jackson; Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel;Keffer; King; Kubiak; Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna; Madden;Marchant; Maxey; McCall; McClendon; McReynolds; Merritt; Moreno;Mowery; Naishtat; Nixon; Oakley; Olivo; Palmer; Patterson; Pickett; Place;Price; Puente; Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.;Rhodes; Roman; Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis;Solomons; Staples; Stiles; Swinford; Telford; Thompson; Tillery; Torres;Turner, B.; Turner, S.; Van de Putte; West; Williams; Williamson; Wilson; Wise;Wohlgemuth; Woolley; Yarbrough; Zbranek.



Absent — Bosse; Craddick; Cuellar; Galloway; Giddings; Greenberg;Hamric; Hochberg; Krusee; Moffat; Oliveira; Pitts; Talton; Uher; Walker;Wolens.


CSHB 1595, A bill to be entitled An Act relating to the regulation ofmotor vehicle dealers and manufacturers.


SECTION 1. Section 1.03, Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), as amended by Chapters 345and 357, Acts of the 74th Legislature, Regular Session, 1995, is amended toread as follows:

Sec. 1.03. DEFINITIONS. In this Act:(1) [(26)] "Ambulance" means a vehicle used exclusively for providing

emergency medical care to an injured or ill person or transporting an injuredor ill person, if the vehicle provides:

(A) a driver's compartment;(B) a compartment to accommodate an emergency medical


care technician or paramedic and two injured or ill persons so positioned thatone of the injured or ill persons can be given intensive life-support duringtransit;

(C) equipment and supplies for emergency care of an injuredor ill person where the ill person is located or at the scene of an injury-producing incident as well as in transit;

(D) two-way radio communication capability; and(E) equipment for light rescue or extrication procedures.

(2) "Board" means the Motor Vehicle Board of the Texas Departmentof Transportation.

(3) [(9)] "Broker" means a person who, for a fee, commission, or othervaluable consideration, arranges or offers to arrange a transaction involving thesale, for purposes other than resale, of a new motor vehicle, and who is not:

(A) a franchised dealer or bona fide employee of a franchiseddealer when acting on behalf of a franchised dealer;

(B) a representative or bona fide employee of a representativewhen acting on behalf of a representative;

(C) a distributor or bona fide employee of a distributor whenacting on behalf of a distributor; or

(D) at any point in the transaction the bona fide owner of thevehicle involved in the transaction.

(4) [(13)] "Chassis manufacturer" means a person who manufacturesand produces the frame upon which is mounted the body of a motor vehicle.

(5) [(11)] "Conversion" means a motor vehicle, other than a motorhome, ambulance, or fire-fighting vehicle, which has been substantially modifiedby a person other than the manufacturer or distributor of the chassis of themotor vehicle and which has not been the subject of a retail sale.

(6) [(14)] "Converter" means a person who prior to the retail sale ofa motor vehicle, assembles, installs, or affixes a body, cab, or special equipmentto a chassis, or who substantially adds, subtracts from, or modifies a previouslyassembled or manufactured motor vehicle.

(7) [(23)] "Dealer" means a person who holds a general distinguishingnumber issued by the Department pursuant to the terms of Chapter 503,Transportation Code [Article 6686, Revised Statutes].

(8) [(24)] "Dealership" means the physical premises and businessfacilities on which a franchised dealer operates his business, including the saleand repair of motor vehicles. The term includes premises or facilities at whicha person engages only in the repair of motor vehicles if repairs are performedpursuant to the terms of a franchise and a motor vehicle manufacturer'swarranty.

(9) [(20)] "Department" means the Texas Department ofTransportation.

(10) "Director" means the director of the board.(11) [(6)] "Distributor" means any person who distributes and/or sells

new motor vehicles to franchised dealers and who is not a manufacturer.(12) "Executive Director" means the Executive Director of the Texas

Department of Transportation.(13) [(27)] "Fire-fighting vehicle" means a motor vehicle which has as

its sole purpose transporting fire fighters to the scene of a fire and providing


equipment to fight the fire, if the vehicle is built on a truck chassis with a grosscarrying capacity of at least 10,000 pounds, to which the following have beenpermanently affixed or mounted:

(A) a water tank with a minimum combined capacity of 500gallons; and

(B) a centrifugal water pump with a minimum capacity of notless than 750 gallons per minute at 150 pounds per square inch net pumppressure.

(14) [(8)] "Franchise" means one or more contracts between afranchised dealer as franchisee, and either a manufacturer or a distributor asfranchisor under which (A) the franchisee is granted the right to sell and servicenew motor vehicles manufactured or distributed by the franchisor or onlyservice motor vehicles pursuant to the terms of a franchise and a manufacturer'swarranty; (B) the franchisee as an independent business is a component offranchisor's distribution system; (C) the franchisee is substantially associatedwith franchisor's trademark, tradename and commercial symbol; (D) thefranchisee's business is substantially reliant on franchisor for a continued supplyof motor vehicles, parts, and accessories for the conduct of its business; or (E)any right, duty, or obligation granted or imposed by this Act is affected. Theterm includes a written communication from a franchisor to a franchisee bywhich a duty is imposed on the franchisee.

(15) [(4)] "Franchised dealer" means any person who holds afranchised motor vehicle dealer's general distinguishing number issued by theDepartment pursuant to the terms of Chapter 503, Transportation Code [Article6686, Revised Statutes], and who is engaged in the business of buying, selling,or exchanging new motor vehicles and servicing or repairing motor vehiclespursuant to the terms of a franchise and a manufacturer's warranty at anestablished and permanent place of business pursuant to a franchise in effectwith a manufacturer or distributor.

(16) "General distinguishing number" means a dealer license issued bythe Department pursuant to the terms of Chapter 503, Transportation Code.

(17) [(23)] "Lease" means a transfer of the right to possession and useof a motor vehicle for a term in excess of 180 days in return for consideration.

(18) [(25)] "Lease facilitator" means a person, other than a dealer ora bona fide employee of a dealer, or a vehicle lessor or a bona fide employeeof a vehicle lessor, who:

(A) holds himself out to any person as a "motor vehicleleasing company" or "motor vehicle leasing agent" or uses a similar title, forthe purpose of soliciting or procuring a person to enter into a contract oragreement to become the lessee of a vehicle that is not, and will not be, titledin the name of and registered to the lease facilitator; or

(B) otherwise solicits a person to enter into a contract oragreement to become a lessee of a vehicle that is not, and will not be, titledin the name of and registered to the lease facilitator, or who is otherwiseengaged in the business of securing lessees or prospective lessees of motorvehicles that are not, and will not be, titled in the name of and registered tothe facilitator.

(19) [(24)] "Lessor" means a person who acquires title to a [new]


motor vehicle for the purpose of leasing the vehicle to another person.(20) [(25)] "Licensee" means a person who holds a license or general

distinguishing number issued by the Board under the terms of this Act orChapter 503, Transportation Code [a general distinguishing number issued bythe Department pursuant to the terms of Article 6686, Revised Statutes].

(21) [(5)] "Manufacturer" means any person who manufactures orassembles new motor vehicles either within or without this State.

(22) [(26)] "Manufacturer's statement of origin" means a certificate ona form prescribed by the Department showing the original transfer of a newmotor vehicle from the manufacturer to the original purchaser.

(23) [(10)] "Motor home" means a motor vehicle which is designed toprovide temporary living quarters and which:

(A) is built onto as an integral part of, or is permanentlyattached to, a motor vehicle chassis; and

(B) contains at least four of the following independent lifesupport systems if each is permanently installed and designed to be removedonly for purposes of repair or replacement and meets the standards of theAmerican National Standards Institute, Standards for Recreational Vehicles:

(i) a cooking facility with an on-board fuel source;(ii) a gas or electric refrigerator;(iii) a toilet with exterior evacuation;(iv) a heating or air conditioning system with an on-

board power or fuel source separate from the vehicle engine;(v) a potable water supply system that includes at

least a sink, a faucet, and a water tank with an exterior service supplyconnection;

(vi) a 110-125 volt electric power supply.(24) [(12)] "Motor home manufacturer" means a person other than the

manufacturer of the chassis of a motor vehicle who, prior to the retail sale ofthe motor vehicle, performs modifications on the chassis that result in thefinished product being classified as a motor home.

(25) [(1)] "Motor vehicle" means:(A) every fully self-propelled vehicle which has as its primary

purpose the transport of a person or persons, or property, on a public highway,and having two or more wheels;

(B) every two or more wheeled fully self-propelled, titledvehicle which has as its primary purpose the transport of a person or personsor property and is not manufactured for use on public streets, roads, orhighways; or

(C) an engine, transmission, or rear axle manufactured forinstallation in a vehicle having as its primary purpose the transport of a personor persons or property on a public highway and having a gross vehicle weightrating of more than 16,000 pounds, whether or not attached to a vehicle chassis.

(26) [(2)] "New motor vehicle" means a motor vehicle which has notbeen the subject of a "retail sale" without regard to the mileage of the vehicle.

(27) [(22)] "Nonfranchised dealer" means a person[, other than afranchised dealer,] who holds an independent motor vehicle dealer's generaldistinguishing number or a wholesale motor vehicle dealer's general


distinguishing number issued by the Department pursuant to the terms ofChapter 503, Transportation Code [Article 6686, Revised Statutes].

(28) [(16)] "Party" means each person or agency named or admittedas a party and whose legal rights, duties, or privileges are to be determined bythe Commission after an opportunity for adjudicative hearing.

(29) [(3)] "Person" means a natural person, partnership, corporation,association, trust, estate, or any other legal entity.

(30) [(17)] "Relocation" means the transfer of an existing dealershipoperation to facilities at a different location, including a transfer which resultsin a consolidation or dualing of an existing dealer's operation.

(31) [(7)] "Representative" means any person who is or acts as anagent, employee or representative of a manufacturer, distributor, or converterwho performs any duties in this State relating to promoting the distribution and/or sale of new motor vehicles or contacts dealers in this State on behalf of amanufacturer, distributor, or converter.

(32) [(18)] "Retail sale" means the sale of a motor vehicle except:(A) a sale in which the purchaser acquires a vehicle for the

purpose of resale; or(B) a sale of a vehicle that is operated under and in

accordance with Section 503.061, Transportation Code [Article 6686, RevisedStatutes].

(33) [(15)] "Rule" means a statement by the Commission of generaland future applicability that implements, interprets, or prescribes law or policyor describes the organization or procedural practice requirements of theCommission. The term includes the amendment or repeal of a prior rule, butdoes not include statements concerning only the internal management of theCommission which do not affect the rights of a person not connected with theCommission.

(34) [(21)] "Transportation Commission" means the TexasTransportation Commission of the Texas Department of Transportation.

(35) [(19)] "Warranty work" means parts, labor, and any otherexpenses incurred by a franchised dealer in complying with the terms of amanufacturer's or distributor's warranty.

SECTION 2. Section 2.01, Texas Motor Vehicle Commission Code (Article4413(36), Vernon's Texas Civil Statutes), is amended to read as follows:

Sec. 2.01. TEXAS MOTOR VEHICLE BOARD [COMMISSION]. (a) Inconducting the policy-making and regulatory functions and duties imposed onthe board by this Act, whether mandatory or discretionary, and unless otherwiseprovided by this Act, the board is an independent entity within the departmentand is not an advisory body to the department. The board [Texas Motor VehicleCommission] shall carry out the functions and duties conferred upon it by thisAct and by other provision of law.

(b) A reference in this Act to the "commission" or the Texas MotorVehicle Commission means the board [Motor Vehicle Board of the TexasDepartment of Transportation]. A reference in other law, rule or regulation tothe Texas Motor Vehicle Commission means the board [Motor Vehicle Boardof the Texas Department of Transportation].

(c) [A reference in this Act to the "Executive Director" or the Executive


Director of the Texas Motor Vehicle Commission means the Director of theMotor Vehicle Division of the Texas Department of Transportation.] Areference in other law, rule or regulation to the Executive Director of the TexasMotor Vehicle Commission means the Director [of the Motor Vehicle Divisionof the Texas Department of Transportation].

(d) A reference in law, rule or regulation to the Texas Motor VehicleCommission Code means this Act.


Sec. 2.02. Members of Board. (a) The Motor Vehicle Board of the TexasDepartment of Transportation consists of nine [six] persons appointed by theGovernor with the advice and consent of the Senate.

(b) The Executive Director is a member of the board ex officio. TheExecutive Director may attend a meeting of the board and may confer with andadvise the board, the chairman, or the director. The Executive Director maynot vote on a matter coming before the board and is not counted in thedetermination of a quorum at a meeting of the board. Except as provided bythis subsection, the provisions of this Act relating to members of the board donot apply to the Executive Director.

(c) The membership of the board includes:(1) two dealers licensed pursuant to the terms of this Act, at least one

of whom must be a franchised dealer; and(2) one representative of a motor vehicle manufacturer or distributor

licensed pursuant to the terms of this Act.SECTION 4. Section 2.03, Texas Motor Vehicle Commission Code (Article

4413(36), Vernon's Texas Civil Statutes), is amended to read as follows:Sec. 2.03. QUALIFICATIONS OF MEMBERS. (a) A person is eligible

to be appointed to the board [Commission] if:(1) he is a citizen of the United States and a resident of this State;

and(2) except for a member appointed pursuant to the terms of Section

2.02(c), he has no interest in a business that manufactures, distributes, converts,leases, or sells motor vehicles.

(b) Except as provided by this section, the [The] office of a member isautomatically vacated and shall be filled as any other vacancy, if:

(1) the member becomes a licensee under this Act;(2) the member acquires an interest in a business that manufactures,

distributes, converts, leases, or sells motor vehicles;(3) the member becomes an officer, employee, or paid consultant of

a trade association in the motor vehicle industry; or(4) a person related to the member within the first degree by

consanguinity or affinity, as determined under Chapter 573, Government Code[Article 5996h, Revised Statutes], becomes an officer, employee, or paidconsultant of a trade association in the motor vehicle industry, becomes alicensee under this Act, or acquires an interest in a business that manufactures,distributes, converts, leases, or sells motor vehicles.

(c) Notwithstanding the terms of Subsection (b) of this section, the officeof a member appointed to the board pursuant to the terms of Section 2.02(c)(1)


of this Act is not vacated by virtue of the fact that the member, or a personrelated to the member within the first degree by consanguinity or affinity, asdetermined under Chapter 573, Government Code, subsequently acquires aninterest in a dealership.


Sec. 2.04. TERMS OF MEMBERS. [(a)] The members of the board[Commission] shall hold office for terms of six years, with the terms of three[two] members expiring on January 31 of each odd-numbered year. No personshall serve two consecutive full six-year terms as a member of the board[Commission].


Sec. 2.07. PER DIEM; EXPENSES. Each member of the board[Commission] shall be entitled to $50.00 per day for each day actually engagedin the duties of the office, including time spent in necessary travel to and frommeetings and otherwise, together with all travel and other necessary expensesincurred while performing official duties.

SECTION 7. Section 2.08, Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended by amendingSubsection (a) and by adding Subsection (d) to read as follows:

(a) The Governor shall designate one member of the board, other than amember appointed pursuant to the terms of Section 2.02(c) of this Act,[Commission] as Chairman [of the Commission] to serve in that capacity at thepleasure of the Governor. The board [Commission] shall hold a regular annualmeeting in September of each year and elect a Vice-chairman to serve for theensuing year. The board [Commission] shall have regular meetings as themajority of the members may specify and special meetings at the request ofthe Chairman, any two members, or the [Executive] Director. Reasonablenotice of all meetings shall be given as board [Commission] rules prescribe.A majority of the board [Commission] constitutes a quorum to transact business,except that a member appointed under Section 2.02 of this Act is not countedin the calculation of a quorum for purposes of the determination of an issuewith respect to which the member is prohibited from voting. The Chairman,or in his absence, the Vice-chairman, shall preside at all meetings of the board[Commission]. In the absence of both the Chairman and the Vice-chairman,the members [of the Commission] present shall select one of their number toserve as chairman for the meeting.

(d) A member of the board appointed pursuant to the terms of Section2.02(c) of this Act may not vote on an issue involving a dispute in which botha dealer and a manufacturer are named parties.

SECTION 8. Section 2.08A(c), Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended to read asfollows:

(c) If the [Executive] Director has knowledge that a potential ground forremoval exists, the [Executive] Director shall notify the Chairman of theCommission of the ground. The Chairman shall then notify the Governor thata potential ground for removal exists.



Sec. 2.09. [EXECUTIVE] DIRECTOR; STAFF; CONTRACTS;INDEMNITY. (a) The Executive Director [of the Texas Department ofTransportation] shall appoint the Director, [of the Motor Vehicle Division] whois [shall be] the board's [division's] chief executive and administrative officer.The Director, who shall be an attorney licensed to practice law in this state, ischarged with administering, enforcing, and carrying out the provisions of thisAct. The Director serves at the pleasure of the Executive Director [of the TexasDepartment of Transportation].

(b) The [Executive] Director or his designated representative shall meetwith the board [Commissioners] in an advisory capacity without vote in allproceedings of the board [Commission]. The [Executive] Director shall submitthe reports to the board [Commission] as may be required by the board's[Commission's] rules or by this Act.

(c) The [Executive] Director or his designee shall maintain all minutes ofboard [Commission] proceedings and shall serve as the custodian of the filesand records of the board [Commission].

(d) The [Executive] Director, or his designee, on behalf of the board[Commission], may negotiate with and, with the consent of a majority of theboard [Commissioners], enter into contracts or other agreements with the UnitedStates or any of its agencies, with states and political subdivisions thereof, orany other entity for the purpose of carrying out the powers, duties, andresponsibilities of the board [Commission].

(e) The [Executive] Director shall appoint and employ such board[Commission] staff as are necessary to carry out the duties and functions of the[Executive] Director and the board [Commission] under this Act. The board[Commission] shall develop and implement policies that clearly define therespective responsibilities of the board [Commission] and the staff of the board[Commission].

(f) An employee of the board [Commission] is subject to dismissal whohas an interest in or is related within the first degree by consanguinity oraffinity, as determined under Article 5996h, Revised Statutes, to a person whohas an interest in a business that manufactures, distributes, converts, [or] sells,or leases motor vehicles.

(g) [(h)] Notwithstanding any other provision of law, the [Executive]Director, each member of the board [Texas Motor Vehicle Commission], eachHearing Examiner and all other employees of the board [Texas Motor VehicleCommission] are not personally liable for damages occasioned by their officialacts or omissions except when such acts or omissions constitute intentional ormalicious malfeasance. The Attorney General shall defend any action broughtagainst a member or employee of the board [Commission] in connection withan official act or omission, whether or not at the time of the institution of theaction the defendant has previously ceased to serve the Commission in anycapacity, and the State of Texas shall indemnify any such person from andagainst a judgment entered against the person in any such actions though theState may seek contribution if liability is otherwise permitted by this subsection.

(h) [(i)] Unless otherwise provided by this Act or by board [Commission]


rules, all applications, petitions, or other documents requiring action by theboard [Commission] shall be directed to the [Executive] Director.

(i) [(j)] The board [Commission] shall provide to its members andemployees, as often as necessary, information regarding their qualifications foroffice or employment under this Act and their responsibilities under applicablelaws relating to standards of conduct for state officers or employees.

SECTION 10. Section 2.09B, Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended by addingSubsection (e) to read as follows:

(e) No member of the board may vote on an issue coming before the boardfor determination if that issue directly affects the member or if the issue directlyaffects an entity in which the member has a financial interest.

SECTION 11. Section 3.01(a), Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended to read as follows:

(a) The board [Commission] has the general and original power andjurisdiction to regulate all aspects of the distribution, sale, and leasing of motorvehicles and to do all things, whether specifically designated in this Act orimplied herein, or necessary or convenient to the exercise of this power andjurisdiction, including the original jurisdiction to determine questions of its ownjurisdiction. In addition to the other duties placed on the board [Commission]by this Act, the board [Commission] shall enforce and administer the terms ofChapter 503, Transportation Code [Article 6686, Revised Statutes].

SECTION 12. The Texas Motor Vehicle Commission Code (Article4413(36), Vernon's Texas Civil Statutes) is amended by adding Section 3.01Ato read as follows:

Sec. 3.01A. INTERACTION WITH DEPARTMENT. (a) In coordinationwith the department, the board shall develop and implement policies that clearlydelineate the policy-making responsibilities of the board and the managementresponsibilities of the department.

(b) The department, by agreement with the board, may provide personneland services to the board as needed to carry out purposes, powers, and dutiesof the board. The board may delegate authority to personnel as needed.

SECTION 13. Section 3.03(b), Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended to read asfollows:

(b) The board [commission] may conduct hearings in contested casesbrought pursuant to, and as provided by Chapter 503, Transportation Code [,Article 6686, Revised Statutes]. The procedures applicable to a hearingconducted under this Subsection, and the disposition of a final order after ahearing conducted under this Subsection, are those applicable to a hearingconducted as provided by Section 6.07(e)(2) of this Act. A decision or finalorder issued under this Subsection is final, and no appeal may, as a matter ofright, be made to the Texas Transportation Commission. The department mayadopt rules applicable to procedures, hearings, and enforcement proceedings inan action brought pursuant to this Subsection.


Sec. 3.04. DELEGATION OF BOARD [COMMISSION] POWERS. The


board [Commission] may delegate any power which it holds or derives underthis Act to:

(1) one or more of its members [of the Commission];(2) the [Executive] Director; or(3) one or more of its employees [of the Commission].


Sec. 3.05. INVESTIGATION; ENFORCEMENT. (a) Whenever the board[Commission] has reason to believe, through receipt of a complaint orotherwise, that a violation of this Act or a board [Commission] rule, order, ordecision has occurred or is likely to occur, the board [Commission] shallconduct an investigation unless it determines that a complaint is frivolous orfor the purpose of harassment. If the board's [Commission's] investigationestablishes that a violation of this Act or a board [Commission] rule, order ordecision has occurred or is likely to occur, the board [Commission] shallinstitute proceedings as it deems appropriate to enforce this Act or its rules,orders, and decisions.

(b) Notwithstanding Subsection (a) of this section or another provision ofthis Act or board rule, the board may not initiate a proceeding alleging aviolation of this Act or a board rule relating to advertising until the board hasnotified the licensee involved of the alleged violation and given the licenseean opportunity to cure the violation without further proceedings or liability.


Sec. 3.06. RULES. The authority to issue rules pursuant to this Act shallbe vested in the board [Commission]. After notice and hearing conducted bythe board [Commission] or by the [Executive] Director or his delegee inaccordance with Chapter 2001, Government Code, [the AdministrativeProcedure and Texas Register Act (Article 6252 13a, Vernon's Texas CivilStatutes)] and in compliance with this Act and the rules, decisions, and ordersof the board [Commission], the board [Commission] shall adopt such rules andamendments thereto and deletions therefrom as may be necessary or convenientto effectuate the provisions of this Act and to govern practice and procedurebefore the board [Commission]. Such rules shall become effective as soon asthe board [Commission], acting by and through its [Executive] Director,complies with the requirements of Chapter 2001, Government Code, [theAdministrative Procedure and Texas Register Act] regarding publication ofofficial agency rules.


Sec. 3.07. ORDERS AND DECISIONS. (a) An order or decision shall:(1) include a separate finding of fact with respect to each specific issue

the board is required by law to consider in reaching a decision;(2) set forth additional [the] findings of fact and conclusions of law

on which the order or decision is based; and(3) [shall] give the reasons for the particular actions taken.

(b) Except as provided by Section 6.07 of this Act, all orders and decisionsshall be signed on behalf of the board [Commission] by the Chairman or Vice-


chairman and attested by the [Executive] Director and shall have the sealaffixed.

SECTION 18. The Texas Motor Vehicle Commission Code (Article4413(36), Vernon's Texas Civil Statutes) is amended by adding Section 3.07Ato read as follows:

Sec. 3.07A. MEDIATION. (a) In this section, "mediation" means anonbinding forum in which an impartial person, the mediator, facilitatescommunication between parties to promote reconciliation, settlement, orunderstanding among them. A mediator may not impose his own judgment onthe issues for that of the parties.

(b) In an action brought by a franchised dealer whose franchise agreementprovides for arbitration in compliance with the terms of this Act, against amanufacturer or distributor under Section 5.02(b) of this Act, the board shallorder the parties to submit the dispute to mediation in the manner provided bythis section. The requirements of this subsection apply only if the dealer'sfranchise agreement contains no arbitration provision in conflict with the termsof this Act.

(c) If the applicability of Subsection (b) of this section is in dispute, theboard shall enter an order either that the franchise agreement in questioncontains a provision in conflict with the terms of this Act or that it does not.If the board finds that the franchise agreement in question contains noarbitration provision in conflict with this Act, the board shall order the partiesto proceed to mediation as provided by this section. An order issued underthis subsection is not appealable.

(d) The parties shall by agreement select a venue and schedule for amediation proceeding conducted under this section. Except as provided by thissubsection, if the parties are unable to agree on a venue and schedule, themediator shall select a venue and schedule. Except by written agreement ofall parties, a mediation proceeding under this section must be held in Texas.

(e) A person is qualified to serve as a mediator as provided by this sectionif the person is qualified to serve as a mediator under Section 154.052(a), CivilPractice and Remedies Code. The provisions of Sections 154.053 and 154.055,Civil Practice and Remedies Code, apply to a person employed to mediate adispute as provided by this section.

(f) A mediation proceeding under this section must be complete not laterthan the 60th day after the board orders the parties to mediate. The deadlineimposed by this subsection may be extended by the board at the request of allparties.

(g) Except as provided by this subsection, the provisions of Section154.073, Civil Practice and Remedies Code, apply to a mediation proceedingconducted under this section. If Section 154.073, Civil Practice and RemediesCode, is in conflict with another legal requirement for disclosure ofcommunications or materials, the issue of confidentiality may be presented tothe board to determine, in camera, whether the facts, circumstances, and contextof the communications or materials sought to be disclosed warrant a protectiveorder of the board or whether the communications or materials are subject todisclosure.

(h) By agreement, the parties shall select and compensate a mediator


employed under the terms of this section. The board is not liable for thecompensation paid or to be paid to a mediator employed as provided by thissection. Without regard to the outcome of the mediation proceeding orsubsequent regulatory or judicial proceedings, costs incurred by a party in amediation proceeding required by this section may not be taxed against theopposing party.

(i) The board retains jurisdiction of the subject matter of and parties to thedispute during the pendency of a mediation proceeding and may, on the motionof a party or on its own motion, enter appropriate orders.

(j) Except as provided by this section, a mediation proceeding maintainedas provided by this section does not affect procedural rights and duties conferredby this Act or by rules of the board. Procedural time limits imposed by thisAct or pursuant to the authority of this Act are tolled during the pendency ofa mediation proceeding brought under this section. A mediation proceedingmaintained as provided by this section does not affect the rights of a personwho is not a party to the mediation proceeding. The board shall stayproceedings involving the parties under mediation until receipt by the board ofthe mediator's certification that the mediation process is concluded.

(k) If a mediation proceeding brought under this section results in theresolution of the dispute, the board shall enter an order incorporating the termsof the agreement reached in mediation. If the mediation does not result in aresolution of the dispute, the board shall proceed to a contested case hearingor other appropriate exercise of its jurisdiction.

(l) This section does not apply to an action brought by the board to enforcethe terms of this Act.

(m) This section controls any other provision of law relating to or requiringmediation between or among licensees.


Sec. 3.08. HEARINGS; NOTICE; HEARING PROCEDURES;COMPLAINTS. (a) In this section, the term "contested case" has the meaninggiven it in Chapter 2001, Government Code. A hearing shall be conducted inall contested cases[, as defined in the Administrative Procedure and TexasRegister Act (Article 6252 13a, Vernon's Texas Civil Statutes),] which arise inconnection with this Act or any rule of the board [Commission]. All hearingsshall be conducted in accordance with this Act, the orders, decisions, or rulesof the board [Commission], and Chapter 2001, Government Code, [theAdministrative Procedure and Texas Register Act] to the extent that Chapter2001, Government Code, [the Administrative Procedure and Texas Register Act]does not conflict with this Act. A hearing may be informally disposed of inaccordance with Chapter 2001, Government Code [the Administrative Procedureand Texas Register Act]. Any hearing held under this section shall beconducted by the [Executive] Director or any Hearing Examiner, each of whommay be referred to in this Act as the "Examiner." The person or persons servingas Examiner in any contested case hearing are hereby delegated all the powerand authority which the board [Commission] has under this Act regarding theconduct of hearings, including, without limitation, the power to hold hearings,administer oaths, receive pleadings and evidence, issue subpoenas to compel the


attendance of witnesses, compel the production of papers and documents, issueinterlocutory orders, including cease and desist orders in the nature of temporaryrestraining orders and temporary injunctions, make findings of fact andconclusions of law, and issue proposals for decision and recommended finalorders.

(b) Notice of a hearing shall describe in summary form the purpose of thehearing and its date, time, and place.

(c) Notice of a rulemaking hearing shall be given in accordance withChapter 2001, Government Code, [the Administrative Procedure and TexasRegister Act (Article 6252-13a, Vernon's Texas Civil Statutes)] and the rulesof the board [Commission] not less than 30 days before the hearing date.Notice of a contested case hearing involving a licensee [license] shall be givenin accordance with this Act and the rules of the board [Commission].

(d) Notice of a contested case hearing shall be deemed to have beenreceived by any person if notice of the hearing was mailed to the last knownaddress, of any person known to have legal rights, duties, or privileges thatcould be determined at the hearing, not less than 10 days before the hearingdate. Notice of a hearing shall be given by certified mail, return receiptrequested. Notice may be given to any officer, agent, employee, legalrepresentative, or attorney of any person. Notice of any hearing may be waivedby any person.

(e) A hearing shall be convened [conducted] at the time and place statedin the hearing notice [or the hearing shall be rescheduled and an amended noticegiven]. Any hearing may be recessed until a time and place certain withoutfurther notice if the time and place is [continued from time to time and placeto place as] announced openly before the hearing is recessed. If the time andplace determined for the resumption of the hearing is not announced openlybefore the hearing is recessed, the hearing may be recessed to a time and placecertain[, without further notice, or otherwise,] by giving advance notice asrequired by Chapter 2001, Government Code [the Administrative Procedure andTexas Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)].

(f) Unless otherwise limited by this Act, any person whose legal rights,duties, or privileges are to be determined at any hearing shall have the rightto appear personally and by counsel, to cross-examine adverse witnesses, andto produce evidence and witnesses in the person's own behalf.

(g) In all contested cases the examiner shall serve on all parties a copy ofthe examiner's proposal for decision and recommended order containing findingsof fact and conclusions of law. A [shall be served on all parties and each] partymay file exceptions and replies to the board [Commission]. In its review ofthe case, the board may [After replies and exceptions have been timely filed,the Commission shall] consider only the materials timely submitted [by allparties]. The board [Commission] may receive such oral argument from anyparty as the board [Commission] may allow. The board [Commission] shalltake such further actions as are conducive to the issuance of a final order andshall thereafter issue a written final decision or order. The board's[Commission's] written final decision or order shall be signed on behalf of theboard [Commission] by the [Executive] Director. A majority vote of a quorumof the board [Commissioners] shall be required to adopt final decisions ororders of the board [Commission].


(h) A party who seeks a rehearing of an order shall do so in accordancewith the terms of Chapter 2001, Government Code [the AdministrativeProcedure and Texas Register Act (Article 6252-13a, Vernon's Texas CivilStatutes)].

(i) The owner of a motor vehicle or the owner's designated agent maymake a complaint concerning defects in a motor vehicle which are covered bya manufacturer's, converter's, or distributor's warranty agreement applicable tothe vehicle. Any such complaint must be made in writing to the applicabledealer, manufacturer, converter, or distributor and must specify the defects inthe vehicle which are covered by the warranty. The owner may also invokethe board's [Commission's] jurisdiction by sending the board [Commission] acopy of the complaint. A hearing may be scheduled on all complaints arisingunder this subsection which are not privately resolved between the owner andthe dealer, manufacturer, converter, or distributor.

(j) On motion of any party the board [Commission] may, by final order,and in accordance with the terms and procedures set forth in Rule 166a, TexasRules of Civil Procedure, dismiss a complaint, protest, or response withoutholding a contested case hearing.


Sec. 3.09. PROCEDURAL SUPREMACY [EFFECT ONADMINISTRATIVE PROCEDURE AND TEXAS REGISTER ACT]. In theevent of any conflict between Chapter 2001, Government Code, [theAdministrative Procedure and Texas Register Act (Article 6252-13a, Vernon'sTexas Civil Statutes)] and this Act, the provisions of this Act shall prevail.

SECTION 21. Section 4.01, Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended by amendingSubsection (b) and by adding Subsections (c) and (d) to read as follows:

(b) In the case of a nonfranchised dealer, the term "license" in this Actmeans a general distinguishing number [issued by the Department pursuant tothe authority of Article 6686, Revised Statutes]. A nonfranchised dealer maynot operate as a dealer without a valid general distinguishing number but is notrequired to obtain an additional license under the terms of this Act. Afranchised dealer shall have both a general distinguishing number and a separatelicense issued under the terms of this Act.

(c) Notwithstanding the terms of this Act, a franchised dealer is notrequired to have a lessor license or lease facilitator license to engage in anycapacity in the business of leasing motor vehicles that the dealer owns and islicensed by this Act to sell.

(d) A manufacturer or distributor that directly or indirectly reimbursesanother person to perform warranty repair services on a vehicle is engaged inbusiness in this state whether or not the manufacturer sells or offers for salenew motor vehicles in this state.

SECTION 22. Section 4.02(a), Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended to read asfollows:

(a) An application for a dealer license shall be on a form prescribed bythe board [Commission] which shall include the information required by Chapter503, Transportation Code [Article 6686, Revised Statutes], and information on


the applicant's financial resources, business integrity, business ability andexperience, franchise agreement if applicable, physical facilities, vehicleinventory, and other factors the board [Commission] considers necessary todetermine an applicant's qualifications to adequately serve the motoring public.

SECTION 23. Section 4.03, Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended by adding a newSubsection (e) to read as follows and by redesignating current Subsection (e)as Subsection (f):

(e) The terms and conditions of a franchise agreement are subject to theterms of this Act. A term or condition of a franchise agreement inconsistentwith the terms of this Act is not enforceable.

(f) [(e)] All licensees may apply for issuance of a license for eachsucceeding year by complying with the application process specified by this Actand the Commission's rules.

SECTION 24. Section 4.03A, Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended to read asfollows:

Sec. 4.03A. LESSOR APPLICATION. An application for a lessor licenseshall be on a form prescribed by the board [Commission] and shall containevidence of compliance with Chapter 503, Transportation Code [Article 6686,Revised Statutes], if applicable, and other information prescribed by the board[Commission]. This Act does not require a separate license for each individualemployee of a lessor.

SECTION 25. Section 4.05(a), Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), as amended by Chapters 345and 357, Acts of the 74th Legislature, Regular Session, 1995, is amended toread as follows:

(a) The annual license fees for licenses issued hereunder shall be asfollows:

(1) For each manufacturer and distributor, $900 plus $20 for eachindividual dealer franchised by the manufacturer or distributor.

(2) For each franchised dealer who sold 200 or fewer new motorvehicles during the preceding calendar year, $175.

(3) For each franchised dealer who sold more than 200, but not morethan 400, new motor vehicles during the preceding calendar year, $275.

(4) For each franchised dealer who sold more than 400, but not morethan 800, new motor vehicles during the preceding calendar year, $400.

(5) For each franchised dealer who sold more than 800 but not morethan 1,200 new motor vehicles during the preceding calendar year, $500.

(6) For each franchised dealer who sold more than 1,200 but not morethan 1,600 new motor vehicles during the preceding calendar year, $625.

(7) For each franchised dealer who sold more than 1,600 new motorvehicles during the preceding calendar year, $750.

(8) For each location separate from his dealership at which afranchised dealer offers no motor vehicle for sale, but performs warranty serviceon vehicles the dealer is franchised and licensed to sell, $100.

(9) [(10)] For each amendment to a dealer's license, $25.(10) [(8)] For each representative, $100.(11) [(9)] For each converter, $375.


(12) [(9)] For each lessor who leased 200 or fewer motor vehiclesduring the preceding calendar year, $175.

(13) [(10)] For each lessor who leased more than 200 but not morethan 400 motor vehicles during the preceding calendar year, $275.

(14) [(11)] For each lessor who leased more than 400 but not morethan 800 motor vehicles during the preceding calendar year, $400.

(15) [(12)] For each lessor who leased more than 800 but not morethan 1,200 motor vehicles during the preceding calendar year, $500.

(16) [(13)] For each lessor who leased more than 1,200 but not morethan 1,600 motor vehicles during the preceding calendar year, $625.

(17) [(14)] For each lessor who leased more than 1,600 motor vehiclesduring the preceding calendar year, $750.

(18) [(15)] For each lease facilitator, $375.SECTION 26. Section 4.06, Texas Motor Vehicle Commission Code (Article

4413(36), Vernon's Texas Civil Statutes), is amended to read as follows:Sec. 4.06. SANCTIONS; DENIAL, REVOCATION, OR SUSPENSION

OF LICENSE. (a) The board [Commission] may deny an application for alicense, revoke or suspend an outstanding license, or place on probation aperson whose license has been suspended, or reprimand a licensee, for any ofthe following reasons:

(1) Unfitness of an applicant or licensee under standards set out in thisAct or in board [Commission] rules.

(2) Material misrepresentation in any application or other informationfiled under this Act or board [Commission] rules.

(3) Failure to comply with this Act or any board [Commission] ruleor order promulgated by the board [Commission].

(4) Failure to maintain the qualifications for a license.(5) Willfully defrauding any retail buyer.(6) Violation of any law relating to the sale, distribution, financing,

or insuring of motor vehicles.(7) Any act or omission by an officer, director, partner, trustee, or

other person acting in a representative capacity for a licensee which act oromission would be cause for denying, revoking, or suspending a license to anindividual licensee.

(8) Failure to fulfill written agreements between the licensee and aretail buyer of a motor vehicle.

(b) The revocation of a license previously held under this Act may begrounds for denying a subsequent application for a license.

(c) The board [Commission] may deny an application to establish adealership if, after protest, the applicant fails to establish good cause therefor.In determining good cause, the board [Commission] shall consider:

(1) whether the manufacturer or distributor of the same line-make ofnew motor vehicle is being adequately represented as to sales and service;

(2) whether the protesting franchised dealer representing the same line-make of new motor vehicle is in substantial compliance with his franchiseagreement, to the extent that the franchise agreement is not in conflict with thisAct;

(3) the desirability of a competitive marketplace;


(4) any harm to the protesting franchised dealer; and(5) the public interest.

(d) A franchised dealer shall have standing under Subsection (c) of thissection to protest an application to establish or relocate a dealership if theperson filing the protest:

(1) is a franchised dealer of the same line-make whose dealership islocated in the county in which the proposed dealership site is to be located;or

(2) is a franchised dealer of the same line-make whose dealership islocated within a 15 mile radius of the proposed dealership site.

(e) Notwithstanding the terms [provisions] of Subsection (d) of this section,the relocation of a dealership is not subject to protest by a franchised dealer:

(1) if the proposed relocation site is not farther than one mile fromthe site from which the dealership is being relocated; or

(2) whose dealership is not closer to the proposed location than it isto the location from which the relocated dealership is being relocated.

(f) The revocation or suspension of a manufacturer's or distributor's licensemay be limited to one or more municipalities or counties or any other definedarea, or may be revoked or suspended in a defined area only as to certainaspects of its business, or as to a specified franchised dealer or franchiseddealers.

(g) No license shall be denied, revoked, or suspended, or disciplinary actiontaken under this section, except on order of the board [Commission] after ahearing. The board [Commission] may inspect the books and records of alicensee in connection with the performance of its duties under this Act.

(h) If a suspension of a license is probated, the board [Commission] may:(1) require the licensee to report regularly to the board [Commission]

on matters that are the basis of the probation; or(2) limit activities to those prescribed by the board [Commission].


Sec. 5.01. FRANCHISED DEALERS. It is unlawful for any franchiseddealer to:

(1) Require a retail purchaser of a new motor vehicle as a conditionof sale and delivery thereof to purchase special features, equipment, parts, oraccessories not ordered or desired by the purchaser, provided such features,equipment, parts, or accessories are not already installed on the new motorvehicle at the time of sale.

(2) Fail to perform the obligations placed on the selling franchiseddealer in connection with the delivery and preparation of a new motor vehiclefor retail sale as provided in the manufacturer's preparation and deliveryagreements on file with the Commission and applicable to such vehicle.

(3) Fail to perform the obligations placed on the franchised dealer inconnection with the manufacturer's warranty agreements on file with theCommission.

(4) Operate without appropriate signs readily and easily visible to thepublic, identifying the franchised dealer's place of business and the products thefranchised dealer offers for sale. In the event of a conflict with another law


or ordinance, this Subdivision prevails, and in the event of a dispute, the Boardhas exclusive jurisdiction to determine whether a sign or signs are in compliancewith the terms of this Subdivision. In the event of a dispute, the Board shalluphold local ordinances of a home-rule city and protect franchised dealers fromretribution by manufacturers or distributors for having complied with localordinances.

(5) [(7)] Directly or indirectly pay a fee to a lessor or lease facilitator.SECTION 28. Section 5.01A, Texas Motor Vehicle Commission Code

(Article 4413(36), Vernon's Texas Civil Statutes), is amended to read asfollows:

Sec. 5.01A. DEALERS. No dealer may:(1) use false, deceptive, or misleading advertising;(2) [operate as a dealer without a currently valid license or general

distinguishing number issued by the Board;[(3)] violate a rule of the Board; or(3) [(4)] aid or abet a person who violates this Act.

SECTION 29. The Texas Motor Vehicle Commission Code (Article4413(36), Vernon's Texas Civil Statutes) is amended by adding Section 5.01Bto read as follows:

Sec. 5.01B. TRANSFER OF OWNERSHIP BY DEALER; REJECTION;HEARING. (a) In order to transfer, assign, or sell a franchise agreement orcontrolling interest in the dealership to another person, a dealer shall notify themanufacturer or distributor whose vehicles the dealer is franchised to sell ofthe dealer's decision to transfer, assign, or sell the dealership. The notificationrequired by this subsection must be by certified mail, return receipt requested,and is the application by the dealer for approval by the manufacturer ordistributor of the transfer. The notice must be in writing and must include:

(1) the prospective transferee's name, address, financial qualifications,and business experience;

(2) a copy of pertinent agreements regarding the proposed transfer,assignment, or sale;

(3) completed application forms and related information generallyutilized by the manufacturer or distributor in reviewing prospective dealers, ifthe forms are on file with the board; and

(4) the prospective transferee's written agreement to comply with theterms of the franchise agreement to the extent that the franchise agreement isnot in conflict with the terms of this Act.

(b) Not later than the 60th day after receiving notice and application asprovided by Subsection (a) of this section, a manufacturer or distributor shalldetermine whether or not the dealer's prospective transferee is qualified andshall send a letter by certified mail, return receipt requested, informing thedealer of the approval of the prospective transferee or the unacceptability ofthe prospective transferee. If the prospective transferee is not acceptable, themanufacturer or distributor shall include a statement setting forth the materialreasons for the rejection. An application filed by a dealer as provided bySubsection (a) of this section is approved unless rejected by the manufactureror distributor in the manner provided by this subsection.

(c) Approval by a manufacturer or distributor of an application filed under


Subsection (a) of this section may not be unreasonably withheld. It isunreasonable for a manufacturer or distributor to reject a prospective transfereewho is of good moral character and who otherwise meets the manufacturer'sor distributor's written, reasonable, and uniformly applied standards orqualifications, if any, relating to the prospective transferee's:

(1) business experience; and(2) financial qualifications.

(d) A dealer whose application to transfer is rejected may file a protestwith the board in the manner provided by this Act. In an action brought underthis subsection, the burden is on the manufacturer or distributor to prove thatthe prospective transferee is not qualified. A protest filed under this subsectionis a contested case.

(e) The issue in an action filed under this section is whether or not theprospective transferee is qualified. The board shall enter an order holding thatthe prospective transferee either is qualified or is not qualified. If the board'sorder is that the prospective transferee is qualified, the dealer's franchiseagreement is amended to reflect the change in franchisee and the manufactureror distributor shall accept the transfer for all purposes. If the board's order isthat the prospective transferee is not qualified, the board may include specificreasons why the prospective transferee is not qualified and may include specificconditions under which the prospective transferee would be qualified.

(f) If the board's order that a prospective transferee is not qualified includesspecific conditions under which the prospective transferee would be qualified,the board may retain jurisdiction of the dispute for a time certain to allow thedealer and prospective transferee to meet the conditions set forth.

SECTION 30. Section 5.02(b), Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended to read asfollows:

(b) It is unlawful for any manufacturer, distributor, or representative to:(1) Require or attempt to require any dealer to order, accept delivery

of or pay anything of value, directly or indirectly, for any motor vehicle,appliance, part, accessory or any other commodity unless voluntarily orderedor contracted for by such dealer.

(2) Refuse or fail to deliver, in reasonable quantities and within areasonable time, to a dealer having a franchise agreement for the retail sale ofany motor vehicles sold or distributed by such manufacturer, distributor, orrepresentative, any new motor vehicle or parts or accessories to new motorvehicles as are covered by such franchise if such vehicle, parts or accessoriesare publicly advertised as being available for delivery or are actually beingdelivered; provided, however, this provision is not violated if such failure iscaused by acts of God, work stoppage or delays due to strikes or labor disputes,freight embargoes or other causes beyond the control of the manufacturer,distributor, or representative.

(3) Notwithstanding the terms of any franchise agreement:(A) Terminate or refuse to continue any franchise with a

dealer or directly or indirectly force or attempt to force a dealer to discontinuea line-make or parts or products related to that line-make unless all of thefollowing conditions are met:


(i) the dealer and the board [Commission] havereceived written notice by registered or certified mail from the manufacturer,distributor, or representative not less than 60 days before the effective date oftermination or noncontinuance setting forth the specific grounds for terminationor noncontinuance; and

(ii) the written notice contains on the first pagethereof a conspicuous statement which reads as follows: "NOTICE TODEALER: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THETEXAS MOTOR VEHICLE BOARD [COMMISSION] IN AUSTIN, TEXAS,AND HAVE A HEARING IN WHICH YOU MAY PROTEST THEPROPOSED TERMINATION OR NONCONTINUANCE OF YOURFRANCHISE UNDER THE TERMS OF THE TEXAS MOTOR VEHICLECOMMISSION CODE IF YOU OPPOSE THIS ACTION."; and

(iii) the manufacturer, distributor, or representativehas received the informed, written consent of the affected dealer or theappropriate period for the affected dealer to protest the proposed franchisetermination or noncontinuance has lapsed; or

(iv) if the affected dealer files a protest with theboard [Commission] within the greater of (1) 60 days after receiving its 60-day notice of proposed termination or noncontinuance or (2) the time specifiedin such notice, the board [Commission] determines that the party seeking toterminate or not continue a dealer's franchise has established by a preponderanceof the evidence, at a hearing called by the board [Commission], that there isgood cause for the proposed termination or noncontinuance.

(v) Notwithstanding Subdivisions (3)(A)(i) and(3)(A)(iv) of this section, notice may be made not less than 15 days prior tothe effective date of termination or noncontinuance if a licensed dealer fails toconduct its customary sales and service operations during its customary businesshours for seven consecutive business days unless such failure is caused by anact of God, work stoppage or delays due to strikes or labor disputes, an orderof the board [Commission], or other causes beyond the control of the dealer.

(B) Whenever a dealer files a timely protest to a proposedfranchise termination or noncontinuance, the board [Commission] shall notifythe party seeking to terminate or to not continue the protesting dealer's franchisethat a timely protest has been filed, that a hearing is required in accordancewith this Act, and that the party who gave the dealer notice of termination ornoncontinuance of the franchise may not terminate or refuse to continue thefranchise until the board [Commission] issues its final decision or order.

(C) If a franchise is terminated or not continued, anotherfranchise in the same line-make will be established within a reasonable timeunless it is shown to the board [Commission] by a preponderance of theevidence that the community or trade area cannot reasonably support such adealership. If this showing is made, no dealer license shall be thereafter issuedin the same area unless a change in circumstances is established.

(4) Notwithstanding the terms of any franchise agreement, modify orreplace a franchise [with a succeeding franchise] if the modification orreplacement would adversely affect, to a substantial degree, the dealer's sales,investment, or obligations to provide service to the public, unless the


manufacturer, distributor, or representative has first given the board[Commission] and each affected dealer written notice by registered or certifiedmail of any such action 60 days in advance of the modification or replacement.The written notice shall contain on the first page thereof a conspicuousstatement which reads as follows: "NOTICE TO DEALER: YOU MAY BEENTITLED TO FILE A PROTEST WITH THE TEXAS MOTOR VEHICLEBOARD [COMMISSION] IN AUSTIN, TEXAS, AND HAVE A HEARINGIN WHICH YOU MAY PROTEST THE PROPOSED MODIFICATION ORREPLACEMENT OF YOUR FRANCHISE [WITH A SUCCEEDINGFRANCHISE] UNDER THE TERMS OF THE TEXAS MOTOR VEHICLECOMMISSION CODE IF YOU OPPOSE THIS ACTION." Within the greaterof (1) 60 days after receipt of such notice or (2) the time specified in suchnotice, a dealer may file a protest with the board [Commission] and themodification or replacement shall not become effective unless and until theboard [Commission] determines that the party seeking to modify or replace afranchise [with a succeeding franchise] has demonstrated by a preponderanceof the evidence that there is good cause for the modification or replacement.The prior franchise shall continue in effect until the protest is resolved by theboard [Commission].

(5) Notwithstanding the terms of any franchise agreement, indetermining whether good cause has been established for modifying, replacing,terminating, or refusing to continue a franchise, or for forcing or attempting toforce a dealer to discontinue a line-make or parts or products related to thatline-make, the board [Commission] shall consider all the existing circumstancesincluding, without limitation by the enumeration herein, all the following:

(A) the dealer's sales in relation to the sales in the market;(B) the dealer's investment and obligations;(C) injury to the public welfare;(D) the adequacy of the dealer's service facilities, equipment,

parts, and personnel in relation to those of other dealers of new motor vehiclesof the same line-make;

(E) whether warranties are being honored by the dealer;(F) the parties' compliance with their franchise agreement

except to the extent that the franchise agreement is in conflict with this Act;and

(G) the enforceability of the franchise agreement from apublic policy standpoint, including, without limitation, issues of thereasonableness of the franchise agreement's terms, oppression, adhesion, and therelative bargaining power of the parties.

Good cause shall not be shown solely by the desire of a manufacturer,distributor, or representative for market penetration.

(6) Use any false, deceptive or misleading advertising.(7) Notwithstanding the terms of any franchise agreement, prevent any

dealer from reasonably changing the capital structure of his dealership or themeans by or through which he finances the operation thereof, provided that thedealer meets reasonable capital requirements.

(8) Notwithstanding the terms of any franchise agreement, fail to giveeffect to or attempt to prevent any sale or transfer of a dealer, dealership or


franchise or interest therein or management thereof except as provided bySection 5.01B [unless, after complaint or protest, it is demonstrated to theCommission after hearing that the result of any such sale or transfer will bedetrimental to the public or the representation of the manufacturer ordistributor].

(9) Notwithstanding the terms of any franchise agreement, require orattempt to require that a dealer assign to or act as an agent for anymanufacturer, distributor or representative in the securing of promissory notesand security agreements given in connection with the sale or purchase of newmotor vehicles or the securing of policies of insurance on or having to do withthe operation of vehicles sold.

(10) Notwithstanding the terms of any franchise agreement, fail orrefuse, after complaint and hearing, to perform the obligations placed on themanufacturer in connection with the delivery, preparation and warranty of a newmotor vehicle as provided in the manufacturer's warranty, preparation, anddelivery agreements on file with the board [Commission].

(11) Notwithstanding the terms of any franchise agreement, fail tocompensate its dealers for the work and services they are required to performin connection with the dealer's delivery and preparation obligations accordingto the agreements on file with the board [Commission] which must be foundby the board [Commission] to be reasonable, or fail to adequately and fairlycompensate its dealers for labor, parts and other expenses incurred by suchdealer to perform under and comply with a manufacturer's or a distributor'swarranty agreement, or require, as a prerequisite to the manufacturer's ordistributor's payment of a claim for reimbursement as required by this section,that a dealer file with the manufacturer or distributor the actual time spent inthe performance of labor unless actual time is the basis for reimbursement. Inno event shall any manufacturer or distributor pay its dealers an amount ofmoney for warranty work that is less than that charged by the dealer to theretail customers of the dealer for nonwarranty work of like kind. All claimsmade by dealers for compensation for delivery, preparation, and warranty workshall be paid within 30 days after approval and shall be approved ordisapproved within 30 days after receipt. When any claim is disapproved, thedealer shall be notified in writing of the grounds for disapproval. No claimwhich has been approved and paid may be charged back to the dealer unlessit can be shown that the claim was false or fraudulent, that the repairs werenot properly made or were unnecessary to correct the defective condition, orthat the dealer failed to reasonably substantiate the claim in accordance withreasonable written requirements of the manufacturer or distributor, if the dealerhas been notified of the requirements prior to the time the claim arose, and ifthe requirements were in effect at the time the claim arose. A manufactureror distributor may not audit a claim after the expiration of two years followingthe submission of the claim unless the manufacturer or distributor hasreasonable grounds to suspect that a claim was fraudulent. Notwithstanding theterms of a franchise agreement or provision of law in conflict with this section,the dealer's delivery, preparation, and warranty obligations as filed with theboard [Commission] shall constitute the dealer's sole responsibility for productliability as between the dealer and manufacturer or distributor, and, except for


a loss caused by the dealer's failure to adhere to these obligations, a loss causedby the dealer's negligence or intentional misconduct, or a loss caused by thedealer's modification of a product without manufacturer or distributorauthorization, the manufacturer or distributor shall reimburse the dealer for allloss incurred by the dealer, including legal fees, court costs, and damages, asa result of the dealer having been named a party in a product liability action.

(12) Operate as a manufacturer, distributor, or representative withouta currently valid license from the board [Commission] or otherwise violate thisAct or rules promulgated by the board [Commission] hereunder.

(13) Notwithstanding the terms of any franchise agreement, to preventor refuse to honor the succession to a dealership by any legal heir or deviseeunder the will of a dealer or under the laws of descent and distribution of thisState unless it is shown to the board [Commission], after notice and hearing,that the result of such succession will be detrimental to the public interest andto the representation of the manufacturer or distributor; provided, however,nothing herein shall prevent a dealer, during his lifetime, from designating anyperson as his successor dealer, by written instrument filed with the manufactureror distributor.

(14) Notwithstanding the terms of any franchise agreement, requirethat a dealer pay or assume, directly or indirectly, any part of any refund,rebate, discount, or other financial adjustment made by the manufacturer,distributor, or representative to, or in favor of, any customer of a dealer, unlessvoluntarily agreed to by such dealer.

(15) Notwithstanding the terms of any franchise agreement, deny orwithhold approval of a written application to relocate a franchise unless (A) theapplicant has received written notice of the denial or withholding of approvalwithin 60 days after receipt of the application containing information reasonablynecessary to enable the manufacturer or distributor to adequately evaluate theapplication, and if (B) the applicant files a protest with the board [Commission]and the manufacturer or distributor establishes by a preponderance of theevidence at a hearing called by the board [Commission] that the grounds forthe denial or withholding of approval of the relocation are reasonable.

(16) Notwithstanding the terms of any franchise agreement, fail to payto a dealer or any lienholder in accordance with their respective interest afterthe termination of a franchise:

(A) the dealer cost of each new motor vehicle in the dealer'sinventory with mileage of 6,000 miles or less, reduced by the net discount valueof each, where "net discount value" is determined according to the followingformula: net cost multiplied by total mileage divided by 100,000, and where"net cost" equals the dealer cost plus any charges by the manufacturer,distributor, or representative for distribution, delivery, and taxes, less allallowances paid to the dealer by the manufacturer, distributor, or representativefor new, unsold, undamaged, and complete motor vehicles of current model yearor one year prior model year in the dealer's inventory, except that if a vehiclecannot be reduced by the net discount value, the manufacturer or distributorshall pay the dealer the net cost of the vehicle;

(B) the dealer cost of each new, unused, undamaged, andunsold part or accessory if the part or accessory is in the current parts catalogue


and is still in the original, resalable merchandising package and in unbrokenlots, except that in the case of sheet metal, a comparable substitute for theoriginal package may be used, and if the part or accessory was purchased bythe dealer either directly from the manufacturer or distributor or from anoutgoing authorized dealer as a part of the dealer's initial inventory;

(C) the fair market value of each undamaged sign owned bythe dealer which bears a trademark or tradename used or claimed by themanufacturer, distributor, or representative if the sign was purchased from orpurchased at the request of the manufacturer, distributor, or representative;

(D) the fair market value of all special tools, data processingequipment, and automotive service equipment owned by the dealer which wererecommended in writing and designated as special tools and equipment andpurchased from or purchased at the request of the manufacturer, distributor, orrepresentative, if the tools and equipment are in usable and good conditionexcept for reasonable wear and tear;

(E) the cost of transporting, handling, packing, storing, andloading of any property subject to repurchase under this section;

(F) except as provided by this subdivision, any sums due asprovided by Paragraph (A) of this subdivision within 60 days after terminationof a franchise and any sums due as provided by Paragraphs (B) through (E)of this subdivision within 90 days after termination of a franchise. As acondition of payment, the dealer is to comply with reasonable requirements withrespect to the return of inventory as are set out in the terms of the franchiseagreement. A manufacturer or distributor shall reimburse a dealer for thedealer's cost for storing any property covered by this subdivision beginning 90days following termination. A manufacturer or distributor shall reimburse adealer for the dealer's cost of storing any property covered by this subdivisionbefore the expiration of 90 days from the date of termination if the dealernotifies the manufacturer or distributor of the commencement of storage chargeswithin that period. On receipt of notice of the commencement of storagecharges, a manufacturer or distributor may immediately take possession of theproperty in question by repurchasing the property as provided by thissubdivision. A manufacturer, distributor, or representative who fails to paythose sums within the prescribed time or at such time as the dealer andlienholder, if any, proffer good title prior to the prescribed time for payment,is liable to the dealer for:

(i) the greatest of dealer cost, fair market value, orcurrent price of the inventory;

(ii) interest on the amount due calculated at the rateapplicable to a judgment of a court; and

(iii) reasonable attorney's fees and costs.(17) Notwithstanding the terms of any franchise agreement, change its

distributor, its method of distribution of its products in this state, or its businessstructure or ownership in a manner that results in the termination ornoncontinuance of a franchise without good cause. The manufacturer,distributor, or representative shall issue the same notice to the dealer and to theboard [Commission] as is provided in Subdivisions (3)(A) and (B) of thissection and said same procedures shall apply to the parties.


(18) Notwithstanding the terms of any franchise agreement, require adealer to submit to arbitration on any issue unless the dealer and themanufacturer, distributor, or representative and their respective counsel agreeto arbitrate after a controversy arises. The arbitrator shall apply the provisionsof this Act in resolving the pertinent controversy. Either party may appeal tothe board [Commission] a decision of an arbitrator on the ground that thearbitrator failed to apply this Act.

(19) Notwithstanding the terms of any franchise agreement, requirethat a dealer join, contribute to, or affiliate with, directly or indirectly, anyadvertising association.

(20) Notwithstanding the terms of a franchise agreement:(A) require adherence to unreasonable sales or service

standards;(B) directly or indirectly, discriminate against a dealer or

otherwise treat dealers differently as a result of a formula or other calculationor process intended to gauge the performance of a dealership[, except a salescontest or other recognition program based on reasonable sales and servicecriteria];

(C) unreasonably require that a dealer purchase special toolsor equipment; or

(D) fail to compensate a dealer for all costs incurred by thedealer as required by the manufacturer in complying with the terms of a productrecall by the manufacturer or distributor, including the costs, if any, incurredby the dealer in notifying vehicle owners of the existence of the recall.

(21) Discriminate unreasonably between or among franchisees in thesale of a motor vehicle owned by the manufacturer or distributor.

(22) Directly or indirectly, or through a subsidiary or agent, require,as a condition for obtaining financing for a motor vehicle, the purchaser of avehicle to purchase any product other than the motor vehicle from themanufacturer or distributor, or from an entity owned or controlled by themanufacturer or distributor.

(23) Directly or indirectly, or through a subsidiary or agent, require,as a condition of its or its subsidiary's agreement to provide financing for amotor vehicle, that any insurance policy or service contract purchased by themotor vehicle purchaser be purchased from a specific source.

(24) Compel a dealer through a financing subsidiary of themanufacturer or distributor to agree to unreasonable operating requirements ordirectly or indirectly to terminate a dealer through the actions of a financingsubsidiary of the manufacturer or distributor. This subdivision does not limitthe right of a financing entity to engage in business practices in accordance withthe usage of trade in retail and wholesale motor vehicle financing.

(25) Operate as a dealer except on a temporary basis and only if:(A) the dealership was previously owned by a franchised

dealer and is currently for sale at a reasonable price; or(B) the manufacturer, distributor, or representative operates

the dealership in a bona fide relationship with a franchised dealer who isrequired to make a significant investment in the dealership, subject to loss, andwho reasonably expects to acquire full ownership of the dealership underreasonable terms and conditions.


(26) Notwithstanding the terms of a franchise agreement, deny orwithhold approval of a dealer's application to add a line-make or parts orproducts related to that line-make unless, within 60 days of receipt of thedealer's written application to add the line-make, the manufacturer or distributorgives the dealer written notice of the denial or withholding of approval. Afterreceipt of notice, the dealer may file a protest with the board [Commission].If the dealer files a protest as provided by this subdivision, the board[Commission] may uphold the manufacturer's or distributor's decision to denyor withhold approval of the addition of the line-make only if the manufactureror distributor proves by a preponderance of the evidence that the denial orwithholding of approval was reasonable. In determining whether or not themanufacturer or distributor has met its burden to show that its denial orwithholding of approval is reasonable, the board [Commission] shall considerall existing circumstances, including, without limitation, the following:

(A) the dealer's sales in relation to the sales in the market;(B) the dealer's investment and obligations;(C) injury to the public welfare;(D) the adequacy of the dealer's sales and service facilities,

equipment, parts, and personnel in relation to those of other dealers of newmotor vehicles of the same line-make;

(E) whether warranties are being honored by the dealeragreement;

(F) the parties' compliance with their franchise agreement tothe extent that the franchise agreement is not in conflict with this Act;

(G) the enforceability of the franchise agreement from apublic policy standpoint, including without limitation, issues of thereasonableness of the franchise agreement's terms, oppression, adhesion, and therelative bargaining power of the parties;

(H) whether the dealer complies with reasonable capitalizationrequirements or will be able to comply with reasonable capitalizationrequirements within a reasonable time;

(I) the harm, if any, to the manufacturer if the denial orwithholding of approval is not upheld; and

(J) the harm, if any, to the dealer if the denial or withholdingof approval is upheld.

(27) Fail or refuse to offer to its same line-make franchised dealersall models manufactured for that line-make, or require a dealer to pay any extrafee, purchase unreasonable advertising displays or other materials, or remodel,renovate, or recondition the dealer's existing facilities as a prerequisite toreceiving a model or series of vehicles.

(28) Require a dealer to compensate the manufacturer or distributor forany court costs, attorney's fees, or other expenses incurred in an administrativeor civil proceeding arising under this Act, except that this subdivision does notprohibit a manufacturer and dealer from entering into an agreement to sharecosts in a proceeding in which the dealer and manufacturer have the same orsimilar interests.


Sec. 6.02. INJUNCTION. Whenever it appears that a person has violated,


is violating, or is threatening to violate any provision of this Act or of any ruleor order of the board [Commission] issued pursuant to this Act [then] the board[Commission], or the [Executive] Director when authorized by the board[Commission], may cause a suit to be instituted in any court for injunctive reliefto restrain any such person from continuing the violation or threat of violationor for the assessment and recovery of a civil penalty as provided for in thisAct or for both injunctive relief and a civil penalty.


Sec. 6.03. SUIT. At the request of the board [Commission], or the[Executive] Director when authorized by the board [Commission], the AttorneyGeneral shall institute and conduct a suit in the name of the State of Texas forinjunctive relief or to recover a civil penalty or for both injunctive relief andpenalty.

SECTION 33. Section 6.06, Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), is amended by addingSubsection (g) to read as follows:

(g) A writ of error is allowed from the supreme court for an appeal froman interlocutory order described by Section 51.014(3) or 51.014(6), CivilPractice and Remedies Code, in a civil action involving a licensee. The writof error shall be given precedence by the supreme court over other writs oferror. The right to writ of error appeal is without prejudice to the right of anyparty to seek relief by application for leave to file petition for writ of mandamuswith respect to the order.

SECTION 34. Subsections (e), (g), and (j), Section 6.07, Texas MotorVehicle Commission Code (Article 4413(36), Vernon's Texas Civil Statutes),are amended to read as follows:

(e)(1) The board [Commission] shall adopt rules for the enforcement andimplementation of this section.

(2) The [Executive] Director shall, in accordance with rules adoptedby the board [Commission], conduct hearings and issue final orders for theenforcement and implementation of this section. Orders issued by the[Executive] Director under this section are considered final orders of the board[Commission].

(3) Except as provided by Subdivision (6) of this subsection, theprovisions of this section are not available to an owner in an action seeking arefund or replacement based upon the alleged nonconformity of a motor vehicleto an express warranty applicable to the motor vehicle unless the owner hasfirst exhausted the administrative remedies provided herein.

(4) The provisions of this section are not available to a party in anaction against a seller under Chapter 2 or Chapter 17, Business & CommerceCode, as amended.

(5) Except as provided by Subdivision (6) of this subsection, theprovisions of this section are available in an action against a manufacturer,converter, or distributor brought under Chapter 17, Business & Commerce Code,after the owner has exhausted the administrative remedies provided by thissection.

(6) If, after a complaint has been filed under this section, the Hearing


Examiner has not issued a proposal for decision and recommended to the[Executive] Director a final order before the expiration of the 150th day afterthe date the complaint was filed, the [Executive] Director shall, in writing sentby certified mail, so inform the complainant and the manufacturer, converter,or distributor of the expiration of the 150-day period and of the complainant'sright to file a civil action. The board [Commission] shall extend the 150-dayperiod if a delay is requested or is caused by the complainant.

(7) After receipt of the notice of the right to file a civil action, thecomplainant may file a civil action against one or more of the personscomplained of in the complaint.

(8) A failure by the board [Commission] to issue a notice of the rightto file a civil action does not affect a complainant's right to bring an actionunder this Act.

(9) Any party to a proceeding under this section before the [Executive]Director that is affected by a final order of the [Executive] Director is entitledto judicial review of the order under the substantial evidence rule in a DistrictCourt of Travis County, Texas. The judicial review is subject to Chapter 2001,Government Code, [the Administrative Procedure and Texas Register Act(Article 6252-13a, Vernon's Texas Civil Statutes)] except to the extent that thatAct is inconsistent with this Act.

(g) In a hearing under this section, the [Executive] Director shall make itsorder with respect to responsibility for payment of the cost of any refund orreplacement and no manufacturer, converter, or distributor may cause anyfranchised dealer to pay directly or indirectly any sum not specifically soordered by the [Executive] Director. If the [Executive] Director orders amanufacturer, converter, or distributor to refund or replace a motor vehiclebecause it meets the criteria set forth in this section, the [Executive] Directormay order the franchised dealer to reimburse the owner, lienholder,manufacturer, converter, or distributor only for items or options added to thevehicle by the franchised dealer and only to the extent that one or more of suchitems or options contributed to the defect that served as the basis for the[Executive] Director's order of refund or replacement. In a case involving aleased vehicle, the [Executive] Director may terminate the lease and apportionthe allowance for use and other allowances or refunds between the lessee andlessor of the vehicle.

(j)(1) A manufacturer, distributor, or converter that has been ordered torepurchase or replace a vehicle shall, through its franchised dealer, issue adisclosure statement stating that the vehicle was repurchased or replaced by themanufacturer, distributor, or converter under this section. The disclosurestatement must accompany the vehicle through the first retail purchase. Themanufacturer, distributor, or converter must restore the cause of the repurchaseor replacement to factory specifications and issue a new 12-month, 12,000-milewarranty on the vehicle. The disclosure statement must include a toll-freetelephone number of the board [Commission] that will enable a purchaser ofa repurchased or replaced vehicle to obtain information about the condition ordefect that was the basis of the order for repurchase or replacement. The board[Commission] shall adopt rules for the enforcement of this subdivision.

(2) The board [Commission] shall provide a toll-free telephone number


for providing information to persons who request information about a conditionor defect that was the basis for repurchase or replacement by an order of the[Executive] Director. The board [Commission] shall maintain an effectivemethod of providing information to persons who make the requests.

SECTION 35. Subsections (a), (c), and (d), Section 7.01, Texas MotorVehicle Commission Code (Article 4413(36), Vernon's Texas Civil Statutes),are amended to read as follows:

(a) Any party to a proceeding before the board [Commission] that isaffected by a final order, rule, decision, or other final action of the board[Commission] is entitled to judicial review of any such final board[Commission] action, under the substantial evidence rule, in a District Courtof Travis County, Texas, or in the Court of Appeals for the Third Court ofAppeals District, and to the extent not inconsistent herewith, pursuant to Chapter2001, Government Code [the Administrative Procedure and Texas Register Act(Article 6252-13a, Vernon's Texas Civil Statutes)]. Except as otherwiseprovided by this Act, an appeal [Appeals] initiated in the District Courts ofTravis County shall be removable to the Court of Appeals upon notice ofremoval to any such district court by any party at any time prior to trial in thedistrict court. Appeals initiated in or removed to the Court of Appeals shallbe initiated under Chapter 2001, Government Code, [the AdministrativeProcedure and Texas Register Act] as if initiated in a Travis County DistrictCourt and shall, upon the filing thereof, be thereafter governed by the TexasRules of Appellate Procedure.

(c) Citation must be served on the [Executive] Director. Citation must alsobe served on all other parties of record before the board [Commission]. Forappeals initiated in the Court of Appeals, the court shall cause citation to beissued.

(d) Appeals in which evidence outside the board's [Commission's] recordis to be taken under Chapter 2001, Government Code [Section 19(d)(3),Administrative Procedure and Texas Register Act (Article 6252-13a, Vernon'sTexas Civil Statutes)], or otherwise, shall be initiated in a Travis County DistrictCourt, or having been initiated in the Court of Appeals, shall be subject toremand to a Travis County District Court for proceedings in accordance withinstructions from the Court of Appeals.

SECTION 36. (a) Notwithstanding the terms of Section 5.02(b)(25), TexasMotor Vehicle Commission Code (Article 4413(36), Vernon's Texas CivilStatutes), a person who, on June 7, 1995, held both a motor home dealer'slicense and a motor home manufacturer's license issued pursuant to the termsof the Texas Motor Vehicle Commission Code (Article 4413(36), Vernon'sTexas Civil Statutes), may hold both a motor home dealer's license and a motorhome manufacturer's license as those terms are defined by the Texas MotorVehicle Commission Code (Article 4413(36), Vernon's Texas Civil Statutes).

(b) Subsection (a) of this section authorizes a person to operate as amanufacturer and a dealer of no vehicle or type of vehicle except a motor homeas that term is defined by the Texas Motor Vehicle Commission Code (Article4413(36), Vernon's Texas Civil Statutes).

SECTION 37. Notwithstanding the terms of Section 2.04, Texas MotorVehicle Commission Code (Article 4413(36), Vernon's Texas Civil Statutes),


of the members of the Motor Vehicle Board first appointed as a result of theincrease in the size of the board to nine members, as provided by provisionsof this Act amending Section 2.02, Texas Motor Vehicle Commission Code(Article 4413(36), Vernon's Texas Civil Statutes), to terms that begin onFebruary 1, 1998, the governor shall appoint:

(1) one dealer to a term that expires January 31, 2003;(2) one dealer to a term that expires January 31, 2001; and(3) one representative of a manufacturer or distributor to a term that

expires January 31, 1999.SECTION 38. (a) Section 33 of this Act applies to a civil action:

(1) commenced on or after the effective date of this Act; or(2) commenced before the effective date of this Act but pending on

the effective date of this Act and in which the trial, or any new trial or retrialfollowing motion, or appeal, or otherwise, begins on or after the effective dateof this Act, provided that the application for a writ of error under Section 33of this Act must be filed not later than the later of 30 days after the effectivedate of this Act, or the time specified by the Texas Rules of AppellateProcedure.

(b) An action commenced before the effective date of this Act and inwhich the trial or any new trial or retrial is in progress on the effective dateof this Act is governed by the law applicable to the action immediately beforethe effective date of this Act, and that law is continued in effect for thatpurpose.

SECTION 39. The importance of this legislation and the crowdedcondition of the calendars in both houses create an emergency and animperative public necessity that the constitutional rule requiring bills to be readon three several days in each house be suspended, and this rule is herebysuspended, and that this Act take effect and be in force from and after itspassage, and it is so enacted.


Amend CSHB 1595 by deleting the words "initiate a proceeding" on page8, line 8-30, and inserting the following after the word "not" on page 8, line8-29: "file a complaint".


Amend CSHB 1595 by inserting a new section on page 24, between lines42-43, appropriately numbered, to read as follows and renumbering subsequentsections accordingly:

SECTION _____. Article 7.02, Title 79, Revised Statutes (Article 5069-7.02, Vernon's Texas Civil Statutes), is amended by amending Article 7.02(9)(b)and adding Article 7.02(9)(c) to read as follows:

(b) Section (9)(a) of this Article does not apply to:(i) a lease;(ii) a retail installment transaction for a vehicle to be used primarily

for purposes other than personal, family, or household use;(iii) a transaction for which the payment schedule is adjusted to the

seasonal or irregular income or scheduled payments or obligations of the buyer;[or]


(iv) a transaction of a kind determined by the Commissioner as notrequiring the protection of the buyer provided in Section (9)(a) of this Article;or[.]

(v) a retail installment transaction for the sale of a new vehicle by aseller who is a franchised dealer licensed under the Motor Vehicle CommissionCode (Article 4413(36), Vernon's Texas Civil Statutes), in which the buyer isentitled, at the end of the term of the retail installment contract, to choose anyone of the following:

(A) sell the vehicle back to the holder according to a writtenagreement entered into between the buyer and holder concurrently with or asa part of the transaction and under which the buyer will be released fromliability or obligation for the final scheduled payment under the contract oncompliance with the agreement;

(B) to pay the final scheduled payment under the contract;or

(C) if the buyer is not in default under the contract, torefinance the final scheduled payment with the holder for repayment in not lessthan 24 equal monthly installment payments or on other terms agreed to by thebuyer and holder at the time of refinancing and at a rate of time pricedifferential not to exceed the lesser of:

(1) a rate of time price differential equivalent to themaximum rate authorized under Article 7.03 of this Title; or

(2) an annual percentage rate of five percent perannum more than the annual percentage rate of the original contract.

(c) A retail installment contract under Section (9)(b)(v) shall contain adisclosure that the refinancing may also be for any other period of time andpayment schedule to which the buyer and holder may mutually agree.


Representative Danburg called up with senate amendments for considerationat this time,

HB 332, A bill to be entitled An Act relating to election precincts andpolling places; providing a criminal penalty.

On motion of Representative Danburg, the house concurred in the senateamendments to HB 332.


CSHB 332, A bill to be entitled An Act relating to election precincts andpolling places; providing a criminal penalty.


SECTION 1. Section 42.0051, Election Code, is amended to read as follows:Sec. 42.0051. Combining Certain Precincts. (a) If changes in county

election precinct boundaries to give effect to a redistricting plan result in countyelection precincts with a number of registered voters less than 500, acommissioners court for a general or special election, or for a primary electionthe county executive committee of a political party conducting a primary


election, may combine county election precincts notwithstanding Section 42.005to avoid unreasonable expenditures for election equipment, supplies, andpersonnel.

(b) County election precincts in a county with a population of 250,000 ormore may also be combined under Subsection (a) if the changes result in countyelection precincts with 500 or more but fewer than 750 registered voters.

(c) A combined precinct under this section is subject to the maximumpopulation prescribed for a precinct under Section 42.006.

(d) [(c)] A combined precinct may not be established if it:(1) results in a dilution of voting strength of a group covered by the

federal Voting Rights Act (42 U.S.C. Section 1973c et seq.);(2) results in a dilution of representation of a group covered by the

Voting Rights Act in any political or electoral process or procedure; or(3) results in discouraging participation by a group covered by the

Voting Rights Act in any political or electoral process or procedure because ofthe location of a polling place or other factors.

SECTION 2. Section 43.031(d), Election Code, is amended to read asfollows:

(d) If a suitable public building is unavailable, the polling place may belocated in some other building, and any charge for its use is an electionexpense. A polling place may not be located in a building under this subsectionunless electioneering is permitted on the building's premises outside theprescribed limits within which electioneering is prohibited, except that a pollingplace may be located in a building at which electioneering is not permitted ifit is the only building available for use as a polling place in the electionprecinct.

SECTION 3. Section 61.001, Election Code, is amended to read as follows:Sec. 61.001. BYSTANDERS EXCLUDED; UNLAWFUL PRESENCE OF

CANDIDATE. (a) Except as permitted by this code, a person may not be inthe polling place from the time the presiding judge arrives there on electionday to make the preliminary arrangements until the precinct returns have beencertified and the election records have been assembled for distribution followingthe election.

(b) A candidate in the election commits an offense if the candidate is ina polling place during the period described by Subsection (a) for a purposeother than:

(1) voting; or(2) official business in the building in which the polling place is

located.(c) It is an exception to the application of Subsection (b) that the candidate:

(1) is not within plain view or hearing of the persons in the votingarea or the area in which voters are being accepted for voting; and

(2) is not engaged in campaign activity.(d) An offense under this section is a Class C misdemeanor.SECTION 4. Subchapter B, Chapter 85, Election Code, is amended by

adding Section 85.037 to read as follows:Sec. 85.037. BYSTANDERS EXCLUDED; UNLAWFUL PRESENCE OF

CANDIDATE. Section 61.001 applies to an early voting polling place except


that the period for which the conduct is proscribed is during the time the pollingplace is open for the conduct of early voting.

SECTION 5. Section 85.062(d), Election Code, is amended to read asfollows:

(d) In a primary election, the general election for state and county officers,or a special election to fill a vacancy in the legislature or in congress:

(1) the commissioners court of a county with a population of 400,000or more shall establish one or more early voting polling places other than themain early voting polling place in each state representative district containingterritory covered by the election, except that the polling place or places shallbe established in the state senatorial or congressional district, as applicable, ina special election to fill a vacancy in the office of state senator or United Statesrepresentative; [and]

(2) the commissioners court of a county with a population of 120,000[100,000] or more but less than 400,000 shall establish one or more early votingpolling places other than the main early voting polling place in eachcommissioners precinct containing territory covered by the election; and

(3) the commissioners court of a county with a population of 100,000or more but less than 120,000 shall establish one or more early voting pollingplaces as described by Subdivision (2) in each precinct for which thecommissioners court receives in time to enable compliance with Section 85.067a written request for that action submitted by at least 15 registered voters ofthat precinct.

SECTION 6. Section 112.006, Election Code, is amended to read as follows:Sec. 112.006. Place for Voting by Personal Appearance. A [(a) Except as

provided by Subsection (b), a person may vote a limited ballot by personalappearance only at an early voting polling place serving the voters of theelection precinct in which the person resides.

[(b) In a county with a population of more than 1,500,000, a] person mayvote a limited ballot by personal appearance only at the main early votingpolling place.

SECTION 7. Section 161.006, Election Code, is amended to read as follows:Sec. 161.006. Holding [Primary or] Precinct Convention of More Than One

Party in Same Building. A political party may not [hold a primary electionin the same building in which another party is holding a primary election onthe same day or] hold a precinct convention in the same building in whichanother party is holding a precinct convention on the same day unless:

(1) the rooms in which the [primary elections or] conventions are heldare separated so that communication from one room to the other is precluded;and

(2) a sign in bold print identifying the party holding the [primaryelection or] convention is posted at the entrance to each room.

SECTION 8. Section 172.1111, Election Code, is amended to read asfollows:

Sec. 172.1111. POSTING NOTICE OF PRECINCT CONVENTIONREQUIRED. (a) Before the opening of the polls, the presiding judge shall postat each outside door through which a voter may enter the building in whichthe polling place is located a written notice in bold print of the date, hour, andplace for convening the precinct convention.


(b) The judge is not required to use an officially prescribed form for thenotice.

(c) The notice must remain posted continuously through election day.SECTION 9. Section 271.003, Election Code, is amended to read as follows:Sec. 271.003. Location of Common Polling Place. (a) A regular county

polling place may be used for a common polling place in a joint election.(b) The voters of a particular election precinct or political subdivision may

be served in a joint election by a common polling place located outside theboundary of the election precinct or political subdivision if the location canadequately and conveniently serve the affected voters and will facilitate theorderly conduct of the election.

SECTION 10. This Act takes effect September 1, 1997.SECTION 11. The importance of this legislation and the crowded condition

of the calendars in both houses create an emergency and an imperative publicnecessity that the constitutional rule requiring bills to be read on three several daysin each house be suspended, and this rule is hereby suspended.


Representative Gray called up with senate amendments for considerationat this time,

HB 1445, A bill to be entitled An Act relating to the continuation andfunctions of the Texas Racing Commission and to the transfer of certaincommission functions to the Texas Department of Commerce; providingpenalties.

On motion of Representative Gray, the house concurred in the senateamendments to HB 1445. (Heflin, Howard, Rabuck, and Uher recorded votingno)


CSHB 1445, A bill to be entitled An Act relating to the continuation andfunctions of the Texas Racing Commission and to the transfer of certaincommission functions to the Texas Department of Commerce; providingpenalties.


SECTION 1. Section 1.02, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended to read as follows:

Sec. 1.02. PURPOSE [PURPOSES]. The purpose [purposes] of this Actis [are] to [encourage agriculture, the horse-breeding industry, the horse-trainingindustry, the greyhound-breeding industry, tourism, and employmentopportunities in this state related to horse racing and greyhound racing and to]provide for the strict regulation of horse racing and greyhound racing and thecontrol of pari-mutuel wagering in connection with that racing.

SECTION 2. Section 1.03, Texas Racing Act (Article 179e, Vernon's TexasCivil Statutes), is amended by adding Subdivisions (67)-(79) to read as follows:

(67) "Racetrack facility" means a facility operated by an associationwithin its enclosure for the purpose of presenting races for pari-mutuelwagering.


(68) "Child" means a person younger than 16 years of age.(69) "Minor" means a person younger than 21 years of age.(70) "Contraband" means:

(A) any item or thing the possession of which is unlawfulunder this Act, a commission rule, or other law;

(B) any item or thing that might reasonably have the effectof unnaturally depressing, stimulating, or exciting an animal during a race ina manner contrary to this Act or commission rule, including a prohibited deviceor substance; or

(C) a document, including a credential or forged ticket,possessed by an individual or used by an individual in violation of this Act ora commission rule.

(71) "Prohibited device" means:(A) a spur or an electrical or other device prohibited by a

commission rule regulating the unlawful influence of a race; or(B) a device specifically designed, made, or adapted to

influence or affect the outcome of a race in a manner contrary to this Act ora commission rule.

(72) "Prohibited substance" means a drug, chemical, or other substancethat:

(A) in its use or intended use, is reasonably capable ofinfluencing or affecting the outcome of a race in a manner contrary to this Actor a commission rule; and

(B) is prohibited by a commission rule regulating theunlawful influence of a race.

(73) "Unlawful touting" means an offense described by Section 14.01of this Act or a similar offense under the laws of another state.

(74) "Race" includes a live audio and visual signal of a race.(75) "Outstanding ticket" means a pari-mutuel ticket not presented for

payment before the end of the greyhound racing or horse racing day for whichthe ticket was purchased.

(76) "Pari-mutuel voucher" means a bearer instrument issued by a pari-mutuel wagering machine that represents money owned by a wagering patronand held by an association, including winnings from a pari-mutuel wager.

(77) "Horsemen's organization" means an organization recognized bythe commission that represents horse owners and trainers in negotiating andcontracting with associations on subjects relating to racing and in representingand advocating the interests of horse owners and trainers before administrative,legislative, and judicial forums.

(78) "Cross-species simulcast signal" means a simulcast signal of ahorse race at a greyhound racetrack facility or a simulcast signal of a greyhoundrace at a horse racetrack facility.

(79) "Simulcasting facility" means a facility that is registered with thecommission, that is owned or operated by a greyhound racetrack licensed bythe commission, and that is located outside the enclosure of a racetrack.

SECTION 3. Sections 2.02(a) and (b), Texas Racing Act (Article 179e,Vernon's Texas Civil Statutes), are amended to read as follows:

(a) The commission consists of six members appointed by the governorwith the advice and consent of the senate and two ex officio members who shall


have the right to vote. The ex officio members are:(1) the chairman of the Public Safety Commission or a member of the

Public Safety Commission designated by the chairman of the Public SafetyCommission; and

(2) the comptroller of public accounts or the comptroller's designee.[In making appointments to the commission, the governor shall strive to achieverepresentation by all the population groups of the state with regard to economicstatus, sex, race, and ethnicity.]

(b) Appointments to the commission shall be made without regard to therace, color, disability, sex, religion, age, or national origin of the appointees.[One appointed member must be a veterinarian licensed to practice in this statewho specializes in the treatment of small animals. One appointed member mustbe a veterinarian licensed to practice in this state who specializes in thetreatment of large animals. Two appointed members must be individuals whoare not veterinarians and who have special knowledge or experience related togreyhound racing. Two appointed members must be individuals who are notveterinarians and who have special knowledge or experience related to horseracing.]


Sec. 2.03. Term of office. (a) Appointed [Except for the initialappointments, appointed] members hold office for staggered terms of six yearswith two members' terms expiring February 1 of each odd-numbered year. Amember holds office until that member's successor is appointed and qualifies.

(b) [In making the initial appointments, the governor shall designate twoappointed members for a term expiring February 1, 1989, two for a termexpiring February 1, 1991, and two for a term expiring February 1, 1993. Thegovernor shall make the initial appointments on or before February 1, 1987.

[(c)] The ex officio members hold office on the commission for the timefor which they hold their other offices.

SECTION 5 . Section 2.05, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended to read as follows:

Sec. 2.05. Eligibility. (a) Four of the appointed members of thecommission must be representatives of the general public and have generalknowledge of business or agribusiness. One additional appointed member musthave special knowledge or experience related to greyhound racing and oneadditional appointed member must have special knowledge or experience relatedto horse racing. A person is not eligible for appointment as a member of thecommission if the person or the person's spouse:

(1) is licensed by the commission, except as a commissioner;(2) is employed by the commission or participates in the management

of a business entity or other organization regulated by the commission orreceiving funds from or through the commission;

(3) owns or controls, directly or indirectly, more than a 10 percentinterest in a business entity or other organization regulated by the commissionor receiving funds from or through the commission; or

(4) uses or receives a substantial amount of tangible goods, services,or funds from or through the commission, other than compensation orreimbursement authorized by law for commission membership, attendance, or


expenses.(b) In addition to the eligibility requirements of Subsection (a), a [A]

person is not eligible to be an appointed member of the commission if thatperson owns any financial interest in a racetrack or its operation or if thatperson is related within the second degree by affinity or the third degree byconsanguinity, as determined under Subchapter B, Chapter 573, GovernmentCode [Article 5996h, Revised Statutes], to a person who owns any financialinterest in a racetrack or its operation.

(c) Each person appointed to or employed by the commission is subjectto all background checks and qualification criteria required to hold a racetracklicense or other license under this Act.

(d) A person who has been convicted of a felony or of any crime involvingmoral turpitude is not eligible for appointment to the commission.

SECTION 6. Article 2, Texas Racing Act (Article 179e, Vernon's TexasCivil Statutes), is amended by adding Sections 2.071-2.074 to read as follows:

Sec. 2.071. CONFLICT OF INTEREST. (a) An officer, employee, orpaid consultant of a Texas trade association in the field of horse or greyhoundracing or breeding may not be a member of the commission or an employeeof the commission who is exempt from the state's position classification planor is compensated at or above the amount prescribed by the GeneralAppropriations Act for step 1, salary group 17, of the position classificationsalary schedule.

(b) A person who is the spouse of an officer, manager, or paid consultantof a Texas trade association in the field of horse or greyhound racing orbreeding may not be a member of the commission and may not be an employeeof the commission who is exempt from the state's position classification planor is compensated at or above the amount prescribed by the GeneralAppropriations Act for step 1, salary group 17, of the position classificationsalary schedule.

(c) For the purposes of this section, a Texas trade association is a nonprofitassociation of business or professional competitors in this state designed to assistits members and its industry or profession in dealing with mutual business orprofessional problems and in promoting their common interest.

Sec. 2.072. LOBBYIST RESTRICTION. A person may not serve as amember of the commission or act as the general counsel to the commission ifthe person is required to register as a lobbyist under Chapter 305, GovernmentCode, because of the person's activities for compensation on behalf of aprofession related to the operation of the commission.

Sec. 2.073. GROUNDS FOR REMOVAL. (a) It is a ground for removalfrom the commission if a member:

(1) does not have at the time of appointment the qualifications requiredby Section 2.02, 2.04, or 2.05 of this Act;

(2) does not maintain during service on the commission thequalifications required by Section 2.02 or 2.05 of this Act;

(3) violates a prohibition established by Section 2.05, 2.071, or 2.072of this Act;

(4) cannot because of illness or disability discharge the member'sduties for a substantial part of the term for which the member is appointed;or

(5) is absent from more than half of the regularly scheduled


commission meetings that the member is eligible to attend during a calendaryear.

(b) The validity of an action of the commission is not affected by the factthat it is taken when a ground for removal of a commission member exists.

(c) If the executive secretary has knowledge that a potential ground forremoval exists, the executive secretary shall notify the presiding officer of thecommission of the potential ground. The presiding officer shall then notify thegovernor and the attorney general that a potential ground for removal exists.If the potential ground for removal involves the presiding officer, the executivesecretary shall notify the next highest officer of the commission, who shallnotify the governor and the attorney general that a potential ground for removalexists.

Sec. 2.074. MEMBER TRAINING. (a) To be eligible to take office as amember of the commission, a person appointed to the commission mustcomplete at least one course of a training program that complies with thissection.

(b) The training program must provide information to the person regarding:(1) the enabling legislation that created the commission;(2) the programs operated by the commission;(3) the role and functions of the commission;(4) the rules of the commission with an emphasis on the rules that

relate to disciplinary and investigatory authority;(5) the current budget for the commission;(6) the results of the most recent formal audit of the commission;(7) the requirements of the:

(A) open meetings law, Chapter 551, Government Code;(B) open records law, Chapter 552, Government Code; and(C) administrative procedure law, Chapter 2001, Government

Code;(8) the requirements of the conflict of interests laws and other laws

relating to public officials; and(9) any applicable ethics policies adopted by the commission or the

Texas Ethics Commission.(c) A person appointed to the commission is entitled to reimbursement for

travel expenses incurred in attending the training program, as provided by theGeneral Appropriations Act and as if the person were a member of thecommission.


Sec. 2.10. PRESIDING OFFICER [CHAIRMAN]. The governor shalldesignate a public [one] member of the commission as the presiding officer[chairman] of the commission to serve in that capacity at the pleasure of thegovernor.

SECTION 8. Section 2.11, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended by amending Subsection (b) and addingSubsection (d) to read as follows:

(b) A majority of the commission constitutes a quorum. [A majority ofa section of the commission constitutes a quorum for purposes of conducting


business related to matters under the exclusive jurisdiction of that section.](d) The commission shall, by rule, develop and implement policies that

provide the public with a reasonable opportunity to appear before thecommission and to speak on any issue under the jurisdiction of the commission.

SECTION 9. Sections 2.12(b) and (c), Texas Racing Act (Article 179e,Vernon's Texas Civil Statutes), are amended to read as follows:

(b) The commission may not employ or continue to employ a person:(1) who owns or controls a financial interest in a licensee of the

commission [racetrack or its operation];(2) who is employed by or serves as a paid consultant to a licensee

of the commission, an official breed registry, or a Texas trade association, asdefined by Section 2.071(c) of this Act, in the field of horse or greyhoundracing or breeding [accepts any remuneration from a racetrack];

(3) who owns or leases a race animal that participates in pari-mutuelracing [is an owner, lessor, or lessee of a greyhound or a horse that is enteredin a race] in this state; or

(4) who accepts or is entitled to any part of the purse or Texas-bredincentive award [purse supplement] to be paid on a greyhound or a horse in arace conducted in this state.

(c) The commission may not employ or continue to employ a person whois residentially domiciled with or related within the first [second] degree byaffinity or [the third degree by] consanguinity to a person who is subject to adisqualification prescribed by Subsection (b) of this section.


Sec. 2.17. ANNUAL ACCOUNTING. The commission shall prepareannually a complete and detailed written report accounting for all funds receivedand disbursed by the commission during the preceding fiscal year. The annualreport must meet the reporting requirements applicable to financial reportingprovided in the General Appropriations Act.

Sec. 2.18. FUNDS PAID TO COMMISSION. All money paid to thecommission under this Act is subject to Subchapter F, Chapter 404, GovernmentCode.

Sec. 2.19. EMPLOYMENT PRACTICES. (a) The executive secretary orthe executive secretary's designee shall develop an intra-agency career ladderprogram that addresses opportunities for mobility and advancement foremployees within the commission. The program shall require intra-agencyposting of all positions concurrently with any public posting.

(b) The executive secretary or the executive secretary's designee shalldevelop a system of annual performance evaluations that are based ondocumented employee performance. All merit pay for commission employeesmust be based on the system established under this subsection.

(c) The executive secretary or the executive secretary's designee shallprepare and maintain a written policy statement to assure implementation of aprogram of equal employment opportunity under which all personneltransactions are made without regard to race, color, disability, sex, religion, age,or national origin. The policy statement must include:

(1) personnel policies, including policies relating to recruitment,


evaluation, selection, appointment, training, and promotion of personnel that arein compliance with the requirements of Chapter 21, Labor Code;

(2) a comprehensive analysis of the commission workforce that meetsfederal and state laws, rules, regulations, and instructions directly promulgatedfrom those laws, rules, and regulations;

(3) procedures by which a determination can be made about the extentof underuse in the commission workforce of all persons for whom federal orstate laws, rules, regulations, and instructions directly promulgated from thoselaws, rules, and regulations encourage a more equitable balance; and

(4) reasonable methods to appropriately address those areas ofunderuse.

(d) A policy statement prepared under Subsection (c) of this section mustcover an annual period, be updated annually and reviewed by the TexasCommission on Human Rights for compliance with Subsection (c)(1) of thissection, and be filed with the governor's office.

(e) The governor's office shall deliver a biennial report to the legislaturebased on the information received under Subsection (d) of this section. Thereport may be made separately or as a part of other biennial reports made tothe legislature.

Sec. 2.20. STANDARDS OF CONDUCT. The executive secretary or theexecutive secretary's designee shall provide to members of the commission andto agency employees, as often as necessary, information regarding theirqualification for office or employment under this Act and their responsibilitiesunder applicable laws relating to standards of conduct for state officers oremployees.

Sec. 2.21. DIVISION OF RESPONSIBILITY. The commission shall, byrule, develop and implement policies that clearly separate the policymakingresponsibilities of the commission and the management responsibilities of theexecutive secretary and the staff of the commission.

Sec. 2.22. PROGRAM AND FACILITY ACCESSIBILITY. Thecommission shall comply with federal and state laws related to program andfacility accessibility. The executive secretary shall also prepare and maintaina written plan that describes how a person who does not speak English can beprovided reasonable access to the commission's programs and services.

Sec. 2.23. INFORMATION TO PUBLIC. (a) The commission shallprepare information of public interest describing the functions of thecommission and the procedures by which complaints are filed with and resolvedby the commission. The commission shall make the information available tothe public and appropriate state agencies.

(b) The commission by rule shall establish methods by which racetrackpatrons are notified of the name, mailing address, and telephone number of thecommission for the purpose of directing complaints to the commission. Thecommission may provide for that notification:

(1) on every race performance program provided by each racetrackassociation; or

(2) on signs prominently displayed in the common public areas on thepremises of each racetrack association.

Sec. 2.24. COMPLAINT HANDLING. (a) The commission shall keep


information about each complaint filed with the commission. The informationshall include:

(1) the date the complaint is received;(2) the name of the complainant;(3) the subject matter of the complaint;(4) a record of all persons contacted in relation to the complaint;(5) a summary of the results of the review or investigation of the

complaint; and(6) for complaints for which the agency took no action, an explanation

of the reason the complaint was closed without action.(b) The commission shall keep a file about each written complaint filed

with the commission that the agency has authority to resolve. The commissionshall provide to the person filing the complaint and the persons or entitiescomplained about the commission's policies and procedures pertaining tocomplaint investigation and resolution. The commission, at least quarterly anduntil final disposition of the complaint, shall notify the person filing thecomplaint and the persons or entities complained about of the status of thecomplaint unless the notice would jeopardize an undercover investigation.

SECTION 11 . Section 3.02, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended to read as follows:

Sec. 3.02. Regulation and supervision. (a) The [In accordance withSection 3.01 of this Act, the] commission shall regulate and supervise everyrace meeting in this state involving wagering on the result of greyhound orhorse racing. All persons and things relating to the operation of those meetingsare subject to regulation and supervision by the commission. The commissionshall adopt rules for conducting greyhound or horse racing in this stateinvolving wagering and shall adopt other rules to administer this Act that areconsistent with this Act. The commission shall also make rules, issue licenses,and take any other necessary action relating exclusively to horse racing or togreyhound racing.

(b) The commission may establish separate sections to review or proposerules of the commission.

(c) The commission or a section of the commission shall hold a meetingon any proposed rule before the commission publishes the proposed rule in theTexas Register.

(d) The commission shall post notice of a meeting under Subsection (c)of this section at each racetrack facility. The notice shall include an agendaof the meeting and a summary of the proposed rule.

(e) A copy of a proposed rule published in the Texas Register shall alsobe posted concurrently at each racetrack facility.

(f) The commission or a section of the commission may appoint acommittee of experts, members of the public, or other interested parties toadvise the commission or section of the commission about a proposed rule ofthe commission.

(g) The commission, in adopting rules and in the supervision and conductof racing, shall consider the effect of a proposed commission action on thestate's agricultural, horse breeding, horse training, greyhound breeding, andgreyhound training industry.

SECTION 12. Section 3.021, Texas Racing Act (Article 179e, Vernon's


Texas Civil Statutes), is amended by amending Subsection (b) and addingSubsection (d) to read as follows:

(b) To protect the health, safety, and welfare of race animals andparticipants in racing, to safeguard the interest of the general public, and topromote the orderly [growth and] conduct of racing within the state, thecommission may adopt rules for the licensing and regulation of races andworkouts at racetracks that do not offer pari-mutuel wagering and for workoutsat training facilities to secure past performances and workouts.

(d) The commission may not adopt rules restricting competitive bidding oradvertising by a licensee except to prohibit false, misleading, or deceptivepractices. In its rules to prohibit false, misleading, or deceptive practices, thecommission may not include a rule that:

(1) restricts the use of any medium for advertising;(2) restricts the use of a licensee's personal appearance or voice in an

advertisement;(3) relates to the size or duration of an advertisement by the licensee;

or(4) restricts the licensee's advertisement under a trade name.


Sec. 3.03. Power of entry. A member of the commission, an authorizedagent of the commission, a commissioned officer of the Department of PublicSafety, or a peace officer of the local jurisdiction in which the associationmaintains a place of business may enter any part of the racetrack facility [theoffice, racetrack,] or any other place of business of an association at any timefor the purpose of enforcing and administering this Act.

SECTION 14. Sections 3.07(a), (b), (d), and (e), Texas Racing Act (Article179e, Vernon's Texas Civil Statutes), are amended to read as follows:

(a) The commission shall employ all of the judges and all of the stewardsfor the supervision of a horse race or greyhound race meeting. Each horse raceor greyhound race meeting shall be supervised by three stewards [approved bythe commission] for horse racing or by three judges [approved by thecommission] for greyhound racing. The commission shall designate one of thestewards or judges as the presiding steward or judge for each race meeting.The association, following the completion of the race meeting, may submitwritten comments to the commission regarding the job performance of thestewards and judges for the commission's review. Comments received are notbinding, in any way, on the commission. [The commission shall employ oneof the stewards who supervises a horse race meeting who shall be the presidingsteward. The other stewards at the race meeting shall be compensated by theassociation. The commission shall employ one of the judges who supervisesa greyhound race meeting who shall be the presiding judge; the other judgesat such a race meeting shall be compensated by the association.] For each racemeeting, the commission shall employ [appoint] at least one state veterinarian[who shall be compensated by the commission. The commission by rule shalldetermine the amount of compensation for stewards, judges, and stateveterinarians who are required to be compensated by the commission]. Thecommission may, by rule, impose a fee on an association to offset the costs


of compensating the [racetrack] stewards, judges, and state veterinarians [for thatassociation]. The amount of the fee for the compensation of stewards, judges,and state veterinarians must be reasonable according to industry standards forthe compensation of those officials at other racetracks and may not exceed theactual cost to the commission for compensating the officials. All otherracetrack officials shall be appointed by the association, with the approval ofthe commission. Compensation for those officials not compensated by thecommission shall be determined by the association.

(b) The commission shall make rules specifying the authority and the dutiesof each official, including the power of stewards or judges to impose penaltiesfor unethical practices or violations of racing rules. A penalty imposed by thestewards or judges may include a fine of not more than $5,000, a suspensionfor not more than one year, or both a fine and suspension. Before imposinga penalty under this subsection, the stewards and judges shall conduct a hearingthat is consistent with constitutional due process. A hearing conducted by asteward or judge under this subsection is not subject to Chapter 2001,Government Code. If, in the opinion of the stewards or judges, the allowablepenalties are not sufficient, the stewards or judges may refer the case to thecommission for further action.

(d) Medication or drug testing performed on a race animal under [Section14.03 of] this Act shall be conducted by a laboratory selected by thecommission on a yearly basis by competitive bidding submitted to thecommission for final approval. The commission's decision shall be based oncost and integrity. The Texas Veterinary Medical Diagnostic Laboratory mayaid the commission in its selection [either by the Texas Veterinary MedicalDiagnostic Laboratory or in conjunction with or by a private or public agencythat is approved by the commission and by the Texas Veterinary MedicalDiagnostic Laboratory]. Medication or drug testing performed on a humanunder [Section 14.03 of] this Act shall be conducted by a laboratory approvedby the commission. Charges for services performed under this section shall beforwarded to the commission for approval as to the reasonableness of thecharges for the services. Charges may include but are not limited to expensesincurred for travel, lodging, testing, and processing of test results. Thereasonable charges associated with medication or drug testing conducted underthis Act shall be paid by the association that receives the services. Thecommission shall adopt rules for the procedures for approving and payinglaboratory charges under this section. On the approval of the charges asreasonable, in relation to industry standards for testing charges, the commissionshall forward a copy of the charges to the association that receives the servicesfor immediate payment.

(e) To pay the charges associated with the medication or drug testing, anassociation may use the money held [retained] by the association to payoutstanding tickets and pari-mutuel vouchers [on tickets that are purchased aswagers on horses or greyhounds and that are not cashed by the holders of thetickets]. If additional amounts are needed to pay the charges, the associationshall pay those additional amounts. If the amount held [retained] exceeds theamount needed to pay the charges, the association shall pay the excess to thecommission in accordance with Section 11.08 of this Act.


SECTION 15. Section 3.08(b), Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended to read as follows:

(b) A [In determining the distribution to holders of winning tickets in apari-mutuel pool, a] decision of the stewards or judges on a disqualification fora foul in a race or on a finding of fact regarding the running of a race is finaland may not be appealed.


Sec. 3.13. RECOGNITION OF ORGANIZATION. (a) The commissionby rule shall adopt criteria to recognize an organization to represent membersof a segment of the racing industry, including owners, breeders, trainers, kenneloperators, or other persons involved in the racing industry, in any interactionbetween the members of the organization and an association or the commission.

(b) The commission may recognize an organization that meets therequirements of Subsection (a) of this section.

Sec. 3.14. DISCIPLINARY ACTIONS. The commission shall revoke,suspend, or refuse to renew a license, place on probation a person whose licensehas been suspended, or reprimand a licensee for a violation of this Act or arule of the commission. If a license suspension is probated, the commissionmay require the licensee to report regularly to the commission on matters thatare the basis of the probation.

Sec. 3.15. HEARING REQUIREMENTS. If the commission proposes tosuspend, revoke, or refuse to renew a person's license, the person is entitledto a hearing conducted by the State Office of Administrative Hearings.Proceedings for a disciplinary action, other than those conducted by racingstewards or judges, are governed by Chapter 2001, Government Code. Rulesof practice adopted by the commission under Section 2001.004, GovernmentCode, applicable to the proceedings for a disciplinary action, other than thoseconducted by racing stewards or judges, may not conflict with rules adoptedby the State Office of Administrative Hearings.

Sec. 3.16. RULES RELATING TO UNLAWFUL INFLUENCES ONRACING. (a) The commission shall adopt rules prohibiting a person fromunlawfully influencing or affecting the outcome of a race, including rulesrelating to the use of a prohibited device or prohibited substance at a racetrackor training facility.

(b) The commission may require prerace testing and shall require postracetesting to determine whether a prohibited substance has been used. The testingmay be by an invasive or noninvasive method. The commission's rules shallrequire state-of-the-art testing methods.

(c) Following the discovery of a prohibited device or a return of a testshowing the presence of a prohibited substance, a steward or judge maysummarily suspend a person who has used or administered the prohibited deviceor prohibited substance until a hearing before the stewards and judges. Thesteward or judge may also disqualify an animal as provided by a commissionrule adopted under this section.

(d) Except as otherwise provided, a person may appeal a ruling of thestewards or judges to the commission. The commission may stay a summarysuspension during the period the matter is before the commission.


(e) The commission may require urine samples to be frozen for a periodnecessary to allow any follow-up testing to detect and identify a prohibitedsubstance. Any other specimen shall be maintained for testing purposes in amanner required by commission rule.

(f) If a test sample or specimen shows the presence of a prohibitedsubstance, the entire sample, including any split portion remaining in thecustody of the commission, shall be maintained until final disposition of thematter.

(g) A licensee whose animal test shows the presence of a prohibitedsubstance is entitled to have a split portion of the test sample or specimen testedat a testing facility authorized to perform drug testing under this Act andselected by the licensee. The commission shall adopt rules relating to splittesting procedures.

(h) The licensed trainer of an animal is:(1) considered by law to be the absolute ensurer that no prohibited

substance has been administered to the animal; and(2) responsible for ensuring that no prohibited substance is

administered to the animal.(i) The commission shall adopt rules relating to the drug testing of

licensees.(j) A person who violates a rule adopted under this section may:

(1) have any license issued to the person by the commission revokedor suspended; or

(2) be barred for life or any other period from applying for orreceiving a license issued by the commission or entering any portion of aracetrack facility.

Sec. 3.17. SECURITY FOR FEES AND CHARGES. The commissionmay require an association to post security in an amount and form determinedby the commission to adequately ensure the payment of any fees or chargesdue to the state or the commission relating to pari-mutuel racing, includingcharges for drug testing.

Sec. 3.18. CEASE AND DESIST ORDER. (a) The executive secretarymay issue a cease and desist order if the executive secretary reasonably believesan association or other licensee is engaging or is likely to engage in conductthat violates this Act or a commission rule.

(b) On issuance of a cease and desist order, the executive secretary shallserve on the association or other licensee by personal delivery or registeredor certified mail, return receipt requested, to the person's last known address,a proposed cease and desist order. The proposed order must state the specificacts or practices alleged to violate this Act or a commission rule. The proposedorder must state its effective date. The effective date may not be before the 21stday after the date the proposed order is mailed or delivered. If the personagainst whom the proposed order is directed requests, in writing, a hearingbefore the effective date of the proposed order, the order is automatically stayedpending final adjudication of the order. Unless the person against whom theproposed order is directed requests, in writing, a hearing before the effectivedate of the proposed order, the order takes effect and is final and nonappealableas to that person.


(c) On receiving a request for a hearing, the executive secretary shall servenotice of the time and place of the hearing by personal delivery or registeredor certified mail, return receipt requested. At a hearing, the commission hasthe burden of proof and must present evidence in support of the order. Eachperson against whom the order is directed may cross-examine and show causewhy the order should not be issued.

(d) After the hearing, the commission shall issue or decline to issue a ceaseand desist order. The proposed order may be modified as necessary to conformto the findings at the hearing. An order issued under this section is final forpurposes of enforcement and appeal and shall require the person to immediatelycease and desist from the conduct that violates this Act or a commission rule.

(e) A person affected by a cease and desist order issued, affirmed, ormodified after a hearing may file a petition for judicial review in a district courtof Travis County under Chapter 2001, Government Code. A petition forjudicial review does not stay or vacate the order unless the court, after hearing,specifically stays or vacates the order.

Sec. 3.19. EMERGENCY CEASE AND DESIST ORDER. (a) Theexecutive secretary may issue an emergency cease and desist order if theexecutive secretary reasonably believes an association or other licensee isengaged in a continuing activity that violates this Act or a commission rule ina manner that threatens immediate and irreparable public harm.

(b) After issuing an emergency cease and desist order, the executivesecretary shall serve on the association or other licensee by personal deliveryor registered or certified mail, return receipt requested, to the person's lastknown address, an order stating the specific charges and requiring the personimmediately to cease and desist from the conduct that violates this Act or acommission rule. The order must contain a notice that a request for hearingmay be filed under this section.

(c) An association or other licensee that is the subject of an emergencycease and desist order may request a hearing. The request must be filed withthe executive secretary not later than the 10th day after the date the order wasreceived or delivered. A request for a hearing must be in writing and directedto the executive secretary and must state the grounds for the request to set asideor modify the order. Unless a person who is the subject of the emergency orderrequests a hearing in writing before the 11th day after the date the order isreceived or delivered, the emergency order is final and nonappealable as to thatperson.

(d) On receiving a request for a hearing, the executive secretary shall servenotice of the time and place of the hearing by personal delivery or registeredor certified mail, return receipt requested. The hearing must be held not laterthan the 10th day after the date the executive secretary receives the request fora hearing unless the parties agree to a later hearing date. At the hearing, thecommission has the burden of proof and must present evidence in support ofthe order. The person requesting the hearing may cross-examine witnesses andshow cause why the order should not be affirmed. Section 2003.021(b),Government Code, does not apply to hearings conducted under this section.

(e) An emergency cease and desist order continues in effect unless theorder is stayed by the executive secretary. The executive secretary may impose


any condition before granting a stay of the order.(f) After the hearing, the executive secretary shall affirm, modify, or set

aside in whole or part the emergency cease and desist order. An orderaffirming or modifying the emergency cease and desist order is final forpurposes of enforcement and appeal.

Sec. 3.20. VIOLATION OF FINAL CEASE AND DESIST ORDER. (a)If the executive secretary reasonably believes that a person has violated a finaland enforceable cease and desist order, the executive secretary may:

(1) initiate administrative penalty proceedings under Article 15 of thisAct;

(2) refer the matter to the attorney general for enforcement byinjunction and any other available remedy; or

(3) pursue any other action, including suspension of the person'slicense, that the executive secretary considers appropriate.

(b) If the attorney general prevails in an action brought under Subsection(a)(2) of this section, the attorney general is entitled to recover reasonableattorney's fees.

Sec. 3.21. INJUNCTION. The commission may institute an action in itsown name to enjoin the violation of this Act. An action for an injunction isin addition to any other action, proceeding, or remedy authorized by law.

Sec. 3.22. ENFORCEMENT REGARDING HORSEMEN'S ACCOUNT.(a) The commission, by rule, shall develop a system for monitoring theactivities of managers and employees of an association relating to thehorsemen's account. The monitoring system may include review of the financialoperations of the association, including inspections of records at the association'soffices, at any racetrack, or at any other place the association transacts business.

(b) The executive secretary may issue an order prohibiting the associationfrom making any transfer from a bank account held by the association for theconduct of its business under this Act, pending commission review of therecords of the account, if the executive secretary reasonably believes that theassociation has failed to maintain the proper amount of money in the horsemen'saccount. The executive secretary shall provide in the order a procedure for theassociation to pay certain expenses necessary for the operation of the racetrack,subject to the executive secretary's approval. An order issued under thissection may be made valid for a period not to exceed 14 days.

(c) The executive secretary may issue an order requiring the appropriatetransfers to or from the horsemen's account if, after reviewing the association'srecords of its bank accounts, the executive secretary determines there is animproper amount of money in the horsemen's account.

SECTION 17. Section 5.01(a), Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended to read as follows:

(a) The commission shall prescribe forms for applications for licenses andshall provide each occupational licensee with a license certificate or credentials.

SECTION 18. Sections 5.03(a) and (b), Texas Racing Act (Article 179e,Vernon's Texas Civil Statutes), are amended to read as follows:

(a) An applicant for any license under this Act must, except as allowedunder Section 7.10 of this Act, submit to the commission a complete set offingerprints of the individual natural person applying for the license or, if the


applicant is not an individual natural person, a complete set of fingerprints ofeach officer or director and of each person owning an interest of at least fivepercent in the applicant. The Department of Public Safety may request anyperson owning any interest in an applicant for a racetrack license to submit acomplete set of fingerprints.

(b) If a complete set of fingerprints is required by the commission, the[The] commission shall, not later than the next day after receiving the prints,forward the prints to the Department of Public Safety or the Federal Bureauof Investigation. If the prints are forwarded to the Department of Public Safety,the [The] department shall classify the prints and check them against itsfingerprint files and shall report to the commission its findings concerning thecriminal record of the applicant or the lack of such a record. A racetracklicense may not be issued until the report is made to the commission. Atemporary occupational license may be issued before a report is made to thecommission.

SECTION 19. Article 5, Texas Racing Act (Article 179e, Vernon's TexasCivil Statutes), is amended by adding Section 5.05 to read as follows:

Sec. 5.05. COST OF CRIMINAL HISTORY CHECK. (a) Thecommission shall, in determining the amount of a license fee, set the fee in anamount that will cover, at least, the cost of conducting a criminal history checkon the applicant for a license.

(b) The commission shall reimburse the Department of Public Safety forthe cost of conducting a criminal history check under this article.


Sec. 6.01. License required. A person may [shall] not conduct wageringon a greyhound race [meeting] or a horse race meeting without first obtaininga racetrack license from the commission [with wagering on the results withouta racetrack license]. A person who violates this section commits an offense.


(b) A class 1 racetrack is a racetrack on which live racing is conductedfor a number of days in a calendar year, the number of days and the actualdates to be determined by the commission under Article 8 of this Act. A class1 racetrack may operate only in a county with a population of not less than750,000, according to the most recent federal census, or in a county adjacentto a county with such a population. Not more than three [four] class 1racetracks may be licensed and operated in this state.

SECTION 22. Sections 6.04(a) and (d), Texas Racing Act (Article 179e,Vernon's Texas Civil Statutes), are amended to read as follows:

(a) The commission may issue a racetrack license to a qualified person ifit finds that the conduct of race meetings at the proposed track and locationwill be in the public interest, complies with all zoning laws, and complies withthis Act and the rules adopted by the commission and if the commission findsby clear and convincing evidence that the applicant will comply with allcriminal laws of this state. In determining whether to grant or deny anapplication for any class of racetrack license, the commission may consider [thedegree to which any of] the following factors [regarding the applicant's racetrack


or proposed race meeting serve to nurture, promote, develop, or improve thehorse or greyhound industry in this state]:

(1) the applicant's financial stability;(2) the applicant's resources for supplementing the purses for races for

various breeds;(3) the location of the proposed track;(4) the effect of the proposed track on traffic flow;(5) facilities for patrons and occupational licensees;(6) facilities for race animals;(7) availability to the track of support services and emergency services;(8) the experience of the applicant's employees;(9) the potential for conflict with other licensed race meetings;(10) the anticipated effect of the race meeting on the greyhound or

horse breeding industry in this state; and(11) the anticipated effect of the race meeting on the state and local

economy from tourism, increased employment, and other sources.(d) In considering an application for a class 4 racetrack license, the

commission may waive or defer compliance with the commission's standardsregarding the physical facilities or operations of a horse racetrack. Thecommission may not waive or defer compliance with standards that relate tothe testing of horses or licensees for the presence of a prohibited drug, chemical,or other substance [as provided by Section 14.03 of this Act]. If the commissiondefers compliance, the commission shall, when granting the application,establish a schedule under which the licensee must comply with the standards.

SECTION 23. Section 6.06, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended by amending Subsections (a), (b), (e), (f), and(g) and adding Subsection (i) to read as follows:

(a) To preserve and protect the public health, welfare, and safety, thecommission shall adopt rules relating to license applications, [renewalapplications,] the financial responsibility, moral character, and ability ofapplicants, and all matters relating to the planning, construction, and operationof racetracks. The commission may refuse to issue a [an original or renewal]racetrack license or may revoke or suspend a license if, after notice and hearing,it has reasonable grounds to believe and finds that:

(1) the applicant has been convicted in a court of competentjurisdiction of a violation of this Act or any rule adopted by the commissionor that the applicant has aided, abetted, or conspired with any person to commitsuch a violation;

(2) the applicant has been convicted of a felony or of any crimeinvolving moral turpitude, including convictions for which the punishmentreceived was a suspended sentence, probation, or a nonadjudicated conviction,that is reasonably related to the applicant's present fitness to hold a licenseunder this Act;

(3) the applicant has violated or has caused to be violated this Act ora rule of the commission in a manner that involves moral turpitude, asdistinguished from a technical violation of this Act or of a rule;

(4) the applicant is unqualified, by experience or otherwise, to performthe duties required of a licensee under this Act;


(5) the applicant failed to answer or falsely or incorrectly answered aquestion in an [original or renewal] application;

(6) the applicant fails to disclose the true ownership or interest in agreyhound or horse as required by the rules of the commission;

(7) the applicant is indebted to the state for any fees or for thepayment of a penalty imposed by this Act or by a rule of the commission;

(8) the applicant is not of good moral character or the applicant'sreputation as a peaceable, law-abiding citizen in the community where theapplicant resides is bad;

(9) the applicant has not yet attained the minimum age necessary topurchase alcoholic beverages in this state;

(10) the applicant is in the habit of using alcoholic beverages to anexcess or uses a controlled substance as defined in Chapter 481, Health andSafety Code, or a dangerous drug as defined in Chapter 483, Health and SafetyCode, or is mentally incapacitated;

(11) the applicant may be excluded from a track enclosure under[Article 13 or 14 of] this Act;

(12) the applicant has not been a United States citizen residing in thisstate for the period of 10 consecutive years immediately preceding the filingof the application;

(13) the applicant has improperly used a license certificate, credential,or identification card issued under this Act;

(14) the applicant is residentially domiciled with a person whoselicense has been revoked for cause within the 12 months immediately precedingthe date of the present application;

(15) the applicant has failed or refused to furnish a true copy of theapplication to the commission's district office in the district in which thepremises for which the permit is sought are located; [or]

(16) the applicant is engaged or has engaged in activities or practicesthat the commission finds are detrimental to the best interests of the public andthe sport of greyhound racing or horse racing; or

(17) the applicant fails to fully disclose the true owners of all interests,beneficial or otherwise, in a proposed racetrack facility.

(b) Subsection (a) of this section applies to a corporation, partnership,limited partnership, or any other organization or group whose application iscomprised of more than one person if a shareholder, partner, limited partner[if any], director, or officer is disqualified under Subsection (a) of this section.

(e) The [appropriate section of the] commission may condition the issuanceof a license under this article on the observance of its rules. The commissionmay amend the rules at any time and may condition the continued holding ofthe license on compliance with the rules as amended.

(f) The [appropriate section of the] commission may refuse to issue alicense or may suspend or revoke a license of a licensee under this article whoknowingly or intentionally allows access to an enclosure where greyhound racesor horse races are conducted to a person who has engaged in bookmaking,touting, or illegal wagering, whose income is from illegal activities orenterprises, or who has been convicted of a violation of this Act.

(g) A person awarded a management contract [by a nonprofit corporationlicensed under this Act] to operate a racetrack must meet all of the requirements


of this section.(i) Subsections (a)(12), (c), and (d) of this section do not apply to an

applicant for or the holder of a racetrack license if the applicant, the licenseholder, or the license holder's parent company is a publicly traded company.


Sec. 6.061. REGULATION OF INAPPROPRIATE OR UNSAFECONDITIONS. (a) The commission shall adopt rules implementing thissection, including rules:

(1) requiring the report of and correction of:(A) an inappropriate condition on the premises of a racetrack

facility, including a failure to properly maintain the facility, that interferes withthe administration of this Act; or

(B) a condition on the premises of a racetrack facility thatmakes the facility unsafe for a race participant, patron, or animal; and

(2) determining the methods and manner in which the executivesecretary may determine and remedy inappropriate conditions or unsafe facilitieson the premises of a racetrack facility, including the methods and manner inwhich the executive secretary may conduct inspections of the racetrack facilityand remedy emergency situations.

(b) The executive secretary shall issue a notice of violation to a racetrackfacility on a finding that an inappropriate or unsafe condition exists.

(c) If the executive secretary determines that an inappropriate or unsafecondition exists at the racetrack facility, the executive secretary shall order theracetrack facility to take action within a specified period to remedy theinappropriate condition or unsafe condition. In determining the period forcompliance, the executive secretary shall consider the nature and severity of theproblem and the threat to the health, safety, and welfare of the race participants,patrons, or animals.

(d) The commission shall adopt rules requiring the reporting of anycorrective action taken by a racetrack facility in response to an order of theexecutive secretary under Subsection (c) of this section.

(e) If a racetrack facility fails to take any action as required underSubsection (c) of this section, the executive secretary shall initiate anenforcement action against the racetrack facility. The executive secretary mayrescind any live or simulcast race date of any racetrack association that doesnot take corrective action within the period set by the executive secretary.

(f) The commission shall adopt rules relating to the commission's reviewof an action taken under this section by the executive secretary. A reviewprocedure adopted under this subsection must be consistent with Chapter 2001,Government Code.

Sec. 6.062. SUPERVISION OF CHANGES TO PREMISES. (a) Thecommission shall adopt a method of supervising and approving the construction,renovation, or maintenance of any building or improvement on the premises ofa racetrack facility.

(b) The commission shall adopt rules relating to:(1) the approval of plans and specifications;(2) the contents of plans and specifications;(3) the maintenance of records to ensure compliance with approved


plans and specifications;(4) the content and filing of construction progress reports by the

racetrack facility to the commission;(5) the inspection by the commission or others;(6) the method for making a change or amendment to an approved

plan or specification; and(7) any other method of supervision or oversight necessary.

(c) If the commission has grounds to believe that an association has failedto comply with the requirements of this section, a representative of theassociation shall appear before the commission to consider the issue ofcompliance with the rules adopted under this section.

(d) Before a building or improvement may be used by the association, thecommission shall determine whether the construction, renovation, ormaintenance of the building or improvement was completed in accordance withthe approved plans and specifications and whether other requirements of thecommission were met.

(e) If the commission determines that the association failed to comply witha requirement of this section or rule adopted under this section, the commissionshall initiate an enforcement action against the association. In addition to anyother authorized enforcement action, the commission may rescind any live orsimulcast race date of any association that has failed to comply with therequirement of this section.

Sec. 6.063. SUMMARY SUSPENSION. (a) The commission maysummarily suspend a racetrack license if the commission determines that aracetrack at which races or pari-mutuel wagering are conducted under thelicense is being operated in a manner that constitutes an immediate threat tothe health, safety, or welfare of the participants in racing or the patrons.

(b) After issuing a summary suspension order, the executive secretary shallserve on the association by personal delivery or registered or certified mail,return receipt requested, to the licensee's last known address, an order statingthe specific charges and requiring the licensee immediately to cease and desistfrom all conduct permitted by the license. The order must contain a notice thata request for hearing may be filed under this section.

(c) An association that is the subject of a summary suspension order mayrequest a hearing. The request must be filed with the executive secretary notlater than the 10th day after the date the order was received or delivered. Arequest for a hearing must be in writing and directed to the executive secretaryand must state the grounds for the request to set aside or modify the order.Unless a licensee who is the subject of the order requests a hearing in writingbefore the 11th day after the date the order is received or delivered, the orderis final and nonappealable as to that licensee.

(d) On receiving a request for a hearing, the executive secretary shall servenotice of the time and place of the hearing by personal delivery or registeredor certified mail, return receipt requested. The hearing must be held not laterthan the 10th day after the date the executive secretary receives the request fora hearing unless the parties agree to a later hearing date. At the hearing, thecommission has the burden of proof and must present evidence in support ofthe order. The licensee requesting the hearing may cross examine witnessesand show cause why the order should not be affirmed. Section 2003.021(b),


Government Code, does not apply to hearings conducted under this section.(e) A summary suspension order continues in effect unless the order is

stayed by the executive secretary. The executive secretary may impose anycondition before granting a stay of the order.

(f) After the hearing, the executive secretary shall affirm, modify, or setaside in whole or part the summary suspension order. An order affirming ormodifying the summary suspension order is final for purposes of enforcementand appeal.


(b)(1) A horse racing association shall set aside for purses an amount notless than seven percent of a live regular wagering pool or live multiple twowagering pool and not less than 8.5 percent of a live multiple three wageringpool.

(2) A horse racing association, after January 1, 1999, shall set asidefrom simulcast pools for purses not less than the following amounts from thetakeout of the sending racetrack:

(A) 38.8 percent of the regular wagering pool;(B) 33.3 percent of the multiple two wagering pool; and(C) 34 percent of the multiple three wagering pool.

If the cost of the simulcast signal exceeds five percent of the simulcast handle,the receiving horse racing association shall split the cost of the signal in excessof five percent evenly with the horsemen's organization by allocating the costagainst the purse money derived from that simulcast signal.

(3) The horse racing association shall transfer the amount set aside forpurses from any live and simulcast pools and shall deposit the amounts in purseaccounts maintained by breed by the horsemen's organization in one or morefederally insured depositories. Legal title to purse accounts is vested in thehorsemen's organization. The horsemen's organization may contract with anassociation to manage and control the purse accounts and to make disbursementsfrom the purse accounts:

(A) to an owner whose horse won a purse;(B) to the horsemen's organization for its expenses; or(C) for other disbursements as provided by contract between

the horsemen's organization and the association.(4) An association, after January 1, 1999, may pay a portion of the

revenue set aside under this subsection to an organization recognized underSection 3.13 of this Act, as provided by a contract approved by the commission.

SECTION 26. Section 6.09, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended by adding Subsection (f) to read as follows:

(f) The commission in adopting rules relating to money paid to thecommission for use by the state greyhound breed registry under Subsection (d)of this section shall require the award of a grant in an amount equal to twopercent of the amount paid to the commission for use by the state greyhoundbreed registry to a person for the rehabilitation of greyhounds or to locatehomes for greyhounds.



Sec. 6.091. DISPOSITION OF DEDUCTIONS FROM SIMULCASTPARI-MUTUEL POOLS. (a) An association shall distribute from the totalamount deducted as provided by Sections 6.08(a) and 6.09(a) of this Act fromeach simulcast pari-mutuel pool and each simulcast cross-species pool thefollowing shares:

(1)(A) until January 1, 1999, an amount equal to 0.25 [one] percentof each simulcast pari-mutuel pool and each simulcast cross-species simulcastpool as the amount set aside to reimburse the general revenue fund for amountsthat are appropriated for the administration and enforcement of this Act and thatare in excess of the cumulative amount of funds deposited in the Texas RacingCommission fund, until the excess amount and interest on the excess amountare fully reimbursed;

(B) an amount equal to one percent of each simulcast poolas the amount set aside for the state; and

(C) an amount equal to 1.25 percent of each cross-speciessimulcast pool as the amount set aside for the state;

(2) an amount equal to 0.25 percent of each pool set aside toreimburse the general revenue fund for amounts that are appropriated for theadministration and enforcement of this Act and that are in excess of thecumulative amount of funds deposited in the Texas Racing Commission fund,until the excess amount and interest on the excess amount are fully reimbursed[to the Texas Commission on Alcohol and Drug Abuse to be expended for theprevention of problem gambling];

(3) if the association is a horse racing association, an amount equalto one percent of a multiple two wagering pool or multiple three wagering poolas the amount set aside for the Texas-bred program to be used as provided bySection 6.08(f) of this Act;

(4) if the association is a greyhound association, an amount equal toone percent of a multiple two wagering pool or a multiple three wagering poolas the amount set aside for the Texas-bred program for greyhound races, to bedistributed and used in accordance with rules of the commission adopted topromote greyhound breeding in this state; and

(5) the remainder as the amount set aside for purses, expenses, thesending association, and the receiving location pursuant to a contract approvedby the commission between the sending association and the receiving location.

(b) Section 6.09(b)(1) of this Act does not apply to amounts deducted froma simulcast pari-mutuel pool in a greyhound race.

(c) A greyhound racetrack association that receives an interstate cross-species simulcast signal shall distribute the following amounts from the totalamount deducted as provided by Subsection (a) of this section from each poolwagered on the signal at the facility:

(1) a fee of 1.5 percent to be paid to the racetrack facility in this statesending the signal;

(2) a purse in the amount of 0.75 percent to be paid to the officialstate breed registry for thoroughbred horses for use as purses at racetracks inthis state;

(3) a purse in the amount of 0.75 percent to be paid to the officialstate breed registry for quarterhorses for use as purses at racetracks in this state;and


(4) a purse of 4.5 percent to be escrowed with the commission forpurses in the manner set forth in Subsection (e) of this section.

(d) A horse racetrack association receiving an interstate cross-speciessimulcast signal shall distribute the following amounts from the total amountdeducted as provided by Subsection (c) of this section from each pool wageredon the signal at the facility:

(1) a fee of 1.5 percent to be paid to the racetrack facility in this statesending the signal; and

(2) a purse in the amount of 5.5 percent to be paid to the official statebreed registry for greyhounds for use at racetracks in this state.

(e) The purse set aside under Subsection (c)(4) of this section shall bedeposited into an escrow account in the registry of the commission. Any Class1 racetrack association in this state may apply to the commission for receiptof all or part of the escrowed purse account for use as purses. The commissionshall determine to which Class 1 racetracks the escrowed purse account shallbe allocated and in what percentages, taking into consideration purse levels,racing opportunities, and the financial status of the requesting racetrack. Thefirst distribution of the escrowed purse account allocated to a racetrack underthis section may not be made before October 1, 1998.

(f) After October 15, 1998, a horse racetrack association that is located notmore than 75 miles from a greyhound racetrack facility that offers wageringon a cross-species simulcast signal may apply to the commission for anadditional allocation of up to 20 percent of the funds in the escrowed purseaccount that is attributable to the wagering on a cross-species simulcast signalat the greyhound racetrack facility, if the horse racetrack facility sends the cross-species simulcast signal to the greyhound racetrack. If the applying horseracetrack can prove to the commission's satisfaction that a decrease in theracetrack's handle has occurred that is directly due to wagering on an interstatecross-species simulcast signal at a greyhound racetrack facility that is locatednot more than 75 miles from the applying racetrack, the commission shallallocate the amounts from the escrowed purse account as the commissionconsiders appropriate to compensate the racetrack for the decrease, but theamount allocated may not exceed 20 percent of the funds in the escrowed purseaccount that are attributable to the wagering on the interstate cross-speciessimulcast signal at the greyhound racetrack facility. Any amount allocated bythe commission under this subsection may be used by the racetrack facility forany purpose.

(g) If a racing association purchases an interstate simulcast signal and thecost of the signal is more than five percent of the pari-mutuel pool, thecommission shall reimburse the racing association an amount equal to one-halfof the signal cost that is more than five percent of the pari-mutuel pool fromthe escrowed purse account under Subsection (c)(4) of this section.

(h) A greyhound racetrack facility offering wagering on an intrastate horserace simulcast signal shall send the purse amount set aside under Subsection(c)(4) of this section to the horse racetrack facility conducting the live horserace that is being simulcast.

(i) A racing facility conducting a live race that is being simulcast maycharge the receiving racetrack facility a host fee in addition to the amounts


described in this section.(j) The commission shall adopt rules relating to this section and the

oversight of amounts allocated under Subsections (c) and (d) of this section.SECTION 28. Article 6, Texas Racing Act (Article 179e, Vernon's Texas

Civil Statutes), is amended by adding Sections 6.092 and 6.093 to read asfollows:

Sec. 6.092. OVERSIGHT OF USE OF FUNDS GENERATED BY PARI-MUTUEL RACING. (a) The commission shall adopt reporting, monitoring,and auditing requirements or other appropriate performance measures for anyfunds distributed to or used by or any function or service provided by theexpenditure of any funds distributed to or used by any organization that receivesfunds generated by live or simulcast pari-mutuel racing.

(b) The commission shall adopt the requirements or performance measuresafter consultation with the affected organization. In adopting the rules, thecommission shall give consideration to the concerns of the affected organization.

(c) An organization receiving funds generated by live or simulcast pari-mutuel racing shall annually file with the commission a copy of an audit reportprepared by an independent certified public accountant. The audit shall includea verification of any performance report sent to or required by the commission.

(d) The commission may review any records or books of an organizationthat submits an independent audit to the commission as the commissiondetermines necessary to confirm or further investigate the findings of an auditor report.

(e) The commission by rule may suspend or withhold funds from anorganization that:

(1) it determines has failed to comply with the requirements orperformance measures adopted under Subsection (a) of this section; or

(2) has, following an independent audit or other report to thecommission, material questions raised on the use of funds by the organization.

Sec. 6.093. DEDUCTIONS FROM LIVE PARI-MUTUEL POOL. (a)(1)A horse racing association, until January 1, 1999, shall set aside for the state:

(A) an amount equal to one percent of each live pari-mutuelpool from the first $100 million of the total amount of all live pari-mutuel poolsof the association in a calendar year;

(B) an amount equal to two percent of each live pari-mutuelpool from the next $100 million of the total amount of all live pari-mutuelpools of the association in a calendar year;

(C) an amount equal to three percent of the next $100 millionof the total amount of all live pari-mutuel pools of the association in a calendaryear;

(D) an amount equal to four percent of the next $100 millionof the total amount of all live pari-mutuel pools of the association in a calendaryear; and

(E) an amount equal to five percent of each live pari-mutuelpool from the amount of all live pari-mutuel pools of the association in acalendar year not covered by Paragraphs (A) through (D) of this subdivision.

(2) A greyhound racing association, until January 1, 1999, shall setaside for the state:


(A) an amount equal to two percent of each live pari-mutuelpool from the first $100 million of the total amount of all live pari-mutuel poolsof the association in a calendar year;

(B) an amount equal to three percent of each live pari-mutuelpool from the next $100 million of the total amount of all live pari-mutuelpools of the association in a calendar year;

(C) an amount equal to four percent of each live pari-mutuelpool from the next $100 million of the total amount of all live pari-mutuelpools of the association in a calendar year;

(D) an amount equal to five percent of each live pari-mutuelpool from the total amount of all live pari-mutuel pools of the association ina calendar year not covered by Paragraphs (A) through (C) of this subdivision;and

(E) 50 percent of the breakage.(3) All amounts set aside by the association for the state in

Subdivisions (1) and (2) of this subsection shall be applied to the reimbursementof all amounts of general revenue appropriated for the administration andenforcement of this Act in excess of the cumulative amount deposited to theTexas Racing Commission fund until the earlier of:

(A) the excesses together with interest thereon are reimbursedin full; or

(B) January 1, 1999.(b) On or after January 1, 1999, a horse or greyhound racing association

shall set aside for the state from the live pari-mutuel pool at the association:(1) an amount equal to one percent of each live pari-mutuel pool from

the total amount of all live pari-mutuel pools of the association in a calendaryear in excess of $100 million but less than $200 million;

(2) an amount equal to two percent of each live pari-mutuel pool fromthe total amount of all live pari-mutuel pools of the association in a calendaryear in excess of $200 million but less than $300 million;

(3) an amount equal to three percent of each live pari-mutuel poolfrom the total amount of all live pari-mutuel pools of the association in acalendar year in excess of $300 million but less than $400 million;

(4) an amount equal to four percent of each live pari-mutuel pool fromthe total amount of all live pari-mutuel pools of the association in a calendaryear in excess of $400 million but less than $500 million; and

(5) an amount equal to five percent of each live pari-mutuel pool fromthe total amount of all live pari-mutuel pools of the association in a calendaryear in excess of $500 million.


Sec. 7.01. License required. A person may [shall] not participate in racingwith pari-mutuel wagering [as regulated by this Act] without first obtaining alicense from the commission. [A person who violates this section commits anoffense.]

SECTION 30. Section 7.02, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended by amending Subsection (a) and addingSubsections (c)-(e) to read as follows:

(a) Each person, other than a spectator or person placing a wager, involved


in any capacity with racing with pari-mutuel wagering under[, other than as aspectator, as regulated by] this Act[,] must obtain a license under this article.[A person who violates this subsection commits an offense.]

(c) If an examination is required for the issuance of a license under thisarticle, not later than the 30th day after the date on which a licensingexamination is administered under this Act, the commission shall notify eachexaminee of the results of the examination.

(d) If requested in writing by a person who fails a licensing examinationadministered under this Act, the commission shall furnish the person with ananalysis of the person's performance on the examination.

(e) The commission may not approve a management contract to operateor manage a racetrack owned by a governmental entity unless the racetracklicense holder is an owner of the entity that proposes to manage the racetrack.


Sec. 7.04. Licenses; grounds for denial, revocation, and suspension. Thecommission, after notice and hearing, may refuse to issue any original orrenewal license under this article or may revoke or suspend the license if it hasreasonable grounds to believe and finds that:

(1) the applicant has been convicted in a court of competentjurisdiction of a violation of this Act or of any rule adopted by the commissionor has aided, abetted, or conspired with any person to commit such a violation;

(2) the applicant has been convicted of a felony or of any crimeinvolving moral turpitude that is reasonably related to the applicant's presentfitness to hold a license under this Act;

(3) the applicant has violated or has caused to be violated this Act ora rule of the commission in a manner that involves moral turpitude, asdistinguished from a technical violation of this Act or of a rule;

(4) the applicant is unqualified, by experience or otherwise, to performthe duties required of a licensee under this Act;

(5) the applicant failed to answer or has falsely or incorrectly answereda question in an original or renewal application;

(6) the applicant fails to disclose the true ownership or interest in agreyhound or horse as required by the rules of the commission;

(7) the applicant is indebted to the state for any fees or for thepayment of a penalty imposed by this Act or by a rule of the commission;

(8) the applicant is not of good moral character or the applicant'sreputation as a peaceable, law-abiding citizen in the community where theapplicant resides is bad;

(9) the applicant is in the habit of using alcoholic beverages to anexcess or uses a controlled substance as defined in Chapter 481, Health andSafety Code, or a dangerous drug as defined in Chapter 483, Health and SafetyCode, or is mentally incapacitated;

(10) the applicant may be excluded from a track enclosure under[Article 13 or 14 of] this Act;

(11) the commission determines that the applicant has improperly useda temporary pass, license certificate, credential, or identification card issuedunder this Act;


(12) the applicant is residentially domiciled with a person whoselicense has been revoked for cause within the 12 months immediately precedingthe date of the present application;

(13) the applicant has failed or refused to furnish a true copy of theapplication to the commission's district office in the district in which thepremises for which the permit is sought are located; or

(14) the applicant is engaged or has engaged in activities or practicesthat are detrimental to the best interests of the public and the sport of horseracing or greyhound racing.


Sec. 7.05. License fees. (a) The commission shall adopt by rule a feeschedule for licenses issued under this article.

(b) The commission shall base the license fees on the relative orcomparative incomes or property interests of the various categories of licensees,with the lower income category of licensees being charged nearer the minimumfee and the higher income category of licensees charged nearer the maximumfee.

(c) In setting the fee schedule under Subsection (a) of this section, thecommission shall include the cost of criminal history checks determined underSection 5.05 of this Act. The commission may determine the best method forrecouping this cost and complying with the other provisions of this section,including collecting the costs over an extended period.


Sec. 7.07. Term of license. (a) A license issued under this article is validfor a period set by the commission not to exceed 36 months following the dateof its issuance. It is renewable on application and payment of the fee inaccordance with the rules of the commission.

(b) The commission by rule may adopt a system under which licensesexpire on various dates during the year. For the year in which the licenseexpiration date is changed, license fees shall be prorated on a monthly basisso that each licensee pays only that portion of the license fee that is allocableto the number of months during which the license is valid. On renewal of thelicense on the new expiration date, the total license renewal fee is payable.


Sec. 7.10. RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.(a) The commission may waive any prerequisite to obtaining a license for anapplicant, including any requirement to submit a set of fingerprints, afterreviewing the applicant's credentials and determining that the applicant holdsa valid license from another state that has license requirements substantiallyequivalent to those of this state.

(b) The commission may waive any prerequisite to obtaining a license,including any requirement to submit a set of fingerprints, for an applicant witha valid license from another state with which the State of Texas has areciprocity agreement. The commission may enter into reciprocal agreementswith other states to allow for licensing by reciprocity.



Sec. 9.01. Texas-bred horses. Subject to this Act or any rule of thecommission, the [The] state horse breed registries shall make reasonable rulesto establish the qualifications of accredited Texas-bred horses to promote,develop, and improve the breeding of horses in this state. Rules adopted by aregistry are subject to commission approval.


Sec. 10.04. Texas-bred greyhounds. (a) Subject to this Act or any rule ofthe commission, the [The] state greyhound breed registry shall make reasonablerules to establish the qualifications of accredited Texas-bred greyhounds topromote, develop, and improve the breeding of greyhounds in this state. Rulesadopted by the registry are subject to commission approval.

(b) The commission shall adopt standards relating to the operation ofgreyhound farms or other facilities where greyhounds are raised for pari-mutuelracing.

SECTION 37. Section 11.011, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended by amending Subsection (g) and addingSubsections (h)-(l) to read as follows:

(g) Nothing in this Act is to be construed to prohibit [allow] wagering ona simulcast horse race at a greyhound racetrack in this state, or to prohibit[permit] wagering on a simulcast greyhound race at a horse racetrack in thisstate. A horse racetrack may not be required to accept a greyhound simulcastsignal, nor may a greyhound racetrack be required to accept a horse simulcastsignal.

(h) Except as provided by this section, a horse racetrack facility that offerswagering on interstate greyhound race simulcast signals must do so as providedby a contract with the nearest greyhound racetrack. If an agreement betweenthe racetracks cannot be reached by October 1 of the year preceding thecalendar year in which the simulcasting is to occur, the horse racetrack maypurchase and offer wagering on greyhound race simulcast signals and shall paythe amounts specified under Subsection (d)(1) of this section to the nearestgreyhound racetrack.

(i) Except as provided by this section, a greyhound racetrack facility thatoffers wagering on interstate horse race simulcast signals must do so asprovided by a contract with the nearest Class 1 horse racetrack. If an agreementbetween the racetracks cannot be reached by October 1 of the year precedingthe calendar year in which the simulcasting is to occur, the greyhound racetrackmay purchase and offer wagering on interstate horse race simulcast signals andshall pay the amounts specified in Subsection (c)(1) of this section to the nearestClass 1 horse racetrack.

(j) A horse racetrack that offers wagering on interstate greyhound simulcastraces must offer wagering on all Texas greyhound races made available forsimulcast wagering. A greyhound racetrack that offers wagering on interstatehorse simulcast races must offer wagering on all Texas horse races madeavailable for simulcast wagering.

(k) Wagering on a simulcast greyhound race at a horse racetrack that


conducts its inaugural meet within 12 months of the effective date of this Actor at an operational horse racetrack within 60 miles of such racetrack may beconducted only pursuant to an agreement between said racetracks.

(l) Notwithstanding other provisions of law, a greyhound racing associationand the state greyhound breed registry must by contract agree that eachsimulcast contract to which the greyhound racing association is a party,including a simulcast contract with a horse racing association or a simulcastcontract with another greyhound racing association, include terms that provideadequately for the development of greyhound racing in this state. If agreyhound racing association and the state greyhound breed registry fail to reachan agreement, the racing association or the breed registry may submit thecontract negotiations for binding arbitration under Chapter 171, Civil Practiceand Remedies Code, and rules adopted by the commission. The arbitrationmust be conducted by a board of three arbitrators. The greyhound racingassociation shall appoint one arbitrator. The state greyhound breed registry shallappoint one arbitrator. The arbitrators appointed by the greyhound racingassociation and the state greyhound breed registry shall appoint the thirdarbitrator. A greyhound racing association and the state greyhound breedregistry shall each pay their own arbitration expenses. The greyhound racingassociation and the state greyhound breed registry shall equally pay thearbitrator fees and costs. This subsection does not apply to a contract that wasin effect before September 2, 1997.


Sec. 11.012. SIMULCASTING FACILITY PROGRAM. (a) Thecommission shall adopt rules to implement a program for the conduct ofsimulcasting at a simulcasting facility. The commission may allow the programto operate only in a county that has, before the effective date of this Act,approved pari-mutuel wagering and that is within a 50-mile radius of a licensedgreyhound racetrack that has ceased operations for a period of more than twoyears and has maintained its racetrack license with the commission.

(b) The commission may not register more than two simulcasting facilitiesunder this section.

(c) Nothing in this Act is to be construed to allow wagering at any locationother than a racetrack facility or a simulcasting facility registered under thissection.

(d) This section is repealed and expires on September 1, 2001, unlesscontinued in existence by the legislature.

SECTION 39. Section 11.04, Texas Racing Act (Article 179e, Vernon'sTexas Civil Statutes), is amended by amending Subsection (c) and addingSubsection (e) to read as follows:

(c) The commission shall adopt rules prohibiting an association fromaccepting a wager made on credit and shall adopt rules providing for the useof [prohibiting] automatic banking machines within the enclosure. Thecommission shall limit the use of an automatic banking machine to:

(1) allow a person to have access to only the person's checkingaccount at a bank or other financial institution; and

(2) deliver no more than $200.(e) An association that allows a machine in an enclosure as provided by


Subsection (c) shall collect a fee of $1 for each transaction under Subsection(c). The commission shall adopt rules providing for collection, reporting, andauditing of the transaction fee. The association shall forward the fee to thecommission. The commission shall deposit the fee to the credit of the generalrevenue fund.


Sec. 11.06. Minors. [(a)] The commission shall adopt rules to prohibitwagering by a minor [prevent wagering by persons who have not yet attainedthe minimum age required to purchase alcoholic beverages in this state] andto prohibit [prevent] a child [person under 16 years of age] from entering theviewing section of a racetrack unless accompanied by the child's [person's]parent or guardian. The rules may except any conduct described as anaffirmative defense by Section 14.13 of this Act [A person who intentionally,knowingly, recklessly, or with criminal negligence violates a rule adopted underthis section commits an offense. An offense under this section is a Class Bmisdemeanor].

[(b) A person commits an offense if the person intentionally or knowinglyengages in gaming at a racetrack when the person has not yet attained theminimum age required to purchase alcoholic beverages in this state. An offenseunder this subsection is a Class C misdemeanor.]


Sec. 11.08. Money not claimed. Not later than the 61st day after theclosing day of a race meeting, an association shall pay to the commission alldistributable money [in a pari-mutuel pool] that is subject to payment [to aclaimant] under Section 11.07 of this Act but that is not successfully claimedand that is not spent on drug testing under the provisions of this Act.


Sec. 11.09. No liability to prosecution. The defense to prosecution underChapter 47, Penal Code, that the conduct was authorized under this Act isavailable only to a person who is:

(1) [A person] lawfully conducting or participating in the conduct ofpari-mutuel wagering in connection with horse racing or greyhound racing; or

(2) permitting the lawful conduct of an activity described bySubdivision (1) of this section on any racetrack facility [on any premises ownedor leased by him or it under any license lawfully issued under this Act is notliable to prosecution for that conduct].


Sec. 13.03. CRIMINAL TRESPASS [Entry after ejection]. [(a)] A person,for the purposes of Section 30.05, Penal Code, is presumed to have receivednotice that entry to an enclosure was forbidden if the person:

(1) was excluded or ejected from the enclosure under this Act;(2) possessed, displayed, or used in the enclosure a credential that the

person was not authorized to use; or(3) entered the enclosure using a falsified credential [who has been

excluded or ejected from an enclosure under this article commits an offense if


the person knowingly enters an enclosure of the same or another licensedracetrack unless the commission or a final judgment of a court has ordered thatthe rule does not apply to the person].

[(b) An offense under this section is a Class A misdemeanor.[(c) The provisions of Section 7.22, Penal Code, imposing criminal

responsibility on a corporation or association for an offense committed by itsagent apply to conduct constituting an offense under this section that isperformed by an agent of a corporation or association.]

SECTION 44. Article 14, Texas Racing Act (Article 179e, Vernon's TexasCivil Statutes), is amended to read as follows:

ARTICLE 14. CRIMINAL [TOUTING AND OTHER] OFFENSESSec. 14.01. Touting. (a) A person commits an offense if, with an intent

to deceive and an intent to obtain a benefit [knowing the information is false],the person knowingly makes a false statement [or intentionally conveys] oroffers, agrees to convey, or conveys false information about a greyhound raceor horse race to another [others for compensation].

(b) Except as provided by Subsection (c) of this section, an offense underthis section is a Class A misdemeanor [felony of the third degree].

(c) An offense under this section is a state jail felony [of the seconddegree] if:

(1) the actor is a licensee under this Act or an employee or memberof the commission and the actor knowingly represents that a member [anofficial] or employee of the commission or a [of an association or an owner,trainer, jockey, or other] person licensed by the commission is the source ofthe false information; or

(2) the false statement or information was contained in racing selectioninformation provided to the public [the actor previously has been finallyconvicted of an offense under this section or has been convicted of a felonyfor which the punishment received was a suspended sentence, probation, or anonadjudicated conviction which has not yet been fully served].

[(d) The provisions of Section 7.22, Penal Code, imposing criminalresponsibility on a corporation or association for an offense committed by itsagent apply to conduct constituting an offense under this section that isperformed by an agent of a corporation or association.]

Sec. 14.02. Unlawful Possession or use of credential. (a) A personcommits an offense if the person knowingly or intentionally possesses ordisplays a [license or] credential or false credential that identifies [has beenissued or purports to have been issued by the commission and represents that]the person as [is] the holder of the [license or] credential and [when] the personknows:

(1) that the [license or] credential is not issued to the person; or(2) the person is not a licensee [if the person impersonates in any way

a person holding a license or credential issued by the commission].(b) An offense under this section is a Class C misdemeanor [felony of the

third degree].[(c) The provisions of Section 7.22, Penal Code, imposing criminal

responsibility on a corporation or association for an offense committed by itsagent apply to conduct constituting an offense under this section that isperformed by an agent of a corporation or association.


[Sec. 14.03. ILLEGAL INFLUENCE OF RACE OUTCOME. (a) Thecommission shall adopt rules prohibiting the illegal influencing of the outcomeof a race, including but not limited to the use of medication, stimulants, ordepressants to attempt to or to influence illegally the outcome of a race.

[(b) The commission may require prerace testing by any invasive ornoninvasive method or methods to determine whether such a drug, chemical,or other substance has been administered. The commission shall requirepostrace testing by such method or methods. The commission shall adopt rulesthat require all such tests to be conducted using state-of-the-art methods. Onany positive test showing the presence of prohibited drugs, chemicals, or othersubstances, the stewards or racing judges may summarily suspend any personwho has administered or applied the drug, chemical, or other substance or anyelectric device or spur pending hearing by the stewards or judges with the rightof appeal to the commission. Such a suspension may be stayed, in thediscretion of the commission only, during the pendency of such appeal. Inaddition, the stewards or racing judges may disqualify the affected animalpursuant to rules adopted by the commission under this section. Thecommission may require that urine samples be frozen and maintained for aperiod that will enable veterinarians and chemists to conduct follow-up tests todetect and identify prohibited drugs. All other specimens shall be maintainedfor testing purposes in the manner prescribed by the commission. In the eventa sample tests positive for a drug, chemical, or other substance, all samples,including the split portion, shall be maintained until the matter is finallyadjudicated. A licensee whose animal has tested positive for a drug, chemical,or other substance is entitled to have a split portion of the sample tested at atesting facility authorized to perform drug testing under Section 3.07 of this Actand selected by the licensee. The commission shall adopt rules regarding theprocedure for the split testing.

[(c) The official licensed trainer of each such animal is deemed by law tobe the absolute insurer that no prohibited drug, chemical, or other substancehas been administered and shall be responsible to see that such a drug,chemical, or other substance is not administered.

[(d) By applying for a license under this Act, each occupational licenseeconsents to both prerace and postrace search for the purpose of determining thepresence of such a drug, chemical, or other substance or of any electrical deviceor other device that might have the effect of unnaturally depressing, stimulating,or exciting any animal during a race. The commission shall adopt rules relatingto drug testing for occupational licensees.

[(e) A person who knowingly violates a rule adopted under this sectionmay be barred, either for a period set by the commission or for life, fromreceiving any license under this Act or may be barred for a period set by thecommission or for life from any premises licensed under this Act, or both.

[(f) A person who knowingly violates a rule adopted under this sectioncommits a felony of the third degree for the first offense and a felony of thesecond degree for a second or subsequent offense.

[(g) A person who gives, offers or promises to give, or attempts to giveor offer any money, bribe, or thing of value to any jockey, trainer, owner,groom, or other person associated with or interested in any stable, kennel, horse,or dog, or race in which any horse or dog participates, with the intention or


understanding or agreement that such individual shall not use his best effortsto win such race, or shall so conduct himself in such race that any otherparticipant shall thereby be assisted or enabled to win such race, or shall soconduct himself in such race as to limit his finishing or placing in such racecommits an offense. Such an offense is a felony of the third degree.

[(h) A person who accepts, attempts to accept, offers to accept, or agreesto accept any money, bribe, or thing of value, with the intention orunderstanding or agreement that he will not use his best efforts to win any horseor dog race, in which he is the jockey, trainer, groom, owner, or other interestedparty or is about to participate in, or will so conduct himself in such race thatany other horse or dog shall thereby be assisted or enabled to win such race,or will so conduct himself in such race as to limit his finishing or placing insuch race commits an offense. Such an offense is a felony of the third degree.

[(i) A person who gives, offers to give, promises to give, or attempts togive any money, bribe, or thing of value to any person who is presiding orofficiating at or who is about to preside or officiate at any dog or horse racewith the intention or agreement or understanding that such person shallcorruptly or dishonestly preside or officiate at any such race with the intentionor purpose that the result of the race will be affected or influenced therebycommits an offense. Such an offense is a felony of the third degree.]

Sec. 14.04. Illegal access. (a) A person commits an offense if the personis a licensee and the person [licensee who] knowingly or intentionally permits,facilitates, or allows access, to an enclosure where races are conducted, toanother [a] person who the person knows:

(1) has engaged in bookmaking, touting, or illegal wagering;(2) derives[, whose] income [is] from illegal activities or enterprises;(3) [, or who] has been convicted of a violation of this Act; or(4) is excluded by the commission from entering a racetrack facility[,

commits an offense].(b) An offense under this section is a Class B misdemeanor [felony of the

third degree].Sec. 14.05. RACES CONDUCTED ON CERTAIN INDIAN LANDS.

(a) A person who is subject to this section commits an offense if the personintentionally or knowingly wagers on the result of a greyhound race or horserace conducted in this state that:

(1) is held on an American Indian reservation or on American Indiantrust land located in this state; and

(2) is not held under the supervision of the commission under rulesadopted under this Act.

(b) An offense under this section is a felony of the third degree.(c) It is an exception to the application of this section that the person is

a member of a recognized Texas Indian tribe who lives on a reservation or ontrust lands located in this state.

Sec. 14.06. False statements. (a) A person commits an offense if theperson [intentionally,] knowingly[, recklessly, or with criminal negligence]makes a material and false, incorrect, or deceptive statement to another whois conducting an investigation or exercising discretion under this Act or a ruleadopted under this Act.


(b) In this section, the [The] term "statement" means a representation offact and includes[, but is not limited to]:

(1) a written or oral statement [statements]; or(2) a sworn or unsworn statement [statements].

(c) An offense under this section is a state jail felony unless the statementwas material in a commission action relating to a racetrack license, in whichevent the offense is a felony of the third degree.

Sec. 14.07. HINDERING OF ENTRY OR SEARCH. (a) A personcommits an offense if the person [intentionally, knowingly, recklessly, or] withcriminal negligence refuses, denies, or hinders entry to another who isexercising or attempting to exercise a power of entry under this Act or acommission rule.

(b) A person commits an offense if the person with criminal negligencerefuses, denies, hinders, interrupts, disrupts, impedes, or otherwise interfereswith a search by a person exercising or attempting to exercise a power to searchunder this Act or a commission rule.

(c) [(b)] An offense under this section is a Class B misdemeanor.Sec. 14.08. FORGING PARI-MUTUEL TICKET. (a) A person commits

an offense if the person intentionally or knowingly forges a pari-mutuel ticketwith the intent to defraud or harm another.

(b) In this section, "forge" has the meaning assigned by Section 32.21,Penal Code.

(c) An offense under this section is a felony of the third degree.Sec. 14.09. IMPERSONATING A LICENSEE. (a) A person commits an

offense if the person impersonates a licensee with the intent to induce anotherperson to submit to the actor's purported authority as a licensee or to rely onthe actor's actions as an alleged licensee.

(b) An offense under this section is a Class A misdemeanor.Sec. 14.10. UNLAWFUL INFLUENCE ON RACING. (a) A person

commits an offense if the person possesses a prohibited device or prohibitedsubstance on a racetrack facility, in an enclosure, or at a training facility.

(b) An offense under Subsection (a) of this section is a Class Amisdemeanor, unless the actor possessed the device or substance with the intentto influence or affect the outcome of a horse or greyhound race in a mannercontrary to this Act or a commission rule, in which event it is a state jail felony.

(c) A person commits an offense if, with the intent to influence or affecta horse or greyhound race in a manner contrary to this Act or a commissionrule, the person:

(1) uses or offers to use a prohibited device; or(2) uses or offers to use a prohibited substance.

(d) An offense under Subsection (c) of this section is a felony of the thirddegree.

Sec. 14.11. BRIBERY AND CORRUPT INFLUENCE. (a) A personcommits an offense if, with the intent to influence or affect the outcome of arace in a manner contrary to this Act or a commission rule, the person offers,confers, agrees to confer on another, or solicits, accepts, or agrees to acceptfrom another person any benefit as consideration for the actions of a personwho receives the benefit relating to the conduct, decision, opinion,


recommendation, vote, or exercise of discretion as a licensee or other personassociated with or interested in any stable, kennel, horse, greyhound, or horseor greyhound race.

(b) An offense under this section is a state jail felony, unless the recipientof the benefit is a steward, judge, or other racetrack official exercising authorityover a horse or greyhound race that the person providing or offering the benefitintended to influence, in which event it is a felony of the third degree.

Sec. 14.12. CRIMINAL CONFLICT OF INTEREST. A person who is amember of the commission commits an offense if the person:

(1) accepts, directly or indirectly, employment or remuneration froma racetrack facility, association, or other licensee, including a facility,association, or licensee located or residing in another state;

(2) wagers or causes a wager to be placed on the outcome of a horseor greyhound race conducted in this state; or

(3) accepts or is entitled to any part of a purse to be paid to an animalin a race conducted in this state.

Sec. 14.13. OFFENSES INVOLVING A MINOR. (a) A person commitsan offense if the person with criminal negligence permits, facilitates, or allows:

(1) wagering by a minor at a racetrack facility; or(2) entry by a child to the viewing section of a racetrack facility.

(b) An offense under Subsection (a) of this section is a Class Bmisdemeanor.

(c) A person commits an offense if the person is a minor and intentionallyor knowingly engages in wagering at a racetrack.

(d) An offense under Subsection (c) of this section is a Class Cmisdemeanor.

(e) It is an affirmative defense to prosecution of an offense underSubsection (a)(2) that a child was accompanied by and was in the physicalpresence of a parent, guardian, or spouse who was 21 years of age or older.

(f) It is an affirmative defense to prosecution of an offense underSubsection (a) of this section that the minor falsely represented the minor's ageby displaying to the person an apparently valid Texas driver's license oridentification card issued by the Department of Public Safety that contains aphysical description consistent with the minor's appearance.

Sec. 14.14. UNLAWFUL RACING. A person commits an offense if:(1) the person participates, permits, or conducts a greyhound or horse

race at a licensed racetrack facility;(2) the person wagers on the partial or final outcome of the greyhound

or horse race or knows or reasonably should know that another is betting onthe partial or final outcome of the race; and

(3) the race is not part of a performance or meeting conducted underthis Act or commission rule.

Sec. 14.15. PARI-MUTUEL RACING WITHOUT LICENSE. (a) Aperson commits an offense if, without a license, the person participates or isotherwise involved in, in any capacity, greyhound racing or horse racing withpari-mutuel wagering.

(b) It is an affirmative defense to prosecution under Subsection (a) of thissection that the actor was a spectator or a person placing a wager.


(c) An offense under Subsection (a) of this section is a Class Amisdemeanor, unless the actor was required by this Act to obtain a racetracklicense, in which event it is a state jail felony.

Sec. 14.16. RACING WITHOUT LICENSE. (a) A person commits anoffense if the person:

(1) conducts a greyhound or horse race without a racetrack license; and(2) knows or reasonably should know that another person is betting

on the final or partial outcome of the race.(b) An offense under this section is a felony of the third degree.Sec. 14.17. FAILURE TO DISPLAY CREDENTIAL. (a) A person

commits an offense if the person intentionally or knowingly:(1) fails or refuses to display a credential to another after a lawful

request; or(2) fails or refuses to give the person's name, residence address, or date

of birth to another after a lawful request.(b) In this section, "lawful request" means a request from the commission,

an authorized agent of the commission, the director or a commissioned officerof the Department of Public Safety, a peace officer, or a steward or judge atany time and any restricted location that:

(1) is on a racetrack facility; and(2) is not a public place.

(c) Except as provided by Subsection (d) of this section, an offense underthis section is a Class B misdemeanor.

(d) At the punishment stage of a trial for an offense under Subsection(a)(1) of this section, the defendant may raise an issue as to whether thedefendant was a licensee at the time of the offense. If the defendant proves theissue, the offense is a Class C misdemeanor.

Sec. 14.18. SEARCH AND SEIZURE. (a) A person consents to a searchat a time and location described in Subsection (b) of this section for aprohibited device, prohibited substance, or other contraband if the person:

(1) accepts a license or other credential issued under this Act; or(2) enters a racetrack facility under the authority of a license or other

credential alleged to have been issued under this Act.(b) A search may be conducted by a commissioned officer of the

Department of Public Safety or a peace officer, including a peace officeremployed by the commission, at any time and at any location that is on aracetrack facility, except a location:

(1) excluded by commission rule from searches under this section; or(2) provided by an association under commission rule for private

storage of personal items belonging to a licensee entering a racetrack facility.(c) A person conducting a search under Subsection (b) of this section may

seize any prohibited device, prohibited substance, or other contraband discoveredduring the search.

Sec. 14.19. PROSECUTION. A person who is subject to prosecution fora penal offense under this Act and another law may be prosecuted under eitherlaw.

Sec. 14.20. COMMISSION AUTHORITY. This article may not beconstrued to restrict the commission's administrative authority to enforce this


Act or commission rules to the fullest extent authorized by this Act.Sec. 14.21. VENUE FOR CRIMINAL PROSECUTION. The venue for the

prosecution of a criminal offense under this Act is in Travis County or in acounty where an element of the offense occurred.


Sec. 15.01. GENERAL PENALTY. If [With regard to any provision ofthis Act that is a penal offense, if] no specific penalty is provided for aprovision of this Act that is a penal offense, a person who violates the [sucha] provision commits a state jail felony [of the third degree].


Sec. 16.021. APPROVAL OF SIMULCAST RACES. The commissionerscourt of a county in which there is a racetrack conducting live racing, on itsown motion by a majority vote of its members, may order an election toapprove pari-mutuel wagering on simulcast greyhound or horse races.


(b) The ballots shall be printed to permit voting for or against theproposition: "Legalizing pari-mutuel wagering on horse races in __________County," [or] "Legalizing pari-mutuel wagering on greyhound races in__________ County," or "Authorizing pari-mutuel wagering on simulcast racesin _____ County," as appropriate.


(a) If a majority of the votes cast in the election are for the legalizationof pari-mutuel wagering on horse races or greyhound races in the county, orfor the authorization of pari-mutuel wagering on simulcast races in the county,as appropriate, the commissioners court shall certify that fact to the secretaryof state not later than the 10th day after the date of the canvass of the returns.


(a) The Texas Racing Commission is subject to Chapter 325, GovernmentCode (Texas Sunset Act). Unless continued in existence as provided by thatchapter, and except as provided by Subsections (b) and (c) of this section, thecommission is abolished and this Act expires September 1, 2005 [1997].


Sec. 18.06. Release of liability. A member of the commission, anemployee of the commission, a steward or judge, an association, a horsemen'sorganization, or any other person regulated under this Act is not liable to anyindividual, corporation, business association, or other entity for a cause of actionthat arises out of that person's performance or exercise of discretion in theimplementation or enforcement of this Act or a rule adopted under this Act ifthe person has acted in good faith.


Sec. 18.08. DISTANCE LEARNING. The commission may provide


assistance to members of the racing industry who are attempting to develop orimplement adult, youth, or continuing education programs that use distancelearning.

SECTION 52. Section 466.155(a), Government Code, is amended to readas follows:

(a) After a hearing, the director shall deny an application for a license orthe commission shall suspend or revoke a license if the director or commission,as applicable, finds that the applicant or sales agent:

(1) is an individual who:(A) has been convicted of a felony, criminal fraud, gambling

or a gambling-related offense, or a misdemeanor involving moral turpitude, ifless than 10 years has elapsed since the termination of the sentence, parole,mandatory supervision, or probation served for the offense;

(B) is or has been a professional gambler;(C) is married to an individual:

(i) described in Paragraph (A) or (B); or(ii) who is currently delinquent in the payment of

any state tax;(D) is an officer or employee of the commission or a lottery

operator; or(E) is a spouse, child, brother, sister, or parent residing as a

member of the same household in the principal place of residence of a persondescribed by Paragraph (D);

(2) is not an individual, and an individual described in Subdivision (1):(A) is an officer or director of the applicant or sales agent;(B) holds more than 10 percent of the stock in the applicant

or sales agent;(C) holds an equitable interest greater than 10 percent in the

applicant or sales agent;(D) is a creditor of the applicant or sales agent who holds

more than 10 percent of the applicant's or sales agent's outstanding debt;(E) is the owner or lessee of a business that the applicant or

sales agent conducts or through which the applicant will conduct a ticket salesagency;

(F) shares or will share in the profits, other than stockdividends, of the applicant or sales agent; or

(G) participates in managing the affairs of the applicant orsales agent;

(3) is currently delinquent in the payment of any state tax;(4) is a person whose location for the sales agency is:

(A) [a racetrack at which wagering is authorized under theTexas Racing Act (Article 179e, Vernon's Texas Civil Statutes);

[(B)] a location licensed for games of bingo under the BingoEnabling Act (Article 179d, Vernon's Texas Civil Statutes);

(B) [(C)] on land that is owned by:(i) this state; or(ii) a political subdivision of this state and on which

is located a public primary or secondary school, an institution of higher


education, or an agency of the state; or(C) [(D)] a location for which a person holds a wine and beer

retailer's permit, mixed beverage permit, mixed beverage late hours permit,private club registration permit, or private club late hours permit issued underChapter 25, 28, 29, 32, or 33, Alcoholic Beverage Code; or

(5) has violated this chapter or a rule adopted under this chapter.SECTION 53. Section 481.172, Government Code, is amended to read as

follows:Sec. 481.172. Duties. The department shall:

(1) promote and advertise within the United States and in foreigncountries, by radio, television, newspaper, and other means consideredappropriate, tourism in this state by non-Texans, including persons from foreigncountries, and distribute promotional materials through appropriate agencies,including the United States Travel and Tourism Agency;

(2) encourage travel by Texans to this state's scenic, historical, natural,agricultural, educational, recreational, and other attractions;

(3) coordinate and stimulate orderly and accelerated development oftourist attractions throughout this state;

(4) conduct a public relations campaign to create a responsible andaccurate national and international image of this state;

(5) cooperate fully with the Parks and Wildlife Department in allmatters relating to promotion of tourism;

(6) cooperate with the Texas Transportation Commission in theadministration of the commission's collateral program of highway mapdistribution and operation of travel information bureaus and other tourist-relatedfunctions of the commission; [and]

(7) encourage communities, organizations, and individuals in this stateto cooperate with its program by their activities and use of their own funds andcollaborate with those organizations and other governmental entities in thepursuit of the objectives of this subchapter; and

(8) promote and encourage the horse racing and greyhound racingindustry, if funds are appropriated for the promotion or encouragement.

SECTION 54. Sections 2.07, 3.01, 6.08(c), 6.09(b), 11.04(d), 15.02, and18.02, Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), arerepealed.

SECTION 55. (a) This Act takes effect September 1, 1997.(b) The changes in law made by this Act relating to the qualifications and

appointment of members to the Texas Racing Commission do not affect theentitlement of a member of the commission serving immediately before theeffective date of this Act to continue to serve on the commission for the termto which the member was appointed. As the terms of members of thecommission expire or as vacancies on the commission occur, the governor shallmake appointments to the commission to achieve as soon as possible themembership plan prescribed for the commission by the Texas Racing Act(Article 179e, Vernon's Texas Civil Statutes), as amended by this Act.

(c) The Texas Racing Commission shall review all of the rules of thecommission before January 1, 2002. The commission, following the review,shall readopt, modify, or repeal the rules before January 1, 2002. In reviewing


the rules of the commission, the commission shall, to the extent feasible,attempt to have uniform approaches to the regulation of activities related tohorse racing and greyhound racing.

(d) The authority for rulemaking and licensing and for any action relatingexclusively to horse racing or exclusively to greyhound racing that was grantedto a separate section of the Texas Racing Commission is transferred to theTexas Racing Commission.

SECTION 56. For the purpose of providing a fair and effective transitionfor the racing stewards and judges from employment by an association toemployment by the state, the Texas Racing Commission shall provide anopportunity for a steward or judge to obtain an exemption from the applicationof Section 2.12(c), Texas Racing Act (Article 179e, Vernon's Texas CivilStatutes), as amended by this Act. The request for an exemption must be filedby a judge or steward with the Texas Racing Commission on or before October31, 1997. The executive secretary may approve, limit, or deny the exemptionas determined to be appropriate under standards adopted by the commission topromote fairness and the purposes of this Act.

SECTION 57. All amounts, estimated to be $2,741,015 together with$194,741 in interest, that have been transferred into Fund 517 since fiscal year1992 are applied to reimburse any amount of general revenue appropriated forthe administration and enforcement of the Texas Racing Act that is in excessof the cumulative amount deposited in the Texas Racing Commission fund.

SECTION 58. For the purpose of providing a study of the growth andprogress of horse racing in this state, the lieutenant governor may create asenate interim committee to report to the 76th Legislature, Regular Session,1999. The committee shall consider the overall performance and growth of thestate's horse racing industry and the relationship between the thoroughbred andquarter horse breeds, the horse racing associations, and the Texas RacingCommission as that relationship relates to the availability of horse racingopportunities and live and simulcasting wagering. The Texas RacingCommission shall provide assistance to the interim committee.

SECTION 59. From September 1, 1997, through December 31, 1997, theTexas Racing Commission shall allow cross-species simulcasting to beconducted under the terms of an agreement, if an agreement exists, or, if noagreement exists, as provided by Section 6.091, Texas Racing Act (Article 179e,Vernon's Texas Civil Statutes), as amended by this Act.

SECTION 60. (a) The changes in law made by this Act apply only toan offense committed on or after the effective date of this Act. For purposesof this section, an offense is committed before the effective date of this Act ifany element of the offense occurs before the effective date.

(b) An offense committed before the effective date of this Act is coveredby the law in effect when the offense was committed, and the former law iscontinued in effect for this purpose.

SECTION 61. The importance of this legislation and the crowdedcondition of the calendars in both houses create an emergency and an imperative


public necessity that the constitutional rule requiring bills to be read on threeseveral days in each house be suspended, and this rule is hereby suspended.


Amend CSHB 1445 in SECTION 37 of the bill, in Section 11.011, TexasRacing Act (Article 179e, Vernon's Texas Civil Statutes) by adding a newSubsection (m) to read as follows:

"(m) The commission shall not approve wagering on an interstate simulcastrace unless the receiving location consents to wagering on interstate simulcastraces at all other receiving locations in this state."


Amend CSHB 1445 as follows:(1) In SECTION 27 of the bill, in added Section 6.091(d)(2), Texas Racing

Act (Article 179e, Vernon's Texas Civil Statutes) after the end of the sentenceending with the word "state" add the following sentence: "The breed registrymay use not more than 20 percent of this amount to administer this Subsection."

(2) In SECTION 37 of the bill, in added Section 11.011(1), Texas RacingAct (Article 179e, Vernon's Texas Civil Statutes) after the word "racing" add", breeding, purses and any actual or potential loss of live racing handle basedon the association's historical live racing schedule and handle".


Amend CSHB 1445 by adding a new SECTION, appropriately numbered,to read as follows:

SECTION _____. Section 151.0035, Tax Code, is amended to read asfollows:

Sec. 151.0035. "Data Processing Service""Data processing service" includes word processing, data entry, data

retrieval, data search, information compilation, payroll and business accountingdata production, the performance of a totalisator service with the use ofcomputational equipment required by the Texas Racing Act, (Article 179e,Vernon's Texas Civil Statutes) and other computerized data and informationstorage of manipulation. "Data processing service" also includes the use of acomputer or computer time for data processing whether the processing isperformed by the provider of the computer or computer time or by thepurchaser or other beneficiary of the service.


Amend CSHB 1445 as follows:(1) In SECTION 16 of the bill, in added Section 3.16, Texas Racing Act

(Article 179e, Vernon's Texas Civil Statutes) (committee printing, page 9, line50) strike the word "summary".

(2) In SECTION 27 of the bill, in added Section 6.091(d), Texas RacingAct (Article 179e, Vernon's Texas Civil Statutes) (committee printing, page 18,line 14) change "(c)" to "(a)".

(3) In SECTION 27 of the bill, in added Section 6.091(e), Texas RacingAct (Article 179e, Vernon's Texas Civil Statutes) (committee printing, page 18,lines 23 and 26) strike "Class 1" wherever it appears and substitute "horse".


(4) In SECTION 27 of the bill, strike added Section 6.091(h), TexasRacing Act (Article 179e, Vernon's Texas Civil Statutes) (committee printing,page 18, lines 59-63) and substitute the following:

"(h) A racetrack facility offering wagering on an intrastate cross-speciessimulcast signal shall send the purse amount specified under Subsection (c)(4)or (d)(2) of this section, as appropriate, to the racetrack facility conducting thelive race that is being simulcast."

(5) In SECTION 37 of the bill, in added Section 11.011(l), Texas RacingAct (Vernon's Texas Civil Statutes) (committee printing, page 23, line 11) strike"must" in the first sentence and substitute "shall".


Amend CSHB 1445 by striking SECTION 38 in its entirety.


Amend CSHB 1445 by striking, on page 2, line 15, Subsection (79),definition for simulcasting facility.

HB 966 - HOUSE REFUSES TO CONCURIN SENATE AMENDMENTS

CONFERENCE COMMITTEE APPOINTED

Representative Oakley called up with senate amendments for considerationat this time,

HB 966, A bill to be entitled An Act relating to water safety; providingpenalties.

Representative Oakley moved that the house not concur in the senateamendments and that a conference committee be requested to adjust thedifferences between the two houses on HB 966.


The speaker announced the appointment of the following conferencecommittee, on the part of the house, on HB 966: Oakley, chair, Kuempel,Kamel, Longoria, and Merritt.



Representative Swinford called up with senate amendments forconsideration at this time,

HB 381, A bill to be entitled An Act relating to a warranty claim by afarm, industrial, or outdoor power equipment dealer.

Representative Swinford moved that the house not concur in the senateamendments and that a conference committee be requested to adjust thedifferences between the two houses on HB 381.


The speaker announced the appointment of the following conferencecommittee, on the part of the house, on HB 381: Swinford, chair, Patterson,Chisum, Elkins, and Rhodes.




Representative Bosse called up with senate amendments for considerationat this time,

HB 1548, A bill to be entitled An Act relating to tuition and fees forcertain students registered in a public junior college.

Representative Bosse moved that the house not concur in the senateamendments and that a conference committee be requested to adjust thedifferences between the two houses on HB 1548.


The speaker announced the appointment of the following conferencecommittee, on the part of the house, on HB 1548: S. Turner, chair, Bailey, E.Reyna, Williams, and Yarbrough.


Representative Naishtat called up with senate amendments for considerationat this time,

HB 1990, A bill to be entitled An Act relating to advocates for survivorsof sexual assault and to confidential communications; providing a criminalpenalty.

On motion of Representative Naishtat, the house concurred in the senateamendments to HB 1990.


Amend HB 1990 as follows:On page 5, line 9, strike "may" and substitute "shall".


Representative Jackson called up with senate amendments for considerationat this time,

HB 2776, A bill to be entitled An Act relating to the regulation of statesuperfund sites.

On motion of Representative Jackson, the house concurred in the senateamendments to HB 2776.


CSHB 2776, A bill to be entitled relating to the regulation of statesuperfund sites.


SECTION 1. Section 361.133, Health and Safety Code, is amended byadding Subsections (g)-(i) to read as follows:


(g) Notwithstanding Subsection (c), the executive director may use moneyin the fund, including interest credited under Subsection (b)(4), for expensesconcerning a cleanup or removal of a spill, release, or potential threat of releaseof a hazardous substance if the site is eligible for listing under Subchapter F,proposed for listing under Subchapter F, or listed under the state registry beforeSeptember 1, 1989, and:

(1) immediate action is appropriate to protect human health or theenvironment and there is a substantial likelihood that the cleanup or removalwill prevent the site from needing to be listed under Subchapter F; or

(2) a cleanup or removal:(A) can be completed without extensive investigation and

planning; and(B) will achieve a significant cost reduction for the site.

(h) If the commission collects a fee that is deposited in a dedicated fundestablished for the purpose of cleaning up a facility, tank, or site described bythis subsection, the commission may not use money in the hazardous and solidwaste remediation fee fund to clean up a:

(1) waste tire recycling facility;(2) municipal solid waste facility;(3) petroleum storage tank; or(4) used oil collection and recycling site that received used oil after

August 31, 1995.(i) Not later than the 31st day before the date the commission begins a

cleanup or removal under Subsection (g), the commission must publish noticeof its intent to perform the cleanup or removal in the Texas Register.

SECTION 2. Section 361.136(i), Health and Safety Code, is amended toread as follows:

(i) The storage, processing, or disposal of industrial solid wastes orhazardous wastes generated in a removal or remedial action accomplishedthrough the expenditure of money [public funds] from the hazardous and solidwaste remediation fee fund or generated in a removal or remedial action in thisstate conducted by the United States Environmental Protection Agency shall beexempt from the assessment of a waste management fee under this section.

SECTION 3. Section 361.183(a), Health and Safety Code, is amended toread as follows:

(a) Before [the] listing [of] a facility on the state registry, the executivedirector shall determine whether the potential endangerment to public health andsafety or the environment at the facility can be resolved by:

(1) the present owner or operator under the federal ResourceConservation and Recovery Act of 1976 (42 U.S.C. Section 6901);

(2) [or by] some or all of the potentially responsible parties identifiedin Subchapter I, under an agreed administrative order issued by the commission;or

(3) an agreement under Subchapter S, as added by Chapter 986, Actsof the 74th Legislature, Regular Session, 1995.

SECTION 4. Subchapter F, Chapter 361, Health and Safety Code, isamended by adding Section 361.1855 to read as follows:

Sec. 361.1855. PROPOSAL OF LAND USE OTHER THAN


RESIDENTIAL. (a) The executive director shall hold a public meeting toobtain public input and information regarding the appropriate use of land onwhich a facility is located that is the subject of a remedial investigation/feasibility study if:

(1) a land use other than residential is proposed as appropriate for theland by:

(A) the executive director; or(B) a potentially responsible party who has entered into an

agreed order with the commission;(2) the proposal is made before the study is completed; and(3) a local government has not zoned the land as residential only.

(b) Any interested person may comment at the meeting.(c) The meeting is legislative in nature and not a contested case hearing

under Chapter 2001, Government Code.(d) Not later than the 31st day before the date of the meeting, the

commission shall:(1) publish notice of the meeting in the Texas Register and in a

newspaper of general circulation in the county in which the facility is located;(2) mail notice of the meeting to each potentially responsible party by

certified mail, return receipt requested, at the party's most recent address asshown on the records of the commission; and

(3) make the commission's records regarding the facility available toany interested person.

(e) The notice shall:(1) state the date, time, and place of the meeting; and(2) provide information regarding the proposed land use.

(f) The failure of a potentially responsible party to receive a notice underthis section does not affect the responsibilities, duties, or liabilities of the party.

(g) After the meeting, the executive director shall select the appropriateland use for purposes of selecting a proposed remedial action.

SECTION 5. Section 361.187(b), Health and Safety Code, is amended toread as follows:

(b) The commission shall publish notice of the meeting in the TexasRegister and in a newspaper of general circulation in the county in which thefacility is located at least 30 [45] days before the date of the public meeting.The notice shall provide information regarding the proposed remedial action andthe date, time, and place of the meeting. The commission shall also mail thesame information to each potentially responsible party by certified mail, returnreceipt requested, at the party's last known address at least 30 [45] days beforethe public meeting. Contemporaneously with the issuance of notice of thepublic meeting, the executive director shall make available to all interestedparties the public records the executive director has regarding the facility. Forpurposes of providing this information, the executive director shall provide abrief summary of those public records and make those public records availablefor inspection and copying during regular business hours. Nonreceipt of anynotice mailed to a potentially responsible party under this section does not affectthe responsibilities, duties, or liabilities imposed on the party.



(a) After consideration of all good faith offers to perform a remedial action,the commission shall issue a final administrative order that must:

(1) list the facility on the state registry, thus determining that thefacility poses an imminent and substantial endangerment to public health andsafety or the environment;

(2) specify the appropriate land use for purposes of selecting theappropriate remedial action;

(3) specify the selected remedial action;(4) [(3)] list the parties determined to be responsible for remediating

the facility;(5) [(4)] make findings of fact describing actions voluntarily

undertaken by responsible parties;(6) [(5)] order the responsible parties to remediate the facility and, if

appropriate, reimburse the hazardous waste disposal fee fund for remedialinvestigation/feasibility study and remediation costs;

(7) [(6)] establish a schedule for completion of the remedial action;(8) [(7)] state any determination of divisibility of responsible party

liability; and(9) [(8)] give notice of the duties and restrictions imposed by Section

361.190.SECTION 7. Section 361.189, Health and Safety Code, is amended to read

as follows:Sec. 361.189. Deletions from Registry. (a) The executive director or an

[Any] owner or operator or other named responsible party of a facility listedor to be listed on the state registry may request the commission to delete thefacility from the state registry, modify the facility's priority within the stateregistry, or modify any information regarding the facility by submitting awritten statement setting forth the grounds of the request in the form thecommission may by rule require.

(b) The commission by rule shall establish procedures, including publicmeetings [hearings], for review of requests submitted under this section.

(c) If the commission deletes a facility from the state registry because thecleanup of the facility is being addressed under Subchapter S, as added byChapter 986, Acts of the 74th Legislature, Regular Session, 1995, the facilityautomatically reverts to the status the facility had immediately before the facilitywas deleted from the registry on the date of the executive director'sdetermination that the cleanup of the facility is not being addressed adequately.A public meeting is not required for an action under this subsection.

SECTION 8. Sections 361.194(b) and (c), Health and Safety Code, areamended to read as follows:

(b) The lien imposed by this section arises and attaches to the real propertysubject to or affected by a remedial action at the time an affidavit is recordedand indexed in accordance with this section in the county in which the realproperty is located. The executive director shall determine whether to preparean affidavit. In making the determination, the executive director shall proceedin the manner that the executive director determines will most likely result inthe least overall costs to the state after any cost recovery action. For thepurpose of determining rights of all affected parties, the lien does not relate


back to a time before the date on which the affidavit is recorded, which dateis the lien inception date. The lien continues until the liability for the costs issatisfied or becomes unenforceable through operation of law.

(c) An authorized representative of the commission must [shall] execute theaffidavit. The affidavit must show:

(1) the names and addresses of the persons liable for the costs;(2) a description of the real property that is subject to or affected by

the remediation action for the costs or claims; and(3) the amount of the costs and the balance due.

SECTION 9. Section 361.197, Health and Safety Code, is amended byadding Subsection (d) to read as follows:

(d) The commission shall file a cost recovery action against eachresponsible party for the total costs of an action taken under Section361.133(c)(1), (2), (3), (5), or (6) or Section 361.133(g).

SECTION 10. Section 361.200, Health and Safety Code, is amended toread as follows:

Sec. 361.200. [DE MINIMIS] SETTLEMENT. The commission shallassess and by rule may develop and implement a [de minimis] settlementprogram. Under the program, the commission shall consider the advantages ofdeveloping a final settlement with potentially responsible parties that areresponsible for [only a minor portion of the] response costs at a facility becauseof [the] hazardous substances. The settlement program may include:

(1) de minimis settlements;(2) covenants not to sue;(3) mixed funding; and(4) partial settlements [the party is responsible for are minimal in

amount or in hazardous effect by comparison with the hazardous substancesattributable to other parties].

SECTION 11. Section 361.271, Health and Safety Code, is amended byadding Subsections (e) and (f) to read as follows:

(e) A fiduciary's responsibility for solid waste is subject to Subchapter T.(f) A lender's responsibility for solid waste is subject to Subchapter U.SECTION 12. Section 361.277, Health and Safety Code, is amended to

read as follows:Sec. 361.277. EFFECT OF SETTLEMENT AGREEMENT WITH STATE

[JUDGMENT BY STATE AGAINST NONSETTLING PARTY; ACTIONFOR CONTRIBUTION BY NONSETTLING PARTY]. (a) If fewer than allof the persons identified as liable under this subchapter agree with the state totake remedial action to abate an actual or threatened release of solid waste thatis an imminent and substantial endangerment to the public health and safety orthe environment under an administrative order issued under Section 361.272 oran action filed by the state under this subchapter, the state may seek a judgmentagainst a nonsettling person for the total amount of the cost of the remedialaction minus that amount the settling persons agree to pay or spend.

(b) A person who enters a settlement agreement with the state that resolvesall liability of the person to the state for a site subject to Subchapter F isreleased from liability to a person described by Section 361.344(a) for costrecovery, contribution, or indemnity under Section 361.344 regarding a matteraddressed in the settlement agreement.


(c) A settlement agreement does not discharge the liability of a nonsettlingperson to the state unless the agreement provides otherwise.

(d) Notwithstanding Subsection (c), a settlement agreement reduces thepotential liability to the state of the nonsettling persons by the amount of thesettlement [In an action for contribution brought by a nonsettling person againsta settling person, the nonsettling person has the burden to prove that the amountof cleanup costs that a settling person agreed to pay under an agreement withthe state is unreasonable considering the factors under Section 361.343 and theneed to undertake timely cleanup action concerning the release or threatenedrelease].

SECTION 13. Section 361.343, Health and Safety Code, is amended byamending Subsection (b) and adding Subsection (c) to read as follows:

(b) In apportioning costs under Subsection (a), the court shall credit againsta responsible party's share of the costs of eliminating a release or threatenedrelease of solid waste the party's expenditures related to the cleanup at issueif the commission or the executive director approves the cleanup. If theexpenditures were made before the property was proposed to be listed on thestate registry and the commission or the executive director approves the cleanup,the court shall also reduce in an equitable and just manner the party'sproportionate share of the costs.

(c) The apportionment of costs only adjusts the rights of parties identifiedby Section 361.271 and does not affect a person's liability to the state.


(a) A person [subject to a court injunction or an administrative order issuedunder this chapter, or a third person identified by Section 361.192(c)] whoconducts a removal or remedial action that is approved by the commission andis necessary to address [acts to eliminate] a release or threatened release[, inaddition to having the right to file an action for contribution or indemnity, orboth, in an appeal proceeding or in an action brought by the attorney general,]may bring suit in a district court to recover the reasonable and necessary costsof that action [incurred to eliminate the release or threatened release] and othercosts as the court, in its discretion, considers reasonable. This right is inaddition to the right to file an action for contribution, indemnity, or both inan appeal proceeding or in an action brought by the attorney general.

SECTION 15. Chapter 361, Health and Safety Code, is amended by addingSubchapters T, U, and V to read as follows:

SUBCHAPTER T. FIDUCIARY LIABILITYSec. 361.651. DEFINITIONS. In this subchapter:

(1) "Fiduciary":(A) means a person acting for the benefit of another party as

a bona fide:(i) trustee;(ii) executor;(iii) administrator;(iv) custodian;(v) guardian of an estate or guardian ad litem;(vi) receiver;


(vii) conservator;(viii) committee of the estate of an incapacitated

person;(ix) personal representative;(x) trustee, including a successor to a trustee, under

an indenture agreement, trust agreement, lease, or similar financing agreement,for debt securities, certificates of interest or certificates of participation in debtsecurities, or other forms of indebtedness as to which the trustee is not, in thecapacity of trustee, the lender; or

(xi) representative in any other capacity that thecommission, after providing public notice, determines to be similar to thecapacities described in Subparagraphs (i)-(x); and

(B) does not include:(i) a person that is acting as a fiduciary with respect

to a trust or other fiduciary estate that was organized for the primary purposeof, or is engaged in, actively carrying on a trade or business for profit, unlessthe trust or other fiduciary estate was created as part of, or to facilitate, oneor more estate plans or because of the incapacity of a natural person; or

(ii) a person that acquires ownership or control of asolid waste facility with the objective purpose of avoiding liability of the personor of any other person.

(2) "Fiduciary capacity" means the capacity of a person in holding titleto a solid waste facility or otherwise having control of or an interest in the solidwaste facility pursuant to the exercise of the responsibilities of the person asa fiduciary.

(3) "Solid waste facility":(A) means:

(i) all contiguous land, including structures,appurtenances, and other improvements on the land, used for processing, storing,or disposing of solid waste, including a publicly or privately owned solid wastefacility consisting of several processing, storage, or disposal operational unitssuch as one or more landfills, surface impoundments, or a combination of units;and

(ii) any building, structure, installation, equipment,pipe, or pipeline, including any pipe into a sewer or publicly owned treatmentworks, well, pit, pond, lagoon, impoundment, ditch, landfill, storage container,motor vehicle, rolling stock, or aircraft, or any site or area where a hazardoussubstance has been deposited, stored, disposed of, placed, or otherwise cometo be located; and

(B) does not include a:(i) consumer product in consumer use; or(ii) vessel.

Sec. 361.652. LIABILITY OF FIDUCIARIES. (a) Except as otherwiseprovided by Subchapter I, Chapter 26, Water Code, or rules adopted under thatsubchapter, the liability of a fiduciary under this code or the Water Code forthe release or threatened release of solid waste at, from, or in connection witha solid waste facility held in a fiduciary capacity does not exceed the assetsheld in the fiduciary capacity.


(b) Subsection (a) does not apply to the extent that a person is liableindependently of the person's ownership of a solid waste facility as a fiduciaryor actions taken in a fiduciary capacity.

(c) Subsections (a) and (d) do not limit the liability pertaining to a releaseor threatened release of solid waste if negligence, gross negligence, or wilfulmisconduct of a fiduciary causes or contributes to the release or threatenedrelease.

(d) Except as otherwise provided by Subchapter I, Chapter 26, Water Code,or rules adopted under that subchapter, a fiduciary is not liable in the fiduciary'spersonal capacity under this code or the Water Code for:

(1) undertaking or directing another person to undertake a responseaction under the national contingency plan adopted under 42 U.S.C. Section9605, under a commission-approved cleanup plan, or under the direction of anon-scene coordinator designated under the national contingency plan or acommission-approved cleanup plan;

(2) undertaking or directing another person to undertake any otherlawful means of addressing solid waste in connection with the solid wastefacility;

(3) terminating the fiduciary relationship;(4) including in the terms of the fiduciary agreement a covenant,

warranty, or other term or condition that relates to compliance with anenvironmental law or monitoring or enforcing the term or condition;

(5) monitoring or undertaking one or more inspections of the solidwaste facility;

(6) providing financial or other advice or counseling to other partiesto the fiduciary relationship, including the settlor or beneficiary;

(7) restructuring, renegotiating, or otherwise altering the terms andconditions of the fiduciary relationship;

(8) administering, as a fiduciary, a solid waste facility that wascontaminated before the fiduciary relationship began; or

(9) declining to take an action described by Subdivisions (2)-(8).(e) This section does not:

(1) affect a right, immunity, or defense available under this code orthe Water Code that is applicable to a person subject to this section;

(2) create any liability for a person; or(3) create a private right of action against a fiduciary or any other

person.(f) This section does not apply to a person if the person:

(1) acts in a capacity other than that of a fiduciary or in a beneficiarycapacity and, in that capacity, directly or indirectly benefits from a trust orfiduciary relationship; or

(2) is a beneficiary and a fiduciary with respect to the same fiduciaryestate and, as a fiduciary, receives benefits that exceed customary or reasonablecompensation, and incidental benefits, permitted under other applicable law.

(g) This section does not preclude a claim under this code or the WaterCode against:

(1) the assets of the estate or trust administered by the fiduciary; or(2) a nonemployee agent or independent contractor retained by a

fiduciary.


[Sections 361.653-361.700 reserved for expansion]SUBCHAPTER U. LENDER LIABILITY

Sec. 361.701. DEFINITIONS. In this subchapter:(1) "Extension of credit" includes a lease finance transaction:

(A) in which the lessor does not initially select the leasedsolid waste facility and does not during the lease term control the dailyoperations or maintenance of the solid waste facility; or

(B) that conforms with, as appropriate, regulations issued by:(i) the appropriate federal banking agency or the

appropriate state bank supervisor, as those terms are defined by Section 3,Federal Deposit Insurance Act (12 U.S.C. Section 1813); or

(ii) the National Credit Union Administration Board.(2) "Financial or administrative function" includes a function such as

a function of a credit manager, accounts payable officer, accounts receivableofficer, personnel manager, comptroller, or chief financial officer, or a similarfunction.

(3) "Foreclosure" and "foreclose" mean, respectively, acquiring, and toacquire, a solid waste facility through:

(A) purchase at sale under a judgment or decree, power ofsale, or nonjudicial foreclosure sale;

(B) a deed in lieu of foreclosure, or similar conveyance froma trustee;

(C) repossession, if the solid waste facility was security foran extension of credit previously contracted;

(D) conveyance under an extension of credit previouslycontracted, including the termination of a lease agreement; or

(E) any other formal or informal manner by which the personacquires, for subsequent disposition, title to or possession of a solid wastefacility in order to protect the security interest of the person.

(4) "Lender" means:(A) an insured depository institution, as that term is defined

by Section 3, Federal Deposit Insurance Act (12 U.S.C. Section 1813);(B) an insured credit union, as that term is defined by Section

101, Federal Credit Union Act (12 U.S.C. Section 1752);(C) a bank or association chartered under the Farm Credit Act

of 1971 (12 U.S.C. Section 2001 et seq.);(D) a leasing or trust company that is an affiliate of an

insured depository institution;(E) any person, including a successor or assignee of any such

person, that makes a bona fide extension of credit to or takes or acquires asecurity interest from a nonaffiliated person;

(F) the Federal National Mortgage Association, the FederalHome Loan Mortgage Corporation, the Federal Agricultural MortgageCorporation, or any other entity that in a bona fide manner buys or sells loansor interests in loans;

(G) a person that insures or guarantees against a default in therepayment of an extension of credit, or acts as a surety with respect to anextension of credit, to a nonaffiliated person;


(H) a person that provides title insurance and that acquires asolid waste facility as a result of assignment or conveyance in the course ofunderwriting claims and claims settlement; and

(I) an agency of this state that makes an extension of creditto or acquires a security interest from:

(i) a federal or state agency;(ii) a county, municipality, or other body politic or

corporate of this state, including:(a) a district or authority created under

Section 52, Article III, or Section 59, Article XVI, Texas Constitution;(b) an interstate compact commission to

which this state is a party; or(c) a nonprofit water supply corporation

created and operating under Chapter 76, Acts of the 43rd Legislature, 1st CalledSession, 1933 (Article 1434a, Vernon's Texas Civil Statutes); or

(iii) another person.(5) "Operational function" includes a function such as that of a facility

or plant manager, operations manager, chief operating officer, or chief executiveofficer.

(6) "Security interest" includes a right under a mortgage, deed of trust,assignment, judgment lien, pledge, security agreement, factoring agreement, orlease and any other right accruing to a person to secure the repayment ofmoney, the performance of a duty, or any other obligation by a nonaffiliatedperson.

(7) "Solid waste facility":(A) means:

(i) all contiguous land, including structures,appurtenances, and other improvements on the land, used for processing, storing,or disposing of solid waste, including a publicly or privately owned solid wastefacility consisting of several processing, storage, or disposal operational unitssuch as one or more landfills, surface impoundments, or a combination of units;and

(ii) any building, structure, installation, equipment,pipe, or pipeline, including any pipe into a sewer or publicly owned treatmentworks, well, pit, pond, lagoon, impoundment, ditch, landfill, storage container,motor vehicle, rolling stock, or aircraft, or any site or area where a hazardoussubstance has been deposited, stored, disposed of, placed, or otherwise cometo be located; and

(B) does not include a:(i) consumer product in consumer use; or(ii) vessel.

Sec. 361.702. EXCLUSION OF LENDERS NOT PARTICIPANTS INMANAGEMENT. (a) In Section 361.271, the term "owner or operator" doesnot include a person that is a lender that:

(1) without participating in the management of a solid waste facility,holds a security interest in or with regard to the solid waste facility; or

(2) did not participate in management of a solid waste facility beforeforeclosure, notwithstanding the fact that the person:

(A) forecloses on the solid waste facility; and


(B) after foreclosure, sells, re-leases, in the case of a leasefinance transaction, or liquidates the solid waste facility, maintains businessactivities, winds up operations, undertakes a response action with respect to thesolid waste facility under the national contingency plan adopted under 42 U.S.C.Section 9605, under a commission-approved cleanup plan, or under the directionof an on-scene coordinator appointed under the national contingency plan or acommission-approved cleanup plan, or takes any other measure to preserve,protect, or prepare the solid waste facility before sale or disposition, if theperson seeks to sell, re-lease, in the case of a finance transaction, or otherwisedivest the person of the facility at the earliest practicable, commerciallyreasonable time, on commercially reasonable terms, taking into account marketconditions and legal and regulatory requirements.

(b) For purposes of Subsection (a)(2)(B), a lender is presumed to divestthe lender of the solid waste facility at the earliest practicable, commerciallyreasonable time if, within 12 months after foreclosure, the lender:

(1) lists the solid waste facility with a broker, dealer, or agent whodeals in that type of property; or

(2) advertises the solid waste facility for sale or other disposition atleast monthly in:

(A) a real estate publication;(B) a trade or other publication appropriate for the solid waste

facility being advertised; or(C) a newspaper of general circulation in the area in which

the solid waste facility is located.(c) For purposes of Subsection (b), the 12-month period begins:

(1) when the lender acquires marketable title if the lender, after theexpiration of any redemption period or other waiting period required by law,was acting diligently to acquire marketable title; or

(2) on the date of foreclosure or its equivalent if the lender does notact diligently to acquire marketable title.

(d) Except as otherwise provided by Subchapter I, Chapter 26, Water Code,or rules adopted under that subchapter, a lender is not liable under this codeor the Water Code to undertake a removal or remedial action or to pay a fineor penalty arising from the release or threatened release of solid waste at, from,or in connection with the solid waste facility in which the lender maintains asecurity interest or that the lender has acquired through foreclosure if:

(1) the lender has not participated in management before foreclosure;(2) the conditions giving rise to the release or threat of release existed

before foreclosure; and(3) the lender seeks to divest the lender of the property under

Subsections (a)(2)(B) and (b).(e) Notwithstanding Subsection (d), if a lender after foreclosure operates,

directs the operation of, or maintains the operation of business activities, thissection does not exempt or excuse the lender from compliance with legalrequirements applicable to the operation of that business. Those operationalrequirements include permitting, reporting, monitoring, compliance withemission limitations, financial responsibility and assurance requirements,payment of fees, and payment of fines and penalties for noncompliance withthose requirements.


Sec. 361.703. PARTICIPATION IN MANAGEMENT. (a) For purposesof Section 361.702, the term "participate in management":

(1) means actually participating in the management or operationalaffairs of a solid waste facility; and

(2) does not include merely having the capacity to influence, or theunexercised right to control, a solid waste facility or facility operations.

(b) A person that is a lender that holds a security interest in or with regardto a solid waste facility is considered to participate in management only if,while the borrower is still in possession of the solid waste facility encumberedby the security interest, the person:

(1) exercises decision-making control over the environmentalcompliance related to the solid waste facility such that the person hasundertaken responsibility for the solid waste handling or disposal practicesrelated to the solid waste facility; or

(2) exercises control at a level comparable to that of a manager of thesolid waste facility such that the person has assumed or manifestedresponsibility:

(A) for the overall management of the solid waste facilityencompassing day-to-day decisionmaking with respect to environmentalcompliance; or

(B) over all or substantially all of the operational functions,as distinguished from financial or administrative functions, of the solid wastefacility other than the function of environmental compliance.

(c) The term "participate in management" does not include:(1) performing an act or failing to act before the time at which a

security interest is created in a solid waste facility;(2) holding a security interest or abandoning or releasing a security

interest;(3) including in the terms of an extension of credit, or in a contract

or security agreement relating to the extension, a covenant, warranty, or otherterm or condition that relates to environmental compliance;

(4) monitoring or enforcing the terms and conditions of the extensionof credit or security interest;

(5) monitoring or undertaking one or more inspections of the solidwaste facility;

(6) requiring a response action or other lawful means of addressing therelease or threatened release of solid waste in connection with the solid wastefacility before, during, or on the expiration of the term of the extension ofcredit;

(7) providing financial or other advice or counseling in an effort tomitigate, prevent, or cure default or diminution in the value of the solid wastefacility;

(8) restructuring, renegotiating, or otherwise agreeing to alter the termsand conditions of the extension of credit or security interest, exercisingforbearance;

(9) exercising other remedies that may be available under applicablelaw for the breach of a term or condition of the extension of credit or securityagreement; or


(10) conducting a response action under the national contingency planadopted under 42 U.S.C. Section 9605, under a commission-approved cleanupplan, or under the direction of an on-scene coordinator appointed under thenational contingency plan or a commission-approved cleanup plan, if the actionsdo not rise to the level of participating in management within the meaning ofSubsections (a) and (b).

[Sections 361.704-361.750 reserved for expansion]SUBCHAPTER V. IMMUNITY FROM LIABILITY

OF INNOCENT OWNER OR OPERATORSec. 361.751. DEFINITIONS. In this subchapter:

(1) "Contaminant" has the meaning assigned by Section 361.601.(2) "Innocent owner or operator" means a person that:

(A) is an owner or operator of property that has becomecontaminated as a result of a release or migration of contaminants from a sourceor sources not located on or at the property; and

(B) did not cause or contribute to the source or sources of thecontamination referred to in Paragraph (A).

Sec. 361.752. IMMUNITY FROM LIABILITY; ACCESS TOPROPERTY. (a) An innocent owner or operator of property is not liable underthis code or the Water Code for investigation, monitoring, remediation, orcorrective or other response action regarding the conditions attributable to arelease or migration of a contaminant or otherwise liable regarding thoseconditions.

(b) A person that acquires a portion of the tract on which the source of arelease of contaminants is located from the person that caused the release iseligible for immunity under Subsection (a) only if, after appropriate inquiryconsistent with good commercial or customary practice, the person did notknow or have reason to know of the contamination at the time the personacquired the property.

(c) To be eligible for immunity under Subsection (a), an owner or operatormust grant reasonable access to the property for purposes of investigation orremediation to a person designated by the executive director. An agreementfor reasonable access may provide:

(1) that the designated person may not unreasonably interfere with theuse of the property;

(2) for payment of reasonable compensation for access to the property;or

(3) that the owner or operator is indemnified from liability for anintentional or negligent act of the designated person arising from the person'saccess to and use of the property.

(d) This section does not limit any right of the commission under anotherprovision of this code or the Water Code to obtain access to the property.

Sec. 361.753. CERTIFICATION. (a) A person may apply to thecommission for a certificate confirming that the person is an innocent owneror operator. The application must include a complete site investigation reportthat demonstrates that:

(1) the property has become contaminated as a result of a release or


migration of contaminants from a source or sources not located on or at theproperty;

(2) the owner or operator has not caused or contributed to the sourceor sources of the contamination referred to in Subdivision (1); and

(3) the owner or operator is eligible for immunity under Section361.752(b).

(b) The commission may charge an application fee in an amount not toexceed the cost of reviewing the application. The commission shall deposit afee collected under this subsection to the credit of the hazardous and solid wasteremediation fee fund.

(c) Not later than the 45th day after the date the commission receives theapplication, the commission shall notify the applicant whether the applicationis complete.

(d) Not later than the 90th day after the date the commission receives theapplication, the commission shall:

(1) issue or deny the certificate; or(2) notify the applicant of any additional information needed to review

the application.(e) Not later than the 45th day after the date the commission receives the

additional information requested under Subsection (d)(2), the commission shallissue or deny the certificate.

(f) The certificate evidences the immunity from liability of the applicantas provided by Section 361.752.

(g) The commission may condition the issuance of the certificate on theplacement of restrictions on the use of the property that are reasonablynecessary to protect the public health, including:

(1) institutional controls such as deed restrictions or municipal zoningrestrictions; or

(2) at the owner's or operator's option, other control measures.Sec. 361.754. RIGHTS OF INNOCENT OWNER OR OPERATOR

REGARDING CONTAMINATION FROM SOURCE NOT LOCATED ONOR AT PROPERTY. This subchapter does not limit the right of an innocentowner or operator to pursue any remedy available at law or in equity forconditions attributable to the release or migration of contaminants from a sourceor sources that are not located on or at the property.

SECTION 16. Subchapter C, Chapter 2155, Government Code, is amendedby adding Section 2155.145 to read as follows:

Sec. 2155.145. CERTAIN PURCHASES BY TEXAS NATURALRESOURCE CONSERVATION COMMISSION. The Texas Natural ResourceConservation Commission is delegated all purchasing functions relating to theadministration of Subchapters F and I, Chapter 361, Health and Safety Code,subject to the rules adopted by the commission under Section 2155.132(c).

SECTION 17. Section 2166.003(a), Government Code, is amended to readas follows:

(a) Unless otherwise provided, this chapter does not apply to:(1) a project constructed by and for the Texas Department of

Transportation;(2) a project constructed by and for a state institution of higher

education;


(3) a pen, shed, or ancillary building constructed by and for theDepartment of Agriculture for the processing of livestock before export;

(4) a project constructed by the Parks and Wildlife Department;(5) a repair or rehabilitation project, except a major renovation, of

buildings and grounds on the commission inventory;(6) a repair and rehabilitation project of another using agency, if all

labor for the project is provided by the regular maintenance force of the usingagency under specific legislative authorization and the project does not requirethe advance preparation of working plans or drawings; [or]

(7) a repair and rehabilitation project involving the use of contractlabor, if the project has been excluded from this chapter by commission ruleand does not require the advance preparation of working plans or drawings; or

(8) an action taken by the Texas Natural Resource ConservationCommission under Subchapter F or I, Chapter 361, Health and Safety Code.

SECTION 18. Subchapter A, Chapter 2253, Government Code, is amendedby adding Section 2253.002 to read as follows:

Sec. 2253.002. EXEMPTION. This chapter does not apply to a publicwork contract entered into by a state agency relating to an action taken underSubchapter F or I, Chapter 361, Health and Safety Code, or Subchapter I,Chapter 26, Water Code.

SECTION 19. Section 26.265, Water Code, is amended by addingSubsections (h)-(j) to read as follows:

(h) Notwithstanding Subsection (g), a responsible person who enters intoa settlement agreement with the state that resolves all liability of the person tothe state for a site subject to Subchapter F, Chapter 361, Health and SafetyCode, is released from liability to a person described by Section 361.344(a),Health and Safety Code, for contribution or indemnity under this code regardinga matter addressed in the settlement agreement.

(i) A settlement agreement does not discharge the liability of a nonsettlingperson to the state unless the agreement provides otherwise.

(j) Notwithstanding Subsection (i), a settlement agreement reduces thepotential liability to the state of the nonsettling persons by the amount of thesettlement.

SECTION 20. This Act takes effect September 1, 1997.SECTION 21. The importance of this legislation and the crowded condition

of the calendars in both houses create an emergency and an imperative publicnecessity that the constitutional rule requiring bills to be read on three several daysin each house be suspended, and this rule is hereby suspended.



Representative Junell called up with senate amendments for considerationat this time,

HB 2777, A bill to be entitled An Act relating to eligibility determinationand service delivery of health and human services.

Representative Junell moved that the house not concur in the senateamendments and that a conference committee be requested to adjust thedifferences between the two houses on HB 2777.



The speaker announced the appointment of the following conferencecommittee, on the part of the house, on HB 2777: Junell, chair, Berlanga,Eiland, Krusee, and Naishtat.


Representative Junell called up with senate amendments for considerationat this time,

HB 2778, A bill to be entitled An Act relating to directing payment, afterapproval, of certain miscellaneous claims and judgments against the state outof funds designated by this Act; making appropriations.

On motion of Representative Junell, the house concurred in the senateamendments to HB 2778.

The speaker stated that HB 2778 was passed subject to the provisions ofArticle III, Section 49a, of the Texas Constitution.


CSHB 2778, A bill to be entitled An Actrelating to directing payment, afterapproval, of certain miscellaneous claims and judgments against the state outof funds designated by this Act; making appropriations.


SECTION 1. TRUSTEED PROGRAMS WITHIN THE OFFICE OF THEGOVERNOR. (a) The following sum of money is appropriated out of the OilOvercharge Account No. 5005 for payment of itemized claims against the Stateof Texas:

To pay the City of Houston for reimbursement of the incremental cost ofcompressed natural gas vehicles$92,456.00

(b) The following sum of money is appropriated out of the Governor'sOffice Federal Projects Account No. 224 for payment of itemized claims againstthe State of Texas:

To pay the Texas Department of Health for reimbursement for chemicaland radiological contaminant monitoring$45,401.05

SECTION 2. OFFICE OF THE ATTORNEY GENERAL. (a) Thefollowing sums of money are appropriated out of the General Revenue FundNo. 001 for payment of itemized claims against the State of Texas:

To pay Lectoy L. Johnson, M.D., for unpaid workers' compensationbenefits for Mario Castillo $269.12

To pay Abelot's Cavan-Peden Pharmacy for unpaid workers' compensationbenefits for Gladys J. Davis $58.17

To pay Kiest Park Medical Clinic for unpaid workers' compensationbenefits for Lloyd J. Sims $562.72

To pay Grefory H. Smith for unpaid mileage reimbursements $1,363.83To pay the Dallas County District Clerk for unpaid attorney fees $626.00To pay Zella Faye Brown for unpaid workers' compensation benefits $155.35To pay Marlette F. Clouser for warrant voided by statute of limitations

$124.78


To pay Don Mafrige, trustee, for warrant voided by statute of limitations$2,613.00

To pay Dr. Henry W. McGowen, M.D., doing business as RadiologyConsultants, for unpaid workers' compensation benefits for Jerry D. Christmas

$44.15To pay William T. Price, M.D., for unpaid workers' compensation benefits

for Scott L. Morriss $229.87To pay Blue Cross and Blue Shield of Texas, Inc., for unpaid workers'

compensation benefits for Sam Novy $800.00To pay Deedie L. Johnson for unpaid workers' compensation benefits

$5.58To pay Texas Orthopedic & Trauma Associates for unpaid workers'

compensation benefits for Efrem McDuffie $305.76To pay Mike T. Yoon for unpaid workers' compensation benefits for

Mario Castillo $152.00To pay Area Metropolitan Ambulance Authority, doing business as

Medstar, for unpaid workers' compensation benefits for Tommie G. Allen$462.00

To pay R. David Calvo, M.D., P.A., for warrant voided by statute oflimitations $126.88

To pay Lydia G. Palacios for unpaid workers' compensation benefits$41.80

To pay Laura Hawkins Hunt (formerly Woodall) for warrant voided bystatute of limitations $54.28

To pay Cindy Lou Bailey for unpaid workers' compensation benefits$520.07

To pay Texas Physical Medicine for unpaid workers' compensation benefitsfor Kenneth W. Bing, Jr. $484.26

To pay Lucinda M. Grundy for warrant voided by statute of limitations$299.45

To pay Cigna Healthcare of Texas, Inc., for unpaid workers' compensationbenefits for Doris M. Patrick $376.51

To pay Jeffrey S. Weislow, D.C., doing business as A.H.C. Chiropractic,for unpaid workers' compensation benefits for Connie McFadden $687.55

To pay Physical Therapy Services for unpaid workers' compensationbenefits for Robbie B. Neal $291.77

To pay Lankford Hand Surgery Association for unpaid workers'compensation benefits for Billie Ann Coleman $12.00

To pay Physical Therapy Services for unpaid workers' compensationbenefits for Sylvia Garcia $580.61

To pay Stephen Remedes for warrant voided by statute of limitations$347.49

To pay the Methodist Hospital in Houston for unpaid workers'compensation benefits for Nancy A. McGuire $24,181.34

To pay Sandy Garcia for unpaid workers' compensation benefits $159.84To pay Sandy Garcia for unpaid workers' compensation benefits $516.24To pay Bone & Joint Clinic c/o Sherwin J. Stiff, M.D., for unpaid workers'

compensation benefits for Yvette McGar $452.00To pay Ronald G. Corley, M.D., P.A., for unpaid workers' compensation

benefits for Kristina Hill $35.00


(b) The following sum of money is appropriated out of the Compensationto Victims of Crime Account No. 469 for payment of itemized claims againstthe State of Texas:

To pay Gilbert O. Flores for warrant voided by statute of limitations$4,500.00

SECTION 3. TREASURY DEPARTMENT. The following sums ofmoney are appropriated out of the General Revenue Fund No. 001 for paymentof itemized claims against the State of Texas:

To pay Philip G. Ward for warrant voided by statute of limitations$202.14

To pay Sylvia Hubbard Indv. & Sylvia Hubbard for the benefit of AngeliaHubbard for warrant voided by statute of limitations $195.99

To pay Orvis E. Austin for the estate of Sam Austin, Jr., heir of estate ofSam Austin, Sr., for warrant voided by statute of limitations $119.30

To pay Jerry L. Cole for the benefit of Matthew L. McDonald for warrantvoided by statute of limitations $35.53

SECTION 4. TEXAS WORKFORCE COMMISSION. The followingsums of money are appropriated out of the Workforce Commission FederalAccount No. 5026 for payment of itemized claims against the State of Texas:

To pay the Travis County District Clerk for unpaid court costs $736.00To pay the Travis County District Clerk for unpaid court costs $130.00To pay the Travis County District Clerk for unpaid court costs $174.00To pay Carolyn Young for warrant voided by statute of limitations

$1,613.59To pay Day Care Assoc. of Fort Worth & Tarrant County for unpaid child-

care management services $5,512.13To pay Day Care Assoc. of Fort Worth & Tarrant County for unpaid child-

care management services $64,656.15SECTION 5. DEPARTMENT OF HUMAN SERVICES. (a) The

following sums of money are appropriated to the Department of HumanServices, out of the funds indicated below, for payment of itemized claimsagainst the State of Texas:

To pay Texarkana Management Company, doing business as Jones HealthCenter, for unpaid charges for nursing home care for Medicaid recipients

$1,583.44To pay Lutheran Home of West Texas for unpaid charges for nursing home

care for Medicaid recipients $264.03To pay Beverly Enterprises of Texas, Inc., doing business as Cannon Oaks

Nursing Center, for unpaid charges for nursing home care for Medicaidrecipients $243.68

To pay Tarrant County MHMR Services, doing business as CrossroadsDevelopment Center, for unpaid charges for nursing home care for Medicaidrecipients $33,597.84

To pay 3927 Foundation, doing business as Del Mar Health Care Center,for unpaid charges for nursing home care for Medicaid recipients $44.55

To pay the Tom Green County Child Welfare Board for warrant voidedby statute of limitations $88.00

To pay the Tom Green County Child Welfare Board for warrant voidedby statute of limitations $330.00


To pay the Runnels County Child Welfare Board for warrant voided bystatute of limitations $28.00

To pay Avante Villa of Corpus Christi for unpaid charges for nursing homecare for Medicaid recipients $55,757.62

To pay Living Centers of America, doing business as Memorial Medical,for unpaid charges for nursing home care for Medicaid recipients $141.44

To pay Living Centers of America, doing business as Retama Manor-Harlingen, for unpaid charges for nursing home care for Medicaid recipients

$51.78To pay Living Centers of America, doing business as Green Acres, for

unpaid charges for nursing home care for Medicaid recipients $5.24To pay Advanced Living Technologies, Inc., doing business as Hennesy

Nursing Home, for unpaid charges for nursing home care for Medicaidrecipients $270.26

To pay the Visiting Nurse Association of Texas for unpaid charges forcommunity care services for Medicaid recipients $1,992.87

To pay Autumn Hills Convalescent Center, Inc., for unpaid charges fornursing home care for Medicaid recipients $4,744.82

To pay American Health Services, Inc., doing business as The Clairmont,for unpaid charges for nursing home care for Medicaid recipients $1,123.78

To pay Southeastern Health Care, Inc., doing business as Wichita FallsConvalescent Center, for unpaid charges for nursing home care for Medicaidrecipients $2,410.55

To pay Texas Health Enterprises, doing business as Anson Place #1, forunpaid charges for nursing home care for Medicaid recipients $2,968.20

To pay Lisa Curtis for warrant voided by statute of limitations $22.75To pay Pebble Creek Nursing Center for unpaid charges for nursing home

care for Medicaid recipients $8,834.00To pay Woodlands Place Nursing Center, doing business as Heritage

Manor, for unpaid charges for nursing home care for Medicaid recipients$6,629.58

To pay 3927 Foundation, Inc., doing business as Bryan Manor NursingHome, for unpaid charges for nursing home care for Medicaid recipients

$7,248.45To pay Texas Health Enterprises, Inc., doing business as Forest Hill

Nursing Center, for unpaid charges for nursing home care for Medicaidrecipients $1,310.78

To pay Brentwood Place Two for unpaid charges for nursing home carefor Medicaid recipients $872.57

To pay CS Denton Partners Ltd., doing business as The Vintage HealthCare Center, for unpaid charges for nursing home care for Medicaid recipients

$90,980.71To pay Baylor College of Medicine for warrant voided by statute of

limitations $18,656.33To pay Jacquelyne Rose Samuels for warrant voided by statute of

limitations $35.28To pay Hilltop Nursing Home, Inc., for unpaid charges for nursing home

care for Medicaid recipients $2,570.39


To pay Living Centers of America, doing business as Green Acres CC-Vidor, for unpaid charges for nursing home care for Medicaid recipients

$345.75To pay Living Centers of America, doing business as Bay Villa, for unpaid

charges for nursing home care for Medicaid recipients $13.18To pay Living Centers of America, doing business as Kontze Nursing

Center, for unpaid charges for nursing home care for Medicaid recipients$657.69

To pay Accu-Care Investments, Inc., doing business as Pecan Tree Lodge,for warrant voided by statute of limitations $19,408.17

To pay Texas Health Enterprises, doing business as Canterbury Villa ofFalfurrias, for unpaid charges for nursing home care for Medicaid recipients

$179.52To pay Texas Health Enterprises, doing business as Hearthstone Nursing,

for unpaid charges for nursing home care for Medicaid recipients $1,966.42To pay Texas Health Enterprises, doing business as Denton Development

Center, for unpaid charges for nursing home care for Medicaid recipients$22,314.28

To pay Four Seasons Nursing Center, Inc., doing business as Four SeasonsNC-Austin, for unpaid charges for nursing home care for Medicaid recipients

$193.13To pay Big Spring Associates, L.P., doing business as Golden Plains Care


To pay the Evangelical Lutheran Good Samaritan Society, doing businessas The Parks Good Samaritan Village, for unpaid charges for nursing home carefor Medicaid recipients $2,908.12

To pay Texas Health Enterprises, Inc., doing business as Canterbury Villa-DeLeon, for unpaid charges for nursing home care for Medicaid recipients

$203.98To pay Texas Health Enterprises, Inc., doing business as Mineral Wells

Health Care Center, for unpaid charges for nursing home care for Medicaidrecipients $178.88

To pay Lula Mae Whitehead for unpaid AFDC benefits $248.00To pay Richland Hills Nursing and Rehabilitation Center for unpaid charges

for nursing home care for Medicaid recipients $180.73To pay Southmark Heritage Corporation, doing business as Terrell Care

Center, #5158-4 for unpaid charges for nursing home care for Medicaidrecipients $5,729.90

To pay Beverly Enterprises, doing business as Serenity Haven NursingHome, for unpaid charges for nursing home care for Medicaid recipients

$1,514.10To pay Eckerd Drug #916 for unpaid charges for pharmaceutical services

for Medicaid recipients $457.76To pay Good Health, Inc., doing business as Super Save Drugs #2, for

unpaid charges for pharmaceutical services for Medicaid recipients $542.35To pay National Heritage Insurance Company for unpaid charges for

medical assistance services $236,633.00


To pay Texas Health Enterprises, doing business as Anson Place #2,#9177-1 for unpaid charges for nursing home care for Medicaid recipients

$1,072.93To pay Autumn Hills Convalescent Center #5145-1 for unpaid charges for

nursing home care for Medicaid recipients $11,542.35To pay Elgin Johnson for warrant voided by statute of limitations$151.00To pay Beverly Enterprises, doing business as Villa Inn Nursing Center,

#4584-8 for unpaid charges for nursing home care for Medicaid recipients$1,765.72

To pay Bremond Nursing Center #5161-2 for unpaid charges for nursinghome care for Medicaid recipients $418.50

To pay Beverly Enterprises, doing business as Cannon Oaks, #5084-3 forunpaid charges for nursing home care for Medicaid recipients $2,811.92

To pay Unicare Homes, Inc., doing business as Frontier Manor, #4863-5for unpaid charges for nursing home care for Medicaid recipients $560.04

To pay National Heritage Insurance Company for unpaid charges formedical assistance services $72,151.00

To pay Moores Pharmacy for unpaid charges for pharmaceutical servicesfor Medicaid recipients $196.12

To pay Beverly Enterprises, doing business as El Paso Convalescent Center,for unpaid charges for nursing home care for Medicaid recipients $956.40

To pay Beverly Enterprises, doing business as Capital City Nursing andRehabilitation Center, #5140-3 for unpaid charges for nursing home care forMedicaid recipients $1,202.67

To pay Beverly Enterprises, doing business as Leisure Lodge Henderson,#4555-4 for unpaid charges for nursing home care for Medicaid recipients

$63.55To pay Beverly Enterprises, doing business as Valley View Lodge, #4933-

5 for unpaid charges for nursing home care for Medicaid recipients$1,354.20To pay Texas Health Enterprises, doing business as Anson Place, #4433-

6 for unpaid charges for nursing home care for Medicaid recipients $489.30To pay Sam Houston Electric Cooperative for Hurbert McGaha for warrant

voided by statute of limitations$35.00To pay the Maverick County District Attorney for unpaid attorney fees in

food stamp fraud case $277.50To pay Brentwood Place 4 for unpaid charges for social services$542.88To pay Texas Health, doing business as University Nursing Center, #4994-

2 for unpaid charges for nursing home care for Medicaid recipients $740.00To pay Gibson's Security Pharmacy c/o Mann Drug, Inc., of Brownsville,

doing business as Drug Emporium, for warrant voided by statute of limitations$1,047.48

To pay Beverly Enterprises, doing business as Frankston Nursing Home,#4915-4 for unpaid charges for nursing home care for Medicaid recipients

$1,786.88To pay Valley Grande Manor Nursing & Convalescent Home for unpaid

charges for nursing home care for Medicaid recipients $13,457.21To pay Living Centers of America, doing business as Carrollton Manor,

#5062-1 for unpaid charges for nursing home care for Medicaid recipients$378.28


To pay Living Centers of America, doing business as Memorial Medical,#4155-2 for unpaid charges for nursing home care for Medicaid recipients

$29.63To pay Texas Health Enterprises, doing business as C. V. of Gatesville,


To pay Texas Health Enterprises, doing business as The Village at ValleyInn, #5282-2 for unpaid charges for nursing home care for Medicaid recipients

$7,482.61To pay Stone Road Nursing Center, Inc., #5000-2 for unpaid charges for

nursing home care for Medicaid recipients $10,188.79To pay Beverly Enterprises, doing business as Golden Charm, #5067-4 for

unpaid charges for nursing home care for Medicaid recipients $6,406.00To pay Beverly Enterprises, doing business as Silver Leaves, #4285-4 for

unpaid charges for nursing home care for Medicaid recipients $39,948.28To pay Beverly Enterprises, doing business as Merritt Plaza Rehabilitation/

Living Center, #4730-3 for unpaid charges for nursing home care for Medicaidrecipients $1,410.95

To pay Beverly Enterprises, doing business as The Arbor, #4970-3 forunpaid charges for nursing home care for Medicaid recipients $714.97

To pay Four Seasons Nursing Center-San Antonio #5109-2 for unpaidcharges for nursing home care for Medicaid recipients $6.94

To pay Beverly Enterprises, doing business as Lubbock Healthcare, #5138-3 for unpaid charges for nursing home care for Medicaid recipients $1,717.79

To pay Beverly Enterprises, doing business as Leisure Lodge-Anahuac, forunpaid charges for nursing home care for Medicaid recipients $1,377.63

To pay Beverly Enterprises, doing business as Pioneer Place, #5141-3 forunpaid charges for nursing home care for Medicaid recipients $908.16

To pay Beverly Enterprises, doing business as Courtyard CC, #5005-3 forunpaid charges for nursing home care for Medicaid recipients $5,643.84

To pay Beverly Enterprises, doing business as Lakeview Health Care,#5244-1 for unpaid charges for nursing home care for Medicaid recipients

$602.00To pay Four Seasons Nursing Center #4810-2 for unpaid charges for

nursing home care for Medicaid recipients $1,000.45To pay Lion Health Centers (Irving), Inc., doing business as Ashford Hall,


To pay Texas Health Enterprises, doing business as Brownwood, #4881-5for unpaid charges for nursing home care for Medicaid recipients $116.38

To pay Veronica I. Macias for warrant voided by statute of limitations$107.10

To pay Medical Center Hospital #9214-1 for unpaid charges for nursinghome care for Medicaid recipients $2,818.08

To pay Texas Home Health of America, Inc., for unpaid charges for socialservices $532.44

To pay Campbell Care of Central Texas, Inc., doing business as CastleHills Manor, #4721-4 for unpaid charges for nursing home care for Medicaidrecipients $49.59


To pay Integrated Health Services of Hurst #4588-4 for unpaid charges fornursing home care for Medicaid recipients $252.84

To pay Parkway Hospital #9109-1 for unpaid charges for nursing homecare for Medicaid recipients $395.34

To pay Texas Health Enterprises, doing business as Lakelodge Care, #5143-3 for unpaid charges for nursing home care for Medicaid recipients $2,145.63

To pay Texas Health Enterprises, doing business as Spring Oak Terrace,#5283-1 for unpaid charges for nursing home care for Medicaid recipients

$1,502.23To pay Texas Health Enterprises, doing business as Canterbury Villa-

DeLeon, #4922-4 for unpaid charges for nursing home care for Medicaidrecipients $278.14

To pay Beverly Enterprises, doing business as Lake Jackson Nursing Home,#5139-3 for unpaid charges for nursing home care for Medicaid recipients

$1,625.67To pay Beverly Enterprises, doing business as Serenity Haven, #5113-3 for

unpaid charges for nursing home care for Medicaid recipients $3,555.92To pay Texas Health Enterprises, Inc., doing business as Pine Hill Terrace,


To pay Mel-Haven Convalescent Center #4477-2 for unpaid charges fornursing home care for Medicaid recipients $57.94

To pay Living Centers of America, doing business as Beechnut Manor,#5316-1 for unpaid charges for nursing home care for Medicaid recipients

$175.68To pay Living Centers of America, doing business as Retama Manor-Rio

Grande City, #4995-3 for unpaid charges for nursing home care for Medicaidrecipients $444.06

To pay Living Centers of America, doing business as Retama Manor West,#4623-6 for unpaid charges for nursing home care for Medicaid recipients

$5,311.45To pay Living Centers of America, doing business as Care Inn of San

Marcos, #4914-2 for unpaid charges for nursing home care for Medicaidrecipients $20,154.92

To pay Living Centers of America, doing business as Care Inn ofPlainview, #4849-3 for unpaid charges for nursing home care for Medicaidrecipients $19.87

To pay Mariner Health, Inc., doing business as Villa Northwest, #5137-3for unpaid charges for nursing home care for Medicaid recipients $446.85

To pay Westview Manor #4574-1 for unpaid charges for nursing home carefor Medicaid recipients $2,720.93

To pay Living Centers of America, doing business as Allenbrook HC,#5057-1 for unpaid charges for nursing home care for Medicaid recipients

$651.22To pay Living Centers of America, doing business as Care Inn-Waco,



To pay Living Centers of America, doing business as Care Inn-Waco,#4613-2 for unpaid charges for nursing home care for Medicaid recipients

$207.78To pay Living Centers of America, doing business as Greenview Manor,


To pay Living Centers of America, doing business as Green Acres CC,#4850-2 for unpaid charges for nursing home care for Medicaid recipients

$299.71To pay Living Centers of America, doing business as Green Acres CC,


To pay Living Centers of America, doing business as Green Acres CC-Humble, #4967-2 for unpaid charges for nursing home care for Medicaidrecipients $1,788.09

To pay Living Centers of America, doing business as Levelland Nursing,#4594-1 for unpaid charges for nursing home care for Medicaid recipients

$166.59To pay Living Centers of America, doing business as Retama Manor

Nursing Center, #4259-2 for unpaid charges for nursing home care for Medicaidrecipients $448.08

To pay Living Centers of America, doing business as Retama ManorNursing Center, #4629-3 for unpaid charges for nursing home care for Medicaidrecipients $124.77

To pay Living Centers of America, doing business as Retama ManorNCCC, #4567-3 for unpaid charges for nursing home care for Medicaidrecipients $295.19

To pay Living Centers of America, doing business as Retama Manor-North,#4073-3 for unpaid charges for nursing home care for Medicaid recipients

$309.72To pay Living Centers of America, doing business as Retama Manor

Laredo South, #5042-2 for unpaid charges for nursing home care for Medicaidrecipients $2,339.28

To pay Living Centers of America, doing business as Retama Manor LivingCenter, #4833-2 for unpaid charges for nursing home care for Medicaidrecipients $234.90

To pay Living Centers of America, doing business as Hearthstone of RoundRock, #5264-1 for unpaid charges for nursing home care for Medicaid recipients

$173.29To pay Living Centers of America, doing business as Hilltop Village,


To pay Living Centers of America, doing business as Hilltop Village,#4493-3 for unpaid charges for nursing home care for Medicaid recipients

$139.11To pay Columbia Medical Center-Terrell #9207-1 for unpaid charges for

nursing home care for Medicaid recipients $3,458.20To pay Living Centers of America, doing business as Retama Manor-South,



To pay Texas Health Enterprises, doing business as Lynwood Manor,#5279-1 for unpaid charges for nursing home care for Medicaid recipients

$1,191.93To pay Southern Union Gas for Al Dixon for warrant voided by statute

of limitations $41.00To pay Vitas Healthcare Corporation for unpaid charges for hospice

services $25,085.79To pay Texas Health Enterprises, doing business as Anson Place 2, #9177-

1 for unpaid charges for nursing home care for Medicaid recipients $1,067.19To pay Texas Health Enterprises, doing business as Richland Manor,


To pay Texas Health Enterprises, doing business as North ShoresHealthcare Center, #4392-3 for unpaid charges for nursing home care forMedicaid recipients $7,416.26

To pay Camlu Care Center #5147-1 for unpaid charges for nursing homecare for Medicaid recipients $3,668.64

To pay Texas Health Enterprises, doing business as Woodlawn Hills,#4270-5 for unpaid charges for nursing home care for Medicaid recipients

$2,045.67To pay Texas Health Enterprises, doing business as University Manor,


To pay Texas Health Enterprises, Inc., doing business as Park HavenNursing Center, #4381-3 for unpaid charges for nursing home care for Medicaidrecipients $1,144.45

To pay Texas Health Enterprises, doing business as Park Haven NursingCenter, #4381-3 for unpaid charges for nursing home care for Medicaidrecipients $985.42

To pay Texas Health Enterprises, Inc., doing business as Denison Manor,#4074-2 for unpaid charges for nursing home care for Medicaid recipients

$2,095.74To pay Texhoma Christian Care Center, Inc., #9218-1 for unpaid charges

for nursing home care for Medicaid recipients $2,526.36To pay Texhoma Christian Care Center, Inc., #5170-1 for unpaid charges

for nursing home care for Medicaid recipients $918.22To pay Advanced Living Technologies, Inc., doing business as Hennesey

Nursing Home, for unpaid charges for nursing home care for Medicaidrecipients $62.36

To pay Beverly Enterprises of Texas, doing business as Cross County Care,#4266-4 for unpaid charges for nursing home care for Medicaid recipients

$526.46To pay Beverly Enterprises of Texas, doing business as Garden Terrace,


To pay Beverly Enterprises of Texas, doing business as Park Plaza CareCenter, #5159-3 for unpaid charges for nursing home care for Medicaidrecipients $1,064.84

To pay Wanda J. Stewart for warrant voided by statute of limitations$441.31


To pay Girling Health Care, Inc., for unpaid charges for family careservices for Medicaid recipients $40,853.77

To pay Marbridge Villa #5191-1 for unpaid charges for nursing home carefor Medicaid recipients $11,851.32

To pay Living Centers of America, doing business as Care Inn of Llano,#4545-3 for unpaid charges for nursing home care for Medicaid recipients

$23.56To pay Living Centers of America, doing business as Aldwyche Group

Home, #3646-2 for unpaid charges for nursing home care for Medicaidrecipients $120.80

To pay Living Centers of America, doing business as Retama Manor-Harlingen, #4718-2 for unpaid charges for nursing home care for Medicaidrecipients $34.13

To pay Texas Health Enterprises, doing business as Woodlawn Hills,#4270-5 for unpaid charges for nursing home care for Medicaid recipients

$183.05To pay Children's Learning Centers for unpaid charges for child care

management services $3,457.10To pay Living Centers of America, doing business as Coastal Healthcare

Center, #4259-3 for unpaid charges for nursing home services for Medicaidrecipients $650.52

To pay TDCJ-Texas Correctional Industries for unpaid charges for modularfurniture unit $9,974.50

To pay Texas Health Enterprises, doing business as Itasca, #4294-3 forunpaid charges for nursing home care for Medicaid recipients $1,047.75

To pay Texas Health Enterprises, doing business as CV Hillsboro, #4714-3 for unpaid charges for nursing home care for Medicaid recipients$766.20

To pay Texas Health Enterprises, doing business as Hearthstone NursingHome, #4264-2 for unpaid charges for nursing home care for Medicaidrecipients $27.43

To pay Texas Health Enterprises, doing business as Jasper Convalescent,#4618-6 for unpaid charges for nursing home care for Medicaid recipients

$30.19To pay Texas Health Enterprises, doing business as Sun Valley Health,


To pay Honorcare Operating Co., Inc., doing business as Angelina NursingHome, #4771-2 for unpaid charges for nursing home care for Medicaidrecipients $341.28

To pay Avalon Place-Odessa #4351-3 for unpaid charges for nursing homecare for Medicaid recipients $1,507.30

To pay Avalon Place-Kirbyville #5201-2 for unpaid charges for nursinghome care for Medicaid recipients $534.73

To pay Avalon Place-San Antonio #4795-2 for unpaid charges for nursinghome care for Medicaid recipients $845.07

To pay Texas Home Health of America, Inc., for unpaid charges for socialservices $1,744.28

To pay Texas Home Health of America, Inc., for unpaid charges for socialservices $229.68


To pay Arms of Mercy Nursing Home, Inc., #4923-1 for unpaid chargesfor nursing home care for Medicaid recipients $552.97

To pay Beverly Enterprises, doing business as White Settlement NursingCenter, #4726-4 for unpaid charges for nursing home care for Medicaidrecipients $477.47

To pay Beverly Enterprises, doing business as Merrit Plaza Rehabilitation/Living Center, #4730-3 for unpaid charges for nursing home care for Medicaidrecipients $326.65

To pay Beverly Enterprises, doing business as Colonial Park NursingHome, #5088-3 for unpaid charges for nursing home care for Medicaidrecipients $242.16

To pay Beverly Enterprises, doing business as Cannon Oaks, #5084-3 forunpaid charges for nursing home care for Medicaid recipients $840.51

To pay Texas Health Enterprises, doing business as Mineral Wells HealthCare Center, #4938-4 for unpaid charges for nursing home care for Medicaidrecipients $2,955.42

To pay Texas Health Enterprises, doing business as Columbus Care Center,#5029-3 for unpaid charges for nursing home care for Medicaid recipients

$106.00To pay Sensitive Care-Briarwood H.C., Inc., doing business as Briarwood

H.C. Center, #4611-4 for unpaid charges for nursing home care for Medicaidrecipients $1,354.24

To pay Wood Convalescent Center #4508-4 for unpaid charges for nursinghome care for Medicaid recipients $1,321.53

To pay Wood Convalescent Center #4459-5 for unpaid charges for nursinghome care for Medicaid recipients $543.71

To pay Joanna Diviney for warrant voided by statute of limitations$2,791.42

To pay Mary Lee Foundation/Southpointe I #3793-1 for unpaid charges fornursing home care for Medicaid recipients $2,290.69

To pay Mary Lee Foundation/Southpointe II #3832-1 for unpaid chargesfor nursing home care for Medicaid recipients $3,546.74

To pay Roy B. Robertson & Associates, Inc., doing business as WheelerCare Center, #5178-1 for unpaid charges for nursing home care for Medicaidrecipients $1,386.60

To pay Convalescent Management, Inc., doing business as Park ViewConvalescent Center, #4958-3 for unpaid charges for nursing home care forMedicaid recipients $6.30

To pay Outreach Health Services-San Antonio for unpaid charges forfamily care services $5,784.24

To pay Harlingen Good Samaritan Center #4745-2 for unpaid charges fornursing home care for Medicaid recipients $222.32

To pay Leisure Lodge Nursing Center for unpaid charges for nursing homecare for Medicaid recipients $1,850.70

To pay Golden Age Manor Nursing Center for unpaid charges for nursinghome care for Medicaid recipients $4.03

To pay Retirement Care Center of Hempstead for unpaid charges fornursing home care for Medicaid recipients $877.75


To pay Beverly Enterprises of Texas, doing business as Desota NursingHome, for unpaid charges for nursing care $95.20

To pay Vitas Healthcare Corporation for unpaid charges for communitycare services for Medicaid recipients $1,664.70

To pay Vitas Heathcare Corporation for unpaid charges for community careservices for Medicaid recipients $21,580.62

To pay Vitas Healthcare Corporation for unpaid charges for communitycare services for Medicaid recipients $125,843.70

To pay Sulphur Springs Nursing Home, John R. Folowell, for unpaidcharges for nursing home care for Medicaid recipients $65,426.90

To pay Beverly Enterprises of Texas, doing business as SweetwaterNursing Center, for warrant voided by statute of limitations $2,610.60

To pay Beverly Enterprises of Texas, doing business as Pioneer PlaceNursing Home, for unpaid charges for nursing care services $496.65

To pay Beverly Enterprises of Texas, doing business as Munday NursingCenter, for unpaid charges for nursing care services $39.38

To pay Beverly Enterprises of Texas, doing business as Monterey CareCenter, for unpaid charges for nursing care services $180.28

To pay Beverly Enterprises of Texas, doing business as Paso ConvalescentCenter, for unpaid charges for nursing home care for Medicaid recipients

$21.00To pay Heritage Place for unpaid charges for nursing home care for

Medicaid recipients $13,910.19To pay Mariner Health Care, doing business as Arlington Heights, for

unpaid charges for nursing home care for Medicaid recipients $466.32To pay Integrated HL SV of Amarillo for unpaid charges for nursing home

care for Medicaid recipients $41,159.48To pay Juanita G. Goronada for accrued AFDC benefits $333.00To pay Eden Home, Inc., for unpaid charges for nursing home care for

Medicaid recipients $3,685.75To pay Living Centers of America, doing business as Golden Years, for

unpaid charges for nursing home care for Medicaid recipients $193.38To pay Living Centers of America, doing business as Brazosview, for

unpaid charges for nursing home care for Medicaid recipients $572.13To pay Living Centers of America, doing business as Mulberry Manor, for

unpaid charges for nursing home care for Medicaid recipients $3,186.78To pay Living Centers of America, doing business as Retama Manor West

#99, for unpaid charges for nursing home care for Medicaid recipients$2,234.17

To pay Living Centers of America, doing business as Coastal HC, forunpaid charges for nursing care services $226.21

To pay Living Centers of America, doing business as Crestview Manor,for unpaid charges for nursing home care for Medicaid recipients $2,390.41

To pay Living Centers of America, doing business as Green AcresConvalescent Center 76, for unpaid charges for nursing home care for Medicaidrecipients $56.62

To pay Living Centers of America, doing business as Holiday Lodge, forunpaid charges for nursing home care for Medicaid recipients $536.15

To pay Living Centers of America, doing business as Northway HC, forunpaid charges for nursing home care for Medicaid recipients $899.06


To pay Living Centers of America, doing business as Memorial Medical,for unpaid charges for nursing home care for Medicaid recipients $11.37

To pay Living Centers of America, doing business as Retama ManorNursing Center East, for unpaid charges for nursing home care for Medicaidrecipients $90.74

To pay Living Centers of America, doing business as Retama Manor North,for unpaid charges for nursing home care for Medicaid recipients $20.09

To pay Texas Health Enterprises, doing business as Denison Manor, forunpaid charges for nursing home care for Medicaid recipients $1,519.43

To pay Texas Health Enterprises, doing business as Oak Park Care Center,for unpaid charges for nursing home care for Medicaid recipients $3,057.30

To pay Beverly Enterprises of Texas, doing business as Kermit NursingCenter, for unpaid charges for nursing home care for Medicaid recipients

$7.20To pay Outreach Health Services-S.B. for unpaid charges for primary home

care services $710.82To pay Mountain View Place for unpaid charges for nursing home care for

Medicaid recipients $27,298.14To pay Living Centers of America, doing business as Thomas Care, for

unpaid charges for nursing home care for Medicaid recipients $947.99To pay The University of Texas at Austin for unpaid charges for nursing

home care services $4,377.74To pay Texas Home Health, Inc., for unpaid charges for social services

$306.24To pay Texas Health Enterprises, doing business as Anson Place #1, for

unpaid charges for nursing home care for Medicaid recipients $314.52To pay Texas Health Enterprises, doing business as Fairview Nursing

Home, for unpaid charges for nursing home care for Medicaid recipients$299.94

To pay Texas Health Enterprises, doing business as Bluebonnet Manor, forunpaid charges for nursing home care for Medicaid recipients $791.60

To pay The University of Texas at Austin for unpaid charges for suppliesand materials $35,669.88





To pay Beverly Enterprises of Texas, Inc., doing business as CoronadoNursing Center, for unpaid charges for nursing home care for Medicaidrecipients $2,264.78

To pay Beverly Enterprises of Texas, Inc., doing business as Cedar HillNursing Home, for unpaid charges for nursing home care for Medicaidrecipients $1,508.60

To pay Southwestern Bell Telephone for warrant voided by statute oflimitations $5,120.91


To pay Southwestern Bell Telephone for warrant voided by statute oflimitations $1,368.87

To pay Warrell J. Kimble for warrant voided by statute of limitations$1,013.65

To pay Trina Dixson for warrant voided by statute of limitations $52.44To pay Brookhollow Manor for unpaid charges for nursing home care for

Medicaid recipients $15,008.86To pay Northwest Houston Medical Investors, doing business as Villa, for

unpaid charges for nursing home care for Medicaid recipients $4,362.70To pay Sherman Care Associates, Ltd., doing business as County Manor

Care, for unpaid charges for nursing home care for Medicaid recipients$4,796.08

To pay Living Centers of America, doing business as Retama ManorRobstown, for unpaid charges for nursing home care for Medicaid recipients

$200.67To pay Living Centers of America, doing business as Wharton Manor, for

unpaid charges for nursing home care for Medicaid recipients $116.93To pay Living Centers of America, doing business as Retama Manor

Nursing Home, for unpaid charges for nursing home care for Medicaidrecipients $2,272.50

To pay Texas Health Enterprises, doing business as Valley Grande Manor,for unpaid charges for nursing home care for Medicaid recipients $2,465.84

To pay Texas Health Enterprises, doing business as Burleson NursingCenter, for unpaid charges for nursing home care for Medicaid recipients

$2,494.50To pay Renaissance Place of Katy for unpaid charges for nursing home

care for Medicaid recipients $7,517.21To pay Beverly Enterprises, doing business as Lufkin Nursing Center, for

unpaid charges for nursing home care for Medicaid recipients $1,147.17To pay Beverly Enterprises, doing business as Corsicana Nursing Home,

for unpaid charges for nursing home care for Medicaid recipients $130.75To pay Beverly Enterprises, doing business as Beverly Health and

Rehabilitation, for unpaid charges for nursing home care for Medicaid recipients$1,706.24

To pay Beverly Enterprises, doing business as Lubbock Health Care, forunpaid charges for nursing home care for Medicaid recipients $108.83

To pay Beverly Enterprises, doing business as McAllen Nursing Center, forunpaid charges for nursing home care for Medicaid recipients $22.81

To pay The University of Texas at Austin for unpaid charges for claimpreparation services $2,572.90

To pay The University of Texas at Austin for unpaid charges for claimpreparation services $885.60

To pay The University of Texas at Austin for unpaid charges for telephonesurvey $1,326.00

To pay The University of Texas at Austin for unpaid charges for telephonesurvey $7,344.00

To pay The University of Texas at Austin for unpaid charges for automatedevaluation system $6,862.37


To pay The University of Texas at Austin for unpaid charges for automatedevaluation system$1,679.38

To pay The University of Texas at Austin for unpaid charges for caregiverstatus survey $1,297.43

To pay The University of Texas at Austin for unpaid charges for child-care market rate survey $9,993.00

To pay El Paso Convalescent for unpaid charges for nursing aide training$249.30

To pay Beverly Enterprises, doing business as Leisure Lodge of Carthage,for unpaid charges for nursing home care for Medicaid recipients $4,547.00

To pay Living Centers of America, doing business as Brazos Valley, forunpaid charges for nursing home care for Medicaid recipients $437.25

To pay Living Centers of America, doing business as Winchester Lodge,for unpaid charges for nursing home care for Medicaid recipients $262.36

To pay Living Centers of America, doing business as Shoreline Healthcare,for unpaid charges for nursing home care for Medicaid recipients $157.50

To pay Living Centers of America, doing business as Retama Manor West,for unpaid charges for nursing home care for Medicaid recipients $11,750.40

To pay Living Centers of America, doing business as Retama ManorMcAllen, for unpaid charges for nursing home care for Medicaid recipients

$3,431.86To pay Living Centers of America, doing business as Twin Oaks, for

unpaid charges for nursing home care for Medicaid recipients $347.86To pay Living Centers of America, doing business as Broadway Lodge, for

unpaid charges for nursing home care for Medicaid recipients $1,052.98To pay Living Centers of America, doing business as The Village, for

unpaid charges for nursing home care for Medicaid recipients $3,015.55To pay Living Centers of America, doing business as Memorial Medical,

for unpaid charges for nursing home care for Medicaid recipients $1,532.32To pay Living Centers of America, doing business as Memorial Medical,

for unpaid charges for nursing home care for Medicaid recipients $491.49To pay Living Centers of America, doing business as Edgewater Care


To pay Living Centers of America, doing business as Weatherford H.C.,for unpaid charges for nursing home care for Medicaid recipients $542.68

To pay The Manor Retirement and Convalescent Center for unpaid chargesfor nursing home care for Medicaid recipients $2,487.91

To pay Texas Health Enterprises, doing business as Green Crest Manor,for unpaid charges for nursing home care for Medicaid recipients $1,701.01

To pay Texas Health Enterprises, doing business as Quanah Parker NursingHome, for unpaid charges for nursing home care for Medicaid recipients

$425.88To pay Beverly Enterprises, doing business as Monterey Care, for unpaid

charges for nursing home care for Medicaid recipients $30.24To pay Texas Health Enterprises, doing business as C. V. DeLeon, for

unpaid charges for nursing home care for Medicaid recipients $839.37To pay Vitas Healthcare Corporation for unpaid charges for hospice

services $80,503.20


To pay Vitas Healthcare Corporation for unpaid charges for hospiceservices $32,125.44

To pay Vitas Healthcare Corporation for unpaid charges for hospiceservices $12,385.99

To pay Southern Union Gas for Franklin D. Reid for warrant voided bystatute of limitations $87.00

(b) The amounts appropriated by Subsection (a) of this section shall bedrawn out of the following sources: $682,298.88 from the General RevenueFund No. 001 and $967,028.90 from federal funds.

SECTION 6. REAL ESTATE COMMISSION. The following sum ofmoney is appropriated out of the General Revenue Fund No. 001 for paymentof itemized claims against the State of Texas:

To pay Gene Frank Edwards for warrant voided by statute of limitations$10.00

SECTION 7. REHABILITATION COMMISSION. (a) The followingsums of money are appropriated out of the General Revenue Fund No. 001for payment of itemized claims against the State of Texas:

To pay James L. Jackson for warrant voided by statute of limitations$254.55

To pay Jay Graham for warrant voided by statute of limitations $300.00To pay Dallas County Mental Health and Mental Retardation Center for

warrant voided by statute of limitations $15.00To pay Mike Nguyen for warrant voided by statute of limitations$300.00To pay Caroll Kennedy (formerly Collier) for warrant voided by statute of

limitations $620.00(b) The following sums of money are appropriated out of the

Comprehensive Rehabilitation Account No. 107 for payment of itemized claimsagainst the State of Texas:

To pay the Institute of Rehabilitation and Research for unpaid charges forrehabilitation services $24,095.51

To pay the Institute for Rehabilitation and Research for unpaid charges forrehabilitation services $13,988.04

To pay S. L. Smith, doing business as Smith Chiropractic Clinic, for unpaidcharges for medical records $15.00

To pay Quality Copy Service, Inc., for unpaid charges for copying services$15.00

To pay Beeler-Manske Clinic for unpaid charges for X-ray services$130.09

To pay Rexford K. Anderson, Jr., for unpaid charges for medical records$45.00

SECTION 8. DEPARTMENT OF PUBLIC SAFETY. (a) The followingsum of money is appropriated out of the General Revenue Fund No. 001 forpayment of itemized claims against the State of Texas:

To pay Katherine Kay McGhghy for warrant voided by statute oflimitations $600.00

(b) The following sums of money are appropriated out of the StateHighway Fund No. 006 for payment of itemized claims and judgments plusinterest, if any, against the State of Texas:

To pay George Olivo for warrant voided by statute of limitations $209.20


To pay Matt Trevena according to the terms of a judgment in the case ofJames Gilbreath v. Department of Public Safety$7,846.00 (c) The followingsum of money is appropriated out of the Operators and Chauffeurs LicenseAccount No. 099 for payment of itemized claims against the State of Texas:

To pay Darrell Guess for warrant voided by statute of limitations$60.00SECTION 9. WORKERS' COMPENSATION COMMISSION. The

following sum of money is appropriated out of the General Revenue Fund No.001 for payment of itemized claims against the State of Texas:

To pay Mandie L. Bradford for warrant voided by statute of limitations$166.94

SECTION 10. RAILROAD COMMISSION. The following sums ofmoney are appropriated out of the General Revenue Fund No. 001 for paymentof itemized claims against the State of Texas:

To pay Austin Transportation, Inc., care of J. D. Austin, for warrant voidedby statute of limitations $100.00

To pay Austin Transportation, Inc., for warrant voided by statute oflimitations $22.00


SECTION 11. DEPARTMENT OF HEALTH. (a) The following sumsof money are appropriated out of the General Revenue Fund No. 001 forpayment of itemized claims against the State of Texas:

To pay Julie Theresa Sanders for warrant voided by statute of limitations$94.53

To pay Konica Business Machines for unpaid charges for photocopier$26,559.00

(b) The following sum of money is appropriated out of the Vital StatisticsAccount No. 019 for payment of itemized claims against the State of Texas:

To pay Doris P. Smith for warrant voided by statute of limitations $2.00SECTION 12. DEPARTMENT OF PROTECTIVE AND REGULATORY

SERVICES. (a) The following sums of money are appropriated to theDepartment of Protective and Regulatory Services, out of the funds indicatedbelow, for payment of itemized claims against the State of Texas:

To pay Joal Cannon Sheridan for attorney fees for child protective services$1,407.50

To pay Bexar County Child Welfare Board for unpaid charges for childprotective services $5,495.58

To pay Family Service Center of Galveston County, Inc., for unpaidcharges for protective services $50.00

To pay Family Service Center of Galveston County, Inc., for unpaidcharges for protective services $25.00

To pay Sandra Rouce, doing business as Yoakum Psychological Associates,for unpaid charges for professional services $6,064.00

To pay Yoakum Psychological Associates for unpaid charges forprofessional services $1,359.00

To pay Beverly Enterprises, doing business as Pioneer Place, for unpaidcharges for adult protective services $7,320.00

To pay Willow Bend Care Center for unpaid charges for adult protectiveservices $1,972.00


To pay Tarrant County Child Welfare Board for unpaid charges for fostercare services $3,768.00

To pay Tarrant County Child Welfare Board for unpaid charges for fostercare services $13,271.14

To pay Bexar County Child Welfare Board for unpaid charges for fostercare services $4,252.26

To pay The University of Texas at Austin for unpaid charges for foster careservices $1,731.57

(b) The amounts appropriated by Subsection (a) shall be drawn out of thefollowing sources: $15,483.34 from the General Revenue Fund No. 001 and$31,232.71 from federal funds.

SECTION 13. EXECUTIVE COUNCIL OF PHYSICAL THERAPY ANDOCCUPATIONAL THERAPY EXAMINERS. The following sum of moneyis appropriated out of the General Revenue Fund No. 001 for payment ofitemized claims against the State of Texas:

To pay Van D. Dailey for warrant voided by statute of limitations$120.00S E C T I O N 1 4 . N A T U R A L R E S O U R C E C O N S E R V A T I O N

COMMISSION. (a) The following sum of money is appropriated out of thePetroleum Storage Tank Remediation Account No. 655 for payment of itemizedclaims against the State of Texas:

To pay L&M Grocery, Inc., for warrant voided by statute of limitations$2,494.73

(b) The following sum of money is appropriated out of the funds specifiedfor the payment of itemized claims and judgments plus interest, if any, againstthe State of Texas:

To pay the Bourdeau Group, Ltd., and its attorney, Dan Miller, accordingto the terms of a judgment in the case of The Bourdeau Group, Ltd., v. TexasNatural Resource Conservation Commission plus 10 percent interest per yearfrom June 27, 1996, until paid, to be computed by the comptroller, with thefirst $300,000 to be paid out of the Petroleum Storage Tank RemediationAccount No. 655 and the balance to be paid out of the Storage Tank AccountNo. 583$704,255.72

(c) The Texas Natural Resource Conservation Commission is authorized toexpend appropriations made to the commission for the biennium beginningSeptember 1, 1997, for the additional purpose of paying Thomas P. McDill, Jr.,and his attorney, Craig Deats, an amount not to exceed $653,585.39 as asettlement, including all accrued interest and attorney's fees, in the case ofThomas P. McDill, Jr., v. Texas Natural Resource Conservation Commission,contingent on the receipt by the State of Texas of a full and complete releasefrom all claims or causes of action related to the case by each party to the case.

SECTION 15. DEPARTMENT OF TRANSPORTATION. (a) Thefollowing sums of money are appropriated out of the State Highway Fund No.006 for payment of itemized claims against the State of Texas:

To pay Estate of Frankie D. Horton, care of Richard W. Horton, forwarrant voided by statute of limitations $1,099.77

To pay South Post Oak Pharmacy for unpaid workers' compensationbenefits for Sammy Wright $204.16

To pay Missouri Pacific Railroad Company for warrant voided by statuteof limitations $4,894.96


To pay Howard R. Tyer for warrant voided by statute of limitations$653.03To pay Reginald W. Rogers, Jr., for warrant voided by statute of limitations

$73.50(b) The following sum of money is appropriated out of the Proportional

Registration Distributive Trust Fund No. 021 for payment of itemized claimsagainst the State of Texas:


SECTION 16. DEPARTMENT OF MENTAL HEALTH AND MENTALRETARDATION. The following sums of money are appropriated out of theGeneral Revenue Fund No. 001 for payment of itemized claims against theState of Texas:

To pay Donald Wayne Lewis for warrant voided by statute of limitations$185.00

To pay Angie Ortiz (formerly Varela) for warrant voided by statute oflimitations $79.00

To pay Alberta L. Taylor for warrant voided by statute of limitations$581.92

To pay Janice M. Bradford for warrant voided by statute of limitations$111.00

To pay Thaniel Jenkins for warrant voided by statute of limitations$134.27

To pay Rebecca Ann Young for warrant voided by statute of limitations$224.61

To pay Sonia Singleton (formerly McClarron) for warrant voided by statuteof limitations $428.92

SECTION 17. YOUTH COMMISSION. The following sum of money isappropriated out of the General Revenue Fund No. 001 for payment of itemizedclaims against the State of Texas:

To pay Helen E. Bradshaw for warrant voided by statute of limitations$70.10

SECTION 18. DEPARTMENT OF CRIMINAL JUSTICE. (a) Thefollowing sums of money are appropriated out of the General Revenue FundNo. 001 for payment of itemized claims against the State of Texas:

To pay Laurie J. Brantley for warrant voided by statute of limitations$131.56

To pay General Office Supply, Inc., for unpaid charges for office supplies$40.28

To pay Joel L. Enge for warrant voided by statute of limitations $119.03To pay the City of Amarillo for unpaid charges for water analysis $8.00To pay Mary A. Fowler for warrant voided by statute of limitations

$1,311.74To pay Laura Hawkins Hunt (formerly Woodall) for warrant voided by

statute of limitations $153.25To pay Lovie D. Jones for warrant voided by statute of limitations

$1,903.85To pay the Houston Chronicle for unpaid charges for employment ads

$234.90


To pay the Tarrant County Sheriff's Office for unpaid charges fortransporting inmates $50,224.40

(b) From the amounts previously appropriated to the Texas Department ofCriminal Justice out of general obligation bond proceeds by Chapter 1063, Actsof the 74th Legislature, Regular Session, 1995 (the General Appropriations Act),the sum of $8,000,000 is reappropriated to the Texas Department of CriminalJustice for the purpose of paying a settlement in the case of MKK Technologies,Inc./North Star Construction, Inc., a Joint Venture v. Texas Department ofCriminal Justice, Institutional Division, contingent on the receipt by the Stateof Texas of a full and complete release from all claims or causes of actionrelated to the case by each party in the case.

(c) The Texas Department of Criminal Justice is authorized to expendappropriations made to the department for the biennium beginning September1, 1997, for the additional purpose of paying Robert W. Frazier and hisattorney, D. Phillip Adkins, according to the terms of a judgment in the caseof Robert W. Frazier v. Texas Department of Criminal Justice in the amountof $40,383.44 plus 10 percent interest per year from October 7, 1994, untilpaid.

SECTION 19. PRAIRIE VIEW A&M UNIVERSITY. The following sumsof money are appropriated out of the Prairie View A&M University CurrentAccount No. 245 for payment of itemized claims against the State of Texas:

To pay Canon, U.S.A., for unpaid charges for copier services $4,330.52To pay Canon, U.S.A., for unpaid charges for copier services $14,115.00SECTION 20. TEXAS TECH UNIVERSITY. The following sum of

money is appropriated out of the General Revenue Fund No. 001 for paymentof itemized claims against the State of Texas:

To pay Doris Anders for warrant voided by statute of limitations $160.00SECTION 21. MIDWESTERN STATE UNIVERSITY. The following

sum of money is appropriated out of the General Revenue Fund No. 001 forpayment of itemized claims against the State of Texas:

To pay Mary Pliska for warrant voided by statute of limitations $86.36SECTION 22. HIGHER EDUCATION COORDINATING BOARD. The

following sum of money is appropriated out of the Texas Opportunity PlanFund No. 387 for payment of itemized claims against the State of Texas:

To pay Nilda L. Yebra (formerly Villarreal) for warrant voided by statuteof limitations $480.42

SECTION 23. PARKS AND WILDLIFE DEPARTMENT. (a) Thefollowing sums of money are appropriated out of the General Revenue FundNo. 001 for payment of itemized claims against the State of Texas:

To pay City National Bank of Sulphur Springs for warrant voided bystatute of limitations $10.00

To pay M&M Used Cars for warrant voided by statute of limitations$18.00(b) The following sum of money is appropriated out of the Game, Fish,

and Water Safety Account No. 009 for payment of itemized claims against theState of Texas:

To pay Trailite, Inc., for warrant voided by statute of limitations $314.25(c) The following sums of money are appropriated out of the State Parks

Account No. 064 for payment of itemized claims against the State of Texas:To pay Canon, U.S.A., Inc., for unpaid charges for copier maintenance

$2,481.70


To pay Victor Alvarado for warrant voided by statute of limitations$92.00

SECTION 24. COMPTROLLER—STATE FISCAL. (a) The followingsums of money are appropriated out of the General Revenue Fund No. 001for payment of itemized claims against the State of Texas:

To pay Valley Systems, Inc., for warrant voided by statute of limitations$241.50

To pay MGM Sports Sales, Inc., for warrant voided by statute oflimitations $81.07

To pay GTE Southwest Incorporated for warrant voided by statute oflimitations $492,692.53

To pay Cook Wholesale Jewelry Co., Inc. (formerly Schurba WholesaleJewelry Co., Inc.), for warrant voided by statute of limitations $98.25

To pay Boeing Defense & Space-Irving Company for warrant voided bystatute of limitations $224,134.45

To pay El Paso Natural Gas Company for warrant voided by statute oflimitations $192,916.90

To pay Lifetime Health Care, care of Burl Daniel, for warrant voided bystatute of limitations $34.47

To pay GTE Communication Systems Corporation for warrant voided bystatute of limitations $276,828.06




To pay Bridge Oil Production Company, Inc., for warrant voided by statuteof limitations $52,436.77

To pay Peggy Lee An for warrant voided by statute of limitations$417.68

To pay NationsBanc Mortgage Corporation for warrant voided by statuteof limitations $48,221.10

To pay Standard & Poors Corporation for warrant voided by statute oflimitations $2,078.22

To pay Dewline, Inc., for warrant voided by statute of limitations$2,190.30

To pay Esis, Inc., for warrant voided by statute of limitations $10,011.74To pay Esis, Inc., for warrant voided by statute of limitations $60,072.44To pay Esis, Inc., for warrant voided by statute of limitations $5,004.87To pay Esis, Inc., for warrant voided by statute of limitations $2,989.22To pay Esis, Inc., for warrant voided by statute of limitations $2,267.87To pay Esis, Inc., for warrant voided by statute of limitations $2,637.67To pay Esis, Inc., for warrant voided by statute of limitations $17,940.32To pay Exxon Pipeline Company for warrant voided by statute of

limitations $6,684.33To pay Exxon Pipeline Company for warrant voided by statute of

limitations $27,201.41To pay Exxon Pipeline Company for warrant voided by statute of

limitations $11,098.00


To pay Olin L. Austin & J. D. Austin for warrant voided by statute oflimitations $220.50

To pay INA Life Insurance Company for warrant voided by statute oflimitations $23,075.00

To pay Alliance Mortgage Company for warrant voided by statute oflimitations $5,567.00

To pay Page Avjet Corporation for warrant voided by statute of limitations$7,944.44

To pay GTE Products Corporation for warrant voided by statute oflimitations $6,798.78

To pay Delton Ray Bennetsen for warrant voided by statute of limitations$181.30

To pay Affiliated Foods, Inc., for warrant voided by statute of limitations$34,286.90

To pay Community Hospital Association, doing business as Heritage HouseNursing Home, for warrant voided by statute of limitations $11,175.94

To pay Williams Fried Chicken, Inc., for warrant voided by statute oflimitations $2,729.31

To pay David W. Steele for warrant voided by statute of limitations$25.00To pay Liquid Air Corporation (N/K/A Air Liquide America Corp.) for

warrant voided by statute of limitations $6,502.04To pay Petroleum Wholesale, Inc., for warrant voided by statute of

limitations $6,346.75To pay David West for warrant voided by statute of limitations $37.50To pay Phuoc Van Nguyen for warrant voided by statute of limitations

$500.00(b) The following sums of money are appropriated out of the Local

Government Corporate Banking Franchise Tax Fund No. 535 for payment ofitemized claims against the State of Texas:

To pay Cuero ISD for warrant voided by statute of limitations $5,090.92To pay Nixon Hospital District for warrant voided by statute of limitations

$410.26To pay Gonzales County Fire District for warrant voided by statute of

limitations $464.66(c) The following sums of money are appropriated out of the County Sales

Tax Trust Account No. 996 for payment of itemized claims against the Stateof Texas:



SECTION 25. TEXAS HOUSE OF REPRESENTATIVES. The followingsums of money are appropriated out of the General Revenue Fund No. 001 forpayment of itemized claims against the State of Texas:

To pay Albert Edwards for warrant voided by statute of limitations$1,063.34

To pay Delwin Jones for reimbursement for travel expenses $2,578.15SECTION 26. TEXAS STATE TECHNICAL COLLEGE SYSTEM. The

following sums of money are appropriated out of the General Revenue Fund


No. 001 for payment of itemized claims and judgments plus interest, if any,against the State of Texas:

To pay David Snyder and his attorney, Kevin Glasheen, according to theterms of a judgment in the case of David Snyder and Eldon Davidson v. TexasState Technical College System plus 10 percent interest per year from the datethe judgment is entered until paid, to be computed by thecomptroller$1,698,940.49

To pay Eldon Davidson and his attorney, Kevin Glasheen, according to theterms of a judgment in the case of David Snyder and Eldon Davidson v. TexasState Technical College System plus 10 percent interest per year from the datethe judgment is entered until paid, to be computed by thecomptroller$634,348.15

SECTION 27. UNIVERSITY OF HOUSTON SYSTEM. The Universityof Houston System is authorized to expend appropriations made to theUniversity of Houston for the biennium beginning September 1, 1997, for theadditional purpose of paying CW Systems, Inc., according to the terms of ajudgment in the case of CW Systems, Inc., v. University of Houston Systemin the amount of $528,252.65 plus interest at the rate of one percent above theprime interest rate published by Bank One, Texas, N.A., from October 7, 1996,until paid.

SECTION 28. APPROVAL OF CLAIMS AND JUDGMENTS. (a)Before any claim or judgment may be paid from money appropriated by thisAct, the claim or judgment must be verified and substantiated by theadministrator of the special fund or account against which the claim is to becharged and be approved by the attorney general and the comptroller. Anyclaim or judgment itemized in this Act that has not been verified andsubstantiated by the administrator of the special fund or account and approvedby the attorney general and the comptroller by August 31, 1998, may not bepaid from money appropriated by this Act.

(b) Each claim must contain such information as the comptroller requires,but at a minimum must contain the specific reason for the claim. If the claimis for a void warrant, the claim must include a specific identification of thegoods, services, refund, or other item for which the warrant was originallyissued. In addition, it must include a certification by the original payee or theoriginal payee's successor, heirs, or assigns that the debt is still outstanding. Ifthe claim is for unpaid goods or services, it must be accompanied by an invoiceor other acceptable documentation of the unpaid account and any otherinformation that may be required by the comptroller.

SECTION 29. PAYMENT OF CLAIMS AND JUDGMENTS. Subject tothe conditions and restrictions in this Act and provisions stated in thejudgments, the comptroller is authorized and directed to issue one or morewarrants on the state treasury, as soon as possible following the effective dateof this Act, in the favor of each of the individuals, firms, or corporations namedin this Act, in an amount not to exceed the amount set opposite their respectivenames and shall mail or deliver to each of the individuals, firms, or corporationsone or more warrants in payment of all claims included in this Act.

SECTION 30. EFFECTIVE DATE. This Act takes effect September 1, 1997.SECTION 31. EMERGENCY 31. The importance of this legislation and

the crowded condition of the calendars in both houses create an emergency and


an imperative public necessity that the constitutional rule requiring bills to beread on three several days in each house be suspended, and this rule is herebysuspended.



Representative Maxey called up with senate amendments for considerationat this time,

HB 2846, A bill to be entitled An Act relating to the provision of healthcare services by advanced practice nurses and physician assistants incollaborative practice with physicians.

Representative Maxey moved that the house not concur in the senateamendments and that a conference committee be requested to adjust thedifferences between the two houses on HB 2846.


The speaker announced the appointment of the following conferencecommittee, on the part of the house, on HB 2846: Berlanga, chair, Delisi,Davila, Hirschi, and Maxey.


Representative Rangel called up with senate amendments for considerationat this time,

HB 3112, A bill to be entitled An Act relating to the authorization ofpayroll deductions by employees of institutions of higher education for parkingfees or parking permits.

On motion of Representative Rangel, the house concurred in the senateamendments to HB 3112 by (Record 489): 142 Yeas, 0 Nays, 1 Present, notvoting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Bosse; Brimer; Burnam; Carter; Chavez; Chisum; Christian; Clark; Coleman;Cook; Corte; Counts; Crabb; Craddick; Cuellar; Culberson; Danburg; Davila;Davis; Delisi; Denny; Driver; Dukes; Dunnam; Dutton; Edwards; Ehrhardt;Eiland; Elkins; Farrar; Finnell; Flores; Gallego; Galloway; Garcia; Glaze;Goodman; Goolsby; Gray; Greenberg; Grusendorf; Gutierrez; Haggerty; Hamric;Hartnett; Hawley; Heflin; Hernandez; Hightower; Hilbert; Hilderbran; Hill;Hinojosa; Hirschi; Hochberg; Hodge; Holzheauser; Horn; Howard; Hunter;Hupp; Isett; Jackson; Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel; Keffer;Krusee; Kubiak; Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna; Madden;Marchant; Maxey; McCall; McClendon; McReynolds; Merritt; Moffat; Moreno;Naishtat; Nixon; Oakley; Oliveira; Olivo; Palmer; Patterson; Pickett; Pitts;Place; Price; Puente; Rabuck; Ramsay; Rangel; Reyna, A.; Reyna, E.; Rhodes;Roman; Sadler; Seaman; Serna; Siebert; Smith; Solis; Solomons; Staples; Stiles;Swinford; Talton; Telford; Thompson; Tillery; Torres; Turner, B.; Turner, S.;Uher; Van de Putte; Walker; West; Williams; Williamson; Wilson; Wise;Wohlgemuth; Wolens; Woolley; Yarbrough; Zbranek.




Absent — Giddings; King; Mowery; Raymond; Shields.


CSHB 3112, A bill to be entitled An Act relating to the authorization ofpayroll deductions by employees of institutions of higher education for parkingfees or parking permits.


SECTION 1. Chapter 659, Government Code, is amended by addingSubchapter J to read as follows:

SUBCHAPTER J. PAYROLL DEDUCTION OFPARKING FEES AND PERMITS

AT INSTITUTIONS OF HIGHER EDUCATIONSec. 659.201. DEFINITION. In this subchapter, "institution of higher

education" has the meaning assigned by Section 61.003, Education Code.Sec. 659.202. DEDUCTION AUTHORIZED; USE OF FUNDS. (a) An

employee of an institution of higher education may authorize in writing adeduction each pay period from the employee's salary or wage payment for thepayment of parking fees charged by the institution of higher education or forthe purchase of a parking permit from an institution of higher education. Anauthorization for a deduction under this subchapter by the employee isvoluntary.

(b) Funds collected under this section may be used only to provide parkingfacilities for employees of the institution.

Sec. 659.203. FORM AND MANNER. A deduction under this subchaptermust be made in a form and manner prescribed by the appropriate financialofficer of the institution of higher education.

Sec. 659.204. CHANGE; DURATION. (a) An employee authorizing adeduction under this subchapter may change or revoke the authorization bydelivering written notice of the change or revocation to the financial officer ofthe institution of higher education.

(b) An authorization under this subchapter is effective until the financialofficer receives a notice under Subsection (a) changing or revoking theauthorization.

(c) The notice given under Subsection (a) must be in the form and mannerprescribed by the appropriate financial officer of the institution of highereducation.

SECTION 2. The importance of this legislation and the crowded conditionof the calendars in both houses create an emergency and an imperative publicnecessity that the constitutional rule requiring bills to be read on three severaldays in each house be suspended, and this rule is hereby suspended, and thatthis Act take effect and be in force from and after its passage, and it is soenacted.


Representative Hightower called up with senate amendments forconsideration at this time,


HB 3581, A bill to be entitled An Act relating to the termination of certainreceiverships.

On motion of Representative Hightower, the house concurred in the senateamendments to HB 3581 by (Record 490): 144 Yeas, 0 Nays, 1 Present, notvoting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Bosse; Brimer; Burnam; Carter; Chavez; Chisum; Christian; Clark; Cook; Corte;Counts; Crabb; Craddick; Cuellar; Culberson; Danburg; Davila; Davis; Delisi;Denny; Driver; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland; Elkins;Farrar; Finnell; Flores; Gallego; Galloway; Garcia; Glaze; Goodman; Goolsby;Gray; Greenberg; Grusendorf; Gutierrez; Haggerty; Hamric; Hartnett; Hawley;Heflin; Hernandez; Hightower; Hilbert; Hilderbran; Hill; Hinojosa; Hirschi;Hochberg; Hodge; Holzheauser; Horn; Howard; Hunter; Hupp; Isett; Jackson;Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel; Keffer; King; Krusee; Kubiak;Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna; Madden; Marchant; Maxey;McCall; McClendon; McReynolds; Merritt; Moffat; Moreno; Mowery; Naishtat;Nixon; Oakley; Oliveira; Olivo; Palmer; Patterson; Pickett; Pitts; Place; Price;Puente; Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.; Rhodes;Roman; Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis; Solomons;Staples; Stiles; Swinford; Talton; Thompson; Tillery; Torres; Turner, B.;Turner, S.; Uher; Van de Putte; Walker; West; Williams; Williamson; Wilson;Wise; Wohlgemuth; Wolens; Woolley; Yarbrough; Zbranek.



Absent — Coleman; Giddings; Telford.


Amend HB 3581 in SECTION 1 of the bill, in added Section 64.0721,Civil Practice and Remedies Code (committee report, page 1 between lines 36and 37), after Subsection (c), by adding the following subsection:

(d) Any non-cash assets of a railroad company that exist when itsreceivership is terminated under this section escheat to the state.


Representative Hawley called up with senate amendments for considerationat this time,

HB 3590, A bill to be entitled An Act relating to the creation,administration, powers, duties, operation, and financing of the San PatricioGroundwater Conservation District.

On motion of Representative Hawley, the house concurred in the senateamendments to HB 3590.


Amend HB 3590 as follows:In SECTION 5 of the bill, add a new subsection (c) to read as follows:


(c) Notwithstanding Subsection (a) of this Section, the followingprovisions prevail over a conflicting or inconsistent provision in this Act:

(1) Sections 36.107-36.108, Water Code;(2) Sections 36.159-36.161, Water Code; and(3) Subchapter I, Water Code.

HCR 44 - HOUSE CONCURS IN SENATE AMENDMENTSTEXT OF SENATE AMENDMENTS

Representative Delisi called up with senate amendments for considerationat this time,

HCR 44, A resolution relating to directing the Texas Department of Health,the Lyndon Baines Johnson School of Public Affairs, the Blackland ResearchCenter and the School of Rural Public Health, to study the role of localgovernments in providing public health services.

On motion of Representative Delisi, the house concurred in the senateamendments to HCR 44.


Amend HCR 44 as follows:1) On page 1, line 19, between "Texas" and "and", insert "The University

of Texas-Houston Health Science Center School of Public Health,".2) On page 2, line 6, between "Affairs" and "the", insert "the dean of The

University of Texas-Houston Health Science Center School of Public Health,".


Representative Raymond called up with senate amendments forconsideration at this time,

HB 1640, A bill to be entitled An Act relating to assessment of adulteducation programs and program participants.

On motion of Representative Raymond, the house concurred in the senateamendments to HB 1640.


CSHB 1640, A bill to be entitled An Act relating to assessment of adulteducation programs and program participants.


SECTION 1. Section 29.252, Education Code, is amended to read asfollows:

Sec. 29.252. STATE ROLE IN ADULT AND COMMUNITYEDUCATION. (a) The agency shall:

(1) provide adequate staffing to develop, administer, and support acomprehensive statewide adult education program and coordinate related federaland state programs for education and training of adults;

(2) develop, implement, and regulate a comprehensive statewideprogram for community level education services to meet the special needs ofadults;


(3) develop the mechanism and guidelines for coordination ofcomprehensive adult education and related skill training services for adults withother agencies, both public and private, in planning, developing, andimplementing related programs, including community education programs;

(4) administer all state and federal funds for adult education andrelated skill training in this state, except in programs for which another entityis specifically authorized to do so under other law;

(5) prescribe and administer standards and accrediting policies for adulteducation;

(6) prescribe and administer rules for teacher certification for adulteducation; [and]

(7) accept and administer grants, gifts, services, and funds fromavailable sources for use in adult education; and

(8) adopt or develop and administer a standardized assessmentmechanism for assessing all adult education program participates who needliteracy instruction, adult basic education, or secondary education leading to anadult high school diploma or the equivalent.

(b) The assessment mechanism prescribed under Subsection (a)(8) mustinclude an initial basic skills screening instrument and must providecomprehensive information concerning baseline student skills before and studentprogress after participation in an adult education program.

SECTION 2. (a) Not later than September 15, 1997, the Texas EducationAgency shall complete development of the initial basic skills screeninginstrument component of the standardized assessment mechanism prescribedunder Section 29.252, Education Code, as amended by this Act. Not later thanJanuary 1, 1998, the Texas Education Agency shall implement the initial basicskills screening instrument component.

(b) Not later than July 1, 1998, the Texas Education Agency shall completedevelopment of the baseline student skills assessment component of thestandardized assessment mechanism prescribed under Section 29.252, EducationCode, as amended by this Act. Not later than September 1, 1998, the TexasEducation Agency shall implement the baseline student skills assessmentcomponent.

(c) Not later than August 1, 1999, the Texas Education Agency shallcomplete development of the student progress assessment component of thestandardized assessment mechanism under Section 29.252, Education Code, asamended by this Act. Not later than September 1, 1999, the Texas EducationAgency shall implement the student progress assessment component.

SECTION 3. Not later than September 1, 1998, the Texas EducationAgency shall develop a comprehensive management information system tomeasure the progress of and results achieved by adult education programs bycollecting individual student data concerning students in adult educationprograms, including assessment data. The management information system mustbe compatible with any related system used by the Texas WorkforceCommission.

SECTION 4. The importance of this legislation and the crowded conditionof the calendars in both houses create an emergency and an imperative publicnecessity that the constitutional rule requiring bills to be read on three severaldays in each house be suspended, and this rule is hereby suspended, and thatthis Act take effect and be in force from and after its passage, and it is soenacted.


HR 999 - ADOPTED(by Williams)

Representative Williams moved to suspend all necessary rules to take upand consider at this time HR 999.



HR 999, Honoring Rusty Pierce for his athletic achievements.


On motion of Representative McCall, the names of all the members of thehouse were added to HR 999 as signers thereof.

INTRODUCTION OF GUEST

The speaker recognized Representative Williams, who introduced RustyPierce.

HR 1044 - ADOPTED(by Oakley)

Representative Oakley moved to suspend all necessary rules to take up andconsider at this time HR 1044.



HR 1044, Honoring Louis William "Bob" Conradt, Sr., on his manyaccomplishments and congratulating him on the occasion of his granddaughter'sgraduation.


On motion of Representative Price, the names of all the members of thehouse were added to HR 1044 as signers thereof.

HR 1045 - ADOPTED(by Oakley)

Representative Oakley moved to suspend all necessary rules to take up andconsider at this time HR 1045.



HR 1045, Honoring Tracy Morgan on her high school graduation and heracceptance to The University of Texas at Austin.


On motion of Representative Price, the names of all the members of thehouse were added to HR 1045 as signers thereof.


BILLS AND JOINT RESOLUTIONS ON FIRST READINGAND REFERRAL TO COMMITTEES

RESOLUTIONS REFERRED TO COMMITTEES

Bills and joint resolutions were at this time laid before the house, readfirst time, and referred to committees. Resolutions were at this time laid beforethe house and referred to committees. (See the addendum to the daily journal,Referred to Committees, List No. 1.)



COMMITTEE GRANTED PERMISSION TO MEET

Representative Oliveira requested permission for the Committee onEconomic Development to meet while the house is in session.

Permission to meet was granted without objection.

COMMITTEE MEETING ANNOUNCEMENT

The following committee meeting was announced:

Economic Development, 3:15 p.m. today, speakers committee room.

CSSB 1 - (unfinished business)

Amendment No. 1

On behalf of Representative Kuempel, Representative R. Lewis offered thefollowing amendment to CSSB 1:

Amend CSSB 1 as follows:(1) In Section 16.051(e), Water Code, as proposed by SECTION 1.01 of

the bill, after "transfers." (Committee Printing page 2, line 15), add thefollowing:The plan shall identify river and stream segments of unique ecological valueand sites of unique value for the construction of reservoirs that the boardrecommends for protection under this section.

(f) The legislature may designate a:(1) river or stream segment of unique ecological value; or(2) site of unique value for the construction of a reservoir.

(g) A state agency or political subdivision of the state may not obtain afee title or an easement that would:

(1) destroy the unique ecological value of a river or stream segmentdesignated by the legislature under Subsection (f); or

(2) significantly prevent the construction of a reservoir on a sitedesignated by the legislature under Subsection (f).

(h) The board, commission, or Parks and Wildlife Department or a politicalsubdivision affected by an action taken in violation of Subsection (g) may bringa cause of action to remedy or prevent the violation. A cause of action broughtunder this subsection must be filed in a district court in Travis County or inthe county in which the action is proposed or occurring.


(2) Strike Section 16.053(e)(3), Water Code, as proposed by SECTION1.02 of the bill (Committee Printing page 4, lines 20-23), and substitute thefollowing:

(3) has specific provisions for water management strategies to be used:(A) during a drought of record;(B) when flows are at 75 percent of normal; and(C) when flows are at 50 percent of normal;

(3) In Section 16.053(e)(4), Water Code, as proposed by SECTION 1.02of the bill, between "holder" and the period (Committee Printing page 6, line1), insert the following:; and

(5) identifies river and stream segments of unique ecological value andsites of unique value for the construction of reservoirs that the regional grouprecommends for protection under Section 16.051

Amendment No. 1 was adopted without objection.

Amendment No. 2

Representative McReynolds offered the following amendment to CSSB 1:

Amend CSSB 1 as follows:(1) In SECTION 1.02 of the bill, proposed Subsection (e)(4)(I), Section

16.053, Water Code (Committee Printing, page 5, line 26), strike"nonmunicipal use" and substitute "other than domestic or municipal use".

(2) In SECTION 1.02 of the bill, proposed Subsection (e)(4)(I), Section16.053, Water Code (Committee Printing, page 6, line 1), strike "thenonmunicipal water rights holder" and substitute ", or unreasonable economicloss to, the holder of the permit, certified filing, or certificate of adjudicationfor other than domestic or municipal use".

(3) In SECTION 3.03 of the bill, amended Section 11.139, Water Code,between Subsections (h) and (i) (Committee Printing, page 49, between lines17 and 18), insert the following subsections and reletter the subsequentsubsections appropriately:

(i) The executive director or the commission, in determining the part of apermit, certified filing, or certificate of adjudication for other than domestic ormunicipal use to be temporarily transferred under this section, shall considerthe information concerning emergency transfers included in the regional waterplan under Section 16.053(e)(4)(I).

(j) The executive director or the commission may not transfer an amountof water that would result in unreasonable damage to property of, orunreasonable economic loss to, the holder of the permit, certified filing, orcertificate of adjudication from which water is to be transferred.

(k) If transferring the amount of water requested by the applicant wouldcause unreasonable property damage or unreasonable economic loss, theexecutive director or the commission shall allocate the requested amount amongtwo or more permits, certified filings, or certificates of adjudication for otherthan domestic or municipal use.


Amendment No. 3

Representative McReynolds offered the following amendment toAmendment No. 2:

Amend Floor Amendment No. 2 (by McReynolds) to CSSB 1 by strikingthe text of the amendment and substituting the following:

In SECTION 3.03 of the bill, amended Section 11.139, Water Code,between Subsections (h) and (i) (Committee Printing page 49, between lines 17and 18), insert the following subsection and reletter the subsequent subsectionsappropriately:

(i) In transferring the amount of water requested by the applicant, theexecutive director or the commission shall allocate the requested amount amongtwo or more permits, certified filings, or certificates of adjudication for otherthan domestic or municipal use.


Amendment No. 2, as amended, was adopted without objection.

Amendment No. 4

Representative Cook offered the following amendment to CSSB 1:

Amend CSSB 1 in SECTION 1.02 of the bill, amended Section 16.053,Water Code, between proposed Subsections (h) and (i) (Committee Printingpage 8, between lines 3 and 4), by inserting:

(8) Notice required by Subdivision (1), (3), or (6) must be:(A) published once in a newspaper of general circulation in

each county located in whole or in part in the regional water planning areabefore the 30th day preceding the date of the public meeting or hearing; and

(B) mailed to:(i) each mayor of a municipality with a population

of 1,000 or more that is located in whole or in part in the regional waterplanning area;

(ii) each county judge of a county located in wholeor in part in the regional water planning area;

(iii) each special or general law district or riverauthority with responsibility to manage or supply water in the regional waterplanning area;

(iv) each retail public utility that:(a) serves any part of the regional water

planning area; or(b) receives water from the regional water

planning area;(v) each holder of record of a permit, certified filing,

or certificate of adjudication for the use of surface water the diversion of whichoccurs in the regional water planning area; and

(vi) each holder of record of a permit issued by agroundwater conservation district for the use of groundwater the withdrawal ofwhich occurs in the regional water planning area.

(9) Notice published or mailed under Subdivision (8) must contain:


(A) the date, time, and location of the public meeting orhearing;

(B) a summary of the proposed action to be taken;(C) the name, telephone number, and address of the person

to whom questions or requests for additional information may be submitted; and(D) information on how the public may submit comments.

Amendment No. 5

Representative Walker offered the following amendment to AmendmentNo. 4:

Amend the Cook amendment to CSSB 1 by deleting the following languageon page 2, lines 5-8, and adjusting punctuation accordingly.

(vi) each holder of record of a permit issued by agroundwater conservation district for the use of groundwater the withdrawal ofwhich occurs in the regional water planning area.



Amendment No. 6


Amend CSSB 1 in SECTION 1.02 of the bill, Section 16.053, Water Code(House committee report, page 8, lines 13-21), by striking added Subsection (j)and substituting new Subsections (j) and (k) to read as follows:

(j) The board may provide financial assistance to political subdivisionsunder Subchapters E and F of this chapter and Subchapters C, D, E, F, and J,Chapter 15, and Subchapters D, I, K, and L, Chapter 17, of this code for watersupply projects only if:

(1) the board determines that the needs to be addressed by the projectwill be addressed in a manner that is consistent with the state water plan; and

(2) beginning September 1, 2001, the board:(A) has approved a regional water plan as provided by

Subsection (i) and any required updates of the plan for the region of the statethat includes the area benefiting from the proposed project; and

(B) determines that the needs to be addressed by the projectwill be addressed in a manner that is consistent with that regional water plan.

(k) The board may waive the requirements of Subsection (j) if the boarddetermines that conditions warrant the waiver.


Amendment No. 7

Representative Puente offered the following amendment to CSSB 1:

Amend CSSB 1 in Section 11.122(b), Water Code, as amended bySECTION 1.03 of the bill, (committee printing, page 13, line 8), by striking"An" and substituting

"Subject to meeting all other applicable requirements of this chapter for theapproval of an application, an".



Amendment No. 8


Amend CSSB 1 in SECTION 1.03 of the bill, in amended Section11.122(b), Water Code (Committee Printing, page 13, line 8), between"amendment" and "shall", by inserting ", except an amendment to a water rightthat increases the amount of water authorized to be diverted or the authorizedrate of diversion,".


Amendment No. 9

Representative King offered the following amendment to CSSB 1:

Amend CSSB 1 as follows:Amend Sec. 1.03 of the bill amending Sec. 11.1271 of the Water Code

(House Committee Substitute for SB 1, page 13, line 17 through page 14, line 7)by striking subsection (a) (b) and (c) and substituting the following:

Sec. 11.1271 ADDITIONAL REQUIREMENTS: WATERCONSERVATION PLANS & INCENTIVES. (a) The commission shall [may]require an applicant seeking to appropriate unappropriated water to formulateand submit [the formulation and submission of] a water conservation plan toadopt [the adoption of] reasonable water conservation measures, as defined bySubdivision (8)(B), Section 11.002, of this code. The commission shall adoptrules establishing criteria for implementing this provision.

(b) When any person entitled to the use of water under a permit, certifiedfiling, or certificate of adjudication reduces his use of the water through waterconservation efforts,

(1) the reduction in use shall be deemed equivalent to a beneficial useof the water,

(2) the conserved water shall not be subject to forfeiture orcancellation under this chapter, and

(3) the person who has engaged in the water conservation shall beentitled to put the water to a new use or to sell, lease, or otherwise transferthe water, pursuant to any relevant provisions of law including Section 11.122of this code.

(c) On or before January 1, 2003, the commission shall report back to thelegislature on the success of voluntary incentives in encouraging waterconservation and shall recommend any additional legislation that thecommission believes will encourage additional conservation.

Amendment No. 9 was withdrawn.

Amendment No. 10


Amend CSSB 1 as follows:In Section 1.03, page 13, line 25, of the bill, delete the word "1,000" and

insert in its place the word "10,000".



Amendment No. 11

Representative R. Lewis offered the following amendment to CSSB 1:

Amend CSSB 1, SECTION 1.07, page 17, line 24, insert a new "(g)" toread as follows and renumber subsequent sections:

"(g) The board may not provide funds under this section for activities forwhich existing information or data is sufficient for the planning effort including:

(1) detailed evaluation of cost of water supply alternatives whererecent information is available to evaluate the cost associated with thealternative;

(2) evaluation of groundwater resources for which current informationis available from the board or other entity sufficient for evaluation of theresource:

(3) determination of water savings resulting from standard conservationpractices for which current information is available from the board;

(4) revision of board demand and population projections;(5) revision of environmental planning criteria for new surface water

supply projects as defined in the state water plan guidelines established inSection 16.051(d); and

(6) collection of data describing groundwater or surface waterresources where information for evaluation of the resource is currentlyavailable."


Amendment No. 12

Representative Kubiak offered the following amendment to CSSB 1:

Amend CSSB 1 by adding a new SECTION to Article 1 of the bill,appropriately numbered, to read as follows:

SECTION ____. The Texas Water Development Board shall conduct astudy of flooding and erosion problems caused by increased streamflow increeks feeding into the San Gabriel River at points below a federally fundedflood control facility constructed within the last 10 years that occur as a resultof flood control activities of the facility. The board shall make recommendationson correcting the problems or minimizing the damage caused by the problemsand shall submit those recommendations to the appropriate regional planninggroup designated under Section 16.053, Water Code, as amended by this Act,for consideration and inclusion in the area's regional water plan.


Amendment No. 13


Amend CSSB 1 as follows:(1) On page 20, line 13, strike "The commission may authorize

appropriation of".(2) On page 20, strike lines 14-18.

Representative R. Lewis moved to table Amendment No. 13.

The motion to table prevailed.


Amendment No. 14


Amend CSSB 1 as follows:Add Sec. 2.18 of the bill amending Section 11.028 of the Water Code

(House Committee Substitute for SB 1, page 20, line 18) deleting current Sec.11.028 and substituting the following:

Sec. 11.028 FAIR MARKET VALUE. Whenever the law requires thepayment of fair market value for a water right, fair market value shall bedetermined by the amount of money that a willing buyer would pay a willingseller for the water in an arms-length transaction and shall not be limited tothe amount of money that the owner of the water right has paid or is payingfor the water.

(Stiles in the chair)

Amendment No. 15

Representative King offered the following amendment to AmendmentNo. 14:

Amend Floor Amendment No. 14 (by King) to CSSB 1 by striking the textof the amendment and substituting the following:

Amend CSSB 1 in Article 2 of the bill by inserting the followingappropriately numbered SECTION of the bill by inserting the followingappropriately numbered SECTION of the bill and renumbering the subsequentSECTIONS of the bill appropriately:

SECTION ____. Subchapter B, Chapter 11, Water Code, is amended byadding Section 11.0275 to read as follows:

Sec. 11.0275. FAIR MARKET VALUE. Whenever the law requires thepayment of fair market value for a water right, fair market value shall bedetermined by the amount of money that a willing buyer would pay a willingseller for the water in an arms-length transaction and shall not be limited tothe amount of money that the owner of the water right has paid or is payingfor the water.

Amendment No. 16

Representative Dunnam offered the following substitute amendment forAmendment No. 15:

Substitute the following for the King amendment to the King amendmentto CSSB 1:

Amend Floor Amendment No. 14 (by King) to CSSB 1 by striking the textof the amendment and substituting the following:

Amend CSSB 1 in Article 2 of the bill by inserting the followingappropriately numbered SECTION of the bill and renumbering the subsequentSECTIONS of the bill appropriately:

SECTION ____. Subchapter B, Chapter 11, Water Code, is amended byadding Section 11.0275 to read as follows:

Sec. 11.0275. FAIR MARKET VALUE. Whenever the law requires thepayment of fair market value for a water right, fair market value shall be


determined by the amount of money that a willing buyer would pay a willingseller, neither of which is under any compulsion to buy or sell, for the waterin an arms-length transaction and shall not be limited to the amount of moneythat the owner of the water right has paid or is paying for the water.


Amendment No. 15, as substituted, was adopted without objection.


Amendment No. 17


Amend CSSB 1 as follows:In Section 2.05, page 22, line 15, of the bill, delete the word "may" and

insert in its place the word "must".

Amendment No. 17 was adopted.

Amendment No. 18

Representative Madden offered the following amendment to CSSB 1:

Amend CSSB 1 as follows:Strike SECTION 2.07.



Conference committee on HB 4 and HJR 4, 5 p.m. today, appropriationscommittee room.

CSSB 1 - (consideration continued)



MESSAGES FROM THE SENATE

Messages from the senate were received at this time (see the addendum tothe daily journal, Messages from the Senate, Message Nos. 4 and 5).


Amendment No. 19


Amend CSSB 1 as follows:(1) In SECTION 2.07 of the bill, between amended Sections 11.085(a) and

(b), Water Code (committee printing, page 25, between lines 2 and 3), insert:(b) The application must include:

(1) the contract price of the water to be transferred;(2) a statement of each general category of proposed use of the water

to be transferred and a detailed description of the proposed uses and users undereach category;


(3) the cost of diverting, conveying, distributing, and supplying thewater to, and treating the water for, the proposed users; and

(4) the projected effect on user rates and fees for each class ofratepayers.

(c) The applicant shall provide the information described by Subsection (b)to any person on request and without cost.

(2) In SECTION 2.07 of the bill, between added Sections 11.085(e) and(f), Water Code (committee printing, page 26, between lines 10 and 11), insert:

(h) The notice of application must state how a person may obtain theinformation described by Subsection (b).

(3) In SECTION 2.07 of the bill, at the end of added Section 11.085(h)(3),Water Code (committee printing, page 28, line 13), strike "and".

(4) In SECTION 2.07 of the bill, in added Section 11.085(h)(4), WaterCode, between "sought" and the period (committee printing, page 28, line 17),insert:

"; and(5) the information required to be submitted by the applicant".

(5) Reletter the subsections and cross-references to those subsections ofamended Section 11.085, Water Code, appropriately.


Amendment No. 19 was adopted by (Record 491): 80 Yeas, 63 Nays, 1Present, not voting.

Yeas — Alexander; Allen; Averitt; Berlanga; Bonnen; Brimer; Burnam;Carter; Chisum; Christian; Clark; Cook; Counts; Craddick; Culberson; Davis;Delisi; Driver; Dukes; Dunnam; Eiland; Finnell; Flores; Gallego; Glaze;Goodman; Greenberg; Hamric; Hightower; Hinojosa; Holzheauser; Howard;Hunter; Hupp; Isett; Jones, D.; Junell; Kamel; Keel; Keffer; Krusee; Kuempel;Lewis, G.; Lewis, R.; Luna; Maxey; McReynolds; Merritt; Moffat; Mowery;Naishtat; Oakley; Olivo; Palmer; Patterson; Pitts; Place; Price; Rabuck; Ramsay;Raymond; Rhodes; Serna; Siebert; Smith; Solomons; Staples; Stiles(C);Swinford; Telford; Tillery; Turner, B.; Uher; Walker; West; Williamson;Wilson; Wise; Wohlgemuth; Zbranek.

Nays — Alvarado; Bailey; Bosse; Chavez; Coleman; Corte; Crabb; Cuellar;Danburg; Davila; Denny; Dutton; Edwards; Ehrhardt; Elkins; Farrar; Galloway;Garcia; Goolsby; Gray; Grusendorf; Gutierrez; Haggerty; Hartnett; Hawley;Heflin; Hernandez; Hilbert; Hilderbran; Hill; Hirschi; Hochberg; Hodge; Horn;Jackson; Janek; Jones, J.; King; Kubiak; Longoria; Madden; McCall;McClendon; Moreno; Nixon; Pickett; Puente; Rangel; Reyna, A.; Reyna, E.;Roman; Sadler; Seaman; Shields; Solis; Talton; Thompson; Torres; Turner, S.;Van de Putte; Williams; Woolley; Yarbrough.

Present, not voting — Mr. Speaker.


Absent — Giddings; Marchant; Oliveira; Wolens.

Amendment No. 20



Amend CSSB 1 as follows:(1) In SECTION 2.07 of the bill, at the end of proposed Section

11.085(d)(3), Water Code (Committee Printing page 25, line 26), strike "and".(2) In SECTION 2.07 of the bill, proposed Section 11.085(d)(4), Water

Code, between "basin" and the period (Committee Printing page 26, line 1),insert:

"; and(5) each member of the legislature whose district is located in whole

or in part in the basin of origin or the receiving basin".

Amendment No. 21

Representative Puente offered the following amendment to AmendmentNo. 20:

Amend the Puente No. 20 amendment to CSSB 1 by adding the followingto the text of the amendment:

"(3) In Section 2.07 of the bill delete Subdivision (3) of Section 11.085(k),Water Code (page 29, lines 11-12, house committee report), and adjustpunctuation accordingly."



Amendment No. 22

Representative Junell offered the following amendment to CSSB 1:

Amend CSSB 1, Section 2.07, page 27, line 26, between "existing" and"instream" insert "water rights".

Amendment No. 23

Representative Junell offered the following amendment to AmendmentNo. 22:

Amend Floor Amendment No. 22 (by Junell) to CSSB 1 as follows:(1) On line 1 of the amendment, strike "26" and substitute "25".(2) On line 2 of the amendment, strike "water rights" and substitute "water

rights,".



Amendment No. 24


Amend CSSB 1 as follows:(1) In SECTION 2.07 of the bill, added Subsection (h), Section 11.085,

Water Code, strike Subdivision (3) (House committee report, page 28, lines 9through 13) and substitute new Subdivision (3) to read as follows:

(3) proposed mitigation or compensation, if any, to the basin of originby the applicant; and

(2) In SECTION 4.07 of the bill, Section 15.001(6), Water Code (Housecommittee report, page 62, line 22), strike "or "facility"".


(3) In SECTION 4.07 of the bill, Section 15.001(6)(A), Water Code (Housecommittee report, page 62, lines 23 through 25), strike ", including planningactivities and work to obtain regulatory authority at the local, state, and federallevel,".

(4) In SECTION 4.07 of the bill, Section 15.001(6)(A), Water Code (Housecommittee report, page 63, lines 3 and 4), strike "to provide for the acquisitionof water rights and the repair of unsafe dams,".

(5) In SECTION 5.04 of the bill, amended Paragraph (B), Section17.001(7), Water Code (House committee report, page 122, line 20),immediately after the semicolon, insert "or".

(6) In SECTION 5.04 of the bill, added Paragraphs (C) and (D), Section17.001(7), Water Code (House committee report, beginning on page 122, line24, through page 123, line 2), strike everything between "benefit of Texas" andthe period.

(7) Strike SECTIONS 5.13 through 5.16 of the bill (House committeereport, beginning on page 129, line 26, through page 137, line 8) andSECTIONS 5.18 through 5.43 of the bill (House committee report, beginningon page 137, line 23, through page 164, line 1) and renumber SECTION 5.17of the bill appropriately.

(8) Add a new article to the bill, appropriately numbered, to read asfollows and renumber subsequent articles accordingly:

ARTICLE ___. INTERIM COMMITTEE ON WATER RESOURCESDEVELOPMENT AND MANAGEMENT

SECTION ____. CREATION AND COMPOSITION. (a) The InterimCommittee on Water Resources Development and Management is created tostudy the state's water supply and wastewater infrastructure needs.

(b) The committee consists of 10 members, of whom:(1) five shall be appointed by the speaker of the house of

representatives from the members of the house of representatives; and(2) five shall be appointed by the lieutenant governor from the

members of the senate.(c) The lieutenant governor and the speaker of the house of representatives

each shall appoint a presiding officer from among the members appointed tothe committee.

(d) The committee shall convene at the call of the two presiding officers.SECTION ____. DUTIES AND POWERS. (a) The committee is

specifically charged to review:(1) Texas' current inventory of water resources, including water supply

and wastewater treatment infrastructure;(2) projections for Texas' future water and wastewater needs to the

year 2050;(3) the role of the state and regional and local entities in participation

and investment in water-related projects; and(4) the implementation of Senate Bill No. 1, Acts of the 75th

Legislature, Regular Session, 1997.(b) In addition, the committee shall develop recommendations to:

(1) assist Texas communities having limited financial capabilities withtheir water supply and wastewater infrastructure needs;


(2) ensure efficient allocation of state and local resources through theuse of regional water facilities and management, including water markettransactions; and

(3) help local governments to meet the financial costs created byfederal and state water quality regulations.

(c) The committee may travel around the state and hold hearings or publicmeetings as needed to fulfill its duties under this article.

SECTION ____. EXPENSES. The committee shall submit a proposedbudget to the appropriate committee on administration in each house. Theadministrative committees shall jointly approve the committee budget in anamount appropriate for the committee to accomplish its duties under this article.

SECTION ____. REPORT. Not later than January 5, 1999, the committeeshall report to the governor, the lieutenant governor, the speaker of the houseof representatives, and members of the 76th Legislature the committee's findingsand recommendations for necessary legislation.


Amendment No. 25


Amend CSSB 1, in SECTION 2.07 of the bill, by striking the proposedSection 11.085(i), Water Code (Committee Printing page 28, lines 18-27) andsubstituting the following:

(i) The commission may grant, in whole or in part, an application for aninterbasin transfer only to the extent that the detriments to the basin of originduring the proposed transfer period are less than the benefits to the receivingbasin during the proposed transfer period.

LEAVES OF ABSENCE GRANTED

The following members were granted leaves of absence temporarily fortoday to attend a meeting of the conference committee on HB 4 and HJR 4:

Sadler on motion of Keel.

Craddick on motion of Keel.

Hochberg on motion of Keel.

Brimer on motion of Keel.




Amendment No. 26


Amend CSSB 1 in SECTION 2.07 of the bill as follows:(1) In proposed Section 11.085(h)(3), Water Code (house committee report,

page 28, lines 9-11), strike the language between "(3)" and "any".


(2) In proposed Section 11.085(i), Water Code (house committee report,page 28, lines 19 and 20), strike the colon and "(1)".

(3) In proposed Section 11.085(i), Water Code (house committee report,page 28, lines 22-27), at the end of Subdivision (1), strike "; and" and strikeSubdivision (2) and substitute an underlined period.

Amendment No. 27


Amend Floor Amendment No. 26 (by Puente) to CSSB 1 by striking lines5-11 of the amendment.



Amendment No. 28


Amend CSSB 1 in SECTION 2.07 of the bill, in added Section 11.085(k),Water Code (committee printing, page 29, line 5), by striking "This sectiondoes" and substituting "The provisions of this section, except Subsection (a),do".


Amendment No. 29


Amend CSSB 1 as follows:(1) At the end of Section 11.085(k)(1), Water Code, as proposed by

SECTION 2.07 of the bill (Committee Printing, page 29, line 9), strike "or".(2) In Section 11.085(k)(2), Water Code, as proposed by SECTION 2.07

of the bill (Committee Printing, page 29, line 10), strike "or".(3) In Section 11.085(k)(3), Water Code, as proposed by SECTION 2.07

of the bill, between "basin" and the period (Committee Printing, page 29, line12), insert the following:

"; or(4) a proposed transfer from a basin to a county or municipality that

is partially within the basin for use in that part of the county or municipalitynot within the basin".


Amendment No. 30


Amend CSSB 1 as follows:(1) In SECTION 2.07 of the bill, amended Section 11.085, Water Code,

between Subsections (k) and (l) (Committee Printing page 29, between lines 12and 13), insert:

(l) Except as provided by Subsection (k), the commission may not issuea final order granting a new water right or amended permit, certified filing, orcertificate of adjudication authorizing an interbasin transfer until the legislature


authorizes the transfer. Not later than January 15 of each odd-numbered year,the commission shall submit a report to the lieutenant governor and the speakerof the house of representatives containing:

(1) a summary of each application for an interbasin transfer;(2) a summary of the public comments received on the proposed

transfer;(3) the related proposal for decision if a contested, evidentiary hearing

was held; and(4) the commission's recommendation on the application.

(2) Reletter the subsequent subsections of amended Section 11.085, WaterCode, appropriately.


Amendment No. 31


Amend CSSB 1 as follows:(1) In SECTION 2.07 of the bill, amended Section 11.085(o), Water Code

(Committee Printing page 30, line 3), strike "$10,000" and substitute "$1,000".(2) Strike SECTION 3.01 of the bill (Committee Printing page 39, lines

12-18) and renumber the subsequent sections of Article 3 of the billappropriately.

(3) In SECTION 3.02 of the bill, proposed Section 11.0842(b), Water Code(Committee Printing page 40, line 26), strike "$10,000" and substitute "$1,000".

(4) In SECTION 3.04 of the bill, amended Section 12.052(c), Water Code(Committee Printing page 51, line 2), strike "$10,000 [$1,000]" and substitute"$1,000".

(5) In SECTION 3.05 of the bill, amended Section 16.236(c), Water Code(Committee Printing page 52, line 1), strike "$10,000" and substitute "$1,000".

(6) In SECTION 3.05 of the bill, amended Section 16.236(g), Water Code(Committee Printing page 53, line 4), strike "$4,000" and substitute "$1,000".

(7) In SECTION 6.22 of the bill, amended Section 341.048(b), Health andSafety Code (Committee Printing page 194, line 9), strike "$10,000" andsubstitute "$1,000".

(8) In SECTION 6.23 of the bill, amended Section 341.049(a), Health andSafety Code (Committee Printing page 196, line 4), strike "$10,000" andsubstitute "$1,000".


Amendment No. 32


Amend CSSB 1 in SECTION 2.07 of the bill, Section 11.085, Water Code,by striking proposed Subsection (q) (House committee report, page 30, lines8-11) and substituting the following:

(q) Any proposed transfer of all or a portion of a water right under thissection, from a river basin in which two or more river authorities or waterdistricts created under Article XVI, Section 59 of the Texas Constitution, have


written agreements or permits that provide for the coordinated operation of theirrespective reservoirs to maximize the amount of water for beneficial use withintheir respective water services areas, shall be junior in priority to water rightsgranted before the time application for transfer is accepted for filing.

Amendment No. 32 was adopted. (The vote was reconsidered later today,and Amendment No. 32, as amended by Amendment No. 74, was adopted.)


Representative Chisum requested permission for the Committee onEnvironmental Regulation to meet while the house is in session.




Environmental Regulation, 6:10 p.m. today, speakers committee room.

(Speaker in chair)

Amendment No. 33

Representative Culberson offered the following amendment to CSSB 1:

Amend CSSB 1 by adding the following appropriately numberedSECTIONS and renumbering the remaining sections of the bill accordingly:

SECTION ____. Subchapter C, Chapter 16, Water Code, is amended byadding Section 16.059 to read as follows:

Sec. 16.059. CHANGES IN ORDERLY DEVELOPMENT,MANAGEMENT, OR CONSERVATION OF CERTAIN WATERRESOURCES. (a) The purpose of this section is to allow water districts toprovide for the orderly development, management, and conservation of waterresources, to ensure that sufficient water will be available at a reasonable costto ensure public health, safety, and welfare, and to protect the agricultural andnatural resources of this state.

(b) A district may adopt a comprehensive water plan for the provision ofwater in the district. The plan may outline the district management plan,including any plans for the orderly development, management, and conservationof water resources. The district may submit the plan to a regional waterplanning group under Section 16.053 or the board under Section 16.051.

(c) If a political subdivision seeks to take an action that has an impact onthe district's comprehensive water plan, the political subdivision shall, not laterthan the 100th day before the date of the action that has an impact on thedistrict's comprehensive water plan, inform the governing body of the district,in writing, of the political subdivision's intention.

(d) The governing body of the district, on receipt of the notice, shallconduct an election on the issue of whether the action that has an impact onthe district's comprehensive water plan may be imposed in the district. Theelection must be conducted, in accordance with Chapter 41, Election Code, notlater than the 10th day before the date of the institution of the proceedingdescribed by the written notice in Subsection (c).


(e) The ballot proposition for an election under this section must be printedto permit voting for or against the imposition of the action by the politicalsubdivision in the specified part of the district. All voters in the district mayvote on the proposition.

(f) If a majority of voters voting at the election approve the proposition,the action described by the written notice in Subsection (c) may be institutedat any time before the second anniversary after the date of the election. If amajority of voters voting at the election disapprove the proposition, the politicalsubdivision may not institute the action in the district and may not propose anaction that has an impact on the district's comprehensive water plan until thesecond anniversary after the date of the election.

(g) In this section:(1) The term "political subdivision" does not include a county, county

development district, junior college district, school district, hospital district,nonprofit water supply corporation, municipal management district, emergencyservice district, rural fire prevention district, or district or authority that exercisesthe powers granted by Section 52, Article III, or Section 59, Article XVI, TexasConstitution.

(2) "An action that has an impact on the district's comprehensive waterplan" means the institution of a proceeding having the purpose or the effect ofimposing a tax or fee, including a fee charged for the provision of water, ona person, property, or transaction in any part of a district.

(3) "District" means a district established or operated under Title 4.(h) This section applies only to a political subdivision that is, or is located

in any part in, a municipality with a population of 1.6 million or more or thatis located in any part in the extraterritorial jurisdiction of the municipality.

SECTION ____. (a) Section 16.059, Water Code, as added by this Act,applies to an action that has an impact on the district's comprehensive waterplan that is imposed by a political subdivision on or after the effective date ofthis Act. An action that has an impact on the district's comprehensive water planthat is imposed by a political subdivision before the effective date of this Actis governed by the law as it existed immediately before date of this Act, andthat law is continued in effect for that purpose.

(b) Section 16.059, Water Code, as added by this Act, applies only to anew action that has an impact on the district's comprehensive water plan butdoes not apply to:

(1) a tax or fee imposed in a district affected by Section 16.059, WaterCode, as added by this Act, by a political subdivision that levied taxes on theproperty in the district before the effective date of that section;

(2) a tax or fee imposed in a district by a political subdivision thatwas, at an election held within the district affected by Section 16.059, WaterCode, as added by this Act, authorized to levy taxes on property in the district;

(3) any change in the amount of an existing tax or fee imposed by apolitical subdivision in a district affected by Section 16.059, Water Code, asadded by this Act, including utility rates imposed by a political subdivision;

(4) a fee, including utility rates, imposed in a district affected bySection 16.059, Water Code, as added by this Act, by a political subdivisionunder a contract between the political subdivision and the district; or

(5) a fee authorized to be charged by a statute or by an enabling actof a political subdivision.


(c) A tax or fee imposed by a political subdivision before the effective dateof this Act and after May 1, 1997 may not be collected after the effective dateof this Act unless the political Subdivision complies with the provisions ofSection 16.059, Water Code, as amended by this Act.

Representatives Torres and Danburg raised a point of order against furtherconsideration of Amendment No. 33 under Rule 11, Section 2 of the HouseRules and Article III, Section 30, of the Texas Constitution on the grounds thatthe amendment is not germane to and changes the original purpose of the bill.

(Bosse in the chair)

The chair sustained the point of order, speaking as follows.

Representatives Danburg and Torres raised a point of order against furtherconsideration of the Culberson amendment under Rule 11, Section 2 of theHouse Rules, and Article III, Section 30, of the Texas Constitution, in that theamendment is not germane.

The amendment states as its purpose allowing water districts to provide forthe orderly development, management, and conservation of water resources, andto that end requires voter approval of actions by a political subdivision that mayimpact a water district's comprehensive water plan. The amendment defines suchan action to mean, "the institution of a proceeding having the purpose of oreffect of imposing a tax or fee." In other words, the amendment prohibitsannexation or other actions instituting a tax or fee without regard to whetheror not there is a genuine effect on the district's water plan.

Although well-cloaked as a water matter, the subject of the amendment isannexation by municipalities. Accordingly, the point of order is well-taken andsustained.

The ruling precluded further consideration of the amendment.

Amendment No. 34

Representative Rhodes offered the following amendment to CSSB 1:

Amend CSSB 1 in SECTION 2.17 of the bill (committee printing, page 39,lines 4-7) by striking Subsection (b) and substituting:

(b) This Act does not affect an application for an interbasin transfer, orfor a project to reuse the return flow derived from privately owned groundwater,filed and pending before March 2, 1997. A renewal after that date of anapplication described by this subsection is subject to this Act.


Amendment No. 35


Amend CSSB 1 as follows:(1) Strike Section 11.0842(a), Water Code, as added by SECTION 3.02 of

the bill (Committee Printing page 40, lines 8-25), and substitute the following:(a) If a person violates this chapter, a rule or order adopted under this

chapter or Section 16.236 of this code, or a permit, certified filing, or certificateof adjudication issued under this chapter, the commission may assess an


administrative penalty against that person as provided by this section.(2) In ARTICLE 8 of the bill, insert the following appropriately numbered

SECTION and renumber the SECTIONS of the bill accordingly:SECTION ____. Section 11.0842, Water Code, as added by this Act, and

the changes to Sections 11.082 and 12.052, Water Code, made by this Act arenot applicable to any violation relating to the construction of a dam or reservoirfor domestic and livestock purposes initiated before March 2, 1997, if aregistration for authorization is submitted to the commission not later thanSeptember 1, 1999, unless modifications other than repairs are made to the damor reservoir on or after March 2, 1997. On registration of the location,approximate size, and date of completion of the dam or reservoir, thecommission shall issue a permit for the dam or reservoir relating back to thedate of completion of construction. The date of completion of construction maybe established by the submission of competent evidence.


Amendment No. 36

Representative Walker offered the following amendment to CSSB 1:

Amend CSSB 1 as follows:(1) In SECTION 4.01 of the bill (House committee report, page 56) strike

lines 10 and 11 and substitute the following:"SECTION 4.01. Section 11.134, Water Code, is amended by amending

Subsection (b) and adding Subsection (c) to read as follows:".(2) In SECTION 4.01 of the bill, following Section 11.134(b), Water Code

(House committee report, page 57, between lines 8 and 9), add a newSubsection (c) to read as follows:

(c) Beginning September 1, 2001, the commission may not issue a waterright for municipal purposes in a region that does not have an approved regionalwater plan in accordance with Section 16.053(i) of this code unless thecommission determines that conditions warrant waiver of this requirement.


Amendment No. 37


Amend CSSB 1 by adding the following appropriately numbered sectionsand renumbering the subsequent sections appropriately:

SECTION __. Section 26.121(a), Water Code (effective until delegationof NPDES permit authority), is amended to read as follows:

(a) Except as authorized by a rule, permit, or order issued by thecommission, no person may:

(1) discharge sewage, municipal waste, recreational waste, agriculturalwaste, or industrial waste into or adjacent to any water in the state;

(2) discharge other waste into or adjacent to any water in the statewhich in itself or in conjunction with any other discharge or activity causes,continues to cause, or will cause pollution of any of the water in the state,unless the discharge complies with the person's:

(A) certified water quality management plan approved by theState Soil and Water Conservation Board as provided by Section 201.026,Agriculture Code; or


(B) water pollution and abatement plan approved by thecommission; or

(3) commit any other act or engage in any other activity which in itselfor in conjunction with any other discharge or activity causes, continues to cause,or will cause pollution of any of the water in the state, unless the activity isunder the jurisdiction of the Parks and Wildlife Department, the General LandOffice, or the Railroad Commission of Texas, in which case this subdivisiondoes not apply.

SECTION __. Section 26.121(a), Water Code (effective upon delegationof NPDES permit authority), is amended to read as follows:

(a) Except as authorized by the commission, no person may:(1) discharge sewage, municipal waste, recreational waste, agricultural

waste, or industrial waste into or adjacent to any water in the state;(2) discharge other waste into or adjacent to any water in the state

which in itself or in conjunction with any other discharge or activity causes,continues to cause, or will cause pollution of any of the water in the state,unless the discharge complies with a person's:

(A) certified water quality management plan approved by theState Soil and Water Conservation Board as provided by Section 201.026,Agriculture Code; or

(B) water pollution and abatement plan approved by thecommission; or

(3) commit any other act or engage in any other activity which in itselfor in conjunction with any other discharge or activity causes, continues to cause,or will cause pollution of any of the water in the state, unless the activity isunder the jurisdiction of the Parks and Wildlife Department, the General LandOffice, or the Railroad Commission of Texas, in which case this subdivisiondoes not apply.


Amendment No. 38

Representative Wilson offered the following amendment to CSSB 1:

Amend CSSB 1 by adding the following section and renumber thesubsequent sections accordingly:

SECTION ____. Subchapter J, Chapter 26, Water Code, is amended byadding Section 26.408 to read as follows:

Sec. 26.408. SOLE SOURCE AQUIFER PROTECTION. (a) The adoptionor issuance of a rule, regulation, policy, guideline, or other measure by thecommission which is intended to prevent the pollution of an aquifer designatedas a "sole source" aquifer under the federal Safe Drinking Water Act (42 U.S.C.Section 300h-3(e)) shall impose identical requirements or restrictions for all ofthe territory within the recharge area and for all of the territory within thecontributing zone of the aquifer.

(b) The adoption or issuance of an ordinance, rule, regulatory requirement,resolution, policy, guideline, or other measure by a municipality located entirelyor partially within the boundary area of an aquifer designated as a "sole source"aquifer under the federal Safe Drinking Water Act (42 U.S.C. Section 300h-3(e)) which (i) is intended to prevent pollution of an aquifer and (ii) has effectin the municipality's extraterritorial jurisdiction, shall impose identical


requirements or restrictions for all of the territory within the recharge area andcontributing zone of an aquifer located within the municipality's corporate limitsand extraterritorial jurisdiction.

Amendment No. 39


Amend the Wilson floor amendment to CSSB 1 by adding the followingprovisions:

(c) This section does not apply to the part of a sole-source aquifer whichis within the jurisdictional boundaries of the Edwards Aquifer Authority.



Amendment No. 40


Amend CSSB 1, Section 4.11 page 65, lines 9 and 10, by deleting "andthe executive administrator shall meet at least once a year to identify" andinserting "shall at least once a year identify"


Amendment No. 41


Amend CSSB 1 as follows:(1) In SECTION 4.11 of the bill, in Section 35.007(c), Water Code (House

committee report, page 65, line 23), between "(c)" and "The" insert:Before the executive director requests a study from the executive administratorunder Subsection (d), the executive director shall provide notice to the personslisted in Section 35.009(c) of areas being considered for identification asexperiencing or expected to experience critical groundwater problems and shallconsider any information or studies submitted under this subsection. Not laterthan the 45th day after the date of the notice, a person required to receive noticeunder this subsection may submit to the executive director information orstudies that address the potential effects on an area of being identified asexperiencing or expected to experience critical groundwater problems.

(d)(2) In SECTION 4.11 of the bill, in Section 35.007(d), Water Code (House

committee report, page 66, line 10), strike "(d)" and substitute "(e) [(d)]".(3) In SECTION 4.11 of the bill, in proposed Section 35.007(e), Water

Code (House committee report, page 66, line 22), strike "(e)" and substitute"(f)"; at the end of Subdivision (4) (House committee report, page 67, line 8),strike "and"; and insert new Subdivision (5) (House committee report, page 67,between lines 8 and 9) to read as follows and renumber existing Subdivision(5) as Subdivision (6):

(5) an evaluation of information or studies submitted to the executivedirector under Subsection (c); and

(4) In Section 4.11 of the bill, in Section 35.007, Water Code (House


committee report, page 67, lines 11 and 20), redesignate Subsections (f) and(g) as Subsections (g) and (h), respectively.

(5) In SECTION 4.13 of the bill, proposed Section 35.009(c), Water Code(House committee report, page 71, line 5), between "public drinking water," and"and", insert "including holders of certificates of convenience and necessityissued by the commission,".


Amendment No. 42

Representative Counts offered the following amendment to CSSB 1:

Amend CSSB 1 as follows:In Section 4.13, page 69, line 13, of the bill, delete the words "designated

a proposed" and insert in its place the words "proposed for designation as a".


Amendment No. 43


Amend CSSB 1 as follows:In Section 4.19, page 78, lines 16-17, of the bill, delete proposed section

35.018(b)(5) and replace it with the following:"(5) a report on performance reviews of districts under Section 36.303 and

remedial actions taken under Section 36.304;".


Amendment No. 44

On behalf of Representative B. Turner, Representative Counts offered thefollowing amendment to CSSB 1:

Amend CSSB 1 as follows:(1) In the recital to SECTION 4.19 of the bill (Committee Printing page

77, line 17), strike "Section 35.018" and substitute "Sections 35.018 and35.019".

(2) At the end of SECTION 4.19 of the bill (Committee Printing page 79,between lines 25 and 26), insert:

Sec. 35.019. WATER AVAILABILITY. (a) The commissioners court ofa county in a priority groundwater management area may adopt wateravailability requirements if the court determines that the requirements arenecessary to prevent current or projected water use in the county fromexceeding the safe sustainable yield of the county's water supply.

(b) The commissioners court of a county in a priority groundwatermanagement area may:

(1) require a person seeking approval of a plat required by SubchapterA, Chapter 232, Local Government Code, to show:

(A) compliance with the water availability requirementsadopted by the court under this section; and

(B) that an adequate supply of water of sufficient quantityand quality is available to supply the number of lots proposed for the plattedarea;


(2) adopt standards or formulas to determine if an adequate watersupply exists for the platted area; and

(3) adopt procedures for submitting the information necessary todetermine whether an adequate water supply exists for the platted area.

(c) The water availability requirements established by a commissionerscourt under this section may require that:

(1) a person seeking approval of a plat or attempting to sell a lot ina subdivision:

(A) notify a purchaser of a lot in the subdivision if anapproved water supply for the subdivision does not exist; or

(B) if the person attempts to build a water supply system toserve one or more lots within the subdivision:

(i) comply with federal, state, and local law; and(ii) establish an entity to construct and operate the

system; or(2) a planned or operating water supply system serving one or more

lots within a subdivision be built and operated in compliance with federal, state,and local laws and rules related to public drinking water.


Representative Counts moved to reconsider the vote by which AmendmentNo. 44 was adopted.

The motion to reconsider prevailed.

Amendment No. 45

Representative B. Turner offered the following amendment to AmendmentNo. 44:

Amend Floor Amendment No. 44 (by Turner of Coleman) to CSSB 1 inproposed Section 35.019(a), Water Code, page 1, line 9 of the amendment,between "requirements" and "if" insert "in an area where platting is required".



Amendment No. 46


Amend CSSB 1 as follows:(1) In SECTION 4.20 of the bill (Committee Printing page 79, line 26,

through page 80, line 1), strike the recital and substitute:SECTION 4.20. Section 36.001(14), Water Code, is amended to read as

follows:(2) In SECTION 4.20 of the bill, amended Section 36.001, Water Code

(Committee Printing page 80, lines 6-9), strike proposed Subdivisions (16) and(17).

(3) In SECTION 4.33 of the bill, proposed Section 36.161(a), Water Code(Committee Printing page 96, line 7), strike "36.160, Chapters 15, 16, and 17,


and Subchapter L of this chapter" and substitute "36.160 and Chapters 15, 16,and 17".


Amendment No. 47


Amend CSSB 1 as follows:In Section 4.25, page 81, line 27, of the bill, delete the word "36.303" and

replace it with the word "36.304".


Amendment No. 48

Representative Yarbrough offered the following amendment to CSSB 1:

Amend CSSB 1 as follows:On page 85, line 13, after "issues", strike "." and add "; and (6) addressing

water reuse issues; including greywater systems."

Representative Walker moved to table Amendment No. 48.


Amendment No. 49


Amend CSSB 1, SECTION 4.33 as follows:On page 95, line 6, delete "research and planning created under

Subchapter F, Chapter 15, "and insert "Water Assistance Fund"On page 95, line 9, delete ", and to participate in regional plans"

Amendment No. 50

Representative R. Lewis offered the following amendment to AmendmentNo. 49:

Amend Floor Amendment No. 49 (by Lewis of Orange) to CSSB 1 bystriking the text of the amendment and substituting the following:

Amend CSSB 1 in SECTION 4.33 of the bill, proposed Section 36.159,Water Code (committee printing, page 95, line 6), by striking "research andplanning fund created under Subchapter F, Chapter 15," and substituting "waterassistance fund".



Amendment No. 51


Amend CSSB 1 in SECTION 4.35 of the bill, proposed Section 36.304(a),Water Code (Committee Printing page 99, lines 15-19), by striking "After noticeand hearing in accordance with Chapter 2001, Government Code, thecommission may take actions the commission deems appropriate to enforcecompliance with rules or orders of the commission or provisions of this chapter"


and substituting "If Section 36.302 or 36.303(g) applies, the commission, afternotice and hearing in accordance with Chapter 2001, Government Code, shalltake action the commission considers appropriate".

Amendment No. 52

Representative Walker offered the following amendment to AmendmentNo. 51:

Amend Floor Amendment No. 51 (by Walker) to CSSB 1 at the end of theamendment by adding the following appropriately numbered section and byrenumbering the subsequent sections appropriately:

SECTION ____. Subchapter D, Chapter 36, Water Code, is amended byadding Section 36.122 to read as follows:

Sec. 36.122. TRANSFER OF GROUNDWATER OUT OFDISTRICT. (a) A person must obtain a permit from a district to:

(1) increase, on or after March 2, 1997, the amount of groundwaterto be transferred under a continuing arrangement in effect before that date; or

(2) transfer groundwater out of the district on or after March 2, 1997,under a new arrangement.

(b) The district may impose a reasonable fee for processing an applicationfor a permit under this section.

(c) Before issuing a permit under this section, the district must give noticeof the application and hold a public hearing.

(d) In determining whether to issue a permit under this section, the districtshall consider:

(1) the need for the water in the district and in the proposed receivingarea during the period for which the water supply is requested;

(2) the availability of feasible and practicable alternative supplies tothe applicant;

(3) the amount and purposes of use in the proposed receiving area forwhich water is needed;

(4) existing and proposed methods and efforts by the applicant toavoid waste and implement water conservation and drought contingencymeasures;

(5) proposed methods and efforts by the applicant to put the waterproposed for transfer to beneficial use;

(6) the projected economic impact that is expected to occur in thedistrict and the proposed receiving area of the transfer; and

(7) the projected effect of the proposed transfer on existing instreamuses, water quality, and aquatic and riparian habitat.

(e) The district may limit a permit issued under this section if:(1) there is an existing or foreseeable need for the water in the district

during the term of the permit; and(2) adequate alternative water supplies to the water proposed for

transfer are not available in the district.(f) In addition to conditions provided by Section 36.1131, the permit shall

specify:(1) the amount of water that may be transferred out of the district; and


(2) the period for which the water may be transferred.(g) A permit may be issued for a term not longer than 10 years. A permit

may be renewed for a term not longer than 10 years if the conditions of thissection are met.

(h) This section applies only to a transfer of water that is initiated orincreased after the effective date of this section.



(Craddick now present)

Amendment No. 53


Amend CSSB 1 by adding new SECTION to the bill, appropriatelynumbered, to read as follows and renumbering subsequent SECTIONS of thebill accordingly:

SECTION ____. Section 401.002(a) and (c), Local Government Code, isamended to read as follows:

(a) A home-rule municipality may prohibit the pollution or degradation ofand may police a stream, drain, recharge feature, recharge area, or tributary thatmay constitute or recharge the source of water supply of any municipality.

(c) The authority granted by this section may be exercised inside [oroutside] the municipality's boundaries. The authority granted by this section forthe protection of recharge, recharge areas, or recharge features of groundwateraquifers may be exercised outside the municipality's boundaries provided themunicipality exercising such authority has a population greater than 750,000 andwhich groundwater constitutes more than seventy-five percent of themunicipality's source of water supply.

Amendment No. 54


Amend the Puente amendment (page 73 of packet) to CSSB 1 as follows:1. On line 10, after the word "exercised", strike the words "inside [or

outside] the municipality's boundaries" and replacing the same with "inside themunicipality's corporate boundary and its extraterritorial jurisdiction[boundaries]".



Amendment No. 55

Representative Hirschi offered the following amendment to CSSB 1:

Amend CSSB 1 as follows:(1) Insert the following appropriately numbered sections:"SECTION ____. Section 76.102(a), Agriculture Code, is amended to read

as follows:


(a) The department shall license pesticide applicators involved in thefollowing license use categories:

(1) agricultural pest control, including animal pest control;(2) forest pest control;(3) ornamental and turf pest control, except as provided by the Texas

Structural Pest Control Act, as amended (Article 135b-6, Vernon's Texas CivilStatutes);

(4) seed treatments;(5) right-of-way pest control;(6) regulatory pest control;(7) aquatic pest control; [and](8) aquatic pest control in a public body of surface water, except in

a public body of surface water used for an agricultural purpose; and(9) demonstration pest control.

SECTION ____. Section 76.114, Agriculture Code, is amended by addingSubsection (e) to read as follows:

(e) In addition to other records required under this section, a regulatoryagency shall require each commercial applicator and noncommercial applicatorof an aquatic pesticide in a public body of surface water licensed under Section76.102(8) to maintain records regarding:

(1) the location where the applicator used the aquatic pesticide; and(2) the quantity and character of the pesticide.

SECTION ____. Subchapter E, Chapter 76, Agriculture Code, is amendedby adding Section 76.118 to read as follows:

Sec. 76.118. NOTIFICATION REQUIREMENTS FOR AQUATIC PESTCONTROL IN PUBLIC BODY OF SURFACE WATER. A regulatory agencyshall require each commercial applicator and noncommercial applicator of anaquatic pesticide in a public body of surface water licensed under Section76.102(8) to notify owners of property adjacent to the public body of surfacewater of the date of application before the application. The regulatory agencyalso shall require notification by the posting of one or more signs for at least30 days after the date of application. The regulatory agency by rule shallprescribe the form, content, and location of the sign.".

(2) Renumber subsequent sections appropriately.

Amendment No. 56

Representative Hirschi offered the following amendment to AmendmentNo. 55:

Amend the Hirschi amendment to CSSB 1 by striking the text of theamendment and substituting the following:

(1) Insert the following appropriately numbered sections:SECTION ____. Sections 76.001(13)-(23), Agriculture Code, are amended

to read as follows:(13) "Integrated pest management" means the coordinated use of

pesticide and environmental information with pest control methods to preventunacceptable levels of pest damage by the most economical means and to causethe least possible hazard to persons, property, and the environment.

(14) "Label" means the written, printed, or graphic matter on orattached to a pesticide or device or any of its containers or wrappers.


(15) [(14)] "Labeling" means a label or any other written, printed, orgraphic matter prepared by a registrant:

(A) accompanying the pesticide or device at any time; or(B) to which reference is made on a label or in literature

accompanying or referring to a pesticide or device, except accurate,nonmisleading references made to a current official publication of a federal orstate institution or agency authorized by law to conduct research in the fieldof pesticides.

(16) [(15)] "Land" means any land or water area, including airspace,and any plant, animal, structure, building, contrivance, or machinery, whetherfixed or mobile, appurtenant to or situated on a land or water area or airspace,including any used for transportation.

(17) [(16)] "License use category" means a classification of pesticideuse based on the subject, method, or place of pesticide application.

(18) [(17)] "Nematode" means an invertebrate animal of the phylumNemathelminthes and class Nematoda (an unsegmented roundworm with anelongated, fusiform, or sac-like body covered with cuticle) inhabiting soil, water,plants, or plant parts.

(19) [(18)] "Pesticide" means a substance or mixture of substancesintended to prevent, destroy, repel, or mitigate any pest, or any substance ormixture of substances intended for use as a plant regulator, defoliant, ordesiccant.

(20) [(19)] "Plant regulator" means a substance or mixture ofsubstances intended through physiological action to accelerate or retard the rateof growth or rate of maturation, or otherwise to alter the behavior of anornamental or crop plant or the product of an ornamental or crop plant, but doesnot include a substance to the extent that it is intended as a plant nutrient, traceelement, nutritional chemical, plant inoculant, or soil amendment.

(21) "Public body of surface water" means any body of surface waterthat is not used exclusively for an agricultural purpose. The term does notinclude impounded water on private property.

(22) [(20)] "Regulatory agency" means a state agency withresponsibility for certifying applicators under Subchapter E of this chapter.

(23) [(21)] "Restricted-use pesticide" means a pesticide classified as arestricted-use pesticide by the Environmental Protection Agency.

(24) [(22)] "Thallophyte" means a non-chlorophyll-bearing plant of alower order than mosses and liverworts.

(25) [(23)] "Weed" means any plant that grows where not wanted.SECTION ____. Section 74.104, Agriculture Code, is amended by adding

Subsection (d) to read as follows:(d) The department shall adopt rules prohibiting the application of any

pesticide to control aquatic pests in any public body of surface water by aperson who does not have a permit to apply pesticides for the control of aquaticpests from the department and who does not apply the pesticide as providedby Section 76.118.

SECTION ____. Subchapter E, Chapter 76, Agriculture Code, is amendedby adding Section 76.118 to read as follows:

Sec. 76.118. PERMIT AND NOTICE REQUIREMENTS FOR AQUATIC


PESTICIDE USE IN A PUBLIC BODY OF SURFACE WATER. (a) Thedepartment by rule shall adopt procedures providing for the coordination,oversight, and enforcement of all aquatic pesticide use to prevent unreasonablerisk from the use of any aquatic pesticides.

(b) The department by rule shall provide procedures for a person to obtaina permit before application of the pesticide.

(c) The department may request from the Parks and Wildlife Departmentor local river authorities the following information:

(1) the depth, size, volume, flow, or other characteristics of the bodyof water proposed for aquatic pesticide treatment;

(2) plant and animal life in and downstream from a proposed aquaticpesticide treatment area;

(3) practical, nonchemical pest control strategies; and(4) any other information required by the department for the purposes

of this section.(d) The department may not issue a permit to an aquatic pesticide

applicator unless the Texas Natural Resource Conservation Commission hasruled that the proposed application will not contaminate drinking water sources.

(e) The department shall require that the principles of integrated pestmanagement be followed before approving a permit to apply aquatic pesticides.

(f) The department shall require each applicator of an aquatic pesticide ina public body of surface water to notify owners of property adjacent to thepublic body of surface water of the date of application at least five workingdays before the application. The department also shall require notification bythe posting of one or more signs at the time of application and for at least 30days after the date of application. The department by rule shall prescribe theform, content, and location of the sign.

(g) The department by rule may establish and provide for the collectionof a fee to cover costs associated with the review of an application for a permitrequired by this section.

SECTION ____. The Department of Agriculture shall prescribe permitprocedures and rules as required by Sections 74.104(d) and 76.118, AgricultureCode, as added by this Act, not later than December 1, 1997. Those sectionsapply only to a pesticide that is applied to a public body of surface water onor after January 1, 1998.

(2) Renumber the sections of the bill as appropriate.



Representative Walker moved to table Amendment No. 55.


Amendment No. 57

Representative Berlanga offered the following amendment to CSSB 1:

Amend CSSB 1 by adding a new SECTION to bill, appropriatelynumbered, to read as follows:

SECTION ____. Section 5.235, Water Code, is amended by addingSubsection (o) to read as follows:


(o) A fee imposed under Subsection (j) for the use of saline water forindustrial processes may not exceed $1 per acre-foot of water actually consumedin the industrial process.

Amendment No. 58

Representative Berlanga offered the following amendment to AmendmentNo. 57:

Amend Amendment No. 57 to CSSB 1 on page 1, by striking lines 5-7 andsubstituting the following:

(o) A fee imposed under Subsection (j) for the use of saline tidal waterfor industrial processes shall be $1 per acre-foot of water diverted for theindustrial process, but not to exceed a total fee of $5,000.



LEAVE OF ABSENCE GRANTED

The following member was granted leave of absence for the remainder oftoday because of illness:

Driver on motion of Oakley.


Amendment No. 59

On behalf of Representative Oliveira, Representative R. Lewis offered thefollowing amendment to CSSB 1:

Amend CSSB 1 by adding a new SECTION to the bill, appropriatelynumbered, to read as follows:

SECTION ____. Subchapter D, Chapter 5, Water Code, is amended byadding Section 5.1035 to read as follows:

Sec. 5.1035. RULES REGARDING DRINKING-WATER STANDARDS.Before adopting rules regarding statewide drinking-water standards, thecommission shall hold public meetings at its regional offices to allowmunicipalities, water supply corporations, and other interested persons to submitdata or comments concerning the proposed drinking-water standards.

Amendment No. 60

On behalf of Representative Oliveira, Representative R. Lewis offered thefollowing amendment to Amendment No. 59:

Amend Floor Amendment No. 59 (by Oliveira) to CSSB 1 on line 7 ofthe amendment, between "meetings" and "at", by inserting ", if requested,".



Amendment No. 61



Amend CSSB 1 in Article 6 of the bill by adding the followingappropriately numbered section and renumbering the subsequent sectionsappropriately:

SECTION 6.___. Subchapter C, Chapter 13, Water Code, is amended byadding Section 13.045 to read as follows:

Sec. 13.045. NOTIFICATION REGARDING USE OF REVENUE. Atleast annually and before any rate increase, a municipality shall notify in writingeach water and sewer retail customer of any service or capital expenditurefunded in whole or in part by customer revenue.

Amendment No. 62


Amend Amendment No. 61 to CSSB 1 on page 1, line 9, between"expenditure" and "funded" by inserting "not water or sewer related".


Amendment No. 61, as amended, was adopted.

Amendment No. 63

Representatives Hamric and Hilbert offered the following amendment toCSSB 1:

Amend CSSB 1 in Article 6 of the bill by adding a new section,appropriately numbered, to read as follows:

SECTION 6.__. Subchapter D, Chapter 13, Water Code, is amended byadding Section 13.086 to read as follows:

Sec. 13.086. FAIR WHOLESALE RATES FOR WHOLESALE WATERSALES TO A WATER DISTRICT. (a) A municipality that makes awholesale sale of water to a special district created under Section 52, ArticleIII, or Section 59, Article XVI, Texas Constitution, and that operates under Title4, Water Code, or under Chapter 36, Water Code, shall determine the rates forthat sale on the same basis as for other similarly situated wholesale purchasersof the municipality's water.

(b) This section does not apply to a sale of water under a contract executedbefore the effective date of this section.


Amendment No. 64


Amend CSSB 1 in SECTION 6.10, Sec. 13.254(f), Water Code, as follows:(1) Delete the word "selected" and substitute the language "agreed upon"

in the first sentence.(2) Insert the language "and the retail public utility seeking to serve the

area" between the word "utility" and the period in the first sentence.


Amendment No. 65



Amend CSSB 1 by adding the new Section ____ as follows:Amend Subchapter C, Chapter 341, Health and Safety Code by adding a

new Subsection (d) (4) as follows:(d) A person is not required to file a business plan under Subsection (a)

or (b) if the person:(1) is a county;(2) is a retail public utility as defined by Section 13.002, Water Code,

unless that person is a utility as defined by that section;(3) has executed an agreement with a political subdivision to transfer

the ownership and ownership of the water supply system to the politicalsubdivision; or

(4) is a noncommunity non-transient water system and the person hasdemonstrated financial assurance under Chapter 361 or 382 of this Code, orChapter 26 of the Water Code.


Amendment No. 66


Amend CSSB 1 as follows:In Section 7.01, page 204, line 3, of the bill, delete the word "board" and

replace it with the words "executive administrator".

(Williamson in the chair)


Amendment No. 67


Amend CSSB 1 as follows:Amend Sec. 7.01 of the bill amending section 16.012 of the Water Code

(House Committee Substitute for SB 1, p. 204, lines 12 through 14) by strikinglines 40 through 42 and substituting the following:

(2) determine suitable, cost-effective water supply alternatives on a regionalbasis, including voluntary means of encouraging aggressive water conservation;


Representative King moved to reconsider the vote by which AmendmentNo. 67 was adopted.


Amendment No. 68

Representative King offered the following amendment to AmendmentNo. 67:

Amend Floor Amendment No. 67 (by King) to CSSB 1 as follows:(1) In the introduction of the amendment, strike "(House Committee

Substitute for SB 1, page 102, lines 40 through 42) by striking lines 40 through42" and substitute "(house committee report, page 204, lines 12-14) by strikinglines 12-14".


(2) In the amended text, strike "conservation;" and substitute"conservation;".



Amendment No. 69


Amend CSSB 1, SECTION 7.01 page 205, by deleting Section16.012(b)(11) lines 8-10.


Amendment No. 70

Representative Giddings offered the following amendment to CSSB 1:

Amend CSSB 1 by inserting the following appropriately numbered sectionand renumbering the sections of the bill accordingly:

SECTION __. Subchapter L, Chapter 49, Water Code, is amended byadding Section 49.352 to read as follows:

Sec. 49.352. MUNICIPAL SYSTEM IN UNSERVED AREA. (a) Thissection applies only to a home-rule municipality that:

(1) is located in a county with a population of more than 1.75 millionthat is adjacent to a county with a population of more than 1 million; and

(2) has within its boundaries a part of a district.(b) If a district does not establish a fire department under this subchapter,

a municipality that contains a part of the district inside its boundaries may byordinance or resolution provide that a water system be constructed or extendedinto the area that is in both the municipality and the district for the deliveryof potable water that is sufficient to support the placement of fire hydrants andthe connection of the water system to fire suppression equipment.

(c) For purposes of this section, a municipality may obtain singlecertification in the manner provided by Section 13.255, Water Code, except thatthe municipality may file an application with the commission to grant singlecertification immediately after the municipality provides notice of intent toprovide service as required by Section 13.255(b), Water Code.


Amendment No. 71

On behalf of Representative B. Turner, Representative Counts offered thefollowing amendment to CSSB 1:

Amend CSSB 1 by adding the following appropriately numbered sectionand renumbering the subsequent sections appropriately:

SECTION ___. Subchapter L, Chapter 51, Water Code, is amended byadding Section 51.534 to read as follows:

Sec. 51.534. ADDITION OF LAND SUBJECT TO WATER QUALITYPLAN TO DEFINED AREA. The procedures of Section 49.301 may be usedto add land to a defined area created under this subchapter. The land must beincluded in the district and subject to a water quality plan approved by the


commission but is not required to be contiguous to the defined area.

Amendment No. 72

On behalf of Representative B. Turner, Representative Counts offered thefollowing amendment to Amendment No. 71:

Amend Amendment No. 71 by Turner of Coleman to CSSB 1 by addingthe following to Section 51.534, Water Code, after the sentence ending with"area" on line 11:

"Notwithstanding any law to the contrary, the procedures of Section 49.301,Water Code, shall apply to districts operating under Chapter 49, Water Code."



Amendment No. 73

Representative Gallego offered the following amendment to CSSB 1:

Amend CSSB 1 in ARTICLE 8 of the bill by adding the followingappropriately numbered section and renumbering the subsequent sectionsappropriately:

SECTION 8.___. This Act does not apply to:(1) a river or stream:

(A) that constitutes or defines the international boundarybetween the United States of America and the United Mexican States; and

(B) in which the water rights were not adjudicated before theeffective date of this Act;

(2) the waters of a river or stream described by Subdivision (1); or(3) a water improvement district that obtains all or part of its water

supply under:(A) contract with the United States; or(B) the Reclamation Act (43 U.S.C. Section 371 et seq.).




Representative Berlanga moved to reconsider the vote by whichAmendment No. 32 was adopted.


Amendment No. 74

Representative Junell offered the following amendment to AmendmentNo. 32:

Amend the Junell amendment to CSSB 1 to read as follows:Amend CSSB 1 in SECTION 2.07 of the bill, Section 11.085, Water Code

(House committee report, page 30, between lines 11 and 12) by adding thefollowing subsection, appropriately lettered, to read as follows and reletteringthe subsequent subsection appropriately:


( ) Any proposed transfer of all or a portion of a water right under thissection, from a river basin in which two or more river authorities or waterdistricts created under Article XVI, Section 59 of the Texas Constitution, havewritten agreements or permits that provide for the coordinated operation of theirrespective reservoirs to maximize the amount of water for beneficial use withintheir respective water services areas, shall be junior in priority to water rightsgranted before the time application for transfer is accepted for filing.



CSSB 1, as amended, was passed to third reading.

POSTPONED BUSINESS

The following bills were laid before the house as postponed business:

SB 360 ON SECOND READING(Stiles - House Sponsor)

SB 360, A bill to be entitled An Act relating to the review and continuationof certain state agencies and laws subject to the Texas Sunset Act.

SB 360 was read second time on May 21 and was postponed until 10 a.m.today.

Representative Berlanga moved to postpone consideration of SB 360 until10 a.m. Friday, May 23.


MAJOR STATE CALENDARSENATE BILLS

THIRD READING

The following bills were laid before the house and read third time:

SB 352 ON THIRD READING(Hightower - House Sponsor)

SB 352, A bill to be entitled An Act relating to the continuation, functions,and name of the Texas National Guard Armory Board.

SB 352 was passed.

SB 359 ON THIRD READING(Gray, Greenberg, Goodman, and Naishtat - House Sponsors)

SB 359, A bill to be entitled An Act relating to the continuation andoperation of the Department of Protective and Regulatory Services, theprovision of services to children and families, and suits affecting the parent-child relationship; providing penalties.

Amendment No. 1 Representatives McReynolds and Wohlgemuth offered the following

amendment to SB 359:

Amend SB 359 on 3rd reading by amending amendment number 20 byWohlgemuth to SB 359, adopted on second reading, by striking the text of theamendment and substituting the following:


Amend SB 359 by striking Section 264.107(a), Family Code, (page 81,lines 24-27, house committee report) and substituting the following:

(a) The department shall place a child removed from the child's custodialparent with the child's noncustodial parent or with a relative of the child ifplacement with the noncustodial parent is inappropriate, unless placement withthe noncustodial parent or a relative is not in the best interest of the child.


SB 359, as amended, was passed. (Heflin recorded voting no)

SB 371 ON THIRD READING(Stiles - House Sponsor)

SB 371, A bill to be entitled An Act relating to the continuation andfunctions of the Texas Commission on Fire Protection.

Amendment No. 1

Representative Telford offered the following amendment to SB 371:

Amend SB 371 on 3rd reading as follows:(1) Strike Section 419.054(a), Government Code, as amended by

SECTION 1.10 of the bill (page 10, lines 2-10, House Committee Report),and substitute the following:

(a) The funds allocation advisory committee is composed of six membersappointed by the commission. The [Three members are appointed by the] StateFiremen's and Fire Marshals' Association of Texas and [. Three members areappointed by] the Texas State Association of Fire Fighters may, on request bythe commission, recommend individuals for appointment to the committee. Acommittee member serves at the will of the commission [authority thatappointed the member].


Amendment No. 2

Representative Telford offered the following amendment to SB 371:

Amend SB 371 on 3rd reading as follows:Strike Sect. 5B(a), Article 5.43-4, Insurance Code, as amended by

SECTION 3.16 of the bill [page 48, Line 22-page 49, line 4, House CommitteeReport], and substitute the following:

Sec. 5B ADVISORY COUNCIL. (a) The Texas Commission on FireProtection [commission] shall establish an advisory council to assist thecommission in the administration of this article. The council is composed offive members who must be representatives from the fireworks industry. The[three of whom must be appointed from a list submitted to the commission bythe] Texas Pyrotechnic Association may, on request by the commission,recommend individuals for appointment to the council. A council memberserves at the will of the commission. The council shall assist the commissionin the review and adoption of rules under this article as provided by Subsection(b) of this section [Section 417.0041].



Amendment No. 3

Representative Swinford offered the following amendment to SB 371:

Amend SB 371 on 3rd reading as follows:(1) Insert a new SECTION in ARTICLE 1 of the bill, appropriately

numbered, to read as follows:SECTION 1.___. Subchapter Z, Chapter 419, Government Code, is

amended by adding Section 419.907 to read as follows:Sec. 419.907. LOCATION OF OFFICES OF COMMISSION, STATE

FIRE MARSHAL, AND TEXAS FOREST SERVICE. (a) To the extentfeasible, the commission, the state fire marshal, and the Texas Forest Serviceshall colocate office space used for related functions performed by the threeentities.

(b) The commission and the Texas Forest Service may enter into amemorandum of understanding to implement this section.

(2) Renumber subsequent sections of the article appropriately.


Amendment No. 4


Amend SB 371 on 3rd reading in Article 1 of the bill by adding a sectionto the bill, to be numbered appropriately, to read as follows and by renumberingthe subsequent sections of the bill appropriately:

SECTION ____. Section 419.008, Government Code, is amended byadding Subsection (l) to read as follows:

(l) The commission may establish and maintain a resource library thatprovides research and educational materials for persons who provide fire-fighting services and the general public.


Amendment No. 5


Amend SB 371 on 3rd reading as follows:(1) Strike SECTION 2.04 of the bill (page 18, line 10, through page 20,

line 2, House Committee Printing) and substitute the following appropriatelynumbered sections:

SECTION 2.___. Section 419.034(e), Government Code, is amended toread as follows:

(e) Notwithstanding any other law, the commission by rule may establisha procedure to waive the late fees or examination required by this section if:

(1) the person's certificate expired because of the employing entity'sgood faith clerical error, including the failure of the employing entity to submitfees in a timely manner; or

(2) the person's certificate expired as a result of termination of theperson's employment and the person has been restored to employment as aresult of a disciplinary procedure or a court action [Subsection (d), a personmay apply for and the commission may issue a new certificate without the


person's retaking the proficiency examination or repeating the requirements forobtaining an original certificate if the person previously held the certificationbeing sought and:

[(1) has continuously held fire protection personnel certification inanother discipline;

[(2) has been employed in a fire protection personnel position inanother jurisdiction without a break in service of one year or longer; or

[(3) has been employed full-time, without a break in service of oneyear or longer, by a nongovernmental entity as a fire protection employee incircumstances under which the person would have been eligible for fireprotection personnel certification if the person had been employed by a localgovernment].

SECTION 2.___. Subchapter B, Chapter 419, Government Code, isamended by adding Section 419.0341 to read as follows:

Sec. 419.0341. INDIVIDUAL CERTIFICATE HOLDER; CERTIFICATERENEWAL. (a) Notwithstanding any other provision of this subchapter, aperson may be certified as fire protection personnel and continue to hold andrenew the certificate without regard to whether the person is employed orcontinues to be employed by a local authority or fire department.

(b) A person who is certified as fire protection personnel who is notemployed by a local authority or fire department may renew an unexpiredcertificate before the expiration of the certificate by:

(1) submitting evidence satisfactory to the commission of completionof any required professional education; and

(2) paying to the commission the required renewal fee.(c) If the person's certificate has been expired for 30 days or less, the

person may renew the certificate by:(1) submitting evidence satisfactory to the commission of completion

of any required professional education; and(2) paying to the commission the required renewal fee and a fee that

is one-half of the certification fee for the certificate.(d) If the person's certificate has been expired for longer than 30 days but

less than one year, the person may renew the certificate by:(1) submitting evidence satisfactory to the commission of completion

of any required professional education; and(2) paying to the commission all unpaid renewal fees and a fee that

is equal to the certification fee for the certificate.(e) If the person's certificate has been expired for one year or longer, the

person may not renew the certificate. The person may obtain a new certificateby submitting to the proficiency examination or repeating the requirements andprocedures for obtaining an original certificate. The commission shall chargea fee to cover the cost of administering the proficiency examination.

(f) At least 30 days before the expiration of the certificate of a person whois not employed by a local authority or fire department, the commission shallsend written notice of the impending certificate expiration to the last knownaddress of the person according to the records of the commission.

(g) The commission shall establish by rule the procedures and requirementsfor evidence of compliance with this section.


(h) Notwithstanding any other law, the commission by rule may establisha procedure to waive the late fees or examination required by this section fora person whose certificate expired because of the person's good faith clericalerror, including the person's failure to submit fees in a timely manner.

(2) Renumber subsequent sections of the bill appropriately.


Amendment No. 6


Amend SB 371 on 3rd reading in SECTION 2.07 of the bill by strikingnew Section 419.073, Government Code (committee report, page 26, line 8,through page 27, line 18), and substituting the following:

Sec. 419.073. INDIVIDUAL VOLUNTEER CERTIFICATE HOLDER;CERTIFICATE RENEWAL. (a) A person may be certified as a volunteer firefighter and continue to hold and renew the certificate without regard to whetherthe person is affiliated or continues to be affiliated with a volunteer firedepartment.

(b) A person who is certified as a volunteer fire fighter who is notaffiliated with a volunteer fire department may renew an unexpired certificatebefore the expiration of the certificate by:

(1) submitting evidence satisfactory to the commission of completionof any required professional education; and

(2) paying to the commission the required renewal fee.(c) If the person's certificate has been expired for 30 days or less, the

person may renew the certificate by:(1) submitting evidence satisfactory to the commission of completion

of any required professional education; and(2) paying to the commission the required renewal fee and a fee that

is one-half of the certification fee for the certificate.(d) If the person's certificate has been expired for longer than 30 days but

less than one year, the person may renew the certificate by:(1) submitting evidence satisfactory to the commission of completion

of any required professional education; and(2) paying to the commission all unpaid renewal fees and a fee that

is equal to the certification fee for the certificate.(e) If the person's certificate has been expired for one year or longer, the

person may not renew the certificate. The person may obtain a new certificateby submitting to the proficiency examination or repeating the requirements andprocedures for obtaining an original certificate. The commission shall chargea fee to cover the cost of administering the proficiency examination.

(f) At least 30 days before the expiration of the certificate of a person whois not affiliated with a volunteer fire department, the commission shall sendwritten notice of the impending certificate expiration to the last known addressof the person according to the records of the commission.

(g) The commission shall establish by rule the procedures and requirementsfor evidence of compliance with this section.

(h) Notwithstanding any other law, the commission by rule may establish


a procedure to waive the late fees or examination required by this section fora person whose certificate expired because of the person's good faith clericalerror, including the person's failure to submit fees in a timely manner.


Amendment No. 7


Amend SB 371 on 3rd reading.Strike language at page 20, line 16 through line 22 of Section 2.06 of

SB 371.


SB 371, as amended, was passed.

SB 681 ON THIRD READING(Stiles - House Sponsor)

SB 681, A bill to be entitled An Act relating to the alternative fuelsprogram.

SB 681 was passed.

MAJOR STATE CALENDARSENATE BILLS

SECOND READING

The following bills were laid before the house and read second time:

CSSB 54 ON SECOND READING(Gray, Greenberg, McCall, and Averitt - House Sponsors)

CSSB 54, A bill to be entitled An Act relating to access to certainobstetrical or gynecological health care under a health benefit plan; providingadministrative penalties.

Amendment No. 1

Representative Madden offered the following amendment to CSSB 54:

Amend CSSB 54 on page 2, line 25, by inserting an "(a)" between the "(3)"and "is".

Insert on page 3, between lines 2 and 3, a new "(b)" which would containtext which reads "Notwithstanding Section 172.014, Local Government Code,or any other law, this article applies to health and accident coverage providedby a risk pool created under Chapter 172, Local Government Code.",renumbering the subsequent lines and realphabetizing the subsequent sectionsaccordingly.


(Sadler now present)


CSSB 54, as amended, was passed to third reading by (Record 492): 144


Yeas, 0 Nays, 1 Present, not voting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Bosse; Burnam; Carter; Chavez; Chisum; Christian; Clark; Coleman; Cook;Corte; Counts; Crabb; Craddick; Cuellar; Culberson; Danburg; Davila; Davis;Delisi; Denny; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland; Elkins;Farrar; Finnell; Flores; Gallego; Galloway; Garcia; Giddings; Glaze; Goodman;Goolsby; Gray; Greenberg; Grusendorf; Gutierrez; Haggerty; Hamric; Hartnett;Hawley; Heflin; Hernandez; Hightower; Hilbert; Hilderbran; Hill; Hinojosa;Hirschi; Hodge; Holzheauser; Horn; Howard; Hunter; Hupp; Isett; Jackson;Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel; Keffer; King; Krusee; Kubiak;Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna; Madden; Marchant; Maxey;McCall; McClendon; McReynolds; Merritt; Moffat; Moreno; Mowery; Naishtat;Nixon; Oakley; Oliveira; Olivo; Palmer; Patterson; Pickett; Pitts; Place; Price;Puente; Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.; Rhodes;Roman; Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis; Solomons;Staples; Stiles; Swinford; Talton; Telford; Thompson; Tillery; Torres;Turner, B.; Turner, S.; Uher; Van de Putte; Walker; West; Williams; Williamson;Wilson; Wise; Wohlgemuth; Wolens; Woolley; Yarbrough; Zbranek.


Absent, Excused — Driver; Smithee.

Absent, Excused, Committee Meeting — Brimer; Hochberg.

SB 253 ON SECOND READING(Danburg, Driver, J. Jones, Rhodes, and Kubiak - House Sponsors)

SB 253, A bill to be entitled An Act relating to the selection oftelecommunications utilities by customers.

SB 253 was passed to third reading.

SB 1417 ON SECOND READING(Gallego - House Sponsor)

SB 1417, A bill to be entitled An Act relating to judicial efficiency.

Amendment No. 1 (Committee Amendment No. 1)

Representative Luna offered the following committee amendment toSB 1417:

Amend SB 1417 as follows:(1) In SECTION 1 of the bill, in the last sentence of proposed Section

51.921(b), Government Code (page 1, line 19, engrossed printing), strike "ormunicipal" and ", as appropriate".

(2) In SECTION 1 of the bill, strike proposed Section 51.921(d),Government Code (page 2, lines 3-7, engrossed printing), and substitute thefollowing:

(d) The custodian of the county treasury shall deposit 10 percent of thefees collected under this section in an appropriate account under the control ofthe officer who collected the fees as reimbursement for the expense of makingcollections under this section.


(3) Strike SECTION 5 of the bill and renumber the subsequent SECTIONSof the bill accordingly.

Amendment No. 2

Representative Chisum offered the following amendment to AmendmentNo. 1:

Amend Committee Amendment No. 1 to SB 1417 as follows:Strike the text of proposed Section 51.921(d) (as printed on page 16, lines

9-13, house committee report printing) and substitute the following:"(d) The custodian of the county treasury shall deposit 10 percent of the

fees collected under this section in the general fund of the county asreimbursement for the expense of collections under this section."



Amendment No. 3

Representative Thompson offered the following amendment to SB 1417:

Amend SB 1417 as follows:(1) On page 1, lines 8 and 9, strike "and justice court" and substitute

"justice court, and municipal court".(2) On page 1, line 20, strike "county treasury" and substitute "county or

municipal treasury, as appropriate,".(3) On page 2, line 3, strike "county treasury" and substitute "county or

municipal treasury, as appropriate,".(4) On page 2, line 8, strike "county treasury" and substitute "county or

municipal treasury, as appropriate,".


SB 1417, as amended, was passed to third reading. (Carter, Hartnett,Heflin, Howard, Nixon, Rabuck, and Williams recorded voting no)

(Brimer now present)

SB 46 ON SECOND READING(Wolens and Greenberg - House Sponsors)

SB 46, A bill to be entitled An Act relating to the punishment for certaindefendants convicted of assaultive offenses, including sexual assault, and forcertain offenses committed with intent to commit assaults.

SB 46 was passed to third reading. (Keel recorded voting yes)

CONSTITUTIONAL AMENDMENTS CALENDARSENATE JOINT RESOLUTIONS

SECOND READING

The following resolutions were laid before the house and read second time:

CSSJR 43 ON SECOND READING(Hilbert - House Sponsor)

CSSJR 43, A joint resolution proposing a constitutional amendmentauthorizing the legislature to limit increases in value and the frequency of


appraisals of residence homesteads for property tax purposes and to provide forthe transfer to a different residence homestead of the school property tax freezeon residence homesteads of the elderly.

Amendment No. 1

On behalf of Representative Oakley, Representative Hilbert offered thefollowing amendment to CSSJR 43:

Amend CSSJR 43 as follows:(1) On page 2, strike lines 4 and 5 and substitute the following:SECTION 1. Section 1-b, Article VIII, Texas Constitution, is amended by

amending Subsection (d) and adding Subsection (g) to read as follows:(2) On page 3, between lines 1 and 2, insert the following:(g) For purposes of the limitation on tax increases on a subsequently

qualified residence homestead provided by Subsection (d) of this section, thelegislature by general law may authorize the governing body of a school districtto elect to apply the limitation provided by Subsection (d) to the residencehomestead of an individual as if that limitation were in effect on a date beforeJanuary 1, 1998, as prescribed by the legislature. The legislature may specifythe date by which the governing body must make the election. The electionapplies only to taxes imposed in a tax year that begins after the tax year inwhich the election is made.



CSSJR 43, as amended, was adopted by (Record 493): 144 Yeas, 0 Nays,1 Present, not voting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Bosse; Brimer; Burnam; Carter; Chavez; Chisum; Christian; Clark; Coleman;Cook; Corte; Counts; Crabb; Craddick; Cuellar; Culberson; Danburg; Davila;Davis; Delisi; Denny; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland;Elkins; Farrar; Finnell; Flores; Gallego; Galloway; Garcia; Giddings; Glaze;Goodman; Goolsby; Gray; Greenberg; Grusendorf; Gutierrez; Haggerty; Hamric;Hartnett; Hawley; Heflin; Hernandez; Hightower; Hilbert; Hilderbran; Hill;Hinojosa; Hirschi; Hodge; Holzheauser; Horn; Howard; Hunter; Hupp; Isett;Jackson; Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel; Keffer; King; Krusee;Kubiak; Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna; Madden; Marchant;Maxey; McCall; McClendon; McReynolds; Merritt; Moffat; Moreno; Mowery;Naishtat; Nixon; Oakley; Oliveira; Olivo; Palmer; Patterson; Pickett; Pitts;Place; Price; Puente; Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.;Rhodes; Roman; Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis;Solomons; Staples; Stiles; Swinford; Talton; Telford; Thompson; Tillery; Torres;Turner, B.; Turner, S.; Uher; Van de Putte; Walker; West; Williams; Williamson;Wilson; Wise; Wolens; Woolley; Yarbrough; Zbranek.



Absent, Excused, Committee Meeting — Hochberg.

Absent — Wohlgemuth.


GENERAL STATE CALENDARSENATE BILLS

THIRD READING

The following bills were laid before the house and read third time:

SB 1514 ON THIRD READING(Flores - House Sponsor)

SB 1514, A bill to be entitled An Act relating to coordinating coloniainitiatives.


SB 1514 was passed by (Record 494): 144 Yeas, 1 Nay, 1 Present, notvoting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Bosse; Brimer; Burnam; Carter; Chavez; Chisum; Christian; Clark; Coleman;Cook; Corte; Counts; Crabb; Craddick; Cuellar; Culberson; Danburg; Davila;Davis; Delisi; Denny; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland;Elkins; Farrar; Finnell; Flores; Gallego; Galloway; Garcia; Giddings; Glaze;Goodman; Goolsby; Gray; Greenberg; Grusendorf; Gutierrez; Haggerty; Hamric;Hawley; Heflin; Hernandez; Hightower; Hilbert; Hilderbran; Hill; Hinojosa;Hirschi; Hodge; Holzheauser; Horn; Howard; Hunter; Hupp; Isett; Jackson;Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel; Keffer; King; Krusee; Kubiak;Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna; Madden; Marchant; Maxey;McCall; McClendon; McReynolds; Merritt; Moffat; Moreno; Mowery; Naishtat;Nixon; Oakley; Oliveira; Olivo; Palmer; Patterson; Pickett; Pitts; Place; Price;Puente; Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.; Rhodes;Roman; Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis; Solomons;Staples; Stiles; Swinford; Talton; Telford; Thompson; Tillery; Torres;Turner, B.; Turner, S.; Uher; Van de Putte; Walker; West; Williams; Williamson;Wilson; Wise; Wohlgemuth; Wolens; Woolley; Yarbrough; Zbranek.

Nay — Hartnett.




STATEMENT OF VOTE

I was shown voting yes on Record No. 494. I intended to vote no.

Carter

SB 343 ON THIRD READING(Brimer and Hirschi - House Sponsors)

SB 343, A bill to be entitled An Act relating to speed limits for vehiclestowing certain trailers.

SB 343 was passed.

HB 10 - MOTION TO NOT PRINT

Representative Brimer moved to suspend House Rule 12, Section 1(a)(2)


to enable the Senate amendments for HB 10 to be printed and distributedwithout the text of the engrossed bill.


SB 495 ON THIRD READING(Ramsay - House Sponsor)

SB 495, A bill to be entitled An Act relating to travel expenses incurredby state officers and employees.

SB 495 was passed. (Finnell recorded voting no)

STATEMENT BY REPRESENTATIVE FINNELL

I voted no on SB 495 by Armbrister as I feel that trips to attend funeralsof state employees should not be taken at state expense.

Finnell

STATEMENT BY REPRESENTATIVE GRUSENDORF

I wish to register a no vote on SB 495 for the following reason:Sections 660.074 and 660.075 establish a special privilege for certain "key"

individuals allowing them "additional" travel reimbursements, in effect allowingmultiple reimbursements for the same trip. Additionally, Section 660.075 allowsthese same "key" individuals to ignore the constitutional prohibition ofcontracting with the state. This provision, when taken in conjunction with Sec.660.074, would allow self-dealing in a manner which the Constitution intendedto prohibit.

Grusendorf

SB 274 ON THIRD READING(Oliveira - House Sponsor)

SB 274, A bill to be entitled An Act relating to the operation of TheUniversity of Texas at Brownsville.


SB 274 was passed by (Record 495): 123 Yeas, 14 Nays, 2 Present, notvoting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Bosse; Brimer; Burnam; Chavez; Coleman; Cook; Counts; Craddick; Cuellar;Culberson; Danburg; Davila; Davis; Delisi; Dukes; Dunnam; Dutton; Edwards;Ehrhardt; Eiland; Farrar; Finnell; Flores; Gallego; Garcia; Giddings; Glaze;Goodman; Goolsby; Gray; Greenberg; Grusendorf; Gutierrez; Haggerty; Hamric;Hawley; Hernandez; Hightower; Hilbert; Hill; Hinojosa; Hirschi; Hodge;Holzheauser; Hunter; Jackson; Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel;Keffer; King; Krusee; Kubiak; Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna;Marchant; Maxey; McClendon; McReynolds; Merritt; Moreno; Mowery;Naishtat; Nixon; Oakley; Oliveira; Olivo; Palmer; Patterson; Pickett; Pitts;Place; Price; Puente; Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Rhodes;Roman; Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis; Solomons;Staples; Stiles; Talton; Telford; Thompson; Tillery; Torres; Turner, B.;


Turner, S.; Uher; Van de Putte; Walker; West; Williams; Williamson; Wilson;Wise; Wohlgemuth; Wolens; Yarbrough; Zbranek.

Nays — Carter; Chisum; Christian; Crabb; Denny; Galloway; Hartnett;Heflin; Isett; Madden; McCall; Moffat; Swinford; Woolley.

Present, not voting — Mr. Speaker(C); Clark.



Absent — Corte; Elkins; Hilderbran; Horn; Howard; Hupp; Reyna, E.

STATEMENTS OF VOTE

I was shown voting present, not voting on Record No. 495. I intended tovote no.

Clark

When Record No. 495 was taken, I was temporarily out of the housechamber. I would have voted yes.

Hilderbran


McCall

SB 1591 ON THIRD READING(Talton - House Sponsor)

SB 1591, A bill to be entitled An Act relating to the authority of the TexasNatural Resource Conservation Commission regarding pollution control orabatement flexibility.

Amendment No. 1

Representative Talton offered the following amendment to SB 1591:

Amend SB 1591 on 3rd reading by striking the text of the Gallegoamendment adopted on second reading and substituting the following:

Amend SB 1591 on page 2, line 6, by adding new subsection 5.123(f) toread as follows:

(f) This section does not authorize exemptions to statutes or regulations forstoring, handling, processing or disposing of low level radioactive materials.



SB 1591, as amended, was passed by (Record 496): 132 Yeas, 12 Nays,1 Present, not voting.

Yeas — Alexander; Allen; Alvarado; Averitt; Bailey; Berlanga; Bonnen;Brimer; Carter; Chisum; Christian; Clark; Coleman; Cook; Corte; Counts;Crabb; Craddick; Cuellar; Culberson; Danburg; Delisi; Denny; Dukes; Dunnam;Dutton; Edwards; Ehrhardt; Eiland; Elkins; Farrar; Finnell; Flores; Galloway;Garcia; Giddings; Glaze; Goodman; Goolsby; Greenberg; Grusendorf; Gutierrez;


Haggerty; Hamric; Hartnett; Hawley; Heflin; Hernandez; Hightower; Hilbert;Hilderbran; Hill; Hinojosa; Hirschi; Hodge; Holzheauser; Horn; Howard;Hunter; Hupp; Isett; Jackson; Janek; Jones, D.; Jones, J.; Junell; Kamel; Keel;Keffer; King; Krusee; Kubiak; Kuempel; Lewis, G.; Lewis, R.; Longoria;Madden; Marchant; Maxey; McCall; McClendon; McReynolds; Merritt; Moffat;Moreno; Mowery; Nixon; Oakley; Oliveira; Palmer; Patterson; Pickett; Pitts;Place; Price; Puente; Rabuck; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.;Rhodes; Roman; Sadler; Seaman; Serna; Shields; Siebert; Smith; Solis; Staples;Stiles; Swinford; Talton; Telford; Thompson; Tillery; Torres; Turner, B.; Uher;Van de Putte; Walker; West; Williams; Williamson; Wilson; Wise; Wohlgemuth;Wolens; Woolley; Yarbrough.

Nays — Bosse; Burnam; Chavez; Davis; Gallego; Gray; Luna; Naishtat;Olivo; Solomons; Turner, S.; Zbranek.




Absent — Davila.

GENERAL STATE CALENDARSENATE BILLS

SECOND READING

The following bills were laid before the house and read second time:

CSSB 30 ON SECOND READING(Maxey - House Sponsor)

CSSB 30, A bill to be entitled An Act relating to fraud and improperpayments under the state Medicaid program and other welfare programs; to thecreation of private cause of action for false claims for certain governmentpayments; and to the creation of a criminal offense; providing penalties.

Amendment No. 1

Representative Maxey offered the following amendment to CSSB 30:

Amend CSSB 30 as follows:(1) In SECTION 1.05(a) of the bill, in proposed Section 531.047(a),

Government Code (House Committee Report page 6, line 26), between"commission" and "by", insert ", after consulting with the Texas Departmentof Human Services,".

(2) In SECTION 1.05(a) of the bill, in proposed Section 531.047(a),Government Code (House Committee Report page 7, line 5), between "states"and the period, insert "or other appropriate factors identified by the commissionand the department".

(3) In SECTION 1.05(a) of the bill, in proposed Section 531.047(b),Government Code (House Committee Report page 7, line 10), between"amount" and "the department", insert "of state funds".

(4) In SECTION 1.05(a) of the bill, in proposed Section 531.047(b),


Government Code (House Committee Report page 7, line 11), between"amount" and "the department", insert "of state funds".

(5) In SECTION 1.06(a) of the bill (House Committee Report page 16, line26 through page 17, line 4), strike proposed Section 531.109, GovernmentCode.

(6) In SECTION 2.05(a) of the bill, in amended Section 16A(n)(3), Article4413(502), Revised Statutes (House Committee Report page 28, line 7), strike"subcontract" and substitute "contract for ancillary services".

(7) In SECTION 2.05(a) of the bill, in amended Section 16A(n)(4), Article4413(502), Revised Statutes (House Committee Report page 28, line 11), strike"subcontract" and substitute "contract for ancillary services".

(8) In SECTION 2.05(c) of the bill, in proposed Section 532.112(a)(3),Government Code (House Committee Report page 31, line 13), strike"subcontract" and substitute "contract for ancillary services".

(9) In SECTION 2.05(c) of the bill, in proposed Section 532.112(a)(4),Government Code (House Committee Report page 31, line 17), strike"subcontract" and substitute "contract for ancillary services".

(10) In SECTION 2.05(g)(1) of the bill (House Committee Report page 34,line 6), strike "subcontract" and substitute "contract for ancillary services".

(11) In SECTION 2.05(g)(2) of the bill (House Committee Report page 34,line 8), strike "subcontract" and substitute "contract for ancillary services".

(12) In SECTION 2.05(h) of the bill (House Committee Report page 34,lines 13 and 14), strike "or subcontract".

(13) In SECTION 2.05(h) of the bill (House Committee Report page 34,line 15), strike "or subcontract".

(14) In SECTION 4.06 of the bill, in amended Section 36.005(b), HumanResources Code (House Committee Report page 57, line 27), strike "section"and substitute "subsection".

(15) In SECTION 4.08 of the bill, in proposed Section 36.101(a), HumanResources Code (House Committee Report page 59, line 2), strike "name ofthe state" and substitute "name of the person and of the state".

(16) In SECTION 4.08 of the bill, strike proposed Section 36.104, HumanResources Code (House Committee Report page 60, lines 5-11), and substitutethe following:

Sec. 36.104. CONTINUATION OR DISMISSAL OF ACTION BASEDON STATE DECISION. (a) Not later than the last day of the periodprescribed by Section 36.102(c), the state shall:

(1) proceed with the action; or(2) notify the court that the state declines to take over the action.

(b) If the state declines to take over the action, the court shall dismiss theaction.

(17) In SECTION 4.08 of the bill, strike proposed Section 36.108, HumanResources Code (House Committee Report page 62, lines 2-12).

(18) In SECTION 4.08 of the bill, in proposed Section 36.109, HumanResources Code (House Committee Report page 62, line 13), strike "36.109"and substitute "36.108".

(19) In SECTION 4.08 of the bill, in proposed Section 36.109(a), HumanResources Code (House Committee Report page 62, lines 13-14), strike


"Regardless of whether the state proceeds with the action, on" and substitute"On".

(20) In SECTION 4.08 of the bill, in proposed Section 36.110, HumanResources Code (House Committee Report page 63, line 1), strike "36.110" andsubstitute "36.109".


(22) In SECTION 4.08 of the bill, strike proposed Section 36.111(c),Human Resources Code (House Committee Report page 64, lines 9-14).

(23) In SECTION 4.08 of the bill, in proposed Section 36.111(d), HumanResources Code (House Committee Report page 64, line 15), strike "(d)" andsubstitute "(c)".

(24) In SECTION 4.08 of the bill, in proposed Section 36.111(e), HumanResources Code (House Committee Report page 64, line 21), strike "(e)" andsubstitute "(d)".


(26) In SECTION 4.08 of the bill, in proposed Section 36.112(a), HumanResources Code (House Committee Report page 64, lines 23-24), strike"Regardless of whether the state proceeds with the action, if" and substitute "If".

(27) In SECTION 4.08 of the bill, in proposed Section 36.112(a), HumanResources Code (House Committee Report page 65, line 2), strike "36.111" andsubstitute "36.110".

(28) In SECTION 4.08 of the bill, in proposed Section 36.113, HumanResources Code (House Committee Report page 65, line 11) strike "36.113" andsubstitute "36.112".

(29) In SECTION 4.08 of the bill, in the heading to proposed Section36.113, Human Resources Code (House Committee Report page 65, lines 11-12), strike "OR ACTION BROUGHT FOR PURPOSES OF HARASSMENT".

(30) In SECTION 4.08 of the bill, strike proposed Sections 36.113(a) and(b), Human Resources Code (House Committee Report page 65, lines 12-24).

(31) In SECTION 4.08 of the bill, in proposed Section 36.113(c), HumanResources Code (House Committee Report page 65, line 25), strike "(c)".




(35) In SECTION 4.08 of the bill, in proposed Section 36.117, HumanResources Code (House Committee Report page 67, line 7), strike "36.117" andsubstitute "36.116".

(36) In SECTION 4.08 of the bill, in proposed Section 36.117, Human


Resources Code (House Committee Report page 67, line 8), strike "36.113(c)"and substitute "36.112".


(38) In SECTION 5.01(a) of the bill, in proposed Section 23.004(c),Human Resources Code (House Committee Report page 72, line 9), between"commissioner" and "shall", insert "or the commissioner's designatedrepresentative".

(39) In SECTION 7.01(a) of the bill, in proposed Section 2259.014,Government Code (House Committee Report page 84, line 27), between"EXCEPTIONS." and "A", insert "(a)".

(40) In SECTION 7.01(a) of the bill, in proposed Section 2259.014,Government Code (House Committee Report page 85, between lines 4 and 5),insert the following:

(b) A court may not award exemplary damages under Section 2259.011against a governmental entity.

(41) In SECTION 7.01(a) of the bill, in proposed Section 2259.043,Government Code (House Committee Report page 88, line 17), strike"INTERVENTION" and substitute "INTERVENTION AND CONTINUATIONOR DISMISSAL OF ACTION".

(42) In SECTION 7.01(a) of the bill, in proposed Section 2259.043,Government Code (House Committee Report page 89, between lines 15 and16), insert the following:

(f) If neither the attorney general nor the prosecuting authority assumesresponsibility for prosecution of the action, the court shall dismiss the action.

(43) In SECTION 7.01(a) of the bill, in proposed Section 2259.045(a),Government Code (House Committee Report page 91, line 14), between"Subsection (c)" and the comma, insert "and subject to Subsection (d)".

(44) In SECTION 7.01(a) of the bill, in proposed Section 2259.045,Government Code (House Committee Report page 92, between lines 2 and 3),insert the following:

(d) An award to a person under this section is subject to any applicablerestrictions under federal law on the use of the proceeds from the settlementor judgment.

(45) In SECTION 7.01(a) of the bill, strike proposed Section 2259.046,Government Code (House Committee Report page 92, lines 3-16).

(46) In SECTION 7.01(a) of the bill, in proposed Section 2259.047,Government Code (House Committee Report page 92, line 17), strike"2259.047" and substitute "2259.046".

(47) In SECTION 7.01(a) of the bill, in proposed Section 2259.047(a),Government Code (House Committee Report page 92, lines 17-20), strike"Regardless of whether the attorney general or the prosecuting authority assumesresponsibility for the prosecution of the action under Section 2259.043, if" andsubstitute "If".

(48) In SECTION 7.01(a) of the bill, strike proposed Section 2259.048,Government Code (House Committee Report page 93, lines 7-21).

(49) In SECTION 7.01(a) of the bill, in proposed Section 2259.049,


Government Code (House Committee Report page 93, line 22), strike"2259.049" and substitute "2259.047".

(50) In SECTION 7.01(a) of the bill, immediately following proposedSection 2259.049, Government Code (House Committee Report page 94, line10), strike "Section 2259.050" and substitute "Sections 2259.048-2259.050".

Amendment No. 2

Representative Maxey offered the following amendment to AmendmentNo. 1:

Amend Amendment No. 1 to CSSB 30 by Maxey as follows:(1) Strike Items (39) and (40) (page 6, lines 3-10 of the amendment).(2) Add the following appropriately-numbered items:( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.002,

Government Code (House Committee Report page 82, line 7), between "A" and"person", insert "private".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.011(a),Government Code (House Committee Report page 83, line 16), between "a" and"person", insert "private".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.011(b),Government Code, (House Committee Report page 83, line 26), between "the"and "person", insert "private".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.011(c),Government Code (House Committee Report page 84, line 7), between "A" and"person", insert "private".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.011(c)(2),Government Code (House Committee Report page 84, line 11), strike"deliberate ignorance or".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.012,Government Code (House Committee Report page 84, line 20) between "the"and "person", insert "private".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.013,Government Code (House Committee Report page 84, line 26), between "one"and "person", insert "private".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.014,Government Code (House Committee Report page 85, line 2), between "a" and"person", insert "private".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.021(b),Government Code (House Committee Report page 86, line 8), between "a" and"person", insert "private".

( ) In SECTION 7.01(a) of the bill, in proposed Section 2259.031(b),Government Code (House Committee Report page 87, line 3), between "a" and"person", insert "private".

(3) Renumber the existing items in the amendment appropriately.




Amendment No. 3

Representative Gallego offered the following amendment to CSSB 30:

Amend CSSB 30 by adding the following article, appropriately numbered,and renumbering the existing articles of the bill accordingly:

ARTICLE ____. MISCELLANEOUS PROVISION.Sec. ____.01. THEFT BY GOVERNMENT CONTRACTOR. (a) Section

31.03(f), Penal Code, is amended to read as follows:(f) An offense described for purposes of punishment by Subsections (e)(1)-

(6) is increased to the next higher category of offense if it is shown on the trialof the offense that:

(1) the actor was a public servant at the time of the offense[;] and[(2)] the property appropriated came into the actor's custody,

possession, or control by virtue of his status as a public servant; or(2) the actor was in a contractual relationship with government at the

time of the offense and the property appropriated came into the actor's custody,possession, or control by virtue of the contractual relationship.

(b) The changes in law made by this section apply only to an offensecommitted on or after the effective date of this section. For purposes of thissection, an offense is committed before the effective date of this section if anyelement of the offense occurs before that date.

(c) An offense committed before the effective date of this section iscovered by the law in effect at the time the offense was committed.



SB 674 ON SECOND READING(Place - House Sponsor)

SB 674, A bill to be entitled An Act relating to the prosecution of theoffense of possession or promotion of child pornography.


SB 1529 ON SECOND READING(Janek - House Sponsor)

SB 1529, A bill to be entitled An Act relating to the provision of housingand utility services for certain dwellings.

Amendment No. 1

Representative Janek offered the following amendment to SB 1529:

Amend SB 1529 on page 3 by striking lines 11 through 13 andrenumbering the subsequent sections accordingly.


SB 1529, as amended, was passed to third reading.

CSSB 20 ON SECOND READING(Thompson, Puente, Junell, Cuellar, Howard, et al. - House Sponsors)

CSSB 20, A bill to be entitled An Act relating to the creation of certaindistrict courts.


Amendment No. 1

Representative Olivo offered the following amendment to CSSB 20:

Amend CSSB 20 as follows:(1) In SECTION 1 of the bill, in added Section 24.540, Government Code

(House Committee Printing, page 1, line 16), strike "(a)".(2) In SECTION 1 of the bill, in added Section 24.540, Government Code

(House Committee Printing, page 1), strike lines 17-18.


Amendment No. 2

On behalf of Representative Gray, Representative Eiland offered thefollowing amendment to CSSB 20:

Amend CSSB 20 as follows:(1) In SECTION 2 of the bill (page 2, line 7, house committee printing),

strike "(a)".(2) In SECTION 2 of the bill (page 2, lines 8-9, house committee printing),

strike lines 8-9.


Amendment No. 3

Representatives Staples, Kubiak, and Averitt offered the followingamendment to CSSB 20:

Amend CSSB 20 as follows:(1) Strike SECTIONS 3-4 of the bill and renumber the subsequent

SECTIONS appropriately.


Amendment No. 4

Representatives Glaze and Kamel offered the following amendment toCSSB 20:


strike "24.549" and substitute "24.550".(2) At the end of SECTION 2 of the bill (page 3, between lines 2 and 3,

house committee printing), add the following:Sec. 24.550. 405TH JUDICIAL DISTRICT (SMITH COUNTY). The

405th Judicial District is composed of Smith County.


Amendment No. 5

Representatives Moreno, Gallego, Serna, Haggerty, Chavez, and Pickettoffered the following amendment to CSSB 20:


strike "24.549" and substitute "24.550".


(2) At the end of SECTION 2 of the bill (page 3, between lines 2 and 3,house committee printing), add the following:

Sec. 24.550. 405TH JUDICIAL DISTRICT (EL PASO COUNTY). The405th Judicial District is composed of El Paso County.

(3) Add the following section, appropriately numbered, and renumberexisting sections appropriately:

SECTION ____. Section 24.384, Government Code, is amended to read asfollows:

Sec. 24.384. 205TH JUDICIAL DISTRICT ([CULBERSON,] EL PASOCOUNTY [, AND HUDSPETH COUNTIES]. (a) The 205th Judicial Districtis composed of [Culberson,] El Paso County [, and Hudspeth Counties].

(b) [The 205th District Court shall give preference to criminal cases.[(c)] Section 24.136, relating to the 34th District Court, contains provisions

applicable to both that court and the 205th District Court.(c) The 205th District Court has jurisdiction of the community supervision

and corrections department that serves Hudspeth and Culberson counties.

Amendment No. 6

Representative Gallego offered the following amendment to AmendmentNo. 5:

Amend the Moreno amendment to CSSB 20 in (3) by adding the followingSECTION:

SECTION ____. (a) The local administrative district judge shall transferall cases from Culberson and Hudspeth counties that are pending in the 205thDistrict Court on the effective date of this Act to the 394th District Court.

(b) When a case is transferred from one court to another as provided bySubsection (a) of this section, all processes, writs, bonds, recognizances, or otherobligations issued from the transferring court are returnable to the court towhich the case is transferred as if originally issued by that court. The obligeesin all bonds and recognizances taken in and for a court from which a case istransferred, and all witnesses summoned to appear in a court from which a caseis transferred, are required to appear before the court to which a case istransferred as if originally required to appear before the court to which thetransfer is made.

Representative Chisum moved to table Amendment No. 6.

The motion to table was withdrawn.


Representative Chisum moved to table Amendment No. 5.


The motion to table prevailed by (Record 497): 90 Yeas, 41 Nays, 9Present, not voting.

Yeas — Alexander; Alvarado; Averitt; Bonnen; Bosse; Brimer; Carter;Chisum; Christian; Clark; Corte; Culberson; Danburg; Davila; Delisi; Denny;Dunnam; Dutton; Edwards; Elkins; Farrar; Flores; Galloway; Garcia; Goodman;


Goolsby; Grusendorf; Hartnett; Hawley; Heflin; Hernandez; Hilbert; Hilderbran;Hill; Hirschi; Hodge; Holzheauser; Horn; Howard; Hunter; Hupp; Jackson;Janek; Jones, D.; Jones, J.; Keel; Keffer; Krusee; Kuempel; Lewis, R.; Longoria;Madden; Marchant; McCall; McClendon; Merritt; Moffat; Mowery; Nixon;Oakley; Olivo; Palmer; Pitts; Place; Puente; Rabuck; Ramsay; Reyna, A.;Reyna, E.; Roman; Sadler; Seaman; Shields; Smith; Solis; Solomons; Staples;Swinford; Talton; Van de Putte; Walker; West; Williams; Williamson; Wilson;Wise; Wohlgemuth; Woolley; Yarbrough; Zbranek.

Nays — Allen; Bailey; Berlanga; Burnam; Chavez; Coleman; Cook; Counts;Crabb; Craddick; Cuellar; Ehrhardt; Eiland; Finnell; Gallego; Glaze; Gray;Gutierrez; Haggerty; Hamric; Hightower; Hinojosa; Isett; Junell; Kamel;McReynolds; Moreno; Oliveira; Patterson; Pickett; Price; Rangel; Rhodes;Serna; Siebert; Stiles; Tillery; Torres; Turner, B.; Uher; Wolens.

Present, not voting — Mr. Speaker(C); Dukes; Giddings; Greenberg;Lewis, G.; Luna; Maxey; Naishtat; Thompson.



Absent — Davis; King; Kubiak; Raymond; Telford; Turner, S.

STATEMENTS OF VOTE


Allen

When Record No. 497 was taken, I was in the house but away from mydesk. I would have voted no.

Davis

Amendment No. 7


Amend CSSB 20 as follows:(1) In SECTION 1 of the bill (page 1, lines 5-6, house committee printing),

strike "24.524, 24.538 and".(2) In SECTION 1 of the bill (page 1, lines 7-14, house committee

printing), strike lines 7-14.(3) In SECTION 2 of the bill (page 1, line 24, house committee printing),

between "Sections" and "24.542", insert "24.524, 24.538, and".(4) In SECTION 2 of the bill (page 2, between lines 1-2, house committee

printing), insert the following:Sec. 24.524. 379TH JUDICIAL DISTRICT (BEXAR COUNTY). (a) The

379th Judicial District is composed of Bexar County.(b) The 379th Judicial District shall give preference to criminal cases.Sec. 24.538. 393RD JUDICIAL DISTRICT (BEXAR COUNTY). (a) The

393rd Judicial district is composed of Bexar County.(b) The 393rd Judicial District shall give preference to juvenile matters.(5) In SECTION 5 of the bill (page 3, line 18, house committee printing),

between "the" and "397th", insert "379th, 393rd, and".



Amendment No. 8


Amend CSSB 20 as follows:(1) In SECTION 2 of the bill (page 2, line 1, House Committee Printing),

strike "24.549" and substitute "24.55__."(2) At the end of SECTION 2 of the bill (page 3, between lines 2 and 3,

House Committee printing), add the following:Sec. 24.55 . 406th JUDICIAL DISTRICT (BEXAR COUNTY). (a) The

406th Judicial District is composed of Bexar County.(b) The 406th Judicial District shall give preference to civil cases.Sec. 24.55 . 407th JUDICIAL DISTRICT (BEXAR COUNTY). (a) The

407th Judicial District is composed of Bexar County.(b) The 407th Judicial District shall give preference to criminal cases.(3) page 3, line 18, delete "404th" and insert "407th".


Amendment No. 9

Representative Cuellar offered the following amendment to CSSB 20:

Amend CSSB 20 in SECTION 2 of the bill (house committee printing,page 2, line 21), by striking "and cases under the Family Code" and substituting", cases under the Family Code, cases under the Health and Safety Code, andcases under the Texas Probate Code".


Amendment No. 10

Representative Cuellar offered the following amendment to CSSB 20:

Amend CSSB 20 by adding the following section, appropriately numbered,and renumbering the existing sections appropriately:

SECTION ____. Section 24.151(f), Government Code, is amended to readas follows:

(f) In Webb County, the clerk of the district courts shall file all civil cases,except tax suits, on the Clerk's Civil File Docket and shall number the casesconsecutively. Each civil case, except tax suits, shall be assigned and docketedat random by the district clerk in the manner provided by Section 24.304[according to the following percentages: 49th District Court, 20 percent; 111thDistrict Court, 60 percent; and the 341st District Court, 20 percent]. The clerkshall keep a separate file docket, known as the Clerk's Criminal File Docket,for criminal cases and a separate file docket, known as the Clerk's Tax SuitDocket, for tax suits. Each tax suit shall be assigned and docketed in the 49thDistrict Court. The clerk shall number the cases on the Clerk's Tax Suit Docketconsecutively with a separate series of numbers and shall number the cases onthe Clerk's Criminal File Docket consecutively with a separate series ofnumbers.




CSSB 205 ON SECOND READING(Alexander - House Sponsor)

CSSB 205, A bill to be entitled An Act relating to the administration ofcounty roads.

CSSB 205 was passed to third reading.

CSSB 329 ON SECOND READING(McReynolds and Torres - House Sponsors)

CSSB 329, A bill to be entitled An Act relating to the offense of makinga false report to a peace officer or to an employee of a law enforcement agency.

CSSB 329 was passed to third reading. (Keel recorded voting yes)

SB 1877 ON SECOND READING(Greenberg, Coleman, Giddings, Siebert, Delisi, et al. - House Sponsors)

SB 1877, A bill to be entitled An Act relating to creating a Texascommunity investment program to assist certain businesses in distressed areasof the state.

Amendment No. 1

Representative Greenberg offered the following amendment to SB 1877:

Amend SB 1877, on page 1, line 16, between "shall" and "establish", byinserting ", with any money specifically appropriated to the department for thatpurpose,".


SB 1877, as amended, was passed to third reading. (Hartnett and Woolleyrecorded voting no)

SB 310 ON SECOND READING(Goodman, Thompson, and Cuellar - House Sponsors)

SB 310, A bill to be entitled An Act relating to certain judicial salaries.

Amendment No. 1

On behalf of Representative Gallego, Representative Goodman offered thefollowing amendment to SB 310:

Amend SB 310 as follows:(1) On page 1, line 18, strike "$500" and substitute "$2,500 [$500]".(2) On page 2, line 6, strike "$2,000" and substitute "$6,000 [$2,000]".


Amendment No. 2

On behalf of Representative Gallego, Representative Goodman offered thefollowing amendment to SB 310:

Amend SB 310 by adding the following SECTION, appropriatelynumbered, and renumbering the existing SECTIONS appropriately:

SECTION __. Subchapter B, Chapter 659, Government Code, is amendedby adding Section 659.0125 to read as follows:


Sec. 659.0125. SALARY FOR LOCAL ADMINISTRATIVE JUDGE. Ina county with more than six district courts, a district judge who serves as alocal administrative district judge under Section 74.091 is entitled to an annualsalary from the state that is $5,000 more than the salary from the state to whichthe judge is otherwise entitled under Section 659.012(c).


Amendment No. 3

Representative Goodman offered the following amendment to SB 310:

Amend SB 310 by adding the following appropriately numbered section tothe bill and renumbering existing sections appropriately:

SECTION ____. Subchapter A, Chapter 26, Government Code, is amendedby adding Section 26.006 to read as follows:

Sec. 26.006. SALARY SUPPLEMENT FROM STATE FOR CERTAINCOUNTY JUDGES. (a) A county judge is entitled to an annual salarysupplement from the state of $5,000 if at least 40 percent of the functions thatthe judge performs are judicial functions.

(b) To receive a supplement under Subsection (a), a county judge must filewith the Office of Court Administration of the Texas Judicial System anaffidavit stating that at least 40 percent of the functions that the judge performsare judicial functions. The office of court administration shall send the affidavitto the comptroller.

Amendment No. 3 was adopted without objection. (Keel recorded votingno)

SB 310, as amended, was passed to third reading. (Bailey, Berlanga,Clark, Dunnam, Finnell, Heflin, Isett, Kamel, Marchant, Nixon, Serna, Shields,Solomons, Tillery, Torres, Walker, Wohlgemuth, Woolley, and Yarbroughrecorded voting no; Raymond and Zbranek, present, not voting)

STATEMENT BY REPRESENTATIVE CLARK

I request to be shown voting no on SB 310 because with the amendmentsand the fact that most employees are getting only 100 dollars a month raisewe are sending the wrong message as to priorities.

Clark

SB 227 ON SECOND READING(D. Jones - House Sponsor)

SB 227, A bill to be entitled An Act relating to a grant for a local areaadversely affected by a reduction in defense-related activity.

SB 227 was passed to third reading. (Hartnett and Woolley recordedvoting no)

SB 472 ON SECOND READING(Marchant - House Sponsor)

SB 472, A bill to be entitled An Act relating to powers of certain regionaltransportation authorities.


Amendment No. 1

Representative Marchant offered the following amendment to SB 472:

Amend SB 472 as follows:(1) On page 2, line 12, after "securities" insert:", or shall enter into one or more payment agreements, financial guarantees

or insurance contracts with counterparties having either a corporate credit ordebt rating in any form, a claims-paying ability, or a rating for financial strengthof "AA" or better by Moody's Investors Service, Inc. or by Standard & Poor'sCorporation, or "A (Class XII)" or better by BEST's rating system,"

(2) On page 2, line 12, after "that" insert: "by their terms,"(3) On page 2, line 13, after the comma insert: "or payment obligations,"



SB 1106 ON SECOND READING(Averitt - House Sponsor)

SB 1106, A bill to be entitled An Act relating to actions for the amountof deductible under personal automobile insurance policies.


CSSB 489 ON SECOND READING(Corte - House Sponsor)

CSSB 489, A bill to be entitled An Act relating to the regulation ofexplosives by a county fire marshal in certain counties.



Representative Stiles requested permission for the Committee on Calendarsto meet while the house is in session.




Calendars, 10:30 p.m. today, speakers committee room.

SB 455 ON SECOND READING(McCall - House Sponsor)

SB 455, A bill to be entitled An Act relating to liability insurance coveragefor a charitable organization.

Amendment No. 1 (Committee Amendment No. 1)

On behalf of Representative Zbranek, Representative McCall offered thefollowing committee amendment to SB 455:


Amend SB 455 in Section 84.007(g), Civil Practice and Remedies Code,as amended by SECTION 1 of the bill (page 1, lines 6-9, senate engrossmentprinting), by striking "Sections 84.005 and 84.006 of this Act [do not] applyto any charitable organization that has [does not have] liability insurancecoverage in effect for an [on any] act or omission for which recovery is soughtand to which this chapter applies." and substituting "Sections 84.005 and84.006 of this Act do not apply to any charitable organization that does nothave liability insurance coverage in effect on any act or omission to which thischapter applies."



SB 187 ON SECOND READING(Stiles - House Sponsor)

SB 187, A bill to be entitled An Act relating to the allocation of moneyin the law enforcement officer standards and education account to local lawenforcement agencies.


CSSB 877 ON SECOND READING(Berlanga - House Sponsor)

CSSB 877, A bill to be entitled An Act relating to the regulation of thepractice of dentistry.


SB 485 - RECOMMITTED

Representative Craddick moved to recommit SB 485 to the Committee onWays and Means.


COMMITTEE MEETING ANNOUNCEMENTS

The following committee meetings were announced:

Licensing and Administrative Procedures, on recess today, Desk 66, toconsider pending bills.

Civil Practices, on recess today, Desk 6, to consider SB 287, SB 883,SB 1119, SB 1689, and SB 1786.

Business and Industry, on recess today, Desk 3, to consider SB 1094 andSB 1195.

Ways and Means, on recess today, Desk 70.

RECESS

Representative D. Jones moved that the house recess until 10 a.m.tomorrow.



The house accordingly, at 10:23 p.m., recessed until 10 a.m. tomorrow.

————————————————

ADDENDUM——————————————

REFERRED TO COMMITTEES

The following bills and joint resolutions were today laid before the house,read first time, and referred to committees, and the following resolutions weretoday laid before the house and referred to committees. If indicated, the chairtoday corrected the referral of the following measures:

List No. 1

HCR 282 (by Wilson), Requesting the appointment of a Commission onMen.

To State Affairs.

HCR 284 (by Gallego), Recognizing Gallego's Mexican Food Restaurantfor 62 years of service to the people of Alpine.

To Rules & Resolutions.

HCR 286 (by Hirschi, Maxey, Berlanga, and Glaze), Encouraging theTexas Department of Health to develop and institute education and smokingcessation programs.

To Public Health.

HCR 288 (by Maxey, Coleman, Van de Putte, and Berlanga), Directingthe Texas Department of Health to develop and implement a drug manufacturerrebate program.

To Public Health.

HCR 289 (by Hochberg), Granting Mark Buchine permission to sue theState of Texas and The University of Texas Medical Branch at Galveston.

To Civil Practices.

HR 1005 (by Uher), In memory of the Honorable George "Geo." DanielHolst.


HR 1006 (by Uher), Honoring Sharon Carter.To Rules & Resolutions.

HR 1011 (by Wilson), Memorializing Congress to do whatever possibleto save the rain forests.

To Natural Resources.

HR 1015 (by Merritt), Congratulating the Reverend and Mrs. K. F. Charleson the occasion of their 50th wedding anniversary.


HR 1023 (by Woolley), In memory of Robert "Bob" Longo.To Rules & Resolutions.


HR 1027 (by Oliveira), Commemorating the 150th anniversary of thefounding of Brownsville.


HR 1028 (by Clark), Honoring Della Mathis for her exceptional serviceto her church and community.


HR 1029 (by Madden), Honoring Al Ruschhaupt for his many years ofcommunity service.


HR 1030 (by Madden), Honoring Dr. Edward J. Harpham on his receiptof the Chancellor's Council Outstanding Teaching Award for 1996-1997.


HR 1033 (by Christian), Congratulating Ben Meeks on being named aState Bowl finalist for the second consecutive year.


HR 1034 (by Christian), Congratulating Matt Middleton on winning thestate individual championship of the Texas Future Problem Solving Bowl.


HR 1038 (by Wise), Congratulating Ramon Zertuche, Jr., on being namedvaledictorian of Donna High School.


HR 1049 (by Shields), In memory of John Earl "Jack" Fulbright.To Rules & Resolutions.

HR 1050 (by Serna), Commending the Honorable Vince Munoz for hisaccomplishments as governor of the Tigua Indian Reservation.


SB 189 to Civil Practices.

SB 1384 to Juvenile Justice & Family Issues.

SCR 71 to Civil Practices.

SCR 95 to State Affairs.

SCR 102 to Rules & Resolutions.

SCR 104 to Rules & Resolutions.

SIGNED BY THE SPEAKER

The following bills and resolutions were today signed in the presence ofthe house by the speaker:

House List No. 61

HB 344, HB 422, HB 446, HB 564, HB 625, HB 685, HB 785, HB 932,HB 1209, HB 1439, HB 1504, HB 1865, HB 2029, HB 2600, HB 2618,HB 2649, HB 2861, HB 3031, HB 3250, HB 3337, HB 3367, HB 3448,


HB 3492, HB 3515, HB 3544, HCR 144, HCR 204, HCR 226, HCR 268,HJR 55, HJR 96

House List No. 62

HB 65, HB 297, HB 492, HB 762, HB 776, HB 818, HB 836, HB 883,HB 1016, HB 1401, HB 1453, HB 1800, HB 1853, HB 2255, HB 2335,HB 2382, HB 2446, HB 2525, HB 3025, HB 3170, HCR 283

Senate List No. 29

SB 10, SB 12, SB 18, SB 213, SB 331, SB 365, SB 426, SB 637, SB 693,SB 712, SB 1017, SB 1028, SB 1040, SB 1081, SB 1163, SB 1164, SB 1175,SB 1248, SB 1368, SB 1391, SB 1450, SB 1479, SB 1517, SB 1534, SB 1546,SB 1622, SB 1623, SB 1630, SB 1765, SB 1899, SCR 57, SCR 89, SCR 91

MESSAGES FROM THE SENATE

The following messages from the senate were today received by the house:

Message No. 1MESSAGE FROM THE SENATE

SENATE CHAMBERAustin, Texas

Thursday, May 22, 1997

The Honorable Speaker of the HouseHouse ChamberAustin, Texas

Mr. Speaker:

I am directed by the Senate to inform the House that the Senate has taken thefollowing action:

THE SENATE HAS PASSED THE FOLLOWING MEASURES:SCR 105 BivinsInstructing the enrolling clerk of the house to make corrections in HB 337.

THE SENATE HAS CONCURRED IN HOUSE AMENDMENTS TO THEFOLLOWING MEASURES:

SB 197 (viva-voce vote)




SB 1793 (30 YEAS, 0 NAYS)


THE SENATE HAS REFUSED TO CONCUR IN HOUSE AMENDMENTSTO THE FOLLOWING MEASURES AND REQUESTS THEAPPOINTMENT OF A CONFERENCE COMMITTEE TO ADJUST THEDIFFERENCES BETWEEN THE TWO HOUSES:SB 875Senate Conferees: Shapiro - Chair/Cain/Duncan/Harris/Whitmire/


THE SENATE HAS GRANTED THE REQUEST OF THE HOUSE FOR THEAPPOINTMENT OF A CONFERENCE COMMITTEE ON THEFOLLOWING MEASURES:

HB 1880Senate Conferees: Truan - Chair/Ratliff/Shapleigh/Sibley/Zaffirini/

THE SENATE HAS ADOPTED THE FOLLOWING CONFERENCECOMMITTEE REPORTS:

HB 1975 (viva-voce vote)


Respectfully,

Betty KingSecretary of the Senate

Message No. 2

MESSAGE FROM THE SENATESENATE CHAMBER

Austin, TexasThursday, May 22, 1997 - 2


Mr. Speaker:


THE SENATE HAS PASSED THE FOLLOWING MEASURES:

HB 110 Giddings SPONSOR: WestRelating to land acquired by a taxing unit through foreclosure of a lien.

HB 130 Pitts SPONSOR: CainRelating to the authority of the commissioners court of a county to alter speedlimits on county roads.(AMENDED)

HB 349 Hamric SPONSOR: ShapiroRelating to coverage under certain health benefit plans for care after theperformance of a mastectomy and certain related procedures.(AMENDED)

HB 819 Cuellar SPONSOR: EllisRelating to reducing the recidivism rate for individuals under the supervisionof the Texas Department of Criminal Justice.(AMENDED)

HB 1173 Coleman SPONSOR: EllisRelating to coverage by certain health benefit plans for certain serious mentalillnesses.(COMMITTEE SUBSTITUTE/AMENDED)


HB 1333 Hochberg SPONSOR: EllisRelating to the punishment for an offense motivated by bias or prejudice.

HB 1498 Wise SPONSOR: Lucio, Jr.Relating to motor vehicle insurance rates for certain individuals with gooddriving records who are members of youth groups.

HB 1708 Lewis, Glenn SPONSOR: Lucio, Jr.Relating to assignment of certain premium tax credits.

HB 1734 Delisi SPONSOR: MoncriefRelating to the monitoring of community mental health and mental retardationcenters and local mental health and mental retardation authorities.(AMENDED)

HB 1759 Hirschi SPONSOR: BrownRelating to the pesticide use and application program.

HB 1961 Howard SPONSOR: ArmbristerRelating to the transfer of certain state property from the Texas Department ofTransportation to certain governmental entities.(AMENDED)

HB 2339 Talton SPONSOR: BrownRelating to the extension of restrictions imposing regular assessments in certainresidential real estate subdivisions.(AMENDED)

HB 2693 Serna SPONSOR: ShapleighRelating to the development of information to identify missing persons.

HB 2825 Place SPONSOR: PattersonRelating to the use of inmate and probationer labor for state highway systemprojects.

HB 2829 Place SPONSOR: ShapleighRelating to the disposition of restitution payments made to victims of crime.

HB 3139 Brimer SPONSOR: RatliffRelating to confidentiality of certain workers' compensation information.(AMENDED)

HB 3263 Dutton SPONSOR: Gallegos, Jr.Relating to the sale of tax foreclosed property.(COMMITTEE SUBSTITUTE/AMENDED)

HB 3428 Naishtat SPONSOR: MoncriefRelating to financial assistance and related services for victims of familyviolence.(AMENDED)

HCR 137 Chavez SPONSOR: ShapleighMemorializing Congress to create a NAFTA Trade Impact Fund.

SB 1019 OgdenRelating to the school district ad valorem tax rate.




Respectfully,


Message No. 3




Mr. Speaker:



HB 219 Brimer SPONSOR: PattersonRelating to the licensing of agents for health maintenance organizations.

HB 253 Denny SPONSOR: WentworthRelating to granting limited state law enforcement authority to certain agentsor officers of the United States government.(COMMITTEE SUBSTITUTE)

HB 254 Denny SPONSOR: NelsonRelating to allowing the placement of directional signs for small businessesalong certain highways.

HB 583 Maxey SPONSOR: BarrientosRelating to public education, including the parental involvement division of theTexas Education Agency, waivers by school campuses and districts, publicschool campus report cards, liability of school districts, and the use of certainpublic school funds.(COMMITTEE SUBSTITUTE/AMENDED)

HB 1168 Greenberg SPONSOR: SibleyRelating to the Texas Manufacturing Institute.(COMMITTEE SUBSTITUTE)

HB 1611 Turner, Bob SPONSOR: ShapiroRelating to the testing of natural gas piping systems in school district facilities.(COMMITTEE SUBSTITUTE/AMENDED)

HB 1662 Counts SPONSOR: SibleyRelating to rates for certain lines of insurance.(AMENDED)


HB 1886 Oliveira SPONSOR: Lucio, Jr.Relating to certain juror donations.(AMENDED)

HB 1914 Wise SPONSOR: Lucio, Jr.Relating to the powers and duties of the Children's Trust Fund of TexasCouncil.

HB 1968 Garcia SPONSOR: CaronaRelating to punishing as contempt the violation of a condition of a peace bond.

HB 2033 Gray SPONSOR: SibleyRelating to coverage for services provided through telemedicine under certainhealth benefit plans.(COMMITTEE SUBSTITUTE)

HB 2261 Thompson SPONSOR: LindsayRelating to providing the court with certain information regarding a party in acivil action.(AMENDED)

HB 2272 Thompson SPONSOR: ArmbristerRelating to certain court costs a person convicted of certain offenses is requiredto pay.(AMENDED)

HB 2328 Turner, Sylvester SPONSOR: LindsayRelating to an exception to the open meetings law for certain deliberations ofthe board of a hospital district.

HB 2396 Finnell SPONSOR: PattersonRelating to the prevention of horse theft.

HB 2503 Garcia SPONSOR: Gallegos, Jr.Relating to certain solicitations made in relation to insured fire losses; providinga penalty.(AMENDED)

HB 2517 Dunnam SPONSOR: ShapleighRelating to the audit of public junior college districts.(COMMITTEE SUBSTITUTE)

HB 2561 Gallego SPONSOR: MoncriefRelating to the administration of the Sexual Assault Prevention and CrisisService.(COMMITTEE SUBSTITUTE)

HB 2626 Delisi SPONSOR: MoncriefRelating to the creation of a statewide preceptorship program in public healthsettings.(AMENDED)

HB 2681 Hawley SPONSOR: LindsayRelating to the issuance of specially designed Texas license plates for KeepTexas Beautiful.(AMENDED)


HB 2768 Goolsby SPONSOR: CaronaRelating to records of the Texas Lottery Commission that are open for publicinspection.

HB 2874 Goodman SPONSOR: WhitmireRelating to the collection and disposal of information pertaining to a criminalcombination.(AMENDED)

HB 2880 Carter SPONSOR: FraserRelating to certain activities allowed during the suspension of a license issuedunder the Private Investigators and Private Security Agencies Act.

HB 3054 Berlanga SPONSOR: ZaffiriniRelating to the creation of an immunization registry and to reportingrequirements concerning immunizations; providing a criminal penalty.(AMENDED)

HB 3125 Davila SPONSOR: BarrientosRelating to student participation in the selection or retention of food serviceproviders at institutions of higher education.

HB 3202 Counts SPONSOR: DuncanRelating to rate administration of workers' compensation insurance policies.

HB 3203 Counts SPONSOR: DuncanRelating to the disposition of unclaimed funds by nonprofit cooperativecorporations.(AMENDED)

HB 3278 Counts SPONSOR: PattersonRelating to designating the Texas National Guard Counterdrug Support Programas a law enforcement agency in certain circumstances.(COMMITTEE SUBSTITUTE)

HB 3279 Counts SPONSOR: DuncanRelating to charges for access to Texas Workers' Compensation Commissioninformation.(AMENDED)

HB 3329 Talton SPONSOR: PattersonRelating to requirements for governmental entities that acquire real propertyheld in trust or sell real property to a trustee.

HB 3372 Torres SPONSOR: Gallegos, Jr.Relating to the authority of certain municipalities to redesignate certain areasannexed for general purposes.

HB 3522 Rhodes SPONSOR: RatliffRelating to the administration and enforcement of the workers' compensationlaw; providing penalties.(AMENDED)


HCR 240 Davis SPONSOR: CaronaHonoring E. James Bowles for his many years of service with the AmericanAssociation of Retired Persons.

HCR 241 Davis SPONSOR: CaronaHonoring Leo L. Baker for his service to senior citizens.

HCR 243 Ramsay SPONSOR: RatliffIn memory of Robert W. Wright.

HCR 276 Patterson, L.P. "Pete" SPONSOR: RatliffDesignating May 20, 1997, Think Child Safety Day at the Capitol.

Respectfully,


Message No. 4




Mr. Speaker:



HB 2062 Van de Putte SPONSOR: HarrisRelating to rate proceedings before the commissioner of insurance.(AMENDED)

SB 1136 WentworthRelating to the authority of a political subdivision to prepare and implement aregional habitat conservation plan or habitat conservation plan or to enter intoa conservation agreement.




THE SENATE HAS GRANTED THE REQUEST OF THE HOUSE FOR THEAPPOINTMENT OF A CONFERENCE COMMITTEE ON THEFOLLOWING MEASURES:

HB 2798Senate Conferees: Carona - Chair/Ratliff/Shapiro/Sibley/Zaffirini/


HB 2918Senate Conferees: Whitmire - Chair/Duncan/Patterson, Jerry/Shapiro/Shapleigh/

THE SENATE HAS ADOPTED THE FOLLOWING CONFERENCECOMMITTEE REPORTS:

HB 1836 (viva-voce vote)

Respectfully,


Message No. 5




Mr. Speaker:



LOCAL AND UNCONTESTED CALENDAR

HB 10 Brimer SPONSOR: ArmbristerRelating to a nonsubstantive revision of statutes relating to financial institutions,financial businesses, and credit, including conforming amendments, repeals, andpenalties.(AMENDED)

HB 308 Goodman SPONSOR: WentworthRelating to the authority to issue protective orders.

HB 312 Place SPONSOR: WhitmireRelating to the offense of tampering with a witness.

HB 479 Craddick SPONSOR: LindsayRelating to the exemption from ad valorem taxation of marine cargo containersused exclusively in international commerce.

HB 561 Hochberg SPONSOR: ZaffiriniRelating to the exchange of information between certain health care regulatoryagencies.

HB 658 Burnam SPONSOR: MoncriefRelating to the county of residence of certain persons released on parole or tomandatory supervision after serving sentences for sexual offenses.(AMENDED)


HB 784 Gallego SPONSOR: EllisRelating to the hearing of oral argument by appellate courts.

HB 1012 Counts SPONSOR: DuncanRelating to the appointment of an environmental health officer in a home-rulemunicipality.

HB 1243 Holzheauser SPONSOR: CainRelating to energy savings projects for local governments.

HB 1336 Wise SPONSOR: ZaffiriniRelating to the emergency protection of children and to the issuance of alegislative continuance in an action for a protective order.

HB 1484 Patterson, L.P. "Pete" SPONSOR: CainRelating to the creation, administration, powers, duties, operation, and financingof the Gober Municipal Utility District.

HB 1534 Hamric SPONSOR: ZaffiriniRelating to the certification of mammography systems.

HB 1881 Oakley SPONSOR: MadlaRelating to initial training and continuing education for police chiefs.

HB 1974 McCall SPONSOR: ShapiroRelating to the payment of a supplemental salary to the district judges in CollinCounty and validation of certain prior acts of the commissioners court.

HB 2145 Solis SPONSOR: LunaRelating to removal of certain persons from the pool of prospective jurors.

HB 2156 Solis SPONSOR: LunaRelating to counties contracting for the combination of lists for a jury pool.

HB 2192 Rangel SPONSOR: ZaffiriniRelating to the establishment of a physician recruitment program for medicallyunderserved areas.

HB 2389 Maxey SPONSOR: ZaffiriniRelating to the sale of laboratory services to certain persons by the TexasDepartment of Health.

HB 2448 Hightower SPONSOR: NixonRelating to the creation, administration, powers, duties, operation, and financingof the Lake Livingston Special Utility District; granting the authority to issuebonds.

HB 2451 Hirschi SPONSOR: NixonRelating to the authority of the Department of Protective and RegulatoryServices to obtain certain criminal history record information from theDepartment of Public Safety.

HB 2526 Williams SPONSOR: OgdenRelating to the duties of an attorney ad litem in a suit affecting the parent-childrelationship.


HB 2531 Gutierrez SPONSOR: EllisRelating to the civil liability of certain persons for a child's conduct.

HB 2563 Cook SPONSOR: DuncanRelating to limiting the time within which certain water districts are requiredto hold confirmation elections.

HB 2596 King SPONSOR: ZaffiriniRelating to the Texas Information and Referral Network providing informationon health and human services.

HB 2673 Janek SPONSOR: ZaffiriniRelating to the disclosure of health care information by certain providers ofhealth care.

HB 2685 Van de Putte SPONSOR: NelsonRelating to certain prohibited activities in the food stamp program.

HB 2688 Cook SPONSOR: Lucio, Jr.Pertaining to the execution of documents on behalf of certain water districts.

HB 2689 Cook SPONSOR: Lucio, Jr.Relating to estimates of, and delinquent assessments for, maintenance andoperating expenses in certain water districts.

HB 2841 Stiles SPONSOR: SibleyRelating to conforming the statutes to reflect the abolishment of the office ofstate treasurer.

HB 2920 Hodge SPONSOR: WestRelating to the operation of museums and historic sites in certain counties bynonprofit organizations.

HB 3012 McReynolds SPONSOR: HarrisRelating to standard possession orders in suits affecting the parent-childrelationship.(AMENDED)

HB 3101 Jones, Jesse SPONSOR: CaronaRelating to reimbursement of the Texas Department of Human Services froman inmate's trust fund.

HB 3135 Naishtat SPONSOR: MoncriefRelating to the application for mental retardation services by a guardian andto eligibility for guardianship.

HB 3233 Allen SPONSOR: WestRelating to the regulation and training of code enforcement officers.

HB 3246 Gallego SPONSOR: MadlaRelating to designation of Spur 239 in Val Verde County.

HB 3314 Hightower SPONSOR: NixonRelating to the conversion of Polk County Fresh Water Supply District No. 2into a municipal utility district and confirming the boundaries and directors ofthe district.


HB 3380 Counts SPONSOR: Lucio, Jr.Relating to the adoption of the National Guard Mutual Assistance Counter-drugActivities Compact.

HB 3541 Gray SPONSOR: PattersonRelating to the statutory probate court of Galveston County.

HB 3542 Driver SPONSOR: CaronaRelating to the creation of municipal courts of record for the City of Rowlett.

HB 3549 Lewis, Ron SPONSOR: NixonRelating to the creation, administration, powers, duties, functions, operations,and financing of the South Newton Special Utility District.

HCR 21 Siebert SPONSOR: WentworthDeclaring rodeo the official sport of Texas.(AMENDED)

HCR 145 Davila SPONSOR: SibleyDirecting the Texas Department of Health to conduct a study of fluoridatedpublic water supplies.

HCR 189 Berlanga SPONSOR: ZaffiriniDirecting the Health and Human Services Commission to improve access tohealthcare for children.

Respectfully,


————————————————

APPENDIX——————————————

STANDING COMMITTEE REPORTS

Favorable reports have been filed by committees as follows:

May 21

Civil Practices - SB 220

County Affairs - SB 1395

Economic Development - SB 747, SB 1491

Human Services - SB 61, SB 115, SB 116, SB 239

Licensing & Administrative Procedures - SB 229, SB 577

Natural Resources - SB 28

Public Education - SB 583, SB 598, SB 1653, SB 1918, SB 1919

Public Health - HCR 279, SB 257

Public Safety - HCR 278, SB 322


State Recreational Resources - SB 1124

State, Federal & International Relations - SB 984, SB 1766

ENROLLED

May 21 - HB 107, HB 131, HB 422, HB 564, HB 625, HB 979, HB 1052,HB 1055, HB 1091, HB 1200, HB 1209, HB 1216, HB 1279, HB 1280,HB 1345, HB 1521, HB 1865, HB 2029, HB 2254, HB 2353, HB 2519,HB 2618, HB 2683, HB 2877, HB 3031, HB 3250, HB 3366, HB 3367,HB 3448, HB 3492, HB 3585, HCR 248, HCR 259

SENT TO THE GOVERNOR

May 21 - HB 3, HB 107, HB 131, HB 212, HB 213, HB 606, HB 909,HB 979, HB 996, HB 1052, HB 1055, HB 1091, HB 1128, HB 1200, HB 1216,HB 1254, HB 1257, HB 1279, HB 1280, HB 1345, HB 1428, HB 1460,HB 1521, HB 1576, HB 1673, HB 1761, HB 1826, HB 2105, HB 2119,HB 2183, HB 2254, HB 2353, HB 2519, HB 2666, HB 2683, HB 2702,HB 2877, HB 2933, HB 3366, HB 3443, HB 3579, HB 3585, HB 3594,HCR 248, HCR 259, HCR 273

SIGNED BY THE GOVERNOR

May 21 - HB 16, HB 35, HB 101, HB 197, HB 320, HB 324, HB 327,HB 384, HB 485, HB 501, HB 581, HB 627, HB 641, HB 646, HB 699,HB 736, HB 791, HB 922, HB 956, HB 971, HB 1025, HB 1050,HB 1185, HB 1299, HB 1312, HB 1532, HB 1545, HB 1773, HB 1901,HB 1902, HB 1989, HB 1999, HB 2003, HB 2015, HB 2170, HB 2193,HB 2201, HB 3134, HB 3356, HB 3459


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Documents

HOUSE JOURNALThursday, May 22, 1997 HOUSE JOURNAL — 79th Day 3125 HOUSE JOURNAL SEVENTY-FIFTH LEGISLATURE, REGULAR SESSION PROCEEDINGS SEVENTY-NINTH DAY — THURSDAY, MAY 22, 1997