HOUSE JOURNAL

SEVENTY-EIGHTH LEGISLATURE, REGULAR SESSION

PROCEEDINGS

EIGHTY-FOURTH DAY — SUNDAY, JUNE 1, 2003

The house met at 9 a.m. and, at the request of the speaker, was called to order by Representative Truitt.

The roll of the house was called and a quorum was announced present (Recordi897).

Present — Mr. Speaker; Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

The invocation was offered by Representative Chisum, as follows:

Our great and sovereign God, we thank you that you have promised that wherever two or three are gathered in your name, you will be in their midst.

We thank you that your mercies are new every morning and that you are faithful to guide those who are willing to follow.

We thank you that your grace is extended to each of us to accomplish things with you that we cannot accomplish on our own.

And we thank you for your forgiveness, enabling us to overcome our foibles and flaws and start anew.

And we ask today that you would help us to see you in every situation we are in, in every decision that we make, so that at the end of the day, we can hear you say, "Well done my faithful servant, enter into the joy of the Lord." Amen.

CAPITOL PHYSICIAN

The chair recognized Representative Delisi who presented Dr. Troy Fiesinger of Waco as the "Doctor for the Day."

The house welcomed Dr. Fiesinger and thanked him for his participation in the Physician of the Day Program sponsored by the Texas Academy of Family Physicians.

HR 1657 - ADOPTED
(by Menendez)

Representative Menendez moved to suspend all necessary rules to take up and consider at this time HRi1657.

The motion prevailed without objection.

The following resolution was laid before the house:

HR 1657, In memory of Private First Class Anthony Scott "Scotty" Miller of San Antonio.

HR 1657 was read and was unanimously adopted by a rising vote.

On motion of Representative Chisum, the names of all the members of the house were added to HRi1657 as signers thereof.

INTRODUCTION OF GUESTS

The chair recognized Representative Menendez who introduced the family of Private First Class Anthony Scott "Scotty" Miller.

MESSAGE FROM THE SENATE

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

HR 1852 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1852, suspending the limitations on the conferees for HBi1365.

HR 1804 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1804, suspending the limitations on the conferees for SBi1936.

HR 1850 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1850, suspending the limitations on the conferees for HBi3442.

HR 1851 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1851, suspending the limitations on the conferees for SBi86.

5584 78th LEGISLATURE — REGULAR SESSION

HR 1803 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1803, suspending the limitations on the conferees for HBi3184.

HR 1848 - ADOPTED
(by Quintanilla)

Representative Quintanilla moved to suspend all necessary rules to take up and consider at this time HRi1848.

The motion prevailed without objection.

The following resolution was laid before the house:

HR 1848, Honoring Alex Ramos of Mountain View High School on his track and field accomplishments.

HR 1848 was adopted without objection.

HR 1849 - ADOPTED
(by Quintanilla)

Representative Quintanilla moved to suspend all necessary rules to take up and consider at this time HRi1849.

The motion prevailed without objection.

The following resolution was laid before the house:

HR 1849, Congratulating Ashley Quintanilla of El Paso on her receipt of a Serna Star Award.

HR 1849 was adopted without objection.

HR 1853 - ADOPTED
(by Quintanilla)

Representative Quintanilla moved to suspend all necessary rules to take up and consider at this time HRi1853.

The motion prevailed without objection.

The following resolution was laid before the house:

HR 1853, Congratulating Jose Serna for his nomination to the Senior Citizens Hall of Fame.

HR 1853 was adopted without objection.

HR 1854 - ADOPTED
(by Quintanilla)

Representative Quintanilla moved to suspend all necessary rules to take up and consider at this time HRi1854.

The motion prevailed without objection.

The following resolution was laid before the house:

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5585

HR 1854, Congratulating Dave McKinney on being selected as El Paso Times 2003 Boys' Track and Field Coach of the Year.

HR 1854 was adopted without objection.

SBi1639 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hope submitted the conference committee report on SBi1639.

SBi1639 - POINT OF ORDER

Representative Burnam raised a point of order against further consideration of the conference committee report on SBi1639 under Rule 11, Sections 2 and 3 of the House Rules on the grounds that the conference committee report contains amendments that are not germane to the original bill.

The chair overruled the point of order.

SBi1639 - POINT OF ORDER

Representative Burnam raised a point of order against further consideration of the conference committee report on SBi1639 under Rule 8, Section 3 of the House Rules and Article III, Section 35(a) of the Texas Constitution on the grounds that the conference committee report gives SBi1639 more than one subject.

The chair overruled the point of order, speaking as follows:

Representative Burnam raises a point of order against further consideration of the Conference Committee Report on SBi1639 under Article III, Section 35 of the Texas Constitution and Rule 8, Section 3 of the House Rules, in that the bill contains more than one subject.

The bill includes provisions regulating spacing and production of groundwater as well as provisions relating to the control of instream flows of surface water. Mr. Burnam argues that these are considered two different subjects under current Texas law and cannot properly be considered in the same bill under the Texas Constitution and the rules of the house, which restate the constitutional rule.

As stated in a ruling of May 22, 1999: In considering the constitutionality of laws, courts are under a duty to give a constitutional construction if possible...The standard for finding a violation of the one-subject rule is very high; courts typically find violations of the one-subject rule only when there is no conceivable single subject that describes all the elements of the bill. (76 H.J. 2912 (1999))

The chair has reviewed all house rulings on this issue over the last 30 years and failed to find a single instance in which such a point of order was sustained, a likely result of the very high standard for finding a violation of the rule.

The chair believes that SBi1639 can be construed in a constitutional manner in that each element relates to the regulation of the waters of the state and would be so construed by a court. Accordingly, the point of order is respectfully overruled.

5586 78th LEGISLATURE — REGULAR SESSION

Representative Hope moved to adopt the conference committee report on SBi1639.

A record vote was requested.

The motion prevailed by (Record 898): 131 Yeas, 8 Nays, 2 Present, not voting.

Yeas — Allen; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Callegari; Campbell; Capelo; Casteel; Chisum; Christian; Cook, B.; Cook, R.; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Morrison; Mowery; Nixon; Noriega; Oliveira; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Ritter; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Turner; Uresti; Van Arsdale; West; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

Nays — Alonzo; Burnam; Escobar; Moreno, P.; Naishtat; Olivo; Rodriguez; Villarreal.

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

Absent — Canales; Castro; Chavez; Coleman; Corte; Mabry; Moreno, J.; Riddle; Wilson.

MESSAGE FROM THE SENATE

A message from the senate was received at this time (see the addendum to the daily journal, Messages from the Senate, Message No. 2).

HB 1566 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Telford submitted the following conference committee report on HB 1566 :

Austin, Texas, May 29, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi1566 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5587

HB 1566, A bill to be entitled An Act relating to lower-division and upper-division courses offered by Texas A&M University-Texarkana.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSections 87.571(a), (b), and (c), Education Code, are amended to read as follows:

(a)iiTexas A&M University-Texarkana is a coeducational [upper-level] institution of higher education located in the City of Texarkana. The university is a component of The Texas A&M University System and is under the management and control of the board of regents of The Texas A&M University System.

(b)iiThe board has the same powers and duties concerning the university as are conferred on the board by law concerning Texas A&M University. The[, except that the] university may [not] offer lower-division courses, but is not required to do so in any academic year for which the legislature does not appropriate money specifically for that purpose [freshman or sophomore programs].

(c)iiThe university may offer lower-division courses on the campus of Texarkana College or in a permanent building located on property acquired by the university for a permanently relocated campus. The university may not offer lower-division courses on the campus of Texarkana College without prior approval from Texarkana College [The university may enter into a partnership agreement with the Texarkana College District in the manner authorized by Subchapter N, Chapter 51].

SECTIONi2.iiThis Act takes effect September 1, 2003.

Representative Telford moved to adopt the conference committee report on HBi1566.

The motion prevailed.

HB 1695 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Denny submitted the following conference committee report on HB 1695 :

Austin, Texas, May 30, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

5588 78th LEGISLATURE — REGULAR SESSION

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi1695 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 1695, A bill to be entitled An Act relating to certain election processes and procedures.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.ii Section 1.006, Election Code, is amended to read as follows:

Sec.i1.006.iiEFFECT OF WEEKEND OR HOLIDAY. (a) If the last day for performance of an act is a Saturday, Sunday, or legal state or national holiday, the act is timely if performed on the next regular business day, except as otherwise provided by this code.

(b)iiIf the last day for performance of an act is extended under Subsection (a), the extended date is used to determine any other dates and deadlines, and the dates or times of any related procedures, that are expressly required to be made on a date or at a time determined in relation to the last day for performance of the act.

(c)iiA declaration of ineligibility of a candidate is considered to be the performance of an act under this section for purposes of causing the candidate's name to be omitted from the ballot.

(d)iiThe filing of a document, including a withdrawal request or resignation, is considered to be the performance of an act under this section for purposes of creating a vacancy to be filled at a subsequent election.

(e)iiThe death of a person is not considered to be the performance of an act under this section.

SECTIONi2.ii Section 2.025, Election Code, is amended to read as follows:

Sec.i2.025.iiRUNOFF ELECTION DAY. (a) Except as otherwise provided by this code [Subsection (b)], a runoff election shall be held not earlier than the 20th or later than the 45th [30th] day after the date the final canvass of the main election is completed.

(b)iiA runoff election date later than [may be held after] the period prescribed by Subsection (a) may be prescribed by a home-rule city charter [law but not later than the 45th day after the date the final canvass of the main election is completed only to:

[(1)iipermit a joint runoff election to be held with another political subdivision in accordance with Chapter 271; or

[(2)iiavoid holding the runoff on:

[(A)iia legal state or national holiday; or

[(B)iia weekend day within three days of a legal state or national holiday].

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(c)iiThis section [Subsection (b)] supersedes a law outside this subchapter to the extent of a conflict notwithstanding Section 2.022.

SECTIONi3.ii Section 13.072(c), Election Code, is amended to read as follows:

(c)iiExcept as provided by Subsection (d) [or (e)], if the registrar determines that an application does not comply with Section 13.002 or does not indicate that the applicant is eligible for registration, the registrar shall reject the application.

SECTIONi4.iiSection 13.073, Election Code, is amended by adding Subsection (c) to read as follows:

(c)iiIf the registrar rejects an application for incompleteness but receives a completed application not later than the 10th day after the date the notice is delivered under Subsection (a) or the date the incomplete application is returned under Subsection (b), as applicable, the original date of submission of the incomplete application is considered to be the date of submission to the registrar for the purpose of determining the effective date of registration.

SECTIONi5.ii Section 15.025, Election Code, is amended to read as follows:

Sec.i15.025.iiEFFECTIVE DATE OF CERTAIN CHANGES IN REGISTRATION INFORMATION [IN PRECINCT OF NEW RESIDENCE]. (a) Except as provided by Subsections (b) and (d), the [The] registration of a voter described by this subsection whose information [residence] is changed on the registration records [to another county election precinct in the same county] becomes effective as to the change [in the precinct of new residence] on the 30th day after:

(1)iithe date the voter submits to the registrar [receives] a notice of a change in registration information under Section 15.021 or a [voter's] response under Section 15.053, indicating the change [of residence]; or

(2)iithe date the voter submits a statement of residence to an election officer under Section 63.0011 or a registration application or change of address to an agency employee under Chapter 20, indicating the change [of residence].

(b)iiA change in registration information covered by this section is effective for purposes of early voting if it will be effective on election day.

(c)iiFor purposes of determining the effective date of a change in registration information covered by this section, a document submitted by mail is considered to be submitted to the registrar on the date it is placed with postage prepaid and properly addressed in the United States mail. The date indicated by the post office cancellation mark is considered to be the date the document was placed in the mail unless proven otherwise.

(d)iiIf the 30th day before the date of an election is a Saturday, Sunday, or legal state or national holiday, the document is considered to be timely if it is submitted to the registrar on or before the next regular business day.

SECTIONi6.ii Sections 16.033(c) and (d), Election Code, are amended to read as follows:

(c)iiThe notice must include:

(1)iia request for information relevant to determining the voter's eligibility for registration; and

5590 78th LEGISLATURE — REGULAR SESSION

(2)iia warning that the voter's registration is subject to cancellation if the registrar does not receive an appropriate reply on or before the 30th [60th] day after the date the notice is mailed.

(d)iiExcept as provided by Subsection (e), the registrar shall cancel a voter's registration if:

(1)iiafter considering the voter's reply, the registrar determines that the voter is not eligible for registration;

(2)iino reply is received from the voter on or before the 30th [60th] day after the date the notice is mailed to the voter under Subsection (b); or

(3)iieach notice mailed under Subsection (b) is returned undelivered to the registrar with no forwarding information available.

SECTIONi7.ii Sections 16.0332(a) and (b), Election Code, are amended to read as follows:

(a)iiAfter the registrar receives a list under Section 62.113, Government Code, of persons excused or disqualified from jury service because of citizenship status, the registrar shall deliver to each registered voter whose name [who] appears on the list a written notice requiring the voter to submit to the registrar [provide] proof of United States citizenship in the form of a certified copy of the voter's birth certificate, United States passport, or certificate of naturalization or any other [a] form prescribed by the secretary of state. The notice shall be delivered by forwardable mail to the mailing address on the voter's registration application and to any new address of the voter known to the registrar.

(b)iiIf a voter fails to submit to [provide] the registrar [with] proof of citizenship on or before the 30th [31st] day after the date the notice is mailed [to the voter], the registrar shall cancel the voter's registration.

SECTIONi8.ii Section 16.036(a), Election Code, is amended to read as follows:

(a)iiImmediately after cancellation of a voter's registration under Section 16.031(a)(3), 16.033, [or] 16.0331, or 16.0332, the registrar shall deliver written notice of the cancellation to the voter.

SECTIONi9.iiSection 19.001(a), Election Code, is amended to read as follows:

(a)iiBefore May 15 of each year, the registrar shall prepare and submit to the comptroller of public accounts a statement containing:

(1)iithe total number of initial registrations for the previous voting year;

(2)iithe total number of registrations canceled under Sections 16.031(a)(1), [and] 16.033, and 16.0332 for the previous voting year; and

(3)iithe total number of registrations for which information was updated for the previous voting year.

SECTIONi10.iiSection 19.004, Election Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows:

(a)iiExcept as provided by Subsection (d), state [State] funds disbursed under this chapter may be used only to defray expenses of the registrar's office in connection with voter registration, including additional expenses related to:

(1)iiimplementation of the National Voter Registration Act of 1993 (42 U.S.C. Section 1973gg et seq.); and

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(2)iicomplying with the weekly updating requirements prescribed by Section 18.063.

(d)iiIf the secretary of state determines that federal matching funds are available under the federal Help America Vote Act of 2002, the secretary of state shall certify to the comptroller the amount of state funds required to qualify for the maximum amount of federal matching funds. On receipt of the certification, the comptroller shall deposit from funds otherwise available under this chapter an amount equal to the certified amount in the election improvement fund established under Section 31.011.

SECTIONi11.iiSection 32.091, Election Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a)iiExcept as provided by Subsection (c), an [An] election judge or clerk is entitled to compensation for services rendered at a precinct polling place at an hourly rate not to exceed the amount fixed by the appropriate authority, which amount must be at least the federal minimum hourly wage. A judge or clerk may be compensated at that rate for services rendered under Section 62.014(c).

(c)iiFor a primary or runoff primary election, the minimum hourly rate is the greater of the maximum rate provided by Subsection (a) or, if the election officer attended a training program as provided by Subchapter F, $7.

SECTIONi12.iiSection 32.111, Election Code, is amended to read as follows:

Sec.i32.111.iiTRAINING STANDARDS FOR ELECTION JUDGES. (a) The secretary of state shall [governing body of a political subdivision that holds elections or the county executive committee of a political party that holds primary elections may]:

(1)iiadopt [minimum] standards of training in election law and procedure for presiding or alternate election judges [serving in its elections]; [and]

(2)iidevelop materials for a standardized curriculum for that training; and

(3)iidistribute the materials as necessary to the governing bodies of political subdivisions that hold elections and to each county executive committee of a political party that holds a primary election [require that a person meet those standards before appointment or service as a judge].

(b)iiThe [Minimum] training standards may include required attendance at appropriate training programs or the passage of an examination at the end of a training program.

SECTIONi13.iiSection 32.112, Election Code, is amended to read as follows:

Sec.i32.112.iiEXPENSE OF TRAINING JUDGES. The governing body of a political subdivision may appropriate funds to:

(1)iicompensate its election judges, early voting clerk, and deputy early voting clerks in charge of early voting polling places for attending a training program required under Section 32.111 [programs], at an hourly rate not to

5592 78th LEGISLATURE — REGULAR SESSION

(2)iipay the expenses of conducting the programs.

SECTIONi14.iiSections 32.113(a) and (b), Election Code, are amended to read as follows:

(a)iiThe governing body of a political subdivision other than a county may, and the county executive committee of a political party shall, provide training [programs] for its election officers using the standardized training program and materials developed and provided by the secretary of state under Section 32.111.

(b)iiA political subdivision or county executive committee may conduct its training [programs] independently or jointly with other entities.

SECTIONi15.iiSection 32.114, Election Code, is amended by amending Subsection (a) and adding Subsection (e) to read as follows:

(a)iiThe county clerk shall provide one or more sessions of [a] training using the standardized training program and materials developed and provided by the secretary of state under Section 32.111 [program] for the election judges and clerks appointed to serve in elections ordered by the governor or a county authority. Each election judge shall complete the training program.

(e)iiAn election judge, early voting clerk, or deputy early voting clerk in charge of an early voting polling place is entitled to compensation for attending the training program at an hourly rate not to exceed $7.

SECTIONi16.iiSections 41.001(a) and (b), Election Code, are amended to read as follows:

(a)iiExcept as otherwise provided by this subchapter, each general or special election in this state shall be held on one of the following dates:

(1)ii[the first Saturday in February;

[(2)]iithe first Saturday in May;

[(3)iithe second Saturday in September;] or

(2)i[(4)]iithe first Tuesday after the first Monday in November.

(b)iiSubsection (a) does not apply to:

(1)iia runoff election;

(2)ii[an election for the issuance or assumption of bonds for any purpose authorized by law relating to public schools or colleges or the levy of a tax for the maintenance of a public school or college, if the governing body of the political subdivision having jurisdiction of the public school or college issuing or assuming the bonds or levying the tax:

[(A)iiby resolution, order, or ordinance, finds that holding the election on a date other than a uniform election date is in the public interest, which finding is conclusive and incontestable; and

[(B)iithe election is the only election of the type described by this subdivision held by that political subdivision on a date other than a uniform election date during the state fiscal biennium;

[(3)]iian election to resolve a tie vote;

(3)i[(4)]iian election held under an order of a court or other tribunal;

(4)i[(5)]iian emergency election ordered under Section 41.0011;

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(5)i[(6)]iian expedited election to fill a vacancy in the legislature held under Section 203.013; or

(6)i[(7)]iian election held under a statute that expressly provides that the requirement of Subsection (a) does not apply to the election.

SECTIONi17.iiSection 41.001(e), Election Code, is amended to read as follows:

(e)iiIn addition to a date prescribed by Subsection (a), an [An] election for an office in which a majority vote is required and that is [may not be held on the September or February uniform election date. This subsection does not apply to an election] conducted under Section 26.045, Local Government Code, may be held on the first Saturday in February or the second Saturday in September, which are considered to be dates that comply with Subsection (a) and Section 26.045, Local Government Code.

SECTIONi18.iiSection 41.007(b), Election Code, is reenacted to read as follows:

(b)iiThe runoff primary election date is the second Tuesday in April following the general primary election.

SECTIONi19.iiSection 67.003, Election Code, is amended to read as follows:

Sec.i67.003.iiTIME FOR LOCAL CANVASS. Each local canvassing authority shall convene to conduct the local canvass at the time set by the canvassing authority's presiding officer:

(1)iion the seventh day after election day for:

(A)iithe general election for state and county officers; or

(B)iian election of a political subdivision that is held jointly with an election of:

(i)iia county; or

(ii)iione or more other political subdivisions under an election services contract with the county election officer; or

(2)iinot earlier than the third day or later than the sixth day after election day for an election other than an [the general] election described by Subdivision (1) [for state and county officers].

SECTIONi20.iiSection 83.006(b), Election Code, is amended to read as follows:

(b)iiTo be eligible for appointment as early voting clerk under this section, a person must meet the requirements for eligibility for service as a presiding election judge, except that:

(1)iian appointee must be a qualified voter of the political subdivision and is not required to be a qualified voter of any other particular territory; [and]

(2)iiin an election in which an officer of the political subdivision is a candidate, an appointee's status as an employee of the political subdivision does not make the appointee ineligible for appointment as the clerk; and

(3)iian appointee who is a permanent employee of the political subdivision and a qualified voter of any territory is not required to be a qualified voter of the political subdivision.

5594 78th LEGISLATURE — REGULAR SESSION

SECTIONi21.iiSection 83.007(b), Election Code, is amended to read as follows:

(b)iiTo be eligible for appointment as early voting clerk under this section, a person must meet the requirements for eligibility for service as a presiding election judge, except that:

(1)iian [the] appointee must be a qualified voter of the territory covered by the election and is not required to be a qualified voter of any other particular territory; and

(2)iian appointee who is a permanent employee of the authority ordering the election and a qualified voter of any territory is not required to be a qualified voter of the territory covered by the election.

SECTIONi22.iiSection 83.032(b), Election Code, is amended to read as follows:

(b)iiFor a temporary deputy to be eligible for appointment as a deputy early voting clerk under this section, the temporary deputy must meet the requirements for eligibility for service as a presiding election judge, except that:

(1)iian appointee is not required to be a qualified voter of any particular territory other than the county, in the case of an appointment by a county clerk, or the city, in the case of an appointment by a city secretary; [and]

(2)iiin an election in which the early voting clerk is a candidate, an appointee's status as an employee of the clerk does not make the appointee ineligible for appointment as a deputy early voting clerk; and

(3)iian appointee who is a permanent employee of the county or city, as applicable, and a qualified voter of any territory is not required to be a qualified voter of the county or city, as applicable.

SECTIONi23.iiSection 84.032, Election Code, is amended by amending Subsection (b) and adding Subsection (e) to read as follows:

(b)iiA request must:

(1)iibe in writing and signed by the applicant;

(2)iispecify the election for which the application was made; and

(3)iiexcept as provided by Subsection (c), [or] (d), or (e), be received by the early voting clerk:

(A)iinot later than the third day before election day; and

(B)iiif an early voting ballot sent to the applicant is returned to the clerk as a marked ballot, before the marked ballot's arrival at the address on the carrier envelope.

(e)iiAn applicant may also submit a request at any time after the early voting ballot is returned to the early voting clerk as a marked ballot and before the ballot is delivered to the early voting ballot board by appearing in person and executing an affidavit that the applicant did not mark the ballot.

SECTIONi24.iiSection 85.001(c), Election Code, is amended to read as follows:

(c)iiIf the date prescribed by Subsection (a) or (b) for beginning the period is a Saturday, Sunday, or legal state holiday, the early voting period begins [:

[(1)]iion the next regular business day[; or

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[(2)iion that Saturday or Sunday if early voting is ordered to be conducted on that day under Section 85.006].

SECTIONi25.iiSection 86.003(c), Election Code, is amended to read as follows:

(c)iiThe address to which the balloting materials must be addressed is the address at which the voter is registered to vote, or the registered mailing address if different, unless the ground for voting by mail is:

(1)iiabsence from the county of residence, in which case the address must be an address outside the voter's county of residence;

(2)iiconfinement in jail, in which case the address must be the address of the jail or of a relative described by Section 84.002(a)(4); or

(3)iiage or disability and the voter is living at a hospital, nursing home or other long-term care facility, or retirement center, or with a relative described by Section 84.002(a)(3), in which case the address must be the address of that facility or relative.

SECTIONi26.iiSection 86.007(d), Election Code, is amended to read as follows:

(d)iiA marked ballot voted by mail that arrives after the time prescribed by Subsection (a) shall be counted if:

(1)iithe ballot was cast from an address outside the United States;

(2)iithe carrier envelope was placed for delivery before the time the ballot is required to arrive under Subsection (a); and

(3)iithe ballot arrives at the address on the carrier envelope not later than:

(A)iithe fifth day after the date of:

(i)iithe general election for state and county officers; or

(ii)iian election of a political subdivision that is held jointly with an election of:

(a)iia county; or

(b)iione or more political subdivisions under an election services contract with the county election officer; or

(B)iithe second day after the date of an election other than an [the general] election described by Paragraph (A) [for state and county officers].

SECTIONi27.iiSection 87.0241, Election Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows:

(b)iiThe board may not count early voting ballots until:

(1)iithe polls open on election day; or

(2)iiin an election conducted by an authority of a county with a population of 100,000 or more or conducted jointly with such a county, the end of the period for early voting by personal appearance.

(c)iiThe secretary of state shall prescribe any procedures necessary for implementing this section in regard to elections described by Subsection (b)(2).

SECTIONi28.iiSection 87.027, Election Code, is amended by amending Subsections (a), (c), (d), (i), and (j) and adding Subsection (a-1) to read as follows:

5596 78th LEGISLATURE — REGULAR SESSION

(a)iiExcept as provided by Subsection (a-1), a [A] signature verification committee may be appointed in any election. The early voting clerk is the authority responsible for determining whether a signature verification committee is to be appointed. If the clerk determines that a committee is to be appointed, the clerk shall issue a written order calling for the appointment. [Section 87.0271 supersedes this section to the extent of a conflict.]

(a-1)iiA signature verification committee shall be appointed in the general election for state and county officers on submission to the early voting clerk of a written request for the committee by at least 15 registered voters of the county. The request must be submitted not later than the preceding October 1, and a request submitted by mail is considered to be submitted at the time of its receipt by the clerk.

i(c)iiNot later than the fifth day after the date the early voting clerk issues the order calling for the appointment of a signature verification committee, or not later than October 15 for a committee required under Subsection (a-1), the appropriate authority shall appoint the members of the committee and designate one of the appointees as chair, subject to Subsection (d). The authority shall fill a vacancy on the committee by appointment as soon as possible after the vacancy occurs, subject to Subsection (d). The early voting clerk shall post notice of the name and residence address of each appointee. The notice must remain posted continuously for the period beginning the day after the date of the appointment and ending on the last day of the committee's operation in the election.

(d)iiThe early voting clerk shall determine the number of members who are to compose the signature verification committee and shall state that number in the order calling for the committee's appointment. A committee must consist of not fewer than five members. In an election [and, in elections] in which party alignment is indicated on the ballot, each county chair of a political party with a nominee or aligned candidate on the ballot shall submit to the appointing authority a list of names of persons eligible to serve on the signature verification committee. The authority shall appoint at least two persons from each list to serve as members of the committee. The same number of members must be appointed from each list. The authority shall appoint the chair of the committee from the list provided by the political party whose nominee for governor received the most votes in the county in the most recent gubernatorial general election. A vacancy on the committee shall be filled by appointment from the original list or from a new list submitted by the appropriate county chair [must be balanced as equally as possible by members of each political party required to nominate candidates by primary election].

(i)iiThe signature verification committee shall compare the signature on each carrier envelope certificate, except those signed for a voter by a witness, with the signature on the voter's ballot application to determine whether the signatures are those of the same person. The committee may also compare the signatures with the signature on the voter's registration application to confirm that the signatures are those of the same person [match] but may not use the registration application signature to determine that the signatures are not those of the same person [do not match]. A determination under this subsection that the signatures are not those of

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(j)iiIf a signature verification committee is appointed, the early voting ballot board shall follow the same procedure for accepting the early voting ballots voted by mail as in an election without a signature verification committee, except that the board may not determine whether a voter's signatures on the carrier envelope certificate and ballot application are those of the same person [match] if the committee has determined that the signatures are those of the same person [match]. If the committee has determined that the signatures are not those of the same person [do not match], the board may make a determination that the signatures are those of the same person [match] by a majority vote of the board's membership.

SECTIONi29.iiSection 87.041(b), Election Code, is amended to read as follows:

(b)iiA ballot may be accepted only if:

(1)iithe carrier envelope certificate is properly executed;

(2)iineither the voter's signature on the ballot application nor the signature on the carrier envelope certificate is determined to have been executed by a person other than the voter, unless signed by a witness;

(3)iithe voter's ballot application states a legal ground for early voting by mail;

(4)iithe voter is registered to vote, if registration is required by law;

(5)iithe address to which the ballot was mailed to the voter, as indicated by the application, was outside the voter's county of residence, if the ground for early voting is absence from the county of residence; [and]

(6)iifor a voter to whom a statement of residence form was required to be sent under Section 86.002(a), the statement of residence is returned in the carrier envelope and indicates that the voter satisfies the residence requirements prescribed by Section 63.0011; and

(7)iithe address to which the ballot was mailed to the voter is an address that is otherwise required by Sections 84.002 and 86.003.

SECTIONi30.iiSection 87.101, Election Code, is amended to read as follows:

Sec.i87.101.ii[PREPARATION OF BALLOTS;] DELIVERY OF BALLOTS TO COUNTING STATION. [(a)] On the direction of the presiding judge, the early voting ballot board[, in accordance with Section 85.032(b),] shall deliver to the central counting station [open] the container for the early voting electronic system ballots that are to be counted by automatic tabulating

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[(b)iiOn the direction of the presiding judge, the early voting ballot board may prepare the ballots for delivery to the central counting station at any time after they are received and shall deliver them] in accordance with the procedure applicable to electronic system ballots cast at a precinct polling place.

SECTIONi31.iiSection 87.1231(a), Election Code, is amended to read as follows:

[(a)]iiNot later than the time of the local canvass, the early voting clerk shall deliver to the local canvassing authority a report of the total number of early voting votes for each candidate or measure by election precinct. The report may reflect the total for votes by mail and the total for votes by personal appearance.

SECTIONi32.iiSection 87.125(a), Election Code, is amended to read as follows:

(a)iiThe early voting ballot board shall convene to count ballots voted by mail described by Section 86.007(d) at the time set by the presiding judge of the board [on]:

(1)iion the sixth day after the date of:

(A)iithe [a] general election for state and county officers; or

(B)iian election of a political subdivision that is held jointly with an election of:

(i)iia county; or

(ii)iione or more political subdivisions under an election services contract with the county election officer;

(2)iion the second [fifth] day after the date of a primary [or special] election, at a time following the last mail delivery, or on an earlier day or at an earlier time if the early voting clerk certifies that all ballots mailed from outside the United States have been received; or

(3)iinot earlier than the third day or later than the fifth day after the date of an election other than an election described by Subdivision (1) or (2).

SECTIONi33.iiSection 102.003(b), Election Code, is amended to read as follows:

(b)iiAn application may be submitted after the last day of the period for early voting by personal appearance and before 5 [2] p.m. on election day.

SECTIONi34.iiSection 104.003, Election Code, is amended to read as follows:

Sec.i104.003.iiTIME AND PLACE FOR VOTING.iiVoting under this chapter shall be conducted on election day, beginning at 7 [8] a.m. and concluding at 7 [2] p.m., at the main early voting polling place[, except that the voting shall begin at 7 a.m. and conclude at 7 p.m. in an election in which mechanical voting machines are used]. However, if the early voting ballots voted by mail are processed at a location other than the main early voting polling place, the early voting clerk may require the voting to be conducted at that location.

SECTIONi35.iiSection 112.002, Election Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows:

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(a)iiAfter changing residence to another county, a person is eligible to vote a limited ballot by personal appearance during the early voting period or by mail if:

(1)iithe person would have been eligible to vote in the county of former residence on election day if still residing in that county; and

(2)ii[the date of the election is not more than 90 days after the new residence is established; and

[(3)]iia voter registration for the person in the county of new residence is not effective on or before election day.

(c)iiBefore being accepted for voting under this chapter, the voter must execute a statement including:

(1)iia statement that the voter satisfies the applicable requirements prescribed by Subsection (a);

(2)iithe voter's residence address or, if the residence has no address, the address at which the voter receives mail and a concise description of the voter's residence;

(3)iithe month, day, and year of the voter's birth; and

(4)iithe date the statement is executed.

(d)iiA statement executed under Subsection (c) shall be submitted:

(1)iito an election officer at the main early voting polling place, if the person is voting by personal appearance; or

(2)iiwith the person's application for a ballot to be voted by mail, if the person is voting by mail.

SECTIONi36.iiSection 127.066(c), Election Code, is amended to read as follows:

(c)iiAfter the box is sealed, it shall be delivered to the central counting station by two election officers [in accordance with the procedure for delivering ballot box no. 3 to the central counting station]. The officers shall deliver the box to the presiding judge of the central counting station or to the judge's designee.

SECTIONi37.iiChapter 144, Election Code, is amended by adding Section 144.006 to read as follows:

Sec.i144.006.iiFILING DEADLINE FOR DECLARED WRITE-IN CANDIDATE. Except as otherwise provided by law, a declaration of write-in candidacy must be filed not later than 5 p.m. of the fifth day after the date an application for a place on the ballot is required to be filed in an election in which:

(1)iithe filing deadline for an application for a place on the ballot is the 45th day before election day; and

(2)iiwrite-in votes may be counted only for names appearing on a list of declared write-in candidates.

SECTIONi38.iiSection 172.024(a), Election Code, is amended to read as follows:

(a)iiThe filing fee for a candidate for nomination in the general primary election is as follows:

(1)iiUnited States senator. . . . . . . . . . . . . . . . . . . . . . . . $5,000 [$4,000]

(2)iioffice elected statewide, except United States senator. 3,750 [3,000]

(3)iiUnited States representative. . . . . . . . . . . . . . . . . . . . . 3,125 [2,500]

(4)iistate senator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250 [1,000]

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(5)iistate representative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750 [600]

(6)iimember, State Board of Education. . . . . . . . . . . . . . . . . . 300 [250]

(7)iichief justice or justice, court of appeals, other than a justice specified by Subdivision (8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,875 [1,500]

(8)iichief justice or justice of a court of appeals that serves a court of appeals district in which a county with a population of more than 850,000 is wholly or partly situated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500 [2,000]

(9)iidistrict judge or judge specified by Section 52.092(d) for which this schedule does not otherwise prescribe a fee. . . . . . . . . . . . . . . . . . . 1,500 [1,200]

(10)iidistrict or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 850,000. . . . . 2,500 [2,000]

(11)iijudge, statutory county court, other than a judge specified by Subdivision (12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 [1,200]

(12)iijudge of a statutory county court in a county with a population of more than 850,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500 [2,000]

(13)iidistrict attorney, criminal district attorney, or county attorney performing the duties of a district attorney. . . . . . . . . . . . . . . . . . . . 1,250 [1,000]

(14)iicounty commissioner, county clerk, sheriff, county tax assessor-collector, county treasurer, or judge, constitutional county court:

(A)iicounty with a population of 200,000 or more. . . 1,250 [1,000]

(B)iicounty with a population of under 200,000. . . 750 [600]

(15)iijustice of the peace or constable:

(A)iicounty with a population of 200,000 or more. . . . . 1,000 [800]

(B)iicounty with a population of under 200,000. . . . . . 375 [300]

(16)iicounty surveyor, inspector of hides and animals, or public weigher. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 [50]

(17)iioffice of the county government for which this schedule does not otherwise prescribe a fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750 [600]

SECTIONi39.iiSections 172.126(a) and (c), Election Code, are amended to read as follows:

(a)iiThe primary elections in a county may be conducted jointly at the regular polling places designated for the general election for state and county officers. The county clerk shall supervise the overall conduct of the joint primary elections. This section applies to the conduct of joint primary elections notwithstanding and in addition to other applicable provisions of this code. The decision to conduct a joint general primary election or runoff primary election, as applicable, must be made by majority vote of the full membership of the commissioners court and with the unanimous approval of the county clerk and the county chair of each political party required to nominate candidates by primary election.

(c)iiOne set of election officers shall conduct the primary elections at each polling place. Not later than the second Monday in December preceding the primary elections, each county chair shall deliver to the county clerk a list of the names of the election judges and clerks for that party. The presiding judge of each party, or alternate judge if applicable, serves as a co-judge for the precinct. If an

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SECTIONi40.iiSection 173.005(a), Election Code, is amended to read as follows:

[(a)]iiThe maximum hourly rate payable with state funds in a particular primary election year to election judges serving in a primary election for attending training programs is the same as the maximum rate prescribed by this code for [a political subdivision's] compensation for attending a training program for election judges appointed to serve in elections ordered by the governor or a county authority [of its election judges for the same activity].

SECTIONi41.ii Section 173.011(b), Election Code, is amended to read as follows:

(b)iiAny surplus remaining in a county primary fund shall be remitted to the secretary of state [county clerk] immediately after the final payment from the fund of the necessary expenses for holding the primary elections for that year, but not later than July 1 following the applicable primary election. The surplus in the primary fund shall be remitted regardless of whether state funds were requested by the chair. [Any surplus primary funds received by the county clerk under this subsection may be used only for paying the remaining expenses of the joint primary election.]

SECTIONi42.iiSection 212.001, Election Code, is amended to read as follows:

Sec.i212.001.iiGENERAL REQUIREMENTS FOR RECOUNT DOCUMENT.iiA recount document submitted under this title must:

(1)iibe in writing;

(2)iiidentify the office or measure for which a recount is desired;

(3)iistate the grounds for the recount;

(4)iistate the side of the measure that the person requesting the recount represents, if applicable;

(5)iiidentify the election precincts, grouped by county or other appropriate territorial unit if the election involves more than one local canvassing authority, for which a recount is desired and must indicate the method of voting used in each precinct;

(6)iibe signed by:

(A)iithe person requesting the recount or, if there is more than one, any one or more of them; or

(B)iian agent of the person requesting the recount;

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(7)iistate each requesting person's name, residence address, and, if authorization to obtain the recount is based on eligibility to vote in the election, voter registration number, and county of registration if the election covers territory in more than one county;

(8)iidesignate an agent who is a resident of this state to receive notice under this title on behalf of the person requesting the recount if:

(A)iithe person requesting the recount is not a resident of this state; or

(B)iithere is more than one person requesting the recount;

(9)iistate the mailing address and at least one telephone number, if any, at which the person requesting the recount or an agent, identified by name, may receive notice given under this title; [and]

(10)iistate the mailing address and at least one telephone number, if any, at which the opposing candidates for the office or their agents, identified by name, may receive notice given under this title; and

(11)iibe accompanied by a deposit as provided by Subchapter E.

SECTIONi43.iiSection 212.088(a), Election Code, is amended to read as follows:

(a)iiIf the deadline for submitting an expedited recount petition falls on a Saturday, Sunday, or legal state holiday, the deadline is extended to 10 [9] a.m. of the next regular business day.

SECTIONi44.iiSection 212.111(b), Election Code, is amended to read as follows:

(b)iiThe [Except as provided by Subsection (c), the] deposit must be in the form of cash or a cashier's check or money order made payable to the recount coordinator.

SECTIONi45.iiSection 277.002(a), Election Code, is amended to read as follows:

(a)iiFor a petition signature to be valid, a petition must:

(1)iicontain in addition to the signature:

(A)iithe signer's printed name;

(B)iithe signer's:

(i)iidate of birth and residence address; or

(ii)ii[the signer's] voter registration number and, if the territory from which signatures must be obtained is situated in more than one county, the county of registration; and

(C)ii[the signer's residence address; and

[(D)]iithe date of signing; and

(2)iicomply with any other applicable requirements prescribed by law.

SECTIONi46.iiSection 41.253(b), Education Code, is amended to read as follows:

(b)iiThe transitional board of trustees shall divide the consolidated district into nine single-member trustee districts in accordance with the procedures provided by Section 11.052. The transitional board shall order an election for the initial board of trustees to be held on the first May [February] uniform election date after the effective date of a consolidation order.

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SECTIONi47.iiSection 49.103(b), Water Code, is amended to read as follows:

(b)iiAn election shall be held on the uniform election date, established by the Election Code, in [either February or] May of each even-numbered year to elect the appropriate number of directors.

SECTIONi48.iiSection 56.804(a), Water Code, is amended to read as follows:

(a)iiThe election shall be held on a uniform election day in [February or] May.

SECTIONi49.iiSections 13.072(e), 15.026, 41.001(d), 87.0271, 87.1231(b), 145.006, 173.005(b), and 212.111(c), Election Code, are repealed.

SECTIONi50.ii(a) Notwithstanding any other enactment of the 78th Legislature, Regular Session, 2003, that amends Section 41.007(b), Election Code, including SECTION 1, HB 2496, and SECTION 16, HB 1549, the runoff primary election day remains on the second Tuesday in April following the general primary election as provided by SECTION 18 of this Act.

(b)iiNotwithstanding any other enactment of the 78th Legislature, Regular Session, 2003, that modifies Section 41.001(a), Election Code, including SECTION 14, HB 1549, the uniform election date remains on the first Saturday in May, as provided by SECTION 16 of this Act.

(c)iiSection 2.056(b), Election Code, as added by SECTION 1, HB 1344, Acts of the 78th Legislature, Regular Session, 2003, is amended to read as follows:

(b)iiThis section applies to a general or special election for an office of a political subdivision other than a county.

(d)iiNotwithstanding any other enactment of the 78th Legislature, Regular Session, 2003, including SECTION 1, HB 1476, Sections 2.051-2.053, Election Code, are repealed.

(e)iiSubsection (c) of this section takes effect on the date that HB 1344, Acts of the 78th Legislature, Regular Session, 2003, takes effect. If HB 1344 does not take effect, Subsection (c) has no effect.

(f)iiSubsection (d) of this section takes effect on the date that HB 1476, Acts of the 78th Legislature, Regular Session, 2003, takes effect. If HB 1476 does not take effect, Subsection (d) has no effect.

SECTIONi51.ii(a) This Act takes effect September 1, 2003.

(b)iiAs they relate to the holding of an election, the changes in law made by this Act apply only to an election ordered on or after September 1, 2003.

(c)iiNot later than December 31, 2003, a political subdivision that before October 1, 2003, held its general election for officers on the February or September uniform election date shall change the election date to a date authorized by Section 41.001, Election Code, as amended by this Act. An election on the new date may not be held before the uniform election date in May 2004.

HB 1695 - STATEMENT OF LEGISLATIVE INTENT

REPRESENTATIVE HOWARD: How do the changes in this bill affect the constitutional amendment election scheduled for September 13, 2003?

5604 78th LEGISLATURE — REGULAR SESSION

REPRESENTATIVE DENNY: Mr. Howard, it does not affect this election, rather, it will affect elections called and scheduled after September 2003.

HOWARD: Does the effective date of this Act have any effect on the September 13, 2003 constitutional election?

DENNY: No, the effective date of this Act would only affect an election called or scheduled after September 1, 2003. The constitutional amendment election has already been scheduled for September 13, and the governor will call for that election before September so that our elections administrators can order the ballots and scheduling polling places and get workers...etc. Therefore, the September 13 constitutional amendment election is not affected by this Act.

REMARKS ORDERED PRINTED

Representative Howard moved to print remarks between Representative Howard and Representative Denny.

The motion prevailed without objection.

Representative Denny moved to adopt the conference committee report on HBi1695.

A record vote was requested.

The motion prevailed by (Record 899): 102 Yeas, 36 Nays, 2 Present, not voting.

Yeas — Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Capelo; Chisum; Christian; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Dawson; Delisi; Denny; Driver; Dutton; Eissler; Elkins; Farabee; Farrar; Flynn; Gattis; Geren; Goodman; Goolsby; Griggs; Grusendorf; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Krusee; Kuempel; Laney; Laubenberg; Mabry; Madden; Marchant; McCall; Mercer; Merritt; Miller; Moreno, J.; Morrison; Mowery; Nixon; Paxton; Phillips; Pickett; Pitts; Puente; Quintanilla; Reyna; Riddle; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Uresti; Van Arsdale; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

Nays — Alonzo; Bailey; Canales; Castro; Chavez; Coleman; Davis, Y.; Deshotel; Dukes; Eiland; Ellis; Flores; Gallego; Garza; Giddings; Guillen; Gutierrez; Hochberg; Hodge; Homer; Lewis; Luna; Martinez Fischer; McClendon; McReynolds; Menendez; Naishtat; Noriega; Olivo; Peña; Raymond; Ritter; Rodriguez; Rose; Thompson; Villarreal.

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

Absent — Allen; Casteel; Dunnam; Edwards; Escobar; Kolkhorst; Moreno, P.; Oliveira; Telford; Turner.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5605

STATEMENTS OF VOTE

When Record No. 899 was taken, I was in the house but away from my desk. I would have voted no.

Dunnam

When Record No. 899 was taken, my vote failed to register. I would have voted no.

Edwards

I was shown voting no on Record No. 899. I intended to vote yes.

Flores

(Christian in the chair)

HJR 68 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hupp submitted the following conference committee report on HJR 68 :

Austin, Texas, May 30, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HJRi68 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HJR 68, A joint resolution proposing a constitutional amendment authorizing the Veterans' Land Board to make certain payments on revenue bonds and to use assets in certain funds to provide for veterans homes and a constitutional amendment relating to the use of income and appreciation of the permanent school fund.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubsections (r) and (s), Section 49-b, Article III, Texas Constitution, are amended to read as follows:

(r)iiReceipts of all kinds of the Veterans' Land Fund, the Veterans' Housing Assistance Fund, or the Veterans' Housing Assistance Fund II that the Board determines are not required for the payment of principal of and interest on the general obligation bonds benefiting those funds, including payments by the

5606 78th LEGISLATURE — REGULAR SESSION

(1)iimake temporary transfers to another of those funds to avoid a temporary cash deficiency in that fund or make a transfer to another of those funds for the purposes of that fund;

(2)iipay the principal of and interest on general obligation bonds issued to provide money for another of those funds or make bond enhancement payments with respect to the bonds; or

(3)iipay the principal of and interest on revenue bonds of the Board or make bond enhancement payments with respect to the bonds [if the bonds are issued to provide funds to purchase lands and sell lands to veterans or make home mortgage loans to veterans].

(s)iiIf the Board determines that assets from the Veterans' Land Fund, the Veterans' Housing Assistance Fund, or the Veterans' Housing Assistance Fund II are not required for the purposes of the fund, the Board may:

(1)iitransfer the assets to another of those funds;

(2)iiuse the assets to secure revenue bonds issued by the Board; [or]

(3)iiuse the assets to plan and design, operate, maintain, enlarge, or improve veterans cemeteries; or

(4)iiuse the assets to plan and design, construct, acquire, own, operate, maintain, enlarge, improve, furnish, or equip veterans homes.

SECTIONi2.iiSection 5, Article VII, Texas Constitution, is amended to read as follows:

Sec.i5.ii(a)iiThe permanent school fund consists of all land appropriated for public schools by this constitution or the other laws of this state, other properties belonging to the permanent school fund, and all revenue derived from the land or other properties. The available school fund consists of the distributions made to it from the total return on all investment assets of [principal of all bonds and other funds, and the principal arising from the sale of the lands hereinbefore set apart to said school fund, shall be] the permanent school fund, [and all the interest derivable therefrom and] the taxes [herein] authorized by this constitution or general law to be part of [and levied shall be] the available school fund, and appropriations made to the available school fund by the legislature. The total amount distributed from the permanent school fund to the available school fund:

(1)iiin each year of a state fiscal biennium must be an amount that is not more than six percent of the average of the market value of the permanent school fund, excluding real property belonging to the fund that is managed, sold, or acquired under Section 4 of this article, on the last day of each of the 16 state fiscal quarters preceding the regular session of the legislature that begins before that state fiscal biennium, in accordance with the rate adopted by:

(A)iia vote of two-thirds of the total membership of the State Board of Education, taken before the regular session of the legislature convenes; or

(B)iithe legislature by general law or appropriation, if the State Board of Education does not adopt a rate as provided by Paragraph (A) of this subdivision; and

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5607

(2)iiover the 10-year period consisting of the current state fiscal year and the nine preceding state fiscal years may not exceed the total return on all investment assets of the permanent school fund over the same 10-year period.

(b)iiThe expenses of managing permanent school fund land and investments shall be paid by appropriation from the permanent school fund.

(c)iiThe available school fund shall be applied annually to the support of the public free schools. Except as provided by this section, the legislature may not enact a [no] law [shall ever be enacted] appropriating any part of the permanent school fund or available school fund to any other purpose. The permanent school fund and the available school fund may not [whatever; nor shall the same, or any part thereof ever] be appropriated to or used for the support of any sectarian school. The[; and the] available school fund [herein provided] shall be distributed to the several counties according to their scholastic population and applied in the [such] manner [as may be] provided by law.

(d)i[(b)]iiThe legislature by law may provide for using the permanent school fund [and the income from the permanent school fund] to guarantee bonds issued by school districts or by the state for the purpose of making loans to or purchasing the bonds of school districts for the purpose of acquisition, construction, or improvement of instructional facilities including all furnishings thereto. If any payment is required to be made by the permanent school fund as a result of its guarantee of bonds issued by the state, an amount equal to this payment shall be immediately paid by the state from the treasury to the permanent school fund. An amount owed by the state to the permanent school fund under this section shall be a general obligation of the state until paid. The amount of bonds authorized hereunder shall not exceed $750 million or a higher amount authorized by a two-thirds record vote of both houses of the legislature. If the proceeds of bonds issued by the state are used to provide a loan to a school district and the district becomes delinquent on the loan payments, the amount of the delinquent payments shall be offset against state aid to which the district is otherwise entitled.

(e)i[(c)]iiThe legislature may appropriate part of the available school fund for administration of [the permanent school fund or of] a bond guarantee program established under this section.

(f)i[(d)]iiNotwithstanding any other provision of this constitution, in managing the assets of the permanent school fund, the State Board of Education may acquire, exchange, sell, supervise, manage, or retain, through procedures and subject to restrictions it establishes and in amounts it considers appropriate, any kind of investment, including investments in the Texas growth fund created by Article XVI, Section 70, of this constitution, that persons of ordinary prudence, discretion, and intelligence, exercising the judgment and care under the circumstances then prevailing, acquire or retain for their own account in the management of their affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.

5608 78th LEGISLATURE — REGULAR SESSION

(g)iiNotwithstanding Subsection (a) of this section, the total amount distributed from the permanent school fund to the available school fund for the state fiscal years beginning September 1, 2003, and September 1, 2004, must be an amount equal to 4.5 percent of the average of the market value of the permanent school fund, excluding real property belonging to the fund that is managed, sold, or acquired under Section 4 of this article, on the last day of each of the 16 state fiscal quarters preceding the regular session of the 78th Legislature.

(h)iiSubsection (g) of this section and this subsection expire December 1, 2006.

SECTIONi3.iiThe constitutional amendment proposed by SECTION 1 of this resolution shall be submitted to the voters at an election to be held September 13, 2003. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the Veterans' Land Board to use assets in certain veterans' land and veterans' housing assistance funds to provide veterans homes for the aged or infirm and to make principal, interest, and bond enhancement payments on revenue bonds."

SECTIONi4.iiThe constitutional amendment proposed by SECTION 2 of this resolution shall be submitted to the voters at an election to be held September 13, 2003. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment relating to the use of income and appreciation of the permanent school fund."

Representative Hupp moved to adopt the conference committee report on HJRi68.

A record vote was requested.

The motion prevailed by (Record 900): 142 Yeas, 0 Nays, 3 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Callegari; Campbell; Canales; Capelo; Casteel; Chisum; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5609

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

Absent — Burnam; Castro; Chavez; Dunnam; Wise.

STATEMENT OF VOTE

When Record No. 900 was taken, I was in the house but away from my desk. I would have voted yes.

Dunnam

SBi16 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Woolley submitted the conference committee report on SBi16.

Representative Woolley moved to adopt the conference committee report on SBi16.

The motion prevailed.

SBi103 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Alonzo submitted the conference committee report on SBi103.

Representative Alonzo moved to adopt the conference committee report on SBi103.

A record vote was requested.

The motion prevailed by (Record 901): 141 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Coleman; Cook, B.; Cook, R.; Corte; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Hegar; Hilderbran; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wise; Wohlgemuth; Wong; Woolley; Zedler.

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

Absent — Crabb; Crownover; Escobar; Heflin; Hill; Moreno, P.; Wolens.

5610 78th LEGISLATURE — REGULAR SESSION

SBi1010 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Giddings submitted the conference committee report on SBi1010.

Representative Giddings moved to adopt the conference committee report on SBi1010.

The motion prevailed.

SJR 30 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Callegari submitted the conference committee report on SJRi30.

Representative Callegari moved to adopt the conference committee report on SJRi30.

A record vote was requested.

The motion prevailed by (Record 902): 141 Yeas, 0 Nays, 1 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian(C); Coleman; Cook, B.; Cook, R.; Corte; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Hegar; Hilderbran; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

Present, not voting — Mr. Speaker.

Absent — Crabb; Farabee; Farrar; Heflin; Hill; Keffer, J.; Quintanilla; Thompson.

HB 2588 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Goodman submitted the following conference committee report on HB 2588 :

Austin, Texas, May 30, 2003

The Honorable David Dewhurst

President of the Senate

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5611

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi2588 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 2588, A bill to be entitled An Act relating to certain fees and costs that may be collected and to certain attorney's fees and costs that may be imposed in relation to certain child support matters.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 157.167, Family Code, is amended by amending Subsection (b) and adding Subsection (d) to read as follows:

(b)iiExcept as provided by Subsection (d), for [For] good cause shown, the court may waive the requirement that the respondent pay attorney's fees and costs if the court states the reasons supporting that finding.

(d)iiIf the court finds that the respondent is in contempt of court for failure or refusal to pay child support and that the respondent owes $20,000 or more in child support arrearages, the court may not waive the requirement that the respondent pay attorney's fees and costs unless the court also finds that the respondent:

(1)iiis involuntarily unemployed or is disabled; and

(2)iilacks the financial resources to pay the attorney's fees and costs.

SECTIONi2.iiThe heading to Section 231.103, Family Code, is amended to read as follows:

Sec.i231.103.iiAPPLICATION AND SERVICE FEES [FEE].

SECTIONi3.iiSection 231.103, Family Code, is amended by amending Subsection (a) and adding Subsections (d)-(h) to read as follows:

(a)iiThe Title IV-D agency may:

(1)iicharge a reasonable application fee;

(2)iicharge a $25 annual service fee; and

(3)iito the extent permitted by federal law, recover costs for the services provided in a Title IV-D case.

(d)iiThe Title IV-D agency may only charge an annual service fee in a Title IV-D case if the recipient of Title IV-D services has never received public assistance under Part A of Title IV of the federal Social Security Act (42 U.S.C. Section 601 et seq.) and the recipient receives more than $500 in support payments in a year. The annual service fee may only be deducted from support payments that exceed $500 annually.

(e)iiThe Title IV-D agency may impose and collect a fee as authorized by federal law for each request for parent locator services under Section 231.101(a).

5612 78th LEGISLATURE — REGULAR SESSION

(f)iiThe state disbursement unit established and operated by the Title IV-D agency under Chapter 234 may collect a monthly service fee of $3 deducted from support payments in a case for which the Title IV-D agency is not providing services.

(g)iiThe Title IV-D agency by rule shall establish procedures for the imposition of fees and recovery of costs authorized under this section.

(h)iiThe attorney general child support application and service fee account is an account in the general revenue fund in the state treasury. The account consists of all fees and costs collected under this section. The Title IV-D agency may only use the money in the account for agency program expenditures.

SECTIONi4.iiSection 234.008, Family Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a)iiExcept as provided by Subsection (c), not [Not] later than the second business day after the date the state disbursement unit receives a child support payment, the state disbursement unit shall distribute the payment to the Title IV-D agency or the obligee.

(c)iiIn a case in which a service fee is authorized under Section 231.103(d), the state disbursement unit shall deduct the amount of the fee from the support payment before the payment is disbursed to the obligee.

SECTIONi5.ii(a) This Act takes effect September 1, 2003.

(b)iiThe Title IV-D agency may not collect the $25 annual service fee authorized by Section 231.103, Family Code, as amended by this Act, before January 1, 2004.

(c)iiThe change in law made by this Act does not by itself constitute a material and substantial change of circumstances under Section 156.401, Family Code, sufficient to warrant modification of a court order or a portion of a decree that provides for the support of a child rendered before the effective date of this Act.

Representative Goodman moved to adopt the conference committee report on HBi2588.

The motion prevailed.

SBi280 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Solomons submitted the conference committee report on SBi280.

Representative Solomons moved to adopt the conference committee report on SBi280.

A record vote was requested.

The motion prevailed by (Record 903): 145 Yeas, 1 Nay, 1 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian(C); Coleman; Cook, B.; Cook, R.; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5613

Nays — Hodge.

Present, not voting — Mr. Speaker.

Absent — Brown, B.; Corte; Talton.

SBi473 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Giddings submitted the conference committee report on SBi473.

Representative Giddings moved to adopt the conference committee report on SBi473.

The motion prevailed.

HR 1855 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1855, suspending the limitations on the conferees for SBi1320.

SBi361 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hill submitted the conference committee report on SBi361.

Representative Hill moved to adopt the conference committee report on SBi361.

A record vote was requested.

The motion prevailed by (Record 904): 146 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle;

5614 78th LEGISLATURE — REGULAR SESSION

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

Absent — Dunnam; Wise.

STATEMENT OF VOTE

When Record No. 904 was taken, I was in the house but away from my desk. I would have voted yes.

Dunnam

SBi1182 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Farabee submitted the conference committee report on SBi1182.

Representative Farabee moved to adopt the conference committee report on SBi1182.

A record vote was requested.

The motion prevailed by (Record 905): 146 Yeas, 0 Nays, 1 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian(C); Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Seaman; Smith, T.;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5615

Present, not voting — Mr. Speaker.

Absent — Jones, E.; Madden; Rose.

SBi160 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Capelo submitted the conference committee report on SBi160.

Representative Capelo moved to adopt the conference committee report on SBi160.

The motion prevailed.

HR 1858 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1858, suspending the limitations on the conferees for HBi2455.

SBi826 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Keel submitted the conference committee report on SBi826.

Representative Keel moved to adopt the conference committee report on SBi826.

The motion prevailed.

SBi1000 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Goodman submitted the conference committee report on SBi1000.

Representative Goodman moved to adopt the conference committee report on SBi1000.

A record vote was requested.

The motion prevailed by (Record 906): 143 Yeas, 0 Nays, 1 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian(C); Coleman; Cook, B.; Cook, R.; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer;

5616 78th LEGISLATURE — REGULAR SESSION

Present, not voting — Mr. Speaker.

Absent — Baxter; Corte; Jones, E.; Mabry; Madden; Moreno, J.

SBi1413 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hardcastle submitted the conference committee report on SBi1413.

(Puente in the chair)

Representative Hardcastle moved to adopt the conference committee report on SBi1413.

A record vote was requested.

The motion prevailed by (Record 907): 144 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

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

Absent — Dawson; Howard; Jones, E.; Madden.

STATEMENT OF VOTE

When Record No. 907 was taken, I was in the house but away from my desk. I would have voted yes.

Madden

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5617

SBi1771 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative J. Keffer submitted the conference committee report on SBi1771.

SBi1771 - STATEMENT OF LEGISLATIVE INTENT

REPRESENTATIVE SOLIS: On SBi1771 you just announced two amendments that were taken away. But the Section C of the bill––regarding the use of the funds for economic development, infrastructure development, community development, job training programs, and business incentives––that was kept intact. Is that correct?

REPRESENTATIVE J. KEFFER: Yes. Yes it was.

SOLIS: The bill itself––and you recall we've had this debate on the house floor before in reference to some of these funds and the commitment made by the governor, and we've talked about the state of the state in reference to some of the border health science institutes.

J. KEFFER: Yes. I do remember that. And we've had several. As a matter of fact, several months ago when we were debating on the floor, you and Representative Oliveira got up and talked about the use of these funds along the border.

SOLIS: And what we're doing with this bill––this is the mechanism which the governor had discussed––I know on the state of the state, but also with myself and Representative Oliveira and other members of the house––as to what the intent is for some of these funds, specifically the border health institute, including the regional academic health center. And also, there were some funds that were discussed, and I'm not sure if you're aware of this or not, some of the commitments made by the governor as to how these funds would be dispersed––some of the figures we've discussed. And I'm not sure if you're aware of this or not––so it's in the form of a question, to try to establish intent on this bill––of the funds discussed for the regional academic health center was something like $19.6 million. There was an Anbrooke Campus, part of the border initiative, was $5 million, $2 million for Laredo, and $10 million for El Paso. But I want to thank you and the committee for working with myself and several members of the border, including Representative Escobar, who is trying to get some funds for the Rangel School of Pharmacy and is still in the process of working with the governor's office on that. I just want to make sure we're on the same page, and I believe we are, on what the governor committed early on in the session.

J. KEFFER: Of course, not being able to speak for the governor, but I think this bill and subsequent bills on economic development were written so broadly to be able to take in these worthwhile projects that you're talking about, and certainly we want to make every recommendation so the governor looks seriously upon these projects.

5618 78th LEGISLATURE — REGULAR SESSION

SOLIS: And I appreciate that Chairman Keffer, and that is why I pointed out Section C of the bill. Because I believe the way it was drafted at that point would show support for the commitments made by the governor on the health science institutions, including the Rangel School of Pharmacy.

REMARKS ORDERED PRINTED

Representative Raymond moved to print remarks between Representative J.iKeffer and Representative Solis.

The motion prevailed without objection.

Representative J. Keffer moved to adopt the conference committee report on SBi1771.

The motion prevailed.

BILLS AND RESOLUTIONS SIGNED BY THE SPEAKER

Notice was given at this time that the speaker had signed bills and resolutions in the presence of the house (see the addendum to the daily journal, Signed by the Speaker, House List Nos. 57 and 58).

HB 1204 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Baxter submitted the following conference committee report on HB 1204 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi1204 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 1204, A bill to be entitled An Act relating to the authority of municipalities and counties to regulate subdivisions and certain development in a municipality's extraterritorial jurisdiction and in the unincorporated area of a county.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiThe heading of Section 242.001, Local Government Code, is amended to read as follows:

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5619

Sec.i242.001.iiREGULATION OF SUBDIVISIONS IN EXTRATERRITORIAL JURISDICTION GENERALLY.

SECTIONi2.ii(a) Section 242.001(a), Local Government Code, as amended by Chapters 736 and 1028, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:

(a)iiThis section applies only to a county operating under Sections 232.001-232.005 or Subchapter B, C, or E, Chapter 232, and a municipality that has extraterritorial jurisdiction in that county. Subsections (b)-(g) [(b)-(e)] do not apply:

(1)iiwithin a county that contains extraterritorial jurisdiction of a municipality with a population of 1.9 million or more; or

(2)iiwithin a county within 50 miles of an international border, or to which Subchapter C, Chapter 232, applies.

(b)iiThis section takes effect only if HB 1197, Acts of the 78th Legislature, Regular Session, 2003, does not become law. If that bill becomes law, this section has no effect.

SECTIONi3.ii(a) Section 242.001(a), Local Government Code, as amended by Chapters 736 and 1028, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:

(a)iiThis section applies only to a county operating under Sections 232.001-232.005 or Subchapter B, C, or E, Chapter 232, and a municipality that has extraterritorial jurisdiction in that county. Subsections (b)-(g) [(b)-(e)] do not apply:

(1)iiwithin a county that contains extraterritorial jurisdiction of a municipality with a population of 1.9 million or more; [or]

(2)iiwithin a county within 50 miles of an international border, or to which Subchapter C, Chapter 232, applies; or

(3)iito a tract of land subject to a development agreement under Subchapter G, Chapter 212, or other provisions of this code.

(b)iiThis section takes effect only if HB 1197, Acts of the 78th Legislature, Regular Session, 2003, becomes law. If that bill does not become law, this section has no effect.

SECTIONi4.iiSection 242.001, Local Government Code, is amended by reenacting and amending Subsection (c), as amended by Chapters 736 and 1028, Acts of the 77th Legislature, Regular Session, 2001, and by amending Subsections (d), (f), and (g) and adding Subsections (h) and (i) to read as follows:

(c)iiExcept as provided by Subsections (d)(3) and (4), a municipality and a county may not both regulate subdivisions and approve related permits in the extraterritorial jurisdiction of a municipality after an agreement under Subsection (d) is executed. The municipality and the county shall enter into a written agreement that identifies the governmental entity authorized to regulate subdivision plats and approve related permits in the extraterritorial jurisdiction. For a municipality in existence on September 1, 2001, the municipality and county shall enter into a written agreement under this subsection on or before April 1, 2002. For a municipality incorporated after September 1, 2001, the municipality and county shall enter into a written agreement under this subsection

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(d)iiAn agreement under Subsection (c) may grant the authority to regulate subdivision plats and approve related permits in the extraterritorial jurisdiction of a municipality as follows:

(1)iithe municipality may be granted exclusive jurisdiction to regulate subdivision plats and approve related permits in the extraterritorial jurisdiction and may regulate subdivisions under Subchapter A of Chapter 212 and other statutes applicable to municipalities;

(2)iithe county may be granted exclusive jurisdiction to regulate subdivision plats and approve related permits in the extraterritorial jurisdiction and may regulate subdivisions under Sections 232.001-232.005, Subchapter B or C, Chapter 232, and other statutes applicable to counties;

(3)iithe municipality and the county may apportion the area within the extraterritorial jurisdiction of the municipality with the municipality regulating subdivision plats and approving related permits in the area assigned to the municipality and the county regulating subdivision plats and approving related permits in the area assigned to the county; or

(4)iithe municipality and the county may enter into an interlocal agreement that:

(A)iiestablishes one office that is authorized to:

(i)iiaccept plat applications for tracts of land located in the extraterritorial jurisdiction;

(ii)iicollect municipal and county plat application fees in a lump-sum amount; and

(iii) provide applicants one response indicating approval or denial of the plat application; and

(B)iiestablishes a single set of consolidated and consistent [set of] regulations related to plats, subdivision construction plans, and subdivisions of land as authorized by Chapter 212, Sections 232.001-232.005, Subchapters B and C, Chapter 232, and other statutes applicable to municipalities and counties that will be enforced in the extraterritorial jurisdiction.

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(f)iiIf a certified agreement between a county and municipality as required by Subsection (c) is not in effect on or before the applicable date prescribed by Section 242.0015(a), the municipality and the county must enter into arbitration as provided by Section 242.0015. If the arbitrator or arbitration panel, as applicable, has not reached a decision in the 60-day period as provided by Section 242.0015, the arbitrator or arbitration panel, as applicable, shall issue an interim decision regarding the regulation of plats and subdivisions and approval of related permits in the extraterritorial jurisdiction of the municipality. The interim decision shall provide for a single set of regulations and authorize a single entity to regulate plats and subdivisions. The interim decision remains in effect only until the arbitrator or arbitration panel reaches a final decision. [This subsection applies until an agreement is reached under Subsection (d). For an area in a municipality's extraterritorial jurisdiction, as defined by Section 212.001, a plat may not be filed with the county clerk without the approval of both the municipality and the county. If a municipal regulation and a county regulation relating to plats and subdivisions of land conflict, the more stringent regulation prevails. However, if one governmental entity requires a plat to be filed for the subdivision of a particular tract of land in the extraterritorial jurisdiction of the municipality and the other governmental entity does not require the filing of a plat for that subdivision, the authority responsible for approving plats for the governmental entity that does not require the filing shall issue on request of the subdivider a written certification stating that a plat is not required to be filed for that subdivision of the land. The certification must be attached to a plat required to be filed under this subsection.]

(g)iiIf a regulation or agreement adopted under this section relating to plats and subdivisions of land or subdivision development establishes a plan for future roads that conflicts with a proposal or plan for future roads adopted by a metropolitan planning organization, the proposal or plan of the metropolitan planning organization prevails [Subsection (f) applies to a county and area to which Subsections (b)-(e) do not apply].

(h)iiThis subsection applies only to a county to which Subsections (b)-(g) do not apply, except that this subsection does not apply to a county subject to Section 242.002. For an area in a municipality's extraterritorial jurisdiction, as defined by Section 212.001, a plat may not be filed with the county clerk without the approval of both the municipality and the county. If a municipal regulation and a county regulation relating to plats and subdivisions of land conflict, the more stringent regulation prevails. However, if one governmental entity requires a plat to be filed for the subdivision of a particular tract of land in the extraterritorial jurisdiction of the municipality and the other governmental entity does not require the filing of a plat for that subdivision, the authority responsible for approving plats for the governmental entity that does not require the filing shall issue on request of the subdivider a written certification stating that a plat is not required to be filed for that subdivision of the land. The certification must be attached to a plat required to be filed under this subsection.

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(i)iiProperty subject to pending approval of a preliminary or final plat application filed after September 1, 2002, that is released from the extraterritorial jurisdiction of a municipality shall be subject only to county approval of the plat application and related permits and county regulation of that plat. This subsection does not apply to the simultaneous exchange of extraterritorial jurisdiction between two or more municipalities or an exchange of extraterritorial jurisdiction that is contingent on the subsequent approval by the releasing municipality.

SECTIONi5.iiChapter 242, Local Government Code, is amended by adding Section 242.0015 to read as follows:

Sec.i242.0015.iiARBITRATION REGARDING SUBDIVISION REGULATION AGREEMENT. (a) This section applies only to a county and a municipality that are required to make an agreement as described under Section 242.001(f). If a certified agreement between a county and a municipality with an extraterritorial jurisdiction that extends 3.5 miles or more from the corporate boundaries of the municipality is not in effect on or before January 1, 2004, the parties must arbitrate the disputed issues. If a certified agreement between a county and a municipality with an extraterritorial jurisdiction that extends less than 3.5 miles from the corporate boundaries of the municipality is not in effect on or before January 1, 2006, the parties must arbitrate the disputed issues. A party may not refuse to participate in arbitration requested under this section. An arbitration decision under this section is binding on the parties.

(b)iiThe county and the municipality must agree on an individual to serve as arbitrator. If the county and the municipality cannot agree on an individual to serve as arbitrator, the county and the municipality shall each select an arbitrator and the arbitrators selected shall select a third arbitrator.

(c)iiThe third arbitrator selected under Subsection (b) presides over the arbitration panel.

(d)iiNot later than the 30th day after the date the county and the municipality are required to have an agreement in effect under Section 242.001(f), the arbitrator or arbitration panel, as applicable, must be selected.

(e)iiThe authority of the arbitrator or arbitration panel is limited to issuing a decision relating only to the disputed issues between the county and the municipality regarding the authority of the county or municipality to regulate plats, subdivisions, or development plans.

(f)iiEach party is equally liable for the costs of an arbitration conducted under this section.

(g)iiThe arbitrator or arbitration panel, as applicable, shall render a decision under this section not later than the 60th day after the date the arbitrator or arbitration panel is selected. If after a good faith effort the arbitrator or panel has not reached a decision as provided under this subsection, the arbitrator or panel shall continue to arbitrate the matter until the arbitrator or panel reaches a decision.

(h)iiA municipality and a county may not arbitrate the subdivision of an individual plat under this section.

SECTIONi6.iiSubchapter A, Chapter 212, Local Government Code, is amended by adding Section 212.0025 to read as follows:

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Sec.i212.0025.iiCHAPTER-WIDE PROVISION RELATING TO REGULATION OF PLATS AND SUBDIVISIONS IN EXTRATERRITORIAL JURISDICTION. The authority of a municipality under this chapter relating to the regulation of plats or subdivisions in the municipality's extraterritorial jurisdiction is subject to any applicable limitation prescribed by an agreement under Section 242.001.

SECTIONi7.iiSubchapter A, Chapter 232, Local Government Code, is amended by adding Section 232.0013 to read as follows:

Sec.i232.0013.iiCHAPTER-WIDE PROVISION RELATING TO REGULATION OF PLATS AND SUBDIVISIONS IN EXTRATERRITORIAL JURISDICTION. The authority of a county under this chapter relating to the regulation of plats or subdivisions in the extraterritorial jurisdiction of a municipality is subject to any applicable limitation prescribed by an agreement under Section 242.001 or by Section 242.002.

SECTIONi8.iiSection 232.0015(b), Local Government Code, is amended to read as follows:

(b)iiExcept as provided by Section 232.0013, this [This] subchapter does not apply to a subdivision of land to which Subchapter B applies.

SECTIONi9.iiSection 232.009(b), Local Government Code, is amended to read as follows:

(b)iiA person who owns real property in a tract that has been [has] subdivided and [land] that is subject to the subdivision controls of the county in which the property [land] is located may apply in writing to the commissioners court of the county for permission to revise the subdivision plat that applies to the property and that is filed for record with the county clerk.

SECTIONi10.iiSubchapter A, Chapter 232, Local Government Code, is amended by adding Section 232.0095 to read as follows:

Sec.i232.0095.iiALTERNATIVE PROCEDURES FOR PLAT REVISION. (a) This section applies only to real property located outside municipalities and outside the extraterritorial jurisdiction, as determined under Chapter 42, of municipalities with a population of 1.5 million or more.

(b)iiAs an alternative to the provisions in Section 232.009 governing the revision of plats, a county by order may adopt the provisions in Sections 212.013, 212.014, 212.015, and 212.016 governing plat vacations, replatting, and plat amendment within a municipality's jurisdiction. A county that adopts the provisions in those sections may approve a plat vacation, a replat, and an amending plat in the same manner and under the same conditions, including the notice and hearing requirements, as a municipal authority responsible for approving plats under those sections.

SECTIONi11.iiSection 232.100, Local Government Code, is amended to read as follows:

Sec.i232.100.iiAPPLICABILITY. This subchapter applies only to the subdivision of the land that is:

(1)iisubject to county regulations under Subchapter A or B; and

(2)iiin a county that:

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(A)iihas a population of 150,000 or more and is adjacent to an international border;

(B)iihas a population of 700,000 or more; [or]

(C)iiis adjacent to a county with a population of 700,000 or more and is within the same metropolitan statistical area as that adjacent county, as designated by the United States Office of Management and Budget; or

(D)iiis adjacent to a county with a population of 700,000 or more, is not within the same metropolitan statistical area as that adjacent county, and has a population that has increased after the 1990 decennial census, from one decennial census to the next, by more than 40 percent.

SECTIONi12.iiIf any provision of this Act or its application to any county, municipality, or circumstance is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.

SECTIONi13.iiExcept as provided by Section 242.001(i), Local Government Code, as added by this Act, the changes in law made by this Act to Chapters 212, 232, and 242, Local Government Code, apply only to a development agreement or subdivision plat that is filed on or after the effective date of this Act, and to the subdivision covered by the plat. A development agreement or subdivision plat that is filed before the effective date of this Act, and the subdivision covered by the plat, are governed by the law in effect immediately preceding that date, and the former law is continued in effect for that purpose.

SECTIONi14.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Representative Baxter moved to adopt the conference committee report on HBi1204.

A record vote was requested.

The motion prevailed by (Record 908): 147 Yeas, 0 Nays, 1 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5625

Present, not voting — Mr. Speaker.

Absent — Crabb; Goodman.

SBi279 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Solomons submitted the conference committee report on SBi279.

Representative Solomons moved to adopt the conference committee report on SBi279.

The motion prevailed.

(Escobar in the chair)

SBi929 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Grusendorf submitted the conference committee report on SBi929.

SBi929 - STATEMENT OF LEGISLATIVE INTENT

REPRESENTATIVE CHISUM: Mr. Grusendorf, I noticed in a resolution that I'm going to be bringing up later, a privileged resolution, that we have a conflict of the dates on the reviews and, I believe in my review, it's going to say March 1, 2004. What does yours say?

REPRESENTATIVE GRUSENDORF: June 1, 2004.

CHISUM: Mr. Grusendorf, would it be in your understanding that––since the sunset is in a very critical schedule to meet the requirements of the next legislative session––that my resolution would trump yours? So that the requirement of the comptroller's office to submit their review to the Sunset Commission would in fact be March 1, 2004?

GRUSENDORF: This is a question you and I talked about 30 seconds before we came to the microphone.

CHISUM: And now we're here.

GRUSENDORF: And now we're here, Mr. Chisum. I'm not sure. Since the sunset is not doing the comprehensive review, I would think that they might be able to get the report from the comptroller later than they normally would if they were doing the review themselves. I don't know of the answer and you're probably more familiar with the sunset process than I am.

CHISUM: And that probably is––I'm sure the comptroller's office and the Sunset Commission can work these differences out, and I think they'll get it done in a timely manner, but whatever works in order to do this limited review of the

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GRUSENDORF: I agree, and I feel confident that they will work together to make sure the pieces come together. But my main concern––and I want to give my word again––I want to stress that my main concern is to the service center people––is that we only have one review.

CHISUM: And I think that's the biggest issue here––that we have no intent of doing two reviews. And the comptroller is getting the money to do this with––I believe in your bill, $750,000––and we would hope that they could make that review happen in such a manner that they could meet the requirements so the sunset could do their business for the legislature prior to us coming back in.

REMARKS ORDERED PRINTED

Representative Chisum moved to print remarks between Representative Chisum and Representative Grusendorf.

The motion prevailed without objection.

Representative Grusendorf moved to adopt the conference committee report on SBi929.

The motion prevailed.

BILLS AND RESOLUTIONS SIGNED BY THE SPEAKER

Notice was given at this time that the speaker had signed bills and resolutions in the presence of the house (see the addendum to the daily journal, Signed by the Speaker, Senate List No. 42).

(Kolkhorst in the chair)

HB 329 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Naishtat submitted the following conference committee report on HB 329 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi329 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

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HB 329, A bill to be entitled An Act relating to the regulation of mold assessors and remediators, civil liability for mold remediation, and insurance coverage on mold claims; providing civil and administrative penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubtitle B, Title 12, Occupations Code, is amended by adding Chapter 1958 to read as follows:

CHAPTER 1958. MOLD ASSESSORS AND REMEDIATORS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.i1958.001.iiDEFINITIONS. In this chapter:

(1)ii"Board" means the Texas Board of Health.

(2)ii"Commissioner" means the commissioner of public health.

(3)ii"Department" means the Texas Department of Health.

(4)ii"License" means a license issued under this chapter.

(5)ii"Mold" means any living or dead fungi or related products or parts, including spores, hyphae, and mycotoxins.

(6)ii"Mold assessment" means:

(A)iian inspection, investigation, or survey of a dwelling or other structure to provide the owner or occupant with information regarding the presence, identification, or evaluation of mold;

(B)iithe development of a mold management plan or remediation protocol; or

(C)iithe collection or analysis of a mold sample.

(7)ii"Mold remediation" means the removal, cleaning, sanitizing, demolition, or other treatment, including preventive activities, of mold or mold-contaminated matter that was not purposely grown at that location.

Sec.i1958.002.iiSCOPE OF AUTHORITY. (a) This chapter applies only to the regulation of mold-related activities that affect indoor air quality, including a mold-related activity performed by a third party for compensation at a property owned or operated by a governmental entity.

(b)iiThis chapter does not apply to:

(1)iithe following activities when not conducted for the purpose of mold assessment or mold remediation:

(A)iiroutine cleaning;

(B)iithe diagnosis, repair, cleaning, or replacement of plumbing, heating, ventilation, air conditioning, electrical, or air duct systems or appliances;

(C)iicommercial or residential real estate inspections; and

(D)iithe incidental discovery or emergency containment of potential mold contamination during the conduct or performance of services listed in this subsection;

(2)iithe repair, replacement, or cleaning of construction materials during the building phase of the construction of a structure;

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(3)iithe standard performance of custodial activities for, preventive maintenance of, and the routine assessment of property owned or operated by a governmental entity; or

(4)iia pest control inspection conducted by a person regulated under Chapter 1951.

[Sections 1958.003-1958.050 reserved for expansion]

SUBCHAPTER B. POWERS AND DUTIES

Sec.i1958.051.iiGENERAL POWERS AND DUTIES OF DEPARTMENT; SCOPE OF AUTHORITY. The department shall administer this chapter to protect the public from the adverse health effects of mold.

Sec.i1958.052.iiPUBLIC EDUCATION PROGRAM. (a) The department shall conduct a statewide education and outreach program regarding the importance of, and ways to improve, air quality in buildings, including the importance of, and the ways to recognize, prevent, control, and mitigate, mold occurrence and other indoor air quality factors that adversely affect human health.

(b)iiThe program may include:

(1)iithe development and distribution of information to the public concerning indoor air quality and mold;

(2)iieducational programs;

(3)iiinformational or educational exhibits; and

(4)iiany other methods of education or communication that the department considers appropriate.

(c)iiThe department may contract with governmental entities or other persons to provide the program.

Sec.i1958.053.iiGENERAL RULEMAKING AUTHORITY. The board shall adopt substantive and procedural rules as necessary or desirable for the board, department, and commissioner to discharge their powers and duties under this chapter.

Sec.i1958.054.iiRULES REGARDING PERFORMANCE STANDARDS AND WORK PRACTICES. The board by rule shall establish minimum performance standards and work practices for conducting a mold assessment or mold remediation in this state.

Sec.i1958.055.iiFEES. (a) The board shall establish reasonable and necessary fees to administer this chapter, including fees for licenses, registrations, and examinations. The board shall set the fees in an amount sufficient to recover the costs of administering this chapter, not to exceed the caps established under Subsection (b).

(b)iiA fee set under this section may not exceed:

(1)ii$400 for a license issued to an individual;

(2)ii$750 for a license issued to a person who is not an individual; and

(3)ii$60 for a registration issued to an employee of a license holder.

Sec.i1958.056.iiINSPECTIONS. (a) The department shall conduct inspections as necessary to ensure compliance with this chapter.

(b)iiThe board shall adopt rules regarding compliance investigations.

Sec.i1958.057.iiCOMPLAINTS. The department shall investigate any complaint regarding mold-related activities.

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Sec.i1958.058.iiSAFETY STANDARDS. The board may develop and establish mold safety standards for license holders if appropriate scientific information exists regarding the effect of mold.

Sec.i1958.059.iiCODE OF ETHICS. The board by rule shall adopt a code of ethics for license holders that promotes the education of mold assessors and mold remediators concerning the ethical, legal, and business principles that should govern their conduct.

[Sections 1958.060-1958.100 reserved for expansion]

SUBCHAPTER C. LICENSE AND REGISTRATION REQUIREMENTS

Sec.i1958.101.iiLICENSE REQUIRED; RULES. (a) A person may not engage in:

(1)iimold assessment unless the person holds a mold assessment license; or

(2)iimold remediation unless the person holds a mold remediation license.

(b)iiThe board shall adopt rules regarding:

(1)iithe scope of mold-related work for which a license is required, including the supervision of employees or other persons by license holders; and

(2)iirenewal requirements for a license issued under this chapter.

Sec.i1958.102.iiEXEMPTIONS. (a) An owner or tenant, or a managing agent or employee of an owner or tenant, is not required to be licensed under this chapter to perform mold assessment or mold remediation on property owned or leased by the owner or tenant. This exemption does not apply:

(1)iiif the managing agent or employee engages in the business of performing mold assessment or mold remediation for the public;

(2)iiif the mold remediation is performed in an area in which the mold contamination affects a total surface area of 25 contiguous square feet or more; or

(3)iito a person who is exempt under Subsection (e).

(b)iiAn employee of a license holder is not required to be licensed under this chapter to perform mold assessment or mold remediation while supervised by the license holder, as provided by rules adopted under Section 1958.101.

(c)iiA person is not required to be licensed under this chapter to perform mold remediation in an area in which the mold contamination affects a total surface area for the project of less than 25 contiguous square feet.

(d)iiA person is not required to be licensed under this chapter to perform mold assessment or mold remediation in a one-family or two-family dwelling that the person constructed or improved if the person performs the mold assessment or mold remediation at the same time the person performs the construction or improvement or at the same time the person performs repair work on the construction or improvement. This exemption does not apply if the person engages in the business of performing mold assessment or mold remediation for the public.

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(e)iiAn owner, or a managing agent or employee of an owner, is not required to be licensed under this chapter to perform mold assessment or mold remediation on a residential property owned by that person with fewer than 10 dwelling units. This exemption does not apply if the managing agent or employee engages in the business of performing mold assessment or mold remediation for the public.

Sec.i1958.103.iiREGISTRATION REQUIREMENTS FOR EMPLOYEES. The board may adopt rules to require the registration of employees supervised by license holders.

Sec.i1958.104.iiRULES REGARDING LICENSE APPLICATION. The board shall adopt rules regarding a license application. The board shall adopt rules that establish minimum requirements for a license, including:

(1)iithe type of license;

(2)iithe term of the license;

(3)iithe qualifications for the license, including any previous training required under Section 1958.106;

(4)iirenewal requirements for the license, including ongoing continuing education required under Section 1958.106; and

(5)iiliability insurance requirements for the license.

Sec.i1958.105.iiEXAMINATION. The department may require that an applicant for a license pass a competency examination to qualify for the license.

Sec.i1958.106.iiTRAINING; CONTINUING EDUCATION. (a) The board shall adopt rules regarding training required under this chapter and continuing education required for a license holder under this chapter.

(b)iiThe rules may include requirements regarding training and continuing education providers, including rules establishing:

(1)iiaccreditation by the department;

(2)iicurriculum requirements; and

(3)iiqualifications.

Sec.i1958.107.iiRECIPROCITY. The board may adopt rules that facilitate reciprocity and communication with other states that have a similar licensing program.

[Sections 1958.108-1958.150 reserved for expansion]

SUBCHAPTER D. PRACTICE BY LICENSE HOLDER

Sec.i1958.151.iiSCOPE OF WORK ANALYSIS. (a) A license holder who intends to perform mold assessment on a mold remediation project shall prepare a work analysis for the project. The license holder shall provide the analysis to the client before the mold remediation begins.

(b)iiThe work analysis must specify:

(1)iithe rooms or areas where the work will be performed;

(2)iithe quantities of materials to be removed or cleaned at the project;

(3)iithe proposed methods for each type of remediation in each type of area in the project; and

(4)iithe proposed clearance criteria for each type of remediation in each type of area in the project.

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Sec.i1958.152.iiREMEDIATION WORK PLAN. (a) A license holder who intends to perform mold remediation shall prepare a work plan providing instructions for the remediation efforts to be performed for the mold remediation project. The license holder shall provide the work plan to the client before the mold remediation begins.

(b)iiThe license holder shall maintain a copy of the work plan at the job site where the remediation is being performed.

Sec.i1958.153.iiNOTICE OF PROJECT. (a) Except as provided by Subsection (b), not later than the fifth day before the date on which a license holder starts mold remediation at a property, the license holder shall notify the department in writing about the project.

(b)iiIn an emergency, notice to the department under Subsection (a) may be made verbally but must be made not later than the next business day after the license holder identifies the emergency. For purposes of this subsection, an emergency exists if a delay in mold remediation services in response to a water damage occurrence would increase mold contamination.

(c)iiThe board shall adopt rules to implement this section, including rules:

(1)iidescribing the information that must be provided in the notice; and

(2)iiauthorizing verbal notification to the department in an emergency.

Sec.i1958.154.iiCERTIFICATE OF MOLD REMEDIATION; DUTY OF PROPERTY OWNER. (a) Not later than the 10th day after the date on which a license holder completes mold remediation at a property, the license holder shall provide a certificate of mold remediation to the property owner. The certificate must include a statement by a mold assessment license holder that, based on visual, procedural, and analytical evaluation, the mold contamination identified for the project has been remediated as outlined in the mold management plan or remediation protocol. If the mold assessment license holder determines that the underlying cause of the mold has been remediated so that it is reasonably certain that the mold will not return from that remediated cause, the mold assessment license holder shall indicate on the certificate that the underlying cause of the mold has been remediated.

(b)iiIf a property owner sells property, the property owner shall provide to the buyer a copy of each certificate that has been issued for the property under this section.

(c)iiThe board shall adopt rules to implement this section, other than rules described by Subsection (d).

(d)iiThe commissioner of insurance shall adopt rules describing the information that must be provided in the certificate of mold remediation. In adopting the rules, the commissioner shall design the certificate as necessary to comply with any requirements imposed under Article 21.21-11, Insurance Code.

Sec.i1958.155.iiCONFLICT OF INTEREST; DISCLOSURE REQUIRED. (a) A license holder may not perform both mold assessment and mold remediation on the same project.

(b)iiA person may not own an interest in both the entity that performs assessment services and an entity that performs remediation services on the same project.

5632 78th LEGISLATURE — REGULAR SESSION

(c)iiA license holder who is not an individual shall disclose to the department the name, address, and occupation of each person that has an ownership interest in the license holder. The license holder shall report any changes in ownership to the department. The board shall adopt rules to implement this section, including rules regarding the form of the disclosure and the time required to make disclosures or to report a change in ownership.

Sec.i1958.156.iiRECORD REQUIREMENTS; DUTIES OF MOLD REMEDIATORS. (a) A mold remediator shall maintain a record regarding each mold remediation performed for at least three years after the date of completion of the mold remediation on a property.

(b)iiThe mold remediator shall make the record available for inspection by the department or any law enforcement entity.

(c)iiThe record must contain:

(1)iiphotographs of the scene of the mold remediation taken before and after the remediation;

(2)iithe written contract between the mold remediator or any other party regarding the mold remediation;

(3)iiall invoices issued regarding the mold remediation; and

(4)iiany other material required by the department.

(d)iiNot later than one week after completion of a mold remediation, the mold remediator license holder shall provide the property owner with copies of all photographs required by this section.

Sec.i1958.157.iiOFFICE LOCATION. A license holder shall maintain an office in this state.

[Sections 1958.158-1958.200 reserved for expansion]

SUBCHAPTER E.iiDISCIPLINARY PROCEDURES

Sec.i1958.201.iiDISCIPLINARY ACTION. If a license holder violates this chapter or an order or rule adopted under this chapter, the department, after providing the person with notice and an opportunity for a hearing, shall take one or more of the following actions:

(1)iirevoke, suspend, or refuse to renew the license;

(2)iiimpose an administrative penalty;

(3)iibring an action to collect a civil penalty; or

(4)iireprimand the person.

[Sections 1958.202-1958.250 reserved for expansion]

SUBCHAPTER F.iiADMINISTRATIVE PENALTY

Sec.i1958.251.iiIMPOSITION OF ADMINISTRATIVE PENALTY. The commissioner may impose an administrative penalty on a person who violates this chapter or a rule adopted or order issued under this chapter.

Sec.i1958.252.iiAMOUNT OF PENALTY. (a) The amount of an administrative penalty may not exceed $5,000 for each violation. Each day a violation continues under Section 1958.101 or 1958.155 may be considered a separate violation for purposes of imposing a penalty.

(b)iiIn determining the amount of the penalty, the commissioner shall consider:

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5633

(1)iiwhether the violation was committed knowingly, intentionally, or fraudulently;

(2)iithe seriousness of the violation;

(3)iiany hazard created to the health and safety of the public;

(4)iithe person's history of previous violations; and

(5)iiany other matter that justice may require.

Sec.i1958.253.iiEXCEPTION TO ADMINISTRATIVE PENALTY. (a) The commissioner may choose not to impose an administrative penalty under this subchapter if, not later than the 10th day after the date of written notice of the violation under Section 1958.254, the person provides conclusive evidence that the circumstances giving rise to the violation have been corrected and all actual damages are paid.

(b)iiThis section does not apply to a violation alleged under Section 1958.101 or 1958.155.

Sec.i1958.254.iiNOTICE; OPPORTUNITY FOR HEARING; ORDER. (a) The commissioner may impose an administrative penalty under this subchapter only after the person charged with a violation is given a written notice and the opportunity for a hearing.

(b)iiThe written notice must state the facts that constitute the alleged violation and the law or rule on which the violation is based.

(c)iiIf a hearing is held, the commissioner shall make findings of fact and issue a written decision as to:

(1)iithe occurrence of the violation; and

(2)iithe amount of any penalty that is warranted.

(d)iiIf the person charged with a violation fails to exercise the opportunity for a hearing, the commissioner, after determining that a violation occurred and the amount of the penalty that is warranted, may impose a penalty and shall issue an order requiring the person to pay any penalty imposed.

(e)iiNot later than the 30th day after the date the commissioner issues an order after determining that a violation occurred, the commissioner shall inform the person charged with the violation of the amount of any penalty imposed.

(f)iiThe commissioner may consolidate a hearing under this section with another proceeding.

Sec.i1958.255.iiOPTIONS FOLLOWING DECISION: PAY OR APPEAL. (a) Not later than the 30th day after the date the commissioner's decision or order becomes final as provided by Section 2001.144, Government Code, the person shall:

(1)iipay the administrative penalty; or

(2)iifile a petition for judicial review contesting the fact of the violation, the amount of the penalty, or both.

(b)iiWithin the 30-day period, a person who acts under Subsection (a)(2) may stay enforcement of the penalty by:

(1)iipaying the penalty to the commissioner for placement in an escrow account; or

(2)iigiving the commissioner a bond in a form approved by the commissioner that:

5634 78th LEGISLATURE — REGULAR SESSION

(A)iiis for the amount of the penalty; and

(B)iiis effective until judicial review of the commissioner's decision or order is final.

Sec.i1958.256.iiCOLLECTION OF PENALTY. At the request of the commissioner, the attorney general may bring a civil action to recover an administrative penalty imposed under this subchapter.

Sec.i1958.257.iiJUDICIAL REVIEW. Judicial review of a decision or order of the commissioner imposing a penalty under this subchapter is instituted by filing a petition with a district court in Travis County and is under the substantial evidence rule as provided by Subchapter G, Chapter 2001, Government Code.

Sec.i1958.258.iiREMITTANCE OF PENALTY AND INTEREST OR RELEASE OF BOND. If after judicial review the administrative penalty is reduced or is not upheld by the court, the commissioner shall:

(1)iiremit the appropriate amount, plus accrued interest, to the person not later than the 30th day after the date of the determination, if the person paid the penalty; or

(2)iiexecute a release of the bond, if the person gave a bond.

[Sections 1958.259-1958.300 reserved for expansion]

SUBCHAPTER G.iiOTHER PENALTIES; ENFORCEMENT PROVISIONS;

EXEMPTIONS FROM CIVIL LIABILITY

Sec.i1958.301.iiCIVIL PENALTY. (a) A person who violates this chapter or a rule adopted under this chapter is liable for a civil penalty in an amount not to exceed $2,000 for the first violation or $10,000 for a second or later violation.

(b)iiThe commissioner may request the attorney general or the district, county, or city attorney having jurisdiction to bring an action to collect a civil penalty under this section.

Sec.i1958.302.iiINJUNCTIVE RELIEF. The commissioner may request the attorney general or the district, county, or city attorney having jurisdiction to bring an action for a restraining order, injunction, or other relief the court determines is appropriate if it appears to the department that a person is violating or has violated this chapter or a rule adopted under this chapter.

Sec.i1958.303.iiEXEMPTION FROM CIVIL LIABILITY FOR CERTAIN PROPERTY OWNERS. A property owner is not liable for damages related to mold remediation on a property if:

(1)iia certificate of mold remediation has been issued under this chapter for that property; and

(2)iithe damages accrued on or before the date of the issuance of the certificate.

Sec.i1958.304.iiEXEMPTION FROM CIVIL LIABILITY FOR CERTAIN GOVERNMENTAL ENTITIES. A person is not liable in a civil lawsuit for damages related to a decision to allow occupancy of a property after mold remediation has been performed on the property if:

(1)iia certificate of mold remediation has been issued under this chapter for the property;

(2)iithe property is owned or occupied by a governmental entity, including a school; and

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5635

(3)iithe decision was made by the owner, occupier, or any person authorized by the owner or occupier to make the decision.

SECTIONi2.iiSubchapter B, Chapter 21, Insurance Code, is amended by adding Article 21.21-11 to read as follows:

Art.i21.21-11.iiPROHIBITION OF CERTAIN UNDERWRITING DECISIONS BASED ON PREVIOUS MOLD CLAIM OR DAMAGE

Sec.i1.iiDEFINITIONS. In this article:

(1)ii"Insurer" means an insurance company, reciprocal or interinsurance exchange, mutual insurance company, capital stock company, county mutual insurance company, farm mutual insurance company, Lloyd's plan, or other legal entity authorized to write residential property insurance in this state. The term includes an affiliate, as described by Section 823.003(a), if that affiliate is authorized to write and is writing residential property insurance in this state. The term does not include:

(A)iian eligible surplus lines insurer regulated under Chapter 981;

(B)iithe Texas Windstorm Insurance Association under Article 21.49; or

(C)iithe FAIR Plan Association under Article 21.49A.

(2)ii"Mold" means any living or dead fungi or related products or parts, including spores, hyphae, and mycotoxins.

(3)ii"Mold remediation" means the removal, cleaning, sanitizing, demolition, or other treatment, including preventive activities, of mold or mold-contaminated matter that was not purposely grown at that location.

(4)ii"Residential property insurance" means insurance against damage to or loss of real or tangible personal property at a fixed location provided in a homeowners insurance policy or residential fire and allied lines insurance policy.

Sec.i2.iiAPPLICABILITY. This article applies to each insurer that writes residential property insurance in this state.

Sec.i3.iiPROHIBITION. An insurer may not make an underwriting decision regarding a residential property insurance policy based on previous mold damage or a claim for mold damage if:

(1)iithe applicant for insurance coverage has property eligible for coverage under a residential property policy;

(2)iithe property has had mold damage;

(3)iimold remediation has been performed on the property; and

(4)iithe property was:

(A)iiremediated, as evidenced by a certificate of mold remediation issued to the property owner under Section 1958.154, Occupations Code, that establishes that the underlying cause of the mold at the property has been remediated; or

(B)iiinspected by an independent assessor or adjustor who determined, based on the inspection, that the property does not contain evidence of mold damage.

Sec.i4.iiRULES. The commissioner shall adopt rules as necessary to implement this article.

5636 78th LEGISLATURE — REGULAR SESSION

Sec.i5.iiPENALTY. An insurer that violates this article is subject, after notice and opportunity for hearing, to sanctions as provided by Chapters 82, 83, and 84 of this code.

SECTIONi3.iiThe Texas Board of Health shall adopt the rules required by Chapter 1958, Occupations Code, as added by this Act, not later than April 1, 2004.

SECTIONi4.ii(a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2003.

(b)iiA person is not required to comply with Section 1958.101(a), Occupations Code, as added by this Act, until appropriate rules have been adopted under Section 3 of this Act.

Representative Naishtat moved to adopt the conference committee report on HBi329.

The motion prevailed.

HB 335 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hamric submitted the following conference committee report on HB 335 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi335 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 335, A bill to be entitled An Act relating to the public sale of certain real property; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubchapter C, Chapter 34, Civil Practice and Remedies Code, is amended by adding Section 34.0445 to read as follows:

Sec.i34.0445.iiPERSONS ELIGIBLE TO PURCHASE REAL PROPERTY. (a) An officer conducting a sale of real property under this subchapter may not execute or deliver a deed to the purchaser of the property unless the purchaser exhibits to the officer an unexpired written statement issued to the person in the

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5637

(1)iithere are no delinquent ad valorem taxes owed by the person to that county; and

(2)iifor each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality.

(b)iiAn individual may not bid on or purchase the property in the name of any other individual. An officer conducting a sale under this subchapter may not execute a deed in the name of or deliver a deed to any person other than the person who was the successful bidder.

(c)iiThe deed executed by the officer conducting the sale must name the successful bidder as the grantee and recite that the successful bidder exhibited to that officer an unexpired written statement issued to the person in the manner prescribed by Section 34.015, Tax Code, showing that the county assessor-collector of the county in which the sale was conducted determined that:

(1)iithere are no delinquent ad valorem taxes owed by the person to that county; and

(2)iifor each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality.

(d)iiIf a deed contains the recital required by Subsection (c), it is conclusively presumed that this section was complied with.

(e)iiA person who knowingly violates this section commits an offense. An offense under this subsection is a Class B misdemeanor.

(f)iiTo the extent of a conflict between this section and any other law, this section controls.

SECTIONi2.iiSubchapter A, Chapter 34, Tax Code, is amended by adding Section 34.015 to read as follows:

Sec.i34.015.iiPERSONS ELIGIBLE TO PURCHASE REAL PROPERTY. (a) In this section, "person" does not include a taxing unit or an individual acting on behalf of a taxing unit.

(b)iiAn officer conducting a sale of real property under Section 34.01 may not execute a deed in the name of or deliver a deed to any person other than the person who was the successful bidder. The officer may not execute or deliver a deed to the purchaser of the property unless the purchaser exhibits to the officer an unexpired written statement issued under this section to the person by the county assessor-collector of the county in which the sale is conducted showing that:

(1)iithere are no delinquent taxes owed by the person to that county; and

(2)iifor each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality.

5638 78th LEGISLATURE — REGULAR SESSION

(c)iiOn the written request of any person, a county assessor-collector shall issue a written statement stating whether there are any delinquent taxes owed by the person to that county or to a school district or municipality having territory in that county. A request for the issuance of a statement by the county assessor-collector under this subsection must:

(1)iisufficiently identify any property subject to taxation by the county or by a school district or municipality having territory in the county, regardless of whether the property is located in the county, that the person owns or formerly owned so that the county assessor-collector and the collector for each school district or municipality having territory in the county may determine whether the property is included on a current or a cumulative delinquent tax roll for the county, the school district, or the municipality under Section 33.03;

(2)iispecify the address to which the county assessor-collector should send the statement;

(3)iiinclude any additional information reasonably required by the county assessor-collector; and

(4)iibe sworn to and signed by the person requesting the statement.

(d)iiOn receipt of a request under Subsection (c), the county assessor-collector shall send to the collector for each school district and municipality having territory in the county, other than a school district or municipality for which the county assessor-collector is the collector, a request for information as to whether there are any delinquent taxes owed by the person to that school district or municipality. The county assessor-collector shall specify the date by which the collector must respond to the request.

(e)iiIf the county assessor-collector determines that there are delinquent taxes owed to the county, the county assessor-collector shall include in the statement issued under Subsection (c) the amount of delinquent taxes owed by the person to that county. If the county assessor-collector is the collector for a school district or municipality having territory in the county and the county assessor-collector determines that there are delinquent ad valorem taxes owed by the person to the school district or municipality, the assessor-collector shall include in the statement issued under Subsection (c) the amount of delinquent taxes owed by the person to that school district or municipality.

(f)iiIf the county assessor-collector receives a response from the collector for a school district or municipality having territory in the county indicating that there are delinquent taxes owed to that school district or municipality on the person's current or former property for which the person is personally liable, the county assessor-collector shall include in the statement issued under Subsection (c):

(1)iithe amount of delinquent taxes owed by the person to that school district or municipality; and

(2)iithe name and address of the collector for that school district or municipality.

(g)iiIf the county assessor-collector determines that there are no delinquent taxes owed by the person to the county or to a school district or municipality for which the county assessor-collector is the collector, the county assessor-collector

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5639

(h)iiIf the county assessor-collector receives a response from the collector for any school district or municipality having territory in that county indicating that there are no delinquent ad valorem taxes owed by the person to that school district or municipality, the county assessor-collector shall indicate in the statement issued under Subsection (c) that there are no delinquent ad valorem taxes owed by the person to that school district or municipality.

(i)iiIf the county assessor-collector does not receive a response from the collector for any school district or municipality to whom the county assessor-collector sent a request under Subsection (d) as to whether there are delinquent taxes on the person's current or former property owed by the person to that school district or municipality, the county assessor-collector shall indicate in the statement issued under Subsection (c) that there are no reported delinquent taxes owed by the person to that school district or municipality.

(j)iiTo cover the costs associated with the issuance of statements under Subsection (c), a county assessor-collector may charge the person requesting a statement a fee not to exceed $10 for each statement requested.

(k)iiA statement under Subsection (c) must be issued in the name of the requestor, bear the requestor's name, include the dates of issuance and expiration, and be eligible for recording under Section 12.001(b), Property Code. A statement expires on the 90th day after the date of issuance.

(l)iiThe deed executed by the officer conducting the sale must name the successful bidder as the grantee and recite that the successful bidder exhibited to that officer an unexpired written statement issued to the person in the manner prescribed by this section, showing that the county assessor-collector of the county in which the sale was conducted determined that:

(1)iithere are no delinquent ad valorem taxes owed by the person to that county; and

(2)iifor each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality.

(m)iiIf a deed contains the recital required by Subsection (l), it is conclusively presumed that this section was complied with.

(n)iiA person who knowingly violates this section commits an offense. An offense under this subsection is a Class B misdemeanor.

(o)iiTo the extent of a conflict between this section and any other law, this section controls.

SECTIONi3.iiThis Act takes effect September 1, 2003. The change in law made by this Act applies only to a public sale of real property conducted on or after October 1, 2003. A public sale of real property conducted before October 1, 2003, is governed by the law in effect on the date the sale was conducted, and the former law is continued in effect for that purpose.

5640 78th LEGISLATURE — REGULAR SESSION

Representative Hamric moved to adopt the conference committee report on HBi335.

The motion prevailed.

HB 2075 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hilderbran submitted the following conference committee report on HB 2075 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi2075 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 2075, A bill to be entitled An Act relating to regulating health and safety conditions at youth camps.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 141.007, Health and Safety Code, is amended by adding Subsections (d), (e), (f), and (g) to read as follows:

(d)iiAn employee or agent of the department who enters a youth camp to investigate and inspect conditions shall:

(1)iinotify the person in charge of the camp or the person's designee of any violations as they are discovered; and

(2)iiallow the camp to correct the violations while the investigation and inspection is occurring.

(e)iiThe department may not extend or delay an investigation or inspection to allow the youth camp to correct a violation under Subsection (d)(2).

(f)iiAn employee or agent of the department performing an investigation and inspection under this section may not report a violation that is significant under the department's rules if the violation is corrected during the investigation and inspection.

(g)iiA penalty may not be imposed on a youth camp for a violation that is significant under the department's rules if the violation is corrected during an investigation and inspection under this section.

SECTIONi2.iiSection 141.008(a), Health and Safety Code, is amended to read as follows:

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(a)iiThe board may adopt rules to implement this chapter. In adopting the rules the board shall comply with Subchapter B, Chapter 2001, Government Code, including Sections 2001.032(b) and 2001.033, Government Code. In developing the rules, the board shall consult parents, youth camp operators, and appropriate public and private officials and organizations.

SECTIONi3.iiSection 141.010, Health and Safety Code, is amended to read as follows:

Sec.i141.010.iiADVISORY COMMITTEE. (a) The board shall appoint a committee to advise the board in the development of standards and procedures, make recommendations to the board regarding the content of the rules adopted to implement this Act, and perform any other functions requested by the board in the implementation and administration of the Act.

(b)iiThe advisory committee may not exceed nine members, at least two of whom shall be members of the general public. The other members should be experienced camping professionals who represent the camping communities of the state. In making the appointments, the board shall attempt to reflect the geographic diversity of the state iniproportion to the number of camps licensed by the department in each geographic area of the state.

[(c)iiA person is not eligible to be appointed and serve as a public member of an advisory committee if the person or the person's spouse:

[(1)iiis licensed by an occupational regulatory agency in the health care field;

[(2)iiis employed by a health care facility, corporation, or agency or by a corporation authorized to underwrite health care insurance;

[(3)iigoverns or administers a health care facility, corporation, or agency;

[(4)iihas a financial interest, other than a consumer's interest, in a health care facility, corporation, or agency; or

[(5)iiis a youth camp operator; is employed by a youth camp facility or a youth camp operator; governs or administers a youth camp facility, corporation, or agency; or has a financial interest, other than a consumer's interest, in a youth camp facility, corporation, or agency.]

(c)iiAdvisory committee members serve for staggered six-year terms, with the terms of three members expiring on August 31 of each odd-numbered year.

(d)iiA vacancy on the advisory committee is filled by the board in the same manner as other appointments to the advisory committee.

(e)iiThe advisory committee will meet annually and at the call of the commissioner.

(f)ii[A member of the advisory committee is entitled to reimbursement for expenses incurred in performing duties under this Act. The reimbursement may not exceed the amount specified in the General Appropriations Act for travel and per diem allowances for state employees.

[(g)]iiThe advisory committee may elect a chairperson, vice-chairperson, and secretary from among its members and may adopt rules for the conduct of its own activities.

5642 78th LEGISLATURE — REGULAR SESSION

SECTIONi4.iiSection 141.016(c), Health and Safety Code, is amended to read as follows:

(c)iiThe penalty may not exceed $1,000 [$2,000] a day for each violation.

SECTIONi5.iiSubsections (d), (e), (f), and (g), Section 141.007, Health and Safety Code, as added by Section 1 of this Act, apply only to an investigation and inspection of a youth camp that occurs on or after the effective date of Section 1 of this Act. An investigation and inspection that occurred before the effective date of Section 1 of this Act is governed by the law in effect on the date the investigation and inspection occurred, and the former law is continued in effect for that purpose.

SECTIONi6.iiThis Act takes effect September 1, 2003.

Representative Hilderbran moved to adopt the conference committee report on HBi2075.

The motion prevailed.

HB 2415 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hopson submitted the following conference committee report on HB 2415 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi2415 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 2415, A bill to be entitled An Act relating to the postjudgment interest rate.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 304.003(c), Finance Code, is amended to read as follows:

(c)iiThe postjudgment interest rate is:

(1)iithe prime rate as published by the Federal Reserve Bank of New York on [auction rate quoted on a discount basis for 52-week treasury bills issued by the United States government as most recently published by the Federal Reserve Board before] the date of computation;

(2)iifive [10] percent a year if the weekly average one-year constant maturity treasury yield [auction rate] described by Subdivision (1) is less than five [10] percent; or

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5643

(3)ii15 [20] percent a year if the weekly average one-year constant maturity treasury yield [auction rate] described by Subdivision (1) is more than 15 [20] percent.

SECTIONi2.i(a) The changes in law made by this Act apply in a case in which a final judgment is signed or subject to appeal on or after the effective date of this Act.

(b) This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Representative Hopson moved to adopt the conference committee report on HBi2415.

A record vote was requested.

The motion prevailed by (Record 909): 142 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Callegari; Campbell; Canales; Capelo; Casteel; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

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

Absent — Burnam; Castro; Chavez; Homer; Jones, E.; Madden.

HB 3622 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative B. Brown submitted the following conference committee report on HB 3622 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

5644 78th LEGISLATURE — REGULAR SESSION

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi3622 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 3622, A bill to be entitled An Act relating to the creation, administration, powers, duties, operation, and financing of the Kingsborough Municipal Utility District Nos. 1, 2, 3, 4, and 5 of Kaufman County.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiDEFINITIONS. In this Act:

(1)ii"Board" or "boards" means, as appropriate, the board of directors of one or all of the Kingsborough municipal utility districts.

(2)ii"Commission" means the Texas Commission on Environmental Quality.

(3)ii"District" or "districts" means, as appropriate, one or all of the Kingsborough Municipal Utility District Nos. 1, 2, 3, 4, and 5 of Kaufman County.

SECTIONi2.iiCREATION. (a) Five conservation and reclamation districts, to be known as the Kingsborough Municipal Utility District Nos. 1, 2, 3, 4, and 5 of Kaufman County, are created in Kaufman County, subject to approval at a confirmation election under Section 13 of this Act.

(b)iiEach district is a governmental agency and a political subdivision of this state.

SECTIONi3.iiAUTHORITY FOR CREATION. Each district is created under and is essential to accomplish the purposes of Section 52, Article III, and Section 59, Article XVI, Texas Constitution.

SECTIONi4.iiFINDING OF BENEFIT AND PUBLIC PURPOSE. (a) Each district is created to serve a public use and benefit.

(b)iiAll of the land and other property included within the boundaries of each district will be benefited by the works and projects that are to be accomplished by the district under powers conferred by Section 52, Article III, and Section 59, Article XVI, Texas Constitution.

SECTIONi5.iiBOUNDARIES. The boundaries of each district are as follows:

(1)iiKingsborough Municipal Utility District No. 1:

BEING all that certain lot, tract or parcel of land located in the J.iG. Moore Survey, Abstract No. 309 and the Martha Musick Survey, Abstract No. 312, Kaufman County, Texas, and being more particularly described by metes and bounds as follows:

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5645

COMMENCING at the intersection of the of the Northeasterly right-of-way line of Farm-Market 2757 (a 100 foot wide right-of-way), and the Northwesterly line of said J.iG. Moore Survey and the Southeasterly line of said Martha Musick Survey;

THENCE North 44 deg. 34 min. 48 sec. East, along the common line between said J.iG. Moore Survey and the Martha Musick Survey, a distance of 1644.55 feet, to the POINT OF BEGINNING of the herein described tract of land;

THENCE North 44 deg. 34 min. 48 sec. East, continuing along the common line between said J.iG. Moore Survey and the Martha Musick Survey, a distance of 2015.87 feet;

THENCE North 44 deg. 20 min. 17 sec. West, departing said common line, a distance of 763.42 feet;

THENCE North 44 deg. 46 min. 22 sec. East, a distance of 110.79 feet;

THENCE North 45 deg. 13 min. 38 sec. West, a distance of 1367.42 feet;

THENCE North 44 deg. 46 min. 22 sec. East, a distance of 247.49 feet;

THENCE South 68 deg. 13 min. 38 sec. East, a distance of 627.70 feet;

THENCE North 44 deg. 26 min. 44 sec. East, a distance of 853.26 feet;

THENCE North 45 deg. 59 min. 01 sec. West, a distance of 1118.32 feet;

THENCE North 25 deg. 16 min. 32 sec. East, a distance of 918.27 feet;

THENCE North 27 deg. 53 min. 12 sec. East, a distance of 712.32 feet;

THENCE North 44 deg. 02 min. 09 sec. East, a distance of 693.71 feet, to the Southwesterly right-of-way line of High Country Lane (a 60 foot wide right-of-way);

THENCE South 45 deg. 14 min. 23 sec. East, along the Southwesterly right-of-way line of said High Country Lane, a distance of 263.11 feet, to the intersection of the Southwesterly right-of-way line of said High Country Lane and the Southwesterly right-of-way line of Farm-Market 741 (a variable width right-of-way), and being the beginning of a non-tangent curve to the left having a radius of 999.93 feet;

THENCE along the Southwesterly right-of-way line of said Farm-Market 741 as follows;

Along said non-tangent curve to the left and in a Southeasterly direction, through a central angle of 09 deg. 56 min. 12 sec., an arc length of 173.42 feet, said non-tangent curve also having a long chord which bears South 40 deg. 16 min. 17 sec. East, 173.20 feet;

South 45 deg. 14 min. 23 sec. East, a distance of 1653.79 feet, to the beginning of a non-tangent curve to the left having a radius of 11,472.09 feet;

Along said non-tangent curve to the left and in a Southeasterly direction, through a central angle of 03 deg. 05 min. 42 sec., an arc length of 619.69 feet, said non-tangent curve to the left having a long chord which bears South 46 deg. 47 min. 14 sec. East, 619.62 feet;

South 45 deg. 21 min. 23 sec. East, a distance of 182.35 feet, to the beginning of a non-tangent curve to the left having a radius of 2993.57 feet;

5646 78th LEGISLATURE — REGULAR SESSION

Along said non-tangent curve to the left and in a Southeasterly direction, through a central angle of 04 deg. 13 min. 00 sec., an arc length of 220.31 feet, said non-tangent curve to the left also having a long chord which bears South 47 deg. 27 min. 53 sec. East, 220.26 feet;

South 49 deg. 34 min. 23 sec. East, a distance of 222.84 feet, to the beginning of a curve to the left having a radius of 1858.59 feet;

Along said curve to the left and in a Southeasterly direction, through a central angle of 07 deg. 34 min. 00 sec., an arc length of 245.45 feet, said curve to the left also having a long chord which bears South 53 deg. 21 min. 23 sec. East, 245.27 feet;

South 57 deg. 08 min. 23 sec. East, a distance of 300.24 feet, to the beginning of a curve to the left having a radius of 11,472.09 feet;

Along said curve to the left and in a Southwesterly direction, through a central angle of 02 deg. 58 min. 15 sec., an arc length of 594.81 feet, said curve to the left also having a long chord which bears South 55 deg. 39 min. 16 sec. East, 594.75 feet;

South 57 deg. 06 min. 23 sec. East, a distance of 327.99 feet, to the beginning of a curve to the right having a radius of 5684.58 feet;

Along said curve to the right and in a Southeasterly direction, through a central angle of 12 deg. 08 min. 00 sec., an arc length of 1203.80 feet, said curve also having a long chord which bears South 51 deg. 02 min. 23 sec. East, 1201.56 feet;

South 44 deg. 58 min. 23 sec. East, a distance of 755.25 feet;

South 45 deg. 13 min. 23 sec. East, a distance of 238.92 feet, to the North corner of the Dallas East Estates which is located to the Southwest of said Farm-Market 741;

THENCE South 44 deg. 19 min. 24 sec. West, departing the Southwesterly right-of-way line of said Farm-Market 741 and along the Northwesterly boundary line of said Dallas East Addition, a distance of 1401.27 feet, to the most Westerly corner of said Dallas East Addition;

THENCE South 44 deg. 45 min. 48 sec. East, along the most Southwesterly boundary line of said Dallas East Addition, a distance of 1444.80 feet, to the Northwesterly right-of-way line of said Farm-Market 741;

THENCE along the Northwesterly right-of-way line of said Farm-Market 741 as follows;

South 44 deg. 20 min. 25 sec. West, a distance of 545.05 feet;

North 45 deg. 39 min. 35 sec. West, a distance of 10.00 feet;

South 44 deg. 20 min. 25 sec. West, a distance of 700.00 feet;

South 45 deg. 39 min. 35 sec. East, a distance of 10.00 feet;

South 44 deg. 20 min. 25 sec. West, a distance of 933.41 feet;

THENCE North 49 deg. 43 min. 48 sec. East, departing the Northwesterly right-of-way line of said Farm-Market 741, a distance of 794.74 feet;

THENCE North 78 deg. 41 min. 33 sec. West, a distance of 280.00 feet;

THENCE North 46 deg. 19 min. 02 sec. West, a distance of 1073.59 feet;

THENCE North 66 deg. 21 min. 14 sec. East, a distance of 1045.54 feet;

THENCE South 81 deg. 36 min. 53 sec. West, a distance of 327.60 feet;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5647

THENCE South 72 deg. 56 min. 15 sec. West, a distance of 778.38 feet;

THENCE South 87 deg. 16 min. 19 sec. West, a distance of 610.31 feet;

THENCE North 77 deg. 32 min. 02 sec. West, a distance of 731.98 feet;

THENCE North 58 deg. 36 min. 37 sec. West, a distance of 578.95 feet, to the POINT OF BEGINNING and containing 692.696 acres (30,173,840 square feet) of land.

(2)iiKingsborough Municipal Utility District No. 2:

BEING all that certain lot, tract or parcel of land located in the J. G. Moore Survey, Abstract No. 309, Kaufman County, Texas, and being a portion of that certain tract of land described as Tract K31 in the deed to West Foundation, according to the deed filed for record in Volume 720, Page 860 of the Deed Records of Kaufman County, Texas, and being more particularly described by metes and bounds as follows:

BEGINNING at the intersection of the Southwesterly boundary line of said Tract K31 and the Southeasterly right-of-way line of Farm-Market 741 (a 90 foot wide right-of-way), said iron rod being in the center of County Road No. 269;

THENCE along the Southwesterly right-of-way line of said Farm-Market 741 as follows:

North 43 deg. 59 min. 38 sec. East, along the Southeasterly right-of-way line of said Farm-Market 741, a distance of 2525.09 feet;

North 44 deg. 20 min. 25 sec. East, a distance of 4582.54 feet, to the beginning of a curve to the left having a radius of 761.20 feet;

Along said curve to the left, through a central angle of 11 deg. 23 min. 36 sec., an arc length of 151.37 feet and having a long chord which bears North 38 deg. 38 min. 37 sec. East, 151.12 feet;

North 44 deg. 20 min. 25 sec. East, a distance of 463.83 feet, to the beginning of a curve to the left having a radius of 127.30 feet;

Along said curve to the left, through a central angle of 40 deg. 09 min. 07 sec., an arc length of 89.21 feet and having a long chord which bears North 24 deg. 15 min. 15 min. East, 87.40 feet;

THENCE North 44 deg. 20 min. 24 sec. East, along the Northwesterly line of said Tract K31, a distance of 14.48 feet, to a point in County Road No. 260 (an undefined width right of way);

THENCE South 46 deg. 07 min. 54 sec. East, along said County Road No. 260, a distance of 3434.03 feet;

THENCE South 44 deg. 14 min. 23 sec. West, departing said County Road No. 260, a distance of 5193.79 feet, to the beginning of a non-tangent curve to the left having a radius of 2640.00 feet;

THENCE along said non-tangent curve to the left, through a central angle of 90 deg. 07 min. 01 sec., an arc length of 4152.29 feet, and having a long chord which bears South 89 deg. 10 min. 52 sec. West, 3737.33 feet, to a point in County Road No. 269 (an undefined width right-of-way);

THENCE North 45 deg. 52 min. 38 sec. West, along said County Road No. 269, a distance of 747.41 feet to the POINT OF BEGINNING and containing 484.081 acres (21,086,547 square feet) of land.

(3)iiKingsborough Municipal Utility District No. 3:

5648 78th LEGISLATURE — REGULAR SESSION

BEING all that certain lot, tract or parcel of land located in the J. G. Moore Survey, Abstract No. 309, Kaufman County, Texas, and being more particularly described by metes and bounds as follows:

BEGINNING at the intersection of the of the Northeasterly right-of-way line of Farm-Market 2757 (a 100 foot wide right-of-way), and the Northwesterly line of said J. G. Moore Survey and the Southeasterly line of said Martha Musick Survey;

THENCE North 44 deg. 34 min. 48 sec. East, along the common line between said J. G. Moore Survey and the Martha Musick Survey, a distance of 1644.55 feet;

THENCE South 58 deg. 36 min. 37 sec. East, departing said common line, a distance of 578.95 feet;

THENCE South 77 deg. 32 min. 02 sec. East, a distance of 731.98 feet;

THENCE North 87 deg. 16 min. 19 sec. East, a distance of 610.31 feet;

THENCE North 72 deg. 56 min. 15 sec. East, a distance of 778.38 feet;

THENCE North 81 deg. 36 min. 53 sec. East, a distance of 327.60 feet;

THENCE South 66 deg. 21 min. 14 sec. East, a distance of 1045.54 feet;

THENCE South 46 deg. 19 min. 02 sec. East, a distance of 1073.59 feet;

THENCE South 78 deg. 41 min. 33 sec. East, a distance of 280.00 feet;

THENCE South 49 deg. 43 min. 48 sec. East, a distance of 794.74 feet, to a point on the Northwesterly right-of-way line of Farm- Market 741 (an 80 foot wide right-of-way);

THENCE along the Northwesterly right-of-way line of said Farm- Market 741 as follows;

South 44 deg. 20 min. 25 sec. West, a distance of 1657.58 feet;

South 43 deg. 59 min. 38 sec. West, a distance of 2422.82 feet, to the intersection of the Northwesterly right-of-way line of said Farm-Market 741 and the Northeasterly right-of-way line of the aforementioned Farm-Market 2757;

THENCE along the Northeasterly right-of-way line of said Farm-Market 2757 as follows;

South 89 deg. 23 min. 24 sec. West, a distance of 138.28 feet;

North 44 deg. 17 min. 39 sec. West, a distance of 1248.09 feet;

North 45 deg. 23 min. 39 sec. West, a distance of 624.62 feet;

North 45 deg. 36 min. 39 sec. West, a distance of 3302.91 feet, to the POINT OF BEGINNING and containing 392.241 acres (17,086,006 square feet) of land.

(4)iiKingsborough Municipal Utility District No. 4:

BEING all that certain lot, tract or parcel of land located in the Martha Musick Survey, Abstract No. 312 and the J. G. Moore Survey, Abstract No. 309, Kaufman County, Texas, and being the remainder of those certain tracts of land described as Tracts K14 through K20, in the deed the West Foundation, as filed for record in Volume 720, Page 860 of the Deed Records of Kaufman County, Texas, and being more particularly described by metes and bounds as follows:

BEGINNING at the intersection of the Southerly right-of-way line of Interstate 20 (a variable width right-of-way) and the Southeasterly right-of-way line of Farm-Market 741 (a variable width right-of-way at this point);

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5649

THENCE along the Southerly right-of-way line of said Interstate 20 as follows;

North 83 deg. 22 min. 27 sec. East, a distance of 751.86 feet; North 88 deg. 29 min. 25 sec. East, a distance of 474.54 feet; South 84 deg. 18 min. 42 sec. East, a distance of 952.45 feet; South 78 deg. 59 min. 16 sec. East, a distance of 4.49 feet to the intersection of the Southerly right-of-way line of Interstate 20 and the Northeasterly boundary line of the aforementioned Tract K17, said point also being the intersection of the said Southerly right-of-way line and the Southwesterly boundary line of that certain called 113.75 acre tract of land conveyed to Austin W. Shipley, according to the deed filed for record in Volume 270, Page 221, Deed Records, Kaufman County, Texas;

THENCE South 45 deg. 06 min. 28 sec. East, along the common boundary line between said Tract K17 and said called 113.75 acre tract, at a distance of approximately 1240 feet passing the most Southerly corner of said called 113.75 acre tract and the East corner of that certain tract of land conveyed to Gordon T. West, according to the deed filed for record in Volume 1636, Page 43, Deed Records, Kaufman County, Texas, and continuing along the common boundary line between said Tract K17 and said Gordon T. West tract, in all a distance of 2131.39 feet to the Northwest boundary line of that certain called 300 acre tract of land conveyed to Gordon T. West, according to the deed filed for record in Volume 1636, Page 43, Deed Records, Kaufman County, Texas;

THENCE South 44 deg. 34 min. 38 sec. West, along the common boundary line of said Tract K17 and said called 300 acre tract, and generally along a barbed wire fence, a distance of 1891.96 feet, to the South corner of said Tract K17 and the West corner of said called 300 acre tract, said iron rod also being the North corner of the aforementioned Tract K19;

THENCE South 46 deg. 09 min. 59 sec. East, along the common boundary line between said called 300 acre tract and said Tract K19, a distance of 3513.32 feet, to the Northwesterly right-of-way line of Griffin Lane (a 50 foot wide right-of-way);

THENCE South 43 deg. 50 min. 01 sec. West, along the Northwesterly right-of-way line of said Griffin Lane, a distance of 2649.80 feet, to the Northeasterly right-of-way line of the aforementioned Farm-Market 741;

THENCE along the Northeasterly right-of-way line of said Farm-Market 741 as follows;

North 45 deg. 13 min. 23 sec. West, a distance of 4.98 feet;

North 44 deg. 58 min. 23 sec. West, at a distance of 632.24 feet passing a wood monument found, and continuing in all a distance of 755.05 feet, said point being the beginning of a curve to the left having a radius of 5774.58 feet;

Along said curve to the left, through a central angle of 12 deg. 08 min. 00 sec., an arc length of 1222.86 feet, and having a long chord of North 51 deg. 02 min. 23 sec. West, 1220.58 feet;

North 57 deg. 06 min. 23 sec. West, generally along a barbed wire fence, a distance of 328.05 feet, said point being the beginning of a curve to the right having a radius of 11,382.09 feet;

5650 78th LEGISLATURE — REGULAR SESSION

Along said curve to the right and along said fence, through a central angle of 11 deg. 54 min. 00 sec., an arc length of 2363.99 feet, and having a long chord which bears North 51 deg. 11 min. 23 sec. West, 2359.75 feet;

North 45 deg. 14 min. 23 sec. West, generally along said fence, a distance of 1653.79 feet, said point being the beginning of a curve to the right having a radius of 909.93 feet;

THENCE along said curve to the right and along the Easterly right-of-way line of said Farm-Market 741 and generally along said fence, through a central angle of 90 deg. 33 min. 04 sec., an arc length of 1438.07 feet, and having a long chord which bears North 00 deg. 02 min. 09 sec. East, 1293.01 feet;

THENCE along the Southeasterly right-of-way line of said Farm-Market 741 as follows;

North 45 deg. 18 min. 41 sec. East, a distance of 199.54 feet;

North 46 deg. 06 min. 41 sec. East, a distance of 1039.75 feet;

North 46 deg. 21 min. 41 sec. East, a distance of 759.38 feet, said point being the beginning of a curve to the left having a radius of 999.93 feet;

Along said curve to the left, through a central angle of 14 deg. 28 min. 00 sec., an arc length of 252.47 feet, and having a long chord which bears North 39 deg. 07 min. 41 sec. East, 251.80 feet;

North 31 deg. 53 min. 41 sec. East, a distance of 210.50 feet, said point being the beginning of a curve to the right having a radius of 909.38 feet;

Along said curve to the right, through a central angle of 01 deg. 00 min. 31 sec., an arc length of 16.01 feet, and having a long chord which bears North 32 deg. 23 min. 57 sec. East, 16.01 feet to the POINT OF BEGINNING and containing 606.441 acres (26,416,564 square feet) of land.

(5)iiKingsborough Municipal Utility District No. 5:

BEING all that certain lot, tract or parcel of land located in the J. G. Moore Survey, Abstract No. 309, Kaufman County, Texas, and being a portion of that certain tract of land described as Tract K31 in the deed to West Foundation, according to the deed filed for record in Volume 720, Page 860 of the Deed Records of Kaufman County, Texas, and being more particularly described by metes and bounds as follows:

BEGINNING at a 5/8 inch iron rod found for the South corner of said Tract K31, said iron rod being in County Road No. 269 (an undefined width public roadway);

THENCE North 45 deg. 52 min. 38 sec. West, along the Southwest boundary line of said Track K31, and generally along said County Road No. 269, a distance of 2640.00 feet, said point being the beginning of a non-tangent curve to the right having a radius of 2640.00 feet;

THENCE departing the Southwest boundary line of said Tract K31, through a central angle of 90 deg. 07 min. 01 sec., an arc length of 4152.29 feet, said non-tangent curve also having a long chord which bears North 89 deg. 10 min. 52 sec. East, a distance of 3737.33 feet, to the Southeast boundary line of said Tract K31;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5651

THENCE South 44 deg. 14 min. 23 sec. West, along the Southeast boundary line of said Tract K31, a distance of 2640.00 feet, to the POINT OF BEGINNING and containing 125.839 acres (5,481,550 square feet) of land.

SECTIONi6.iiFINDINGS RELATING TO BOUNDARIES. The legislature finds that the boundaries and field notes of each district form a closure. If a mistake is made in the field notes or in copying the field notes in the legislative process, the mistake does not affect in any way:

(1)iithe organization, existence, or validity of the district;

(2)iithe right of the district to impose taxes; or

(3)iithe legality or operation of the district or the board.

SECTIONi7.iiGENERAL POWERS. Each district has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution. This Act prevails over any provision of general law that is in conflict or inconsistent with this Act.

SECTIONi8.iiADDITIONAL POWERS. (a) Each district has the additional rights, powers, privileges, authority, and functions provided by this section.

(b)iiTo the extent authorized by Section 52, Article III, Texas Constitution, a district may provide for the construction, maintenance, and operation inside or outside the boundaries of the district of:

(1)iipaved roads and turnpikes; or

(2)iiworks, facilities, or improvements related to the roads and turnpikes.

SECTIONi9.iiBONDS. (a) Each district may issue bonds as provided by Chapters 49 and 54, Water Code, and the general laws of this state.

(b)iiA district may issue bonds, notes, or other obligations of the district to finance construction, maintenance, and operation under Section 8 of this Act and may impose a tax to pay the principal of or interest on bonds issued under this subsection.

(c)iiA district may not issue bonds under Subsection (b) of this section unless the issuance is approved by a vote of a two-thirds majority of the qualified voters of the district voting at an election called for that purpose. Bonds, notes, or other obligations issued or incurred under Subsection (b) of this section may not exceed one-fourth of the assessed value of the real property in the district.

(d)iiSections 49.181 and 49.182, Water Code, do not apply to projects undertaken by a district under Section 8(b) of this Act or to bonds issued by a district under Subsection (b) of this section.

SECTIONi10.iiEMINENT DOMAIN. (a) Within the boundaries of a district, a district may exercise the power of eminent domain for all public purposes.

(b)iiOutside the boundaries of a district, a district may exercise the power of eminent domain only for the purpose of constructing, acquiring, operating, repairing, or maintaining water supply lines or sanitary sewer lines.

(c)iiA district's power of eminent domain is exercised in the same manner as required for a county.

5652 78th LEGISLATURE — REGULAR SESSION

SECTIONi11.iiBOARD OF DIRECTORS. (a) Each district is governed by a board of five directors.

(b)iiTemporary directors serve until initial directors are elected under Section 13 of this Act.

(c)iiInitial directors serve until permanent directors are elected under Section 14 of this Act.

(d)iiPermanent directors serve staggered four-year terms.

(e)iiEach director must qualify to serve as director in the manner provided by Section 49.055, Water Code.

SECTIONi12.iiAPPOINTMENT OF TEMPORARY DIRECTORS. (a) On or after the effective date of this Act, a person who owns land in a district may submit a petition to the commission requesting that the commission appoint as temporary directors the five persons named in the petition.

(b)iiSubject to Subsection (e) of this section, the commission shall appoint as temporary directors the five persons named in the first petition received by the commission for each district.

(c)iiIf a temporary director fails to qualify for office, the commission shall appoint a person to fill the vacancy.

(d)iiAs soon as practicable after all of the temporary directors have qualified, the temporary directors shall meet and elect officers from among their membership.

(e)iiThe commission may appoint temporary directors for a district that is located wholly or partly within an area designated by ordinance or resolution of the City of Crandall as the water service area, extraterritorial jurisdiction, or corporate limits of that city only if the city has given its express written consent to the creation of the district. The City of Crandall may give its consent only on the execution of a written agreement between the developer of the district and the Crandall Independent School District providing that the developer of the district will:

(1)iifund the construction of buildings and improvements for the school district; and

(2)iiestablish an educational fund for the school district of an amount based on an annually determined transaction fee on the sale and resale of any home within the district boundaries for the duration of the existence of the district.

SECTIONi13.iiCONFIRMATION AND INITIAL DIRECTORS' ELECTION. (a) Subject to Subsection (b) of this section, the temporary board of directors of each district shall call and hold an election to confirm establishment of the district and to elect five initial directors in the manner provided by Chapter 49, Water Code.

(b)iiA temporary board of directors may call and hold an election to confirm establishment of a district that is located wholly or partly within an area designated by ordinance or resolution of the City of Crandall as the water service area, extraterritorial jurisdiction, or corporate limits of that city only if the city has given its express written consent to the creation of the district. The City of

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5653

(1)iifund the construction of buildings and improvements for the school district; and

(2)iiestablish an educational fund for the school district of an amount based on an annually determined transaction fee on the sale and resale of any home within the district boundaries for the duration of the existence of the district.

SECTIONi14.iiELECTION OF DIRECTORS. Each board shall call and hold elections to elect permanent directors in the manner provided by Chapter 49, Water Code.

SECTIONi15.iiEFFECTIVE DATE; EXPIRATION DATE. (a) This Act takes effect on the date on or after September 1, 2003, on which a settlement agreement between the City of Crandall and the developer of the districts is legally executed regarding a pending petition before the Texas Commission on Environmental Quality for the right to provide retail water service to certain areas within the districts. If the settlement agreement is legally executed before September 1, 2003, this Act takes effect September 1, 2003.

(b)iiIf the creation of a district is not confirmed at a confirmation election held under Section 13 of this Act before September 1, 2005, the provisions of this Act relating to that district expire on that date.

Representative B. Brown moved to adopt the conference committee report on HBi3622.

The motion prevailed.

HB 411 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Grusendorf submitted the following conference committee report on HB 411 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi411 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

5654 78th LEGISLATURE — REGULAR SESSION

HB 411, A bill to be entitled An Act relating to improvement of science instruction and student performance in public schools.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubchapter B, Chapter 21, Education Code, is amended by adding Section 21.0484 to read as follows:

Sec.i21.0484.iiMASTER SCIENCE TEACHER CERTIFICATION. (a) To ensure that there are teachers with special training to work with other teachers and with students in order to improve student science performance, the board shall establish:

(1)iia master science teacher certificate to teach science at elementary school grade levels;

(2)iia master science teacher certificate to teach science at middle school grade levels; and

(3)iia master science teacher certificate to teach science at high school grade levels.

(b)iiThe board shall issue the appropriate master science teacher certificate to each eligible person.

(c)iiTo be eligible for a master science teacher certificate, a person must:

(1)iihold a teaching certificate issued under this subchapter;

(2)iihave at least three years of teaching experience;

(3)iisatisfactorily complete a knowledge-based course of instruction on the science of teaching children science that includes training in science instruction and professional peer mentoring techniques that, through scientific testing, have been proven effective;

(4)iiperform satisfactorily on the appropriate master science teacher certification examination prescribed by the board; and

(5)iisatisfy any other requirements prescribed by the board.

(d)iiThe course of instruction prescribed under Subsection (c)(3) shall be developed by the board in consultation with science faculty members at institutions of higher education.

SECTIONi2.iiSubchapter I, Chapter 21, Education Code, is amended by adding Section 21.413 to read as follows:

Sec.i21.413.iiMASTER SCIENCE TEACHER GRANT PROGRAM. (a) The commissioner shall establish a master science teacher grant program to encourage teachers to:

(1)iibecome certified as master science teachers; and

(2)iiwork with other teachers and with students in order to improve student science performance.

(b)iiFrom funds appropriated for the purpose, the commissioner shall make grants to school districts as provided by this section to pay stipends to selected certified master science teachers who teach at high-need campuses.

(c)iiThe commissioner shall annually identify each high-need campus in a school district using criteria established by the commissioner by rule, including performance on the science assessment instrument administered under Section 39.023. The commissioner shall also use the criteria to rank campuses in order of greatest need.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5655

(d)iiA school district may apply to the commissioner for grants for each high-need campus identified by the commissioner to be used to pay stipends to certified master science teachers in accordance with this section. Unless reduced under Subsection (g) or (i), each grant is in the amount of $5,000. The commissioner shall approve the application if the district:

(1)iiapplies within the period and in the manner required by rule adopted by the commissioner; and

(2)iiagrees to use each grant only for the purpose of paying a year-end stipend to a master science teacher:

(A)iiwho holds the appropriate certificate issued under Section 21.0484;

(B)iiwho teaches in a position prescribed by the district at a high-need campus identified by the commissioner;

(C)iiwhose primary duties include:

(i)iiteaching science; and

(ii)iiserving as a science teaching mentor to other teachers for the amount of time and in the manner established by the district and by rule adopted by the commissioner; and

(D)iiwho satisfies any other requirements established by rule adopted by the commissioner.

(e)iiUnless reduced under Subsection (g) or (i), a stipend under Subsection (d)(2) is in the amount of $5,000.

(f)iiThe commissioner shall adopt rules for the distribution of grants to school districts following the year of the initial grant. A district that has been approved for a grant to pay a stipend to a certified master science teacher is not required to reapply for a grant for two consecutive school years following the year of the initial grant if the district:

(1)iicontinues to pay a stipend as provided by Subsection (g); and

(2)iinotifies the commissioner in writing, within the period and in the manner prescribed by the commissioner, that the circumstances on which the grant was based have not changed.

(g)iiThe commissioner shall reduce payments to a school district proportionately to the extent a teacher does not meet the requirements under Subsection (d)(2) for the entire school year. A district that employs more certified master science teachers than the number of grants available under this section shall select the certified master science teachers to whom to pay stipends based on a policy adopted by the board of trustees of the district, except that a district shall pay a stipend for two additional consecutive school years to a teacher the district has selected for and paid a stipend for a school year, who remains eligible for a stipend under Subsection (d)(2), and for whom the district receives a grant under this section for those years. A decision of the district under this subsection is final and may not be appealed. The district may not apportion among teachers a stipend paid for with a grant the district receives under this section. The district may use local money to pay additional stipends in amounts determined by the district.

5656 78th LEGISLATURE — REGULAR SESSION

(h)iiA grant a school district receives under this section is in addition to any funding the district receives under Chapter 42. The commissioner shall distribute funds under this section with the Foundation School Program payment to which the district is entitled as soon as practicable after the end of the school year as determined by the commissioner. A district to which Chapter 41 applies is entitled to the grants paid under this section. The commissioner shall determine the timing of the distribution of grants to a district that does not receive Foundation School Program payments.

(i)iiThis section does not create a property right to a grant or stipend. A school district is entitled to a grant to carry out the purposes of this section only to the extent the commissioner makes the grant in accordance with this section and only to the extent sufficient state funds are appropriated for those purposes. If state funds are appropriated but are insufficient to fully fund a grant, the commissioner shall reduce the grant paid to each district and the district shall reduce the stipend the district pays to each teacher under this section proportionately so that each selected teacher receives the same amount of money.

(j)iiA decision of the commissioner concerning the amount of money to which a school district is entitled under this section is final and may not be appealed. Each district shall, in the manner and at the time prescribed by the commissioner, provide to the commissioner proof acceptable to the commissioner of the master science teacher certification of a teacher to whom the district is paying a stipend under this section.

(k)iiThe commissioner may audit the expenditure of money appropriated for purposes of this section. A district's use of the money appropriated for purposes of this section shall be verified as part of the district audit under Section 44.008.

(l)iiA stipend a teacher receives under this section is not considered in determining whether the district is paying the teacher the minimum monthly salary under Section 21.402.

(m)iiThe commissioner may adopt other rules as necessary to implement this section.

SECTIONi3.iiSubchapter J, Chapter 21, Education Code, is amended by adding Section 21.456 to read as follows:

Sec.i21.456.iiSCIENCE TRAINING. (a) The commissioner shall develop and have approved by the board training materials and other teacher training resources for a school district to use in assisting science teachers in developing:

(1)iiexpertise in the appropriate science curriculum; and

(2)iicomprehension of the instructional approaches that, through scientific testing, have been proven effective in improving student science skills.

(b)iiTo the extent practicable, the training materials and other teacher training resources required under Subsection (a) shall address instructional approaches designed to reduce any identified disparities in student science performance between groups of students.

(c)iiThe commissioner shall develop materials and resources under this section in consultation with appropriate faculty members at institutions of higher education.

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(d)iiThe commissioner shall make the training materials and other teacher training resources required under Subsection (a) available to science teachers through a variety of mechanisms, including distance learning, mentoring programs, small group inquiries, computer-assisted training, and mechanisms based on trainer-of-trainer models.

(e)iiThe commissioner shall use funds appropriated for the purpose to administer this section.

SECTIONi4.iiSubchapter C, Chapter 29, Education Code, is amended by adding Section 29.089 to read as follows:

Sec.i29.089.iiAFTER-SCHOOL AND SUMMER INTENSIVE SCIENCE INSTRUCTION PROGRAMS. (a) A school district may provide an intensive after-school program or an intensive program during the period that school is recessed for the summer to provide science instruction to:

(1)iistudents who are not performing at grade level in science to assist those students in performing at grade level;

(2)iistudents who are not performing successfully in a science course to assist those students in successfully completing the course; or

(3)iistudents other than those described by Subdivision (1) or (2), as determined by the district.

(b)iiBefore providing a program under this section, the board of trustees of a school district must adopt a policy for:

(1)iidetermining student eligibility for participating in the program that:

(A)iiprescribes the grade level or course a student must be enrolled in to be eligible; and

(B)iiprovides for considering teacher recommendations in determining eligibility;

(2)iiensuring that parents of or persons standing in parental relation to eligible students are provided notice of the program;

(3)iiensuring that eligible students are encouraged to attend the program;

(4)iiensuring that the program is offered at one or more locations in the district that are easily accessible to eligible students; and

(5)iimeasuring student progress on completion of the program.

(c)iiThe commissioner by rule shall:

(1)iiprescribe a procedure that a school district must follow to apply for and receive funding for a program under this section;

(2)iiadopt guidelines for determining which districts receive funding if there is not sufficient funding for each district that applies;

(3)iirequire each district providing a program to report student performance results to the commissioner within the period and in the manner prescribed by the rule; and

(4)iibased on district reports under Subdivision (3) and any required analysis and verification of those reports, disseminate to each district in this state information concerning instructional methods that have proved successful in improving student performance in science.

5658 78th LEGISLATURE — REGULAR SESSION

(d)iiA program provided under this section shall be paid for with funds appropriated for that purpose.

SECTIONi5.iiSection 39.023(a), Education Code, is amended to read as follows:

(a)iiThe agency shall adopt or develop appropriate criterion-referenced assessment instruments designed to assess essential knowledge and skills in reading, writing, mathematics, social studies, and science. All students, except students assessed under Subsection (b) or (l) or exempted under Section 39.027, shall be assessed in:

(1)iimathematics, annually in grades three through seven without the aid of technology and in grades eight through 11 with the aid of technology on any assessment instruments that include algebra;

(2)iireading, annually in grades three through nine;

(3)iiwriting, including spelling and grammar, in grades four and seven;

(4)iiEnglish language arts, in grade 10;

(5)iisocial studies, in grades eight and 10; [and]

(6)iiscience, in grades five, eight, and 10; and

(7)iiany other subject and grade required by federal law.

SECTIONi6.ii(a) If the Act of the 78th Legislature, Regular Session, 2003, relating to renumbering or relettering certain provisions of enacted codes takes effect, Section 822.201(b), Government Code, as amended by Chapters 118, 834, and 1301, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:

(b)ii"Salary and wages" as used in Subsection (a) means:

(1)iinormal periodic payments of money for service the right to which accrues on a regular basis in proportion to the service performed;

(2)iiamounts by which the member's salary is reduced under a salary reduction agreement authorized by Chapter 610;

(3)iiamounts that would otherwise qualify as salary and wages under Subdivision (1) but are not received directly by the member pursuant to a good faith, voluntary written salary reduction agreement in order to finance payments to a deferred compensation or tax sheltered annuity program specifically authorized by state law or to finance benefit options under a cafeteria plan qualifying under Section 125 of the Internal Revenue Code of 1986, if:

(A)iithe program or benefit options are made available to all employees of the employer; and

(B)iithe benefit options in the cafeteria plan are limited to one or more options that provide deferred compensation, group health and disability insurance, group term life insurance, dependent care assistance programs, or group legal services plans;

(4)iiperformance pay awarded to an employee by a school district as part of a total compensation plan approved by the board of trustees of the district and meeting the requirements of Subsection (e);

(5)iithe benefit replacement pay a person earns under Subchapter H, Chapter 659, [as added by Chapter 417, Acts of the 74th Legislature, 1995,] except as provided by Subsection (c);

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(6)iistipends paid to teachers in accordance with Section 21.410, 21.411, 21.412, or 21.413, Education Code;

(7)iiamounts by which the member's salary is reduced or that are deducted from the member's salary as authorized by Subchapter J, Chapter 659; and

(8)iia merit salary increase made under Section 51.962, Education Code.

(b)iiIf the Act of the 78th Legislature, Regular Session, 2003, relating to renumbering or relettering certain provisions of enacted codes does not take effect, Section 822.201(b), Government Code, as amended by Chapters 118, 834, and 1301, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:

(b)ii"Salary and wages" as used in Subsection (a) means:

(1)iinormal periodic payments of money for service the right to which accrues on a regular basis in proportion to the service performed;

(2)iiamounts by which the member's salary is reduced under a salary reduction agreement authorized by Chapter 610;

(3)iiamounts that would otherwise qualify as salary and wages under Subdivision (1) but are not received directly by the member pursuant to a good faith, voluntary written salary reduction agreement in order to finance payments to a deferred compensation or tax sheltered annuity program specifically authorized by state law or to finance benefit options under a cafeteria plan qualifying under Section 125 of the Internal Revenue Code of 1986, if:

(A)iithe program or benefit options are made available to all employees of the employer; and

(B)iithe benefit options in the cafeteria plan are limited to one or more options that provide deferred compensation, group health and disability insurance, group term life insurance, dependent care assistance programs, or group legal services plans;

(4)iiperformance pay awarded to an employee by a school district as part of a total compensation plan approved by the board of trustees of the district and meeting the requirements of Subsection (e);

(5)iithe benefit replacement pay a person earns under Subchapter H, Chapter 659, [as added by Chapter 417, Acts of the 74th Legislature, 1995,] except as provided by Subsection (c);

(6)iistipends paid to teachers in accordance with Section 21.410, Education Code; Section 21.411, Education Code, as added by Chapter 834, Acts of the 77th Legislature, Regular Session, 2001; Section 21.411, Education Code, as added by Chapter 1301, Acts of the 77th Legislature, Regular Session, 2001; or Section 21.413, Education Code;

(7)iiamounts by which the member's salary is reduced or that are deducted from the member's salary as authorized by Subchapter J, Chapter 659; and

(8)iia merit salary increase made under Section 51.962, Education Code.

5660 78th LEGISLATURE — REGULAR SESSION

SECTIONi7.ii(a) The State Board for Educator Certification shall propose rules establishing requirements and prescribing an examination for master science teacher certification as required by Section 21.0484, Education Code, as added by this Act, not later than January 1, 2005.

(b)iiBeginning with the 2005-2006 school year:

(1)iithe commissioner of education shall pay grants under Section 21.413, Education Code, as added by this Act; and

(2)iischool districts receiving grants shall pay stipends to certified master science teachers under Section 21.413, Education Code, as added by this Act.

SECTIONi8.iiThis Act takes effect September 1, 2003.

Representative Grusendorf moved to adopt the conference committee report on HBi411.

The motion prevailed.

HB 727 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Delisi submitted the following conference committee report on HB 727 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi727 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 727, A bill to be entitled An Act relating to disease management programs for certain Medicaid recipients.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.059 to read as follows:

Sec.i32.059.iiCONTRACTS FOR DISEASE MANAGEMENT PROGRAMS.ii(a) The department shall request contract proposals from providers of disease management programs to provide program services to recipients of medical assistance who:

(1)iihave a disease or other chronic health condition, such as heart disease, hemophilia, diabetes, respiratory illness, end-stage renal disease, HIV infection, or AIDS, that the department determines is a disease or condition that needs disease management; and

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5661

(2)iiare not eligible to receive those services under a Medicaid managed care plan.

(b)iiThe department may contract with a public or private entity to:

(1)iiwrite the requests for proposals;

(2)iidetermine how savings will be measured;

(3)iiidentify populations that need disease management;

(4)iidevelop appropriate contracts; and

(5)iiassist the department in:

(A)iideveloping the content of disease management programs; and

(B)iiobtaining funding for those programs.

(c)iiThe department, by rule, shall prescribe the minimum requirements a provider of a disease management program must meet to be eligible to receive a contract under this section. The provider must, at a minimum, be required to:

(1)iiuse disease management approaches that are based on evidence-supported models, minimum standards of care, and clinical outcomes; and

(2)iiensure that a recipient's primary care physician and other appropriate specialty physicians, or registered nurses, advanced practice nurses, or physician assistants specified and directed or supervised in accordance with applicable law by the recipient's primary care physician or other appropriate specialty physicians, become directly involved in the disease management program through which the recipient receives services.

(d)iiThe department may not award a contract for a disease management program under this section unless the contract includes a written guarantee of state savings on expenditures for the group of medical assistance recipients covered by the program.

(e)iiThe department may enter into a contract under this section with a comprehensive hemophilia diagnostic treatment center that receives funding through a maternal and child health services block grant under Section 501(a)(2), Social Security Act (42 U.S.C. Section 701), and the center shall be considered a disease management provider.

(f)iiDirectly or through a provider of a disease management program that enters into a contract with the department under this section, the department shall, as appropriate and to the extent possible without cost to the state:

(1)iiidentify recipients of medical assistance under this chapter or, at the discretion of the department, enrollees in the child health plan under Chapter 62, Health and Safety Code, who are eligible to participate in federally funded disease management research programs operated by research-based disease management providers; and

(2)iiassist and refer eligible persons identified by the department under Subdivision (1) to participate in the research programs described by Subdivision (1).

5662 78th LEGISLATURE — REGULAR SESSION

SECTIONi2.ii(a) The Health and Human Services Commission shall conduct a study to analyze the potential for state savings through the use of disease management programs for recipients of medical assistance under Section 32.059, Human Resources Code, as added by this Act. The study must identify the diseases and chronic health conditions that:

(1)iiresult in the highest medical assistance expenditures by this state; and

(2)iishow the greatest potential for state savings on implementation of disease management programs.

(b)iiThe commission shall consider the results of the study when requesting contract proposals under Section 32.059, Human Resources Code, as added by this Act.

(c)iiThe commission may contract with a private entity to conduct a study and produce a report under this section.

(d)iiNot later than December 31, 2003, the commission shall complete the study required by this section and provide a report of its findings to the governor, the lieutenant governor, the speaker of the house of representatives, and the standing committees of the senate and house of representatives having jurisdiction over health and human services issues.

SECTIONi3.iiIf before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.

SECTIONi4.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Representative Delisi moved to adopt the conference committee report on HBi727.

A record vote was requested.

The motion prevailed by (Record 910): 146 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5663

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

Absent — Farrar; Villarreal.

HB 1538 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Chisum submitted the following conference committee report on HB 1538 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi1538 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 1538, A bill to be entitled An Act relating to the continuation and functions of the Texas Funeral Service Commission, including certain functions transferred to the commission from the Texas Department of Health, and the powers and duties of the Texas Finance Commission and the banking commissioner of Texas regarding cemeteries; providing administrative and civil penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 651.001, Occupations Code, is amended by adding Subdivision (12-a) to read as follows:

(12-a)ii"Perpetual care cemetery" means a cemetery regulated under Chapter 712, Health and Safety Code.

SECTIONi2.iiSection 651.002, Occupations Code, is amended to read as follows:

Sec.i651.002.iiAPPLICATION OF SUNSET ACT. The Texas Funeral Service Commission is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished and this chapter expires September 1, 2015 [2003].

5664 78th LEGISLATURE — REGULAR SESSION

SECTIONi3.iiSection 651.003(a), Occupations Code, is amended to read as follows:

(a)iiThis chapter does not affect the authority of the Texas Department of Banking to enforce Chapter 154, Finance Code, or to regulate perpetual care cemeteries.

SECTIONi4.iiSubchapter A, Chapter 651, Occupations Code, is amended by adding Section 651.004 to read as follows:

Sec.i651.004.iiREGULATION OF CEMETERY AND CREMATORY SERVICES. (a) The commission shall regulate cemetery and crematory services as provided by this chapter and Chapter 716, Health and Safety Code.

(b)iiThe commission may not regulate cemetery or crematory services that occur after burial or inurnment unless the services relate to the care and treatment of the remains in an urn, casket, or outer enclosure.

SECTIONi5.iiSection 651.057(a), Occupations Code, is amended to read as follows:

(a)iiThe governor shall designate one [public] member of the commission as the presiding officer of the commission to serve in that capacity for three years [at the pleasure of the governor]. In designating presiding officers, the governor shall alternate between public and nonpublic members.

SECTIONi6.iiSection 651.151(a), Occupations Code, is amended to read as follows:

(a)iiThe commission shall establish proficiency, professionalism, ethics, and qualification standards for individuals issued a license under this chapter [funeral directors and embalmers].

SECTIONi7.iiSection 651.152, Occupations Code, is amended to read as follows:

Sec.i651.152.iiRULES; PROCEDURES; FORMS. The commission shall [may] adopt rules, establish procedures, and prescribe forms necessary to administer and enforce this chapter and Chapters 714 and 715, Health and Safety Code.

SECTIONi8.iiSubchapter D, Chapter 651, Occupations Code, is amended by adding Section 651.1525 to read as follows:

Sec.i651.1525.iiEARLY PARTICIPATION IN RULEMAKING PROCESS; GUIDELINES. (a) Before publishing a proposed rule for public comment, the commission shall seek advice and opinions from persons who will be most affected by the rule. At a minimum, those persons must include consumer groups and trade associations that represent persons from each group regulated by the commission, including funeral directors and cemetery and crematory operators.

(b)iiThe commission shall develop guidelines to implement this section. The guidelines must establish a method to determine who will be most affected by a proposed rule.

SECTIONi9.iiSection 651.154, Occupations Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a)iiThe commission shall set the following fees in amounts reasonable and necessary to administer this chapter:

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(1)iithe funeral director's and embalmer's application fee, license fee, duplicate license fee, and reciprocal license fee; and

(2)iithe cemetery or funeral establishment license fee, renewal fee, and late renewal penalty.

(c)iiThe commission may not charge a fee to a perpetual care cemetery, including a fee for issuing or renewing a license issued under this chapter.

SECTIONi10.iiSection 651.157, Occupations Code, is amended to read as follows:

Sec.i651.157.iiINSPECTION OF CEMETERY, CREMATORY, OR FUNERAL ESTABLISHMENT. (a) Except as provided by Subsection (b), a licensed cemetery, crematory, or funeral establishment shall be inspected at least once every two years by an agent of the commission or by an agent of the state or a political subdivision authorized by the commission to make inspections on its behalf.

(b)iiIf the commission finds a violation of this chapter or of Chapter 193, [or] 361, 711, 714, 715, or 716, Health and Safety Code, the commission shall inspect the cemetery, crematory, or funeral establishment annually until the commission determines that the establishment is free of violations.

(c)iiA report of each inspection made under this section shall be filed with the commission.

(d)iiThe commission by rule shall establish:

(1)iiprocedures for the inspection of a cemetery, crematory, or funeral establishment required by this section; and

(2)iicriteria, including consideration of the establishment's inspection and complaint history, regarding when the commission should inspect an establishment based on the risk of a violation at an establishment.

(e)iiA premises on which funeral directing, interment, cremation, or embalming is practiced shall be open at all times to inspection for any violation of this chapter or of Chapter 193, [or] 361, or 716, Health and Safety Code, by:

(1)iian agent of the commission;

(2)iian authorized agent of the state; or

(3)iian authorized agent of the county or municipality in which the premises is located.

(f)iiBefore a commission agent inspects a cemetery, crematory, or funeral establishment, the agent shall review the inspection reports filed with the commission on the establishment. During the inspection, the agent shall determine whether previously identified problems have been corrected and whether a pattern of violations exists. The commission shall consider the information from the inspection reports in determining whether a penalty should be imposed against an establishment.

SECTIONi11.iiSubchapter D, Chapter 651, Occupations Code, is amended by adding Section 651.1571 to read as follows:

Sec.i651.1571.iiINSPECTION REQUIREMENTS FOR CERTAIN CEMETERIES; EXCEPTION FOR PERPETUAL CARE CEMETERIES. (a) This section and Section 651.157 do not apply to perpetual care cemeteries.

(b)iiExcept as provided by Section 651.157(b):

5666 78th LEGISLATURE — REGULAR SESSION

(1)iia cemetery may not be inspected unless:

(A)iian interment has occurred in the cemetery within the two years preceding the inspection; or

(B)iithe commission has received a complaint about the cemetery; and

(2)iithe commission shall give lower priority to an inspection of a cemetery than to an inspection of a crematory or funeral establishment.

SECTIONi12.iiSection 651.164, Occupations Code, is amended to read as follows:

Sec.i651.164.iiLICENSE [OR REGISTRATION] EXPIRATION. The commission by rule may adopt a system under which licenses [or registrations] expire on various dates during the year. For the year in which the license [or registration] expiration date is changed, the commission shall prorate license [or registration] fees on a monthly basis so that each license holder [or registrant] pays only that portion of the license [or registration] fee that is allocable to the number of months during which the license [or registration] is valid. On renewal of the license [or registration] on the new expiration date, the total license [or registration] renewal fee is payable.

SECTIONi13.iiSubchapter D, Chapter 651, Occupations Code, is amended by adding Sections 651.166 and 651.167 to read as follows:

Sec.i651.166.iiUSE OF TECHNOLOGY. The commission shall develop and implement a policy requiring the executive director and commission employees to research and propose appropriate technological solutions to improve the commission's ability to perform its functions. The technological solutions must:

(1)iiensure that the public is able to easily find information about the commission on the Internet;

(2)iiensure that persons who want to use the commission's services are able to:

(A)iiinteract with the commission through the Internet; and

(B)iiaccess any service that can be provided effectively through the Internet; and

(3)iibe cost-effective and developed through the commission's planning processes.

Sec.i651.167.iiNEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION PROCEDURES. (a) The commission shall develop and implement a policy to encourage the use of:

(1)iinegotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of commission rules; and

(2)iiappropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the commission's jurisdiction.

(b)iiThe commission's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

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(c)iiThe commission shall designate a trained person to:

(1)iicoordinate the implementation of the policy adopted under Subsection (a);

(2)iiserve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3)iicollect data concerning the effectiveness of those procedures, as implemented by the commission.

SECTIONi14.iiSections 651.202(a) and (b), Occupations Code, are amended to read as follows:

(a)iiThe commission by rule shall establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the commission for the purpose of directing complaints to the commission. The commission may provide for that notice:

(1)iion each license [or registration] form, application, or written contract for services of a person regulated under this chapter;

(2)iion a sign prominently displayed in the place of business of each person regulated under this chapter; or

(3)iiin a bill for service provided by a person regulated under this chapter.

(b)iiThe commission shall adopt rules concerning a complaint filed under this section. The rules adopted under this subsection must:

(1)iiestablish procedures regarding the receipt, investigation, and disposition of complaints;

(2)iiallow for an informal hearing process;

(3)iiestablish a formal hearing process;

(4)iiensure that the person who filed the complaint has an opportunity to explain the allegations made in the complaint;

(5)iiensure that the license holder [or registrant] who is the subject of the complaint has an opportunity to be heard regarding the complaint; and

(6)iiestablish procedures by which a commission employee may dismiss a complaint, subject to approval by the executive director or the executive director's designee, if the investigation does not reveal a violation.

SECTIONi15.iiSection 651.2595(d), Occupations Code, is amended to read as follows:

(d)iiThe commission shall approve or deny a provisional license holder's application for a license not later than the second anniversary of [180th day after] the date on which the provisional license is issued. The commission may extend the two-year [180-day] period if the results of an examination have not been received by the commission before the end of that period.

SECTIONi16.iiSection 651.261, Occupations Code, is amended to read as follows:

Sec.i651.261.iiPOSTING OF LICENSE. A license holder shall conspicuously display the holder's license in each place of business at which the license holder practices [funeral directing or embalming].

SECTIONi17.iiSections 651.267(a) and (d), Occupations Code, are amended to read as follows:

5668 78th LEGISLATURE — REGULAR SESSION

(a)iiOn application, the commission may reissue a [funeral director's or embalmer's] license issued under this subchapter to a person whose license has been suspended or revoked. An application to reissue a license may not be made before the first anniversary of the date of the suspension or revocation.

(d)iiA license that has been revoked or suspended for a period of five years or more may be reinstated only after the applicant passes the applicable [written embalming or funeral directing] examination.

SECTIONi18.iiSections 651.302(a) and (b), Occupations Code, are amended to read as follows:

(a)iiThe commission shall issue a provisional license to practice funeral directing to an applicant who:

(1)iiis at least 18 years of age;

(2)iihas completed the educational requirements of Section 651.253 or is enrolled in an accredited school or college of mortuary science;

(3)iiis employed by a funeral director to learn funeral directing or embalming under the instruction and supervision of the funeral director [takes the written examination given by the commission];

(4)iifiles an application for a provisional license on a form provided by the commission and verified under oath by the applicant; and

(5)iipays any required application or license fee.

(b)iiThe commission shall issue a provisional license to practice embalming to an applicant who:

(1)iiis at least 18 years of age;

(2)iihas completed the educational requirements of Section 651.253 or is enrolled in an accredited school or college of mortuary science;

(3)ii[takes the written examination given by the commission;

[(4)]iifiles an application for a provisional license;

(4)i[(5)]iipays any required application or license fee; and

(5)i[(6)]iicomplies with the requirements of this chapter and of the commission.

SECTIONi19.iiSection 651.303(b), Occupations Code, is amended to read as follows:

(b)iiThe commission by rule shall define the terms of employment of a provisional license holder. The terms of employment:

(1)iimust include service by the provisional license holder:

(A)iiof at least 17 hours a week or 73 hours a month; and

(B)iiunder actual working conditions and under the personal supervision of a funeral director or embalmer; and

(2)iimay not require more than 17 hours a week or 73 hours a month.

SECTIONi20.iiSubchapter G, Chapter 651, Occupations Code, is amended by adding Section 651.3035 to read as follows:

Sec.i651.3035.iiMORTUARY COLLEGE CREDIT FOR PROVISIONAL LICENSE PROGRAM. (a) A case completed under Section 651.303(d) may serve as credit for both mortuary school or college and the provisional license holder program.

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(b)iiA mortuary school or college may designate a funeral director or embalmer who is supervising a provisional license holder under Section 651.303 as a clinical instructor for the provisional license holder.

SECTIONi21.iiSection 651.304(b), Occupations Code, is amended to read as follows:

(b)iiA provisional license holder shall report to the commission monthly. The report must:

(1)iibe made not later than the 10th day after the end of the month;

(2)iiidentify each case that the provisional license holder:

(A)iiassisted in handling during that month if the provisional license holder is a funeral director applicant; or

(B)iihandled or assisted in handling during that month if the provisional license holder is an embalmer applicant;

(3)iilist any credit earned for mortuary school or college under Section 651.3035; and

(4)i[(3)]iibe certified by the funeral director or embalmer under whom the provisional license holder performed the work.

SECTIONi22.iiThe heading to Subchapter H, Chapter 651, Occupations Code, is amended to read as follows:

SUBCHAPTER H. LICENSE REQUIREMENTS: CEMETERY, FUNERAL, [ESTABLISHMENTS] AND COMMERCIAL EMBALMER ESTABLISHMENTS

SECTIONi23.iiSubchapter H, Chapter 651, Occupations Code, is amended by adding Section 651.353 to read as follows:

Sec.i651.353.iiCEMETERY ESTABLISHMENT REQUIREMENTS. (a) A cemetery may not conduct a cemetery business unless the facility is licensed by the commission.

(b)iiThis chapter does not require a cemetery to be owned by a person licensed under this chapter.

(c)iiTo obtain an initial cemetery license, an applicant must apply for a license and pay the licensing fee. The commission shall issue an initial cemetery license on determining that the applicant satisfies the requirements of this chapter.

(d)iiThis section does not apply to:

(1)iia family, fraternal, or community cemetery that is not larger than 10 acres;

(2)iian unincorporated association of plot owners not operated for profit;

(3)iia church, a religious society or denomination, or an entity solely administering the temporalities of a church or religious society or denomination; or

(4)iia public cemetery owned by this state, a county, or a municipality.

SECTIONi24.iiSection 651.354, Occupations Code, is amended to read as follows:

Sec.i651.354.iiRENEWAL OF CEMETERY OR FUNERAL ESTABLISHMENT LICENSE. (a) The commission shall mail written notice to a cemetery or funeral establishment of the impending expiration of the [funeral]

5670 78th LEGISLATURE — REGULAR SESSION

(1)iito renew the license, the cemetery or funeral establishment must pay the renewal fee not later than September 30; and

(2)iithe license is automatically renewed on receipt of the renewal fee.

(b)iiA cemetery or funeral establishment that fails to pay the license renewal fee by the due date is subject to a late payment penalty equal to the amount charged for the license renewal fee.

(c)iiIf the license is expired for longer than 30 days, the cemetery or funeral establishment may not renew the license and may not operate as a cemetery or funeral establishment until the establishment is issued a new license in the manner provided for issuing an original license.

(d)iiTo renew a license for a perpetual care cemetery, the cemetery must submit a renewal on a form prescribed by the commission. The license is renewed on receipt of the form by the commission.

SECTIONi25.iiSection 651.4065(c), Occupations Code, is amended to read as follows:

(c)iiThe operator of a [registrant for the] cemetery [or crematory] shall sign a [the] purchase agreement for a cemetery.

SECTIONi26.iiSection 651.455(a), Occupations Code, is amended to read as follows:

(a)iiA person violates this chapter if the person uses a statement that misleads or deceives the public, including a fraudulent statement or any other type of a false or misleading statement regarding:

(1)iia legal, religious, or cemetery requirement for funeral merchandise or funeral, cemetery, or crematory services;

(2)iithe preservative qualities of funeral merchandise or funeral, cemetery, or crematory services in preventing or substantially delaying natural decomposition of human remains;

(3)iithe airtight or watertight properties of a casket or outer enclosure; [or]

(4)iithe licenses [or registrations] held by the personnel in the operation of the cemetery, crematory, or funeral establishment; or

(5)iian activity regulated under this chapter, including the sale of funeral-related goods or services.

SECTIONi27.iiSection 651.456, Occupations Code, is amended to read as follows:

Sec.i651.456.iiUNETHICAL CONDUCT REGARDING CUSTODY OF DEAD HUMAN BODY. A person violates this chapter if the person:

(1)iitakes custody of a dead human body without the permission of:

(A)iithe person or the agent of the person authorized to make funeral arrangements for the deceased; or

(B)iia medical examiner or a justice of the peace who has jurisdiction over the body under Articles 49.02-49.05, Code of Criminal Procedure; [or]

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(2)iirefuses to promptly surrender a dead human body to a person or agent authorized to make funeral arrangements for the deceased; or

(3)iiviolates any state law governing the transportation, storage, refrigeration, inurnment, interment, or disinterment of a dead human body.

SECTIONi28.iiSection 651.459(a), Occupations Code, is amended to read as follows:

(a)iiA person violates this chapter if the person:

(1)iiwilfully makes a false statement on:

(A)iia death certificate, including forgery of a physician's signature; or

(B)iia document required by this chapter or a rule adopted under this chapter;

(2)iiengages in fraudulent, unprofessional, or deceptive conduct in providing funeral services or merchandise to a customer;

(3)iiengages in dishonest conduct, wilful conduct, or negligence in the practice of embalming or funeral directing that is likely to or does deceive, defraud, or otherwise injure the public;

(4)iicauses the execution of a document by the use of fraud, deceit, or misrepresentation;

(5)iidirectly or indirectly employs a person to solicit individuals or institutions by whose influence dead human bodies may be turned over to a particular funeral director, embalmer, or funeral establishment;

(6)iimisappropriates funds held by a license holder, a funeral establishment, an employee or agent of the funeral establishment, or another depository, that create an obligation to provide a funeral service or merchandise, including retaining for an unreasonable time excess funds paid by or on behalf of the customer for which the customer is entitled to a refund; or

(7)iiperforms acts of funeral directing or embalming that are outside the licensed scope and authority of the license holder, or performs acts of funeral directing or embalming in a capacity other than that of an employee, agent, subcontractor, or assignee of a licensed funeral establishment that has contracted to perform those acts.

SECTIONi29.iiSubchapter K, Chapter 651, Occupations Code, is amended by adding Section 651.5026 to read as follows:

Sec.i651.5026.iiTEMPORARY LICENSE SUSPENSION OR RESTRICTION; DISCIPLINARY PANEL. (a) The presiding officer of the commission shall appoint a three-member disciplinary panel composed of two funeral industry members and one public member of the commission to determine whether a funeral director's or embalmer's license should be temporarily suspended or restricted.

(b)iiChapter 551, Government Code, does not prohibit the disciplinary panel from holding a meeting by telephone conference call if convening the panel at one location is inconvenient for any member of the panel.

5672 78th LEGISLATURE — REGULAR SESSION

(c)iiThe disciplinary panel shall temporarily suspend or restrict the license if the panel determines from the information presented to it with or without a hearing, that the license holder has violated this chapter or a rule adopted under this chapter and would, by the license holder's continued unrestricted activity, constitute a continuing threat to the public welfare.

(d)iiThe suspension or restriction may be without notice or hearing if:

(1)iithe commission immediately provides notice of the suspension or restriction to the funeral director or embalmer;

(2)iiproceedings for a hearing under Section 651.506 are initiated simultaneously with the suspension or restriction; and

(3)iithe hearing is held as required by Chapter 2001, Government Code, and this chapter not later than 48 hours after the suspension or restriction.

(e)iiIf the disciplinary panel affirms the temporary suspension or restriction at a hearing, the commission shall schedule an informal compliance meeting that meets the requirements of Section 2001.054(c), Government Code, and this chapter to be held as soon as practicable unless:

(1)iiit is evident from the determination of the panel that the funeral director or embalmer would be unable to show compliance at the informal meeting regarding the issues that are the basis for the temporary suspension or restriction; or

(2)iian informal meeting has already been held regarding the issues that are the basis for the temporary suspension or restriction.

(f)iiIf the funeral director or embalmer is unable to show compliance at the informal meeting under Subsection (e), the commission shall file a formal complaint under this chapter as soon as practicable.

(g)iiIf the disciplinary panel does not temporarily suspend or restrict the license after considering the information presented to it at a hearing under Subsection (c), the facts that were the basis for the temporary suspension or restriction may not be the sole basis of another proceeding to temporarily suspend or restrict the funeral director's or embalmer's license. The commission may use those same facts in a later investigation to obtain new information that may be the basis for the temporary suspension or restriction of a funeral director's or embalmer's license, including facts presented to the disciplinary panel and facts known to the commission at the time evidence was presented to the disciplinary panel.

SECTIONi30.iiThe heading to Subchapter N, Chapter 651, Occupations Code, is amended to read as follows:

SUBCHAPTER N. LICENSING [REGISTRATION] REQUIREMENTS: [CEMETERIES AND] CREMATORIES

SECTIONi31.iiSection 651.652(a), Occupations Code, is amended to read as follows:

(a)iiThis subchapter applies only to a [cemetery or] crematory that sells goods or services related to the burial or final disposition of a body.

SECTIONi32.iiSection 711.004(f), Health and Safety Code, is amended to read as follows:

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(f)iiExcept as is authorized for a justice of the peace acting as coroner or medical examiner under Chapter 49, Code of Criminal Procedure, remains may not be removed from a cemetery except on the written order of the state registrar or the state registrar's designee. The cemetery organization shall keep a duplicate copy of the order as part of its records. The Texas Funeral Service Commission [Board of Health] may adopt rules to implement this subsection.

SECTIONi33.iiSection 711.007(b), Health and Safety Code, is amended to read as follows:

(b)iiThe proceeding may be brought by:

(1)iithe attorney general;

(2)iithe Banking Commissioner of Texas;

(3)iithe governing body of a municipality with a population of more than 25,000, if the cemetery is located in the municipality or not farther than five miles from the municipality;

(4)iithe district attorney of the county, if the cemetery is located in an area of the county not described by Subdivision (3);

(5)iithe owner of a residence:

(A)iiin or near the municipality in which the cemetery is located; or

(B)iiin the area proscribed for the location of a cemetery by Section 711.008;

(6)iithe Texas Funeral Service Commission; or

(7)i[(6)]iithe owner of a plot in the cemetery.

SECTIONi34.iiSubchapter A, Chapter 711, Health and Safety Code, is amended by adding Section 711.012 to read as follows:

Sec.i711.012.iiRULES. (a) The Finance Commission of Texas may adopt rules to enforce and administer Sections 711.003, 711.008, 711.021-711.024, 711.032-711.035, 711.038, 711.040-711.042, 711.052, 711.061, and 711.062 relating to perpetual care cemeteries.

(b)iiThe Texas Funeral Service Commission may adopt rules, establish procedures, and prescribe forms to enforce and administer Sections 711.003, 711.008, 711.010, 711.011, 711.021-711.035, 711.038, 711.041, 711.042, 711.061, and 711.062 relating to cemeteries that are not perpetual care cemeteries.

SECTIONi35.iiSubchapter D, Chapter 711, Health and Safety Code, is amended by adding Sections 711.053-711.056 to read as follows:

Sec.i711.053.iiDEFINITION. In this subchapter, "commissioner" means the banking commissioner of Texas.

Sec.i711.054.iiENFORCEMENT BY FINANCE COMMISSION OF TEXAS. The Finance Commission of Texas may use remedies available under Chapter 712 to enforce a section listed under Section 711.012(a) relating to perpetual care cemeteries.

Sec.i711.055.iiENFORCEMENT BY COMMISSIONER. (a) Chapter 2001, Government Code, applies to a proceeding under this section.

(b)iiAfter notice and opportunity for hearing, the commissioner may impose an administrative penalty on a person who:

5674 78th LEGISLATURE — REGULAR SESSION

(1)iiviolates this chapter or a final order of the commissioner or rule of the Finance Commission of Texas and does not correct the violation before the 31st day after the date the person receives written notice of the violation from the Texas Department of Banking; or

(2)iiengages in a pattern of violations, as determined by the commissioner.

(c)iiThe amount of the penalty for each violation may not exceed $1,000 for each day the violation occurs.

(d)iiIn determining the amount of the penalty, the commissioner shall consider the seriousness of the violation, the person's history of violations, and the person's good faith in attempting to comply with this chapter. The commissioner may collect the penalty in the same manner that a money judgment is enforced in district court.

(e)iiIn addition to any penalty that may be imposed under Subsection (b), the commissioner may bring a civil action against a person to enjoin a violation described in Subsection (b) that has not been corrected within 30 days after receipt by the person of written notice of the violation from the commissioner. The civil action may be brought in the district court of the county in which the cemetery is operated.

(f)iiThe commissioner may issue an order to cease and desist if a violation described in Subsection (b) has not been corrected within 30 days after receipt by the person of written notice of the violation from the commissioner. Any order proposed under this subsection shall be served on the person, shall state the grounds for the proposed order with reasonable certainty, and shall state the proposed effective date, which may not be less than 15 days after receipt by the person. Unless the person requests a hearing within 15 days after the receipt, the order is effective as proposed.

Sec.i711.056.iiPATTERN OF WILFUL DISREGARD. (a) If after a hearing conducted as provided by Chapter 2001, Government Code, the trier of fact finds that a violation of this chapter or a rule of the Finance Commission of Texas establishes a pattern of wilful disregard for the requirements of this chapter or rules of the finance commission, the trier of fact shall recommend to the commissioner that the maximum administrative penalty permitted under Section 711.055 be imposed on the person committing the violation or that the commissioner cancel or not renew the person's permit under Chapter 154, Finance Code, if the person holds such a permit.

(b)iiFor the purposes of this section, violations corrected as provided by Section 711.055 may be included in determining whether a pattern of wilful disregard for the requirements of this chapter or rules of the finance commission exists.

SECTIONi36.iiSection 712.002, Health and Safety Code, is amended to read as follows:

Sec.i712.002.iiEXEMPTIONS FROM CHAPTER. This chapter does not apply to:

(1)iia family, fraternal, or community cemetery that is not larger than 10 acres;

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(2)iian unincorporated association of plot owners not operated for profit;

(3)ii[a nonprofit corporation organized by plot owners; or

[(4)]iia church, a religious society or denomination, or an entity solely administering the temporalities of a church or religious society or denomination; or

(4)iia public cemetery owned by this state, a county, or a municipality.

SECTIONi37.iiSection 712.008, Health and Safety Code, is amended to read as follows:

Sec.i712.008.iiRULES. (a) The Finance Commission of Texas may adopt rules to enforce and administer this chapter, including rules establishing fees to defray the costs of enforcing and administering this chapter.

(b)iiThe Finance Commission of Texas shall adopt rules establishing reasonable standards for:

(1)iitimely placement of burial markers or monuments in a perpetual care cemetery; and

(2)iitimely response to consumer complaints made to a corporation that operates a perpetual care cemetery.

SECTIONi38.iiSection 712.025, Health and Safety Code, is amended to read as follows:

Sec.i712.025.iiUSE OF FUND INCOME. Fund income [may be applied in the manner the directors of a corporation determine to be for the best interest of the corporation's perpetual care cemetery and] may be used only to provide [for] the perpetual care described by the [resolution, bylaw, or other action or] instrument that established the fund, including the general care and maintenance of the property entitled to perpetual care in the perpetual care cemetery.

SECTIONi39.iiSections 712.028(a) and (c), Health and Safety Code, are amended to read as follows:

(a)iiA corporation shall deposit in its fund an amount that is at least:

(1)iithe greater of:

(A)ii$1.75 [$1.50] a square foot of ground area conveyed as perpetual care property; or

(B)ii15 [10] percent of the total purchase price of that ground area;

(2)iithe greater of:

(A)ii$105 [$90] for each crypt interment right for mausoleum interment or lawn crypt interment conveyed as perpetual care property, or $60 [$50] for each crypt interment right if that crypt is accessible only through another crypt; or

(B)iiseven [five] percent of the total purchase price of that crypt interment right; and

(3)iithe greater of:

(A)ii$35 [$30] for each niche interment right for columbarium interment conveyed; or

(B)ii15 [10] percent of the total purchase price of that niche interment right.

5676 78th LEGISLATURE — REGULAR SESSION

(c)iiIf a plot owner exchanges a plot for another plot in a corporation's perpetual care cemetery, the amount to be deposited in the corporation's fund in respect of the plot received by the plot owner in the exchange may be reduced by the amount deposited in the fund in respect of the plot contributed by the plot owner in the exchange. The amount required to be deposited with respect to an exchanged plot is the amount required at the time the plot owner originally contracted to purchase the plot.

SECTIONi40.iiSection 715.003, Health and Safety Code, is amended to read as follows:

Sec.i715.003.iiPARTIES TO ACTION. An action commenced under this chapter shall be brought by the incorporators of the nonprofit corporation on behalf of the nonprofit corporation. The necessary parties to the action on which citation shall be served under Section 715.006 are:

(1)iithe record owners of the real property comprising the historic cemetery;

(2)iithe owners of plots in the cemetery, who may be designated as a class in the petition; [and]

(3)iithe Texas Historical Commission; and

(4)iithe Texas Funeral Service Commission.

SECTIONi41.iiSection 715.006(a), Health and Safety Code, is amended to read as follows:

(a)iiBefore the 31st day after the date an action is commenced by a nonprofit corporation under this chapter, the nonprofit corporation shall cause citation to be issued and served by certified mail, return receipt requested, on:

(1)iithe record owners of the real property comprising the cemetery at their last known addresses;

(2)iithe owners of plots in the cemetery at their last known addresses;

(3)iithe Texas Historical Commission at its office in Austin, Texas;

(4)iithe Texas Funeral Service Commission; and

(5)i[(4)]iithe county auditor of the county in which the cemetery is located.

SECTIONi42.iiThe following laws are repealed:

(1)iiSection 651.1575, Occupations Code;

(2)iiSection 651.302(c), Occupations Code;

(3)iiSection 651.455(b), Occupations Code; and

(4)iiSection 651.506(j), Occupations Code.

SECTIONi43.iiOn September 1, 2003:

(1)iiall functions and activities related to Chapter 711, Health and Safety Code, performed by the Texas Department of Health immediately before that date are transferred to the Texas Funeral Service Commission;

(2)iia rule or form of the Texas Department of Health related to Chapter 711, Health and Safety Code, is a rule or form of the Texas Funeral Service Commission and remains in effect until amended or replaced by that commission;

(3)iia reference in law or an administrative rule to the Texas Department of Health that relates to Chapter 711, Health and Safety Code, means the Texas Funeral Service Commission; and

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(4)iia complaint, investigation, or other proceeding before the Texas Department of Health that is related to Chapter 711, Health and Safety Code, is transferred without change in status to the Texas Funeral Service Commission, and the Texas Funeral Service Commission assumes, as appropriate and without a change in status, the position of the Texas Department of Health in an action or proceeding to which the Texas Department of Health is a party.

SECTIONi44.iiOn March 1, 2004, Sections 651.652(b), 651.653, 651.654, and 651.655, Occupations Code, are repealed.

SECTIONi45.iiA cemetery is not required to hold a license under Chapter 651, Occupations Code, as amended by this Act, until March 1, 2004.

SECTIONi46.iiThe change in law made by this Act to Section 712.028, Health and Safety Code, applies only to a contract for the purchase of a plot in a perpetual care cemetery entered into, or the exchange of a plot in a perpetual care cemetery made, on or after the effective date of this Act. A contract for the purchase of a plot in a perpetual care cemetery entered into, or the exchange of a plot in a perpetual care cemetery made, before the effective date of this Act is governed by the law as it existed immediately before that effective date, and that law is continued in effect for that purpose.

SECTIONi47.iiThis Act takes effect September 1, 2003.

Representative Chisum moved to adopt the conference committee report on HBi1538.

The motion prevailed.

HJR 85 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Homer submitted the following conference committee report on HJR 85 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HJRi85 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HJR 85, A joint resolution proposing a constitutional amendment to allow the legislature to authorize and govern the operation of wineries in this state.

5678 78th LEGISLATURE — REGULAR SESSION

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 20, Article XVI, Texas Constitution, is amended by adding Subsection (d) to read as follows:

(d)iiThe legislature may enact laws and direct the Alcoholic Beverage Commission or its successor to set policies for all wineries in this state, regardless of whether the winery is located in an area in which the sale of wine has or has not been authorized by local option election, for the manufacturing of wine, including the on-premises selling of wine to the ultimate consumer for consumption on or off the winery premises, the buying of wine from or the selling of wine to any other person authorized under general law to purchase and sell wine in this state, and the dispensing of wine without charge, for tasting purposes, for consumption on the winery premises, and for any purpose to promote the wine industry in this state.

SECTIONi2.iiThis proposed constitutional amendment shall be submitted to the voters at an election to be held September 13, 2003. The ballot shall be printed to permit voting for or against the proposition: "A constitutional amendment to allow the legislature to enact laws authorizing and governing the operation of wineries in this state."

Representative Homer moved to adopt the conference committee report on HJRi85.

A record vote was requested.

The motion prevailed by (Record 911): 144 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eissler; Elkins; Ellis; Escobar; Farabee; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

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

Absent — Coleman; Eiland; Farrar; Moreno, P.

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SBi1835 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Eissler submitted the conference committee report on SBi1835.

Representative Eissler moved to adopt the conference committee report on SBi1835.

A record vote was requested.

The motion prevailed by (Record 912): 86 Yeas, 53 Nays, 2 Present, not voting.

Yeas — Allen; Baxter; Berman; Bohac; Branch; Brown, B.; Brown, F.; Callegari; Campbell; Casteel; Chisum; Christian; Cook, B.; Corte; Crabb; Crownover; Dawson; Delisi; Denny; Deshotel; Driver; Eiland; Eissler; Elkins; Ellis; Farabee; Flynn; Gallego; Gattis; Goolsby; Griggs; Grusendorf; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Hartnett; Heflin; Hilderbran; Hill; Homer; Hope; Hopson; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Keel; Keffer, B.; Keffer, J.; Krusee; Kuempel; Laney; Laubenberg; Madden; Marchant; McCall; McReynolds; Mercer; Merritt; Miller; Morrison; Mowery; Nixon; Paxton; Peña; Phillips; Pitts; Reyna; Riddle; Rose; Seaman; Smith, W.; Smithee; Stick; Swinford; Taylor; Truitt; Van Arsdale; West; Wohlgemuth; Wong; Woolley; Zedler.

Nays — Alonzo; Bailey; Canales; Capelo; Castro; Chavez; Coleman; Davis, J.; Davis, Y.; Dukes; Dunnam; Dutton; Edwards; Escobar; Farrar; Geren; Giddings; Goodman; Guillen; Harper-Brown; Hochberg; Hodge; Hughes; Jones, J.; King; Lewis; Luna; Mabry; McClendon; Menendez; Moreno, J.; Moreno, P.; Naishtat; Noriega; Oliveira; Olivo; Pickett; Puente; Quintanilla; Raymond; Ritter; Rodriguez; Solis; Solomons; Talton; Telford; Thompson; Turner; Uresti; Villarreal; Wilson; Wise; Wolens.

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

Absent — Bonnen; Burnam; Cook, R.; Flores; Garza; Hegar; Howard; Martinez Fischer; Smith, T.

STATEMENTS OF VOTE

When Record No. 912 was taken, I was in the house but away from my desk. I would have voted yes.

Flores

When Record No. 912 was taken, I was in the house but away from my desk. I would have voted yes.

Hegar

I was shown voting no on Record No. 912. I intended to vote yes.

Hodge

5680 78th LEGISLATURE — REGULAR SESSION

When Record No. 912 was taken, I was in the house but away from my desk. I would have voted no.

Martinez Fischer

I was shown voting no on Record No. 912. I intended to vote yes.

McClendon

When Record No. 912 was taken, I was in the house but away from my desk. I would have voted no.

T. Smith

(Uresti in the chair)

SBi1664 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hopson submitted the conference committee report on SBi1664.

SBi1664 - STATEMENT OF LEGISLATIVE INTENT

REPRESENTATIVE CALLEGARI: Mr. Hopson, do you understand that the Sunset bill for the TDHCA (Texas Department of Housing and Community Affairs) has a provision that changes the private activity bond program from a lottery system to a point system?

REPRESENTATIVE HOPSON: No, that is my understanding.

CALLEGARI: I would like to ask if you also agree that your bill, SBi1664, Mr. Hegar's bill actually, SBi1664, is not intended to replace any provisions in SBi264 with regards to the private activity bond program and is not intended to affect the provisions in SBi264 that replace the lottery system with a point system?

HOPSON: That's my understanding, Mr. Callegari.

CALLEGARI: Thank you very much.

REMARKS ORDERED PRINTED

Representative Callegari moved to print remarks between Representative Callegari and Representative Hopson.

The motion prevailed without objection.

Representative Hopson moved to adopt the conference committee report on SBi1664.

The motion prevailed.

HR 1860 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1860, suspending the limitations on the conferees for HBi2424.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5681

HR 1859 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1859, suspending the limitations on the conferees for HBi3459.

HB 320 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Grusendorf submitted the following conference committee report on HB 320 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi320 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 320, A bill to be entitled An Act relating to the refusal to administer or consent to the administration of certain psychiatric or psychological treatment to a child.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiChapter 26, Education Code, is amended by adding Section 26.0091 to read as follows:

Sec.i26.0091.iiREFUSAL OF PSYCHIATRIC OR PSYCHOLOGICAL TREATMENT OF CHILD AS BASIS OF REPORT OF NEGLECT. (a) In this section, "psychotropic drug" has the meaning assigned by Section 261.111, Family Code.

(b)iiAn employee of a school district may not use or threaten to use the refusal of a parent, guardian, or managing or possessory conservator of a child to administer or consent to the administration of a psychotropic drug to the child, or to consent to any other psychiatric or psychological testing or treatment of the child, as the sole basis for making a report of neglect of the child under Subchapter B, Chapter 261, Family Code, unless the employee has cause to believe that the refusal:

(1)iipresents a substantial risk of death, disfigurement, or bodily injury to the child; or

(2)iihas resulted in an observable and material impairment to the growth, development, or functioning of the child.

5682 78th LEGISLATURE — REGULAR SESSION

SECTIONi2.iiSubchapter A, Chapter 29, Education Code, is amended by adding Section 29.0041 to read as follows:

Sec.i29.0041.iiINFORMATION AND CONSENT FOR CERTAIN PSYCHOLOGICAL EXAMINATIONS OR TESTS. (a) On request of a child's parent, before obtaining the parent's consent under 20 U.S.C. Section 1414 for the administration of any psychological examination or test to the child that is included as part of the evaluation of the child's need for special education, a school district shall provide to the child's parent:

(1)iithe name and type of the examination or test; and

(2)iian explanation of how the examination or test will be used to develop an appropriate individualized education program for the child.

(b)iiIf the district determines that an additional examination or test is required for the evaluation of a child's need for special education after obtaining consent from the child's parent under Subsection (a), the district shall provide the information described by Subsections (a)(1) and (2) to the child's parent regarding the additional examination or test and shall obtain additional consent for the examination or test.

(c)iiThe time required for the district to provide information and seek consent under Subsection (b) may not be counted toward the 60 calendar days for completion of an evaluation under Section 29.004. If a parent does not give consent under Subsection (b) within 20 calendar days after the date the district provided to the parent the information required by that subsection, the parent's consent is considered denied.

SECTIONi3.iiSubchapter B, Chapter 261, Family Code, is amended by adding Section 261.111 to read as follows:

Sec.i261.111.iiREFUSAL OF PSYCHIATRIC OR PSYCHOLOGICAL TREATMENT OF CHILD. (a) In this section, "psychotropic drug" means a substance that is:

(1)iiused in the diagnosis, treatment, or prevention of a disease or as a component of a medication; and

(2)iiintended to have an altering effect on perception, emotion, or behavior.

(b)iiThe refusal of a parent, guardian, or managing or possessory conservator of a child to administer or consent to the administration of a psychotropic drug to the child, or to consent to any other psychiatric or psychological treatment of the child, does not by itself constitute neglect of the child unless the refusal to consent:

(1)iipresents a substantial risk of death, disfigurement, or bodily injury to the child; or

(2)iihas resulted in an observable and material impairment to the growth, development, or functioning of the child.

SECTIONi4.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5683

Representative Grusendorf moved to adopt the conference committee report on HBi320.

A record vote was requested.

The motion prevailed by (Record 913): 140 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Thompson; Truitt; Turner; Van Arsdale; Villarreal; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

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

Absent — Capelo; Cook, B.; Dawson; Jones, D.; Krusee; Martinez Fischer; Pitts; Telford.

STATEMENT OF VOTE

When Record No. 913 was taken, I was in the house but away from my desk. I would have voted yes.

Martinez Fischer

HB 471 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Pickett submitted the following conference committee report on HB 471 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi471 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

5684 78th LEGISLATURE — REGULAR SESSION

HB 471, A bill to be entitled An Act relating to the borrowing of money and the issuance of notes by the Texas Transportation Commission; making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubchapter C, Chapter 201, Transportation Code, is amended by adding Section 201.115 to read as follows:

Sec.i201.115.iiBORROWING MONEY. (a) The commission may borrow money from any source to carry out the functions of the department.

(b)iiA loan under this section may be in the form of an agreement, note, contract, or other form as determined by the commission and may contain any provisions the commission considers appropriate, except:

(1)iithe term of the loan may not exceed two years;

(2)iithe amount of the loan, combined with any amounts outstanding on other loans under this section, may not exceed the average monthly revenue deposited to the state highway fund for the 12 months preceding the month of the loan; and

(3)iithe loan may not create general obligation of the state and is payable only as authorized by legislative appropriation.

(c)iiIf the commission borrows money by the issuance of notes, the notes shall be issued in accordance with the requirements of Subchapter N, except that the maturity limitations in Subsection (b) supersede the maturity limitations in Section 201.963.

(d)iiNotwithstanding Section 222.001, money in the state highway fund may be used to repay a loan under this section, if appropriated by the legislature for that purpose.

SECTIONi2.iiChapter 201, Transportation Code, is amended by adding Subchapter N to read as follows:

SUBCHAPTER N. HIGHWAY TAX AND REVENUE ANTICIPATION NOTES

Sec.i201.961.iiDEFINITIONS. In this subchapter:

(1)ii"Committee" means the cash management committee described in Section 404.122, Government Code.

(2)ii"Credit agreement" has the meaning assigned by Section 1208.001, Government Code.

(3)ii"Notes" means tax and revenue anticipation notes issued under this subchapter. The term includes any obligation under a credit agreement.

Sec.i201.962.iiNOTES AUTHORIZED; COMMITTEE APPROVAL. (a) In anticipation of a temporary cash flow shortfall in the state highway fund during any fiscal year, the commission, subject to the approval of the committee, may issue, sell, and deliver tax and revenue anticipation notes on behalf of the state.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5685

(b)iiBefore issuing the notes, the commission shall submit to the committee a state highway fund cash flow shortfall forecast containing a detailed report of estimated revenue and expenditures. Based on the forecast, the committee may approve the issuance of notes in an amount not to exceed the maximum temporary cash flow shortfall forecast.

Sec.i201.963.iiISSUANCE OF NOTES. (a) The commission, consistent with the committee's determination under Section 201.962, may issue, sell, and deliver the notes.

(b)iiNotes issued under this subchapter are not debts of the state and may be used only to make up a temporary shortfall in the state highway fund's cash flow. All notes must mature and be paid in full during the fiscal biennium in which they were issued.

(c)iiExcept as otherwise provided by this subsection, the proceeds of the notes shall be deposited in a special fund in the state treasury known as the highway tax and revenue anticipation note fund. Notwithstanding any other provision of law, depository interest shall be credited to the fund. The department shall transfer the net proceeds from the fund to the state highway fund as necessary to pay authorized expenditures. The comptroller may invest funds in the highway tax and revenue anticipation note fund as authorized under Section 404.024, Government Code. Proceeds of a credit agreement may be deposited as provided by the order authorizing the credit agreement.

(d)iiThe commission may exercise the powers granted to the governing body of an issuer in connection with the issuance of obligations under Chapter 1371, Government Code, to the extent not inconsistent with this subchapter. The notes are not subject to review by the Bond Review Board but are subject to review and approval by the attorney general as provided by Chapter 1371, Government Code. On request, the comptroller may assist the commission with the issuance of notes under this subchapter.

(e)iiThe commission is an authorized issuer under Chapter 1201, Government Code, and that chapter applies to notes authorized by this subchapter.

(f)iiAmounts in the highway tax and revenue anticipation note fund may be pledged to secure the payment of the notes and performance of obligations under credit agreements relating to the notes and may be used to pay issuance costs and required rebates to the federal government.

Sec.i201.964.iiFUND TRANSFERS; INTEREST; PAYMENT OF NOTES. (a) The department periodically shall transfer cash received in the state highway fund to the highway tax and revenue anticipation note fund to ensure the timely payment of the notes.

(b)iiOn payment of all outstanding notes, rebates to the federal government, and costs of issuance, the department shall transfer to the state highway fund any amounts remaining in the highway tax and revenue anticipation note fund. If amounts credited to the highway tax and revenue anticipation note fund are insufficient to pay principal, any premium, interest, issuance costs, and any required rebate to the federal government, amounts in the state highway fund are available for appropriation by the legislature to make those payments.

5686 78th LEGISLATURE — REGULAR SESSION

SECTIONi3.iiFor the fiscal biennium beginning September 1, 2003, the Texas Department of Transportation is appropriated all money deposited in the highway tax and revenue anticipation note fund for the purposes specified in Subchapter N, Chapter 201, Transportation Code, as added by this Act, during that biennium. To the extent that money deposited into the highway tax and revenue anticipation note fund is insufficient to pay the principal of, any premium or interest on, or costs of issuance relating to the notes, and rebates to the federal government, the department is appropriated from the state highway fund the amounts necessary for the full repayment of all principal of, any premium or interest on, or costs of issuance relating to the notes, and rebates to the federal government.

SECTIONi4.ii(a) Section 1 of this Act takes effect on the date on which the constitutional amendment proposed by the 78th Legislature, Regular Session, 2003, providing for authorization of the borrowing of money on a short-term basis by a state transportation agency for transportation-related projects takes effect. If that amendment is not approved by the voters, Section 1 of this Act has no effect.

(b)iiSections 2 and 3 of this Act take effect September 1, 2003.

Representative Pickett moved to adopt the conference committee report on HBi471.

The motion prevailed.

The chair stated that HBi471 was passed subject to the provisions of Article III, Section 49a of the Texas Constitution.

SBi1551 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hartnett submitted the conference committee report on SBi1551.

Representative Hartnett moved to adopt the conference committee report on SBi1551.

The motion prevailed.

HB 3578 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Wong submitted the following conference committee report on HB 3578 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi3578 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5687

HB 3578, A bill to be entitled An Act relating to powers, duties, and name of the Upper Kirby Management District.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiThe heading to Subchapter E, Chapter 376, Local Government Code, is amended to read as follows:

SUBCHAPTER E. HARRIS COUNTY IMPROVEMENT [UPPER KIRBY MANAGEMENT] DISTRICT NO. 3

SECTIONi2.iiSection 376.151(a), Local Government Code, is amended to read as follows:

(a)iiA special district to be known as the "Harris County Improvement [Upper Kirby Management] District No. 3" exists as a governmental agency, body politic and corporate, and political subdivision of the state.

SECTIONi3.iiSection 376.153(2), Local Government Code, is amended to read as follows:

(2)ii"District" means the Harris County Improvement [Upper Kirby Management] District No. 3.

SECTIONi4.iiSection 376.165, Local Government Code, is amended by adding Subsections (g) and (h) to read as follows:

(g)iiAn assessment may be imposed on only a part of the district if only that part will benefit from the service or improvement.

(h)iiThe board may not impose an assessment or finance a service or improvement project under this subchapter unless a written petition requesting the improvement or service has been filed with the board. The petition must be signed by:

(1)iithe owners of a majority of the assessed value of real property in the district or in the area of the district that will be subject to the assessment as determined by the most recent certified tax appraisal roll for Harris County; or

(2)iiat least 25 persons who own real property in the district or the area of the district that will be subject to the assessment, if more than 25 persons own real property in the district or area that will be subject to the assessment as determined by the most recent certified tax appraisal roll for Harris County.

SECTIONi5.iiSection 376.170, Local Government Code, is amended to read as follows:

Sec.i376.170.iiEXEMPTION OF PUBLIC UTILITY FROM FEE OR ASSESSMENT. The district may not impose an impact fee or assessment on the property, equipment, or facilities of an electric utility as defined by Section 31.002, Utilities Code, a gas utility as defined by Section 101.003 or 121.001, Utilities Code, a telecommunications provider as defined by Section 51.002, Utilities Code, or a cable operator as defined by 47 U.S.C. Section 522, as amended.

5688 78th LEGISLATURE — REGULAR SESSION

SECTIONi6.iiSubchapter E, Chapter 376, Local Government Code, is amended by adding Section 376.171 to read as follows:

Sec.i376.171.iiUSE OF ELECTRICAL OR OPTICAL LINES. (a) The district may impose an assessment to pay the cost of:

(1)iiburying or removing electrical power lines, telephone lines, cable or fiber optic lines, or any other type of electrical or optical line;

(2)iiremoving poles and any elevated lines using the poles; and

(3)iireconnecting the lines described by Subdivision (2) to the buildings or other improvements to which the lines were connected.

(b)iiThe district may acquire, operate, or charge fees for the use of the district conduits for:

(1)iianother person's:

(A)iitelecommunications network;

(B)iifiber-optic cable; or

(C)iielectronic transmission line; or

(2)iiany other type of transmission line or supporting facility.

(c)iiThe district may not require a person to use a district conduit.

SECTIONi7.iiSubchapter E, Chapter 376, Local Government Code, is amended by adding Section 376.172 to read as follows:

Sec.i376.172.iiPUBLIC TRANSIT SYSTEM AND PARKING FACILITIES. (a) The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain a public transit system to serve the area within the boundaries of the district.

(b)iiBefore the district may act under Subsection (a), a petition must be filed with the district requesting the action with regard to a public transit system. The petition must be signed by owners of property representing a majority of either the total assessed value or the area of the real property in the district that abuts the right-of-way in which the public transit system is proposed to be located. The determination of a majority is based on the property owners along the entire right-of-way of the proposed transit project and may not be calculated on a block-by-block basis.

(c)iiThe district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parking facilities, including:

(1)iilots, garages, parking terminals, or other structures or accommodations for the parking of motor vehicles; and

(2)iiequipment, entrances, exits, fencing, and other accessories necessary for safety and convenience in the parking of vehicles.

(d)iiA parking facility of the district must be either leased to or operated on behalf of the district by a private entity or an entity other than the district. The district's parking facilities are a program authorized by the legislature under Section 52-a, Article III, Texas Constitution, and accomplish a public purpose under that section even if leased or operated by a private entity for a term of years.

(e)iiThe district's public parking facilities and any lease to a private entity are exempt from the payment of ad valorem taxes and state and local sales and use taxes.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5689

(f)iiThe district may use any of its resources, including revenues, assessments, taxes, and grant or contract proceeds, to pay the cost of acquiring and operating a public transit system or public parking facilities.

(g)iiThe district may adopt rules and regulations covering its public transit system or its public parking facilities except that any rules relating to or affecting the use of the public right-of-way or requirements for off-street parking must be subject to all applicable municipal charter, code, or ordinance requirements.

(h)iiThe district may set and impose fees, charges, or tolls for the use of the public transit system or the public parking facilities and may issue bonds or notes to finance the cost of these facilities.

(i)iiExcept as provided by Subsection (b), if the district pays for or finances the cost of acquiring or operating a public transit system or public parking facilities with resources other than assessments, a petition of property owners or a public hearing is not required.

(j)iiIf the district's acquisition of property for a parking facility that is leased to or operated by a private entity results in the removal from a taxing unit's tax rolls of real property otherwise subject to ad valorem taxation, the district shall pay to the taxing unit in which the property is located, on or before January 1 of each year, as a payment in lieu of taxes, an amount equal to the ad valorem taxes that otherwise would have been levied for the preceding tax year on that real property by the taxing unit, without including the value of any improvements constructed on the property.

SECTIONi8.ii(a) The legislature validates and confirms all acts and proceedings of the Harris County Improvement District No. 3 and the district's board of directors that occurred before the effective date of this Act, including changing the district's name from the "Upper Kirby Management District" to "Harris County Improvement District No. 3."

(b)iiThis section does not apply to any matter that on the effective date of this Act:

(1)iiis involved in litigation, if the litigation ultimately results in the matter being held invalid by a final judgment of a court with jurisdiction; or

(2)iihas been held invalid by a court with jurisdiction.

SECTIONi9.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Representative Wong moved to adopt the conference committee report on HBi3578.

A record vote was requested.

The motion prevailed by (Record 914): 139 Yeas, 0 Nays, 3 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Dukes;

5690 78th LEGISLATURE — REGULAR SESSION

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

Absent — Driver; Eiland; Geren; Howard; Kolkhorst; Krusee; Martinez Fischer; Seaman.

STATEMENTS OF VOTE

When Record No. 914 was taken, I was in the house but away from my desk. I would have voted yes.

Krusee

When Record No. 914 was taken, I was in the house but away from my desk. I would have voted yes.

Martinez Fischer

HB 1119 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Goodman submitted the following conference committee report on HB 1119 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi1119 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5691

HB 1119, A bill to be entitled An Act relating to the disposition of cruelly treated animals.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubchapter B, Chapter 821, Health and Safety Code, is amended by adding Section 821.0211 to read as follows:

Sec.i821.0211.iiADDITIONAL DEFINITION. In this subchapter, "magistrate" means any officer as defined in Article 2.09, Code of Criminal Procedure, except that the term does not include justices of the supreme court, judges of the court of criminal appeals, or courts of appeals, judges or masters of statutory probate courts, or judges or masters of district courts that give preference to family law matters or family district courts under Subchapter D, Chapter 24, Government Code.

SECTIONi2.iiSections 821.022-821.025, Health and Safety Code, are amended to read as follows:

Sec.i821.022.iiSEIZURE OF CRUELLY TREATED ANIMAL. (a) If a peace officer [county sheriff, constable, or deputy constable] or an officer who has responsibility for animal control in a county or municipality has reason to believe that an animal has been or is being cruelly treated, the officer [he] may apply to a justice court or magistrate in the county or to a municipal court in the municipality in which the animal is located for a warrant to seize the animal.

(b)iiOn a showing of probable cause to believe that the animal has been or is being cruelly treated, the court or magistrate shall issue the warrant and set a time within 10 calendar days of the date of issuance for a hearing in the appropriate justice court or municipal court to determine whether the animal has been cruelly treated.

(c)iiThe officer executing the warrant shall cause the animal to be impounded and shall give written notice to the owner of the animal of the time and place of the hearing.

Sec.i821.023.iiHEARING; ORDER OF DISPOSITION [SALE] OR RETURN OF ANIMAL. (a) A finding in a [county] court of competent jurisdiction that the owner of an animal is guilty of an offense under Section 42.09, Penal Code, involving the animal is prima facie evidence at a hearing authorized by Section 821.022 that the animal has been cruelly treated.

(b)iiA statement of an owner made at a hearing provided for under this subchapter is not admissible in a trial of the owner for an offense under Section 42.09, Penal Code.

(c)iiEach interested party is entitled to an opportunity to present evidence at the hearing.

(d)iiIf [Except as provided by Subsection (e), if] the court finds that the animal's owner has cruelly treated the animal, the owner shall be divested of ownership of the animal, and the court shall:

(1)iiorder a public sale of the animal by auction;

(2)iiorder the animal given to a nonprofit animal shelter, pound, or society for the protection of animals; or

5692 78th LEGISLATURE — REGULAR SESSION

(3)iiorder the animal humanely destroyed if the court decides that the best interests of the animal or that the public health and safety would be served by doing so.

(e)iiA [If the] court that finds that an [the] animal's owner has cruelly treated the animal shall order the owner to pay all court costs, including costs of:

(1)iiinvestigation;

(2)iiexpert witnesses;

(3)iihousing and caring for the animal during its impoundment;

(4)iiconducting any public sale ordered by the court; and

(5)iihumanely destroying the animal if destruction is ordered by the court [and that the animal is farm livestock, the owner shall be divested of ownership and the court shall order a public sale of the animal by auction, order the animal given to a nonprofit animal shelter, pound, or society for the protection of animals, or order the animal humanely destroyed if the court decides that the best interests of the animal or that the public health and safety would be served by doing so. In this subsection, "farm livestock" means cattle, hogs, sheep, goats, mules, horses, jacks, jennets, or poultry raised or used on a farm or ranch for food or for the production of legal income].

(f)iiThe court may order that an animal disposed of under Subsection (d)(1) or (d)(2) be spayed or neutered at the cost of the receiving party.

(g)iiThe court shall order the animal returned to the owner if the court does not find that the animal's owner has cruelly treated the animal.

Sec.i821.024.iiSALE OR DISPOSITION OF CRUELLY TREATED ANIMAL. (a) Notice of an auction ordered under this subchapter must be posted on a public bulletin board where other public notices are posted for the county or municipality. At the auction, a bid by the former owner of a cruelly treated animal or the owner's representative may not be accepted.

(b)iiProceeds from the sale of the animal shall be applied first to any costs owed by the former owner under Section 821.023(e) [the expenses incurred in caring for the animal during impoundment and in conducting the auction]. The officer conducting the auction shall pay any excess proceeds to the justice or municipal court ordering the auction. The court shall return the excess proceeds to the former owner of the animal.

(c)iiIf the officer is unable to sell the animal at auction, the officer [he] may cause the animal to be humanely destroyed or may give the animal to a nonprofit animal shelter, pound, or society for the protection of animals.

Sec.i821.025.iiAPPEAL. (a) An owner of an animal ordered sold at public auction as provided in this subchapter may appeal the order to a county court or county court at law in the county in which the justice or municipal court is located. As a condition of perfecting an appeal, the owner must file an appeal bond in an amount determined by the justice or municipal court to be adequate to cover the estimated expenses incurred in housing and caring for the impounded animal during the appeal process. The decision of the county court or county court at law may not be further appealed. An owner may not appeal an order:

(1)iito give the animal to a nonprofit animal shelter, pound, or society for the protection of animals; or

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5693

(2)iito humanely destroy the animal.

(b)iiWhile an appeal under this section is pending, the animal may not be:

(1)iisold[, destroyed,] or given away as provided by Sections 821.023 and 821.024; or

(2)iidestroyed, except under circumstances which would require the humane destruction of the animal to prevent undue pain to or suffering of the animal [821.022-821.024].

SECTIONi3.iiThis Act takes effect September 1, 2003.

Representative Goodman moved to adopt the conference committee report on HBi1119.

The motion prevailed.

HB 1576 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Gallego submitted the following conference committee report on HB 1576 :

Austin, Texas, May 29, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi1576 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 1576, A bill to be entitled An Act relating to the telecommunications planning and oversight council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSections 2054.201(a) and (b), Government Code, are amended to read as follows:

(a)iiThe telecommunications planning and oversight council is composed of:

(1)iia representative of the comptroller's office, appointed by the comptroller;

(2)iithe executive director of the Telecommunications Infrastructure Fund Board;

(3)iia representative of the Texas Building and Procurement Commission, appointed by the executive director of the commission;

(4)iia member representing the interests of state agencies with 1,000 employees or more, appointed by the lieutenant governor;

(5)iia member representing the interests of state agencies with fewer than 1,000 employees, appointed by the speaker of the house of representatives;

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(6)iia member representing the interests of institutions of higher education, appointed by the commissioner of higher education;

(7)iia member representing the interests of The University of Texas System, appointed by the chancellor;

(8)iia member representing the interests of The Texas A&M University System, appointed by the chancellor;

(9)iia member representing the interests of public school districts that are customers of the consolidated telecommunications system, appointed by the governor;

(10)iia member representing the interests of local governments that are customers of the consolidated telecommunications system, appointed by the governor; [and]

(11)iitwo public members with telecommunications expertise, appointed by the governor; and

(12)iia representative of the Health and Human Services Commission, appointed by the commissioner of health and human services.

(b)iiAppointed members of the telecommunications planning and oversight council serve staggered two-year terms, with the terms of four or five members expiring August 31 each year, except that:

(1)iithe representative of the comptroller's office serves at the discretion of the comptroller;

(2)ii[and] the representative of the Texas Building and Procurement Commission serves at the discretion of the executive director of the commission; and

(3)iithe representative of the Health and Human Services Commission serves at the discretion of the commissioner of health and human services.

SECTIONi2.iiSection 2054.206, Government Code, is amended to read as follows:

Sec.i2054.206.iiANNUAL REPORT. The telecommunications planning and oversight council shall submit an annual report not later than November 1 to the department and to each entity served by the consolidated telecommunications system or the centralized capitol complex telephone system. The report must include:

(1)iiinformation about the accomplishment of service objectives and other performance measures for management of the consolidated telecommunications system and the centralized capitol complex telephone system;

(2)iiinformation about the accounting and financial performance of the consolidated telecommunications system and the centralized capitol complex telephone system;

(3)iiestimates of savings to entities served by the consolidated telecommunications system over standard rates available to state agencies that [who] acquire telecommunications services directly;

(4)iitrends in network use, including the number of users, workstations, and locations supported; and

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(5)iirate information for services provided by the consolidated telecommunications system and the centralized capitol complex telephone system.

SECTIONi3.iiSubchapter H, Chapter 2054, Government Code, is amended by adding Section 2054.2025 to read as follows:

Sec.i2054.2025.iiLIMITATION OF LIABILITY. A member of the telecommunications planning and oversight council is not liable in a civil action for an act performed in good faith in the performance of the member's functions.

SECTIONi4.iiSection 2054.205(c), Government Code, is repealed.

SECTIONi5.ii(a) When the terms of the members of the telecommunications planning and oversight council first expire after the effective date of this Act:

(1)iithe lieutenant governor and the speaker of the house of representatives shall each appoint one member, and the governor shall appoint two members, according to Section 2054.201, Government Code, for terms expiring on the first August 31 occurring after the effective date of this Act; and

(2)iithe commissioner of higher education, the chancellor of The University of Texas System, and the chancellor of The Texas A&M University System shall each appoint one member, and the governor shall appoint two members, according to Section 2054.201, Government Code, for terms expiring on the second August 31 occurring after the effective date of this Act.

(b)iiPromptly after this Act takes effect, the commissioner of health and human services shall appoint a representative to the telecommunications planning and oversight council.

SECTIONi6.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Representative Gallego moved to adopt the conference committee report on HBi1576.

A record vote was requested.

The motion prevailed by (Record 915): 138 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Flores; Flynn; Gallego; Garza; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, P.; Morrison; Mowery; Naishtat; Nixon;

5696 78th LEGISLATURE — REGULAR SESSION

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

Absent — Bailey; Capelo; Dutton; Farrar; Gattis; Hardcastle; Mabry; Moreno, J.; Smith, W.; Van Arsdale.

(Mabry in the chair)

HCR 286 - ADOPTED
(by Wise)

Representative Wise moved to suspend all necessary rules to take up and consider at this time HCRi286.

The motion prevailed without objection.

The following resolution was laid before the house:

HCR 286, Honoring U.S. Marine Corporal Manuel Espinoza, Jr., of Weslaco for his bravery during Operation Iraqi Freedom.

HCR 286 was adopted without objection.

HB 638 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Chisum submitted the following conference committee report on HB 638 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi638 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 638, A bill to be entitled An Act relating to emissions reductions incentives and the emissions reductions incentives account.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSections 382.051865(a), (c), and (d), Health and Safety Code, are amended to read as follows:

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(a)iiThe commission by rule shall [may] develop a program for the reduction of emissions of nitrogen oxides from reciprocating internal combustion engines associated with pipelines that are required by this subchapter to reduce the hourly emissions rate of nitrogen oxides, expressed in terms of grams per brake horsepower-hour, by at least 50 percent. In developing a program under this section the commission must cooperate with:

(1)iilocal governments;

(2)iiagencies, departments, and political subdivisions of the state; and

(3)iithe United States and its agencies.

(c)iiThe emissions reduction program shall [may] include incentives as developed by the commission for nitrogen oxides emissions reduction projects for reciprocating internal combustion engines described by Subsection (a), including a partial reimbursement for the capital cost of installing technology to reduce the emissions. The incentives may be applied only to expenses of projects to achieve those reductions of a reciprocating internal combustion engine's hourly emissions rate of nitrogen oxides, expressed in terms of grams per brake horsepower-hour, only to the extent the reductions exceed 30 percent and do not exceed 50 percent of the engine's emissions rate before modification.

(d)iiRules adopted under this section may not require more stringent emissions reduction [must include] criteria than those specified in this subsection for [the] determining eligibility for an emissions reduction project incentive under the program. To be eligible under the criteria, a facility must:

(1)iibe subject to the requirement under this subchapter that it reduce its hourly emissions rate of nitrogen oxides, expressed in terms of grams per brake horsepower-hour, by 50 percent;

(2)iibe reducing its hourly emissions rate of nitrogen oxides, expressed in terms of grams per brake horsepower-hour, by at least 50 percent; and

(3)iibe located in the East Texas region established by this subchapter for purposes of compliance with permit requirements for facilities affected by Section 382.0518(g).

SECTIONi2.iiSection 78(b), Chapter 1158, Acts of the 77th Legislature, Regular Session, 2001, is transferred to Subchapter C, Chapter 382, Health and Safety Code, redesignated as Section 382.051866 of that subchapter, and amended to read as follows:

Sec.i382.051866. [(b)] EMISSIONS REDUCTIONS INCENTIVES ACCOUNT. (a) In this section, "affiliate" means a person that directly or indirectly controls, is controlled by, or is under common control with another person.

(b)i[(1)]iiThe comptroller of public accounts shall establish an account within the clean air account [no. 151] to be known as the emissions reductions incentives account.

(c)i[(2)]iiThe emissions reductions incentives account consists of money from:

(1)i[(A)]iigifts, grants, or donations to the account for a designated or general use; [and]

(2)i[(B)]iimoney from any other source the legislature designates; and

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(3)iithe interest earned on money in the emissions reductions incentives account.

(d)iiMoneyi[(3)iiThe commission may use the money] in the emissions reductions incentives account may be appropriated only to pay for emissions reduction project incentives under a program developed under Section 382.051865[, Health and Safety Code,] and administrative expenses associated with providing the incentives or the incentive program established under that section.

(e)iiA person or an affiliate of a person who pays or contributes money to the emissions reductions incentives account is ineligible to receive money from the account under a program developed under Section 382.051865.

(f)i[(4)]iiThe emissions reductions incentives account is exempt from the application of Section 403.095, Government Code.

SECTIONi3.iiSection 382.05186, Health and Safety Code, is amended by adding Subsection (j) to read as follows:

(j)iiA reciprocating internal combustion engine that is subject to this section and to a mass emissions cap as established by commission rule is considered permitted under this section with respect to all air contaminants if the facility is:

(1)iilocated in an area designated nonattainment for an ozone national ambient air quality standard; and

(2)iiachieving compliance with all state and federal requirements designated for that area.

SECTIONi4.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Representative Chisum moved to adopt the conference committee report on HBi638.

A record vote was requested.

The motion prevailed by (Record 916): 148 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5699

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

HB 2533 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative B. Brown submitted the following conference committee report on HB 2533 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi2533 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 2533, A bill to be entitled An Act relating to the creation of Lake View Management and Development District in Henderson County; providing authority to impose a tax and issue bonds; granting the power of eminent domain.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiCREATION AND NAMING OF DISTRICT; CONTROLLING LAW. (a) The Lake View Management and Development District is created as a special district under Section 59, Article XVI, Texas Constitution.

(b)iiThe board by resolution may change the district's name. The board shall give written notice of the change to the commission.

(c)iiThe district is a unit of government for the purposes of Chapter 101, Civil Practice and Remedies Code, and operations of the district are considered to be essential governmental functions and not proprietary functions for all purposes, including the application of that chapter.

SECTIONi2.iiDEFINITIONS. In this Act:

(1)ii"Board" means the board of directors of the district.

(2)ii"Commission" means the Texas Commission on Environmental Quality.

(3)ii"District" means the Lake View Management and Development District.

(4)ii"Improvement project" means a program or project authorized by Section 15 of this Act, inside or outside the boundaries of the district.

5700 78th LEGISLATURE — REGULAR SESSION

SECTIONi3.iiBOUNDARIES. The district includes the land located in Henderson County that is described and defined by metes and bounds, as follows, to-wit:

BEING a 549.0 acre tract of land situated in the G. Martinez Survey, Abstract No. 481, Henderson County, Texas, and being comprised of nine (9) tracts of land as conveyed in six (6) deeds to Long Cove Ranch Company as follows: (1) Parcel 10C and Parcel 10D described as Tracts 10 C, 56.41 acres and 10 D, 54.86 acres in Volume 2158, Page 001, Deed Records, Henderson County, Texas, (2) Parcel 9 described as 140.0 acres in Volume 2143, Page 363, Deed Records, Henderson County, Texas, (3) Parcel 8 described as 100.0 acres in Volume 2030, Page 555, Deed Records, Henderson County, Texas, (4) Parcel 7 described as 40.72 acres in Volume 2030, Page 541, Deed Records, Henderson County, Texas, (5) Parcels 6A, 6B, and 6D described as 11.064 acres, 44.317 acres and 61.686 acres tracts respectively in Volume 1960, Page 595, Deed Records, Henderson County, Texas, and (6) portion of Parcel 4, the easterly 40 acres of the first tract described in Volume 1769, Page 768, Deed Records, Henderson County, Texas, and being more particularly described as follows:

BEGINNING at the intersection of the north line of Parcel 8 with the deeded 325 foot elevation take line of Cedar Creek Lake;

THENCE North 89 degrees 23 minutes 11 seconds East, along the north line of Parcel 8 , called the north line of Martinez Survey and the south line of Thomas Caro Survey, a distance of 654.83 feet to the northeast corner of said Parcel 8 and the northwest corner of Parcel 10C;

THENCE North 89 degrees 46 minutes 07 seconds East, along the north line of Parcel 10C, called the north line of said Martinez Survey, a distance of 1,203.86 feet to the northeast corner of said Parcel 10C;

THENCE South 00 degrees 47 minutes 49 seconds West, along the east line of Parcel 10 C, a distance of 2,418.84 feet to the southeast corner of said Parcel 10C;

THENCE South 88 degrees 14 minutes 18 seconds West, along the south line of Parcel 10 C, a distance of 1,175.96 feet to the southeast corner of Parcel 8;

THENCE South 88 degrees 53 minutes 14 seconds West, along the south line of Parcel 8, a distance of 1,254.61 feet to a point in the east line of Parcel 10D;

THENCE South 00 degrees 06 minutes 04 seconds East, along the east line of Parcel 10 C, a distance of 348.17 feet to the southeast corner of said Parcel 10 C and the northeast corner of Parcel 9;

THENCE South 00 degrees 06 minutes 04 seconds East, along the east line of Parcel 9, a distance of 2,520.78 feet to the southeast corner of said Parcel 9;

THENCE North 89 degrees 49 minutes 16 seconds West, along the south line of Parcel 9, a distance of 2,689.08 feet to the southwest corner of said Parcel 9 in the east line of Parcel 6 D;

THENCE South 00 degrees 33 minutes 24 seconds West, along the east line of Parcel 6 D, a distance of 51.64 feet to an angle point in said east line;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5701

THENCE South 00 degrees 25 minutes 27 seconds East, continuing along the east line of Parcel 6 D, a distance of 1,844.44 feet to the southeast corner of said Parcel 6 D;

THENCE South 88 degrees 23 minutes 18 seconds West, along the south line of Parcel 6 D, a distance of 1,534.22 feet to southwest corner of said Parcel 6 D and the southeast corner of Parcel 4;

THENCE North 00 degrees 02 minutes 41 seconds East, crossing Parcel 4, a distance of 2,918.36 feet to the deeded 325 foot elevation take line of Cedar Creek Lake;

THENCE generally in a northeasterly direction with it's meanders along the deeded 325 foot elevation take line of Cedar Creek Lake to the PLACE OF BEGINNING and containing 549.0 acres of land more or less.

SECTIONi4.iiFINDINGS RELATING TO BOUNDARIES. The boundaries of the district form a closure. A mistake in the name or spelling of a party to a deed or to the page or volume where filed in the deed records of Henderson County, or in the name of a survey or abstract, does not affect:

(1)iithe district's organization, existence, or validity;

(2)iithe district's right to enter into any type of contract for the purposes for which the district is created;

(3)iithe district's right to impose, assess, or collect taxes, fees, or charges; or

(4)iithe operation of the board or the district.

SECTIONi5.iiLEGISLATIVE DECLARATIONS AND FINDINGS. (a) The legislature finds that all of the land and other property included in the district will benefit from the improvement projects and services to be accomplished by the district under powers conferred by Sections 52 and 52a, Article III, and Section 59, Article XVI, Texas Constitution, and the other powers granted under this Act, and the creation of the district is essential to accomplish the purposes of those provisions and to accomplish the other public purposes stated in this Act.

(b)iiThe legislature further finds that the creation of the district:

(1)iiis essential to the conservation and beneficial use of the water, land, soil, and other natural resources in or adjacent to the district;

(2)iiis essential to further the public purposes of the economic development and diversification of the state, the elimination of unemployment and underemployment, and the stimulation and development of transportation and commerce;

(3)iiwill promote the health, safety, and general welfare of residents, employers, employees, and consumers in the district and in Henderson County and of the public; and

(4)iiis in the public interest.

(c)iiThe district's operations and the district's improvement projects will enable the district to preserve, maintain, and enhance the economic health and vitality of the area in the district as a community, residential, recreational, business, and commerce center. The district will further promote the health, safety, welfare, education, convenience, and enjoyment of the public by improving, landscaping, and developing certain areas in and adjacent to the

5702 78th LEGISLATURE — REGULAR SESSION

SECTIONi6.iiCONSTRUCTION OF ACT. (a) This Act shall be liberally construed in conformity with the findings and purposes stated in this Act.

(b)iiChapter 311, Government Code, applies to this Act.

SECTIONi7.iiGENERAL POWERS AND DUTIES. (a) The district has all of the powers and duties provided by the following:

(1)iithe general laws relating to conservation and reclamation districts created under Section 59, Article XVI, Texas Constitution, including Chapters 49 and 54, Water Code, except that the district's bonds and other securities are not subject to the jurisdiction or supervision of the commission under Chapter 49, Water Code, or other law;

(2)iithe general laws relating to road districts and road utility districts created under Section 52(b), Article III, Texas Constitution, including Chapter 441, Transportation Code;

(3)iiChapter 372, Local Government Code, in the same manner as a municipality or a county;

(4)iiChapter 375, Local Government Code; and

(5)iiSection 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes).

(b)iiA provision of this Act prevails over a provision of the general law that is in conflict or inconsistent with this Act.

SECTIONi8.iiBOARD OF DIRECTORS; ELIGIBILITY. (a) Except as provided by Subsections (b) and (c) of this section, the district is governed by a board of five directors who serve staggered terms of four years.

(b)iiThe following directors serve until March 1, 2008:

(1)iiPosition One: Murray Holland

(2)iiPosition Two: Scott Griffith

(3)iiPosition Three: Thomas Corcoran

(4)iiPosition Four: David Jaderlund

(5)iiPosition Five: Robert Whitman

(c)iiThe board shall hold an election to elect all directors on the uniform election day in February 2008. Persons elected to Positions One and Two serve terms expiring March 1, 2010. Persons elected to Positions Three, Four, and Five serve terms expiring March 1, 2012.

(d)iiStarting in 2010, the board shall hold an election on the uniform election day in February of an even-numbered year to elect directors to fill the positions the terms of which expire on March 1 of that year.

(e)iiOther than a director listed in Subsection (b) of this section, to be qualified to serve as a director a person must be at least 18 years of age and:

(1)iireside in the district;

(2)iiown real property in the district;

(3)iiown at least 10 percent of the outstanding interest of a corporation or general or limited partnership that owns real property in the district; or

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5703

(4)iibe an agent, employee, officer, or director of a corporation, limited liability company, or partnership that owns real property in the district.

SECTIONi9.iiVACANCY. A vacancy on the board shall be filled by appointment by the remaining members of the board of a person who meets the qualifications under Section 8(e) of this Act.

SECTIONi10.iiDIRECTOR'S BOND; OATH. (a) As soon as practicable after a director is elected or appointed, the director shall execute a bond for $10,000 payable to the district and conditioned on the faithful performance of the director's duties. The bond must be approved by the board.

(b)iiEach director shall take the oath of office prescribed by the constitution for public office.

(c)iiThe bond and oath shall be filed with the district and the district shall retain the bond and oath in its records.

(d)iiThe district shall pay the cost of a bond executed under Subsection (a) of this section.

SECTIONi11.iiOFFICERS. The board shall elect a chair, a vice chair, and a secretary from its members.

SECTIONi12.iiCOMPENSATION. A director is not entitled to compensation for service on the board but is entitled to be reimbursed for necessary and reasonable expenses incurred in carrying out the duties and responsibilities of a director.

SECTIONi13.iiQUORUM. Three directors are a quorum. A concurrence of a majority of a quorum of the board shall be required for any official action of the district.

SECTIONi14.iiDISTRICT CONFIRMATION ELECTION. (a) As soon as practicable after all initial directors have qualified for office, the initial directors shall hold an organizational meeting and call a confirmation election to be held not later than the second uniform election date occurring after the date of the organizational meeting.

(b)iiThe confirmation election shall be called and held to confirm the establishment of the district in the manner provided by Subchapter D, Chapter 49, Water Code. If a majority of the votes cast at a confirmation election do not favor the creation of the district, the board may call succeeding elections on a uniform election date, but may not call another confirmation election sooner than six months after the date of the previous election.

(c)iiBefore the district is confirmed at an election, the district may carry on any business as the board may determine except that the district may not borrow money or impose or assess a tax or an assessment.

SECTIONi15.iiIMPROVEMENT PROJECTS. The district may provide, or it may enter into contracts with a governmental or private entity to provide, the following types of improvement projects or activities in support of or incidental to those projects:

(1)iiretail or wholesale water treatment, supply, and distribution facilities and systems to provide potable and nonpotable water to the residents and businesses of the district, including wastewater and sewerage collection and

5704 78th LEGISLATURE — REGULAR SESSION

(2)iithe provision of septic tank maintenance services inside or outside the district and of solid waste disposal services if the board determines the action to be necessary and appropriate to protect the district;

(3)iimacadamized, graveled, or paved roads, streets, and turnpikes, inside and outside the district to the extent authorized by Section 52, Article III, Texas Constitution;

(4)iithe planning, design, construction, improvement, and maintenance of:

(A)iilandscaping;

(B)iihighway right-of-way or transit corridor beautification and improvements;

(C)iilighting, banners, and signs;

(D)iistreets or sidewalks;

(E)iihiking and cycling paths and trails, pedestrian walkways, skywalks, crosswalks, or tunnels;

(F)iiparks, lakes, gardens, recreational and sports facilities, open space, scenic areas, and related exhibits and preserves;

(G)iifountains, plazas, and pedestrian malls; and

(H)iidrainage or storm-water detention improvements;

(5)iiprotection and improvement of the quality of storm water that flows through the district;

(6)iithe planning, design, construction, improvement, maintenance, and operation of:

(A)iisolid waste, water, sewer, or power facilities or services, including electrical, gas, steam, and chilled water facilities; or

(B)iioff-street parking facilities and heliports;

(7)iithe planning and acquisition of:

(A)iipublic art and sculpture and related exhibits and facilities; and

(B)iieducational and cultural exhibits and facilities;

(8)iithe planning, design, construction, acquisition, lease, rental, improvement, maintenance, installation, and management of and provision of furnishings for facilities for:

(A)iiconferences, conventions, or exhibitions;

(B)iimanufacturer, consumer, or trade shows;

(C)iicivic, community, or institutional events; and

(D)iiexhibits, displays, attractions, special events, and seasonal or cultural celebrations and holidays;

(9)iithe removal, razing, demolition, or clearing of land or improvements in connection with any improvement project;

(10)iithe acquisition and improvement of land and other property for the mitigation of the environmental effects of any improvement project;

(11)iithe acquisition of property or an interest in property in connection with an authorized improvement project;

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(12)iiany special or supplemental services for the improvement and promotion of the district or the areas adjacent to the district or for the protection of public health and safety within or adjacent to the district, including advertising, promotion, tourism, health and sanitation, public safety, security, fire protection or emergency medical services, business recruitment, development, elimination of traffic congestion, and recreational, educational, or cultural improvements, enhancements, and services; and

(13)iiany similar public improvements, facilities, or services.

SECTIONi16.iiPOWERS RELATED GENERALLY TO CONTRACTS AND FINANCIAL MATTERS. (a) The district may:

(1)iiimpose an ad valorem tax in accordance with Chapter 375, Local Government Code, on all taxable property in the district;

(2)iiimpose an assessment or impact fee in the manner provided for a municipality or county under Chapter 372, Local Government Code, on all industrial, commercial, and residential property in the district;

(3)iiimpose, assess, and apply the proceeds from a limited sales and use tax, and a hotel occupancy tax, as authorized by this Act;

(4)iiimpose rates, fees, and charges for the use of any improvement project or the consumption of a product resulting from an improvement project;

(5)iiborrow money for district purposes by issuing or executing bonds, notes, credit agreements, or other obligations of any kind found by the board to be necessary or appropriate for district purposes;

(6)iienter into a contract with any person for the accomplishment of any district purpose, including a contract for:

(A)iithe payment, repayment, or reimbursement of costs incurred by that person on behalf of the district, including all or part of the costs of an improvement project and interest on the reimbursed cost; or

(B)iithe use, occupancy, lease, rental, operation, maintenance, or management of all or part of a proposed or existing improvement project;

(7)iiapply for and contract with any person to receive, administer, and perform any duty or obligation of the district under a federal, state, local, or private gift, grant, loan, conveyance, transfer, bequest, donation, or other financial assistance arrangement relating to the investigation, planning, analysis, study, design, acquisition, construction, improvement, completion, implementation, or operation by the district or others of a proposed or existing improvement project;

(8)iiestablish, revise, repeal, enforce, collect, and apply the proceeds from user fees or charges for the enjoyment, sale, rental, or other use of the district's facilities, services, properties, or improvement projects;

(9)iiprovide or secure the payment or repayment of the costs and expenses of the establishment, administration, and operation of the district and the district's costs or share of the costs of an improvement project or district contractual obligation or indebtedness by or through a lease, installment purchase contract, or other agreement with any person, or the imposition of taxes, user fees, concessions, rentals, or other revenues or resources of the district;

5706 78th LEGISLATURE — REGULAR SESSION

(10)iiestablish user charges related to the operation of various public services, including public water supply services, for the collection and treatment of wastewater, and for the operation of storm-water facilities, including the regulation of storm water for the protection of water quality in the district, and for the provision of septic tank maintenance services inside and outside the district;

(11)iiundertake separately or jointly with other persons all or part of the cost of an improvement project, including an improvement project:

(A)iifor improving, enhancing, and supporting public safety and security, fire protection and emergency medical services, and law enforcement in and adjacent to the district; or

(B)iithat confers a general benefit on the entire district or a special benefit on a definable part of the district; and

(12)iienter into tax abatement agreements in accordance with the general laws of the state authorizing and applicable to tax abatement agreements by municipalities.

(b)iiA contract the district enters into to carry out a purpose of this Act may be on any terms and for any period as the board may determine.

(c)iiA state agency, a municipality, Henderson County, any other political subdivision, a corporation, an individual, or any other entity may contract with the district to carry out the purposes of this Act without any further statutory or other authorization.

SECTIONi17.iiRULES. The district may adopt rules:

(1)iito administer or operate the district;

(2)iifor the use, enjoyment, availability, protection, security, and maintenance of the district's properties and facilities; or

(3)iito provide for public safety and security in the district.

SECTIONi18.iiADDITION OR REMOVAL OF TERRITORY. The board may add, delete, or exclude territory in the manner provided by Subchapter J, Chapter 49, Water Code, as limited by Section 54.016, Water Code, except that:

(1)iifor purposes of this section, a reference in Subchapter J, Chapter 49, Water Code, or Section 54.016, Water Code, to a tax means an ad valorem tax;

(2)iiSection 54.016, Water Code, and Section 42.042, Local Government Code, do not apply to the district's annexation of land restricted primarily to commercial or business use;

(3)iiland may not be added or annexed to the district without the consent of the owners of the land; and

(4)iiland may not be removed or disannexed from the district at any time during which any bonds or other obligations of the district that are payable, in whole or in part, from ad valorem taxes are outstanding.

SECTIONi19.iiEMINENT DOMAIN. (a) Within the boundaries of the district, the district may exercise the power of eminent domain for all public purposes.

(b)iiOutside the boundaries of the district, the district may exercise the power of eminent domain only for the purpose of constructing, acquiring, operating, repairing, or maintaining water supply lines or sanitary sewer lines.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5707

(c)iiThe district's power of eminent domain is exercised in the same manner as required for a county.

SECTIONi20.iiNONPROFIT CORPORATION. (a) The district, by board resolution, may authorize the incorporation of a nonprofit corporation to assist and act for the district in implementing an improvement project or providing services authorized by this Act.

(b)iiThe board shall appoint the board of directors of a nonprofit corporation created under this section. The board of directors of the nonprofit corporation shall serve in the same manner as, for the same term as, and on the same conditions as a board of directors of a local government corporation created under Subchapter D, Chapter 431, Transportation Code.

(c)iiA nonprofit corporation created under this section:

(1)iihas each power of and is considered for purposes of this Act to be a local government corporation created under Subchapter D, Chapter 431, Transportation Code; and

(2)iimay implement an improvement project and provide a service authorized by this Act and approved by the board.

SECTIONi21.iiECONOMIC DEVELOPMENT. The district may create economic development programs and exercise the economic development powers and authority that Chapter 380, Local Government Code, provides to a municipality with a population of more than 100,000, and Chapter 1509, Government Code, provides to any municipality.

SECTIONi22.iiTERMS OF EMPLOYMENT; COMPENSATION. The board may employ and establish the terms of employment and compensation of an executive director or general manager and any other employees of the district the board considers necessary.

SECTIONi23.iiUSE OF ROADWAYS, PARKS, OTHER PUBLIC AREAS OF THE DISTRICT. (a) The board by rule may regulate the private use of public roadways, open spaces, parks, sidewalks, and similar public areas in the district. To the extent the rules of the district conflict with a rule, order, or regulation of Henderson County or the Tarrant Regional Water District, the rule, order, or regulation of the county or Tarrant Regional Water District controls. The rules may provide for the safe and orderly use of public roadways, open spaces, parks, sidewalks, and similar public areas or facilities.

(b)iiThe board may require a permit for a parade, demonstration, celebration, entertainment event, or a similar nongovernmental activity in or on the public roadways, open spaces, parks, sidewalks, and similar public areas or facilities. The board may charge a fee for the permit application and for public safety or security services in an amount the board considers necessary.

(c)iiThe board may require a permit or franchise agreement with a vendor, concessionaire, exhibitor, or similar private or commercial person or organization for the limited use of the area or facilities on terms and on payment of a permit or franchise fee the board may impose.

5708 78th LEGISLATURE — REGULAR SESSION

SECTIONi24.iiZONING BY COUNTY. (a) If requested by the district to exercise zoning powers, Henderson County may exercise, solely in the boundaries of the district, the zoning powers granted to counties in Subchapter E, Chapter 231, Local Government Code, without holding the election required by Section 231.075.

(b)iiIf the county exercises zoning powers, the board shall exercise and perform the powers, duties, and functions of a lake planning commission under Section 231.077, Local Government Code.

(c)iiThis section does not apply to land or facilities owned by the Tarrant Regional Water District.

SECTIONi25.iiIMPACT FEES AND ASSESSMENTS. (a) The district may only impose impact fees and assessments in the manner provided by Chapter 372, Local Government Code, for a municipality, county, or public improvement district, according to benefits received by the property, including an impact fee or assessment on residential property.

(b)iiAn impact fee for residential property must be for the limited purposes of providing capital funding for public water and wastewater facilities, for drainage and storm-water facilities, and for streets and alleys.

(c)iiThe district may not impose an impact fee or assessment on the property, equipment, or facilities of a public utility provider or a cable operator as defined by 47 U.S.C. Section 522, as amended.

SECTIONi26.iiOPERATION AND MAINTENANCE TAX; ELECTION. (a) The district may impose a tax for operation and maintenance purposes, including for funds for planning, constructing, acquiring, maintaining, repairing, and operating all necessary land, plants, works, facilities, improvements, appliances, and equipment of the district and for paying costs of services, engineering and legal fees, and organization and administrative expenses.

(b)iiAn operation and maintenance tax may not be imposed until it is approved by the qualified voters in the district voting at an election held for that purpose. If a majority of the votes cast at the election approve the imposition of the tax, the board may impose the tax and have it assessed and collected in the same manner as other district taxes.

(c)iiAn operation and maintenance tax election may be held at the same time and in conjunction with any other district election. The election may be called by a separate election order or as part of any other election order.

(d)iiThe proposition in an operation and maintenance tax election may be for a specific maximum rate or for an unlimited rate.

(e)iiIf the district has surplus operation or maintenance tax funds that are not needed for the purposes for which they were collected, the funds may be used for any authorized purpose.

(f)iiSections 26.04, 26.05, and 26.07, Tax Code, do not apply to a tax levied and collected under this section or an ad valorem tax levied and collected for the payment of the interest on and principal of bonds issued by the district.

SECTIONi27.iiTAX LEVY FOR BONDS AND OTHER OBLIGATIONS. (a) At the time bonds or other obligations payable in whole or in part from ad valorem taxes are issued:

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5709

(1)iithe board shall impose a continuing direct annual ad valorem tax, without limit as to rate or amount, for each year while all or part of the bonds are outstanding; and

(2)iithe district shall annually assess and collect an ad valorem tax on all taxable property in the district in an amount sufficient to:

(A)iipay the interest on the bonds or other obligations as it becomes due;

(B)iicreate a sinking fund for the payment of the principal of the bonds or other obligations when due or the redemption price at any earlier required redemption date; and

(C)iipay the expenses of assessing and collecting the taxes.

(b)iiBonds or other obligations that are secured by and payable from ad valorem taxes may not be issued unless the bonds and the imposition of the taxes are approved by a majority of the voters in the district voting at an election held for that purpose.

(c)iiThe district shall conduct an election required by this section in the manner provided by Subchapter L, Chapter 375, Local Government Code.

SECTIONi28.iiLIMITED SALES AND USE TAX. (a) Words and phrases used in this section that are defined by Chapters 151 and 321, Tax Code, have the meanings assigned by Chapters 151 and 321, Tax Code.

(b)iiExcept as otherwise provided in this section, Subtitles A and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to the taxes and to the administration and enforcement of the taxes imposed by the district in the same manner that those laws apply to state taxes.

(c)iiThe district may adopt, reduce, or repeal the limited sales and use tax authorized by this section at an election in which a majority of the voters of the district voting in the election approve the adoption or the abolition of the tax, as applicable.

(d)iiThe provisions of Subchapters C, D, E, and F, Chapter 323, Tax Code, relating to county sales and use taxes shall apply to the application, collection, and administration of a sales and use tax imposed under this section to the extent consistent with this Act, as if references in Chapter 323, Tax Code, to a county referred to the district and references to a commissioners court referred to the board. Sections 323.401-323.404 and 323.505, Tax Code, do not apply to a tax imposed under this section.

(e)iiA tax imposed under this section or the repeal or reduction of a tax under this section takes effect on the first day of the calendar quarter occurring after the date on which the comptroller receives the copy of the resolution as required by Section 323.405(b), Tax Code.

(f)iiOn adoption of the tax authorized by this section, there is imposed a tax of two percent, or the maximum rate at which the combined tax rate of all local sales and use taxes in any location in the district does not exceed two percent, on the receipts from the sale at retail of taxable items within the district, and an excise tax on the use, storage, or other consumption within the district of taxable

5710 78th LEGISLATURE — REGULAR SESSION

(g)iiAn election to authorize, reduce, or repeal a limited sales and use tax may be called by order of the board and must be held on the next available uniform election date that occurs 45 or more days after the date on which the order calling the election was passed. The district shall provide notice of the election and shall hold and conduct the election in the manner prescribed by Chapter 54, Water Code, for bond elections for municipal utility districts. The ballots shall be printed to provide for voting for or against the appropriate one of the following propositions:

(1)ii"Adoption of a ___ percent district sales and use tax within the district";

(2)ii"Reduction of the district sales and use tax within the district from ___ percent to ___ percent"; or

(3)ii"Abolition of the district sales and use tax within the district."

(h)iiIf all or part of the territory of the district is annexed by a municipality that has adopted and is imposing a sales and use tax, the sales and use tax imposed by the district in the annexed territory shall be reduced, if required, in even multiples of one-eighth percent, and without the necessity for an election, so that the combined rate of all sales and use taxes imposed by Henderson County, the annexing municipality, and all other political subdivisions within the annexed territory of the district will not exceed two percent.

(i)iiIf the sales and use tax of Henderson County, an annexing municipality, or another political subdivision is required to be reduced under Subsection (h) of this section, the county, municipality, or other political subdivision is subject to Sections 321.102(e), (f), and (g), Tax Code.

(j)iiA tax imposed under this section or the reduction or repeal of a tax under this section takes effect on the first day of the calendar quarter occurring after the date on which the comptroller receives the notice required by Section 323.405(b), Tax Code.

(k)iiNot later than the 10th day after the date of the annexation or exclusion of territory by the district or the annexation of all or part of the territory of the district by a municipality requiring a reduction of the district's sales and use tax as provided by Subsection (h) of this section, the board shall send to the comptroller, by certified or registered mail, certified copies of all resolutions, orders, or ordinances pertaining to the annexation or exclusion of the territory by a district or municipality.

(l)iiThe district may examine and receive information related to the imposition, assessment, and collection of sales and use taxes to the same extent as if the district were a municipality.

SECTIONi29.iiHOTEL OCCUPANCY TAX. (a) In this section, "hotel" has the meaning assigned by Section 156.001, Tax Code.

(b)iiThe board by order may impose, repeal, or increase or decrease the rate of a tax on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5711

(c)iiExcept as inconsistent with this section, Subchapter A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized under this section, including the collection of the tax, subject to the limitations prescribed by Sections 352.002(b) and (c), Tax Code.

(d)iiThe district may examine and receive information related to the imposition, assessment, and collection of hotel occupancy taxes to the same extent as if the district were a municipality.

(e)iiFor purposes of this section, a reference in Subchapter A, Chapter 352, Tax Code, to a county is a reference to the district and a reference in Subchapter A, Chapter 352, Tax Code, to the county's officers or governing body is a reference to the board.

SECTIONi30.iiUSE OF HOTEL OCCUPANCY TAX. (a) The district shall apply the proceeds from a hotel occupancy tax imposed under this Act for any of the district's purposes and for the purposes described by Section 352.1015, Tax Code, to the extent considered appropriate by the board.

(b)iiDuring each interval of three calendar years following the date on which a hotel occupancy tax imposed under this section is initially collected, the board may not apply an annual average of more than 10 percent of the amount of tax collected under Section 29 of this Act, excluding any interest earnings or investment profits and after a deduction for the costs of imposing and collecting the taxes, for the administrative expenses of the district or a district purpose other than:

(1)iithe costs of advertising and promoting tourism; or

(2)iithe costs of business development and commerce, including the costs of planning, designing, constructing, acquiring, leasing, financing, owning, operating, maintaining, managing, improving, repairing, rehabilitating, or reconstructing improvement projects for conferences, conventions, and exhibitions, manufacturer, consumer, or trade shows, and civic, community, or institutional events.

(c)iiFor purposes of this section, a reference in Subchapter B, Chapter 352, Tax Code, to a county is a reference to the district and a reference in Subchapter B, Chapter 352, Tax Code, to the county's officers or governing body is a reference to the board.

SECTIONi31.iiBONDS AND OTHER OBLIGATIONS. (a) The district may issue bonds in the manner provided by Subchapter J, Chapter 375, Local Government Code, except that Sections 375.207 and 375.208 do not apply to bonds issued under this Act.

(b)iiIn addition to the sources of money described by Subchapter J, Chapter 375, Local Government Code, the bonds of the district may be secured and made payable, wholly or partly, by a pledge of any part of the net proceeds the district receives from the sales and use tax and the hotel occupancy tax authorized by this Act and from any other district revenues.

5712 78th LEGISLATURE — REGULAR SESSION

SECTIONi32.iiDISSOLUTION. (a) Except as provided by Subsection (b) and the terms of a joint development and operating agreement, the board:

(1)iimay dissolve the district by majority vote; and

(2)iishall dissolve the district on receipt of a written petition requesting dissolution signed by the owners of 75 percent of the acreage of real property in the district.

(b)iiThe board may not dissolve the district until the district's outstanding indebtedness or contractual obligations have been repaid or discharged.

(c)iiAfter the board dissolves the district, the board shall transfer ownership of all property and assets of the district to Henderson County.

SECTIONi33.iiADDITIONAL LEGISLATIVE FINDINGS. The legislature finds that:

(1)iiproper and legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished by the constitution and laws of this state, including the governor, who has submitted the notice and Act to the commission;

(2)iithe commission has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time;

(3)iithe general law relating to consent by political subdivisions to the creation of districts with conservation, reclamation, and road powers and the inclusion of land in those districts has been complied with; and

(4)iiall requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished.

SECTIONi34.iiEFFECTIVE DATE. This Act takes effect February 15, 2004.

Representative B. Brown moved to adopt the conference committee report on HBi2533.

The motion prevailed.

HB 2593 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Homer submitted the following conference committee report on HB 2593 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5713

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi2593 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 2593, A bill to be entitled An Act relating to winery permits.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSections 16.01(a) and (c), Alcoholic Beverage Code, are amended to read as follows:

(a)iiExcept as provided by Section 16.011, the [The] holder of a winery permit may:

(1)iimanufacture, bottle, label, and package wine containing not more than 24 percent alcohol by volume;

(2)iimanufacture and import grape brandy for fortifying purposes only and to be used only on his licensed premises;

(3)iisell wine in this state to or buy wine from permit holders authorized to purchase and sell wine, including holders of wholesaler's permits, winery permits, and wine bottler's permits;

(4)iisell wine to ultimate consumers:

(A)iifor consumption on the winery premises; or

(B)iiin unbroken packages for off-premises consumption in an amount not to exceed 35,000 [25,000] gallons annually;

(5)iisell the wine outside this state to qualified persons;

(6)iiblend wines; and

(7)iidispense free wine for consumption on the winery premises.

(c)iiThe holder of a winery permit may conduct wine samplings, including wine tastings at a retailer's premises. A winery employee may open, touch, or pour wine, make a presentation, or answer questions at a wine sampling. [A wine sampling may not be held in a location where a wine sampling is otherwise prohibited by law.]

SECTIONi2.iiChapter 16, Alcoholic Beverage Code, is amended by adding Section 16.011 to read as follows:

Sec.i16.011.iiPREMISES IN DRY AREA. A winery permit may be issued for premises in an area in which the sale of wine has not been authorized by a local option election. A holder of a permit under this section may engage in any activity authorized under Section 16.01 except that the permit holder may sell or dispense wine under that section only if the wine is:

(1)iimanufactured in this state; and

(2)iiat least 75 percent by volume fermented juice of grapes or other fruit grown in this state.

5714 78th LEGISLATURE — REGULAR SESSION

SECTIONi3.iiSections 16.01(d) and 16.05, Alcoholic Beverage Code, are repealed.

SECTIONi4.iiThis Act takes effect on the date on which the constitutional amendment proposed by the 78th Legislature, Regular Session, 2003, authorizing the legislature to authorize and govern the operation of wineries in this state takes effect. If that amendment is not approved by the voters, this Act has no effect.

Representative Homer moved to adopt the conference committee report on HBi2593.

The motion prevailed.

HJR 28 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Pickett submitted the following conference committee report on HJR 28 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HJRi28 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HJR 28, A joint resolution proposing a constitutional amendment providing for authorization of the borrowing of money on a short-term basis by a state transportation agency for transportation-related projects, and the issuance of bonds and other public securities secured by the state highway fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiArticle III, Texas Constitution, is amended by adding Sections 49-m and 49-n to read as follows:

Sec.i49-m.ii(a) The legislature, by law, may authorize the Texas Transportation Commission or its successor to authorize the Texas Department of Transportation or its successor to issue notes or borrow money from any source to carry out the functions of the department.

(b)iiNotes issued or a loan obtained under this section may not have a term of more than two years. The legislature may appropriate money dedicated by Sections 7-a and 7-b, Article VIII, of this constitution for the purpose of paying a debt created by the notes or loan.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5715

Sec.i49-n.ii(a) To fund highway improvement projects, the legislature may authorize the Texas Transportation Commission or its successor to issue bonds and other public securities and enter into bond enhancement agreements that are payable from revenue deposited to the credit of the state highway fund.

(b)iiIn each fiscal year in which amounts become due under the bonds, other public securities, or agreements authorized by this section, there is appropriated from the revenue deposited to the credit of the state highway fund in that fiscal year an amount that is sufficient to pay:

(1)iithe principal of and interest on the bonds or other public securities that mature or become due during the fiscal year; and

(2)iiany cost related to the bonds and other public securities, including payments under bond enhancement agreements, that becomes due during that fiscal year.

(c)iiAny dedication or appropriation of revenue to the credit of the state highway fund may not be modified so as to impair any outstanding bonds or other public securities secured by a pledge of that revenue unless provisions have been made for a full discharge of those securities.

SECTIONi2.iiThis proposed constitutional amendment shall be submitted to the voters at an election to be held September 13, 2003. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment providing for authorization of the issuing of notes or the borrowing of money on a short-term basis by a state transportation agency for transportation-related projects, and the issuance of bonds and other public securities secured by the state highway fund."

Representative Pickett moved to adopt the conference committee report on HJRi28.

A record vote was requested.

The motion prevailed by (Record 917): 143 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Madden; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez;

5716 78th LEGISLATURE — REGULAR SESSION

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

Absent — Farrar; Grusendorf; Hochberg; Marchant; Moreno, J.

SBi287 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Chisum submitted the conference committee report on SBi287.

Representative Chisum moved to adopt the conference committee report on SBi287.

A record vote was requested.

The motion prevailed by (Record 918): 142 Yeas, 0 Nays, 3 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Madden; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wise; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

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

Absent — Burnam; Farrar; Grusendorf; Marchant; Moreno, J.

SBi631 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Talton submitted the conference committee report on SBi631.

Representative Talton moved to adopt the conference committee report on SBi631.

The motion prevailed.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5717

HB 645 - HOUSE DISCHARGES CONFEREES

HOUSE CONCURS IN SENATE AMENDMENTS

TEXT OF SENATE AMENDMENTS

Representative Puente called up with senate amendments for consideration at this time,

HB 645, A bill to be entitled An Act relating to prohibiting the creation or enforcement of certain restrictive covenants that undermine water conservation.

Representative Puente moved to discharge the conferees and concur in the senate amendments to HB 645.

The motion prevailed.

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

Amend SECTION 1 of HB 645, House Engrossment, on page 3, line 11, to strike "10,000" and replace with "4,000".

Senate Amendment No. 2 (Senate Floor Amendment No. 1)

Amend HB 645 in SECTION 1 of the bill, in Section 202.007, Property Code, by striking Subsection (a) (page 1, lines 17-32, senate committee printing) and substituting the following:

(a)iiA property owners' association may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from:

(1)iiimplementing measures promoting solid-waste composting of vegetation, including grass clippings, leaves, or brush, or leaving grass clippings uncollected on grass;

(2)iiinstalling rain barrels or a rainwater harvesting system; or

(3)iiimplementing efficient irrigation systems, including underground drip or other drip systems.

SBi474 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Capelo submitted the conference committee report on SBi474.

Representative Capelo moved to adopt the conference committee report on SBi474.

The motion prevailed.

SBi610 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Capelo submitted the conference committee report on SBi610.

Representative Capelo moved to adopt the conference committee report on SBi610.

The motion prevailed.

SBi585 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative D. Jones submitted the conference committee report on SBi585.

5718 78th LEGISLATURE — REGULAR SESSION

Representative D. Jones moved to adopt the conference committee report on SBi585.

The motion prevailed.

HR 1862 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1862, suspending the limitations on the conferees for HBi7.

HR 1861 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f) of the House Rules, the chair announced the introduction of HRi1861, suspending the limitations on the conferees for HBi1.

SBi970 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Puente submitted the conference committee report on SBi970.

Representative Puente moved to adopt the conference committee report on SBi970.

The motion prevailed. (B. Cook recorded voting no)

SBi1059 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Marchant submitted the conference committee report on SBi1059.

Representative Marchant moved to adopt the conference committee report on SBi1059.

The motion prevailed.

SBi1782 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hamric submitted the conference committee report on SBi1782.

Representative Hamric moved to adopt the conference committee report on SBi1782.

A record vote was requested.

The motion prevailed by (Record 919): 147 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5719

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

Absent — Smithee.

(Wise in the chair)

SBi755 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Chisum submitted the conference committee report on SBi755.

Representative Chisum moved to adopt the conference committee report on SBi755.

A record vote was requested.

The motion prevailed by (Record 920): 144 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

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

Absent — Brown, B.; Davis, J.; Jones, E.; Madden.

5720 78th LEGISLATURE — REGULAR SESSION

SBi76 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Grusendorf submitted the conference committee report on SBi76.

Representative Grusendorf moved to adopt the conference committee report on SBi76.

The motion prevailed.

HR 1804 - ADOPTED
(by Coleman)

The following privileged resolution was laid before the house:

HR 1804

BE IT RESOLVED by the House of Representatives of the State of Texas, 78th Legislature, Regular Session, 2003, That House Rule 13, Section 9(a), be suspended in part as provided by House Rule 13, Section 9(f), to enable the conference committee appointed to resolve the differences on SBi1936, relating to the creation of the Buffalo Bayou Management District; providing the authority to impose taxes and issue bonds, to consider and take action on the following matters:

(1)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to change text in SECTION 4 of the bill so that SECTION 4 reads as follows:

SECTIONi4.iiBOUNDARIES. The district includes all the territory contained in the following described area:

POINT OF BEGINNING at the intersection of the west boundary line of the Houston Downtown Management District and the north boundary of Memorial Drive right-of-way, then west along the north boundary of Memorial Drive right-of-way to the north boundary of Memorial Drive's Heights North exit ramp, then northwest along the north boundary of Memorial Drive's Heights North exit ramp to the east boundary of Heights boulevard right-of-way, then west across Heights Boulevard from the east boundary of Heights Boulevard right-of-way to the west boundary of the Heights Boulevard right-of-way, then south along the west boundary of Heights boulevard right-of-way to the north boundary of Memorial Drive's Memorial West entrance ramp, then southwest along the north boundary of Memorial Drive's Memorial West entrance ramp to the northern boundary line of Memorial Drive right-of-way, then west along the northern boundary line of Memorial Drive right-of-way to the west boundary line of Shepherd Drive right-of-way, then south along the west boundary line of Shepherd Drive right-of-way to the centerline of West Dallas, then east along the centerline of West Dallas to the intersection of the west boundary of Montrose Boulevard right-of-way and the centerline of West Dallas, then south along the west boundary line of Montrose Boulevard right-of-way to the south boundary line of U.S. Highway 59 and the west boundary line of Montrose Boulevard right-of-way, then in an easterly direction from said intersection along the south boundary line of U.S. Highway 59 to the intersection of the west boundary line of the Main Street right-of-way and then proceeding from said intersection in a northwesterly direction along the boundary line of the west Main Street

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5721

Explanation: The new description of the area of the district is necessary to reflect a change in the area to be included in the district.

(2)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to change text in SECTION 9 of the bill so that SECTION 9 reads as follows:

SECTIONi9.iiBOARD OF DIRECTORS IN GENERAL. (a) The district is governed by a board of 31 voting directors appointed under Section 10 of this Act and nonvoting directors as provided by Section 11 of this Act.

(b)iiVoting directors serve staggered terms of four years, with 15 directors' terms expiring June 1 of an odd-numbered year and 16 directors' terms expiring June 1 of the following odd-numbered year.

(c)iiThe board may decrease the number of directors on the board by resolution if the board finds that it is in the best interest of the district. The board may not consist of fewer than five directors.

Explanation: The changed text is necessary to accommodate a larger board of directors for the district and to stagger terms accordingly.

(3)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to change text in SECTION 11(b) of the bill so that Subsection (b) reads as follows:

(b)iiIf a department described by Subsection (a) of this section is consolidated, renamed, or changed, the board may appoint a director of the consolidated, renamed, or changed department as a nonvoting director. If a department described by Subsection (a) of this section is abolished, the board may appoint a representative of another department that performs duties comparable to those performed by the abolished department.

Explanation: The change is necessary to clarify to which section the reference to "Subsection (a)" applies.

(4)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to change text in SECTION 19(a) of the bill so that Subsection (a) reads as follows:

(a)iiIf authorized at an election held in accordance with Section 18 of this Act, the district may impose an annual ad valorem tax on taxable property in the district for the:

(1)iimaintenance and operation of the district and the improvements constructed or acquired by the district; or

(2)iiprovision of a service.

Explanation: The change is necessary to clarify that the Section 18 referred to is from this Act.

5722 78th LEGISLATURE — REGULAR SESSION

(5)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to change text in SECTIONS 31(a), (b), and (c) of the bill so that Subsections (a), (b), and (c) read as follows:

(a)iiThe initial board consists of the following persons:

Pos.iNo.iiiiiiiiiiiiiiiName of Director

1iiiiiiiiiiiiiiiiiiiiiiiiiKay Crooker

2iiiiiiiiiiiiiiiiiiiiiiiiiMike Garver

3iiiiiiiiiiiiiiiiiiiiiiiiiJackie Martin

4iiiiiiiiiiiiiiiiiiiiiiiiiMark Lee

5iiiiiiiiiiiiiiiiiiiiiiiiiJohn Chase, Jr.

6iiiiiiiiiiiiiiiiiiiiiiiiiAdrian Collins

7iiiiiiiiiiiiiiiiiiiiiiiiiMax Schuette

8iiiiiiiiiiiiiiiiiiiiiiiiiJune Deadrick

9iiiiiiiiiiiiiiiiiiiiiiiiiDon Cutrer

10iiiiiiiiiiiiiiiiiiiiiiiiRaju Adwaney

11iiiiiiiiiiiiiiiiiiiiiiiiMike Mark

12iiiiiiiiiiiiiiiiiiiiiiiiSia Ravari

13iiiiiiiiiiiiiiiiiiiiiiiiCherry Walker

14iiiiiiiiiiiiiiiiiiiiiiiiJohn Hansen

15iiiiiiiiiiiiiiiiiiiiiiiiJohn Dao

16iiiiiiiiiiiiiiiiiiiiiiiiWilliam Taylor

17iiiiiiiiiiiiiiiiiiiiiiiiKaren Domino

18iiiiiiiiiiiiiiiiiiiiiiiiKevin Hoffman

19iiiiiiiiiiiiiiiiiiiiiiiiJeff Andrews

20iiiiiiiiiiiiiiiiiiiiiiiiWilliam Paul Thomas

21iiiiiiiiiiiiiiiiiiiiiiiiTheola Petteway

22iiiiiiiiiiiiiiiiiiiiiiiiKeith Wade

23iiiiiiiiiiiiiiiiiiiiiiiiChryisse Wilson

24iiiiiiiiiiiiiiiiiiiiiiiiSadie Rucker

25iiiiiiiiiiiiiiiiiiiiiiiiJulie McClure

26iiiiiiiiiiiiiiiiiiiiiiiiAngie Gomez

27iiiiiiiiiiiiiiiiiiiiiiiiTom Fricke

28iiiiiiiiiiiiiiiiiiiiiiiiJames Robert McDermaid

29iiiiiiiiiiiiiiiiiiiiiiiiKathy Hubbard

30iiiiiiiiiiiiiiiiiiiiiiiiMarsha Johnson

31iiiiiiiiiiiiiiiiiiiiiiiiCraig Jackson

(b)iiOf the initial directors, the terms of directors appointed for positions 1 through 15 expire June 1, 2005, and the terms of directors appointed for positions 16 through 31 expire June 1, 2007.

(c)iiSection 10 of this Act does not apply to this section.

Explanation: The changed text is necessary to add the complete number of initial directors authorized to serve on the board and to adjust their terms accordingly.

HR 1804 was adopted.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5723

SBi1936 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Coleman submitted the conference committee report on SBi1936.

Representative Coleman moved to adopt the conference committee report on SBi1936.

A record vote was requested.

The motion prevailed by (Record 921): 145 Yeas, 0 Nays, 1 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wise(C); Wohlgemuth; Wolens; Wong; Woolley; Zedler.

Present, not voting — Mr. Speaker.

Absent — Corte; Driver; Heflin; Krusee.

MESSAGE FROM THE SENATE

A message from the senate was received at this time (see the addendum to the daily journal, Messages from the Senate, Message No. 3).

SBi1708 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Baxter submitted the conference committee report on SBi1708.

Representative Baxter moved to adopt the conference committee report on SBi1708.

The motion prevailed.

HB 1082 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Talton submitted the following conference committee report on HB 1082 :

5724 78th LEGISLATURE — REGULAR SESSION

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi1082 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 1082, A bill to be entitled An Act relating to the appraisal of property by appraisal districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.ii(a) Section 6.025, Tax Code, is amended by adding Subsection (d) to read as follows:

(d)iiIf on May 1 all the chief appraisers of the appraisal districts described by Subsection (a) in which a parcel or item of property is located are not in agreement as to the appraised or market value of the property, on that date each of the chief appraisers shall enter as the appraised or market value of the property on the appraisal records of the appropriate appraisal district the lowest appraised or market value of the property as determined by any of the chief appraisers. If as a result of a protest, appeal, or other action the appraised or market value of the property is subsequently reduced in any of the appraisal districts, the chief appraiser shall notify each of the appraisal districts of the reduced appraised or market value. The chief appraiser of each appraisal district shall enter that reduced appraised or market value on the appraisal records as the appraised or market value of the property. If the appraised or market value is reduced in more than one appraisal district, each chief appraiser shall enter the lowest of those values on the appraisal records.

(b)iiThis section takes effect January 1, 2004, and applies only to the appraisal for ad valorem tax purposes of property for a tax year that begins on or after that date.

SECTIONi2.iiSections 41.43(a) and (b), Tax Code, are amended to read as follows:

(a)iiIn a protest authorized by Section 41.41(a)(1) or (2) [41.41(1) or (2)], the appraisal district has the burden of establishing the value of the property by a preponderance of the evidence presented at the hearing. If the appraisal district fails to meet that standard, the protest shall be determined in favor of the property owner.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5725

(b)iiA protest on the ground of unequal appraisal of property shall be determined in favor of the protesting party unless the appraisal district establishes that:

(1) the appraisal ratio of the property is equal to or less [not greater] than the median level of appraisal of[:

[(1)] a reasonable and representative sample of other properties in the appraisal district;

(2)iithe appraisal ratio of the property is equal to or less than the median level of appraisal of a sample of properties in the appraisal district consisting of a reasonable number of other properties similarly situated to, or of the same general kind or character as, the property subject to the protest; or

(3)iithe appraised value of the property is equal to or less than the median appraised value of a reasonable number of comparable properties appropriately adjusted.

SECTIONi3.iiSection 42.221, Tax Code, is amended to read as follows:

Sec.i42.221.iiCONSOLIDATED APPEALS FOR MULTICOUNTY PROPERTY [PIPELINE OR ELECTRIC LINE]. (a) The owner of property of a telecommunications provider, as defined by Section 51.002, Utilities Code, or the owner of property regulated by the Railroad Commission of Texas, the federal Surface Transportation Board, or the Federal Energy Regulatory Commission [an oil or gas pipeline or electric transmission or distribution line] that runs through or operates in more than one county and is appraised by more than one appraisal district may appeal an order of an appraisal review board relating to the property running through or operating in more than one county [pipeline or electric line, to property attached to or connected with the pipeline or electric line, or to an easement or other real property on which the pipeline or electric line is located] to the district court of any county in which a portion of the property [pipeline or electric line] is located or operated if the order relating to that portion of the property [pipeline or electric line] is appealed.

(b)iiA petition for review of each appraisal review board order under this section must be filed with the court as provided by Section 42.21. The fee for filing each additional petition for review under this section [relating to a pipeline or electric line] after the first petition for review relating to the same property [pipeline or electric line] is filed for a tax year is $5.

(c)iiIf only one appeal by the owner of property subject to this section [an oil or gas pipeline or electric line] is pending before the court in an appeal from the decision of an appraisal review board of a district other than the appraisal district for that county, any party to the suit may, not earlier than the 30th day before and not later than the 10th day before the date set for the hearing, make a motion to transfer the suit to a district court of the county in which the appraisal review board from which the appeal is taken is located. In the absence of a showing that further appeals under this section will be filed, the court shall transfer the suit.

(d)iiWhen the owner files the first petition for review under this section for a [pipeline or electric line for a] tax year, the owner shall include with the petition a list of each appraisal district in which the property [pipeline or electric line] is appraised for taxation in that tax year.

5726 78th LEGISLATURE — REGULAR SESSION

(e)iiThe court shall consolidate all the appeals for a tax year relating to a single property subject to this section [pipeline or electric line] for which a petition for review is filed with the court and may consolidate other appeals relating to other property subject to this section [pipelines or electric lines] of the same owner if the property is [pipelines or electric lines are] located in one or more of the counties on the list required by Subsection (d). Except as provided by this subsection, on the motion of the [pipeline or electric line] owner of a property subject to this section the court shall grant a continuance to provide the owner with an opportunity to include in the proceeding appeals of appraisal review board orders from additional appraisal districts. The court may not grant a continuance to include an appeal of an appraisal review board order that relates to a property subject to this section [the pipeline or electric line] in that tax year after the time for filing a petition for review of that order has expired.

(f)iiThis section does not affect the property owner's right to file a petition for review of an individual appraisal district's order relating to a property subject to this section [pipeline or electric line] in the district court in the county in which the appraisal review board is located.

(g)iiOn a joint motion or the separate motions of at least 60 percent of the appraisal districts that are defendants in a consolidated suit filed before the 45th day after the date on which the property owner's petitions for review of the appraisal review board orders relating to a property subject to this section [pipeline or electric line] for that tax year must be filed, the court shall transfer the suit to a district court of the county named in the motion or motions if that county is one in which one of the appraisal review boards from which an appeal was taken is located.

SECTIONi4.iiSections 42.26(a), (b), and (d), Tax Code, are amended to read as follows:

(a)iiThe district court shall grant relief on the ground that a property is appraised unequally if:

(1) the appraisal ratio of the property exceeds by at least 10 percent the median level of appraisal of[:

[(1)] a reasonable and representative sample of other properties in the appraisal district; [or]

(2)iithe appraisal ratio of the property exceeds by at least 10 percent the median level of appraisal of a sample of properties in the appraisal district consisting of a reasonable number of other properties similarly situated to, or of the same general kind or character as, the property subject to the appeal; or

(3)iithe appraised value of the property exceeds the median appraised value of a reasonable number of comparable properties appropriately adjusted.

(b)iiIf a property owner is entitled to relief under Subsection (a)(1), the court shall order the property's appraised value changed to the value as calculated on the basis of the median level of appraisal according to Subsection (a)(1). If a property owner is entitled to relief under Subsection (a)(2), the court shall order the property's appraised value changed to the value calculated on the basis of the median level of appraisal according to Subsection (a)(2). If a property owner is entitled to relief under Subsection (a)(3), the court shall order the property's

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5727

(d)iiFor purposes of this section, the value of the property subject to the suit and the value of a comparable property or sample property that is used for comparison must be the market value determined by the appraisal district when the property is a residence homestead subject to the limitation on appraised value imposed by Section 23.23. [The district court shall grant relief on the ground that a property is appraised unequally if the appraised value of the property exceeds the median appraised value of a reasonable number of comparable properties appropriately adjusted.]

SECTIONi5.ii(a) This Act takes effect September 1, 2003.

(b)iiThe change in law made by this Act applies only to review of an appraisal of property that was initiated by the filing of a notice of protest with an appraisal review board on or after the effective date of this Act. Review of an appraisal of property that was initiated by the filing of a notice of protest with an appraisal review board before the effective date of this Act is governed by the law in effect on the date the notice of protest was filed, and the former law is continued in effect for that purpose.

Representative Talton moved to adopt the conference committee report on HBi1082.

The motion prevailed.

HB 1817 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Ritter submitted the following conference committee report on HB 1817 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi1817 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

5728 78th LEGISLATURE — REGULAR SESSION

HB 1817, A bill to be entitled An Act relating to student fees at institutions in the Texas State University System.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 54.5089, Education Code, is amended by amending Subsection (a) and adding Subsection (e) to read as follows:

(a)iiThe board of regents of the Texas State University System may charge each student registered at a component institution of the Texas State University System a medical services fee not to exceed $100 [$55] for each semester of the regular term or [12-week] summer session of 12 weeks or longer and not to exceed $50 [$25] for each [six-week or shorter term of the] summer session of less than 12 weeks.

(e)iiNot more than once in an academic year, the board may increase the fee authorized by this section. Any increase in the fee of more than 10 percent must be approved by a majority vote of those students participating in a general student election called for that purpose.

SECTIONi2.iiThe heading to Section 54.511, Education Code, is amended to read as follows:

Sec.i54.511.iiSTUDENT FEES FOR BUS SERVICE; TEXAS STATE UNIVERSITY SYSTEM [SOUTHWEST TEXAS STATE UNIVERSITY].

SECTIONi3.iiSection 54.511(b), Education Code, is amended to read as follows:

(b)iiNot more than once in an academic year, the board may increase the fee authorized in Subsection (a) of this section for the purpose of covering increased operating costs of the bus service. Any increase in the fee must be approved by a majority vote of those students participating in a general election called for that purpose. However, the total fee may not exceed $100 [$46] per semester or $50 [$23] per [six-week] summer term of six weeks or less.

SECTIONi4.iiSection 54.523(a), Education Code, is amended to read as follows:

(a)iiTo the extent approved by the students under Subsection (b) of this section, the board of regents of the Texas State University System may charge each student enrolled in a university or educational center under its authority a student center fee not to exceed $100 [$70] per semester or $50 [$35] per [six-week] summer term of six weeks or less to be used to construct, operate, maintain, improve, and program a student center at the university or educational center at which the student is enrolled.

SECTIONi5.iiSection 54.538(a), Education Code, is amended to read as follows:

(a)iiIf approved by student vote at a system institution, the Board of Regents, Texas State University System, may charge each student enrolled at such institution a recreational sports fee not to exceed $100 [$50] per semester or

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5729

SECTIONi6.iiThis Act applies beginning with the 2003 fall semester.

SECTIONi7.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Representative Ritter moved to adopt the conference committee report on HBi1817.

A record vote was requested.

The motion prevailed by (Record 922): 145 Yeas, 0 Nays, 2 Present, not voting.

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Farabee; Farrar; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

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

Absent — Burnam; Escobar; Moreno, P.

HB 3546 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Hamric submitted the following conference committee report on HB 3546 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

5730 78th LEGISLATURE — REGULAR SESSION

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi3546 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HB 3546, A bill to be entitled An Act relating to the exemption from ad valorem taxation of certain property used to provide low-income or moderate-income housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiThe heading to Section 11.182, Tax Code, is amended to read as follows:

Sec.i11.182.iiCOMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS IMPROVING PROPERTY FOR LOW-INCOME AND MODERATE-INCOME HOUSING: PROPERTY PREVIOUSLY EXEMPT.

SECTIONi2.iiSection 11.182, Tax Code, is amended by adding Subsection (j) to read as follows:

(j)iiAn organization may not receive an exemption under Subsection (b) or under Subsection (f), as added by Chapter 1191, Acts of the 77th Legislature, Regular Session, 2001, for property for a tax year beginning on or after January 1, 2004, unless the organization received an exemption under that subsection for that property for any part of the 2003 tax year.

SECTIONi3.iiSubchapter B, Chapter 11, Tax Code, is amended by adding Sections 11.1825 and 11.1826 to read as follows:

Sec.i11.1825.iiORGANIZATIONS CONSTRUCTING OR REHABILITATING LOW-INCOME HOUSING: PROPERTY NOT PREVIOUSLY EXEMPT. (a) An organization is entitled to an exemption from taxation of real property owned by the organization that the organization constructs or rehabilitates and uses to provide housing to individuals or families meeting the income eligibility requirements of this section.

(b)iiTo receive an exemption under this section, an organization must meet the following requirements:

(1)iifor at least the preceding three years, the organization:

(A)iihas been exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, as amended, by being listed as an exempt entity under Section 501(c)(3) of that code;

(B)iihas met the requirements of a charitable organization provided by Sections 11.18(e) and (f); and

(C)iihas had as one of its purposes providing low-income housing;

(2)iia majority of the members of the board of directors of the organization have their principal place of residence in this state;

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5731

(3)iiat least two of the positions on the board of directors of the organization must be reserved for and held by:

(A)iian individual of low income as defined by Section 2306.004, Government Code, whose principal place of residence is located in this state;

(B)iian individual whose residence is located in an economically disadvantaged census tract as defined by Section 783.009(b), Government Code, in this state; or

(C)iia representative appointed by a neighborhood organization in this state that represents low-income households; and

(4)iithe organization must have a formal policy containing procedures for giving notice to and receiving advice from low-income households residing in the county in which a housing project is located regarding the design, siting, development, and management of affordable housing projects.

(c)iiNotwithstanding Subsection (b), an owner of real property that is not an organization described by that subsection is entitled to an exemption from taxation of property under this section if the property otherwise qualifies for the exemption and the owner is:

(1)iia limited partnership of which an organization that meets the requirements of Subsection (b) controls 100 percent of the general partner interest; or

(2)iian entity the parent of which is an organization that meets the requirements of Subsection (b).

(d)iiIf the owner of the property is an entity described by Subsection (c), the entity must:

(1)iibe organized under the laws of this state; and

(2)iihave its principal place of business in this state.

(e)iiA reference in this section to an organization includes an entity described by Subsection (c).

(f)iiFor property to be exempt under this section, the organization must own the property for the purpose of constructing or rehabilitating a housing project on the property and:

(1)iirenting the housing to individuals or families whose median income is not more than 60 percent of the greater of:

(A)iithe area median family income for the household's place of residence, as adjusted for family size and as established by the United States Department of Housing and Urban Development; or

(B)iithe statewide area median family income, as adjusted for family size and as established by the United States Department of Housing and Urban Development; or

(2)iiselling single-family dwellings to individuals or families whose median income is not more than the greater of:

(A)iithe area median family income for the household's place of residence, as adjusted for family size and as established by the United States Department of Housing and Urban Development; or

5732 78th LEGISLATURE — REGULAR SESSION

(B)iithe statewide area median family income, as adjusted for family size and as established by the United States Department of Housing and Urban Development.

(g)iiProperty may not receive an exemption under this section unless at least 50 percent of the total square footage of the dwelling units in the housing project is reserved for individuals or families described by Subsection (f).

(h)iiThe annual total of the monthly rent charged or to be charged for each dwelling unit in the project reserved for an individual or family described by Subsection (f) may not exceed 30 percent of the area median family income for the household's place of residence, as adjusted for family size and as established by the United States Department of Housing and Urban Development.

(i)iiProperty owned for the purpose of constructing a housing project on the property is exempt under this section only if:

(1)iithe property is used to provide housing to individuals or families described by Subsection (f); or

(2)iithe housing project is under active construction or other physical preparation.

(j)iiFor purposes of Subsection (i)(2), a housing project is under physical preparation if the organization has engaged in architectural or engineering work, soil testing, land clearing activities, or site improvement work necessary for the construction of the project or has conducted an environmental or land use study relating to the construction of the project.

(k)iiAn organization may not receive an exemption for a housing project constructed by the organization if the construction of the project was completed before January 1, 2004.

(l)iiIf the property is owned for the purpose of rehabilitating a housing project on the property:

(1)iithe original construction of the housing project must have been completed at least 10 years before the date the organization began actual rehabilitation of the project;

(2)iithe person from whom the organization acquired the project must have owned the project for at least five years, if the organization is not the original owner of the project;

(3)iithe organization must provide to the chief appraiser and, if the project was financed with bonds, the issuer of the bonds a written statement prepared by a certified public accountant stating that the organization has spent on rehabilitation costs at least the greater of $5,000 or the amount required by the financial lender for each dwelling unit in the project; and

(4)iithe organization must maintain a reserve fund for replacements:

(A)iiin the amount required by the financial lender; or

(B)iiif the financial lender does not require a reserve fund for replacements, in an amount equal to $300 per unit per year.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5733

(m)iiBeginning with the 2005 tax year, the amount of the reserve required by Subsection (l)(4)(B) is increased by an annual cost-of-living adjustment determined in the manner provided by Section 1(f)(3), Internal Revenue Code of 1986, as amended, substituting "calendar year 2004" for the calendar year specified in Section 1(f)(3)(B) of that code.

(n)iiA reserve must be established for each dwelling unit in the property, regardless of whether the unit is reserved for an individual or family described by Subsection (f). The reserve must be maintained on a continuing basis, with withdrawals permitted:

(1)iionly as authorized by the financial lender; or

(2)iiif the financial lender does not require a reserve fund for replacements, only to pay the cost of capital improvements needed for the property to maintain habitability under the Minimum Property Standards of the United States Department of Housing and Urban Development or the code of a municipality or county applicable to the property, whichever is more restrictive.

(o)iiFor purposes of Subsection (n)(2), "capital improvement" means a property improvement that has a depreciable life of at least five years under generally accepted accounting principles, excluding typical "make ready" expenses such as expenses for plasterboard repair, interior painting, or floor coverings.

(p)iiIf the organization acquires the property for the purpose of constructing or rehabilitating a housing project on the property, the organization must be renting or offering to rent the applicable square footage of dwelling units in the property to individuals or families described by Subsection (f) not later than the third anniversary of the date the organization acquires the property.

(q)iiIf property qualifies for an exemption under this section, the chief appraiser shall use the income method of appraisal as provided by Section 23.012 to determine the appraised value of the property. In appraising the property, the chief appraiser shall:

(1)iiconsider the restrictions provided by this section on the income of the individuals or families to whom the dwelling units of the housing project may be rented and the amount of rent that may be charged for purposes of computing the actual rental income from the property or projecting future rental income; and

(2)iiuse the same capitalization rate that the chief appraiser uses to appraise other rent-restricted properties.

(r)iiNot later than January 31 of each year, the appraisal district shall give public notice in the manner determined by the district, including posting on the district's website if applicable, of the capitalization rate to be used in that year to appraise property receiving an exemption under this section.

(s)iiUnless otherwise provided by the governing body of a taxing unit any part of which is located in a county with a population of at least 1.4 million under Subsection (x), the amount of the exemption under this section from taxation is 50 percent of the appraised value of the property.

(t)iiNotwithstanding Section 11.43(c), an exemption under this section does not terminate because of a change in ownership of the property if:

5734 78th LEGISLATURE — REGULAR SESSION

(1)iithe property is foreclosed on for any reason and, not later than the 30th day after the date of the foreclosure sale, the owner of the property submits to the chief appraiser evidence that the property is owned by:

(A)iian organization that meets the requirements of Subsection (b); or

(B)iian entity that meets the requirements of Subsections (c) and (d); or

(2)iiin the case of property owned by an entity described by Subsections (c) and (d), the organization meeting the requirements of Subsection (b) that controls the general partner interest of or is the parent of the entity as described by Subsection (c) ceases to serve in that capacity and, not later than the 30th day after the date the cessation occurs, the owner of the property submits evidence to the chief appraiser that the organization has been succeeded in that capacity by another organization that meets the requirements of Subsection (b).

(u)iiThe chief appraiser may extend the deadline provided by Subsection (t)(1) or (2), as applicable, for good cause shown.

(v)iiNotwithstanding any other provision of this section, an organization may not receive an exemption from taxation by a taxing unit any part of which is located in a county with a population of at least 1.4 million unless the exemption is approved by the governing body of the taxing unit in the manner provided by law for official action.

(w)iiTo receive an exemption under this section from taxation by a taxing unit for which the approval of the governing body of the taxing unit is required by Subsection (v), an organization must submit to the governing body of the taxing unit a written request for approval of the exemption from taxation of the property described in the request.

(x)iiNot later than the 60th day after the date the governing body of the taxing unit receives a written request under Subsection (w) for an exemption under this section, the governing body shall:

(1)iiapprove the exemption in the amount provided by Subsection (s);

(2)iiapprove the exemption in a reasonable amount other than the amount provided by Subsection (s); or

(3)iideny the exemption if the governing body determines that:

(A)iithe taxing unit cannot afford the loss of ad valorem tax revenue that would result from approving the exemption; or

(B)iiadditional housing for individuals or families meeting the income eligibility requirements of this section is not needed in the territory of the taxing unit.

(y)iiNot later than the fifth day after the date the governing body of the taxing unit takes action under Subsection (x), the taxing unit shall issue a letter to the organization stating the governing body's action and, if the governing body denied the exemption, stating whether the denial was based on a determination under Subsection (x)(3)(A) or (B) and the basis for the determination. The taxing unit shall send a copy of the letter by regular mail to the chief appraiser of each appraisal district that appraises the property for the taxing unit. The governing body may charge the organization a fee not to exceed the administrative costs of

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5735

Sec.i11.1826.iiMONITORING OF COMPLIANCE WITH LOW-INCOME AND MODERATE-INCOME HOUSING EXEMPTIONS. (a) In this section, "department" means the Texas Department of Housing and Community Affairs.

(b)iiProperty may not be exempted under Section 11.1825 for a tax year unless the organization owning or controlling the owner of the property has an audit prepared by an independent auditor covering the organization's most recent fiscal year. The audit must be conducted in accordance with generally accepted accounting principles. The audit must include an opinion on whether:

(1)iithe financial statements of the organization present fairly, in all material respects and in conformity with generally accepted accounting principles, the financial position, changes in net assets, and cash flows of the organization; and

(2)iithe organization has complied with all of the terms and conditions of the exemption under Section 11.1825.

(c)iiNot later than the 180th day after the last day of the organization's most recent fiscal year, the organization must deliver a copy of the audit to the department and the chief appraiser of the appraisal district in which the property is located.

(d)iiNotwithstanding any other provision of this section, if the property contains not more than 36 dwelling units, the organization may deliver to the department and the chief appraiser a detailed report and certification as an alternative to an audit.

(e)iiProperty may not be exempted under Section 11.182 for a tax year unless the organization owning or controlling the owner of the property complies with this section, except that the audit required by this section must address compliance with the requirements of Section 11.182.

(f)iiAll information submitted to the department or the chief appraiser under this section is subject to required disclosure, is excepted from required disclosure, or is confidential in accordance with Chapter 552, Government Code, or other law.

SECTIONi4.iiSections 11.436(a) and (c), Tax Code, are amended to read as follows:

(a)iiAn organization that acquires property that qualifies for an exemption under Section 11.181(a) or 11.1825 [11.182(a)] may apply for the exemption for the year of acquisition not later than the 30th day after the date the organization acquires the property, and the deadline provided by Section 11.43(d) does not apply to the application for that year.

(c)iiTo facilitate the financing associated with the acquisition of a property, an organization, before acquiring the property, may request from the chief appraiser of the appraisal district established for the county in which the property is located a preliminary determination of whether the property would qualify for

5736 78th LEGISLATURE — REGULAR SESSION

SECTIONi5.iiSubchapter B, Chapter 23, Tax Code, is amended by adding Section 23.215 to read as follows:

Sec.i23.215.iiAPPRAISAL OF CERTAIN NONEXEMPT PROPERTY USED FOR LOW-INCOME OR MODERATE-INCOME HOUSING. (a) This section applies only to real property owned by an organization:

(1)iithat on the effective date of this section was rented to a low-income or moderate-income individual or family satisfying the organization's income eligibility requirements and that continues to be used for that purpose;

(2)iithat was financed under the low income housing tax credit program under Subchapter DD, Chapter 2306, Government Code;

(3)iithat does not receive an exemption under Section 11.182 or 11.1825; and

(4)iithe owner of which has not entered into an agreement with any taxing unit to make payments to the taxing unit instead of taxes on the property.

(b)iiThe chief appraiser shall appraise the property in the manner provided by Section 11.1825(q).

SECTIONi6.iiThis Act takes effect January 1, 2004.

Representative Hamric moved to adopt the conference committee report on HBi3546.

The motion prevailed.

SBi1272 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Callegari submitted the conference committee report on SBi1272.

Representative Callegari moved to adopt the conference committee report on SBi1272.

The motion prevailed.

SBi1303 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative Chisum submitted the conference committee report on SBi1303.

Representative Chisum moved to adopt the conference committee report on SBi1303.

A record vote was requested.

The motion prevailed by (Record 923): 147 Yeas, 0 Nays, 2 Present, not voting.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5737

Yeas — Allen; Alonzo; Bailey; Baxter; Berman; Bohac; Bonnen; Branch; Brown, B.; Brown, F.; Burnam; Callegari; Campbell; Canales; Capelo; Casteel; Castro; Chavez; Chisum; Christian; Coleman; Cook, B.; Cook, R.; Corte; Crabb; Crownover; Davis, J.; Davis, Y.; Dawson; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Eiland; Eissler; Elkins; Ellis; Escobar; Farabee; Flores; Flynn; Gallego; Garza; Gattis; Geren; Giddings; Goodman; Goolsby; Griggs; Grusendorf; Guillen; Gutierrez; Haggerty; Hamilton; Hamric; Hardcastle; Harper-Brown; Hartnett; Heflin; Hegar; Hilderbran; Hill; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hughes; Hunter; Hupp; Isett; Jones, D.; Jones, E.; Jones, J.; Keel; Keffer, B.; Keffer, J.; King; Kolkhorst; Krusee; Kuempel; Laney; Laubenberg; Lewis; Luna; Mabry; Madden; Marchant; Martinez Fischer; McCall; McClendon; McReynolds; Menendez; Mercer; Merritt; Miller; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Nixon; Noriega; Oliveira; Olivo; Paxton; Peña; Phillips; Pickett; Pitts; Puente; Quintanilla; Raymond; Reyna; Riddle; Ritter; Rodriguez; Rose; Seaman; Smith, T.; Smith, W.; Smithee; Solis; Solomons; Stick; Swinford; Talton; Taylor; Telford; Thompson; Truitt; Turner; Uresti; Van Arsdale; Villarreal; West; Wilson; Wohlgemuth; Wolens; Wong; Woolley; Zedler.

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

Absent — Farrar.

STATEMENT OF VOTE

I was shown voting yes on Record No. 923. I intended to vote no.

Reyna

HB 2044 - ADOPTION OF CONFERENCE COMMITTEE REPORT

Representative McReynolds submitted the following conference committee report on HB 2044 :

Austin, Texas, May 31, 2003

The Honorable David Dewhurst

President of the Senate

The Honorable Tom Craddick

Speaker of the House of Representatives

Sirs: We, your conference committee, appointed to adjust the differences between the senate and the house of representatives on HBi2044 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

5738 78th LEGISLATURE — REGULAR SESSION

HB 2044, A bill to be entitled An Act relating to the powers and duties of the General Land Office and the accounting and disposition of state-owned real property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 31.001, Natural Resources Code, is amended to read as follows:

Sec.i31.001.iiDEFINITIONS. In this chapter:

(1)ii"Appraiser" means a state-certified or state-licensed real estate appraiser who:

(A)iiis employed by or contracts with the land office; and

(B)iiperforms professional valuation services completely and in a manner that is independent, impartial, and objective ["State" means the State of Texas].

(2)ii"Board" means the School Land Board.

(3)ii"Commissioner" means the Commissioner of the General Land Office.

(4)ii"Division" means the asset management division of the General Land Office or any other division delegated the duties of the asset management division by the commissioner.

(5)ii"Evaluation report" means the annual report prepared by the commissioner as provided by Subchapter E.

(6)ii"Exchange" means an exchange of equal value or an exchange of real property accompanied by consideration.

(7)ii"Governor's report" means the report prepared by the commissioner as provided by Section 31.157.

(8)ii"Institution of higher education" means the Texas State Technical College System, the Southwest Collegiate Institute for the Deaf, or an institution of higher education, excluding a public junior college, as defined by Section 61.003, Education Code.

(9)i[(3)]ii"Land office" means the General Land Office.

(10)ii"Market value" means the value of real property determined by an appraisal of the real property performed by an appraiser.

(11)ii"Political subdivision" means a municipality, county, public school district, levee improvement district, municipal utility district, or any other special purpose district authorized by state law.

(12)ii"Real estate transaction" means a sale, lease, trade, exchange, gift, grant, or other conveyance of a real property interest.

(13)ii"Real property owned by the state" means any interest in real property in the possession of the state or a state agency, including real property held in trust by a state agency.

(14)ii"State" means the State of Texas.

(15)ii"State agency" means a board, commission, department, institution, office, or other agency of state government, including an institution of higher education but excluding a special purpose district or authority.

SECTIONi2.iiSection 31.013(b), Natural Resources Code, is amended to read as follows:

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5739

(b)iiAny bonds required by law to be executed by employees of the land office shall be executed and approved in the manner provided for the commissioner in Subsection (a) of this section. The land office shall pay the expenses necessary and incidental to the execution of the bonds.

SECTIONi3.iiSections 31.016 and 31.017, Natural Resources Code, are amended to read as follows:

Sec.i31.016.iiABSTRACT CLERK. The commissioner shall designate one of his clerks as the abstract clerk and shall assign to him the special duty to correct the abstracts of patented, titled, and surveyed real property [land] required to be kept in the land office to reflect errors, changes caused by cancellation of patents and in county lines, and the creation of new counties and to add new patented surveys on the date they are patented.

Sec.i31.017.iiRECEIVER [RECEIVING CLERK]. (a) With the consent of the governor, the commissioner shall appoint a suitable person to serve as receiver [receiving clerk] for the land office.

(b)iiThe receiver [receiving clerk] shall execute a bond for $25,000.

SECTIONi4.iiSection 31.018(c), Natural Resources Code, is amended to read as follows:

(c)iiThe translator shall translate into English [and record in a book] any laws and public contracts relating to titles to real property [land] and any original titles or papers which are written in the Spanish language and which are filed in the land office.

SECTIONi5.iiSection 31.019, Natural Resources Code, is amended to read as follows:

Sec.i31.019.iiSURVEYORS [DRAFTSMEN]. (a) The commissioner shall appoint a chief surveyor [draftsman] and as many assistant surveyors [draftsmen] as authorized by law.

(b)iiThe chief surveyor [draftsman] and the chief surveyor's [his] assistant surveyors [draftsmen] shall draw and complete county maps.

(c)iiThe chief surveyor [draftsman] and the chief surveyor's [his] assistant surveyors [draftsmen] shall perform drafting and other duties required by the commissioner for the benefit of the state or individuals.

SECTIONi6.iiSection 31.051, Natural Resources Code, is amended to read as follows:

Sec.i31.051.iiGENERAL DUTIES. The commissioner shall:

(1)iisuperintend, control, and direct the official conduct of subordinate officers of the land office;

(2)iiexecute and perform all acts and other things relating to public real property [land] of the state or rights of individuals in public real property [land] which is required by law;

(3)iimake and enforce suitable rules consistent with the law; and

(4)iigive information when required to the governor and the legislature relating to public real property [land] and the land office.

SECTIONi7.iiSection 31.052(a), Natural Resources Code, is amended to read as follows:

5740 78th LEGISLATURE — REGULAR SESSION

(a)iiBooks, accounts, records, papers, maps, and original documents relating to real property [land] titles which are termed archives by law shall be the books and papers of the land office under the control and custody of the commissioner.

SECTIONi8.iiSections 31.054, 31.055, 31.056, 31.057, 31.058, 31.059, and 31.060, Natural Resources Code, are amended to read as follows:

Sec.i31.054.iiPUBLIC ACCESS TO AND REMOVAL OF PAPERS. (a) Any person who desires to examine any paper, record, or file must make a written request on a form and according to procedures prescribed by the commissioner. The commissioner may establish procedures as reasonably necessary to maintain the integrity of the records. [obtain the written consent of the commissioner or the chief clerk and an order for the detail of a clerk to be present and superintend the examination.]

(b)ii[After the examination, the clerk shall carefully examine the papers of the file and make sure that they are all in place.

[Sec.i31.055.iiREMOVING PAPERS. (a)]iiNo transfer or deed which may be a link in any chain of title to any certificate on file in the land office may be removed by any person, but the commissioner shall deliver to the interested person on demand certified copies which shall have the same force and effect as the originals.

(c)i[(b)]iiIf the genuineness of any original paper is questioned in a suit, the commissioner, on order of the court in which the suit is pending, shall deliver the original paper to the proper person and shall retain a certified copy of the paper which will have the same force and effect as the original if the original is lost.

[(c)iiIf the commissioner has good reason to doubt the genuineness of any transfer, power of attorney, or other paper on file in his office, he shall not permit any person to obtain an official copy of the paper until the doubts have been removed.]

Sec.i31.056.iiREVISION, [AND] COMPILATION, AND PRINTING OF ABSTRACTS. (a) The commissioner shall prepare a revision and compilation of the various volumes of the abstracts of patented, titled, and surveyed real property [land] which were previously made by the land office.

(b)iiThe various counties of the state shall be apportioned into one of not more than eight districts for the purpose of revising and compiling the abstracts and the abstracts of each of the districts shall be compiled in a separate volume.

(c)iiThe commissioner may distribute to the officers of the state who require its use but have not previously received a set, one complete set of the abstracts, as supplemented, of patented, titled, and surveyed real property. The commissioner may distribute to officers of counties who are required to use abstracts copies of supplementary abstracts [land and may sell the surplus volumes to any persons who apply for them at a price that is not less than the cost to the state].

(d)iiThe commissioner may provide the abstracts and supplementary abstracts electronically [Any money received from the sale of surplus volumes shall be deposited in the general revenue fund].

(e)iiThe commissioner may make available [have] a sufficient number of volumes and supplementary abstracts of patented, titled, and surveyed real property [printed] to meet the demand.

Sunday, June 1, 2003 HOUSE JOURNAL — 84th Day 5741

(f)iiThe land office shall pay the cost of the abstracts and the supplementary abstracts from its appropriated funds. [Printing and binding shall be done exclusively in the State of Texas.]

(g)iiCopies of the abstracts and supplementary abstracts [None of the provisions of this section affect the provisions of Section 31.057 of this code.

[Sec.i31.057.iiPRINTING SUPPLEMENTARY ABSTRACTS. (a) The commissioner may have not more than 1,500 copies of the supplementary abstracts of patented, titled, and surveyed land printed and bound annually for distribution to the officers of the state and counties whose duties require them to use it, and surplus copies] may be sold at a reasonable price to any person who applies for a copy.

[(b)iiThe cost incurred in printing the copies shall be paid from the land office appropriation for printing.

[(c)]iiThe commissioner shall deposit any money received from the sale of surplus volumes and supplementary abstracts [the copies of the State Treasury] to the credit of the General Revenue Fund.

Sec.i31.058.iiRECEIVING FUNDS. (a) The receiver [receiving clerk] shall receive funds required by law to be paid to the commissioner and on request shall give to each person who deposits money a receipt [certificate of deposit] stating the amount, the name of the person, and a description of the purpose of the remittance [the type of claim on which the deposit was made].

(b)iiIf funds are received which are of a general character in advance of fees and dues, it shall be stated.

(c)iiThe receiver [clerk] shall be responsible to the state or individual for the funds.

Sec.i31.059.iiRECEIVER'S [RECEIVING CLERK'S] BOOKS. (a) The receiver [receiving clerk] shall keep books in which the following [he] shall be entered [enter]:

(1)iieach deposit separately; and

(2)iithe name of the person[; and

[(3)iithe number of the claim and the location of the land to be perfected].

(b)iiThe receiver [He] shall keep letters and other vouchers filed in neat and regular order and number corresponding with the [his] books of the office.

(c)iiThe receiver [receiving clerk] shall report to the comptroller and pay in kind [on the last day of each month] funds in the receiver's [his] possession which are due to the state in accordance with the Government Code [and shall receive a receipt in his own name].

(d)iiIn the [his] books of the office, the receiver [receiving clerk] shall keep separate columns indicating the amount of [specie or the amount of currency or other] funds paid [to him].

(e)iiOn removal from office or resignation, the receiver [receiving clerk] shall turn over the [his] books of the office, accounts, and money to the appointed [his] successor [if he has qualified] or to the commissioner and shall receive a receipt for them.

5742 78th LEGISLATURE — REGULAR SESSION

Sec.i31.060.iiFINANCIAL REPORT. On or before the meeting of the legislature, the commissioner [receiving clerk] shall prepare and furnish to the governor [through the commissioner] a correct report of the condition of the [his] office, including the amount of money received, the type of claim, the amount of money paid out, and the type of payment.

SECTIONi9.iiSection 31.064, Natural Resources Code, is amended to read as follows:

Sec.i31.064.iiSETTING AND COLLECTING FEES. The commissioner shall set and collect, for the use of the state, reasonable fees in amounts [determined by the commissioner] for filing fees, preparation of certificates of fact, certified copies, maps, reproduction of maps and sketches, Spanish translations, patents and deeds of acquittance, and for other miscellaneous services, including but not limited to shipping in a mailing tube and typed transcriptions or taped copies of tapes or other sound recordings, and any other provided services and products.