The Senate met at 10:00 a.m. pursuant to adjournment and was called to order by the President.

The roll was called and the following Senators were present: Armbrister, Barrientos, Bernsen, Bivins, Brown, Cain, Carona, Duncan, Ellis, Fraser, Gallegos, Harris, Haywood, Jackson, Lindsay, Lucio, Madla, Moncrief, Nelson, Nixon, Ogden, Ratliff, Shapiro, Shapleigh, Sibley, Truan, Wentworth, West, Whitmire, Zaffirini.

Absent-excused: Luna.

The President announced that a quorum of the Senate was present.

Rabbi Steven Fulberg, Congregation Beth Israel, Austin, offered the invocation as follows:

A prayer for peace: Grant us peace, Your most precious gift, O eternal source of peace, and give us the will to proclaim its message to all the peoples of the Earth. Bless our country and our state that they may always be a stronghold of peace and their advocate among our citizens. May contentment reign within our borders, health and happiness within our homes. Strengthen the bonds of friendship among all the inhabitants of our land and among all the Members of this Chamber that we may always be a stronghold of peace. We praise You, O God, for You are the source of peace. Amen.

On motion of Senator Truan and by unanimous consent, the reading of the Journal of the proceedings of yesterday was dispensed with and the Journal was approved.

LEAVE OF ABSENCE

On motion of Senator Barrientos, Senator Luna was granted leave of absence for today on account of illness.

CAPITOL PHYSICIAN

The President recognized Senator Carona, who presented Dr. Michael McShan of Kilgore as the "Doctor for the Day."

Dr. McShan, participating in the "Capitol Physician" program sponsored by the Texas Academy of Family Physicians, was made welcome by the Senate.

(Senator Truan in Chair)

MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 28, 1999

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS PASSED THE FOLLOWING MEASURES:

HCR 309, Recognizing the May 31, 1999, dedication of the Medal of Honor Monument in the Texas State Cemetery.

THE HOUSE HAS CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 1032 (Viva-voce vote)

HB 2155 (Viva-voce vote)

HB 2186 (Viva-voce vote)

HB 3229 (145 ayes, 0 nays, 1 present not voting)

HB 3479 (Viva-voce vote)

HB 3682 (136 ayes, 4 nays, 1 present not voting)

HB 3846 (145 ayes, 0 nays, 1 present not voting)

THE HOUSE HAS REFUSED TO CONCUR IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES AND REQUESTS THE APPOINTMENT OF A CONFERENCE COMMITTEE TO ADJUST THE DIFFERENCES BETWEEN THE TWO HOUSES:

HB 143

House Conferees: Thompson - Chair/Chavez/Junell/Maxey/Naishtat

HB 153

House Conferees: Nixon - Chair/Dunnam/Hinojosa/Keel/Talton

HB 551

House Conferees: Goolsby - Chair/Davis, Yvonne/McCall/Oliveira/Sadler

HB 628

House Conferees: Hope - Chair/Dunnam/Green/Hinojosa/Wise

HB 673

House Conferees: Carter - Chair/Danburg/Ehrhardt/Luna/Naishtat

HB 801

House Conferees: Uher - Chair/Bonnen/Chisum/Maxey/Zbranek

HB 1603

House Conferees: Thompson - Chair/Capelo/Hartnett/Hinojosa/Uresti

HB 1884

House Conferees: Grusendorf - Chair/Goodman/King, Phil/Pickett/Reyna, Arthur

HB 1983

House Conferees: Bosse - Chair/Gray/Keel/McCall/Turner, Bob

HB 2147

House Conferees: Flores - Chair/Bailey/Carter/Ehrhardt/Hodge

HB 2190

House Conferees: Hinojosa - Chair/Dunnam/Keel/Talton/Wise

HB 2824

House Conferees: Gray - Chair/Bosse/Goodman/Hinojosa/McCall

HB 2954

House Conferees: Gray - Chair/Bosse/Heflin/McCall/Telford

HB 3014

House Conferees: Hawley - Chair/Alexander/Edwards/Noriega/Uher

HB 3255

House Conferees: Gallego - Chair/Dunnam/Hinojosa/Keel/Nixon

HB 3457

House Conferees: Hinojosa - Chair/Keel/Smith/Talton/Wise

THE HOUSE HAS GRANTED THE REQUEST OF THE SENATE FOR THE APPOINTMENT OF A CONFERENCE COMMITTEE ON THE FOLLOWING MEASURES:

SB 89

House Conferees: Bosse - Chair/Greenberg/Puente/Turner, Bob/Walker

SB 103

House Conferees: Grusendorf - Chair/Coleman/Oliveira/Sadler/Smith

SB 104

House Conferees: Coleman - Chair/Dunnam/Dutton/Sadler/Smith

SB 441

House Conferees: McCall - Chair/Davis, Yvonne/Heflin/Oliveira/Sadler

SB 560

House Conferees: Goodman - Chair/Marchant/McCall/Van de Putte/Wolens

SB 709

House Conferees: Keffer - Chair/Brown, Fred/Hardcastle/Mowery/Walker

SB 731

House Conferees: Goodman - Chair/Bosse/Hope/Smithee/Zbranek

SB 840

House Conferees: Hinojosa - Chair/Dunnam/Gutierrez/Keel/Wise

SB 1615

House Conferees: Solis, Jim - Chair/Coleman/Delisi/Hinojosa/McClendon

SB 1703

House Conferees: Hodge - Chair/Clark/Edwards/Hill/Najera

THE HOUSE HAS ADOPTED THE FOLLOWING CONFERENCE COMMITTEE REPORTS:

HB 676 (Viva-voce vote)

HB 1592 (Viva-voce vote)

HB 2085 (Viva-voce vote)

SB 1207 (Viva-voce vote)

SJR 12 (144 ayes, 0 nays, 1 present not voting)

THE HOUSE HAS DISCHARGED ITS CONFEREES AND CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 2997 (Viva-voce vote)

Respectfully,

/s/Sharon Carter, Chief Clerk

House of Representatives

(President in Chair)

SENATE RESOLUTION 1161

Senator Ellis offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 76th Legislature, Regular Session, 1999, That Senate Rule 12.03 is suspended in part, as provided by Senate Rule 12.08, to enable the conference committee appointed to resolve the differences on HB 713, relating to the establishment and operation of the Toward EXcellence, Access, & Success (TEXAS) grant program and the Teach for Texas Grant Program; consolidating and revising financial aid, grant, and scholarship programs; and providing for the education, certification, and recruitment of teachers and faculty instructors, to consider and take action on the following matters:

(1) Senate Rules 12.03(3) and (4) are suspended to permit the committee to add additional text not included in either the house or senate version of the bill, in Section 1 of the bill, in added Sections 56.304 and 56.305, Education Code, to read as follows:

[Sec. 56.304]

(h) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a TEXAS grant, in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a TEXAS grant while enrolled in a number of semester credit hours that is less than the number of semester credit hours required under Subsection (a)(5). The coordinating board may not allow a person to receive a TEXAS grant while enrolled in fewer than six semester credit hours.

[Sec. 56.305]

(g) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a TEXAS grant, in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a TEXAS grant while enrolled in a number

of semester credit hours that is less than the number of semester credit hours required under Subsection (a)(3). The coordinating board may not allow a person to receive a TEXAS grant while enrolled in fewer than six semester credit hours.

Explanation: This change is needed to allow the Texas Higher Education Coordinating Board to adopt rules to allow a student receiving a TEXAS grant to register for a reduced number of semester credit hours in the event of a hardship or for good cause shown.

(2) Senate Rules 12.03(3) and (4) are suspended to permit the committee to add additional text not included in either the house or senate version of the bill, in Section 1 of the bill, in added Section 56.305, Education Code, to read as follows:

(f) A person who is eligible to receive a TEXAS grant continues to remain eligible to receive the TEXAS grant if the person enrolls in or transfers to another eligible institution.

Explanation: This change is needed to allow a student receiving a TEXAS grant to enroll in or transfer to another institution other than the institution the student originally attended.

(3) Senate Rules 12.03(3) and (4) are suspended to permit the committee to add additional text not included in either the house or senate version of the bill, in Section 1 of the bill, in added Section 56.307, Education Code, to read as follows:

(h) The total amount of grants that a student may receive in an academic year under this subchapter and under Section 61.221 may not exceed the maximum amount authorized under Section 61.227.

(i) A public institution of higher education may not:

(1) charge a person attending the institution who also receives a TEXAS grant an amount of tuition and required fees in excess of the amount of the TEXAS grant received by the person; or

(2) deny admission to or enrollment in the institution based on a person's eligibility to receive a TEXAS grant or a person's receipt of a TEXAS grant.

(j) An institution may use other available sources of financial aid, other than a loan or a Pell grant, to cover any difference in the amount of a TEXAS grant and the actual amount of tuition and required fees at the institution.

(k) The legislature in an appropriations act shall account for tuition and required fees received under this section in a way that does not increase the general revenue appropriations to that institution.

Explanation: This change is needed to set a maximum amount that certain students may receive under the TEXAS grant program, to restrict the amounts of tuition and fees an institution of higher education may receive from a TEXAS grant recipient and from other sources, to clarify actions an institution may take with regard to TEXAS grant recipients, and to specify the effect of the grants on general revenue appropriations.

(4) Senate Rules 12.03(3) and (4) are suspended to permit the committee to add additional text not included in either the house or senate version of the bill, in Section 1 of the bill, in added Subchapter M, Chapter 56, Education Code, to read as follows:

Sec. 56.311. LEGISLATIVE OVERSIGHT COMMITTEE. (a) The Legislative Oversight Committee on the TEXAS and Teach for Texas grant programs established by this subchapter is composed of six members as follows:

(1) three members of the senate appointed by the lieutenant governor; and

(2) three members of the house of representatives appointed by the speaker of the house of representatives.

(b) The committee shall:

(1) meet at least twice a year with the coordinating board; and

(2) receive information regarding rules relating to the TEXAS and Teach for Texas grant programs established by this subchapter that have been adopted by the coordinating board or proposed for adoption by the coordinating board.

(c) The committee may request reports and other information from the coordinating board relating to the operation of the TEXAS and Teach for Texas grant programs under this subchapter by the coordinating board.

(d) The committee shall review the specific recommendations for legislation related to this subchapter that are proposed by the coordinating board.

(e) The committee shall monitor the operation of the TEXAS and Teach for Texas grant programs established under this subchapter, with emphasis on the manner of the award of grants, the number of grants awarded, and the educational progress made by persons who have received grants under this subchapter.

(f) The committee shall file a report with the governor, lieutenant governor, and speaker of the house of representatives not later than December 31 of each even-numbered year.

(g) The report shall include identification of any problems in the TEXAS and Teach for Texas grant programs operated under this subchapter with recommended solutions for the coordinating board and for legislative action.

Explanation: This change is needed to create a legislative oversight committee to oversee the TEXAS and Teach for Texas grant programs.

(5) Senate Rules 12.03(3) and (4) are suspended to permit the committee to add additional text not included in either the house or senate version of the bill, to read as follows:

SECTION 11. Sections 54.215 and . . . , Education Code, are repealed.

SECTION 15. A person receiving a scholarship or other financial assistance under Section 54.215 or 54.216, Education Code, or Subchapter G, Chapter 56, Education Code, on the effective date of this Act may continue to receive a scholarship or other financial assistance under Section 54.215 or 54.216 or under Subchapter G, Chapter 56, Education Code, as applicable to the person on the effective date, until the person is no longer eligible for the scholarship or other assistance under Section 54.215 or 54.216, Education Code, or Subchapter G, Chapter 56, Education Code, as the applicable section or subchapter exists on January 1, 1999. The costs of the scholarships or other financial assistance authorized under this section shall be covered by the TEXAS grant program established by Subchapter M, Chapter 56, Education Code, as added by this Act.

Explanation: This change is needed to abolish the student financial assistance program for certain National Guard/ROTC students and to allow current National Guard/ROTC students to continue to receive assistance.

(6) Senate Rules 12.03(3) and (4) are suspended to permit the committee to add additional text not included in either the house or senate version of the bill, to read as follows:

SECTION 17. (a) The Texas Higher Education Coordinating Board shall review and study the effect of the TEXAS grant program and the Teach for Texas grant program established by Subchapter M, Chapter 56, Education Code, as added by this Act, on enrollments at institutions of higher education. The study shall determine whether there have been shifts in enrollments between universities and community

colleges and whether those shifts were caused by the different grant amounts awarded to students at each institution. The report shall make recommendations for legislative changes to the methodology for calculating the amount of the grant awards, if needed.

(b) The Texas Higher Education Coordinating Board shall report its findings to the governor, the lieutenant governor, the speaker of the house of representatives, the presiding officer of each legislative committee with oversight responsibilities for higher education institutions, and the legislative oversight committee established under Subchapter M, Chapter 56, Education Code, as added by this Act, not later than December 1, 2000.

Explanation: This change is needed to allow the Texas Higher Education Coordinating Board to study and review the effects of the TEXAS grant program and the Teach for Texas grant program on enrollments at institutions of higher education.

(7) Senate Rules 12.03(3) and (4) are suspended to permit the committee to add additional text not included in either the house or senate version of the bill, to read as follows:

SECTION 11. (a) This section may be cited as the Steven Gonzales-Prisoner of War Higher Education Act.

(b) Subchapter D, Chapter 54, Education Code, is amended by adding Section 54.219 to read as follows:

Sec. 54.219. PRISONERS OF WAR. (a) In this section, "tuition and required fees" includes tuition, service fees, lab fees, building use fees, and all other required fees except room, board, or clothing fees or deposits in the nature of security for the return or proper care of property.

(b) For each semester or summer session and for a total number of semester credit hours not to exceed 120, the governing body of each institution of higher education shall exempt from the payment of tuition and required fees any person who:

(1) is a resident of Texas and was a resident of Texas at the time of the person's original entry into the United States armed forces;

(2) was first classified as a prisoner of war by the United States Department of Defense on or after January 1, 1999; and

(3) is enrolled for at least 12 semester credit hours.

(c) For each semester or session in which a person receives an exemption from tuition and required fees under Subsection (b), the governing body of the institution the person attends shall exempt the person from the payment of fees and charges for lodging and board if the person resides on the campus of the institution. If the person does not reside on the campus of the institution, the institution shall provide to the person a reasonable stipend to cover the costs of the person's lodging and board.

(d) For each semester or session in which a person receives an exemption from tuition and required fees under Subsection (b), the governing body of the institution the person attends shall award to the person a scholarship to cover the costs of books and similar educational materials required for course work at the institution.

(e) An institution may use any available revenue, including legislative appropriations, and shall solicit and accept gifts, grants, and donations for the purposes of this section. The institution shall use gifts, grants, and donations received for the purposes of this section before using any other revenue.

(c) This section applies beginning with the 1999 fall semester.

Explanation: This change is necessary to require institutions of higher education to provide tuition and fee exemptions and other financial assistance to certain prisoners of war residing in Texas.

The resolution was read and was adopted by a the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE RESOLUTION 993

Senator Barrientos offered the following resolution:

WHEREAS, Mexic-Arte Museum is the capital city's museum dedicated to presenting Mexican, Latino, and Latin American art, and for 15 years many dedicated individuals of this noteworthy institution have worked to produce and present outstanding exhibitions and educational programs promoting the artistic heritage of these cultures; and

WHEREAS, As one of the oldest institutions and as a forerunner in presenting cultural programs that are deeply rooted in this state, Mexic-Arte Museum has exemplified the diversity within our state and has created important ties with our neighboring country, Mexico; and

WHEREAS, Individuals, private businesses, foundations, the City of Austin, the Texas Commission on the Arts, Mid-America Arts Alliance, the National Endowment for the Arts, the Consulate General of Mexico in Austin, and others have contributed to establishing the museum; and

WHEREAS, Mexic-Arte Museum has long served as a center of Mexican, Mexican American, and Latin American arts programming in Texas, coordinating an array of exhibitions and programs in Austin and cities throughout the Lone Star State, including San Antonio, El Paso, Corpus Christi, Del Rio, Laredo, Kingsville, Dallas, and others; and

WHEREAS, As the Official Sister Museum of the Diego Rivera and Frida Kahlo Studio Museum in Mexico City, Mexic-Arte Museum has served as a bridge between Texas and neighboring Mexico through its many cultural programs and exchanges; the Consul General of Mexico is an honorary member of the Mexic-Arte Museum Board of Directors, and the Consulate General of Mexico Library is housed at the museum as well; and

WHEREAS, Located on Congress Avenue in Austin, just six blocks from the State Capitol, accessible to citizens and visitors, Mexic-Arte Museum is situated in the heart of Texas to showcase Mexican, Mexican American, and Latin American art and culture; it is indeed a privilege to recognize the museum for the many vital contributions that it has made toward the education and enlightenment of children and adults alike, and it is fitting that this worthy endeavor be honored at this time; now, therefore, be it

RESOLVED, That the Senate of the State of Texas, 76th Legislature, express support for this valuable contribution to the state's culturally rich history by recognizing Mexic-Arte Museum for presenting and celebrating the cultural heritage and exchange of Mexican, Mexican American, and Latin American art and culture for 15 years and extend best wishes to all those associated with this renowned institution; and, be it further

RESOLVED, That a copy of this Resolution be prepared for Mexic-Arte Museum President Jorge A. Sedeño for prominent display at the museum.

The resolution was again read.

The resolution was previously adopted on Friday, May 14, 1999.

GUESTS PRESENTED

Senator Barrientos was recognized and introduced to the Senate Sylvia Orozco, Executive Director of Mexic-Arte Museum, and Jorge Sedeño, President of the Board of Directors of Mexic-Arte Museum.

The Senate welcomed its guests.

(Senator Truan in Chair)

GUESTS PRESENTED

Senator Moncrief was recognized and introduced to the Senate members of Legislative Management Systems '99: Karen Hrncir, Janet Sullivan, and Aaron May.

The Senate welcomed its guests.

SENATE RESOLUTION 1145

Senator Brown offered the following resolution:

WHEREAS, The Senate of the State of Texas is pleased to recognize the staff of the 1998-1999 Sunset Advisory Commission review cycle for their excellent service to the state; and

WHEREAS, Created to provide for periodic review of the effectiveness and efficiency of state agencies' operations and policies, the Sunset Advisory Commission operates under the Texas Sunset Act passed by the 65th Legislature which became effective in August, 1977; and

WHEREAS, The Texas Sunset Act ensures that duplication of services between state agencies is avoided; and

WHEREAS, About 150 state agencies are subject to the provisions of the Sunset Commission; if an agency can not prove its effectiveness, generally it can be abolished; each legislative session, about 20 to 30 agencies are reviewed; and

WHEREAS, These vital reviews could not be accomplished without the benefit of the talented and hardworking staff of the Sunset Commission; and

WHEREAS, The full time staff, under the supervision of Director Joey Longley and Assistant Director Ken Levine, consists of Policy Directors Charla Ann King, Ginny McKay, Joe Walraven, and business manager Cindy Womack; and

WHEREAS, This group is ably assisted by the Policy and Research Staff of Colin Coe, Katrina Daniel, Kristen Davis, Barbra Dorr, Susan Gennusa, Larry Graham, Ash Hamid, John Hawkins, Kris Heckman, Steve Hopson, John Hubbard, Mike Johnson, Jennifer Jones, Karen Latta, Ilan Levin, Michelle Luera, Lisa Mogil, Robert Morris, Christian Ninaud, Jay Schmidt, and Erica Wissolik; and

WHEREAS, The Administrative Support Group, Cee Hartley, Barbara Hunley, Susan Kinney, and Dawn Roberson, deserves accolades for its stalwart service; the good work of this entire group ensures sure and steady progress in the operation of the commission; now, therefore, be it

RESOLVED, That the Senate of the State of Texas, 76th Legislature, hereby honor the staff of the 1998-1999 Sunset Advisory Commission review cycle and commend their excellent work; and, be it further

RESOLVED, That a copy of this Resolution be prepared for the staff as an expression of the highest regard of the Texas Senate.

The resolution was read.

On motion of Senator Zaffirini and by unanimous consent, the names of the Lieutenant Governor and Senators were added to the resolution as signers thereof.

On motion of Senator Brown, the resolution was adopted by a viva voce vote.

GUESTS PRESENTED

Senator Brown was recognized and introduced to the Senate Representative Patricia Gray, Vice-chair of the Sunset Advisory Commission; Joey Longley, Director of the Sunset Advisory Commission; Ken Levine, Assistant Director of the Sunset Advisory Commission; and the Sunset Advisory Commission's staff.

The Senate welcomed its guests.

CONFERENCE COMMITTEE ON HOUSE BILL 2175

Senator Armbrister called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 2175 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 2175 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Armbrister, Chair; Nixon, Nelson, Moncrief, and Whitmire.

SENATE RESOLUTION 1160

Senator Armbrister offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 76th Legislature, Regular Session, 1999, That Senate Rule 12.03 is suspended, as provided by Senate Rule 12.08, to enable the conference committee appointed to resolve the differences on HB 2175, relating to the regulation of the practice of chiropractic, to consider and take actions on the following matter:

Senate Rule 12.03(1) is suspended to permit the committee to change the text of SECTION 4(a) of the bill to read as follows:

(a) Except as provided by Subsection (b) of this section, the remedy for an offense or violation under Section 5a(c) or 19, Chapter 94, Acts of the 51st Legislature, Regular Session, 1949 (Article 4512b, Vernon's Texas Civil Statutes), regardless of whether the offense or violation is committed before, on, or after the effective date of this Act, is the remedy provided by Section 5a(c), Chapter 94, Acts of the 51st Legislature, Regular Session, 1949 (Article 4512b, Vernon's Texas Civil Statutes), as amended by this Act.

Explanation: This change is necessary to conform the citations in the transitional material of the bill to the sections affected by the amendatory provisions of the bill.

The resolution was read and was adopted by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

CONFERENCE COMMITTEE ON HOUSE BILL 1172

Senator Brown called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1172 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 1172 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Brown, Chair; Armbrister, Duncan, Bivins, and Gallegos.

SENATE BILL 957 WITH HOUSE AMENDMENTS

Senator Madla called SB 957 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer, Senator Truan in Chair, laid the bill and the House amendments before the Senate.

Amendment

Amend SB 957 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the licensing of certain persons who provide services related to the business of insurance.

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

ARTICLE 1. SPECIALTY LICENSES

SECTION 1.01. Subchapter A, Chapter 21, Insurance Code, is amended by adding Article 21.09 to read as follows:

Art. 21.09. SPECIALTY LICENSES

Sec. 1. GENERAL PROVISIONS. (a) The commissioner may issue a specialty license to an applicant who has complied with the requirements of this article. A specialty license authorizes the license holder to act as an agent for the types of insurance specified in this article for any insurer authorized to write these types of insurance in this state. A person who holds a license under this article is known as a "specialty license holder."

(b) For a specialty license to be issued under this article, the applicant must submit to the commissioner:

(1) a written application, signed by the applicant, on a form and supplements to the form prescribed by the commissioner, that contains the information prescribed by the commissioner;

(2) a certification by an insurer authorized to do business in this state that:

(A) is signed by an officer of the insurer and affirmed as true under the penalties of perjury; and

(B) states that:

(i) the insurer has satisfied itself that the named applicant is trustworthy and competent to act as the insurer's agent for a limited purpose authorized by this article; and

(ii) the insurer will appoint the applicant to act as the agent for a type of insurance permitted by this article, if the specialty license applied for is issued by the department; and

(3) a nonrefundable license fee set by the department in an amount necessary to administer this article.

(c) A specialty license issued under this article authorizes an employee of the license holder to act as an agent with respect to the kinds of insurance specified in this article if the employee:

(1) is trained under Subsection (d) of this section to act individually on behalf of the specialty license holder;

(2) is acting on behalf of and under the supervision of the license holder; and

(3) is not compensated based primarily on the amount of insurance sold by the employee under this article.

(d) Each person licensed under this article shall conduct a training program for each individual who is acting on behalf of the license holder with respect to the specific type of insurance. The training program must be submitted to the commissioner for approval before the training program is used and must meet the following minimum standards:

(1) each trainee must receive basic instruction about the kinds of insurance the license holder is authorized to offer for purchase by prospective consumers;

(2) each trainee must be instructed to inform a prospective consumer that, except as may be specifically provided by another law of this state or the United States, the purchase of insurance specified in this article is not required in order to complete the associated consumer transaction; and

(3) each trainee must be instructed with respect to the disclosures required to be made to consumers.

(e) Except as otherwise provided by this article, a specialty license holder acting under this article shall comply with all applicable provisions of this subchapter.

(f) Notwithstanding any other provision of this subchapter or any rule adopted by the commissioner, a specialty license holder is not required to treat premiums collected from a consumer purchasing insurance when completing an associated consumer transaction as money received in a fiduciary capacity if:

(1) the insurer represented by the specialty license holder has consented in writing, signed by an officer of the insurer, that premiums need not be segregated from money received by the license holder on account of the associated consumer transaction; and

(2) the charges for insurance coverage are itemized but not billed to the consumer separately from the charges for the associated consumer transaction.

(g) Insurance may not be issued under this article unless:

(1) at each location at which sales of insurance policies covered by this article occur, brochures or other written materials are prominently displayed and readily available to the prospective consumer that:

(A) summarize, clearly and correctly, the material terms of insurance coverage offered to consumers, including the identity of the insurer;

(B) disclose that the policies offered by the license holder may provide a duplication of coverage already provided by a consumer's personal auto insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage;

(C) state that, except as specifically provided by another law of this state or the United States, the purchase by the consumer of the kinds of insurance specified in this article is not required to complete the associated consumer transaction;

(D) describe the process for filing a claim in the event the consumer elects to purchase coverage and in the event of a claim; and

(E) contain any additional information on the price, benefits, exclusions, conditions, or other limitations of the policies required by the commissioner by rule; and

(2) evidence of coverage is provided to each consumer who elects to purchase the coverage.

(h) If a specialty license holder violates this subchapter, the commissioner may:

(1) impose any disciplinary action authorized by Article 21.01-2 of this code; or

(2) after notice and opportunity for hearing, impose other penalties, including suspending the transaction of insurance at specific locations where a violation of this subchapter has occurred, as the commissioner considers necessary or appropriate to implement the purposes of this subchapter.

(i) A specialty license holder may not in any manner advertise, represent, or otherwise hold out the license holder or any employee of the license holder as a licensed insurance agent under another article of this code unless the entity or individual actually holds the applicable license.

(j) A person who holds a general agent's license issued under Chapter 213, Acts of the 54th Legislature, Regular Session, 1955 (Article 21.07-1, Vernon's Texas Insurance Code), as amended, or Article 21.14 of this code or who holds a substantially equivalent license under this code, as determined by the commissioner, is not required to obtain a specialty license but is subject to the other requirements of this article in the solicitation, sale, or delivery of an insurance product subject to this article.

(k) Each insurance company appointing an agent under this article shall submit a certification of the appointment signed by an officer of the insurer and affirm that the insurer has satisfied itself that the license holder is trustworthy and competent to act as an insurance agent on behalf of the insurer.

(l) An examination is not required for issuance of a license under this article and continuing education requirements do not apply to a license issued under this article.

(m) A person who is licensed as an agent for a legal reserve life insurance company or as a local recording agent, or who holds a substantially equivalent license under this code, as determined by the commissioner, and who enters into a contract with an insurer to act as the insurer's agent in soliciting or writing policies or certificates of insurance covered by this article may assign and transfer to the agent's employer any commission, fee, or other compensation to be paid to the agent under the agent's contract with the insurer, but only if the sale of the insurance product occurred within the scope of the agent's employment.

Sec. 2. RENTAL CAR COMPANIES. (a) In this section:

(1) "Rental agreement" means a written agreement that sets forth the terms and conditions governing the use of a vehicle or vehicle equipment provided by a rental car company.

(2) "Rental car company" means a person engaged in the business of providing leased or rented vehicles or vehicle equipment to the public.

(3) "Renter" means a person who obtains the use of a vehicle or vehicle equipment from a rental car company under the terms of a rental agreement.

(4) "Vehicle" means:

(A) a private passenger motor vehicle, including passenger vans and minivans that are primarily intended for the transport of persons;

(B) a motor home;

(C) a motorcycle;

(D) a trailer with a gross vehicle weight rating of 10,000 pounds or less; or

(E) a truck with a gross vehicle weight rating of 26,000 pounds or less the operation of which does not require a commercial driver's license.

(5) "Vehicle equipment" means a cartop carrier, tow bar, or tow dolly specifically designed for use with a vehicle.

(b) Notwithstanding any other provision of this article or this code, the commissioner shall issue a specialty license under Section 1 of this article to a rental car company, or to the franchisee of a rental car company, that complies with this section only for the limited purposes set forth in this section.

(c) The rental car company or franchisee licensed under Section 1 of this article may act as an agent for an authorized insurer only in connection with the rental of vehicles or vehicle equipment and only with respect to:

(1) excess liability insurance that provides coverage to the rental car company or franchisee and renters and other authorized drivers of rental vehicles, in excess of the standard liability limits provided by the rental car company in the rental agreement, for liability arising from the negligent operation or use of the rental vehicle or vehicle equipment;

(2) accident and health insurance that provides coverage to renters and other vehicle occupants for accidental death or dismemberment and for medical expenses resulting from an accident involving the rental vehicle or vehicle equipment that occurs during the rental period;

(3) personal effects insurance that provides coverage to renters and other rental vehicle occupants for the loss of, or damage to, personal effects or household belongings that occurs during the rental period; or

(4) any other coverage that the commissioner may approve as meaningful and appropriate in connection with the rental of vehicles or vehicle equipment.

(d) Insurance may not be issued under this section unless:

(1) the rental period under the rental agreement does not exceed 30 consecutive days; and

(2) the brochures or other written materials containing the disclosures required by Section 1(g) of this article are prominently displayed and readily available to the prospective renter of a vehicle or vehicle equipment.

Sec. 3. CREDIT INSURANCE. (a) In this section:

(1) "Credit insurance" includes:

(A) credit life insurance;

(B) credit accident and health insurance;

(C) credit property insurance;

(D) credit involuntary unemployment insurance; and

(E) insurance that covers the difference between the actual cash value of a motor vehicle used as security for a loan or lease and the outstanding balance of that loan or lease in the event of loss or damage in which the vehicle is rendered an actual or constructive total loss while the debt for which the vehicle serves as security exceeds the actual cash value of the vehicle.

(2) "Credit insurance agent" means a person licensed to sell credit insurance under this article as specifically provided by this section.

(3) "Credit property insurance" means insurance that provides coverage on personal property used as collateral for securing a personal or consumer loan or on personal property under an installment sales agreement or through a consumer credit transaction that is purchased in connection with or in relation to the personal or consumer loan, installment sale, or consumer credit transaction. The term does not include insurance that provides theft, collision, liability, property damage, or comprehensive insurance coverage on an automobile, motorized aircraft, motorcycle, truck, truck-tractor, traction engine, or any other self-propelled vehicle that is designed primarily for operation in the air, or on highways, roadways, waterways, or the sea, and the operating equipment of the self-propelled vehicle or craft, or that is necessitated by reason of the liability imposed by law for damages arising out of the ownership, operation, maintenance, or use of any of those vehicles and crafts, other than single interest coverage on any vehicle or craft described in this subdivision that insures the interest of the creditor in the same manner as collateral for a loan.

(b) Notwithstanding any other provision of this article or this code, the commissioner may issue a license under Section 1 of this article to a retail distributor of goods, an automobile dealer, a bank, a state or federal savings and loan, a state or federal credit union, a finance company, a production credit association, a manufactured home retailer, or a mobile home retailer that complies with this section only for the limited purposes set forth in this section.

(c) On appointment by the insurance company, a credit insurance agent may act as the agent of any company authorized to engage in the business of insurance under this code in the sale of any type of credit insurance that the company is authorized to write. The authority conferred under this section specifically permits the sale of both individual and group credit insurance.

(d) A license holder and the license holder's representative are not required to make the disclosures required by Section 1(g) of this article if the license holder or the license holder's representative complies with all disclosure requirements prescribed by another provision of this code or another law of this state or the United States relating to the sale or delivery of a credit insurance product that is subject to this section.

Sec. 4. TRAVEL INSURANCE LICENSE. (a) In this section:

(1) "Planned trip" means any journey or travel arranged through the services of a travel agency.

(2) "Travel agency" means an entity engaged in the business of selling or arranging transportation or accommodations for the public.

(3) "Traveler" means an individual who seeks the assistance of a travel agency in connection with the planning and purchase of a trip.

(b) Notwithstanding any other provision of this article or this code, the commissioner may issue a specialty license under Section 1 of this article to a travel agency, the franchisee of a travel agency, or a public carrier that complies with this section only for the limited purposes set forth in this section.

(c) The travel agency or franchisee licensed under Section 1 of this article may act as an agent for any authorized insurer only in connection with the sale or arrangement of transportation or accommodations for travelers and only with respect to:

(1) accident and health insurance that provides coverage to a traveler for accidental death or dismemberment and for medical expenses resulting from an accident involving the traveler that occurs during the planned trip;

(2) insurance that provides coverage to a traveler for expenses incurred as a result of trip cancellation or interruption of a planned trip;

(3) personal effects insurance that provides coverage to a traveler for the loss of, or damage to, personal effects that occurs during the planned trip;

(4) life insurance covering risks of travel during a planned trip that does not exceed $100,000 on any one life; or

(5) any other coverage that the commissioner may approve as meaningful and appropriate in connection with the transportation or accommodations arranged through a travel agency.

(d) Insurance may not be issued under this section unless the brochures or other written materials containing the disclosures required by Section 1(g) of this article are prominently displayed and readily available to the prospective traveler.

Sec. 5. SELF-SERVICE STORAGE FACILITY LICENSE. (a) In this section:

(1) "Rental agreement" means a written agreement that sets forth the terms and conditions governing the use of storage space provided by a self-service storage facility.

(2) "Renter" means a person who obtains the use of storage space from a self-service storage facility under a rental agreement.

(3) "Self-service storage facility" means a person engaged in the business of providing leased or rented storage space to the public.

(4) "Storage space" means a room, unit, locker, or open space offered for rental to the public for temporary storage of personal belongings or light commercial goods.

(b) Notwithstanding any other provision of this article or this code, the commissioner may issue a specialty license under Section 1 of this article to a self-service storage facility or to the franchisee of a self-service storage facility that complies with this section only for the limited purposes set forth in this section.

(c) A self-service storage facility or franchisee licensed under Section 1 of this article may act as an agent for any authorized insurer only in connection with the rental of storage space and only with respect to:

(1) insurance that provides hazard insurance coverage to renters for the loss of, or damage to, tangible personal property in storage or in transit during the rental period; or

(2) any other coverage the commissioner may approve as meaningful and appropriate in connection with the rental of storage space.

(d) Insurance may not be issued under this section unless the brochures or other written materials containing the disclosures required by Section 1(g) of this article are prominently displayed and readily available to the prospective renter.

Sec. 6. RULES. The commissioner may adopt rules necessary to implement this article and to meet the minimum requirements of federal law and regulations.

ARTICLE 2. LIFE AND HEALTH

INSURANCE COUNSELOR LICENSE

SECTION 2.01. Chapter 29, Acts of the 54th Legislature, Regular Session, 1955 (Article 21.07-2, Vernon's Texas Insurance Code), is transferred to the Insurance Code, redesignated as Article 21.07-2, Insurance Code, and amended to read as follows:

Art. 21.07-2. LIFE AND HEALTH INSURANCE COUNSELOR LICENSE

Sec. 1. DEFINITION OF TERM. The term "Life and Health Insurance Counselor" as used in this article [Act ] shall mean any person who, for money, fee,

commission or any other thing of value offers to examine, or examines any policy of life, accident, or health insurance, any health benefit plan, or any annuity or pure endowment contract for the purpose of giving, or gives, or offers to give, any advice, counsel, recommendation or information in respect to the terms, conditions, benefits, coverage or premium of any such policy or contract, or in respect to the expediency or advisability of altering, changing, exchanging, converting, replacing, surrendering, continuing or rejecting any such policy, plan, or contract, or of accepting or procuring any such policy, plan, or contract from any insurer or issuer of a health benefit plan, or who in or on advertisements, cards, signs, circulars or letterheads, or elsewhere, or in any other way or manner by which public announcements are made, uses the title "insurance adviser," "insurance specialist," "insurance counselor," "insurance analyst," "policyholders' adviser," "policyholders' counselor," or any other similar title, or any title indicating that the person [he ] gives, or is engaged in the business of giving advice, counsel, recommendation or information to an insured, or a beneficiary, or any person having any interest in a life, accident, or health insurance contract, health benefit plan contract, annuity or pure endowment contract. This definition is not intended to prevent a person who has obtained the professional designation of chartered life underwriter (CLU), chartered financial consultant (ChFC) or certified financial planner (CFP) by completing a course of instruction recognized within the business of insurance from using that designation to indicate professional achievement.

Sec. 2. LICENSE REQUIRED; ISSUANCE BY DEPARTMENT. No person shall act as a Life and Health Insurance Counselor, as defined in Section 1 of this article [hereof ], unless authorized so to act by a license issued by the department under [Board of Insurance Commissioners of the State of Texas pursuant to the provisions of ] this article [Act ].

Sec. 3. EXEMPTIONS. The provisions of this article [Act ] shall not apply to the following persons:

(a) Licensed agents for a life insurance company while acting for an insurer as its agent.

(b) Licensed attorneys at law of this State when acting within the course or scope of their profession.

(c) Licensed public accountants of this State while acting within the course or scope of their profession.

(d) A regular salaried officer or employee of an authorized insurer issuing policies of life or health insurance while acting for such insurer in discharging the duties of the [his ] position or employment.

(e) An officer or employee of any bank or trust company who receives no compensation from sources other than the bank or trust company for such activities connected with the [his ] employment.

(f) Employers or their officers or employees, or the trustees of any employee benefit plan, to the extent that such employers, officers, employees or trustees are engaged in the administration or operation of any program of employee benefits involving the use of insurance or annuities issued by a legal reserve life insurance company.

Sec. 4. CONTRACT, WRITING REQUIRED; DUPLICATES; OTHER REQUISITES. No contract or agreement between a Life and Health Insurance Counselor, as defined in this article [Act ], and any other person, firm or corporation, relating to the activities, services, advice, recommendations or information referred to

in Section 1 of this article [Act ], shall be enforceable by or on behalf of such Life and Health Insurance Counselor unless it is in writing and executed in duplicate by the person, firm or corporation to be charged, nor unless one of said duplicates is delivered to and retained by such person, firm or corporation when executed, nor unless such contract or agreement plainly specifies the amount of the fee paid or to be paid by such person, firm or corporation, and the services to be rendered by such Life and Health Insurance Counselor; provided, however, that the foregoing provisions shall not be applicable to any of the persons set out in Section 3 of this article [above ].

Sec. 4a. PROHIBITION OF DUAL COMPENSATION. A person licensed under the provisions of this article [Act ] who is also licensed under Chapter 213, Acts of the 54th Legislature, Regular Session, 1955 ([Article 21.07 or ] Article 21.07-1, Vernon's Texas Insurance [of this ] Code), as amended, and who receives a commission or compensation for [his ] services as an agent licensed under Chapter 213, Acts of the 54th Legislature, Regular Session, 1955 ([Article 21.07 or ] Article 21.07-1, Vernon's Texas Insurance Code), as amended, shall not be entitled to receive a fee for the same services [his service ] to the same client as a Life and Health Insurance Counselor.

Sec. 5. MODE OF LICENSING AND REGULATION. (a) Except as provided by this article, [The ] licensing and regulation of a Life and Health Insurance Counselor, as that term is defined herein, shall be in the same manner and subject to the same requirements as applicable to the licensing of agents under this subchapter [of legal reserve life insurance companies as provided in Article 21.07-1 of the Texas Insurance Code, 1951, ] or as provided by any existing or subsequent applicable law governing the licensing of such agents, and all the provisions thereof are hereby made applicable to applicants and licensees under this article [Act ], except that a Life and Health Insurance Counselor shall not advertise in any manner and shall not circulate materials indicating professional superiority or the performance of professional service in a superior manner; provided, however, that an appointment to act for an insurer shall not be a condition to the licensing of a Life and Health Insurance Counselor.

(b) An [In addition to the above requirements, the applicant for licensure as a Life Insurance Counselor shall submit to the Commissioner documentation that he has been licensed as a life insurance agent in excess of three years. After the Insurance Commissioner has satisfied himself as to these requirements, he shall then cause the ] applicant for a Life and Health Insurance Counselor's license must [to ] sit for an examination administered under Article 21.01-1 of this code that includes [which shall include ] the following five subjects and subject areas:

(1) Fundamentals of life and health insurance;

(2) Group life insurance, pensions and health insurance;

(3) Law, trust and taxation;

(4) Finance and economics; and

(5) Business insurance and estate planning.

(c) No license shall be granted until such individual shall have successfully passed each of the five parts under Subsection (b) of this section. Such examinations may be given and scheduled by the Commissioner at the Commissioner's [his ] discretion. The department shall, without further examination, issue a license under this article to an individual who, on September 1, 1999, holds a [Individuals currently holding ] Life Insurance Counselor license [licenses ] issued by the department [Texas State Board of Insurance, who do not have the equivalent of the requirements above listed, shall have one year from the date of enactment hereof to so qualify ].

Sec. 6. INTENT OF LEGISLATURE; STATUTES AND AMENDMENTS APPLICABLE. Except as provided by this article, it [It ] is the legislative intent, and it is hereby provided, that the licensing and regulation of any person acting as a Life and Health Insurance Counselor shall be subject to the same statutes and requirements applicable to the licensing and regulation of agents under this subchapter [of legal reserve life insurance companies ]. In event of subsequent legislative enactment applicable to agents under this subchapter [of legal reserve life insurance companies in lieu of, or as an amendment to, present Article 21.07 of the Texas Insurance Code ], it is hereby provided that such statute shall be applicable to any person acting as a Life and Health Insurance Counselor, as defined in this article [Act ].

Sec. 7. VIOLATIONS. [(a) ] A [person commits an offense if the person acts as a life insurance counselor without a license issued under this Act or otherwise violates this Act. Each violation constitutes a separate offense. An offense under this subsection is a Class C misdemeanor.

[(b) In addition to being subject to the penalty imposed under Subsection (a) of this section, a ] person who commits a violation of this article [Act ] is subject to license revocation under [Section 5, ] Article 21.01-2 of this code[, Insurance Code ]. If the department revokes the license, the license holder is not eligible for a new license for two years after the effective date of the license revocation.

Sec. 8. PARTIAL INVALIDITY. Should any Section or part [thereof ] of this article [Act ] be held to be invalid for any reason, such holding shall not be construed as affecting the validity of any of the remaining Sections or parts of this article [thereof ], it being the legislative intent that the remainder of this article [Section ] shall stand, notwithstanding the invalidity of any Section or part of this article [thereof ].

Sec. 9. CONTINUING EDUCATION. A person who holds a license issued under this article shall complete continuing education as required by rules of the department or any applicable article of this code.

Sec. 10. RULES. The commissioner may adopt rules necessary to implement this article and to meet the minimum requirements of federal law and regulations.

Sec. 11. REFERENCE IN OTHER LAW. A reference in any law to Chapter 29, Acts of the 54th Legislature, Regular Session, 1955, means this article.

ARTICLE 3. ADJUSTERS LICENSES

SECTION 3.01. Chapter 407, Acts of the 63rd Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas Insurance Code), is amended by amending Sections 15, 16, 17, and 23 and adding Section 24 to read as follows:

Sec. 15. PLACE OF BUSINESS. Every licensed adjuster shall have and maintain [in this state ] a place of business accessible to the public. Such place of business shall be located where the adjuster principally conducts transactions under the [his ] license. The [address of his place of business shall appear on all licenses of the licensee, and the ] licensee shall promptly notify the commissioner of any change in the location of the place of business [thereof ].

Sec. 16. EXPIRATION AND RENEWAL OF LICENSES. Expiration and renewal of licenses issued under this Act are governed by rules of the department or any applicable article of the Insurance Code or another insurance law of this state. [(a) Except as may be provided by a staggered renewal system adopted under Article 21.01-2, Insurance Code, an adjuster's license expires two years after the date of issuance.

[(b) Subject to the right of the commissioner to suspend, revoke, or refuse to renew an adjuster's license, any such license may be renewed by filing, on the form

prescribed by the commissioner, on or before the expiration date, a written request, by or on behalf of the licensee, for such renewal, accompanied by payment of the renewal fee. ]

Sec. 17. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE. [(a) ] The department may discipline an adjuster or deny an application under department rules or any other applicable article of the Insurance Code or another insurance law of this state. The rules may specify grounds for discipline that are comparable to grounds for discipline of other license holders under this subchapter [Section 5, Article 21.01-2, Insurance Code, for any of the following causes:

[(1) for any cause for which issuance of the license could have been refused had it been existent and been known to the board;

[(2) if the applicant or licensee willfully violates or knowingly participates in the violation of any provision of this Act;

[(3) if the applicant or licensee has obtained or attempted to obtain any such license through willful misrepresentation or fraud, or has failed to pass any examination required under this Act;

[(4) if the applicant or licensee has misappropriated, or converted to the applicant's or licensee's own use, or has illegally withheld moneys required to be held in a fiduciary capacity;

[(5) if the applicant or licensee has, with intent to deceive, materially misrepresented the terms or effect of an insurance contract, or has engaged in any fraudulent transactions; or

[(6) if the applicant or licensee is convicted, by final judgment, of a felony.

[(b) An applicant or licensee whose license application or license has been denied, refused, or revoked under this section may not apply for any license as an insurance agent or adjuster before the first anniversary of the effective date of the denial, refusal, or revocation, or, if the applicant or licensee seeks judicial review of the denial, refusal, or revocation, before the first anniversary of the date of the final court order or decree affirming that action. The commissioner may deny an application timely filed if the applicant does not show good cause why the denial, refusal, or revocation of the previous license application or license should not be considered a bar to the issuance of a new license. This subsection does not apply to an applicant whose license application was denied for failure to pass a required written examination ].

Sec. 23. DUPLICATE LICENSE; FEE. The department [Commissioner of Insurance ] shall collect in advance from an adjuster [adjusters ] requesting a duplicate license [licenses ] a fee in an amount determined by the department [not to exceed $20. The State Board of Insurance shall determine the amount of the fee ].

Sec. 24. RULES. The commissioner may adopt rules necessary to implement this Act and to meet the minimum requirements of federal law and regulations.

ARTICLE 4. AGRICULTURE AGENTS

SECTION 4.01. Article 21.14-2, Insurance Code, is amended to read as follows:

Art. 21.14-2. [LICENSING OF ] AGRICULTURAL INSURANCE AGENTS

Sec. 1. APPOINTING CERTAIN AGRICULTURAL INSURANCE AGENTS. An insurance company that holds a valid certificate of authority issued by this state to authorize the company to engage in the insurance business in this state, and whose authority in this state and in each other jurisdiction in which the company is licensed to do business is limited [but limiting the insurance business only ] to the transaction of the business of insurance of risks on growing crops, may appoint and act through agents who hold [qualify for ] a license under Article 21.14 of this code, subject to this article.

Sec. 2. REQUIREMENTS FOR APPOINTMENT. (a) To appoint a license holder [obtain a license ] to act as an agent under this article, an insurance company [applicant ] must submit a completed appointment form [written application ] to the department [commissioner of insurance on a form prescribed by the State Board of Insurance ] and pay a [$50 ] nonrefundable fee in an amount determined by the commissioner. The appointment form [application ] must bear an endorsement signed by a representative [an agent ] of an insurance company that meets the requirements of Section 1 of this article [and must state that the applicant is a resident of this state ].

(b) The commissioner of insurance shall approve the appointment [license application ] unless the commissioner determines that the applicant does not meet the requirements of this subchapter [article ].

(c) The department may waive any examination requirement imposed under this subchapter for a license applicant seeking a company appointment under this article if the applicant has successfully completed an examination as required under the Federal Crop Insurance Corporation guidelines for delivery of the federal crop insurance program. [Except as provided by a staggered renewal system adopted under Article 21.01-2 of this code, a license issued under this article expires two years after the date of its issuance unless a completed application to renew the license is filed with the commissioner and the $50 nonrefundable renewal fee is paid on or before that date, in which case the license continues in full force and effect until renewed or the renewal is denied. ]

(d) The department may, at its discretion, accept continuing education hours completed under the guidelines of the Federal Crop Insurance Corporation as satisfying the continuing education requirements imposed under this subchapter. [An applicant for an original or renewal license is not required to pass an examination or meet any basic or continuing educational requirements to obtain or renew a license under this article. ]

Sec. 3. MULTIPLE APPOINTMENTS AUTHORIZED. A license holder appointed under this article may act as an agent for more than one insurance company, but may act as an agent under this article only with respect to the business of insurance on growing crops. [The license of an agent is automatically suspended or canceled if the agent does not have outstanding a valid appointment to act as an agent for an insurance company described in Section 1 of this article. The department may discipline a licensee or deny an application under Section 5, Article 21.01-2, of this code if it determines that the license applicant or licensee:

[(1) has intentionally or knowingly violated the insurance laws of this state;

[(2) has obtained or attempted to obtain a license by fraud or misrepresentation;

[(3) has misappropriated, converted, or illegally withheld money belonging to an insurer or an insured or beneficiary;

[(4) has been guilty of fraudulent or dishonest acts;

[(5) has materially misrepresented the terms and conditions of an insurance policy or contract;

[(6) has made or issued or caused to be made or issued any statement misrepresenting or making incomplete comparisons regarding the terms or conditions of an insurance contract legally issued by an insurance carrier for the purpose of inducing or attempting to induce the owner of the contract to forfeit or surrender the contract or allow the contract to expire or for the purpose of replacing the contract with another contract;

[(7) has been convicted of a felony; or

[(8) is guilty of rebating an insurance premium or discriminating between insureds. ]

Sec. 4. APPLICATION OF OTHER LAW. This subchapter applies [Article 21.14 of this code does not apply ] to the licensing and [or ] regulation of an agent appointed under this article.

Sec. 5. RULES. The commissioner may adopt rules necessary to implement this article and to meet the minimum requirements of federal law and regulations.

ARTICLE 5. REPEALER

SECTION 5.01. The following laws are repealed:

(1) Section 21, Article 21.07, Insurance Code, as added by Chapter 820, Acts of the 75th Legislature, Regular Session, 1997;

(2) Section 21, Article 21.07, Insurance Code, as added by Chapter 1196, Acts of the 75th Legislature, Regular Session, 1997; and

(3) Sections 18 and 19, Chapter 407, Acts of the 63rd Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas Insurance Code).

ARTICLE 6. GRANDFATHER PROVISIONS;

EFFECTIVE DATE; EMERGENCY

SECTION 6.01. This Act takes effect September 1, 1999.

SECTION 6.02. (a) Not later than January 1, 2000, the Texas Department of Insurance shall issue an appropriate license under Article 21.09, Insurance Code, as added by this Act, to a person who, immediately before the effective date of this Act, holds an agent license issued by the Texas Department of Insurance under Section 21, Article 21.07, Insurance Code, as added by Chapter 820, Acts of the 75th Legislature, Regular Session, 1997, or Section 21, Article 21.07, Insurance Code, as added by Chapter 1196, Acts of the 75th Legislature, Regular Session, 1997. On issuance of the new license, the license holder is subject to Article 21.09, Insurance Code, as added by this Act.

(b) A travel agency or franchisee is not required to be licensed as provided by Section 4, Article 21.09, Insurance Code, as added by this Act, before January 1, 2000.

(c) A self-service storage facility or franchisee is not required to be licensed under Section 5, Article 21.09, Insurance Code, as added by this Act, before January 1, 2000.

(d) A person required to be licensed under Article 21.07-2, Insurance Code, as redesignated and amended by this Act, who was not required to be licensed under Chapter 29, Acts of the 54th Legislature, Regular Session, 1955 (Article 21.07-2, Vernon's Texas Insurance Code), as it existed immediately before the effective date of this Act, is not required to be licensed as provided by this Act before January 1, 2000.

(e) A person who holds a license to operate as an agricultural insurance agent under Article 21.14-2, Insurance Code, on the effective date of this Act is eligible for a license under Article 21.14, Insurance Code, if the person applies for the license to the Texas Department of Insurance before March 1, 2000, and pays any required fees. To maintain the license, the person must pass the required qualifying examination for that license on or before March 1, 2002.

SECTION 6.03. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

Floor Amendment No. 1

Amend CSSB 957, in SECTION 1.01 of the bill, in Section 1(d) of added Article 21.09, Insurance Code, by striking the first sentence of that subsection (page 2, lines 22-24, House committee report printing), and substituting the following:

A person licensed under this article may not allow an individual to act on the license holder's behalf with respect to the specific type of insurance that the license holder is authorized to offer unless that individual has completed an approved training program.

Floor Amendment No. 2

Amend CSSB 957 as follows:

(1) In SECTION 1.01, in added Article 21.09, Insurance Code, following added Section 5 of the article (house committee printing, page 13, between lines 7 and 8), insert the following new Section 6:

Sec. 6. FUNERAL PREARRANGEMENT LIFE INSURANCE LICENSE. (a) In this section, "funeral establishment" means a place of business used in the care and preparation for burial or transportation of dead human bodies, or any place at which one or more persons, either as sole owner, in copartnership, or through corporate status, are engaged, or represent themselves to be engaged, in the business of embalming or funeral directing.

(b) Notwithstanding any other provision of this article or this code, the commissioner may issue a funeral prearrangement life insurance agent's specialty license under Section 1 of this article to a funeral establishment that complies with this section only for the limited purposes set forth in this section.

(c) A funeral prearrangement life insurance agent may write only life insurance policies and fixed annuity contracts to secure delivery of funeral services and merchandise under prepaid funeral contracts regulated by the Texas Department of Banking under Chapter 154, Finance Code. A funeral prearrangement life insurance agent may not act as an agent for an insurance company unless the agent acts under the supervision of a person, including a corporation, who holds or is an authorized representative of a holder of a permit issued by the Texas Department of Banking regulated under Chapter 154, Finance Code.

(d) A funeral prearrangement life insurance agent and the agent's employees may not:

(1) write any coverage or combination of coverages with an initial guaranteed death benefit in excess of $15,000 on any life; or

(2) act as an agent for more than one insurance company.

(2) In SECTION 1.01, in added Article 21.09, Insurance Code (house committee printing, page 13, line 8), renumber existing Section 6 of the article as Section 7.

(3) In SECTION 5.01, at the end of Subdivision (2), following the semicolon (house committee printing, page 26, line 1), strike "and".

(4) In SECTION 5.01 (house committee printing, page 26, between lines 1 and 2) insert the following new Subdivision (3) and renumber the subsequent subdivision accordingly:

(3) Section 5A, Chapter 213, Acts of the 54th Legislature, Regular Session, 1955 (Article 21.07-1, Vernon's Texas Insurance Code); and

(5) In SECTION 6.02 (house committee printing, page 26, lines 7-17), strike Subsection (a), substitute the following new Subsections (a) and (b), and reletter subsequent subsections appropriately:

(a) Not later than January 1, 2000, the Texas Department of Insurance shall issue an appropriate license under Article 21.09, Insurance Code, as added by this Act, to a person who, immediately before the effective date of this Act, holds an agent license issued by the Texas Department of Insurance under:

(1) Section 21, Article 21.07, Insurance Code, as added by Chapter 820, Acts of the 75th Legislature, Regular Session, 1997;

(2) Section 21, Article 21.07, Insurance Code, as added by Chapter 1196, Acts of the 75th Legislature, Regular Session, 1997; or

(3) Section 5A, Chapter 213, Acts of the 54th Legislature, Regular Session, 1955 (Article 21.07-1, Vernon's Texas Insurance Code).

(b) On issuance of the new license under Subsection (a) of this section, the license holder is subject to Article 21.09, Insurance Code, as added by this Act.

Floor Amendment No. 3

Amend CSSB 957 in SECTION 1.01 of ARTICLE 1 of the bill, in added Article 21.09, Insurance Code, as follows:

(1) In Section 1(d), in the second sentence (house committee printing, page 2, lines 24-26), strike "The training program must be submitted to the commissioner for approval before the training program is used and" and substitute "An insurer that writes the specific type of insurance for which the specialty license is sought must provide the materials for the training program to the license holder. The insurer must submit the training program to the commissioner for approval before the training program is used. The training program".

(2) In Section 4(c)(4) (house committee printing, page 11, line 20), strike "$100,000" and substitute "$150,000".

The amendments were read.

Senator Madla moved that the Senate do not concur in the House amendments, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on SB 957 before appointment.

There were no motions offered.

The Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Madla, Chair; Lucio, Sibley, Harris, and Brown.

CONFERENCE COMMITTEE ON HOUSE BILL 1376

Senator Carona called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1376 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 1376 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Carona, Chair; Madla, Fraser, Jackson, and Whitmire.

SENATE BILL 261 WITH HOUSE AMENDMENT

Senator Moncrief called SB 261 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 261 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to facilities and functions of facilities under the jurisdiction of the Texas Department of Mental Health and Mental Retardation.

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

SECTION 1. Section 532.001(b), Health and Safety Code, is amended to read as follows:

(b) The department also includes community services operated by the department and the following facilities:

(1) the central office of the department;

(2) the Austin State Hospital;

(3) the Big Spring State Hospital;

(4) the Kerrville State Hospital;

(5) the Rusk State Hospital;

(6) the San Antonio State Hospital;

(7) the Terrell State Hospital;

(8) the North Texas [Vernon-Wichita Falls ] State Hospital;

(9) the Abilene State School;

(10) the Austin State School;

(11) the Brenham State School;

(12) the Corpus Christi State School;

(13) the Denton State School;

(14) the Lubbock State School;

(15) the Lufkin State School;

(16) the Mexia State School;

(17) the Richmond State School;

(18) the San Angelo State School;

(19) the San Antonio State School;

(20) the Amarillo State Center;

(21) the Beaumont State Center;

(22) the El Paso State Center;

(23) [the Harris County Psychiatric Center;

[(24) ] the Laredo State Center;

(24) [(25) ] the Rio Grande State Center; and

(25) [(26) ] the Waco Center for Youth[;

[(27) the Dallas Mental Health Connections;

[(28) the El Paso Psychiatric Hospital; and

[(29) the Lubbock Psychiatric Hospital ].

SECTION 2. Section 571.003(21), Health and Safety Code, is amended to read as follows:

(21) "State mental hospital" means[:

[(A) ] a mental hospital operated by the department[; or

[(B) an inpatient mental health facility that is included in Section 532.001(b) ].

SECTION 3. Section 574.041, Health and Safety Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows:

(a) In an order for temporary or extended mental health services specifying inpatient care, the court shall commit the patient to a designated mental health facility. The court shall commit the patient to:

(1) a [the ] facility of a single portal authority for the area, if an authority has been designated for the area;

(2) a private mental hospital under Section 574.042;

(3) a hospital operated by a federal agency under Section 574.043; or

(4) an inpatient mental health facility of the institutional division of the Texas Department of Criminal Justice under Section 574.044.

(d) In this section, "facility of a single portal authority" includes a private mental hospital under contract with a single portal authority.

SECTION 4. Chapter 596, Health and Safety Code, is repealed.

SECTION 5. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

The amendment was read.

Senator Moncrief moved to concur in the House amendment to SB 261.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 1789 WITH HOUSE AMENDMENT

Senator Nelson called SB 1789 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 1789 (House Committee printing) as follows:

Amend Sec. 414.002(c) as follows:

(c) The term of office of a member is four [two ] years.

Add a new SECTION 2 as follows:

SECTION 2. At their first meeting after this Act takes effect, the members of the advisory council shall draw for three terms expiring September 1, 2000 and two terms expiring September 1, 2001.

Renumber subsequent section.

The amendment was read.

Senator Nelson moved to concur in the House amendment to SB 1789.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 1763 WITH HOUSE AMENDMENT

Senator Barrientos called SB 1763 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 1763 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to certain fees charged at certain institutions of higher education.

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

SECTION 1. Subchapter A, Chapter 54, Education Code, is amended by adding Section 54.010 to read as follows:

Sec. 54.010. PRORATION OF STUDENT FEE. For a student fee authorized by this chapter to be charged per academic semester or term, including a fee authorized to be charged per semester credit hour, the governing board of an institution of higher education shall prorate the amount of the fee charged for a term of the summer session of nine weeks or less based on the length of the term, unless the statute authorizing the fee specifies a reduced fee amount for that term.

SECTION 2. Section 54.50891, Education Code, is amended by amending Subsections (a) and (b) and adding Subsections (e) and (f) to read as follows:

(a) The board of regents of The University of Texas System may charge each student registered at a component institution of The University of Texas System a medical services fee not to exceed $55 for each semester or [of the regular ] term. If approved by a majority vote of those students participating in a general election held at the institution for that purpose, the maximum amount of the medical services fee that may be charged at a component institution is increased to the amount stated on the ballot proposition, not to exceed $75 for each semester or term. Approval at the election of an increase in the maximum amount of the fee that may be charged at a component institution does not affect the application of Subsection (e) to an increase in the amount of the fee actually charged at that institution from one academic year to the next [or 12-week summer session and not to exceed $25 for each six-week or shorter term of the summer session ].

(b) Before charging a medical services fee, the board must give students and administrators an opportunity to offer recommendations to the board as to the type and scope of medical services that should be provided. Before increasing the amount of the medical services fee at The University of Texas at Austin, a medical services fee committee, a majority of the members of which must be students of the university, must approve the fee increase.

(e) The board may not increase the amount of the fee charged at a component institution of The University of Texas System by more than 10 percent from one

academic year to the next unless the increase is approved by a majority of the students of the institution voting in a general election held at the institution for that purpose.

(f) The board shall prorate the amount of a fee charged to a student under this section based on the length of the semester or term for which the student is enrolled.

SECTION 3. Sections 54.536(a) and (b), Education Code, are amended to read as follows:

(a) The board of regents of The University of Texas System may charge each student enrolled in The University of Texas at Austin a fee not to exceed $8 a semester or 12-week summer session, $6 a nine-week summer session, or $4 a six-week summer session. The fee may be used only for financing the renovation, improvement, maintenance, or replacement of the student health center building at the university or for operating the student health center.

(b) The university shall collect the student health services building fee imposed under this section and deposit the money collected in an account to be known as the student health services building account. The money collected and placed in the account may [shall ] be used only to:

(1) finance [for the purpose of financing ] the renovation, improvement, maintenance, or replacement of the student health center building and [may ] be pledged for the payment of obligations issued for those purposes; or

(2) operate the student health center.

SECTION 4. Sections 54.537(a) and (b), Education Code, are amended to read as follows:

(a) The board of regents of The University of Texas System may charge each student enrolled at The University of Texas at Austin a fee not to exceed $1.10 per registered semester hour. The fee may be used only for financing the construction, repair, maintenance, renovation, improvement, or replacement of a student services building at the university or for operating the student services building.

(b) The university shall collect the student services building fee imposed under this section and deposit the money collected into an account to be known as the student services building account. The money collected and placed in the account may [shall ] be used only to:

(1) finance [for the purpose of financing ] the construction, repair, maintenance, renovation, improvement, or replacement of a student services building and [may ] be pledged for the payment of obligations issued for those purposes; or

(2) operate the student services building.

SECTION 5. This Act applies beginning with fees imposed for the 1999 fall semester.

SECTION 6. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

The amendment was read.

Senator Barrientos moved to concur in the House amendment to SB 1763.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

CONFERENCE COMMITTEE ON HOUSE BILL 3757

Senator Carona called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3757 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 3757 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Carona, Chair; Shapiro, Shapleigh, Nixon, and Bernsen.

SENATE BILL 1287 WITH HOUSE AMENDMENT

Senator Lucio called SB 1287 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 1287 as follows:

(1) In SECTION 1 of the bill, in added Section 2306.752(a), Government Code (House committee report, page 1, lines 19 and 20), strike "and nonprofit organizations identified by the department" and substitute "or a nonprofit organization certified by the department as a nonprofit owner-builder housing program".

(2) In SECTION 1 of the bill, in added Section 2306.753(a), Government Code (House committee report, page 2, lines 7 and 8), strike "must provide that at least 50 percent of the loans made under this subchapter be made to" and substitute "must establish a priority for loans made under this subchapter to".

(3) In SECTION 1 of the bill, in added Section 2306.753(b)(2), Government Code (House committee report, page 2, line 17), strike "$25,000" and substitute "60 percent, as determined by the department, of the greater of the state or local median family income".

(4) In SECTION 1 of the bill, following added Section 2306.753(c), Government Code (House committee report, page 3, between lines 10 and 11), insert the following:

(d) At least two-thirds of the dollar amount of loans made under this subchapter in each fiscal year must be made to borrowers whose property is located in a county that is eligible to receive financial assistance under Subchapter K, Chapter 17, Water Code.

(5) In SECTION 1 of the bill, strike added Sections 2306.754(c)(2)-(5), Government Code (House committee report, page 3, line 23 through page 4, line 8) and substitute the following:

(2) may bear interest at a fixed rate of not more than three percent or bear interest in the following manner:

(A) no interest for the first two years of the loan;

(B) beginning with the second anniversary of the date the loan was made, interest at the rate of one percent a year;

(C) beginning on the third anniversary of the date the loan was made and ending on the sixth anniversary of the date the loan was made, interest at a rate that is one percent greater than the rate borne in the preceding year; and

(D) beginning on the sixth anniversary of the date the loan was made and continuing through the remainder of the loan term, interest at the rate of five percent; and

(6) In SECTION 1 of the bill, in added Section 2306.754(c)(6), Government Code (House committee report, page 4, line 9), strike "(6)" and substitute "(3)".

(7) In SECTION 1 of the bill, at the end of added Section 2306.758(b)(2), Government Code (House committee report, page 6, line 9), insert "and".

(8) In SECTION 1 of the bill, strike added Section 2306.758(b)(3), Government Code (House committee report, page 6, lines 10 and 11).

(9) In SECTION 1 of the bill, in added Section 2306.758(b)(4), Government Code (House committee report, page 6, line 12), strike "(4)" and substitute "(3)".

(10) In SECTION 1 of the bill, strike added Section 2306.759(1), Government Code (House committee report, page 6, lines 15-17) and substitute the following:

(1) prepare a report that evaluates the repayment history of owner-builders who receive loans under this subchapter, including for each owner-builder:

(A) the owner-builder's income;

(B) the date on which the owner-builder completed building or improving the residential housing for which the loan was made;

(C) the county in which the residential housing is located;

(D) the identity of the owner-builder housing program through which the housing was constructed; and

(E) a description of the type of construction or improvement made; and

(11) Strike SECTIONS 2 and 3 of the bill (House committee report, page 6, line 23 through page 7, line 7) and substitute the following:

SECTION 2. For the state fiscal biennium ending August 31, 2001, the Texas Department of Housing and Community Affairs shall use not more than $2.8 million from funds allocated to the housing trust fund established under Section 2306.201, Government Code, and not less than $2.8 million from any other source available to the department to make loans under Subchapter FF, Chapter 2306, Government Code, as added by this Act.

(12) Renumber SECTIONS 4 and 5 of the bill as SECTIONS 3 and 4.

The amendment was read.

On motion of Senator Lucio, the Senate concurred in the House amendment to SB 1287 by a viva voce vote.

SENATE BILL 1855 WITH HOUSE AMENDMENT

Senator Bernsen called SB 1855 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 1855 by striking all above the enacting clause (House Committee Report, page 1, lines 1-4) and substituting "relating to the creation, administration, powers, duties, functions, operations, and financing of the Tarkington Special Utility District.".

The amendment was read.

Senator Bernsen moved to concur in the House amendment to SB 1855.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 1588 WITH HOUSE AMENDMENT

Senator Zaffirini called SB 1588 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 1588 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to fraud control procedures for the Medicaid managed care program.

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

SECTION 1. Subchapter A, Chapter 533, Government Code, is amended by adding Section 533.012 to read as follows:

Sec. 533.012. INFORMATION FOR FRAUD CONTROL. (a) Each managed care organization contracting with the commission under this chapter shall submit to the commission:

(1) a description of any financial or other business relationship between the organization and any subcontractor providing health care services under the contract;

(2) a copy of each type of contract between the organization and a subcontractor relating to the delivery of or payment for health care services; and

(3) a description of the fraud control program used by any subcontractor that delivers health care services.

(b) The information submitted under this section must be submitted in the form required by the commission and be updated as required by the commission.

(c) The commission's office of investigations and enforcement shall review the information submitted under this section as appropriate in the investigation of fraud in the Medicaid managed care program. The comptroller may review the information in connection with the health care fraud study conducted by the comptroller.

(d) For a subcontractor who reenrolled as a provider in the Medicaid program as required by Section 2.07, Chapter 1153, Acts of the 75th Legislature, Regular Session, 1997, or who modified a contract in compliance with that section, a managed care organization is not required to submit, and the provider is not required to provide, fraud control information different than the information submitted in connection with the reenrollment or contract modification.

(e) Information submitted to the commission under Subsection (a)(1) is confidential and not subject to disclosure under Chapter 552, Government Code.

SECTION 2. Section 533.005, Government Code, is amended to read as follows:

Sec. 533.005. REQUIRED CONTRACT PROVISIONS. A contract between a managed care organization and the commission for the organization to provide health care services to recipients must contain:

(1) procedures to ensure accountability to the state for the provision of health care services, including procedures for financial reporting, quality assurance, utilization review, and assurance of contract and subcontract compliance;

(2) capitation and provider payment rates that ensure the cost-effective provision of quality health care;

(3) a requirement that the managed care organization provide ready access to a person who assists recipients in resolving issues relating to enrollment, plan administration, education and training, access to services, and grievance procedures;

(4) a requirement that the managed care organization provide ready access to a person who assists providers in resolving issues relating to payment, plan administration, education and training, and grievance procedures;

(5) a requirement that the managed care organization provide information and referral about the availability of educational, social, and other community services that could benefit a recipient;

(6) procedures for recipient outreach and education;

(7) a requirement that the managed care organization make payment to a physician or provider for health care services rendered to a recipient under a managed care plan not later than the 45th day after the date a claim for payment is received with documentation reasonably necessary for the managed care organization to process the claim, or within a period, not to exceed 60 days, specified by a written agreement between the physician or provider and the managed care organization;

(8) a requirement that the commission, on the date of a recipient's enrollment in a managed care plan issued by the managed care organization, inform the organization of the recipient's Medicaid recertification date; [and ]

(9) a requirement that the managed care organization comply with Section 533.006 as a condition of contract retention and renewal; and

(10) a requirement that the managed care organization provide the information required by Section 533.012 and otherwise comply and cooperate with the commission's office of investigations and enforcement.

SECTION 3. This Act takes effect September 1, 1999.

SECTION 4. The change in law made by this Act applies only to a contract with a managed care organization entered into or renewed on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 5. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator Zaffirini, the Senate concurred in the House amendment to SB 1588 by a viva voce vote.

SENATE BILL 1579 WITH HOUSE AMENDMENT

Senator West called SB 1579 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer, Senator Truan in Chair, laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 1579 (House Committee Printing) as follows:

(1) In added Section 71.022(a), Penal Code, (page 1, lines 11 and 12), strike "which constitutes an offense under this code or other law" and substitute "which constitutes an offense punishable as a Class A misdemeanor or a felony".

(2) In added Section 71.022(b), Penal Code, (page 1, lines 13 and 14), strike "a Class A misdemeanor or felony offense" and substitute "an offense".

The amendment was read.

On motion of Senator West, the Senate concurred in the House amendment to SB 1579 by a viva voce vote.

SENATE BILL 1578 WITH HOUSE AMENDMENTS

Senator West called SB 1578 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Floor Amendment No. 1

Amend SB 1578 in SECTION 1 of the bill as follows:

(1) In added Article 61.08(a), Code of Criminal Procedure, strike "law enforcement agencies" and substitute "criminal justice agencies and juvenile justice agencies" (page 1, line 8, house committee printing).

(2) In added Article 61.08(a), Code of Criminal Procedure, strike "system shall include" and substitute "system may include" (page 1, line 9, house committee printing).

(3) In added Article 61.08(b), Code of Criminal Procedure, strike "law enforcement agencies" and substitute "criminal justice agencies and juvenile justice agencies" (page 1, lines 18-19, house committee printing).

(4) In added Article 61.08(c), Code of Criminal Procedure, strike "law enforcement agencies" and substitute "criminal justice agencies and juvenile justice agencies" (page 1, line 24, house committee printing).

(5) In added Article 61.08(f), Code of Criminal Procedure, strike "law enforcement personnel" and substitute "criminal justice agency personnel and juvenile justice agency personnel" (page 2, line 10, house committee printing).

Floor Amendment No. 2

Amend SB 1578 as follows:

In SECTION 1 of the bill, on page 1, lines 37, 38 and 39, delete the following in Article 61.08(e) Code of Criminal Procedure:

"shall not be included in affidavits or subpoenas or used in connection with any other legal or judicial proceedings."

and insert in lieu thereof the following:

"may be included in affidavits or subpoenas or used in connection with any other legal or judicial proceeding only if the information from the system is corroborated by information not provided or maintained in the system."

The amendments were read.

Senator West moved to concur in the House amendments to SB 1578.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

(Senator Brown in Chair)

SENATE BILL 1569 WITH HOUSE AMENDMENTS

Senator West called SB 1569 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Amendment

Amend SB 1569 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the leasing of classroom space for an institution of higher education.

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

SECTION 1. Subsection (b), Section 2167.001, Government Code, is amended to read as follows:

(b) This chapter does not apply to:

(1) aircraft hangar space;

(2) radio antenna space;

(3) boat storage space;

(4) vehicle parking space;

(5) residential space for a Texas Department of Mental Health and Mental Retardation program;

(6) residential space for a Texas Youth Commission program;

(7) space to be used for less than one month for meetings, conferences, conventions, seminars, displays, examinations, auctions, or similar purposes;

(8) district office space for members of the legislature;

(9) space used by the Texas Employment Commission; [or ]

(10) residential property acquired by the Texas Department of Housing and Community Affairs or the Texas State Affordable Housing Corporation that is offered for sale or rental to individuals and families of low or very low income or families of moderate income; or

(11) except as provided by Section 2167.007, classroom and instructional space for an institution of higher education.

SECTION 2. Subchapter A, Chapter 2167, Government Code, is amended by adding Section 2167.0051 to read as follows:

Sec. 2167.0051. CLASSROOM AND INSTRUCTIONAL SPACE. (a) An institution of higher education may not lease classroom and instructional space unless the portion of the building to be used by the institution complies with the applicable

standards and specifications under the architectural barriers law, Article 9102, Revised Statutes.

(b) An institution of higher education must use competitive sealed proposals in accordance with Section 2167.054 to lease classroom and instructional space and shall include provisions to obtain a lease contract for classroom and instructional space in accordance with Section 2167.055.

SECTION 3. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

Floor Amendment No. 1

Amend CSSB 1569, in SECTION 2 of the bill, by striking added Section 2167.0051(b), Government Code (committee report page 2, lines 14-18), and inserting the following:

(b) An institution of higher education may lease classroom and instructional space through competitive bidding in accordance with Section 2167.053 or through competitive sealed proposals in accordance with Section 2167.054 or may negotiate for that space on making a determination that competition is not available, and shall include provisions to obtain a lease contract for classroom and instructional space in accordance with Section 2167.055.

The amendments were read.

Senator West moved to concur in the House amendments to SB 1569.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 1261 WITH HOUSE AMENDMENT

Senator Bivins called SB 1261 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 1261, in SECTION 3 of the bill, in the first sentence of amended Section 61.823(a), Education Code (Engrossed Printing page 2, line 8), strike "may [shall ]" and substitute "shall".

The amendment was read.

Senator Bivins moved to concur in the House amendment to SB 1261.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 525 WITH HOUSE AMENDMENT

Senator Truan called SB 525 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1 on Third Reading

Amend SB 525 on third reading, in SECTION 1 of the bill, by striking Subsection (a), Section 431.006, Government Code (house committee report, page 1, lines 7-16), and substituting the following:

(a) A private employer may not terminate the employment of a permanent employee who is a member of the state military forces because the employee is ordered to authorized training or [active ] duty by proper authority [during an emergency within the state ]. The employee is entitled to return to the same employment held when ordered to training or [active ] duty and may not be subjected to loss of time, efficiency rating, vacation time, or any benefit of employment during or because of the absence. The employee, as soon as practicable after release from duty, must give written or actual notice of intent to return to employment. This subsection does not require a private employer to pay the regular wage of an employee during the period that the employee is absent from work to participate in authorized training or duty.

The amendment was read.

On motion of Senator Truan, the Senate concurred in the House amendment to SB 525 by a viva voce vote.

CONFERENCE COMMITTEE ON HOUSE BILL 3255

Senator Carona called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3255 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 3255 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Carona, Chair; Duncan, Jackson, Armbrister, and Shapiro.

SENATE CONCURRENT RESOLUTION 24

WITH HOUSE AMENDMENTS

Senator Carona called SCR 24 from the President's table for consideration of the House amendments to the resolution.

The Presiding Officer laid the resolution and the House amendments before the Senate.

Amendment

Amend SCR 24 by substituting in lieu thereof the following:

CONCURRENT RESOLUTION

WHEREAS, DalMac Construction Company, Inc., alleges that on February 15, 1993, DalMac Construction Company and Texas A&M

University entered into a contract for the construction of a recreational sports building and that the university has breached the contract; now, therefore, be it

RESOLVED by the Legislature of the State of Texas, That DalMac Construction Company, Inc., is granted permission to file a claim against Texas A&M University with the State Office of Administrative Hearings for amounts owed under the contract for construction of the recreational sports building; and, be it further

RESOLVED, That an administrative law judge of the State Office of Administrative Hearings shall hear the claim as a contested case under Chapter 2001, Government Code, and render a written order containing the administrative law judge's findings of facts and recommendations; and, be it further

RESOLVED, That Texas A&M University may assert in the contested case authorized by this resolution any counterclaim or offset that the university claims against DalMac Construction Company, Inc., with respect to the contract; and, be it further

RESOLVED, That Texas A&M University shall pay, exclusively from money appropriated for this purpose, the claim or any part of the claim if the administrative law judge finds, by a preponderance of the evidence, the claim or part of the claim is valid under the laws of this state; and, be it further

RESOLVED, That the amount awarded by the administrative law judge in a contested case authorized by this resolution may not include any amount attributable to consequential damages resulting from any breach of contract, punitive or exemplary damages, or attorney's fees; and, be it further

RESOLVED, That the amount of a claim paid in accordance with any order of an administrative law judge may not exceed the balance due and owing on the contract price, including any orders for additional work, less any amount owed for work not performed under the contract or in substantial compliance with the contract and less any valid counterclaim or offset asserted by Texas A&M University, but that in any event the amount paid may not exceed $3 million; and, be it further

RESOLVED, That any act, finding, ruling, or award of an administrative law judge in a contested case authorized under this resolution is not subject to appeal to any court of this state; and, be it further

RESOLVED, That an administrative law judge may establish a fee in an amount that allows the State Office of Administrative Hearings to recover its costs with respect to the contested case authorized by this resolution and assess the fee against the party that does not prevail in the contested case or apportion the fee against the parties to the contested case in an equitable manner; and, be it further

RESOLVED, That if legislation is enacted by the 76th Legislature under which the State Office of Administrative Hearings may hear contract claims against the state, the hearings held by the State Office of Administrative Hearings in accordance with this resolution shall be held in accordance with that legislation and any rules or procedures adopted under that legislation.

Floor Amendment No. 1

Amend CSSCR 24 as follows:

(1) On page 1, line 9 of the resolution strike "amounts" and insert "breach of contract for such amounts as are," after the words "Administrative Hearings for."

(2) On page 2, line 9 of the resolution strike the word "price."

The amendments were read.

On motion of Senator Carona, the Senate concurred in the House amendments to SCR 24 by a viva voce vote.

SENATE BILL 1220 WITH HOUSE AMENDMENT

Senator Moncrief called SB 1220 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment No. 1

Amend SB 1220 by striking SECTION 3 of the bill, and substitute the following:

"SECTION 3. Subchapter B, Chapter 392, Transportation Code, is amended by adding Section 392.0325 to read as follows:

Sec. 392.0325. EXCEPTION. (a) A person may submit a request to the department for an exception to this subchapter for a sign that is attached to a building located on property other than a state highway right-of-way and that refers to a commercial activity or business located in the building if the sign:

(1) consists solely of the name of the establishment;

(2) identifies the establishment's principal product or services; or

(3) advertises the sale or lease of the property on which the sign is located.

(b) The department shall approve a request submitted under Subsection (a) if the department:

(1) determines that the sign will not constitute a safety hazard;

(2) determines that the sign will not interfere with the construction, reconstruction, operation, or maintenance of the highway facility; and

(3) obtains the approval of the Federal Highway Administration if approval is required under federal law.

The amendment was read.

Senator Moncrief moved to concur in the House amendment to SB 1220.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

CONFERENCE COMMITTEE ON HOUSE BILL 1291

Senator Harris called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1291 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 1291 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Harris, Chair; Lucio, Nelson, Armbrister, and Ellis.

SENATE BILL 1165 WITH HOUSE AMENDMENTS

Senator Wentworth called SB 1165 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Floor Amendment No. 1

Amend SB 1165 at the end of the bill by adding the following SECTION, appropriately numbered:

SECTION . The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

Floor Amendment No. 2

Amend SB 1165 as follows:

(1) In SECTION 1 of the bill, in the introductory language to the SECTION (Committee Printing, page 1, line 4), strike "(c) and (d)" and substitute "(c), (d), and (e)".

(2) In SECTION 1 of the bill, between Sections 26.179(d) and (g), Water Code (Committee Printing, page 2, between lines 16 and 17), insert the following:

(e) A water quality protection zone designated under this section shall be described by metes and bounds or other adequate legal description. The designation shall include a general description of the proposed land uses within the zone, a water quality plan for the zone, and a general description of the water quality facilities and infrastructure to be constructed for water quality protection in the zone.

(3) In SECTION 1 of the bill, in new Section 26.179(g), Water Code (Committee Printing, page 2, line 21), between "zone designation." and "An amendment", insert "An amendment to a zone designation adding land to or excluding land from a zone must describe the boundaries of the zone as enlarged or reduced by metes and bounds or other adequate legal description.".

Floor Amendment No. 3

Amend SB 1165 (House Committee Printing) by adding the following SECTION, appropriately numbered, and renumbering the subsequent SECTIONS of the bill accordingly:

SECTION . All actions taken by the Texas Natural Resource Conservation Commission or another state agency before the effective date of this Act relating to the approval under Section 26.179, Water Code, of the designation of a tract as a water quality protection zone, of a water quality plan for a zone, or of an amendment to a designation or plan are ratified, validated, approved, and confirmed.

The amendments were read.

Senator Wentworth moved to concur in the House amendments to SB 1165.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 1133 WITH HOUSE AMENDMENT

Senator Madla called SB 1133 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 1133 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the procurement by a governmental entity of certain professional services.

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

SECTION 1. Section 2254.002(2), Government Code, is amended to read as follows:

(2) "Professional services" means services:

(A) within the scope of the practice, as defined by state law, of:

(i) accounting;

(ii) architecture;

(iii) landscape architecture;

(iv) land surveying;

(v) [(iv) ] medicine;

(vi) [(v) ] optometry;

(vii) [(vi) ] professional engineering; [or ]

(viii) [(vii) ] real estate appraising; or

(ix) professional nursing; or

(B) provided in connection with the professional employment or practice of a person who is licensed or registered as:

(i) a certified public accountant;

(ii) an architect;

(iii) a landscape architect;

(iv) a land surveyor;

(v) [(iv) ] a physician, including a surgeon;

(vi) [(v) ] an optometrist;

(vii) [(vi) ] a professional engineer; [or ]

(viii) [(vii) ] a state certified or state licensed real estate appraiser; or

(ix) a registered nurse.

SECTION 2. This Act takes effect September 1, 1999.

SECTION 3. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator Madla, the Senate concurred in the House amendment to SB 1133 by a viva voce vote.

SENATE BILL 1131 WITH HOUSE AMENDMENT

Senator Madla called SB 1131 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 1131 by adding SECTIONS 6 and 7 that read as follows and renumbering remaining SECTIONS accordingly:

SECTION 6. Section 8, Article 4514, Revised Statutes, is amended by adding subsection (c) to read as follows:

(c) An advanced practice nurse's signature attesting to the provision of a service the advanced practice nurse is legally authorized to provide shall satisfy any documentation requirement for that service established by a state agency.

SECTION 7. Section 12, Physician Assistant Licensing Act (Article 4495b-1, Vernon's Revised Texas Civil Statutes) is amended by adding subsection (d) to read as follows:

(d) A physician assistant's signature attesting to the provision of a service the physician assistant is legally authorized to provide shall satisfy any documentation requirement for that service established by a state agency.

The amendment was read.

On motion of Senator Madla, the Senate concurred in the House amendment to SB 1131 by a viva voce vote.

SENATE BILL 983 WITH HOUSE AMENDMENT

Senator Madla called SB 983 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 983, lines 15 and 16 on page 1, by deleting the words "or allow the state to set its own driving distance requirements" after the word "agency"

The amendment was read.

On motion of Senator Madla, the Senate concurred in the House amendment to SB 983 by a viva voce vote.

SENATE BILL 967 WITH HOUSE AMENDMENT

Senator Zaffirini called SB 967 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 967 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to creating a registry for acts of misconduct for and criminal background checks on certain employees of certain health care facilities that are licensed or certified by or that contract with the state.

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

SECTION 1. Section 250.004(a), Health and Safety Code, is amended to read as follows:

(a) Identifying information[, including mailing addresses, ] of an employee [employees ] in direct contact with a consumer [consumers ] in a covered facility [facilities ] shall be submitted on a typewritten form to the Department of Public Safety to obtain the person's criminal conviction record when the person applies for employment and at other times as the facility may determine appropriate. In this subsection, "identifying information" includes:

(1) the complete name, race, and sex of the employee;

(2) any known identifying number of the employee, including social security number, driver's license number, or state identification number; and

(3) the employee's date of birth.

SECTION 2. Subtitle B, Title 4, Health and Safety Code, is amended by adding Chapter 253 to read as follows:

CHAPTER 253. EMPLOYEE MISCONDUCT REGISTRY

Sec. 253.001. DEFINITIONS. In this chapter:

(1) "Commissioner" means the commissioner of human services.

(2) "Department" means the Texas Department of Human Services.

(3) "Employee" means a person who:

(A) works at a facility;

(B) is an individual who provides personal care services, active treatment, or any other personal services to a resident or consumer of the facility;

(C) is not licensed by an agency of the state to perform the services the employee performs at the facility; and

(D) is not a nurse aide employed by a nursing facility.

(4) "Facility" means:

(A) a facility licensed by the department; or

(B) an adult foster care provider that contracts with the department.

Sec. 253.002. INVESTIGATION BY DEPARTMENT. If the department receives a report that an employee of a facility has abused, neglected, or exploited a resident or consumer of a facility or misappropriated a resident's or consumer's property, the department shall investigate the report to determine whether the employee has committed the act of abuse, neglect, exploitation, or misappropriation.

Sec. 253.003. DETERMINATION; NOTICE. (a) If, after an investigation, the department determines that the employee abused, neglected, or exploited a resident or consumer of the facility or misappropriated a resident's or consumer's property, the department shall give written notice of the department's findings. The notice must include:

(1) a brief summary of the department's findings; and

(2) a statement of the person's right to a hearing on the occurrence of the misconduct.

(b) Not later than the 30th day after the date on which the notice is received, the employee notified may accept the determination of the department made under this section or may make a written request for a hearing on that determination.

(c) If the employee notified of the violation accepts the determination of the department or fails to timely respond to the notice, the commissioner or the commissioner's designee shall issue an order approving the determination and ordering that the incident of misconduct be recorded in the registry under Section 253.007.

Sec. 253.004. HEARING; ORDER. (a) If the employee requests a hearing, the department shall:

(1) set a hearing;

(2) give written notice of the hearing to the employee; and

(3) designate a hearings examiner to conduct the hearing.

(b) The hearings examiner shall make findings of fact and conclusions of law and shall promptly issue to the commissioner or the commissioner's designee a proposal for decision as to the occurrence of the violation.

(c) Based on the findings of fact and conclusions of law and the recommendations of the hearings examiner, the commissioner or the commissioner's designee by order may find that an act of misconduct has occurred. If the commissioner or the commissioner's designee finds that an act of misconduct has occurred, the commissioner or the commissioner's designee shall issue an order approving the determination.

Sec. 253.005. NOTICE; JUDICIAL REVIEW. (a) The department shall give notice of the order under Section 253.004 to the employee alleged to have committed the act of misconduct. The notice must include:

(1) separate statements of the findings of fact and conclusions of law;

(2) a statement of the right of the employee to judicial review of the order; and

(3) a statement that the incident of misconduct will be recorded in the registry under Section 253.007 if:

(A) the employee does not request judicial review of the determination; or

(B) the determination is sustained by the court.

(b) Not later than the 30th day after the date on which the decision becomes final as provided by Chapter 2001, Government Code, the employee may file a petition for judicial review contesting the finding of an act of misconduct. If the employee does not request judicial review of the determination, the department shall record the incident of misconduct in the registry under Section 253.007.

(c) Judicial review of the order:

(1) is instituted by filing a petition as provided by Subchapter G, Chapter 2001, Government Code; and

(2) is under the substantial evidence rule.

(d) If the court sustains the finding of the occurrence of an act of misconduct, the department shall record the incident of misconduct in the registry under Section 253.007.

Sec. 253.006. INFORMAL PROCEEDINGS. The department by rule shall adopt procedures governing informal proceedings held in compliance with Section 2001.056, Government Code.

Sec. 253.007. EMPLOYEE MISCONDUCT REGISTRY. (a) If an employee abuses, neglects, or exploits a resident or consumer of a facility or misappropriates a

resident's or consumer's property, the department shall make a record of the employee's name, the employee's address, the employee's social security number, the name of the facility, the address of the facility, the date of the act of misconduct, and a description of the act of misconduct.

(b) If an agency of another state or the federal government finds that an employee has abused, neglected, or exploited a resident or consumer of a facility or misappropriated a resident's or consumer's property, the department may make a record in the employee misconduct registry of the employee's name, the employee's address, the employee's social security number, the name of the facility, the address of the facility, the date of the act of misconduct, and a description of the act of misconduct.

(c) The department shall make the registry available to the public.

Sec. 253.008. VERIFICATION OF EMPLOYABILITY. (a) Before a facility may hire an employee, the facility shall search the employee misconduct registry under this chapter and the nurse aide registry maintained under the Omnibus Budget Reconciliation Act of 1987 (Pub. L. No. 100-203) to determine whether the person is designated in either registry as having abused, neglected, or exploited a resident or consumer of a facility.

(b) A facility may not employ a person who is listed in either registry as having abused, neglected, or exploited a resident or consumer of a facility.

Sec. 253.009. NOTIFICATION. (a) Each facility shall notify its employees in a manner prescribed by the department:

(1) about the employee misconduct registry; and

(2) that an employee may not be employed if the employee is listed in the registry.

(b) The department shall adopt rules to implement this section.

SECTION 3. This Act takes effect September 1, 1999, and applies only to an act of misconduct that occurs on or after that date.

SECTION 4. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator Zaffirini, the Senate concurred in the House amendment to SB 967 by a viva voce vote.

SENATE BILL 639 WITH HOUSE AMENDMENT

Senator Bernsen called SB 639 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer, Senator Brown in Chair, laid the bill and the House amendment before the Senate.

Amendment

Amend SB 639 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the issuance of special license plates to fund tourism activities of the department of economic development.

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

SECTION 1. Subchapter F, Chapter 502, Transportation Code, is amended by adding Section 502.2733 to read as follows:

Sec. 502.2733. TEXAS. IT'S LIKE A WHOLE OTHER COUNTRY LICENSE PLATES. (a) The department shall issue specially designed "Texas. It's Like A Whole Other Country" license plates for passenger cars and light trucks.

(b) The license plates must include the trademarked Texas patch and the words "Texas. It's Like A Whole Other Country" and be of a color, quality, and design approved by the Texas Department of Economic Development.

(c) The department shall issue license plates under this section to a person who:

(1) applies to the county assessor-collector of the county in which the person resides on a form provided by the department; and

(2) pays an annual fee of $30, in addition to the fee prescribed by Section 502.161 and, if personalized prestige license plates are issued, in addition to the fee prescribed by Section 502.251.

(d) Of each fee collected under this section:

(1) $25 shall be deposited to the credit of the tourism account in the general revenue fund to finance the Texas Department of Economic Development's tourism activities; and

(2) $5 shall be deposited to the credit of the state highway fund to defray the cost of administering this section.

(e) If the owner of a vehicle registered under this section disposes of the vehicle during the registration year, the owner shall return the special license plates to the department.

SECTION 2. Before January 1, 2004, the comptroller shall determine the total amount collected under Section 502.2733(d)(1), Transportation Code, as added by this Act, before September 1, 2003, and shall submit the determination to the secretary of state for publication in the Texas Register. If the amount of the comptroller's determination is less than $100,000, Section 502.2733, Transportation Code, as added by this Act, expires January 1, 2004.

SECTION 3. This Act takes effect September 1, 1999.

SECTION 4. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator Bernsen, the Senate concurred in the House amendment to SB 639 by a viva voce vote.

SENATE BILL 754 WITH HOUSE AMENDMENT

Senator Lucio called SB 754 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment No. 1

Amend SB 754, in SECTION 1 of the bill, in proposed Section 502.299, Transportation Code, as follows:

(1) In Subsection (b)(2) (Committee Printing, page 1, lines 14-15), strike "pays the annual fee established by the department under Subsection (c)" and substitute "pays an annual fee of $30".

(2) Strike Subsection (c) (Committee Printing, page 1, lines 18-22) and substitute:

"(c) Of each fee collected under this section, the department shall deposit $25 to the credit of an account in the general revenue fund that may be appropriated only to Texas A&M University at Kingsville to provide financial assistance to graduate students in the College of Agriculture and Human Sciences. The remainder of the fee may be used only by the department to defray the cost of administering this section."

The amendment was read.

On motion of Senator Lucio, the Senate concurred in the House amendment to SB 754 by a viva voce vote.

SENATE BILL 562 WITH HOUSE AMENDMENT

Senator Duncan called SB 562 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 562 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to student center fees charged at Texas Tech University.

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

SECTION 1. Section 54.524(a), Education Code, is amended to read as follows:

(a) The board of regents of Texas Tech University may levy a regular fixed student fee not to exceed $50 per student for each semester of the long session and not to exceed $25 per student for each term of the summer session, or any fractional part thereof, as may in their discretion be just and necessary for the sole purpose of operating, maintaining, and improving the University Center. If approved by a majority vote of those students participating in a general election held at the university for that purpose, the maximum amount of the fee that may be charged at the university is increased to the amount stated on the ballot proposition, not to exceed $100 for each semester or term. Approval as required by this subsection of an increase in the maximum amount of the fee that may be charged does not affect the application of this subsection to an increase in the amount of the fee actually charged from one academic year to the next. The amount of the fee may be changed at any time within the limits specified by this subsection in order to provide sufficient funds to support the center, but any increase in the fee of more than 10 percent from one academic year to the next must be approved by a majority vote of those students participating in a general election called for that purpose or by a majority vote of the student government.

SECTION 2. This Act applies beginning with the 1999 fall semester.

SECTION 3. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public

necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

The amendment was read.

Senator Duncan moved to concur in the House amendment to SB 562.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 539 WITH HOUSE AMENDMENT

Senator Moncrief called SB 539 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 539 on page 1, line 18 by inserting the following after the word "agency":

"not to exceed $50 if transporting within the same county, and not to exceed the reasonable cost of transportation if transporting between counties."

The amendment was read.

On motion of Senator Moncrief, the Senate concurred in the House amendment to SB 539 by a viva voce vote.

SENATE BILL 456 WITH HOUSE AMENDMENTS

Senator Madla called SB 456 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Amendment

Amend SB 456 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to facilitating and supporting efforts of certain municipalities to promote economic development by hosting the Pan American Games and the Olympic Games; providing a penalty.

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

SECTION 1. DEFINITIONS. In this Act:

(1) "Department" means the Texas Department of Economic Development.

(2) "Endorsing municipality" means a municipality that has a population of 850,000 or more according to the most recent federal decennial census and that authorizes a bid by a local organizing committee for selection of the municipality as the site of the 2007 Pan American Games or the 2012 Olympic Games.

(3) "Games" means the 2007 Pan American Games or the 2012 Olympic Games.

(4) "Games support contract" means a joinder undertaking, a joinder agreement, or a similar contract executed by the department and containing terms permitted or required by this Act.

(5) "Joinder agreement" means an agreement entered into by:

(A) the department on behalf of this state and a site selection organization setting out representations and assurances by the state in connection with the selection of a site in this state for the location of any of the games; or

(B) an endorsing municipality and a site selection organization setting out representations and assurances by the endorsing municipality in connection with the selection of a site in this state for the location of any of the games.

(6) "Joinder undertaking" means an agreement entered into by:

(A) the department on behalf of this state and a site selection organization that the state will execute a joinder agreement in the event that the site selection organization selects a site in this state for any of the games; or

(B) an endorsing municipality and a site selection organization that the municipality will execute a joinder agreement in the event that the site selection organization selects a site in this state for any of the games.

(7) "Local organizing committee" means a nonprofit corporation or its successor in interest that:

(A) has been authorized by an endorsing municipality to pursue an application and bid on the applicant's behalf to a site selection organization for selection as the site of one of the games; or

(B) has executed an agreement with a site selection organization regarding a bid to host one of the games.

(8) "Site selection organization" means the United States Olympic Committee, the International Olympic Committee, or the Pan American Sports Organization.

SECTION 2. PURPOSE. The purpose of this Act is to provide assurances required by a site selection organization sponsoring the games.

SECTION 3. LEGISLATIVE FINDINGS. The conduct in this state of the 2007 Pan American Games or the 2012 Olympic Games will:

(1) provide invaluable public visibility throughout the world for this state and the communities where the games are held;

(2) encourage and provide major economic benefits to the communities where the games are held and to the entire state; and

(3) provide job creation opportunities for local and Texas businesses.

SECTION 4. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN AMERICAN GAMES TRUST FUND. (a) In this section:

(1) "Games" means the 2007 Pan American Games.

(2) "Site selection organization" means the United States Olympic Committee or the Pan American Sports Organization.

(b) If a site selection organization selects a site for the games in this state pursuant to an application by a local organizing committee, after the first occurrence of a measurable economic impact in this state as a result of the preparation for the games, as determined by the comptroller, but in no event later than one year before the scheduled opening event of the games, the comptroller shall determine for each subsequent calendar quarter, in accordance with procedures developed by the comptroller:

(1) the incremental increase in the receipts to the state from the taxes imposed within the endorsing municipality under Chapter 151, Tax Code, that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the games and related events; and

(2) the incremental increase in the receipts collected by the state on behalf of the endorsing municipality from the sales and use tax imposed by the endorsing municipality under Section 321.101(a), Tax Code, that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the games and related events.

(c) Subject to Section 6 of this Act, the comptroller shall retain, for the purpose of guaranteeing the joint obligations of the state and the endorsing municipality under a games support contract and this Act, the amount of municipal sales and use tax revenue determined under Subsection (b)(2) of this section from the amounts otherwise required to be sent to the municipality under Section 321.502, Tax Code, beginning with the first distribution of that tax revenue that occurs after the date the comptroller makes the determination of the amount of municipal sales and use tax revenue under Subsection (b)(2). The comptroller shall discontinue retaining municipal sales and use tax revenue under this subsection on the earlier of:

(1) the end of the third calendar month following the month in which the closing event of the games occurs; or

(2) the date the amount of municipal sales and use tax revenue and municipal hotel occupancy tax revenue in the Pan American Games trust fund equals 14 percent of the maximum amount of state and municipal tax revenue that may be deposited in the trust fund under Subsection (m) of this section.

(d) In addition to municipal sales and use tax revenue retained under Subsection (c) of this section, an endorsing municipality may guarantee its obligations under a games support contract and this Act by pledging surcharges from user fees, including parking or ticket fees, charged in connection with presentation of the games.

(e) Subject to Section 6 of this Act, the comptroller shall deposit the amount of state tax revenue determined under Subsection (b)(1) of this section and the amount of municipal sales and use tax revenue retained under Subsection (c) of this section into a trust fund designated as the Pan American Games trust fund. The trust fund is established outside the treasury but is held in trust by the comptroller for the administration of this Act. Money in the trust fund may be spent by the department without appropriation only as provided by this Act. The comptroller shall discontinue deposit of the amount of state tax revenue determined under Subsection (b)(1) of this section on the earlier of:

(1) the end of the third calendar month following the month in which the closing event of the games occurs; or

(2) the date the amount of state revenue in the Pan American Games trust fund equals 86 percent of the maximum amount of state and municipal tax revenue that may be deposited in the trust fund under Subsection (m) of this section.

(f) The endorsing municipality may deposit into the Pan American Games trust fund any amount of available revenue from the municipality's hotel occupancy tax imposed under Chapter 351, Tax Code. Deposit of that revenue into the trust fund is considered an authorized use of the revenue for purposes of Chapter 351, Tax Code. The comptroller shall credit any amount of municipal hotel occupancy tax revenue deposited by the endorsing municipality into the trust fund toward the amounts otherwise required to be retained under Subsection (c) of this section from the

municipality's sales and use tax revenue and shall reduce the amount of the municipality's sales and use tax revenue retained under Subsection (c) from the next distribution of that revenue to the municipality under Section 321.502, Tax Code.

(g) The department may use the funds in the Pan American Games trust fund only to fulfill joint obligations of the state and the endorsing municipality to a site selection organization under a games support contract or any other agreement providing assurances from the department or the endorsing municipality to a site selection organization.

(h) A local organizing committee shall provide information required by the comptroller to enable the comptroller to fulfill the comptroller's duties under this Act, including annual audited statements of the local organizing committee's financial records required by a site selection organization and data obtained by the local organizing committee relating to attendance at the games and to the economic impact of the games. A local organizing committee must provide an annual audited financial statement required by the comptroller not later than the end of the fourth month after the date the period covered by the financial statement ends.

(i) The comptroller shall provide an estimate before August 31, 1999, of the total amount of state and municipal tax revenue that would be deposited in the Pan American Games trust fund before January 1, 2008, if the games were to be held in this state at a site selected pursuant to an application by a local organizing committee. The comptroller shall provide the estimate on request to a local organizing committee. A local organizing committee may submit the comptroller's estimate to a site selection organization.

(j) The department may not make a disbursement from the Pan American Games trust fund unless the comptroller certifies that the disbursement is for a purpose for which the state and the endorsing municipality are jointly obligated under a games support contract or other agreement described by Subsection (g) of this section.

(k) If the comptroller certifies under Subsection (j) of this section that a disbursement may be made from the Pan American Games trust fund, the obligation shall be satisfied first out of municipal revenue deposited in the trust fund and any interest earned on that municipal revenue. If the municipal revenue is not sufficient to satisfy the entire deficit, state revenue deposited into the trust fund and any interest earned on that state revenue shall be used to satisfy the portion of the deficit not covered by the municipal revenue.

(l) On January 1, 2009, the comptroller shall transfer to the general revenue fund any money remaining in the Pan American Games trust fund, not to exceed the amount of state revenue remaining in the trust fund, plus any interest earned on that state revenue. The comptroller shall remit to the endorsing municipality any money remaining in the trust fund after the required amount is transferred to the general revenue fund.

(m) In no event may:

(1) the total amount of state and municipal tax revenue deposited in the Pan American Games trust fund exceed $20 million; or

(2) the joint liability of the state and the endorsing municipality under a joinder agreement and any other games support contracts entered into pursuant to this Act exceed $20 million.

SECTION 5. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; OLYMPIC GAMES TRUST FUND. (a) In this section:

(1) "Games" means the 2012 Olympic Games.

(2) "Site selection organization" means the United States Olympic Committee or the International Olympic Committee.

(b) If a site selection organization selects a site for the games in this state pursuant to an application by a local organizing committee, after the first occurrence of a measurable economic impact in this state as a result of the preparation for the games, as determined by the comptroller, but in no event later than one year before the scheduled opening event of the games, the comptroller shall determine for each subsequent calendar quarter, in accordance with procedures developed by the comptroller:

(1) the incremental increase in the receipts to the state from the taxes imposed within the endorsing municipality under Chapter 151, Tax Code, that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the games and related events; and

(2) the incremental increase in the receipts collected by the state on behalf of the endorsing municipality from the sales and use tax imposed by the endorsing municipality under Section 321.101(a), Tax Code, that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the games and related events.

(c) Subject to Section 6 of this Act, the comptroller shall retain, for the purpose of guaranteeing the joint obligations of the state and the endorsing municipality under a games support contract and this Act, the amount of municipal sales and use tax revenue determined under Subsection (b)(2) of this section from the amounts otherwise required to be sent to the municipality under Section 321.502, Tax Code, beginning with the first distribution of that tax revenue that occurs after the date the comptroller makes the determination of the amount of municipal sales and use tax revenue under Subsection (b)(2). The comptroller shall discontinue retaining municipal sales and use tax revenue under this subsection on the earlier of:

(1) the end of the third calendar month following the month in which the closing event of the games occurs; or

(2) the date the amount of municipal sales and use tax revenue in the Olympic Games trust fund equals 14 percent of the maximum amount of state and municipal tax revenue that may be deposited in the trust fund under Subsection (l) of this section.

(d) In addition to municipal sales and use tax revenue retained under Subsection (c) of this section, an endorsing municipality may guarantee its obligations under a games support contract and this Act by pledging surcharges from user fees, including parking or ticket fees, charged in connection with presentation of the games.

(e) Subject to Section 6 of this Act, the comptroller shall deposit the amount of state tax revenue determined under Subsection (b)(1) of this section and the amount of municipal sales and use tax revenue retained under Subsection (c) of this section into a trust fund designated as the Olympic Games trust fund. The trust fund is established outside the treasury but is held in trust by the comptroller for the administration of this Act. Money in the trust fund may be spent by the department without appropriation only as provided by this Act. The comptroller shall discontinue deposit of the amount of state tax revenue determined under Subsection (b)(1) of this section on the earlier of:

(1) the end of the third calendar month following the month in which the closing event of the games occurs; or

(2) the date the amount of state revenue in the Olympic Games trust fund equals 86 percent of the maximum amount of state and municipal tax revenue that may be deposited in the trust fund under Subsection (l) of this section.

(f) The department may use the funds in the Olympic Games trust fund only to fulfill joint obligations of the state and the endorsing municipality to a site selection organization under a games support contract or any other agreement providing assurances from the department or the endorsing municipality to a site selection organization.

(g) A local organizing committee shall provide information required by the comptroller to enable the comptroller to fulfill the comptroller's duties under this Act, including annual audited statements of the local organizing committee's financial records required by a site selection organization and data obtained by the local organizing committee relating to attendance at the games and to the economic impact of the games. A local organizing committee must provide an annual audited financial statement required by the comptroller not later than the end of the fourth month after the date the period covered by the financial statement ends.

(h) The comptroller shall provide an estimate before August 31, 2000, or as soon as practical after that date, of the total amount of state and municipal tax revenue that would be deposited in the Olympic Games trust fund if the games were to be held in this state at a site selected pursuant to an application by a local organizing committee. The comptroller shall provide the estimate on request to a local organizing committee. A local organizing committee may submit the comptroller's estimate to a site selection organization.

(i) The department may not make a disbursement from the Olympic Games trust fund unless the comptroller certifies that the disbursement is for a purpose for which the state and the endorsing municipality are jointly obligated under a games support contract or other agreement described by Subsection (f) of this section.

(j) If the comptroller certifies under Subsection (i) of this section that a disbursement may be made from the Olympic Games trust fund, the obligation shall be satisfied proportionately from the state and municipal revenue in the trust fund.

(k) Two years after the closing event of the games, the comptroller shall transfer to the general revenue fund any money remaining in the Olympic Games trust fund, not to exceed the amount of state revenue remaining in the trust fund, plus any interest earned on that state revenue. The comptroller shall remit to the endorsing municipality any money remaining in the trust fund after the required amount is transferred to the general revenue fund.

(l) In no event may:

(1) the total amount of state and municipal tax revenue deposited in the Olympic Games trust fund exceed $100 million; or

(2) the joint liability of the state and the endorsing municipality under a joinder agreement and any other games support contracts entered into pursuant to this Act exceed $100 million.

SECTION 6. MUNICIPAL ELECTION. (a) Except as provided by Subsection (b) of this section, an endorsing municipality must hold an election in the municipality to determine whether the municipality may contribute a portion of its sales and use taxes to the Pan American Games trust fund under Section 4 of this Act or to the Olympic Games trust fund under Section 5 of this Act, as applicable to the games for which the municipality has authorized a bid on its behalf. The election must be held on a uniform election date that occurs after the effective date of this Act and

before the date a site selection organization requires the endorsing municipality and the state to enter into a joinder undertaking relating to the applicable games.

(b) An endorsing municipality authorizing a bid on its behalf for the 2007 Pan American Games is not required to hold an election under this section if there is not a sufficient number of days between the effective date of this Act and a uniform election date that occurs before the date a site selection organization requires that the endorsing municipality and the state enter into a joinder undertaking to allow the municipality to submit the proposed election to the United States attorney general for preclearance under Section 5 of the Voting Rights Act of 1965, as amended (42 U.S.C. Section 1973c), at least 120 days before the election.

(c) If an endorsing municipality is required to hold an election under this section and the contribution of a portion of the municipality's sales and use taxes is not approved by a majority of the voters voting in the election:

(1) the comptroller may not retain the municipality's municipal sales and use tax revenue under Section 4(c) or 5(c) of this Act, as applicable, from amounts otherwise required to be sent to that municipality under Section 321.502, Tax Code, or deposit state tax revenue into the Pan American Games trust fund under Section 4(e) of this Act or the Olympic Games trust fund under Section 5(e) of this Act, as applicable;

(2) the comptroller is not required to determine the incremental increase in state and municipal tax revenue under Section 4(b) or 5(b) of this Act, as applicable; and

(3) the department may not enter into a games support contract relating to the games for which the municipality has authorized a bid on its behalf.

SECTION 7. ASSISTANCE OF DEPARTMENT AND OTHER STATE AGENCIES. (a) The department shall review requests from a local organizing committee that the department, on behalf of the state, enter into a games support contract that is required by a site selection organization in connection with the committee's bid to host any of the games.

(b) A request made under Subsection (a) of this section must be accompanied by:

(1) a general description and summary of the games for which a site selection is sought by the local organizing committee;

(2) a preliminary and general description of the proposal the local organizing committee intends to submit to a site selection organization;

(3) the estimated cost of preparing and submitting the intended proposal;

(4) the local organizing committee's intended method of obtaining the funds needed for the purpose of preparing the proposal;

(5) a description by type and approximate amount of the site selection application costs that the local organizing committee intends to pay; and

(6) any other information reasonably requested by the department to assist it in reviewing the request.

(c) The department shall approve or deny a request made under Subsection (a) of this section not later than the 30th day after the date the request is submitted.

(d) The department may agree in a joinder undertaking entered into with a site selection organization that the department will:

(1) execute a joinder agreement if the site selection organization selects a site in this state for the games; and

(2) refrain from taking any action after the execution of the joinder undertaking that would impair its ability to execute the joinder agreement.

(e) The department may agree in a joinder agreement that the state will:

(1) provide or cause to be provided all of the governmental funding, facilities, and other resources specified in the local organizing committee's bid to host the games;

(2) be bound by the terms of, cause the local organizing committee to perform, and guarantee performance of the local organizing committee's obligations under contracts relating to selecting a site in this state for the games; and

(3) be jointly liable with the local organizing committee for:

(A) obligations of the local organizing committee to a site selection organization, including obligations indemnifying the site selection organization against claims of and liabilities to third parties arising out of or relating to the games; and

(B) any financial deficit relating to the games.

(f) The department may agree to execute a joinder undertaking, a joinder agreement, or other games support contract only if:

(1) the department determines that:

(A) the state's assurances and obligations under the undertaking, agreement, or contract are reasonable; and

(B) any financial commitments of the state will be satisfied exclusively by recourse to the Pan American Games trust fund or the Olympic Games trust fund, as applicable; and

(2) the endorsing municipality has executed an agreement with a site selection organization that contains substantially similar terms.

(g) Before executing a games support contract, the department must execute an agreement with the applicable local organizing committee requiring that if a site selection organization selects a site for the games in this state pursuant to an application by the local organizing committee, the local organizing committee will repay the state any funds expended by the department under this Act from any surplus of the local organizing committee's funds remaining after the presentation of the games and after the payment of the expenses and obligations incurred by the local organizing committee.

(h) A games support contract may contain any additional provisions the department requires in order to carry out the purposes of this Act.

(i) The department may require a local organizing committee to list the state as an additional insured on any policy of insurance purchased by the local organizing committee and required by a site selection organization to be in effect in connection with the games.

(j) The Texas Department of Transportation, the Texas Department of Public Safety, and the Texas Department of Housing and Community Affairs may:

(1) assist a local organizing committee in developing applications and planning for the games; and

(2) enter into contracts, agreements, or assurances related to the presentation of the games.

(k) Notwithstanding any other provision of this Act, the department may not obligate the state to pay or otherwise provide funds to cover the costs of the construction or purchase of a building or other facility by a municipality.

SECTION 8. APPLICATION OF OPEN MEETINGS AND OPEN RECORDS LAWS. (a) A local organizing committee and its governing body are subject to Chapters 551 and 552, Government Code. For purposes of those chapters, the

governing body of a local organizing committee is considered a governmental body as defined by those chapters. For purposes of Chapter 552, Government Code, the records and information of a local organizing committee are considered public records and public information.

(b) A final bid that is submitted by a local organizing committee to a site selection organization, or a draft of that bid, is excepted from required public disclosure under Chapter 552, Government Code, until the applicable site selection organization selects the site for the applicable games.

(c) Chapter 551, Government Code, does not apply to a meeting of a subcommittee of the governing body of a local organizing committee if:

(1) the subcommittee consists of not more than five members;

(2) the meeting is not held in a public building;

(3) the subcommittee makes a tape recording of the proceedings of the meeting in compliance with Section 551.103, Government Code, and the local organizing committee preserves the tape recording for two years from the date the recording is made;

(4) the subcommittee does not discuss or decide any financial matters during the meeting; and

(5) any decision made by the subcommittee will not become effective without being reviewed and officially adopted by the governing body of the local organizing committee at a meeting held in compliance with Chapter 551, Government Code.

(d) A tape recording made under Subsection (c) of this section is subject to required public disclosure in the manner prescribed by Chapter 552, Government Code, for a public record.

SECTION 9. TAX EXEMPTIONS FOR LOCAL ORGANIZING COMMITTEE. (a) A local organizing committee that is exempt from paying federal income tax under Section 501(c), Internal Revenue Code of 1986, as amended, is exempt from:

(1) the sales, excise, and use taxes imposed under Chapter 151, Tax Code;

(2) taxes on the sale, rental, or use of a motor vehicle imposed under Chapter 152, Tax Code;

(3) the hotel occupancy tax imposed under Chapter 156, Tax Code; and

(4) the franchise tax imposed under Chapter 171, Tax Code.

(b) The exemptions provided by Subsections (a)(1), (2), and (3) of this section take effect on the first day of the first month after the effective date of this Act. The exemption provided by Subsection (a)(4) of this section applies only to a tax imposed under Chapter 171, Tax Code, that becomes due on or after the effective date of this Act.

SECTION 10. ETHICS. (a) A local organizing committee that submits a request under Section 7(a) of this Act must:

(1) affirm as a part of that request that it is fully in compliance with the ethical guidelines set forth in all contracts entered into and rules adopted by the applicable site selection organization, including the site selection organization's requirements regarding disclosure of any financial interest by a director, officer, or senior-level employee of the local organizing committee in any proposed transaction with the local organizing committee;

(2) not later than the 15th day of the first month following each calendar quarter, file with the secretary of the endorsing municipality for which the local organizing committee submits a request:

(A) a certification that the local organizing committee continues to be in compliance with the ethical guidelines described by Subdivision (1) of this subsection; and

(B) a report of contributions to and expenditures by the local organizing committee in the manner described by Subsection (b) of this section; and

(3) file with the secretary of the endorsing municipality on April 15 of each year a copy of each financial statement required to be submitted by a local organizing committee or a member of a local organizing committee to the United States Olympic Committee during the preceding calendar year.

(b) A report made under Subsection (a)(2)(B) of this section must include:

(1) for each contribution made to a local organizing committee:

(A) the contributor's full name and address;

(B) the date of the contribution;

(C) whether the contribution is cash, made by check, or in-kind; and

(D) the amount or market value of the contribution; and

(2) for each expenditure made by a local organizing committee:

(A) the full name and address of the person who receives payment of the expenditure;

(B) the date of the expenditure;

(C) the purpose of the expenditure; and

(D) the amount of the expenditure.

(c) The endorsing municipality for which a local organizing committee submits a request under Section 7(a) of this Act must have a comprehensive ethics code establishing standards of conduct, disclosure requirements, and enforcement mechanisms relating to city officials and employees before the department may consider the request.

SECTION 11. BRIBERY. (a) A person commits an offense if the person intentionally or knowingly offers, confers, or agrees to confer on another person, or solicits, accepts, or agrees to accept from another person, any benefit as consideration for the recipient's decision, opinion, recommendation, vote, or other exercise of discretion as a member or employee of a local organizing committee or site selection organization.

(b) It is a defense to prosecution under Subsection (a) of this section that the benefit conferred is a meal or entertainment reported under Section 10(a)(2)(B) of this Act.

(c) It is not a defense to prosecution under Subsection (a) of this section that a person whom the actor sought to influence was not qualified to act as the actor intended the person to act.

(d) It is not a defense to prosecution under Subsection (a) of this section that the benefit is not offered or conferred or that the benefit is not solicited or accepted until after:

(1) the decision, opinion, recommendation, vote, or other exercise of discretion has occurred; or

(2) the person whom the actor sought to influence is no longer a member of the local organizing committee or a site selection organization.

(e) In this section, "benefit" has the meaning assigned by Section 36.01, Penal Code.

(f) An offense under this section is a felony of the second degree.

SECTION 12. EMERGENCY. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

Floor Amendment No. 1

Amend CSSB 456 in Subsection (i) of SECTION 4 of the bill (page 6, line 27, through page 7, line 1, house committee report), by striking "before August 31, 1999" and substituting "not later than September 1, 1999".

Floor Amendment No. 2

Amend CSSB 456 by striking Subdivision (3) of Section 3 of the bill (page 3, lines 11-12, house committee printing) and substituting the following:

(3) provide opportunities for the creation of jobs by local and Texas businesses that pay a living wage.

Floor Amendment No. 3

Amend CSSB 456 in Subsection (i) of SECTION 5 of the bill by adding the following at the end of the subsection after the period (page 11, line 22, house committee printing):

A disbursement may not be made from the trust fund that the department determines would be used for the purpose of soliciting the relocation of a professional sports franchise located in this state.

Floor Amendment No. 4

Amend CSSB 456 as follows:

(1) Strike Subdivision (7) of SECTION 1 of the bill (House committee report, page 2, lines 16-23) and substitute the following:

(7) "Local organizing committee" means a nonprofit corporation or its successor in interest that:

(A) has been authorized by an endorsing municipality to pursue an application and bid on the applicant's behalf to a site selection organization for selection as the site of one of the games; or

(B) with the authorization of an endorsing municipality, has executed an agreement with a site selection organization regarding a bid to host one of the games.

(2) Strike Subsection (b) of SECTION 4 of the bill (House committee report, page 3, line 18 through page 4, line 9) and substitute the following:

(b) If a site selection organization selects a site for the games in this state pursuant to an application by a local organizing committee, after the first occurrence of a measurable economic impact in this state as a result of the preparation for the games, as determined by the comptroller, but in no event later than one year before the scheduled opening event of the games, the comptroller shall determine for each subsequent calendar quarter, in accordance with procedures developed by the comptroller:

(1) the incremental increase in the receipts to the state from the taxes imposed under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5, Alcoholic Beverage Code, within the market areas designated under Subsection (c) of this section, that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the games and related events;

(2) the incremental increase in the receipts collected by the state on behalf of the endorsing municipality from the sales and use tax imposed by the endorsing municipality under Section 321.101(a), Tax Code, that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the games and related events; and

(3) the incremental increase in the receipts collected by the endorsing municipality from the municipality's hotel occupancy tax imposed under Chapter 351, Tax Code, that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the games and related events.

(3) In SECTION 4 of the bill (House committee report, page 4, between lines 9 and 10), insert a new Subsection (c) to read as follows and reletter existing subsections of SECTION 4 of the bill appropriately:

(c) For the purposes of Subsection (b)(1) of this section, the comptroller shall designate as a market area for the games each area in which the comptroller determines there is a reasonable likelihood of measurable economic impact directly attributable to the preparation for and presentation of the games and related events, including areas likely to provide venues, accommodations, and services in connection with the games based on the proposal provided by the local organizing committee under Section 7 of this Act. The comptroller shall determine the geographic boundaries of each market area. The endorsing municipality that has been selected as the site for the games must be included in a market area for the games.

(4) Strike existing Subsections (e) and (f) of SECTION 4 of the bill (House committee report, page 5, line 8 through page 6, line 10) and substitute the following:

(f) Subject to Section 6 of this Act and Subsection (m) of this section, the comptroller shall deposit into a trust fund designated as the Pan American Games trust fund the amount of municipal sales and use tax revenue retained under Subsection (d) of this section and, at the same time, a portion of the state tax revenue determined under Subsection (b)(1) of this section in an amount equal to 6.25 times the amount of that municipal sales and use tax revenue. Subject to Section 6 of this Act and Subsection (m) of this section, the endorsing municipality shall deposit into the trust fund the amount of the endorsing municipality's hotel occupancy tax revenue determined under Subsection (b)(3) of this section. The endorsing municipality shall deposit that hotel occupancy tax revenue into the trust fund at least quarterly. When the endorsing municipality makes a deposit of its hotel occupancy tax revenue, the comptroller shall deposit at the same time a portion of the state tax revenue determined under Subsection (b)(1) of this section in an amount equal to 6.25 times the amount of that municipal hotel occupancy tax revenue. The Pan American Games trust fund is established outside the treasury but is held in trust by the comptroller for the administration of this Act. Money in the trust fund may be spent by the department without appropriation only as provided by this Act. The comptroller shall discontinue depositing into the trust fund any state tax revenue determined under Subsection (b)(1) of this section on the earlier of:

(1) the end of the third calendar month following the month in which the closing event of the games occurs; or

(2) the date on which the amount of state revenue in the Pan American Games trust fund equals 86 percent of the maximum amount of state and municipal tax revenue that may be deposited in the trust fund under Subsection (m) of this section.

(5) Strike Subsection (m) of SECTION 4 of the bill (House committee report, page 8, lines 2-8) and substitute the following:

(m) In no event may:

(1) the total amount of state and municipal tax revenue deposited in the Pan American Games trust fund exceed $20 million; or

(2) the joint liability of the state and the endorsing municipality under a joinder agreement and any other games support contracts entered into pursuant to this Act exceed the lesser of:

(A) $20 million; or

(B) the total amount of revenue deposited in the Pan American Games trust fund and interest earned on the fund.

(6) In SECTION 4 of the bill (House committee report, page 5, line 3), strike the reference to Subsection (c) of that section and substitute a reference to Subsection (d).

(7) In SECTION 5(b) of the bill (House committee report, page 8, lines 22-26), strike Subdivision (1) and substitute the following:

(1) the incremental increase in the receipts to the state from the taxes imposed under Chapter 151, Tax Code, within the market areas designated under Subsection (c) of this section, that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the games and related events; and

(8) In SECTION 5 of the bill (House committee report, page 9, between lines 5 and 6), insert a new Subsection (c) to read as follows and reletter the existing subsections of SECTION 5 of the bill appropriately:

(c) For the purposes of Subsection (b)(1) of this section, the comptroller shall designate as a market area for the games each area in which the comptroller determines there is a reasonable likelihood of measurable economic impact directly attributable to the preparation for and presentation of the games and related events, including areas likely to provide venues, accommodations, and services in connection with the games based on the proposal provided by the local organizing committee under Section 7 of this Act. The comptroller shall determine the geographic boundaries of each market area. The endorsing municipality that has been selected as the site for the games must be included in a market area for the games.

(9) Strike the first sentence of existing Subsection (e) of SECTION 5 of the bill (House committee report, page 10, lines 3-7) and substitute the following:

Subject to Section 6 of this Act and Subsection (m) of this section, the comptroller shall deposit into a trust fund designated as the Pan American Games trust fund the amount of municipal sales and use tax revenue retained under Subsection (d) of this section and, at the same time, a portion of the state tax revenue determined under Subsection (b)(1) of this section in an amount equal to 6.25 times the amount of that municipal sales and use tax revenue.

(10) Strike Subsection (l) of SECTION 5 of the bill (House committee report, page 12, lines 7-13) and substitute the following:

(m) In no event may:

(1) the total amount of state and municipal tax revenue deposited in the Olympic Games trust fund exceed $100 million; or

(2) the joint liability of the state and the endorsing municipality under a joinder agreement and any other games support contracts entered into pursuant to this Act exceed the lesser of:

(A) $100 million; or

(B) the total amount of revenue deposited in the Olympic Games trust fund and interest earned on the fund.

(11) In SECTION 5 of the bill:

(A) strike the reference to Subsection (c) of that section and substitute a reference to Subsection (d) (House committee report, page 9, line 25);

(B) strike the reference to Subsection (f) of that section and substitute a reference to Subsection (g) (House committee report, page 11, line 22);

(C) strike the reference to Subsection (i) of that section and substitute a reference to Subsection (j) (House committee report, page 11, line 23); and

(D) strike each reference to Subsection (l) of that section and substitute a reference to Subsection (m) (House committee report, page 9, line 23 and page 10, line 19).

(12) In SECTION 6(a) of the bill (House committee report, page 12, lines 16-19), strike "to determine whether the municipality may contribute a portion of its sales and use taxes to the Pan American Games trust fund under Section 4 of this Act or to the Olympic Games trust fund under Section 5 of this Act" and substitute "to determine whether the municipality may contribute a portion of its sales and use taxes and hotel occupancy taxes to the Pan American Games trust fund under Section 4 of this Act or a portion of its sales and use taxes to the Olympic Games trust fund under Section 5 of this Act".

(13) Strike Subsection (c) of SECTION 6 of the bill (House committee report, page 13, lines 10-26) and substitute the following:

(c) If an endorsing municipality is required to hold an election under this section and the contribution of a portion of the municipality's taxes to the Pan American Games trust fund or Olympic Games trust fund, as applicable to the games for which the endorsing municipality authorized a site selection bid on its behalf, is not approved by a majority of the voters voting in the election:

(1) the comptroller may not establish the Pan American Games trust fund under Section 4 of this Act or the Olympic Games trust fund under Section 5 of this Act, as applicable, may not retain the municipality's municipal sales and use tax revenue under Section 4(d) or 5(d) of this Act, as applicable, from amounts otherwise required to be sent to that municipality under Section 321.502, Tax Code, and may not deposit any state tax revenue into the trust fund;

(2) the comptroller is not required to determine the incremental increase in state and municipal tax revenue under Section 4(b) or 5(b) of this Act, as applicable; and

(3) the department may not enter into a games support contract relating to the games for which the municipality has authorized a bid on its behalf.

Floor Amendment No. 5

Amend Floor Amendment No. 4 to CSSB 456 on page 5, line 14, by striking "Pan American Games trust fund" and substituting "Olympic Games trust fund".

The amendments were read.

Senator Madla moved to concur in the House amendments to SB 456.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 1183 WITH HOUSE AMENDMENT

Senator Haywood called SB 1183 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer, Senator Brown in Chair, laid the bill and the House amendment before the Senate.

Amendment

Amend SB 1183 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to providing financial incentives to veterinary college students and graduates who agree to practice in a rural county.

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

SECTION 1. Chapter 88, Education Code, is amended by adding Subchapter I to read as follows:

SUBCHAPTER I. RURAL VETERINARIAN INCENTIVE PROGRAM

Sec. 88.621. DEFINITIONS. In this subchapter:

(1) "College" means The Texas A&M University College of Veterinary Medicine.

(2) "Committee" means the rural veterinarian incentive program committee.

(3) "Eligible participant" means a person eligible to participate in the program under Section 88.624.

(4) "Fund" means the rural veterinarian incentive fund.

(5) "Program" means the rural veterinarian incentive program established by this subchapter.

(6) "Rural county" means a county with a population of less than 50,000.

(7) "University" means Texas A&M University.

Sec. 88.622. ADMINISTRATION OF PROGRAM. The university shall administer the program in accordance with the rules adopted by the committee.

Sec. 88.623. RURAL VETERINARIAN INCENTIVE PROGRAM COMMITTEE; RULES. (a) The rural veterinarian incentive program committee consists of:

(1) the executive director of the Texas Animal Health Commission, or the executive director's designee;

(2) the executive director of the State Board of Veterinary Medical Examiners, or the executive director's designee;

(3) the dean of the college;

(4) a veterinarian with a mixed animal practice appointed by the board of regents of The Texas A&M University System; and

(5) a veterinarian with a large animal practice appointed by the board of regents of The Texas A&M University System.

(b) The dean of the college serves as the presiding officer of the committee.

(c) An appointed member of the committee serves a term of two years.

(d) The committee shall adopt rules:

(1) establishing criteria to determine whether a person is an eligible participant as the committee considers reasonable, including the person's:

(A) minimum grade point average; and

(B) financial need;

(2) providing for the distribution of money from the fund for the program;

(3) establishing the criteria necessary for a community or political subdivision in a rural county to qualify as a student sponsor under Section 88.625;

(4) governing agreements of financial support between a rural sponsor and an eligible student; and

(5) establishing other procedures necessary to administer the program.

Sec. 88.624. ELIGIBLE VETERINARY STUDENT OR GRADUATE. A person is eligible to participate in the program only if the person:

(1) is enrolled as a student of the college or applies to participate in the program on or before the first anniversary of the date the person graduates from the college;

(2) will receive or has received from a student loan at least 50 percent of the funds for tuition and fees for one or more academic years while enrolled in the college; and

(3) meets any additional qualifications adopted by the committee.

Sec. 88.625. RURAL SPONSORS; AGREEMENT TO PROVIDE FINANCIAL SUPPORT. (a) A community or political subdivision located in a rural county that qualifies under the rules of the committee may become a sponsor of an eligible participant and may provide financial support to the eligible participant under the program.

(b) To participate as a sponsor in the program, the community or political subdivision must enter into an agreement with the eligible participant to provide financial support to the eligible participant in an amount not less than the tuition and fees required for a full academic year for a student enrolled in the college in exchange for the eligible participant's agreement to practice veterinary medicine in the sponsoring community or political subdivision.

(c) Financial support under this section:

(1) may be provided in whole or part by a grant, scholarship, or funds provided by a private foundation; and

(2) shall be deposited in the fund for distribution to the eligible participant by the university.

Sec. 88.626. FINANCIAL SUPPORT; COMMITMENT TO PRACTICE IN RURAL COUNTY. (a) To participate in the program, an eligible participant must enter into an agreement with the university to practice veterinary medicine in a rural county for one calendar year for each academic year for which the student receives financial support under the program.

(b) The financial support received by an eligible participant under this subchapter must be used to retire student loan debt or to pay tuition and fees to the university while the eligible participant is enrolled in the college.

(c) Financial support from the fund shall be awarded in the form of grants.

Sec. 88.627. RURAL VETERINARIAN INCENTIVE FUND. (a) The rural veterinarian incentive fund is a special fund in the state treasury outside the general revenue fund.

(b) The fund consists of legislative appropriations for purposes of the program, gifts, grants, donations, the market value of in-kind contributions, and other sources of revenue deposited to the credit of the fund by the university.

(c) The fund shall be administered by the university in accordance with rules adopted by the committee. The university may use a portion of the money deposited to the credit of the fund, not to exceed 10 percent of that amount, for the administration of the program.

SECTION 2. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator Haywood, the Senate concurred in the House amendment to SB 1183 by a viva voce vote.

(Senator West in Chair)

SENATE BILL 873 WITH HOUSE AMENDMENTS

Senator Brown called SB 873 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Floor Amendment No. 1

Amend SB 873 as follows:

On page 13, line 4, add new SECTION 10 to the bill to read as follows:

SECTION 10. Subchapter B, Chapter 26, Water Code, is amended by adding Section 26.0292 to read as follows:

Sec. 26.0292. FEES CHARGED TO AQUACULTURE FACILITIES. (a) "Aquaculture facility" means a facility engaged in aquaculture as defined in Section 134.001, Agriculture Code.

(b) Notwithstanding Sections 26.0135 and 26.0291 of this code, the combined fees charged to an aquaculture facility under those sections may not total more than five thousand dollars in any year.

(c) The commission by rule shall provide that among aquaculture facilities, the fees charged under this section are reasonably assessed according to the pollutant load of the facility.

Floor Amendment No. 2

Amend SB 873 in SECTION 2 of the bill, immediately after proposed Subsection (c), Section 134.013, Agriculture Code, by adding a new Subsection (d) to read as follows:

(d) In coordination with the department and the Parks and Wildlife Department, the Texas Natural Resource Conservation Commission shall establish guidelines relating to the report required by Subsection (b) that:

(1) give public notice as to what the reporting requirements include; and

(2) minimize duplication of reporting requirements and other requirements related to the application for a wastewater discharge permit.

Floor Amendment No. 3

Amend SB 873 in SECTION 6 of the bill by adding Subsections (g) and (h) to Section 134.031, Agriculture Code, as added by the bill, to read as follows:

(g) In developing the guidelines under Subsection (d) applicable to aquaculture facilities engaged in the production of shrimp in the coastal zone, the Parks and Wildlife Department, in consultation with the Texas Natural Resource Conservation Commission, shall consider the best management practices that the facilities

developed under the direction of the Texas Natural Resource Conservation Commission.

(h) In the development of siting guidelines for aquaculture facilities engaged in the production of shrimp in the coastal zone, the best management practices developed by the facilities shall be considered.

Floor Amendment No. 4

Amend SB 873 in SECTION 2 of the bill, in amended Section 134.013, Agriculture Code, by striking Subsection (a)(2) as added by the bill and substituting the following:

(2) must provide the report described in Subsection (b) and is subject to the review described in Section 134.031(c) if the aquaculture facility applies for a site-specific discharge permit.

Floor Amendment No. 5

Amend SB 873 in SECTION 7 of the bill, in amended Section 66.007, Parks and Wildlife Code, by striking Subsections (j) and (k) as added by the bill and substituting the following:

(j) Except as provided in Subsection (k), an operator of an aquaculture facility under quarantine condition may not discharge waste or another substance from the facility except with approval of the department and a wastewater discharge authorization from the Texas Natural Resource Conservation Commission.

(k) Even if under quarantine condition, an aquaculture facility shall discharge wastewater or another substance as necessary to comply with an emergency plan that has been submitted to and approved by the department and incorporated into a wastewater discharge authorization issued by the Texas Natural Resource Conservation Commission.

The amendments were read.

On motion of Senator Brown, the Senate concurred in the House amendments to SB 873 by a viva voce vote.

SENATE RESOLUTION 1139

Senator Bernsen offered the following resolution:

WHEREAS, The Senate of the State of Texas is proud to recognize the winners of the 1998-1999 Keep Texas Beautiful Governor's Community Achievement Awards; and

WHEREAS, The winners in the nine different population categories are: Austin, Waco, Nacogdoches, Lufkin, Greenville, Taylor, Whitehouse, Muenster, and Quintana; and

WHEREAS, The first-place cities were among a group of 54 entrants and 69 applicants from the various population groups; the winners will share $1 million in landscaping projects awarded by the Texas Department of Transportation; and

WHEREAS, Co-sponsor of the Governor's Awards, the Texas Department of Transportation has participated in the program since 1985; the program has been supported by the Governor of Texas since 1967; and

WHEREAS, Recognizing communities for their grassroots endeavors in beautification, this awards program encourages local environmental improvement

through litter prevention, solid waste management, recycling, public education, and litter law enforcement; and

WHEREAS, The awards will be presented and all applicant communities will be recognized at a luncheon to be held July 2, 1999, during the 32nd Annual Keep Texas Beautiful Convention in Austin; now, therefore, be it

RESOLVED, That the Senate of the State of Texas, 76th Legislature, hereby congratulate the cities of Austin, Waco, Nacogdoches, Lufkin, Greenville, Taylor, Whitehouse, Muenster, and Quintana for winning the 1998-1999 Keep Texas Beautiful Awards; and, be it further

RESOLVED, That a copy of this Resolution be prepared as an expression of high regard and esteem from the Texas Senate.

The resolution was read.

On motion of Senator Truan and by unanimous consent, the names of the Lieutenant Governor and Senators were added to the resolution as signers thereof.

On motion of Senator Bernsen, the resolution was adopted by a viva voce vote.

GUESTS PRESENTED

Senator Bernsen was recognized and introduced to the Senate representatives of the cities that won the 1998-1999 Keep Texas Beautiful Governor's Community Achievement Awards.

The Senate welcomed its guests.

MOTION TO RECESS

On motion of Senator Truan, the Senate at 12:04 p.m. agreed to recess, upon receipt of Messages from the House, until 2:00 p.m. today.

MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 28, 1999

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS PASSED THE FOLLOWING MEASURES:

HCR 286, Honoring the men and women who provided assistance and aid during the 1998 Del Rio flood.

SCR 26, Commending the Texas Federation of Republican Women.

SCR 58, Congratulating the Atlanta Independent School District.

SCR 61, Congratulating Dr. George Anderson Hurst of Tyler.

SCR 71, Recognizing November, 1999, as Pancreatic Cancer Awareness Month.

SCR 74, In memory of W. Tip Hall.

SCR 86, Honoring the life of Officer Troy Alan Blando.

THE HOUSE HAS CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 247 (134 ayes, 4 nays, 2 present, not voting)

HB 772 (120 ayes, 13 nays, 2 present, not voting)

HB 2125 (Viva-voce vote)

HB 2794 (Viva-voce vote)

HB 3009 (Viva-voce vote)

HB 3174 (Viva-voce vote)

THE HOUSE HAS REFUSED TO CONCUR IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES AND REQUESTS THE APPOINTMENT OF A CONFERENCE COMMITTEE TO ADJUST THE DIFFERENCES BETWEEN THE TWO HOUSES:

HB 932

House Conferees: Hawley - Chair/Alexander/Edwards/Noriega/Uher

HB 1059

House Conferees: Keel - Chair/Clark/Gutierrez/Siebert/Turner, Bob

HB 2553

House Conferees: Hochberg - Chair/Dunnam/Lengefeld/Olivo/Smith

THE HOUSE HAS ADOPTED THE FOLLOWING CONFERENCE COMMITTEE REPORTS:

HB 610 (Viva-voce vote)

HB 1620 (Viva-voce vote)

HB 1865 (Viva-voce vote)

HB 2599 (Viva-voce vote)

HB 2684 (142 ayes, 0 nays, 3 present, not voting)

HB 3182 (Viva-voce vote)

SB 177 (Viva-voce vote)

THE HOUSE HAS DISCHARGED ITS CONFEREES AND CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 1172 (Viva-voce vote)

Respectfully,

/s/Sharon Carter, Chief Clerk

House of Representatives

RECESS

Pursuant to a previously adopted motion, the Senate at 12:36 p.m. recessed until 2:00 p.m. today.

AFTER RECESS

The Senate met at 2:00 p.m. and was called to order by the President.

CONFERENCE COMMITTEE ON HOUSE BILL 3697

Senator Sibley called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3697 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 3697 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Sibley, Chair; Fraser, Armbrister, Ratliff, and Cain.

CONFERENCE COMMITTEE ON HOUSE BILL 2748

Senator Sibley called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 2748 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 2748 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Sibley, Chair; Madla, Jackson, Cain, and Nelson.

CONFERENCE COMMITTEE ON HOUSE BILL 1498

Senator Sibley called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1498 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 1498 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Sibley, Chair; Madla, Ogden, Jackson, and Nelson.

SENATE BILL 1775 WITH HOUSE AMENDMENT

Senator Sibley called SB 1775 from the President's table for consideration of the House amendment to the bill.

The President laid the bill and the House amendment before the Senate.

Amendment

Amend SB 1775 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of certain providers of service contracts; providing penalties.

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

SECTION 1. SECTION 1. Title 132, Revised Statutes, is amended by adding Article 9034 to read as follows:

Art. 9034. REGULATION OF CERTAIN SERVICE CONTRACT PROVIDERS

Sec. 1. SHORT TITLE. This article may be cited as the "Service Contract Regulatory Act."

Sec. 2. DEFINITIONS. In this article:

(1) "Administrator" means the person responsible for the administration of a service contract or service contract plan. The term includes a person responsible for any filings required by this article.

(2) "Commissioner" means the commissioner of licensing and regulation.

(3) "Commission" means the Texas Commission of Licensing and Regulation.

(4) "Consumer" means an individual who buys, other than for purposes of resale, any tangible personal property that is:

(A) distributed in commerce; and

(B) normally used for personal, family, or household purposes and not for business or research purposes.

(5) "Department" means the Texas Department of Licensing and Regulation.

(6) "Maintenance agreement" means an agreement of limited duration that provides only for scheduled maintenance.

(7) "Person" means an individual or a partnership, company, corporation, association, or other group, however organized.

(8) "Premium" means the consideration paid to an insurer for a reimbursement insurance policy.

(9) "Provider" means a person who is contractually obligated to the service contract holder under the terms of the service contract.

(10) "Provider fee" means the consideration paid for a service contract.

(11) "Reimbursement insurance policy" means a policy of insurance issued to a provider to:

(A) provide reimbursement to the provider under the terms of the insured service contracts issued or sold by the provider; or

(B) pay on behalf of the provider, in the event of the provider's nonperformance, all covered contractual obligations incurred by the provider under the terms of the insured service contracts issued or sold by the provider.

(12) "Service contract" means an agreement, entered into for a separately stated consideration and for a specified term, under which a provider agrees to repair, replace, or maintain a product, or provide indemnification for the repair, replacement, or maintenance of a product, for operational or structural failure caused by a defect in materials or workmanship or by normal wear. A service contract may additionally provide for incidental payment or indemnity under limited circumstances, including towing, rental, and emergency road service, or for the repair or replacement of a product for damage resulting from power surges or accidental damage incurred in handling the product.

(13) "Service contract holder" means a person who purchases or otherwise holds a service contract.

(14) "Warranty" means, in relation to a product or service, an undertaking that guarantees indemnity for defective parts, mechanical or electrical breakdown, labor costs, or other remedial measures, such as repair or replacement of the product or repetition of services, and that is:

(A) made solely by the manufacturer, importer, or seller of the product or services;

(B) made without payment of additional consideration;

(C) not negotiated or separated from the sale of the product or service; and

(D) incidental to the sale of the product or service.

Sec. 3. POWERS AND DUTIES OF COMMISSIONER. (a) The commissioner may adopt rules as necessary to implement this article.

(b) The commissioner may conduct investigations of providers, administrators, or other persons as necessary to enforce this article and protect service contract holders in this state. On request of the commissioner, a provider shall make the provider's records maintained under Section 9 of this article regarding service contracts sold by the provider available to the commissioner as necessary to enable the commissioner to reasonably determine compliance with this article.

Sec. 4. SERVICE CONTRACT PROVIDERS ADVISORY BOARD. (a) The service contract providers advisory board is an advisory body to the department. The advisory board shall advise:

(1) the commissioner in adopting rules and enforcing and administering this article; and

(2) the commission in setting fees.

(b) The advisory board is composed of six members appointed by the commissioner as follows:

(1) two members must be officers, directors, or employees of a provider of service contracts that have been approved by the commissioner;

(2) two members must be officers, directors, or employees of a retail outlet or other entity located in this state that provides to consumers service contracts approved by the commissioner for sale to consumers;

(3) one member must be an officer, director, or employee of an entity approved by the Texas Department of Insurance to sell reimbursement insurance policies; and

(4) one member must be a resident of this state who has, as a consumer, a service contract in force in this state at the time of the appointment that is issued by a provider registered under this article.

(c) A member of the advisory board serves a term of six years with terms expiring on February 1 of odd-numbered years.

(d) The commissioner shall designate one member of the advisory board to serve as presiding officer. The commissioner or the commissioner's designee shall serve as an ex officio nonvoting member of the advisory board. The commissioner shall fill any vacancy on the advisory board for the remainder of the unexpired term with an individual who represents the same interests with which the predecessor was identified.

(e) The advisory board shall meet at least every six months and may meet at other times at the call of the presiding officer. The advisory board shall meet at a location in this state designated by the advisory board.

(f) A decision of the advisory board is not effective unless it receives the affirmative vote of at least four members.

(g) The advisory board members serve without compensation. A member is entitled to reimbursement for actual and necessary expenses incurred in performing functions as a member of the advisory board, subject to any applicable limitation on reimbursement provided by the General Appropriations Act.

Sec. 5. REGISTRATION REQUIREMENTS; EXEMPTIONS. (a) A person may not operate as a provider of service contracts sold in this state unless the person is registered with the department. Except for this registration requirement, providers and service contract sellers, administrators, and other persons marketing, selling, or offering to sell service contracts are exempt from any licensing requirements of this state that relate to the activities regulated under this article.

(b) Each applicant for registration shall file a registration application with the commissioner in the form prescribed by the commissioner that includes evidence satisfactory to the commissioner of compliance with the financial security requirements adopted under Section 6 of this article.

(c) Each registered provider shall pay an annual registration fee not to exceed $2,000 as set by the commission to cover the costs of administrating this article. The commissioner shall develop a tiered fee structure under which registration fees are assessed on providers based on the number of service contracts sold within this state in the prior 12-month period. The information submitted to the commissioner under this section regarding the number of service contracts sold by a provider may only be used by the commissioner and the department in determining the tiered fee structure. Information concerning the number of service contracts sold by a provider that is submitted under this section is a trade secret and subject to Section 552.110, Government Code.

(d) The marketing, sale, offering for sale, issuance, making, proposing to make, and administration of service contracts are exempt from:

(1) the Insurance Code and other laws of this state regulating the business of insurance;

(2) Article 6573b, Revised Statutes; and

(3) Chapter 722, Transportation Code.

(e) The following contracts and agreements are specifically exempt from the application of this article and are only subject to other statutes and laws which specifically apply to them:

(1) warranties;

(2) maintenance agreements;

(3) service contracts sold or offered for sale to persons other than consumers;

(4) residential service contracts sold by entities licensed by the Texas Real Estate Commission under Article 6573b, Revised Statutes;

(5) agreements issued by automobile service clubs certified under Chapter 722, Transportation Code;

(6) service contracts sold by a motor vehicle dealer on vehicles sold by that dealer if the dealer is the provider and is licensed as a motor vehicle dealer pursuant to Subchapter D, Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil Statutes), and covers its obligations under the service contract with a reimbursement insurance policy as defined by Section 2(11) of this article; and

(7) contracts or agreements offered by local exchange telephone companies providing repair for inside telephone wiring for which the term does not exceed one

month and which the consumer can terminate before commencing a new term without liability except for payment of charges for the current term.

Sec. 6. FINANCIAL SECURITY REQUIREMENTS. (a) To ensure the faithful performance of a provider's obligations to its service contract holders, each provider shall comply with one of the following financial security requirements:

(1) insure its service contracts under a reimbursement insurance policy issued by an insurer authorized to transact insurance in this state or under a surplus lines insurance policy issued by an insurer eligible to place coverage in this state as regulated under Article 1.14-2, Insurance Code;

(2)(A) maintain a funded reserve account for its obligations under its service contracts issued and outstanding in this state. The reserves shall be not less than 40 percent of the gross consideration received from consumers, less claims paid, on the sale of the service contract for all in-force contracts. The reserve account shall be subject to examination and review by the commissioner; and

(B) place in trust with the commissioner a financial security deposit, having a value of not less than five percent of the gross consideration received from consumers, less claims paid, on the sale of the service contract for all service contracts issued and outstanding in this state, but not less than $25,000, and consisting of:

(i) a surety bond issued by an authorized surety;

(ii) securities of the type eligible for deposit by authorized insurers in this state;

(iii) a statutory deposit of cash or cash equivalents;

(iv) a letter of credit issued by a qualified financial institution; or

(v) another form of security prescribed by rules issued by the commissioner; or

(3)(A) maintain, or have its parent company maintain, a net worth or stockholders' equity of at least $100 million; and

(B) upon request, provide the commissioner a copy of the provider's or the provider's parent company's most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission within the last calendar year or, if the company does not file with the Securities and Exchange Commission, a copy of the provider's or the provider's parent company's audited financial statements showing a net worth of the provider or its parent company of at least $100 million. If the provider's parent company's Form 10-K, Form 20-F, or audited financial statements are filed to meet the provider's financial stability requirement, the parent company shall agree to guarantee the obligations of the provider relating to service contracts sold by the provider in this state.

(b) No other financial security requirements shall be required by the commissioner for service contract providers.

Sec. 7. REIMBURSEMENT INSURANCE POLICY. (a) In order for a provider to comply with Section 6 of this article through the use of a reimbursement insurance policy, such policy must state that:

(1) the insurer that issued the reimbursement insurance policy shall reimburse or pay on behalf of the provider any covered amounts the provider is legally obligated to pay or shall provide the service that the provider is legally obligated to perform according to the provider's contractual obligations under the insured service contract issued or sold by the provider; and

(2) if the covered service is not provided to a service contract holder within 60 days of proof of loss, payment shall be made directly from the reimbursement

insurer to the service contract holder or the reimbursement insurer shall provide the required service.

(b) An insurer that issues a reimbursement insurance policy under this article may not cancel the policy until the insurer delivers to the provider a written notice of cancellation that complies with the requirements adopted for those notices under Articles 21.49-2A and 21.49-2B, Insurance Code. The provider shall forward a copy of the cancellation notice to the commissioner not later than the 15th business day after the date the notice is delivered to the provider. The cancellation of a reimbursement insurance policy does not reduce the insurer's responsibility for service contracts issued by the provider and insured under the policy before the date of the cancellation.

(c) For purposes of this section, the provider is considered the agent of the insurer that issues the reimbursement insurance policy for purposes of obligating the insurer to service contract holders in accordance with the service contract and this article.

(d) This article does not prevent or limit the right of an insurer that issues a reimbursement insurance policy to seek indemnification or subrogation against a provider if the insurer pays or is obligated to pay a service contract holder any amount that the provider is obligated to pay under the terms of the service contract.

Sec. 8. GENERAL PROVIDER OPERATION REQUIREMENTS. (a) A provider may appoint an administrator or other designee to be responsible for any or all of the administration or sale of service contracts and for compliance with this article.

(b) A service contract may not be issued, sold, or offered for sale in this state unless the provider has provided to the service contract holder:

(1) a receipt for, or other written evidence of, the purchase of the service contract; and

(2) a copy of the service contract within a reasonable period after the date of purchase.

Sec. 9. PROVIDER RECORDS. (a) Each provider shall maintain accurate accounts, books, and other records regarding transactions regulated under this article. The provider's records must include:

(1) a copy of each unique form of service contract sold;

(2) the name and address of each service contract holder, if the name and address have been furnished by the contract holder;

(3) a list of the locations at which the provider's service contracts are marketed, sold, or offered for sale; and

(4) written claims files that contain at least the dates and descriptions of claims related to the service contracts.

(b) Except as provided by Subsection (d) of this section, each provider shall retain all records required to be maintained under Subsection (a) of this section at least until the first anniversary of the expiration date under the contract of the specified period of coverage.

(c) The records required to be maintained under this section may be maintained in an electronic medium or through other recordkeeping technology. If a record is maintained in a format other than hard copy, the provider must be able to reformat the record into legible hard copy at the request of the commissioner.

(d) A provider who discontinues business in this state shall maintain its records until the provider furnishes the commissioner with proof satisfactory to the commissioner that the provider has discharged all obligations to service contract holders in this state.

Sec. 10. REQUIRED DISCLOSURES. (a) Each service contract marketed, sold, offered for sale, issued, made, proposed to be made, or administered in this state shall be written, printed, or typed in clear, understandable language that is easy to read and shall disclose the applicable requirements set forth in this section.

(b) A service contract insured under a reimbursement insurance policy under Section 6(a) of this article must contain a statement substantially similar to the following: "Obligations of the provider under this service contract are insured under a service contract reimbursement insurance policy." The service contract shall state the name and address of the insurer and state that in the event covered service is not provided by the service contract provider within 60 days of proof of loss by the service contract holder, the service contract holder may apply for reimbursement directly to the service contract reimbursement insurance company.

(c) A service contract that is not insured under a reimbursement insurance policy must contain a statement substantially similar to the following: "Obligations of the provider under this service contract are backed by the full faith and credit of the provider."

(d) Each service contract shall state the name and address of the provider and shall identify any administrator, if different from the provider, the service contract seller, and the service contract holder, to the extent that the name of the service contract holder has been furnished by the service contract holder. The identities of those persons are not required to be preprinted on the service contract and may be added to the service contract at the time of sale.

(e) Each service contract must state the purchase price of the contract and the terms under which the contract is sold. The purchase price is not required to be preprinted on the service contract and may be negotiated at the time of sale with the service contract holder.

(f) Each service contract must state the terms, restrictions, or conditions governing cancellation of the service contract by either the provider or the service contract holder before the expiration date of the service contract. A provider shall mail a written notice of cancellation to the service contract holder at the last known address of the service contract holder contained in the records of the provider before the fifth day preceding the effective date of the cancellation. Prior notice is not required if the reason for cancellation is nonpayment of the provider fee, a material misrepresentation by the service contract holder to the provider, or a substantial breach of duties by the service contract holder relating to the covered product or its use. The notice must state the effective date of the cancellation and the reason for the cancellation.

(g) Each service contract must:

(1) state the amount of any deductible, if applicable;

(2) specify the products and services to be provided and any limitations, exceptions, or exclusions;

(3) specify any restrictions governing the transferability of the service contract;

(4) state the duties of the service contract holder, including any duty to protect against any further damage and any requirement to follow owner's manual instructions; and

(5) if applicable, state whether the service contract provides for or excludes consequential damages or preexisting conditions.

Sec. 11. VOIDING OF CONTRACT. (a) Each service contract shall require the provider to permit the service contract holder to return the service contract not later

than the 20th day after the date the service contract was mailed to the service contract holder or, if the service contract is delivered to the service contract holder at the time of sale, not later than the 10th day after the date of delivery. A service contract holder may void the service contract at a later time as permitted by the service contract.

(b) If a contract holder returns a service contract under Subsection (a) of this section and a claim has not been made under the service contract before its return to the provider, the service contract is void and the provider shall refund to the service contract holder or credit to the account of the service contract holder the full purchase price of the service contract. The right provided by this section to void the service contract is not transferable and applies only to the original service contract purchaser. If a service contract is voided under this section and the provider does not pay the refund or credit the service contract holder's account before the 46th day after the date of the return of the service contract to the provider, the provider is liable to the contract holder for a penalty in an amount not to exceed 10 percent of the amount outstanding per month.

Sec. 12. LIMITATIONS ON PROVIDER NAME. (a) A provider may not use:

(1) in its name the words insurance, casualty, surety, mutual, or any other words descriptive of the insurance, casualty, or surety business;

(2) a name deceptively similar to the name or description of any insurance or surety corporation; or

(3) a name deceptively similar to the name of any other provider.

(b) A provider may use the word "guaranty" or a similar word.

(c) This section does not apply to a provider that, before September 1, 1999, used a word prohibited under this section in its name, but that provider must include in each of its service contracts a statement in substantially the following form: "This agreement is not an insurance contract."

Sec. 13. PROHIBITED ACTS. (a) A provider, or a provider's representative, may not, in the provider's service contracts or literature:

(1) make, permit, or cause to be made any false or misleading statement; or

(2) deliberately omit a material statement that would be considered misleading if omitted.

(b) A person, including a bank, savings and loan association, lending institution, manufacturer, or seller of any product, may not require the purchase of a service contract as a condition of a loan or the sale of any property.

Sec. 14. ENFORCEMENT. (a) On a finding that a ground for disciplinary action exists under one or more provisions of this article, the commissioner may impose appropriate administrative sanctions, including an administrative penalty as provided by Article 9100, Revised Statutes. An administrative penalty imposed under this section may not exceed $500 per violation or $10,000 in the aggregate for all violations of a similar nature.

(b) A disciplinary action taken under this article is subject to Section 17(d), Article 9100, Revised Statutes.

(c) The commissioner may bring an action for injunctive proceedings under Section 18, Article 9100, Revised Statutes, for a threatened or existing violation of this article or the commissioner's orders or rules adopted under this article and may also bring an action for civil penalties as provided by that section. A civil penalty assessed under this subsection may not exceed $2,500 per violation or $50,000 in the aggregate for all violations of a similar nature.

(d) For purposes of Subsections (a) and (c) of this section, a violation is of a similar nature if the violation consists of the same or a similar course of conduct, action, or practice, regardless of the number of times the act, conduct, or practice determined to be a violation of this article occurred.

SECTION 2. Section 348.208, Finance Code, is amended by adding Subsection (c) to read as follows:

(c) Notwithstanding any other law, service contracts sold by a retail seller of a motor vehicle to a retail buyer are not subject to 1.14-1, Insurance Code.

SECTION 3. (a) Article 9034, Revised Statutes, as added by this Act, takes effect September 1, 1999, and applies only to a service contract entered into on or after January 1, 2000. A service contract entered into before that date and renewed after that date is not subject to that article.

(b) A person regulated under Article 9034, Revised Statutes, as added by this Act, is not required to comply with that article until January 1, 2000, but may implement the requirements of that article before January 1, 2000. The failure of a provider or other person to comply with that article or otherwise to administer a service contract plan in the manner required by that article before January 1, 2000, is not admissible in any court, arbitration, or alternative dispute resolution proceeding and may not otherwise be used to prove that the action of any person or the affected service contract was unlawful or otherwise improper.

SECTION 4. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator Sibley, the Senate concurred in the House amendment to SB 1775 by a viva voce vote.

SENATE BILL 371 RECOMMITTED

On motion of Senator Brown and by unanimous consent, the Conference Committee Report on SB 371 was recommitted to the conference committee.

CONFERENCE COMMITTEE ON HOUSE BILL 2815

Senator Brown called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 2815 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 2815 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Brown, Chair; Armbrister, Haywood, Lucio, and Bivins.

CONFERENCE COMMITTEE ON HOUSE BILL 918

Senator Wentworth called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 918 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 918 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Wentworth, Chair; Ellis, Brown, Harris, and Duncan.

CONFERENCE COMMITTEE ON HOUSE BILL 1833

Senator Lucio called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1833 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 1833 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Lucio, Chair; Brown, Madla, Ogden, and Sibley.

SENATE BILL 766 WITH HOUSE AMENDMENTS

Senator Brown called SB 766 from the President's table for consideration of the House amendments to the bill.

The President laid the bill and the House amendments before the Senate.

Amendment

Amend SB 766 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the issuance of certain permits for the emission of air contaminants.

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

SECTION 1. Section 382.003(9), Health and Safety Code, is amended to read as follows:

(9) "Modification of existing facility" means any physical change in, or change in the method of operation of, a facility in a manner that increases the amount of any air contaminant emitted by the facility into the atmosphere or that results in the emission of any air contaminant not previously emitted. The term does not include:

(A) insignificant increases in the amount of any air contaminant emitted that is authorized by one or more commission exemptions;

(B) insignificant increases at a permitted facility;

(C) maintenance or replacement of equipment components that do not increase or tend to increase the amount or change the characteristics of the air contaminants emitted into the atmosphere;

(D) an increase in the annual hours of operation unless the existing facility has received a preconstruction permit or has been exempted, pursuant to Section 382.057, from preconstruction permit requirements;

(E) a physical change in, or change in the method of operation of, a facility that does not result in a net increase in allowable emissions of any air contaminant and that does not result in the emission of any air contaminant not previously emitted, provided that the facility:

(i) has received a preconstruction permit or permit amendment or has been exempted pursuant to Section 382.057 from preconstruction permit requirements no earlier than 120 months before the change will occur; or

(ii) uses, regardless of whether the facility has received a permit, an air pollution control method that is at least as effective as the best available control technology, considering technical practicability and economic reasonableness, that the board required or would have required for a facility of the same class or type as a condition of issuing a permit or permit amendment 120 months before the change will occur;

(F) a physical change in, or change in the method of operation of, a facility where the change is within the scope of a flexible permit or a multiple plant permit; or

(G) a change in the method of operation of a natural gas processing, treating, or compression facility connected to or part of a natural gas gathering or transmission pipeline which does not result in an annual emission rate of a pollutant in excess of the volume emitted at the maximum designed capacity, provided that the facility is one for which:

(i) construction or operation started on or before September 1, 1971, and at which either no modification has occurred after September 1, 1971, or at which modifications have occurred only pursuant to standard exemptions; or

(ii) construction started after September 1, 1971, and before March 1, 1972, and which registered in accordance with Section 382.060 as that section existed prior to September 1, 1991.

SECTION 2. Sections 382.051(a) and (b), Health and Safety Code, are amended to read as follows:

(a) The commission may issue a permit:

(1) to construct a new facility or modify an existing facility that may emit air contaminants; [or ]

(2) to operate an existing facility under a voluntary emissions reduction permit; or

(3) to operate a federal source.

(b) To assist in fulfilling its authorization provided by Subsection (a), the commission may issue:

(1) special permits for certain facilities;

(2) a general permit [developed by rule ] for numerous similar sources subject to Section 382.054;

(3) a standard permit [developed by rule ] for [numerous ] similar facilities [subject to Section 382.0518 ];

(4) a permit by rule for types of facilities that will not significantly contribute air contaminants to the atmosphere;

(5) a single federal operating permit or preconstruction permit for multiple federal sources or facilities located at the same site;

(6) a multiple plant permit for existing facilities at multiple locations subject to Section 382.0518 or 382.0519; or

(7) [(5) ] other permits as necessary.

SECTION 3. Subchapter C, Chapter 382, Health and Safety Code, is amended by adding Section 382.05101 to read as follows:

Sec. 382.05101. DE MINIMIS AIR CONTAMINANTS. The commission may develop by rule the criteria to establish a de minimis level of air contaminants for facilities or groups of facilities below which a permit under Section 382.0518 or 382.0519, a standard permit under Section 382.05195, or a permit by rule under Section 382.05196 is not required.

SECTION 4. Sections 382.0511(a) and (c), Health and Safety Code, are amended to read as follows:

(a) The commission may consolidate into a single permit[:

[(1) ] any permits, special permits, standard permits, permits by rule, or exemptions for a facility or federal source [issued by the commission before December 1, 1991; or

[(2) any permit issued by the commission on or after December 1, 1991, with any permits, special permits, or exemptions issued or qualified for by that date ].

(c) The commission [by rule ] may authorize changes in a federal source to proceed before the owner or operator obtains a federal operating permit or revisions to a federal operating permit if the changes are de minimis under Section 382.05101 or the owner or operator has obtained a preconstruction permit or permit amendment required by Section 382.0518 or is operating under a standard permit under Section 382.05195, a permit by rule under Section 382.05196, or an exemption allowed under Section 382.057.

SECTION 5. Subchapter C, Chapter 382, Health and Safety Code, is amended by adding Sections 382.0519 and 382.05191-382.05196 to read as follows:

Sec. 382.0519. VOLUNTARY EMISSIONS REDUCTION PERMIT. (a) Before September 1, 2001, the owner or operator of an existing, unpermitted facility not subject to the requirement to obtain a permit under Section 382.0518(g) may apply for a permit to operate that facility under this section.

(b) The commission shall grant within a reasonable time a permit under this section if, from the information available to the commission, including information presented at any public hearing or through written comment, the commission finds that the facility will use an air pollution control method at least as beneficial as that described in Section 382.003(9)(E)(ii), considering the age and remaining useful life of the facility.

(c) If the commission finds that the emissions from the facility will contravene the standards under Subsection (b) or the intent of this chapter, including protection of the public's health and physical property, the commission may not grant the permit under this section.

(d) A person planning the modification of a facility previously permitted under this section must comply with Section 382.0518 before work is begun on the construction of the modification.

(e) A permit issued by the commission under this section may defer the implementation of the requirement of reductions in the emissions of certain air contaminants only if the applicant will make substantial emissions reductions in other specific air contaminants. The deferral shall be based on a prioritization of air contaminants by the commission as necessary to meet local, regional, and statewide air quality needs.

Sec. 382.05191. VOLUNTARY EMISSIONS REDUCTION PERMIT: NOTICE AND HEARING. (a) An applicant for a permit under Section 382.0519 shall publish notice of intent to obtain the permit in accordance with Section 382.056.

(b) The commission may authorize an applicant for a permit for a facility that constitutes or is part of a small business stationary source as defined in Section 382.0365(g)(2) to provide notice using an alternative means if the commission finds that the proposed method will result in equal or better communication with the public, considering the effectiveness of the notice in reaching potentially affected persons, cost, and consistency with federal requirements.

(c) The commission shall provide an opportunity for a public hearing and the submission of public comment and send notice of a decision on an application for a permit under Section 382.0519 in the same manner as provided by Sections 382.0561 and 382.0562.

(d) A person affected by a decision of the commission to issue or deny a voluntary emissions reduction permit may move for rehearing and is entitled to judicial review under Section 382.032.

Sec. 382.05192. VOLUNTARY EMISSIONS REDUCTION PERMITS: REVIEW AND RENEWAL. Review and renewal of permits issued under Section 382.0519 shall be conducted in accordance with Section 382.055.

Sec. 382.05193. EMISSIONS PERMITS THROUGH ENVIRONMENTAL MITIGATION PROJECT. (a) The commission may issue a permit under Section 382.0519 for a facility:

(1) that makes a good faith effort to make equipment improvements and emissions reductions necessary to meet the requirements of that section;

(2) that, in spite of the effort, cannot reduce the facility's emissions to the degree necessary for the issuance of the permit; and

(3) the owner or operator of which acquires a sufficient number of emissions reduction credits to offset the facility's excessive emissions under the program established under Subsection (b).

(b) The commission by rule shall establish a program to grant emissions reduction credits to a facility if the owner or operator conducts a special environmental project to offset the facility's excessive emissions. The rules must establish two categories of projects eligible for credits under the program, including:

(1) emissions reduction projects; and

(2) environmental protection projects.

(c) A project included in the emissions reduction projects category must reduce net emissions from one or more sources in this state in an amount and type sufficient to prevent air pollution to a degree comparable to the amount of the reduction in the facility's emissions that would be necessary to meet the permit requirement. The emissions reduction projects category must include:

(1) generation of electric energy by a low-emission method, including:

(A) wind power;

(B) biomass gasification power; and

(C) solar power;

(2) the purchase and destruction of high-emission automobiles or other mobile sources;

(3) the reduction of emissions from a permitted facility that emits air contaminants to a level significantly below the levels necessary to comply with the facility's permit;

(4) a carpooling or alternative transportation program for the owner's or operator's employees;

(5) a telecommuting program for the owner's or operator's employees; and

(6) conversion of a motor vehicle fleet operated by the owner or operator to a low-sulphur fuel or an alternative fuel approved by the commission.

(d) A project included in the environmental protection projects category must benefit, preserve, or protect environmental quality in this state to a degree that the value of the project to the status of the state's environment is comparable to the value to the environment of reducing the facility's emissions to the extent necessary to meet the permit requirements. The environmental protection projects category must include:

(1) the creation of a wildlife or plant preserve;

(2) the creation of an environmental easement;

(3) surface water, groundwater, or soil pollution prevention or remediation; and

(4) wetlands enhancement, remediation, or preservation.

(e) A permit issued under Section 382.0519 for a facility participating in the program established under this section must be conditioned on the successful and timely completion of the project or projects for which the facility owner or operator acquires the credits.

(f) To renew the permit of a facility permitted under Section 382.0519 with credits acquired under the program established under this section, the commission shall require the owner or operator of the facility to have:

(1) made equipment improvements and emissions reductions necessary to meet the permit requirements under that section for a new permit; or

(2) acquired additional credits under the program as necessary to meet the permit requirements under that section for a new permit.

(g) Emissions reduction credits acquired under the program established under this section are not transferrable.

Sec. 382.05194. MULTIPLE PLANT PERMIT. (a) The commission may issue a multiple plant permit for multiple plant sites that are owned or operated by the same person or persons under common control if the commission finds that:

(1) the aggregate rate of emission of air contaminants to be authorized under the permit does not exceed the total of:

(A) for previously permitted facilities, the rates authorized in the existing permits; and

(B) for existing unpermitted facilities not subject to the requirement to obtain a preconstruction authorization under Section 382.0518(g) or for facilities authorized under Section 382.0519, the rates that would be authorized under Section 382.0519; and

(2) there is no indication that the emissions from the facilities will contravene the intent of this chapter, including protection of the public's health and physical property.

(b) A permit issued under this section may not authorize emissions from any of the facilities authorized under the permit that exceed the facility's highest historic annual rate or the levels authorized in the facility's most recent permit. In the absence of records extending back to the original construction of the facility, best engineering judgment shall be used to demonstrate the facility's highest historic annual rate to the commission.

(c) Emissions control equipment previously installed at a facility permitted under this section may not be removed or disabled unless the action is undertaken to maintain or upgrade the control equipment or to otherwise reduce the impact of emissions authorized by the commission.

(d) The commission shall publish notice of a proposed multiple plant permit for existing facilities in the Texas Register and in one or more statewide or regional newspapers designated by the commission by rule that will, in the commission's judgment, provide reasonable notice throughout the state. If the multiple plant permit for existing facilities will be effective for only part of the state, the notice shall be published in a newspaper of general circulation in the area to be affected. The commission by rule may require additional notice to be given. The notice must include an invitation for written comments by the public to the commission regarding the proposed multiple plant permit and must be published not later than the 30th day before the date the commission issues the multiple plant permit.

(e) For existing facilities, the commission shall hold a public meeting to provide an additional opportunity for public comment. The commission shall give notice of a public meeting under this subsection as part of the notice described in Subsection (d) not later than the 30th day before the date of the meeting.

(f) If the commission receives public comment related to the issuance of a multiple plant permit for existing facilities, the commission shall issue a written response to the comments at the same time the commission issues or denies the permit. The response must be made available to the public, and the commission shall mail the response to each person who made a comment.

(g) The commission by rule shall establish the procedures for application and approval for the use of a multiple plant permit.

(h) For a multiple plant permit that applies only to existing facilities for which an application is filed before September 1, 2001, the issuance, amendment, or revocation by the commission of the permit is not subject to Chapter 2001, Government Code.

(i) The commission may adopt rules as necessary to implement and administer this section and may delegate to the executive director under Section 382.061 the authority to issue, amend, or revoke a multiple plant permit.

Sec. 382.05195. STANDARD PERMIT. (a) The commission may issue a standard permit for new or existing similar facilities if the commission finds that:

(1) the standard permit can be enforceable;

(2) the commission can adequately monitor compliance with the terms of the standard permit; and

(3) for permit applications for facilities subject to Sections 382.0518(a)-(d) filed before September 1, 2001, the facilities will use control technology at least as effective as that described in Section 382.0518(b). For permit applications filed after August 31, 2001, all facilities permitted under this section will use control technology at least as effective as that described in Section 382.0518(b).

(b) The commission shall publish notice of a proposed standard permit in the Texas Register and in one or more statewide or regional newspapers designated by the commission by rule that will, in the commission's judgment, provide reasonable notice throughout the state. If the standard permit will be effective for only part of the state, the notice shall be published in a newspaper of general circulation in the area to be affected. The commission by rule may require additional notice to be given. The notice must include an invitation for written comments by the public to the commission regarding the proposed standard permit and must be published not later than the 30th day before the date the commission issues the standard permit.

(c) The commission shall hold a public meeting to provide an additional opportunity for public comment. The commission shall give notice of a public meeting under this subsection as part of the notice described in Subsection (b) not later than the 30th day before the date of the meeting.

(d) If the commission receives public comment related to the issuance of a standard permit, the commission shall issue a written response to the comments at the same time the commission issues or denies the permit. The response must be made available to the public, and the commission shall mail the response to each person who made a comment.

(e) The commission by rule shall establish the procedures for application and approval for the use of a standard permit.

(f) The issuance, amendment, or revocation of a standard permit by the commission is not subject to Chapter 2001, Government Code.

(g) The commission may adopt rules as necessary to implement and administer this section and may delegate to the executive director under Section 382.061 the authority to issue, amend, or revoke a standard permit.

Sec. 382.05196. PERMITS BY RULE. (a) Consistent with Section 382.051, the commission may adopt permits by rule for certain types of facilities if it is found on investigation that the types of facilities will not make a significant contribution of air contaminants to the atmosphere. The commission may not adopt a permit by rule authorizing any facility defined as a "major source" under the federal Clean Air Act (42 U.S.C. Section 7401 et seq.) or regulations adopted under that Act. Nothing in this subsection shall be construed to limit the commission's general power to control the state's air quality under Section 382.011(a).

(b) The commission by rule shall specifically define the terms and conditions for a permit by rule under this section.

SECTION 6. Section 382.057(a), Health and Safety Code, is amended to read as follows:

(a) Consistent with Section 382.0511, the commission by rule may exempt from the requirements of Section 382.0518 changes within any facility [and certain types of facilities ] if it is found on investigation that such changes [or types of facilities ] will not make a significant contribution of air contaminants to the atmosphere. The commission by rule shall exempt from the requirements of Section 382.0518 or issue a standard permit for the installation of emission control equipment that constitutes a modification or a new facility, subject to such conditions restricting the applicability of such exemption or standard permit that the commission deems necessary to accomplish the intent of this chapter. The commission may not exempt [any facility or ] any modification of an existing facility defined as "major" under the federal Clean Air Act or regulations adopted under that Act. Nothing in this subsection shall be

construed to limit the commission's general power to control the state's air quality under Section 382.011(a).

SECTION 7. Section 382.058, Health and Safety Code, is amended to read as follows:

Sec. 382.058. PERMITS BY RULE OR STANDARD PERMITS [LIMITATION ON COMMISSION EXEMPTION ] FOR CONSTRUCTION OF CERTAIN CONCRETE PLANTS. (a) A person may not begin construction on any concrete plant that performs wet batching, dry batching, or central mixing under a standard permit under Section 382.05195 or a permit by rule [an exemption ] adopted by the commission under Section 382.05196 [382.057 ] unless the person has complied with the notice and opportunity for hearing provisions under Section 382.056.

(b) This section does not apply to a concrete plant located temporarily in the right-of-way, or contiguous to the right-of-way, of a public works project.

(c) For purposes of this section, only those persons actually residing in a permanent residence within 440 yards of the proposed plant may request a hearing under Section 382.056(d) as a person who may be affected.

SECTION 8. Section 382.062(b), Health and Safety Code, is amended to read as follows:

(b) The commission may adopt rules relating to charging and collecting a fee for an exemption, for [from ] a permit, for a permit by rule, for a voluntary emissions reduction permit, for a multiple plant permit, or for a standard permit [authorized by commission rule ] and for a variance.

SECTION 9. The Texas Natural Resource Conservation Commission shall adopt, as soon as practicable after the effective date of this Act, any rules necessary to implement the changes in law made by this Act.

SECTION 10. Not later than January 15, 2001, the Texas Natural Resource Conservation Commission shall prepare and distribute to the governor, the lieutenant governor, the speaker of the house of representatives, the chair of the Senate Committee on Natural Resources, and the chair of the House Committee on Environmental Regulation a report on the number of companies that have obtained or applied for a permit under Section 382.0519, Health and Safety Code, as added by this Act, and the reductions in emissions anticipated to result from issuance of such permits.

SECTION 11. (a) The Texas Natural Resource Conservation Commission may not initiate an enforcement action against a person for the failure to obtain a preconstruction permit under Section 382.0518, Health and Safety Code, or a rule adopted or order issued by the commission under that section, that is related to the modification of a facility that may emit air contaminants if, on or before August 31, 2001, the person files an application for a permit for the facility under Section 382.0519, Health and Safety Code, as added by this Act.

(b) This section does not apply to an act related to the modification of a facility that occurs after March 1, 1999.

SECTION 12. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

Floor Amendment No. 3

Amend CSSB 766 (House Committee Report) as follows:

(1) In Section 5 of the bill, strike added Subsection (b), Section 382.0519, Health and Safety Code (page 5, lines 10-16), and substitute:

(b) The commission shall grant within a reasonable time a permit under this section if, from the information available to the commission, including information presented at any public hearing or through written comment, the commission finds that:

(1) the facility will use an air pollution control method at least as beneficial as that described in Section 382.003(9)(E)(ii), considering the age and remaining useful life of the facility, except as provided by Subdivision (2); or

(2) the facility will use the best available control technology, considering the age and remaining useful life of the facility and the technical practicability and economic reasonableness of reducing or eliminating the emissions resulting from the facility if the facility:

(A) emits more than 200 tons of air contaminants annually; and

(B) is located in:

(i) Bosque, Coryell, El Paso, Hood, Parker, Somervell, or Wise County;

(ii) a county traversed by any part of Interstate Highway 35 north of the city of San Antonio;

(iii) a county traversed by any part of Interstate Highway 37 south of the city of San Antonio; or

(iv) a county located east of a county described by Subparagraph (ii) or (iii).

(2) Add a new section to the bill, appropriately numbered, to read:

SECTION . To the extent that Section 382.0519, Health and Safety Code, as added by this Act, conflicts with another law enacted by the 76th Legislature specifically regarding emissions reduction requirements for electric generating facilities, the other law prevails over Section 382.0519.

(3) Renumber the Sections of the bill appropriately.

Floor Amendment No. 4

Amend CSSB 766 (House Committee Report) as follows:

(1) Between Sections 4 and 5 of the bill (page 5, between lines 1 and 2) insert:

SECTION 5. (a) Section 382.0518(g), Health and Safety Code, is amended to read as follows:

(g) Subsections (a)-(d) do not apply to a person who has executed a contract or has begun construction for an addition, alteration, or modification to a new or an existing facility on or before August 30, 1971, and who has complied with the requirements of Section 382.060, as it existed on November 30, 1991. To qualify for any exemption under this subsection, a contract may not have a beginning construction date later than February 29, 1972. This subsection does not apply to a facility located less than two miles from the outer perimeter of a school, child day-care facility, hospital, or nursing home.

(b) This section takes effect September 1, 2001.

(2) Add a new section to the bill, numbered appropriately, to read:

SECTION . To the extent that Section 382.0518, Health and Safety Code, as amended by this Act, conflicts with another law enacted by the 76th Legislature

specifically regarding permitting or emissions reduction requirements for electric generating facilities, the other law prevails over Section 382.0518.

(3) Renumber the sections of the bill appropriately.

Floor Amendment No. 5

Amend CSSB 766 (House Committee Report) as follows:

(1) Between Sections 8 and 9 of the bill (page 15, between lines 25 and 26) insert:

SECTION 9. (a) Section 382.0518(g), Health and Safety Code, is repealed.

(b) The owner or operator of a facility that was exempted from the permit requirements of Section 382.0518, Health and Safety Code, by Subsection (g) of that section immediately before September 1, 2001, may operate the facility on or after that date only if:

(1) the owner or operator of the facility has a permit application under that section filed before that date and pending before the Texas Natural Resource Conservation Commission; or

(2) the facility is authorized to operate under a standard permit or permit by rule.

(c) The owner or operator of a facility operating under a pending permit application as provided by Subsection (b) of this section shall discontinue all operations resulting in the emission of an air contaminant on the second anniversary of the date the Texas Natural Resource Conservation Commission determines that the application is administratively complete unless the commission grants a permit before the date of the anniversary. If a court finds that more likely than not the Texas Natural Resource Conservation Commission will fail to make the determination of whether to grant or deny a permit application described by Subsection (b) of this section before the date this subsection would require the owner or operator of a facility to discontinue operations and that the commission's failure is not a result of an act or omission of the owner or operator of the facility, the court may issue:

(1) an order of mandamus directing the commission to make the determination before that date; or

(2) an injunction to prevent the commission from enforcing the requirement that the owner or operator discontinue operations before the date the commission makes the determination.

(d) The Texas Natural Resource Conservation Commission shall enforce this section as if it were a provision of Chapter 382, Health and Safety Code.

(e) To the extent that this section conflicts with another law enacted by the 76th Legislature specifically regarding air contaminant emissions reductions or permitting requirements for electric generating facilities, the other law prevails over this section.

(f) This section takes effect September 1, 2001.

(2) Renumber subsequent sections of the bill accordingly.

Floor Amendment No. 6

Amend CSSB 766 (House Committee Printing) as follows:

(1) In the recitation to Section 5 of the bill (page 5, line 3), strike "382.0519" and substitute "382.05185, 382.0519,".

(2) In Section 5 of the bill, immediately following the recitation to that section (page 5, between lines 4 and 5), insert a new Section 382.05185, Health and Safety Code, to read:

Sec. 382.05185. PERMIT AMENDMENTS. (a) Before work is begun on the modification of a facility for which a permit has been issued under Section 382.0518 or on the construction of a facility at a site where a facility for which a permit has been issued under Section 382.0518 is located, the person planning the modification or construction must obtain from the commission:

(1) a permit;

(2) a permit amendment issued under this section; or

(3) an exemption adopted under Section 382.057.

(b) An applicant for a permit amendment under this section shall provide notice of the application under Section 382.056. This subsection does not apply to an application if the emissions at the site on which the facility is or is planned to be located will decrease and not change in character.

(c) Within a reasonable time after the commission receives an application for a permit amendment to authorize a modification of or the construction of a facility, the commission shall issue the permit amendment if, from the information available to the commission, the commission finds:

(1) each facility authorized to operate under the amended permit will use at least the best available control technology, considering the technical practicability and economic reasonableness of reducing or eliminating the emissions resulting from the facility; and

(2) no indication that the emissions from the facility will contravene the intent of this chapter, including the protection of the public's health and physical property.

(d) In considering the permit amendment, the commission shall consider any adjudicated decision or compliance proceeding within the five years before the date on which the application was filed that addressed the applicant's past performance and compliance with the laws of the state, another state, or the United States governing air contaminants, or with the terms of any permit or order issued by the commission.

(3) Between Sections 8 and 9 of the bill (page 15, between lines 25 and 26), insert a new Section 9 to read as follows:

SECTION 9. Section 382.0518(h), Health and Safety Code, is repealed.

(4) Renumber the subsequent sections of the bill appropriately.

Floor Amendment No. 7

Amend CSSB 766 (House committee report) as follows:

(1) In the recital to SECTION 5 of the bill (page 5, line 3), strike "382.0519" and substitute "382.05185, 382.0519,".

(2) In SECTION 5 of the bill, immediately following the recital (page 5, between lines 4 and 5), insert:

Sec. 382.05185. EMISSIONS REDUCTIONS FOR CERTAIN EXEMPT FACILITIES. (a) In this section, "electric generating facility" means a facility that generates electric energy for compensation and is owned or operated by a person in this state, including a municipal corporation, electric cooperative, or river authority.

(b) This section applies only to an electric generating facility existing on January 1, 1999, that is not subject to the requirement to obtain a permit under Section 382.0518(g).

(c) It is the intent of the legislature that, for the 12-month period beginning on May 1, 2003, and for each 12-month period after the end of that period, the total annual emissions of nitrogen oxides from facilities subject to this section may not exceed

levels equal to 50 percent of the total emissions of that pollutant during 1997, as reported to the commission, and the total annual emissions of sulphur dioxides from coal-fired facilities subject to this section may not exceed levels equal to 75 percent of the total emissions of that pollutant during 1997, as reported to the commission. The limitations prescribed by this subsection may be met through an emissions allocation and allowance transfer system described by this section.

(d) A municipal corporation, electric cooperative, or river authority may exclude any electric generating facility of 25 megawatts or less from the requirements prescribed by this section. Not later than January 1, 2000, a municipal corporation, electric cooperative, or river authority must inform the commission of its intent to exclude those facilities.

(e) The owner or operator of an electric generating facility shall apply to the commission for a permit for the emission of air contaminants on or before September 1, 2000. A permit issued by the commission under this section shall require the facility to achieve emissions reductions or trading emissions allowances as provided by this section. If the facility uses coal as a fuel, the permit must also be conditioned on the facility's emissions meeting opacity limitations provided by commission rules. Notwithstanding Section 382.0518(g), a facility that does not obtain a permit as required by this subsection may not operate after May 1, 2003, unless the commission finds good cause for an extension.

(f) The commission shall develop rules for the permitting of electric generating facilities. The rules adopted under this subsection shall provide, by region, for the allocation of emissions allowances of sulphur dioxides and nitrogen oxides among electric generating facilities and for facilities to trade emissions allowances for those contaminants.

(g) The commission by rule shall establish an East Texas Region, a West Texas Region, and an El Paso Region for allocation of air contaminants under the permitting program under Subsection (f). The East Texas Region must contain all counties traversed by or east of Interstate Highway 35 or Interstate Highway 37, including Bosque, Coryell, Hood, Parker, Somervell, and Wise counties. The West Texas Region includes all of the state not contained in the East Texas Region or the El Paso Region. The El Paso Region includes El Paso County.

(h) Not later than January 1, 2000, the commission shall allocate to each electric generating facility in each region a number of annual emissions allowances, with each allowance equal to one ton of sulphur dioxides or of nitrogen oxides emitted in a year, that permit emissions of the contaminants from the facility in that year. The commission must allocate to each facility a number of emissions allowances equal to an emissions rate measured in pounds per million British thermal units divided by 2,000 and multiplied by the facility's total heat input in terms of millions of British thermal units during 1997. For the East Texas Region, the emissions rate shall be 0.14 pounds per million British thermal units for nitrogen oxides and 1.38 pounds per million British thermal units for sulphur dioxides. For the West Texas and El Paso regions, the emissions rate shall be 0.195 pounds per million British thermal units for nitrogen oxides. Allowances for sulphur dioxides may only be allocated among coal-fired facilities.

(i) A person, municipal corporation, electric cooperative, or river authority that owns and operates an electric generating facility not covered by this section may elect to designate that facility to become subject to the requirements of this section and to receive emissions allowances for the purpose of complying with the emissions

limitations prescribed by Subsection (c). The commission shall adopt rules governing this election that:

(1) require an owner or operator of an electric generation facility to designate to the commission in its permit application under Subsection (e) any facilities that will become subject to this section;

(2) require the commission, notwithstanding the allocation mechanism provided by Subsection (h), to allocate additional allowances to facilities governed by this subsection in an amount equal to each facility's actual emissions in tons in 1997;

(3) provide that any unit designated under this subsection may not transfer or bank allowances conserved as a result of reduced utilization or shutdown, except that the allowances may be transferred or carried forward for use in subsequent years to the extent that the reduced utilization or shutdown results from the replacement of thermal energy from the unit designated under this subsection with thermal energy generated by any other unit; and

(4) provide that emissions reductions from electing facilities designated in this subsection may only be used to satisfy the emissions reductions for grand fathered facilities defined in Subsection (c) to the extent that reductions used to satisfy the limitations in Subsection (c) are beyond the requirements of any other state or federal standard, or both.

(j) The commission by rule shall permit a facility to trade emissions allocations with other electric generating facilities only in the same region.

(k) The commission by rule shall provide methods for the commission to determine whether a facility complies with the permit issued under this section. The rules must provide for:

(1) monitoring and reporting actual emissions of sulphur dioxides and nitrogen oxides from each facility;

(2) provisions for saving unused allowances for use in later years; and

(3) a system for tracking traded allowances.

(l) A facility may not trade an unused allowance for a contaminant for use as a credit for another contaminant.

(m) A person possessing market power may not withhold emissions allowances from the market in a manner that is unreasonably discriminatory or tends to unreasonably restrict, impair, or reduce the level of competition.

(n) The commission shall penalize a facility that emits an air contaminant that exceeds the facility's allowances for that contaminant by:

(1) enforcing an administrative penalty, in an amount determined by commission rules, for each ton of air contaminant emissions by which the facility exceeds its allocated emissions allowances; and

(2) reducing the facility's emissions allowances for the next year by an amount of emissions equal to the excessive emissions in the year the facility emitted the excessive air contaminants.

(o) The commission may penalize a facility that emits an air contaminant that exceeds the facility's allowances for that contaminant by:

(1) ordering the facility to cease operations; or

(2) taking other enforcement action provided by commission rules.

(p) The commission by rule shall provide for a facility in the El Paso Region to meet emissions allowances by using credits from emissions reductions achieved in Ciudad Juarez, United Mexican States.

(q) If the commission or the United States Environmental Protection Agency determines that reductions in nitrogen oxides emissions in the El Paso Region otherwise required by this section would result in increased ambient ozone levels in El Paso County, facilities in the El Paso Region are exempt from the nitrogen oxides reduction requirements.

(r) An applicant for a permit under Subsection (e) shall publish notice of intent to obtain the permit in accordance with Section 382.056. The commission shall provide an opportunity for a public hearing and the submission of public comment and send notice of a decision on an application for a permit under Subsection (e) in the same manner as provided by Sections 382.0561 and 382.0562. The commission shall review and renew a permit issued under this section in accordance with Section 382.055.

(s) This section does not limit the authority of the commission to require additional reductions of nitrogen oxides, sulphur dioxides, or any other pollutant from generating facilities subject to this section.

(3) In SECTION 9 of the bill (page 15, line 27), between "Commission" and "shall" insert "and the Public Utility Commission of Texas".

(4) Add a new section to the bill, numbered appropriately, to read:

SECTION . Subchapter E, Chapter 36, Utilities Code, is amended by adding Section 36.209 to read as follows:

Sec. 36.209. ELECTRIC GENERATING FACILITY COST RECOVERY FOR AIR CONTAMINANT EMISSIONS PERMIT OR EMISSIONS REDUCTION. (a) Subject to Subsection (b), if an electric utility makes a reasonable capital investment before May 1, 2003, to comply with Section 382.05185, Health and Safety Code, the commission, after an expedited review and approval based on the criteria under Subsection (b), shall authorize the use of an appropriate mechanism for full and concurrent recovery of the capital investment and a return on the investment at a rate of return that includes an equity return component that is equivalent to that of U.S. Treasury bonds of similar duration to the expected useful life of the investment.

(b) An investment described by Subsection (a) and a return on the investment is the amount eligible for full and concurrent recovery under that subsection only to the extent that:

(1) the cost is applied to offset or reduce the emission of air contaminants from an electric generating facility and:

(A) the offset or reduction is determined by the Texas Natural Resource Conservation Commission to be an essential component in achieving compliance with a national ambient air quality standard; or

(B) the offset or reduction is necessary for an unpermitted electric generating facility to obtain a permit under Section 382.05185, Health and Safety Code;

(2) the decision to retrofit a facility is determined to be the most cost-effective means of achieving the offset or reduction after consideration of alternative measures, including the retirement of the electric generating facility, taking into account the cost of replacement generating capacity and the net book value of the affected facility, including retirement costs and offsetting salvage value; and

(3) the amount and location of resulting emission reductions is consistent with the air quality goals and policies of the Texas Natural Resource Conservation Commission.

(5) Add a new section to the bill, numbered appropriately, to read:

SECTION . If SB 7 of the 76th Legislature, Regular Session, 1999, is enacted and becomes law, Sections 382.05185, Health and Safety Code, as added by this Act, and Section 36.209, Utilities Code, as added by this Act, do not take effect.

Floor Amendment No. 8

Amend CSSB 766 (House committee report) in Section 5 of the bill as follows:

(1) Strike added Section 382.05192, Health and Safety Code (page 6, line 25, through page 7, line 1), and substitute:

Sec. 382.05192. REVIEW AND RENEWAL OF VOLUNTARY EMISSION REDUCTIONS AND MULTIPLE PLANT PERMIT. Review and renewal of a permit issued under Section 382.0519 or 382.05194 shall be conducted in accordance with Section 382.055.

(2) In added Section 382.05195, Health and Safety Code, strike Subsections (e)-(g) (page 13, lines 16-24) and substitute:

(e) The commission by rule shall establish procedures for the amendment of a standard permit and for an application for, the issuance of, the renewal of, and the revocation of an authorization to use a standard permit.

(f) A facility authorized to emit air contaminants under a standard permit shall comply with an amendment to the standard permit beginning on the date the facility's authorization to use the standard permit is renewed or the date the commission otherwise provides. Before the date the facility is required to comply with the amendment, the standard permit, as it read before the amendment, applies to the facility.

(g) The adoption or amendment of a standard permit or the issuance, renewal, or revocation of an authorization to use a standard permit is not subject to Chapter 2001, Government Code.

(h) The commission may adopt rules as necessary to implement and administer this section.

(i) The commission may delegate to the executive director the authority to issue, amend, renew, or revoke an authorization to use a standard permit.

Floor Amendment No. 9

Amend CSSB 766 (House Committee Report) as follows:

(1) In Section 5 of the bill, in added Section 382.05193, Health and Safety Code:

(A) In the heading of that section (page 7, lines 2-3), strike "ENVIRONMENTAL MITIGATION" and substitute "EMISSIONS REDUCTION".

(B) Strike Subsection (b) of that section (page 7, lines 15-22) and substitute:

(b) The commission by rule shall establish a program to grant emissions reduction credits to a facility if the owner or operator conducts an emissions reduction project to offset the facility's excessive emissions. To be eligible for a credit to offset a facility's emissions, the emissions reduction project must reduce emissions in the airshed, as defined by commission rule, in which the facility is located.

(C) In Subsection (c) of that section (page 7, lines 23-24), strike "A project included in the emissions reduction projects category" and substitute "The commission by rule shall provide that an emissions reduction project".

(D) In Subsection (c) of that section (page 8, line 1), strike "The emissions reduction projects category" and substitute "Qualifying emissions reduction projects".

(E) Strike Subsection (d) of that section (page 8, line 20, through page 9, line 5).

(F) Redesignate:

(i) Subsection (e) of that section (page 9, line 6) as Subsection (d);

(ii) Subsection (f) of that section (page 9, line 11) as Subsection (e); and

(iii) Subsection (g) of that section (page 9, line 21) as Subsection (f).

(2) Add a new section to the bill, appropriately numbered, to read:

SECTION . To the extent that Section 382.05193, Health and Safety Code, as added by this Act, conflicts with another law enacted by the 76th Legislature specifically regarding emissions reduction requirements for electric generating facilities, the other law prevails over Section 382.05193.

(3) Renumber the subsequent sections of the bill accordingly.

Floor Amendment No. 10

Amend CSSB 766 (House committee report) in Section 5 of the bill by striking added Subsection (e), Section 382.0519, Health and Safety Code (page 5, lines 26 and 27, and page 6, lines 1-5) and by substituting:

(e) A permit issued under this section for a facility that annually emits more than 100,000 tons of air contaminants may defer the implementation of the requirement of reductions in the emissions of certain air contaminants only if the applicant will make substantial emissions reductions in other specific air contaminants. The commission shall base the deferral on a prioritization of air contaminants as necessary to meet local, regional, and statewide air quality needs. A deferral granted in a permit under this subsection continues to apply to the facility even if the facility's emissions fall below the threshold amount provided by this subsection.

Floor Amendment No. 11

Amend CSSB 766 (House committee report) as follows:

(1) In SECTION 5 of the bill, added Subdivision (1), Subsection (a), Section 382.05195, Health and Safety Code (page 12, line 10), strike "can be" and substitute "is".

(2) In SECTION 5 of the bill, added Subsection (a), Section 382.05196, Health and Safety Code (page 14, lines 3 and 4), strike "a "major source" under" and substitute ""major" under any applicable preconstruction permitting requirements of".

(3) In SECTION 6 of the bill, in the third sentence of amended Subsection (a), Section 382.057, Health and Safety Code (page 14, lines 24 and 25), between "under" and "the federal Clean Air Act", insert "any applicable preconstruction permitting requirements of".

Floor Amendment No. 12

Amend CSSB 766 (House Committee Report) as follows:

(1) Between Sections 8 and 9 of the bill (page 15, between lines 25 and 26) insert the following:

SECTION 9. (a) Section 382.0621(d), Health and Safety Code, is repealed.

(b) The Texas Natural Resource Conservation Commission shall deposit any increase in the amount of fees collected under Section 382.0621, Health and Safety Code, as amended by this section, that results from the repeal of Subsection (d) of that section into a special account in the general revenue fund. Interest earned on the account shall be credited to the account. The account is exempt from the application

of Section 403.095, Government Code. Money in the account may be appropriated only to the Texas Natural Resource Conservation Commission for a use related to:

(1) the small business stationary source technical and environmental compliance assistance program established under Section 382.0365, Health and Safety Code; and

(2) any other clean air program funded by fees on emissions of air contaminants.

(c) To the extent that this section conflicts with another law enacted by the 76th Legislature specifically regarding emissions reduction requirements for electric generating facilities, the other law prevails over this section.

(2) Renumber the subsequent sections of the bill accordingly.

Floor Amendment No. 1 on Third Reading

Amend CSSB 766 on third reading as follows:

(1) In the recitation to Section 5 of the bill as amended on second reading by Floor Amendment No. 6 by Kuempel, strike "382.05185, 382.0519," and substitute "382.0519".

(2) Strike Section 382.05185, Health and Safety Code, as added on second reading by Floor Amendment No. 6 by Kuempel.

(3) Strike Section 9 of the bill, repealing Section 382.0518(h), as added on second reading by Floor Amendment No. 6 by Kuempel.

Floor Amendment No. 2 on Third Reading

Amend CSSB 766 on third reading as follows:

(1) In SECTION 5 of the bill, in proposed Section 382.05195, Health and Safety Code (committee printing page 12, line 7), strike the heading for that section and substitute "STANDARD PERMIT FOR FACILITIES UNDER SECTION 382.0518(g).".

(2) In Floor Amendment No. 8 adopted on second reading, at the end of proposed Subsection (g) of Section 382.05195, Health and Safety Code (page 1, between lines 24 and 25), add "The commission by rule shall provide for public notice and comment.".

The amendments were read.

Senator Brown moved that the Senate do not concur in the House amendments, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on SB 766 before appointment.

There were no motions offered.

The President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Brown, Chair; Armbrister, Lucio, Fraser, and West.

CONFERENCE COMMITTEE ON HOUSE BILL 3620

Senator Bernsen called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3620 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 3620 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Bernsen, Chair; Jackson, Lucio, Armbrister, and Brown.

CONFERENCE COMMITTEE ON HOUSE BILL 3061

Senator Bernsen called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3061 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 3061 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Bernsen, Chair; Jackson, Ogden, Moncrief, and Shapleigh.

CONFERENCE COMMITTEE ON HOUSE BILL 662

Senator Wentworth called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 662 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 662 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Wentworth, Chair; Ellis, Brown, Harris, and Duncan.

CONFERENCE COMMITTEE ON HOUSE BILL 2190

Senator Armbrister called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 2190 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 2190 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Armbrister, Chair; Duncan, Whitmire, Harris, and Nelson.

SENATE BILL 947 WITH HOUSE AMENDMENT

Senator Barrientos called SB 947 from the President's table for consideration of the House amendment to the bill.

The President laid the bill and the House amendment before the Senate.

Amendment

Amend SB 947 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the board of regents of The University of Texas System to increase the student union fee at The University of Texas at Austin and to the use of the student union fee.

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

SECTION 1. Subsection (a), Section 54.530, Education Code, is amended to read as follows:

(a) The board of regents of The University of Texas System may levy and collect from each student a compulsory fee for operating, maintaining, improving, equipping, and/or constructing additions to the existing Texas Union building near Guadalupe Street. Unless a higher maximum amount is approved as provided by this subsection, the fee may not [to ] exceed $33 for each regular semester and $16.50 for each term of each summer session. The money collected from the[, with such ] fees shall [to ] be deposited to an account known as the Texas Union Fee Account. With the concurrence of the student fees advisory committee, the board may increase the amount of the [; this ] fee [may be raised ] to an amount that is not more than 10 percent of the amount imposed in the preceding academic year if that method for increasing the amount of the fee has been approved by a majority vote of those students participating in a general election called for that purpose. The board may increase the amount of the fee to an amount that is more than 10 percent of the amount imposed in the preceding academic year [not to exceed $40 for each regular semester and $20 for each term of each summer session ] if that increase in the fee is approved by a majority vote of those students participating in a general election called for that purpose. The board may increase the amount of the fee to an amount that is more than $33 but not more than $50 for each regular semester, and more than $16.50 but not more than $30 for each term of each summer session, but only if the maximum amount has been approved by a majority vote of those students participating in a general election called for that purpose. The activities of said Texas Union building financed in whole or in part by the [this ] fee shall be limited to those activities in which the entire student body is eligible to participate, and in no event shall any of the activities so financed be held outside of the territorial limits of the campus of The University of Texas at Austin.

SECTION 2. (a) A review panel consisting of three members appointed under this section and financed by the office of the vice president for student affairs at The

University of Texas at Austin shall conduct an external review of the operation of the Texas Union to ensure the appropriate use of the student union fee imposed by Section 54.530, Education Code. The review shall include an examination of management decisions and other areas relating to the operation of the Texas Union as necessary. Not later than the first day of the 2000 fall semester, the review panel shall make to the Board of Directors of the Texas Union related recommendations on ways to improve the facilities and operations of the Texas Union.

(b) The vice president for student affairs at The University of Texas at Austin shall compile a list of seven proposed members of the review panel, which must consist of current or former student union directors, associate student union directors, or college or university vice presidents with student union experience. A proposed member of the review panel may have acquired the necessary union experience at a college or university in or outside of this state. The vice president for student affairs may not serve on the review panel.

(c) The vice president for student affairs at The University of Texas at Austin shall submit the list to a student committee consisting of five representatives to the Student Assembly of The University of Texas at Austin, to be selected by the Student Assembly. The student committee shall select three persons from the list submitted by the vice president for student affairs to constitute the review panel. If a vacancy occurs on the review panel, the student committee shall select another person from the list to fill the vacant position. The selections of the student committee, including any replacement selections, are final unless a proposed member is unable to serve, in which event the student committee shall select a replacement.

(d) If, at any time, the list of proposed members of the review panel consists of fewer than five persons, the vice president for student affairs at The University of Texas at Austin shall submit to the student committee additional names as necessary to restore the list of proposed members to seven.

(e) This section expires January 1, 2001.

SECTION 3. Section 1 of this Act applies beginning with the 1999 fall semester and applies to fees charged on or after that date. Fees charged before the 1999 fall semester are governed by the law in effect at the time the fees are charged, and that law is continued in effect for that purpose.

SECTION 4. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

The amendment was read.

Senator Barrientos moved that the Senate do not concur in the House amendment, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on SB 947 before appointment.

There were no motions offered.

The President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Barrientos, Chair; West, Nelson, Zaffirini, and Cain.

CONFERENCE COMMITTEE ON HOUSE BILL 542

Senator Fraser called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 542 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 542 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Fraser, Chair; Jackson, Lucio, Carona, and Madla.

CONFERENCE COMMITTEE ON HOUSE BILL 1444

Senator Moncrief called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1444 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 1444 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Moncrief, Chair; Nelson, West, Lindsay, and Shapleigh.

CONFERENCE COMMITTEE ON HOUSE BILL 744

Senator Bernsen called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 744 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 744 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Bernsen, Chair; Jackson, Sibley, Cain, and Ellis.

CONFERENCE COMMITTEE ON HOUSE BILL 2224

Senator Shapiro called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 2224 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 2224 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Shapiro, Chair; Brown, Madla, Harris, and Shapleigh.

CONFERENCE COMMITTEE ON HOUSE BILL 1933

Senator Shapiro called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1933 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 1933 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Shapiro, Chair; Wentworth, Fraser, Bivins, and Lindsay.

SENATE BILL 558 WITH HOUSE AMENDMENTS

Senator Lucio called SB 558 from the President's table for consideration of the House amendments to the bill.

The President laid the bill and the House amendments before the Senate.

Floor Amendment No. 1

Amend SB 558 in SECTION 2 of the bill by striking "September 1, 1999" and substituting "January 1, 2000".

Floor Amendment No. 2

Amend SB 558 on page 1, line 23 as follows:

Strike the phrase "in addition to" and substitute the phrase "as a component of".

The amendments were read.

Senator Lucio moved that the Senate do not concur in the House amendments, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on SB 558 before appointment.

There were no motions offered.

The President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Lucio, Chair; Gallegos, Carona, Bernsen, and Nixon.

CONFERENCE COMMITTEE ON HOUSE BILL 3793

Senator Sibley called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3793 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 3793 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Sibley, Chair; Brown, Armbrister, Bivins, and Lucio.

CONFERENCE COMMITTEE ON HOUSE BILL 1283

Senator Brown called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1283 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 1283 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Brown, Chair; Armbrister, Bernsen, Bivins, and Ratliff.

CONFERENCE COMMITTEE ON HOUSE BILL 1104

Senator Cain called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1104 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 1104 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Cain, Chair; Ogden, West, Sibley, and Ratliff.

CONFERENCE COMMITTEE ON HOUSE BILL 3182

Senator Harris called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3182 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 3182 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Harris, Chair; Lindsay, Lucio, Madla, and Shapiro.

CONFERENCE COMMITTEE ON

SENATE BILL 731 DISCHARGED

On motion of Senator Harris and by unanimous consent, the Senate conferees on SB 731 were discharged.

Question-Shall the Senate concur in the House amendments to SB 731?

Senator Harris moved to concur in the House amendments to SB 731.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

CONFERENCE COMMITTEE ON HOUSE BILL 3582

Senator Haywood called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3582 and moved that the request be granted.

The motion prevailed.

The President asked if there were any motions to instruct the conference committee on HB 3582 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate on the bill: Senators Haywood, Chair; Brown, Armbrister, Lucio, and Shapleigh.

(Senator Moncrief in Chair)

CONFERENCE COMMITTEE ON HOUSE BILL 3470

Senator Zaffirini called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3470 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 3470 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Zaffirini, Chair; Carona, Gallegos, Bernsen, and Barrientos.

SENATE BILL 50 WITH HOUSE AMENDMENTS

Senator Nelson called SB 50 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Amendment

Amend SB 50 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the application for, issuance of, and contents of a protective order.

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

SECTION 1. Subsection (a), Section 82.008, Family Code, is amended to read as follows:

(a) An [If an ] application for a protective order [alleges that the respondent has violated a previously rendered protective order by committing an act prohibited by the order and ] that is filed after a previously rendered [the ] protective order has expired [after the date that the violation occurred, the application for the new protective order ] must include:

(1) a copy of the expired protective order attached to the application or, if a copy of the expired protective order is unavailable, a statement that the order is unavailable to the applicant and that a copy of the order will be filed with the court before the hearing on the application;

(2) a description of either:

(A) the violation of the expired protective order, if the application alleges that the respondent violated the expired protective order by committing an act prohibited by that order before the order expired; or

(B) the threatened harm that reasonably places the applicant in fear of imminent physical harm, bodily injury, assault, or sexual assault; and

(3) if a violation of the expired order is alleged, a statement that the violation of the expired order has not been grounds for any other order protecting the applicant that has been issued or requested under this subtitle.

SECTION 2. Subchapter A, Chapter 82, Family Code, is amended by adding Section 82.0085 to read as follows:

Sec. 82.0085. APPLICATION FILED BEFORE EXPIRATION OF PREVIOUSLY RENDERED PROTECTIVE ORDER. (a) If an application for a protective order alleges that an unexpired protective order applicable to the respondent is due to expire not later than the 30th day after the date the application was filed, the application for the subsequent protective order must include:

(1) a copy of the previously rendered protective order attached to the application or, if a copy of the previously rendered protective order is unavailable, a statement that the order is unavailable to the applicant and that a copy of the order will be filed with the court before the hearing on the application; and

(2) a description of the threatened harm that reasonably places the applicant in fear of imminent physical harm, bodily injury, assault, or sexual assault.

(b) The procedural requirements for an original application for a protective order apply to a protective order requested under this section.

SECTION 3. Section 85.025, Family Code, is amended to read as follows:

Sec. 85.025. DURATION OF PROTECTIVE ORDER. (a) Except as provided by Subsection (b) or (c), an [An ] order under this subtitle is effective:

(1) for the period stated in the order, not to exceed two years; or

(2) if a period is not stated in the order, until [one year. An order that does not specify the period for which the order is effective expires on ] the second [first ] anniversary of the date the order was issued.

(b) A person who is the subject of a protective order may file a motion not earlier than the first anniversary of the date on which the order was rendered requesting that the court review the protective order and determine whether there is a continuing need for the order. After a hearing on the motion, if the court finds there is a continuing need for the protective order, the protective order remains in effect until the date the order expires under this section. If the court finds there is no continuing need for the protective order, the court shall order that the protective order expires on a date set by the court.

(c) If a person who is the subject of a protective order is confined or imprisoned on the date the protective order would expire under Subsection (a), the period for which the order is effective is extended, and the order expires on the first anniversary of the date the person is released from confinement or imprisonment.

SECTION 4. Section 85.026, Family Code, is amended to read as follows:

Sec. 85.026. WARNING ON PROTECTIVE ORDER. (a) Each protective order issued under this subtitle, including a temporary ex parte order, must contain the following prominently displayed statements [printed statement ] in boldfaced [bold-faced ] type, [or ] capital letters, or underlined:

"A PERSON WHO VIOLATES THIS ORDER MAY BE PUNISHED FOR CONTEMPT OF COURT BY A FINE OF AS MUCH AS $500 OR BY CONFINEMENT IN JAIL FOR AS LONG AS SIX MONTHS, OR BOTH.

"NO PERSON, INCLUDING A PERSON WHO IS PROTECTED BY THIS ORDER, MAY GIVE PERMISSION TO ANYONE TO IGNORE OR VIOLATE ANY PROVISION OF THIS ORDER. DURING THE TIME IN WHICH THIS ORDER IS VALID, EVERY PROVISION OF THIS ORDER IS IN FULL FORCE AND EFFECT UNLESS A COURT CHANGES THE ORDER.

"IT IS UNLAWFUL FOR ANY PERSON WHO IS SUBJECT TO A PROTECTIVE ORDER TO POSSESS A FIREARM OR AMMUNITION."

(b) Each protective order issued under this subtitle, except for a temporary ex parte order, must contain the following prominently displayed [printed ] statement in boldfaced [bold-faced ] type, [or ] capital letters, or underlined:

"A VIOLATION OF THIS ORDER BY COMMISSION OF AN ACT PROHIBITED BY THE ORDER MAY BE PUNISHABLE BY A FINE OF AS MUCH AS $4,000 OR BY CONFINEMENT IN JAIL FOR AS LONG AS ONE YEAR, OR BOTH. AN ACT THAT RESULTS IN FAMILY VIOLENCE MAY BE PROSECUTED AS A SEPARATE MISDEMEANOR OR FELONY OFFENSE. IF THE ACT IS PROSECUTED AS A SEPARATE FELONY OFFENSE, IT IS PUNISHABLE BY CONFINEMENT IN PRISON FOR AT LEAST TWO YEARS."

[(c) Each protective order issued under this subtitle, including a temporary ex parte order, must contain the following printed statement in bold-faced type or capital letters:

["NO PERSON, INCLUDING A PERSON WHO IS PROTECTED BY THIS ORDER, MAY GIVE PERMISSION TO ANYONE TO IGNORE OR

VIOLATE ANY PROVISION OF THIS ORDER. DURING THE TIME IN WHICH THIS ORDER IS VALID, EVERY PROVISION OF THIS ORDER IS IN FULL FORCE AND EFFECT UNLESS A COURT CHANGES THE ORDER." ]

SECTION 5. Section 87.002, Family Code, is amended to read as follows:

Sec. 87.002. MODIFICATION MAY NOT EXTEND DURATION OF ORDER. A protective order may not be modified to extend the period of the order's validity beyond the second [first ] anniversary of the date the original order was rendered or beyond the date the order expires under Section 85.025(c), whichever date occurs later.

SECTION 6. (a) This Act takes effect September 1, 1999.

(b) The change in law made by this Act to Subchapter A, Chapter 82, Family Code, by the amendment of Subsection (a), Section 82.008, and the addition of Section 82.0085 applies to an application for a protective order that is filed on or after the effective date of this Act. An application for a protective order that is filed before that date is covered by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose.

(c) The change in law made by this Act to Sections 85.025, 85.026, and 87.002, Family Code, applies to a protective order issued on or after the effective date of this Act. A protective order issued before that date is governed by the law in effect on the date the order was issued, and the former law is continued in effect for that purpose.

SECTION 7. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

Floor Amendment No. 1 on Third Reading

Amend CSSB 50 on third reading by adding the following appropriately numbered SECTION to the bill and renumbering subsequent SECTIONS of the bill accordingly:

SECTION . Section 82.002(a), Family Code, is amended to read as follows:

(a) An application for a protective order to protect the applicant or any other member of the applicant's family or household may be filed by:

(1) a [an adult ] member of the family or household; or

(2) any adult for the protection of a child.

The amendments were read.

Senator Nelson moved that the Senate do not concur in the House amendments, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on SB 50 before appointment.

There were no motions offered.

The Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Nelson, Chair; Shapiro, Moncrief, Jackson, and Armbrister.

CONFERENCE COMMITTEE ON HOUSE BILL 352

Senator Brown called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 352 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 352 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Brown, Chair; Armbrister, Lindsay, Madla, and Moncrief.

CONFERENCE COMMITTEE ON HOUSE BILL 1939

Senator Harris called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1939 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 1939 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Harris, Chair; Shapiro, Madla, Ellis, and Nelson.

SENATE BILL 694 WITH HOUSE AMENDMENT

Senator Cain called SB 694 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 694 as follows:

(1) In SECTION 1 of the bill, in amended Sections 25.19(b)(3) and (4), Tax Code (Senate Engrossment, on page 1, line 23-page 2, line 1), strike:

"(3) [the taxable value of the property in the preceding year for each taxing unit taxing the property;

(4) ]", and substitute:

"(3) the taxable value of the property in the preceding year for each taxing unit taxing the property;

(4)".

(2) In SECTION 1 of the bill, in amended Section 25.19(b)(5), Tax Code (Senate Engrossment, on page 2, line 4), strike "(4) [(5) ]", and substitute "(5)".

(3) In SECTION 1 of the bill, in amended Section 25.19(b)(6), Tax Code (Senate Engrossment, on page 2, line 20), strike "(5) [(6) ]", and substitute "(6)".

(4) In SECTION 1 of the bill, in amended Section 25.19(b)(7), Tax Code (Senate Engrossment, on page 2, line 25), strike "(6) [(7) ]", and substitute "(7)".

(5) In SECTION 1 of the bill, in amended Section 25.19(b)(8), Tax Code (Senate Engrossment, on page 3, line 1), strike "(7) [(8) ]", and substitute "(8)".

(6) In SECTION 1 of the bill, in amended Section 25.19(b)(9), Tax Code (Senate Engrossment, on page 3, line 3), strike "(8) [(9) ]", and substitute "(9)".

(7) In SECTION 1 of the bill, in amended Section 25.19, Tax Code (Senate Engrossment, on page 4, lines 11-15), strike:

"(f) [(h) In the notice of appraised value for real property, the chief appraiser shall list separately:

(1) the market value of the land; and

(2) the total market value of the structures and other improvements on the property. ", and substitute:

"(f) [(h) ] In the notice of appraised value for real property, the chief appraiser shall list separately:

(1) the market value of the land; and

(2) the total market value of the structures and other improvements on the property.

(g) In the notice of appraised value for real property, the chief appraiser shall include the market value of each structure or improvement on the property, regardless of the date on which the structure or improvement was erected or affixed to the land.

(8) In SECTION 1 of the bill, in amended Section 25.19(i), Tax Code (Senate Engrossment, on page 4, line 16), strike "[(i) ]" and substitute "(h) [(i) ]"

(9) In SECTION 1 of the bill, in proposed Section 25.19(g), Tax Code (Senate Engrossment, on page 5, line 8), strike "(g)" and substitute "(i)".

(10) In SECTION 1 of the bill, in amended Section 25.19(j), Tax Code (Senate Engrossment, on page 5, line 10), strike "(h) [(j) ]", and substitute "(j)".

(11) In SECTION 1 of the bill, in amended Section 25.19(j), Tax Code (Senate Engrossment, on page 5, line 15), strike "(b)(6) [(b)(7) ] or (f)(3)", and substitute "(b)(7) or (h)(3)".

(12) In SECTION 1 of the bill, in amended Section 25.19(k), Tax Code (Senate Engrossment, on page 5, line 16), strike "(i) [(k) ]", and substitute "(k)".

(13) In SECTION 1 of the bill, in amended Section 25.19(k), Tax Code (Senate Engrossment, on page 5, line 17), strike "(f)", and substitute "(h)".

The amendment was read.

Senator Cain moved that the Senate do not concur in the House amendment, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on SB 694 before appointment.

There were no motions offered.

The Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Cain, Chair; Moncrief, Harris, Wentworth, and Nixon.

CONFERENCE COMMITTEE ON HOUSE BILL 3079

Senator Brown called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3079 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 3079 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Brown, Chair; Ratliff, Barrientos, Lucio, and Armbrister.

CONFERENCE COMMITTEE ON HOUSE BILL 673

Senator Lindsay called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 673 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 673 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Lindsay, Chair; Zaffirini, Shapiro, Wentworth, and Moncrief.

CONFERENCE COMMITTEE ON HOUSE BILL 1702

Senator West called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1702 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 1702 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators West, Chair; Bivins, Cain, Ellis, and Ratliff.

SENATE BILL 996 WITH HOUSE AMENDMENTS

Senator Lindsay called SB 996 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Amendment

Amend SB 996 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to funeral expenses for children in foster care.

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

SECTION 1. Section 264.012, Family Code, is amended to read as follows:

Sec. 264.012. FUNERAL EXPENSES FOR CHILD IN FOSTER CARE. (a) The department shall request that the parents pay reasonable and necessary funeral expenses for a child for whom the department has been appointed managing conservator and who dies in foster care, including a request that if the parents have an insurance policy or a bank account for the child, that the parents spend the proceeds from the policy or money in the account on the funeral expenses. If the parents cannot pay all or part of the funeral expenses, the department shall [may ] spend funds appropriated for the child protective services program to pay reasonable and necessary funeral expenses for the [a ] child [for whom the department has been appointed managing conservator and who dies in foster care ].

(b) The department may accept donations, gifts, or in-kind contributions to cover the costs of any funeral expenses for children for whom the department has been appointed managing conservator.

(c) This section does not apply to a foster parent.

SECTION 2. This Act takes effect September 1, 1999.

SECTION 3. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

Floor Amendment No. 1

Amend CSSB 996 House Committee Report page 1 line 2, line 6, line 8, line 12, line 13, line 15 and line 19, by replacing the word "funeral" with the word "burial".

Amend page 1, line 16 by inserting the following after the word "expenses":

not to exceed $2000 per child.

The amendments were read.

Senator Lindsay moved that the Senate do not concur in the House amendments, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on SB 996 before appointment.

There were no motions offered.

The Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Lindsay, Chair; Wentworth, Carona, Moncrief, and Zaffirini.

CONFERENCE COMMITTEE ON HOUSE BILL 2825

Senator Bernsen called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 2825 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 2825 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Bernsen, Chair; Jackson, Haywood, Armbrister, and Duncan.

CONFERENCE COMMITTEE ON HOUSE BILL 3549

Senator Wentworth called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3549 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 3549 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Wentworth, Chair; Harris, Brown, Cain, and Ratliff.

SENATE BILL 982 WITH HOUSE AMENDMENT

Senator Madla called SB 982 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer, Senator Moncrief in Chair, laid the bill and the House amendment before the Senate.

Amendment

Amend SB 982 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to persons authorized to provide diabetes self-management training.

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

SECTION 1. It is the intent of the legislature that the health care providers authorized by this Act to provide diabetes self-management training or a component of diabetes self-management training be skilled and experienced professionals with education in diabetes, educational principles, and behavior strategies necessary to meet the needs of a patient diagnosed with diabetes and, to the extent possible, that the health care providers coordinate the care provided to the patient.

SECTION 2. Section 1, Article 21.53G, Insurance Code, is amended by adding Subdivision (5) to read as follows:

(5) "Nutrition counseling" has the meaning assigned by Section 2, Licensed Dietitian Act (Article 4512h, Vernon's Texas Civil Statutes).

SECTION 3. Section 4, Article 21.53G, Insurance Code, is amended to read as follows:

Sec. 4. DIABETES SELF-MANAGEMENT TRAINING. (a) Diabetes self-management training under this article must be provided by a health care practitioner or provider who is licensed, registered, or certified in this state to provide appropriate health care services and who is acting within the scope of practice authorized by the practitioner's or provider's license, registration, or certification. Self-management training includes:

(1) training provided to a qualified insured after the initial diagnosis of diabetes in the care and management of that condition, including nutrition [nutritional ] counseling and proper use of diabetes equipment and supplies;

(2) additional training authorized on the diagnosis of a physician or other health care practitioner of a significant change in the qualified insured's symptoms or condition that requires changes in the qualified insured's self-management regime; and

(3) periodic or episodic continuing education training when prescribed by an appropriate health care practitioner as warranted by the development of new techniques and treatments for diabetes.

(b) Coverage for diabetes self-management training provided by a health benefit plan under this article to a qualified insured must include coverage for the following, if provided on the written order of a physician or health care practitioner, including the written order of a health care practitioner practicing under protocols jointly developed with a physician:

(1) a diabetes self-management training program recognized by the American Diabetes Association;

(2) diabetes self-management training given by a multidisciplinary team:

(A) the non-physician members of which are coordinated by:

(i) a diabetes educator who is certified by the National Certification Board for Diabetes Educators; or

(ii) a person who has completed at least 24 hours of continuing education that meets guidelines established by the Texas Board of Health and that includes a combination of diabetes-related educational principles and behavioral strategies;

(B) that consists of at least a licensed dietitian and a registered nurse and may include a pharmacist and a social worker; and

(C) each member of which, other than a social worker, has recent didactic and experiential preparation in diabetes clinical and educational issues as determined by the member's licensing agency, in consultation with the commissioner of public health, unless the member's licensing agency, in consultation with the commissioner of public health, determines that the core educational preparation for the member's license includes the skills the member needs to provide diabetes self-management training;

(3) diabetes self-management training provided by a diabetes educator certified by the National Certification Board for Diabetes Educators; or

(4) diabetes self-management training in which one or more of the following components are provided:

(A) the nutrition counseling component provided by a licensed dietitian, for which the licensed dietitian shall be paid;

(B) the pharmaceutical component provided by a pharmacist, for which the pharmacist shall be paid;

(C) any component of the training provided by a physician assistant or registered nurse, for which the physician assistant or registered nurse shall be paid, except that the physician assistant or registered nurse may not be paid for providing a nutrition counseling or pharmaceutical component unless a licensed dietitian or pharmacist is unavailable to provide that component; or

(D) any component of the training provided by a physician.

(c) A person may not provide a component of diabetes self-management training under Subsection (b)(4) unless the subject matter of the component is within the scope of the person's practice.

SECTION 4. This Act takes effect September 1, 1999, and applies only to a health benefit plan that is delivered, issued for delivery, or renewed on or after January 1, 2000. A health benefit plan that is delivered, issued for delivery, or renewed before January 1, 2000, is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 5. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

Senator Madla moved that the Senate do not concur in the House amendment, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on SB 982 before appointment.

There were no motions offered.

The Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Madla, Chair; Lindsay, Nelson, Nixon, and Lucio.

CONFERENCE COMMITTEE ON HOUSE BILL 551

Senator Fraser called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 551 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 551 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Fraser, Chair; Ratliff, Sibley, Duncan, and Ellis.

CONFERENCE COMMITTEE ON HOUSE BILL 826

Senator Wentworth called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 826 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 826 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Wentworth, Chair; Cain, West, Harris, and Ratliff.

CONFERENCE COMMITTEE ON HOUSE BILL 932

Senator Shapleigh called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 932 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 932 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Shapleigh, Chair; Bernsen, Haywood, Jackson, and Shapiro.

CONFERENCE COMMITTEE ON HOUSE BILL 564

Senator Shapleigh called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 564 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 564 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Shapleigh, Chair; Lucio, Ogden, Sibley, and Truan.

SENATE BILL 339 WITH HOUSE AMENDMENT

Senator Madla called SB 339 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 339 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of mass gatherings; imposing a penalty.

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

SECTION 1. Subdivision (1), Section 751.002, Health and Safety Code, is amended to read as follows:

(1) "Mass gathering" means a gathering that is held outside the limits of a municipality and that attracts or is expected to attract more than 5,000 persons who will remain at the meeting location for more than five [12 ] continuous hours.

SECTION 2. Section 751.005, Health and Safety Code, is amended to read as follows:

Sec. 751.005. INVESTIGATION. (a) After a permit application is filed with the county judge, the county judge shall send a copy of the application to the county health authority, the county fire marshal or the person designated under Subsection (c), and the sheriff.

(b) The county health authority shall inquire into preparations for the mass gathering. At least five days before the date on which the hearing prescribed by Section 751.006 is held, the county health authority shall submit to the county judge a report stating whether the health authority believes that the minimum standards of health and sanitation prescribed by state and local laws, rules, and orders will be maintained.

(c) The county fire marshal shall investigate preparations for the mass gathering. If there is no county fire marshal in that county, the commissioners court shall designate a person to act under this section. At least five days before the date on which the hearing prescribed by Section 751.006 is held, the county fire marshal or the commissioners court designee shall submit to the county judge a report stating whether the fire marshal or designee believes that the minimum standards for ensuring public fire safety and order as prescribed by state and local laws, rules, and orders will be maintained.

(d) The sheriff shall investigate preparations for the mass gathering. At least five days before the date on which the hearing prescribed by Section 751.006 is held, the sheriff shall submit to the county judge a report stating whether the sheriff believes that the minimum standards for ensuring public safety and order that are prescribed by state and local laws, rules, and orders will be maintained.

(e) [(d) ] The county judge may conduct any additional investigation that the judge considers necessary.

(f) [(e) ] The county health authority, county fire marshal or commissioners court designee, and sheriff shall be available at the hearing prescribed by Section 751.006 to give testimony relating to their reports.

SECTION 3. Chapter 751, Health and Safety Code, is amended by adding Sections 751.012 and 751.013 to read as follows:

Sec. 751.012. INSPECTIONS. (a) The county health authority may inspect a mass gathering during the mass gathering to ensure that the minimum standards of health and sanitation prescribed by state and local laws, rules, and orders are being maintained. If the county health authority determines a violation of the minimum standards is occurring, the health authority may order the promoter of the mass gathering to correct the violation.

(b) The county fire marshal or the person designated under Section 751.005(c) may inspect a mass gathering during the mass gathering to ensure that the minimum standards for ensuring public fire safety and order as prescribed by state and local laws, rules, and orders are being maintained. If the marshal or commissioners court designee determines a violation of the minimum standards is occurring, the marshal or designee may order the promoter of the mass gathering to correct the violation.

(c) The sheriff may inspect a mass gathering during the mass gathering to ensure that the minimum standards for ensuring public safety and order prescribed by state and local laws, rules, and orders are being maintained. If the sheriff determines a violation of the minimum standards is occurring, the sheriff may order the promoter of the mass gathering to correct the violation.

(d) A promoter who fails to comply with an order issued under this section commits an offense. An offense under this section is a Class C misdemeanor.

Sec. 751.013. INSPECTION FEES. (a) A commissioners court may establish and collect a fee for an inspection performed under Section 751.012. The fee may not exceed the amount necessary to defray the costs of performing the inspections. The fee shall be deposited into the general fund of the county.

(b) A commissioners court may use money collected under this section to reimburse the county department or, if a state agency performs the inspection on behalf of the county, the state agency, the cost of performing the inspection.

SECTION 4. This Act applies only to a permit application under Chapter 751, Health and Safety Code, filed on or after the effective date of this Act.

SECTION 5. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

The amendment was read.

Senator Madla moved to concur in the House amendment to SB 339.

The motion prevailed by the following vote: Yeas 30, Nays 0.

Absent-excused: Luna.

SENATE BILL 1520 WITH HOUSE AMENDMENT

Senator Madla called SB 1520 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 1520 in SECTION 1 of the bill, in added Subdivision (8), Article 717q, Vernon's Texas Civil Statutes (Engrossed Printing, page 3, line 1), immediately following the last sentence, by adding the following:

A lease-leaseback agreement must be approved by a majority of the voters within the boundaries of the issuer if the agreement:

(A) involves a pledge of tax revenue; and

(B) is executed on or after September 1, 1999.

The amendment was read.

Senator Madla moved that the Senate do not concur in the House amendment, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on SB 1520 before appointment.

There were no motions offered.

The Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Madla, Chair; Nixon, Brown, Lucio, and Lindsay.

CONFERENCE COMMITTEE ON HOUSE BILL 3211

Senator Duncan called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3211 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 3211 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Duncan, Chair; Ratliff, Fraser, Moncrief, and Armbrister.

CONFERENCE COMMITTEE ON HOUSE BILL 1223

Senator Armbrister called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1223 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 1223 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Armbrister, Chair; Zaffirini, Wentworth, Shapiro, Shapleigh.

SENATE BILL 1451 WITH HOUSE AMENDMENT

Senator West called SB 1451 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer, Senator Moncrief in Chair, laid the bill and the House amendment before the Senate.

Amendment

Amend SB 1451 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the disposition of surplus and salvage property of certain institutions of higher education.

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

SECTION 1. Section 2175.302, Government Code, is amended to read as follows:

Sec. 2175.302. EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS [AND INSTITUTIONS AND AGENCIES OF HIGHER EDUCATION ]. This chapter does not apply to the disposition of surplus or salvage property by a state eleemosynary institution [or an institution or agency of higher education ].

SECTION 2. Subchapter F, Chapter 2175, Government Code, is amended by adding Section 2175.304 to read as follows:

Sec. 2175.304. EXCEPTION FOR INSTITUTIONS OF HIGHER EDUCATION. (a) This chapter does not apply to the disposition of surplus or salvage property of a university system or of an institution or agency of higher education except as provided by this section.

(b) The governing board of each university system or institution or agency of higher education included within the definition of "state agency" under Section 2151.002 shall establish written procedures for the disposition of surplus or salvage property of the system, institution, or agency. The procedures shall allow for the direct transfer of materials or equipment that can be used for instructional purposes to a public school or school district at a price or for other consideration to which the system, institution, or agency and the public school or school district agree or for no consideration as the system, institution, or agency determines appropriate.

(c) The procedures established under Subsection (b) must give preference to transferring the property directly to a public school or school district before disposing of the property in another manner. If more than one public school or school district seeks to acquire the same property on substantially the same terms, the system, institution, or agency shall give preference to a public school that is considered low-performing by the commissioner of education or to a school district that has a taxable wealth per student that entitles the district to an allotment of state funds under Subchapter F, Chapter 42, Education Code.

SECTION 3. Subchapter C, Chapter 61, Education Code, is amended by adding Section 61.085 to read as follows:

Sec. 61.085. ON-LINE SURPLUS PROPERTY RESOURCE. (a) The board shall establish and maintain an Internet site or similar facility accessible to school districts by telecommunication to allow an institution of higher education to provide notice to school districts in this state of any available surplus or salvage property of the institution that consists of instructional materials or that may be used for instructional purposes. The board shall operate the facility to allow a school district to make a direct inquiry to an institution regarding the possible acquisition of property by the school district.

(b) The board may charge a fee for an institution or school district to use the facility.

SECTION 4. This Act takes effect September 1, 1999.

SECTION 5. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator West, the Senate concurred in the House amendment to SB 1451 by a viva voce vote.

SENATE BILL 1804 WITH HOUSE AMENDMENT

Senator Barrientos called SB 1804 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 1804 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the calculation of the rollback tax rate of a taxing unit in certain circumstances.

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

SECTION 1. Section 26.04, Tax Code, is amended by adding Subsections (k), (l), (m), (n), (o), (p), and (q) to read as follows:

(k) This subsection applies to a taxing unit that has agreed by written contract to transfer all or part of the responsibility for funding a distinct department, function, or activity to another taxing unit and that reduces its taxation for the purpose of funding that distinct department, function, or activity if that reduced portion of the funding of that department, function, or activity in all or a majority of the territory of the taxing unit is continued by another existing taxing unit or by a new taxing unit. The rollback tax rate of a taxing unit to which this subsection applies in the first tax year in which a budget is adopted that reduces the funding of the department, function, or activity is calculated as otherwise provided by this section, except that last year's levy used to calculate the effective maintenance and operations rate of the unit is reduced by the decrease in the amount of maintenance and operations tax revenue spent by the taxing unit on the department, function, or activity compared to the amount of maintenance and operations tax revenue spent in the 12 months preceding the month in which the calculations required by this chapter are made. If the taxing unit did not fund all or part of that department, function, or activity for the full 12 months preceding the month in which the calculations required by this chapter are made, the taxing unit shall reduce last year's levy used for calculating the effective maintenance and operations rate of the taxing unit by the amount of the decrease in the amount of maintenance and operations tax compared to the amount of revenue spent in the last full fiscal year in which the taxing unit funded all or part of the department, function, or activity.

(l) This subsection applies to a taxing unit that has agreed by written contract to accept the transfer of all or part of the responsibility for funding a distinct department, function, or activity from another taxing unit and that funds all or part of that distinct department, function, or activity if the funding for a substantially similar department,

function, or activity in all or a majority of the territory of the taxing unit has been reduced by another taxing unit, including a dissolved taxing unit. The rollback tax rate of a taxing unit to which this subsection applies in the first tax year after the other taxing unit reduced the funding of the substantially similar department, function, or activity in which a budget is adopted that allocates revenue to the department, function, or activity is calculated as otherwise provided by this section, except that last year's levy used to calculate the effective maintenance and operations rate of the taxing unit is increased by the amount of the decrease of maintenance and operations tax revenue spent by the taxing unit that reduced funding for the substantially similar department, function, or activity compared to the amount of maintenance and operations tax revenue spent on that department, function, or activity in the 12 months preceding the month in which the calculations required by this chapter are made. If the taxing unit did not fund the department, function, or activity for the full 12 months preceding the month in which the calculations required by this chapter are made, the taxing unit may increase last year's levy used to calculate the effective maintenance and operations rate by an amount not to exceed the decrease in the amount of property tax revenue spent by the other taxing unit to fund the department, function, or activity compared to the amount of maintenance and operations tax revenue spent in the last full fiscal year before the other taxing unit reduced funding for the department, function, or activity.

(m) In Subsections (k) and (l), "funding" includes a payment made to another taxing unit in accordance with a written contract for the operation of the department, function, or activity. The term does not include a payment made by a taxing unit from funds received from another taxing unit in accordance with a written contract to operate the department, function, or activity.

(n) Notwithstanding any other provision of this section, for purposes of calculating the rollback tax rate of a taxing unit under Subsection (k) or (l), the effective maintenance and operations rate of the taxing unit is increased or reduced only by the rate that would generate the amount of ad valorem tax revenue spent by the taxing unit on that part of the funding of the department, function, or activity that is assumed or discontinued by the taxing unit. If the department, function, or activity has been funded by revenue sources other than ad valorem taxes, the taxing unit may use any reasonable method to calculate the amount of ad valorem tax revenue that is or has been spent to fund the department, function, or activity.

(o) In a year in which a taxing unit calculates an adjustment under Subsection (k) or (l), the taxing unit shall publish in the manner provided by Subsection (e) a schedule that includes the following elements:

(1) the name of the taxing unit transferring responsibility for funding of the department, function, or activity;

(2) the amount of property tax revenue spent by that taxing unit to operate the department, function, or activity in the 12 months preceding the month in which the calculations required by this chapter are made; and

(3) the name of the taxing unit that accepted funding responsibility for a distinct department, function, or activity in all or a majority of the territory of the taxing unit that transferred responsibility for funding of the distinct department, function, or activity.

(p) In the year immediately following a year in which the rollback tax rate of a taxing unit is increased under Subsection (l), the taxing unit shall publish in the manner provided by Subsection (e) a schedule that includes the following elements:

(1) the amount of property tax revenue spent by the taxing unit to fund the department, function, or activity for which the taxing unit's rollback tax rate was increased under Subsection (l) for the 12 months preceding the month in which the calculations required by this chapter are made; and

(2) the amount published by the taxing unit in the preceding tax year under Subsection (o)(2).

(q) This subsection and Subsections (k), (l), (m), (n), (o), and (p) expire January 1, 2001.

SECTION 2. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

The amendment was read.

On motion of Senator Barrientos, the Senate concurred in the House amendment to SB 1804 by a viva voce vote.

SENATE BILL 73 WITH HOUSE AMENDMENT

Senator Truan called SB 73 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 73 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a video teleconferencing pilot program to assist certain businesses in establishing international trade relationships.

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

SECTION 1. PILOT PROGRAM. (a) The International Trade and Technology Center at The University of Texas-Pan American shall develop and implement a video teleconferencing pilot program designed to assist small businesses in establishing international trade relationships by allowing the businesses access to certain video conferencing facilities for a fee.

(b) In developing the pilot program, the center shall:

(1) work in conjunction with small business development centers affiliated with public or private institutions of higher education and the General Services Commission;

(2) ensure that the pilot program is designed to allow small businesses with limited resources to explore trade possibilities with foreign countries before actually traveling to those countries;

(3) determine the amount of the usage fees to be charged to participants of the pilot program, which in the aggregate may not be more than the amount necessary to cover the cost of administering and implementing the pilot program;

(4) use available mobile telecommunications facilities; and

(5) set a timetable to implement and complete the pilot program.

(c) To cover the cost of administering and implementing the pilot program, the center may obtain federal foundation funds available for that purpose or private funds from any source.

SECTION 2. REPORTS. Not later than January 15, 2001, the International Trade and Technology Center at The University of Texas-Pan American shall submit to the governor and the legislature an initial report concerning the effectiveness of the pilot program. The center shall submit to the governor and the legislature a subsequent report not later than January 15, 2003.

SECTION 3. EFFECTIVE DATE AND DEADLINES. (a) This Act takes effect September 1, 1999.

(b) The International Trade and Technology Center at The University of Texas-Pan American should establish the pilot program required by this Act not later than January 1, 2000.

SECTION 4. EXPIRATION DATE. This Act expires September 1, 2004.

SECTION 5. EMERGENCY. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator Truan, the Senate concurred in the House amendment to SB 73 by a viva voce vote.

CONFERENCE COMMITTEE ON HOUSE BILL 1275

Senator Zaffirini called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 1275 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 1275 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Zaffirini, Chair; West, Carona, Barrientos, and Cain.

SENATE BILL 655 WITH HOUSE AMENDMENT

Senator Madla called SB 655 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer, Senator Moncrief in Chair, laid the bill and the House amendment before the Senate.

Amendment

Amend SB 655 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the creation of a defense base development authority; validating certain acts of a defense base development corporation; granting the right to issue bonds.

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

SECTION 1. Subtitle A, Title 12, Local Government Code, is amended by adding Chapter 378 to read as follows:

CHAPTER 378. DEFENSE BASE DEVELOPMENT AUTHORITIES

Sec. 378.001. DEFINITIONS. In this chapter:

(1) "Authority" means a defense base development authority established under this chapter.

(2) "Base property" means land inside the boundaries of the defense base for which the authority is established and improvements and personal property on that land.

(3) "Board" means the board of directors of the authority.

(4) "Bond" means an interest-bearing obligation issued by an authority under this chapter, including a bond, certificate, note, or other evidence of indebtedness.

(5) "Defense base" means a military installation or facility closed or realigned under the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note) and its subsequent amendments.

Sec. 378.002. ESTABLISHMENT; SUCCESSOR. (a) A municipality by resolution may establish an authority. The resolution must include a legal description of the base property. On adoption of the resolution, the authority is established as a special district and political subdivision of this state, with a boundary coterminous with the base property described in the resolution.

(b) When establishing an authority, the municipality may designate the authority in the municipality's resolution to be the successor in interest to a nonprofit corporation organized under the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes). On adoption of the resolution, the corporation is dissolved and the authority succeeds to all rights and liabilities of that corporation.

Sec. 378.003. PURPOSE AND NATURE OF AUTHORITY. (a) An authority is created to:

(1) accept title to or operate under a lease from the United States or any other person all or a part of the base property and areas around the base property; and

(2) engage in the economic development of the base property and areas around the base property.

(b) An authority exercises public and essential governmental functions.

Sec. 378.004. POWERS AND DUTIES OF AUTHORITY. (a) An authority may exercise power necessary or convenient to carry out a purpose of this chapter, including the power to:

(1) adopt an official seal, or alter it;

(2) adopt rules;

(3) enter into a contract or incur a liability;

(4) acquire and dispose of money;

(5) select a depository;

(6) establish a system of accounts for the authority;

(7) invest funds in accordance with Chapter 2256, Government Code;

(8) set the fiscal year for the authority;

(9) adopt an annual operating budget for major expenditures before the beginning of the fiscal year;

(10) borrow money or issue a bond in an amount that does not exceed the maximum amount set by the governing body of the municipality;

(11) loan money;

(12) acquire, lease, lease-purchase, convey, grant a mortgage, or otherwise dispose of a property right, including a right regarding base property;

(13) lease property located on the base property to a person to effect the purposes of this chapter;

(14) request and accept a donation, grant, guaranty, or loan from any source;

(15) operate and maintain an office;

(16) charge for a facility or service; and

(17) exercise a power granted to a municipality by Chapter 380.

(b) An authority shall establish and maintain an office and agent registered with the secretary of state.

(c) An authority shall endeavor to raise revenue sufficient to pay its debts.

Sec. 378.005. SUITS; INDEMNITY. (a) An authority may sue and be sued.

(b) In a suit against an authority, process may be served on the president, vice president, or registered agent.

(c) An authority may not be required to give a bond on an appeal or writ of error taken in a civil case that the authority is prosecuting or defending.

(d) An authority may indemnify an authority employee or board member or a former authority employee or board member for necessary expenses and costs, including attorney's fees, incurred by that person in connection with a claim asserted against that person if:

(1) the claim relates to an act or omission of the person when acting in the scope of the person's board membership or authority employment; and

(2) the person has not been found liable or guilty on the claim.

Sec. 378.006. UTILITIES. (a) An authority may accept an electric, gas, potable water, or sanitary sewage utility conveyed by the United States, but may not operate it.

(b) An authority shall convey a utility received under Subsection (a) to the municipality that established the authority. The municipality shall pay the authority fair market value for the utility.

(c) If state or federal law prohibits the operation or ownership of the utility by the municipality, the municipality shall convey the utility to an entity that may operate it. The municipality may charge fair market value for the conveyance.

Sec. 378.007. BOARD OF DIRECTORS. (a) The board consists of 11 members and is responsible for the management, operation, and control of the authority.

(b) The governing body of the municipality that established the authority shall appoint each board member to a term not exceeding two years. A vacancy on the board is filled in the same manner as the original appointment.

(c) The municipality may remove a board member by adopting a resolution.

(d) The members of the board shall elect from its membership a president, vice president, secretary, and treasurer. The board by rule may provide for the election of other officers.

(e) A board member serves without compensation but may be reimbursed for a reasonable and necessary expense incurred in the performance of an official duty.

(f) The board shall adopt rules for its proceedings and may employ and compensate persons to carry out the powers and duties of the authority.

Sec. 378.008. POWERS AND DUTIES OF BOARD. (a) The board shall:

(1) monitor the proposed closing of the defense base;

(2) manage and operate the defense base transition and development on behalf of the municipality that established the authority;

(3) review options related to the most appropriate use of the defense base;

(4) conduct a study on issues related to the closure, conversion, redevelopment, and future use of the defense base;

(5) formulate, adopt, and implement a plan to convert and redevelop the defense base; and

(6) submit the plan to an appropriate agency or agencies of the federal government.

(b) For the base property and areas adjacent to the base property the board shall:

(1) promote economic development;

(2) attempt to reduce unemployment;

(3) encourage the development of new industry by private businesses; and

(4) encourage financing of projects designated under Section 378.009.

Sec. 378.009. REDEVELOPMENT PROJECTS. (a) The board may designate as a redevelopment project, a project that relates to:

(1) the development of base property and the surrounding areas; or

(2) the development of a defense base in the territory of the municipality that established the authority and areas surrounding that base.

(b) A project designated under Subsection (a) is for a public purpose.

Sec. 378.010. BONDS. (a) An authority may issue bonds only if the municipality that established the authority authorizes the issuance by resolution.

(b) A bond issued under this chapter must:

(1) be payable solely from authority revenue;

(2) mature not later than 40 years after its date of issuance; and

(3) state on its face that it is not an obligation of this state or the municipality.

Sec. 378.011. TAX EXEMPTIONS. (a) An authority's property, income, and operations are exempt from taxes imposed by the state or a political subdivision of the state.

(b) Section 25.07(a), Tax Code, does not apply to a leasehold or other possessory interest granted by an authority for a project designated under Section 378.009(a) except to the extent that it applies to a leasehold or other possessory interest in real property constituting a project described by Subsection (k), Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as that Act is in effect on January 1, 1999. This subsection does not apply to personal property owned or used by a lessee or other person who holds a possessory interest granted by an authority for a project designated under Section 378.009(a).

Sec. 378.012. DISSOLUTION. The governing body of a municipality that established the authority by resolution may dissolve the authority after all debts or obligations of the authority have been satisfied. Property of the authority that remains after dissolution is conveyed to the municipality.

SECTION 2. (a) For purposes of this section, a "defense base development corporation" means a corporation established under the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) for the purpose of promoting projects regarding a military base closure or realignment under the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note) and its subsequent amendments.

(b) Each of the following acts of a defense base development corporation is validated and confirmed as of the date it occurred:

(1) each act or proceeding of the corporation taken before March 1, 1999;

(2) the election or appointment and each act of a director or other official of the corporation who took office before the effective date of this Act;

(3) each act or proceeding relating to a bond or other obligation of the corporation authorized before the effective date of this Act; and

(4) each act or proceeding relating to the entity's incorporation under the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes).

(c) This section does not apply to:

(1) an act, proceeding, bond, or obligation the validity of which is the subject of litigation that is pending on the effective date of this Act;

(2) an election or appointment of a director or official the validity of which is the subject of litigation that is pending on the effective date of this Act;

(3) an act or proceeding that was void or that, under a statute of this state at the time the action or proceeding occurred, was a misdemeanor or felony; or

(4) an act or proceeding that has been held invalid by a final judgment of a court.

SECTION 3. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

The amendment was read.

Senator Madla moved that the Senate do not concur in the House amendment, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on SB 655 before appointment.

There were no motions offered.

The Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Madla, Chair; Shapleigh, Lucio, Ogden, and Carona.

(Senator Ratliff in Chair)

SENATE BILL 155 WITH HOUSE AMENDMENT

Senator Lindsay called SB 155 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amendment to SB 155:

Add the following to Section 3(c)(1) & Section 3(c)(2):

(1) In print at least six inches in height, the rate that is normally charged for parking a vehicle in the facility; and

(2) In print at least six inches in height, the rate that is charged for parking a vehicle in the facility in connection with a special event.

The amendment was read.

On motion of Senator Lindsay, the Senate concurred in the House amendment to SB 155 by a viva voce vote.

CONFERENCE COMMITTEE ON HOUSE BILL 2896

Senator Moncrief called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 2896 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 2896 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Moncrief, Chair; Shapleigh, Lindsay, Nelson, and West.

CONFERENCE COMMITTEE ON HOUSE BILL 153

Senator Moncrief called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 153 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 153 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Moncrief, Chair; Ratliff, Whitmire, Armbrister, and Nelson.

CONFERENCE COMMITTEE ON HOUSE BILL 2147

Senator Shapleigh called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 2147 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 2147 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Shapleigh, Chair; Ogden, Barrientos, Duncan, and Zaffirini.

CONFERENCE COMMITTEE ON HOUSE BILL 577

Senator Nelson called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 577 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 577 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Nelson, Chair; Shapiro, Jackson, Armbrister, and Moncrief.

CONFERENCE COMMITTEE ON HOUSE BILL 3016

Senator Sibley called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 3016 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 3016 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Sibley, Chair; Madla, Jackson, Nelson, and Armbrister.

SENATE BILL 374 WITH HOUSE AMENDMENTS

Senator Zaffirini called SB 374 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Floor Amendment No. 2

1. Amend the Engrossed version of SB 374 on page 18, line 16, before "Not" insert the following:

The Texas Planning Council for Developmental Disabilities will serve as the lead agency in convening working meetings, coordinating and completing the report.

2. On page 18, line 19, insert the following:

(b) The report will include recommendations addressing the following:

(1) fiscal and program barriers to consumer friendly services;

(2) progress toward a service delivery system individualized to each consumer based on functional needs;

(3) progress on the development of local cross-disability access structures;

(4) projections of future long-term care services needs and availability; and

(5) consumer satisfaction, consumer preferences and desired outcomes.

3. Renumber subsequent sections appropriately.

Floor Amendment No. 3

Amend the Engrossed version of SB 374 on page 1, line 22, (new Section 531.02481, Government Code) by striking subsection (2) and replacing with the following:

(2) develop a system of blended funds, consistent with the requirements of federal law and the General Appropriations Act, to allow the community to customize services to fit individual community needs; and

Committee Amendment No. 4

Amend SB 374 as follows:

(1) In the recital to SECTION 1.02 of the bill (Senate Engrossment, page 3, line 3), strike "Section 22.034" and substitute "Sections 22.034 and 22.035".

(2) In SECTION 1.02 of the bill (Senate Engrossment, page 5, between lines 20 and 21), add a new Section 22.035, Human Resources Code, to read as follows:

Sec. 22.035. WORK GROUP ON CHILDREN'S LONG-TERM CARE AND HEALTH PROGRAMS. (a) A work group is created to assist the commissioner of health and human services, the department, and the Texas Department of Health in the creation of a system for families and children to administer long-term care and health programs for children.

(b) The commissioner of health and human services shall appoint the members of the work group, which must include the following:

(1) a consumer of long-term care and health programs for children;

(2) a relative of a consumer of long-term care and health programs for children;

(3) a representative from an organization that is an advocate for consumers of long-term care and health programs for children;

(4) a representative from a state agency that provides long-term care and health programs for children;

(5) a person from a private entity that provides long-term care and health programs for children; and

(6) a person with expertise in the availability of funding and the application of funding formulas for children's long-term care and health services.

(c) The department and the Texas Department of Health shall equally provide administrative support, including staff, to the work group.

(d) A member of the work group serves at the will of the commissioner of health and human services.

(e) The commissioner of health and human services shall appoint a member of the work group to serve as a presiding officer.

(f) The work group shall meet at the call of the presiding officer.

(g) A member of the work group receives no additional compensation for serving on the work group. Persons serving on the work group shall be reimbursed for travel and other expenses necessary for participation as provided in the General Appropriations Act.

(h) The work group shall study and make recommendations in the following areas:

(1) access of a child or a child's family to services with a single case manager;

(2) the transition needs of children who reach an age at which they are no longer eligible for services at the Texas Department of Health;

(3) the blending of funds, including case management funding, for children needing long-term care and health services; and

(4) collaboration and coordination of children's services between the department, the Texas Department of Health, and any other agency determined to be applicable by the work group.

(i) Not later than September 1 of each even-numbered year, the work group shall report on its findings and recommendations to the commissioner of health and human services.

(j) After evaluating and considering recommendations reported under Subsection (e), the Health and Human Services Commission shall adopt rules to implement guidelines for providing long-term care and health services to children.

(k) The work group is not subject to Chapter 2110, Government Code.

(3) After SECTION 1.18 of the bill (Senate Engrossment, page 22, between lines 7 and 8), insert two new SECTIONS to the bill to be numbered appropriately to read as follows and renumber the subsequent sections of Article 1 of the bill appropriately:

SECTION . Not later than December 1, 1999, the commissioner of health and human services shall appoint the members of the work group created by Section 22.035, Human Resources Code, as added by this Act.

SECTION . (a) On September 1, 2000, all powers, duties, functions, and activities relating to the Medically Dependent Children's Waiver Program assigned to or performed by the Texas Department of Health immediately before that date are transferred to the Texas Department of Human Services.

(b) All employees of the Texas Department of Health who primarily perform duties related to the program listed in Subsection (a) of this section become employees of the Texas Department of Human Services, to be assigned duties by the commissioner of human services.

(c) A rule or form adopted by the Texas Department of Health that relates to the program listed in Subsection (a) of this section is a rule or form of the Texas Department of Human Services and remains in effect until altered by the agency.

(d) A reference in law or an administrative rule to the Texas Department of Health that relates to the program listed in Subsection (a) of this section means the Texas Department of Human Services.

(e) A license, permit, or certification in effect that was issued by the Texas Department of Health for the program listed in Subsection (a) of this section is continued in effect as a license, permit, or certification of the Texas Department of Human Services.

(f) A complaint, investigation, or other proceeding pending before the Texas Department of Health that is related to the program listed in Subsection (a) of this section is transferred without change in status to the Texas Department of Human Services.

(g) On October 1, 1999:

(1) all funds, obligations, and contracts of the Texas Department of Health related to the program listed in Subsection (a) of this section are transferred to the Texas Department of Human Services; and

(2) all property and records in the custody of the Texas Department of Health related to the program listed in Subsection (a) of this section and all funds appropriated by the legislature for the program listed in Subsection (a) of this section are transferred to the Texas Department of Human Services.

Floor Amendment No. 5

Amend Committee Amendment No. 4 to SB 374 as follows:

(1) In Item (2), amending SECTION 1.02 of the bill, in added Section 22.035(h), Human Resources Code (House Committee Printing, page 38, line 6), strike "and" at the end of Subdivision (3).

(2) In Item (2), amending SECTION 1.02 of the bill, in added Section 22.035(h), Human Resources Code (House Committee Printing, page 38, line 9), between "group" and the period at the end of Subdivision (4), insert:

; and

(5) budgeting and the use of funds appropriated for children's long-term care services and children's health services from the Comprehensive Settlement Agreement and Release filed in the case styled The State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, in the United States District Court, Eastern District of Texas

Floor Amendment No. 6

Amend Committee Amendment No. 4 to SB 374 as follows:

(1) In Item (3), in Subsection (a) of the second added unnumbered SECTION after SECTION 1.18 of the bill (House Committee Printing, page 39, line 1), strike "2000" and substitute "2001."

(2) In Item (3), in subsection (g) of the second added unnumbered SECTION after SECTION 1.18 of the bill (House Committee Printing, page 40, line 1), strike "1999" and substitute "2001."

(3) Amending SECTION 1.02 of the bill, in added section 22.035(j), Human Resources Code (House Committee Printing, page 39, line 14), by striking "(e)" and substituting "(i)".

Floor Amendment No. 7

Amend SB 374 as follows:

(1) After SECTION 1.01 of the bill (House Committee Printing, page 3, between lines 1 and 2), insert a new SECTION 1.02 to the bill to read as follows and renumber the subsequent sections of Article 1 of the bill appropriately:

SECTION 1.02. Chapter 22, Human Resources Code, is amended by adding Section 22.011, to read as follows:

Sec. 22.011. DEFINITION. In this chapter, except in Section 22.032, "long-term care services" means the provision of personal care and assistance related to health and social services given episodically or over a sustained period to assist individuals of all ages and their families to achieve the highest level of functioning possible, regardless of the setting in which the assistance is given.

(2) In the recital to SECTION 1.03 of the bill (House Committee Printing, page 5, line 23), strike "22.035" and substitute "22.036".

(3) In SECTION 1.03 of the bill (House Committee Printing, page 6, line 3), in redesignated Section 22.035, Human Resources Code, strike "22.035" and substitute "22.036".

(4) In SECTION 1.06 of the bill, in added Section 101.0012, Human Resources Code (House Committee Printing, page 11, between lines 12 and 13), insert a new subsection (d) to read as follows:

(d) In this section, "independent living philosophy" means control over one's life based on the choice of acceptable options that minimize reliance on others in making a decision or in performing every day activities. The term includes:

(1) managing one's affairs;

(2) participating in day to day life in the community;

(3) fulfilling a range of social roles; and

(4) making decisions that lead to self-determination and the minimization of physical and psychological dependence upon others.

(5) In SECTION 2.06 of the bill, in added Section 21.0033, Human Resources Code (House Committee Printing, page 29, between lines 12 and 13), insert a new Subsection (d) to read as follows:

(d) In this section, "independent living philosophy" means control over one's life based on the choice of acceptable options that minimize reliance on others in making a decision or in performing every day activities. The term includes:

(1) managing one's affairs;

(2) participating in day to day life in the community;

(3) fulfilling a range of social roles; and

(4) making decisions that lead to self-determination and the minimization of physical and psychological dependence on others.

Floor Amendment No. 8

Amend SB 374, in Article 1 of the bill, by inserting the following sections, appropriately numbered, and renumbering the subsequent sections of the article accordingly:

SECTION . Section 242.309, Health and Safety Code, as added by Section 1.01, Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997 (effective until federal determination of failure to comply with federal regulations), is amended to read as follows:

Sec. 242.309. PROVISIONAL LICENSE. (a) The board shall issue [On application, the department shall grant ] a provisional license to an applicant currently licensed in another jurisdiction who seeks a license in this state and who [under this subchapter. An applicant for a provisional license under this section must ]:

(1) has been [be ] licensed in good standing as a nursing facility administrator for at least two years in another jurisdiction, including a foreign country, [in another state, the District of Columbia, or a territory of the United States ] that has licensing requirements that are substantially equivalent to the requirements of this subchapter;

(2) has [have ] passed a national or other examination recognized by the board relating to the practice of nursing facility administration; and

(3) is [be ] sponsored by a person licensed by the board under this subchapter with whom the provisional license holder will [may ] practice during the time the person holds a provisional license [under this section ].

(b) The board may waive [An applicant for a provisional license may be excused from ] the requirement of Subsection (a)(3) for an applicant if the board [department ] determines that compliance with that subsection would be [constitutes ] a hardship to the applicant.

(c) A provisional license is valid until the date the board [department ] approves or denies the provisional license holder's application for a license. The board [department ] shall issue a license under this subchapter to the provisional license holder [of a provisional license under this section ] if:

(1) the provisional license holder is eligible to be licensed under [passes the examination required by ] Section 242.306 [242.306(c) ]; or

(2) the provisional license holder passes the part of the examination under Section 242.307 that relates to the applicant's knowledge and understanding of the laws and rules relating to the practice of nursing facility administration in this state and:

(A) the board [department ] verifies that the provisional license holder meets [has ] the academic and experience requirements for a license under this subchapter; and

(B) [(3) ] the provisional license holder satisfies all other license requirements under this subchapter.

(d) The board must approve or deny [department shall complete the processing of ] a provisional license holder's application for a license not later than the 180th day after the date the provisional license is issued. The board [department ] may extend the 180-day period if the results of an examination have not been received by the board before the end of that period [this time in order to receive the results of a national examination or other examination administered or graded by an outside organization recognized by the department ].

(e) The board may establish a fee for provisional licenses in an amount reasonable and necessary to cover the cost of issuing the license.

SECTION . Section 242.310, Health and Safety Code, as added by Section 1.01, Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997 (effective until federal determination of failure to comply with federal regulations), is amended to read as follows:

Sec. 242.310. LICENSE RENEWAL. (a) A person who is otherwise eligible to renew a license may renew an unexpired license by paying [to the department before the expiration of the license ] the required renewal fee to the department before the expiration date of the license. A person whose license has expired may not engage in activities that require a license until the license has been renewed.

(b) A person whose [If a person's ] license has been expired for 90 days or less [, the person ] may renew the license by paying to the department a [the required ] renewal fee [and a fee ] that is equal to 1-1/2 times the normally required renewal fee [one-half of the examination fee for the license ].

(c) A person whose [If a person's ] license has been expired for more [longer ] than 90 days but less than one year[, the person ] may renew the license by paying to the department a renewal fee that is equal to two times the normally required renewal fee [all unpaid renewal fees and a fee that is equal to the examination fee for the license ].

(d) A person whose [If a person's ] license has been expired for one year or more [longer, the person ] may not renew the license. The person may obtain a new license by complying with the requirements and procedures, including the examination requirements, for obtaining an original license.

(e) A [However, the department may renew without reexamination an expired license of a ] person who was licensed in this state, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of application may obtain a new license without reexamination. The [Such ] person must pay to the department a fee that is equal to two times the normally required renewal [the examination ] fee for the license.

(f) Not later than the 31st day [(e) At least 30 days ] before the date [expiration of ] a person's license is scheduled to expire, the department shall send written notice of the impending [license ] expiration to the person at the person's [license holder's ] last known address according to the records of the department.

SECTION . Section 242.314, Health and Safety Code, as added by Section 2.01, Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997 (effective upon federal determination of failure to comply with federal regulations), is amended to read as follows:

Sec. 242.314. PROVISIONAL LICENSE. (a) The [On application, the ] board shall issue [grant ] a provisional license to an applicant currently licensed in another jurisdiction who seeks a license in this state and who [under this subchapter. An applicant for a provisional license under this section must ]:

(1) has been [be ] licensed in good standing as a nursing facility administrator for at least two years in another jurisdiction, including a foreign country, [state, the District of Columbia, or a territory of the United States ] that has licensing requirements that are substantially equivalent to the requirements of this subchapter;

(2) has [have ] passed a national or other examination recognized by the board relating to the practice of nursing facility administration; and

(3) is [be ] sponsored by a person licensed by the board under this subchapter with whom the provisional license holder will [may ] practice during the time the person holds a provisional license [under this section ].

(b) The board may waive [An applicant for a provisional license may be excused from ] the requirement of Subsection (a)(3) for an applicant if the board determines that compliance with that subsection would be [constitutes ] a hardship to the applicant.

(c) A provisional license is valid until the date the board approves or denies the provisional license holder's application for a license. The board shall issue a license under this subchapter to the provisional license holder [of a provisional license under this section ] if:

(1) the provisional license holder is eligible to be licensed under [passes the examination required by ] Section 242.311 [242.311(c) ]; or

(2) the provisional license holder passes the part of the examination under Section 242.312 that relates to the applicant's knowledge and understanding of the laws and rules relating to the practice of nursing facility administration in this state and:

(A) the board verifies that the provisional license holder meets [has ] the academic and experience requirements for a license under this subchapter; and

(B) [(3) ] the provisional license holder satisfies any other license requirements under this subchapter.

(d) The board must approve or deny [shall complete the processing of ] a provisional license holder's application for a license not later than the 180th day after the date the provisional license is issued. The board may extend the 180-day period if the results of an examination have not been received by the board before the end of that period [this time in order to receive the results of a national examination or other examination administered or graded by an outside organization recognized by the board ].

(e) The board may establish a fee for provisional licenses in an amount reasonable and necessary to cover the cost of issuing the license.

SECTION . Section 242.315, Health and Safety Code, as added by Section 2.01, Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997 (effective upon federal determination of failure to comply with federal regulations), is amended to read as follows:

Sec. 242.315. LICENSE RENEWAL. (a) A person who is otherwise eligible to renew a license may renew an unexpired license by paying [to the board before the expiration of the license ] the required renewal fee to the board before the expiration date of the license. A person whose license has expired may not engage in activities that require a license until the license has been renewed.

(b) A person whose [If a person's ] license has been expired for 90 days or less [, the person ] may renew the license by paying to the board a [the required ] renewal fee that is equal to 1-1/2 times the normally required fee [and a fee that is one-half of the examination fee for the license ].

(c) A person whose [If a person's ] license has been expired for more [longer ] than 90 days but less than one year[, the person ] may renew the license by paying to the board a [all unpaid ] renewal [fees and a ] fee that is equal to two times the normally required renewal fee [the examination fee for the license ].

(d) A person whose [If a person's ] license has been expired for one year or more [longer, the person ] may not renew the license. The person may obtain a new license by complying with the requirements and procedures, including the examination requirements, for obtaining an original license.

(e) A [However, the board may renew without reexamination an expired license of a ] person who was licensed in this state, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of application may obtain a new license without reexamination. The person must pay to the board a fee that is equal to two times the normally required renewal [the examination ] fee for the license.

(f) Not later than the 31st day [(e) At least 30 days ] before the date [expiration of ] a person's license is scheduled to expire, the board shall send written notice of the impending [license ] expiration to the person at the person's [license holder's ] last known address according to the records of the board.

SECTION . The changes in law made by this article to Section 242.309, Health and Safety Code, as added by Section 1.01, Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997, Section 242.310, Health and Safety Code, as added by Section 1.01, Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997, Section 242.314, Health and Safety Code, as added by Section 2.01, Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997, and Section 242.315, Health and Safety Code, as added by Section 2.01, Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997, relating to the qualifications for a license issued by the Texas Department of Human Services apply only to an application for a license made on or after the effective date of this article. An application made for a license issued by the Texas Department of Human Services before the effective date of this article is governed by the law in effect on the date the application was made, and the former law is continued in effect for that purpose.

Floor Amendment No. 9

Amend SB 374, in Article 1 of the bill, by inserting the following sections, appropriately numbered, and renumbering the subsequent sections of the article accordingly:

SECTION . Section 22.018, Human Resources Code, is amended to read as follows:

Sec. 22.018. COOPERATION WITH STATE OFFICE OF ADMINISTRATIVE HEARINGS [DIVISION ]. (a) The department and the chief administrative law judge of the State Office of Administrative Hearings shall adopt a memorandum of understanding under which the State Office of Administrative Hearings, on behalf of the department, conducts all contested case hearings authorized or required by law to be conducted by the department under the administrative procedure law, [shall establish and maintain a hearings division that is separate from the legal division to administer each hearing held under ] Chapter 2001, Government Code.

(b) The memorandum of understanding shall require the chief administrative law judge, the department, and the commissioner to cooperate in connection with a contested case hearing and may authorize the State Office of Administrative Hearings to perform any administrative act, including giving of notice, that is required to be performed by the department or commissioner [Neither the department nor the department's legal division may directly or indirectly influence a decision or the decision-making process of the hearings division ].

(c) The memorandum of understanding shall address whether the administrative law judge who conducts a contested case hearing for the State Office of Administrative Hearings on behalf of the department shall:

(1) enter the final decision in the case after completion of the hearing; or

(2) propose a decision to the department or the commissioner for final consideration.

(d) The department by interagency contract shall reimburse the State Office of Administrative Hearings for the costs incurred in conducting contested case hearings for the department. The department may pay an hourly fee for the costs of conducting those hearings or a fixed annual fee negotiated biennially by the department and the State Office of Administrative Hearings to coincide with the department's legislative appropriations request.

(e) A reference in law to the hearings division of the department is considered to be a reference to the State Office of Administrative Hearings when used in relation to a contested case hearing under the administrative procedure law, Chapter 2001, Government Code.

SECTION . (a) The change in law made to Section 22.018, Human Resources Code, by this article relating to a contested case hearing conducted by the State Office of Administrative Hearings on behalf of the Texas Department of Human Services applies only to a hearing that begins on or after January 1, 2000. Notwithstanding any other provision of this article, a hearing that begins before that date is governed by the law in effect at the time the hearing begins, and that law is continued in effect for that purpose.

(b) The Commissioner of Human Services and the chief administrative law judge of the State Office of Administrative Hearings may agree to transfer contested cases pending before the Texas Department of Human Services to the State Office of Administrative Hearings before January 1, 2000.

Floor Amendment No. 10

Amend SB 374 by striking SECTION 1.20 of the bill (House Committee Printing, page 22, line 20, through page 23, line 13) and substituting the following:

SECTION 1.20. (a) The Health and Human Services Commission shall study the feasibility of a subacute care pilot project. The Texas Department of Human Services and the Texas Department of Health shall cooperate with and assist the commission in this study. In conducting the study, the commission shall consider:

(1) estimates of the potential fiscal impact, including the potential to save money;

(2) the impact of subacute care on quality of care;

(3) reimbursement under the state's reimbursement and regulatory policies;

(4) the capacity of facilities in this state to provide subacute care; and

(5) the impact of subacute care reimbursement on Medicaid, including managed care initiatives.

(b) Not later than September 1, 2000, the Health and Human Services Commission shall submit a report on the feasibility of a subacute care pilot project to the governor, lieutenant governor, speaker of the house of representatives, and chair of each legislative committee with jurisdiction over long-term care.

(c) This section expires September 1, 2001.

Floor Amendment No. 11

Amend SB 374 by inserting the following appropriately numbered ARTICLE and renumbering existing ARTICLES and SECTIONS of the bill appropriately:

ARTICLE .

CHILDREN WITH SPECIAL HEALTH CARE NEEDS

SECTION . Section 35.001, Health and Safety Code, is amended to read as follows:

Sec. 35.001. SHORT TITLE. This chapter may be cited as the Children with Special Health Care Needs [Chronically Ill and Disabled Children's ] Services Act.

SECTION . Chapter 35, Health and Safety Code, is amended by adding Sections 35.0021 and 35.0022 to read as follows:

Sec. 35.0021. DEFINITIONS. In this chapter:

(1) "Case management services" includes:

(A) coordinating medical services, marshaling available assistance, serving as a liaison between the child and the child's family and caregivers, insurance services, and other services needed to improve the well-being of the child and the child's family; and

(B) counseling for the child and the child's family about measures to prevent the transmission of AIDS or HIV and the availability in the geographic area of any appropriate health care services, such as mental health care, psychological health care, and social and support services.

(2) "Child with special health care needs" has the meaning assigned by Section 35.0022.

(3) "Dentist" means a person licensed by the State Board of Dental Examiners to practice dentistry in this state.

(4) "Facility" includes a hospital, an ambulatory surgical center, and an outpatient clinic.

(5) "Family support services" means support, resources, or other assistance provided to the family of a child with special health care needs. The term may include services described by Part A of the Individuals with Disabilities Education Act (20 U.S.C. Section 1400 et seq.), as amended, and permanancy planning, as that term is defined by Section 531.151, Government Code.

(6) "Other benefit" means a benefit, other than a benefit provided under this chapter, to which a person is entitled for payment of the costs of services provided under the program, including benefits available from:

(A) an insurance policy, group health plan, health maintenance organization, or prepaid medical or dental care plan;

(B) Title XVIII, Title XIX, or Title XXI of the Social Security Act (42 U.S.C. Sections 1395 et seq., 1396 et seq., and 1397aa et seq.), as amended;

(C) the Department of Veterans Affairs;

(D) the Civilian Health and Medical Program of the Uniformed Services;

(E) workers' compensation or any other compulsory employers' insurance program;

(F) a public program created by federal or state law or the ordinances or rules of a municipality or other political subdivision of the state, excluding benefits created by the establishment of a municipal or county hospital, a joint municipal-county hospital, a county hospital authority, a hospital district, or the facilities of a publicly supported medical school; or

(G) a cause of action for the cost of care, including medical care, dental care, facility care, and medical supplies, required for a person applying for or receiving services from the department, or a settlement or judgment based on the cause of action, if the expenses are related to the need for services provided under this chapter.

(7) "Physician" means a person licensed by the Texas State Board of Medical Examiners to practice medicine in this state.

(8) "Program" means the services program for children with special health care needs.

(9) "Provider" means a person who delivers services purchased by the department for the purposes of this chapter.

(10) "Rehabilitation services" means the process of the physical restoration, improvement, or maintenance of a body function destroyed or impaired by congenital defect, disease, or injury and includes:

(A) facility care, medical and dental care, and occupational, speech, and physical therapy;

(B) the provision of braces, artificial appliances, durable medical equipment, and other medical supplies; and

(C) other types of care specified by the board in the program rules.

(11) "Services" means the care, activities, and supplies provided under this chapter or program rules, including medical care, dental care, facility care, medical supplies, occupational, physical, and speech therapy, and other care specified by program rules.

(12) "Specialty center" means a facility and staff that meet minimum standards established under the program and are designated by the board for program use in the comprehensive diagnostic and treatment services for a specific medical condition.

(13) "Support" means to contribute money or services necessary for a person's maintenance, including food, clothing, shelter, transportation, and health care.

Sec. 35.0022. CHILD WITH SPECIAL HEALTH CARE NEEDS. (a) In this chapter, "child with special health care needs" means a person who:

(1) is younger than 21 years of age and who has a chronic physical or developmental condition; or

(2) has cystic fibrosis, regardless of the person's age.

(b) The term "child with special health care needs" may include a person who has a behavioral or emotional condition that accompanies the person's physical or developmental condition. The term does not include a person who has a behavioral or emotional condition without having an accompanying physical or developmental condition.

SECTION . Section 35.003, Health and Safety Code, is amended to read as follows:

Sec. 35.003. [CHRONICALLY ILL AND DISABLED CHILDREN'S ] SERVICES PROGRAM FOR CHILDREN WITH SPECIAL HEALTH CARE NEEDS. (a) The program is in the department to provide services to eligible [chronically ill and disabled ] children with special health care needs. The program shall provide:

(1) early identification of [chronically ill and disabled ] children with special health care needs;

(2) diagnosis and evaluation of [chronically ill and disabled ] children with special health care needs;

(3) rehabilitation services to [chronically ill and disabled ] children with special health care needs;

(4) development and improvement of standards and services for [chronically ill and disabled ] children with special health care needs; [and ]

(5) case management services;

(6) other family support services; and

(7) access to health benefits plan coverage under Section 35.0031.

(b) The board by rule shall:

(1) specify the type, amount, and duration of services to be provided under this chapter;

[(2) specify the diseases and conditions covered by the program; ] and

(2) [(3) ] permit the payment of insurance premiums for eligible children.

(c) If budgetary limitations exist, the board by rule shall establish a system of priorities relating to the types of services or the classes of persons eligible for the services. A waiting list of eligible persons may be established if necessary for the program to remain within the budgetary limitations. The department shall collect from each applicant for services who is placed on a waiting list appropriate information to facilitate contacting the applicant when services become available and to allow efficient enrollment of the applicant in those services. The information collected must include:

(1) the applicant's name, address, and phone number;

(2) the name, address, and phone number of a contact person other than the applicant;

(3) the date of the applicant's earliest application for services;

(4) the applicant's functional needs;

(5) the range of services needed by the applicant; and

(6) a date on which the applicant is scheduled for reassessment.

(d) The program may provide:

(1) transportation and subsistence for an eligible [chronically ill and disabled ] child with special health care needs and the child's parent, managing conservator, guardian, or other adult caretaker approved by the program to obtain services provided by the program; and

(2) the following services to an eligible child with special health care needs [chronically ill and disabled children ] who dies [die ] in an approved facility outside the child's municipality of residence while receiving program services [for a condition covered by the program ]:

(A) the transportation of the child's remains, and the transportation of a parent or other person accompanying the remains, from the facility to the place of burial in this state that is designated by the parent or other person legally responsible for interment;

(B) the expense of embalming, if required for transportation;

(C) the cost of a coffin purchased at a minimum price, if a coffin is required for transportation; and

(D) any other necessary expenses directly related to the care and return of the child's remains to the place of burial in this state.

(e) The department may:

(1) develop methods to improve the efficiency and effectiveness of the program; and

(2) conduct pilot studies[; and

[(3) provide services only for conditions specified by this chapter or by the board ].

(f) The program is separate from the financial or medical assistance program established by Chapters 31 and 32, Human Resources Code.

SECTION . Chapter 35, Health and Safety Code, is amended by adding Sections 35.0031, 35.0032, 35.0033, 35.0034, and 35.0035 to read as follows:

Sec. 35.0031. HEALTH BENEFITS PLAN COVERAGE FOR CERTAIN ELIGIBLE CHILDREN. The department shall obtain coverage under a health benefits plan for a child who:

(1) is eligible for services under this chapter; and

(2) is not eligible for assistance under:

(A) a program established under Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended; or

(B) the medical assistance program under Chapter 32, Human Resources Code.

Sec. 35.0032. BENEFITS COVERAGE REQUIRED. To the extent possible, the health benefits plan required by Section 35.0031 must provide benefits comparable to the benefits provided under the state child health plan established by this state to implement Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended.

Sec. 35.0033. HEALTH BENEFITS PLAN PROVIDER. (a) A health benefits plan provider who provides coverage for benefits under Section 35.0031 must:

(1) hold a certificate of authority or other appropriate license issued by the Texas Department of Insurance that authorizes the health benefits plan provider to provide the type of coverage to be offered under Section 35.0031; and

(2) satisfy, except as provided by Subsection (b), any other applicable requirement of the Insurance Code or another insurance law of this state.

(b) Except as required by the department, a health benefits plan provider under this chapter is not subject to a law that requires coverage or the offer of coverage of a health care service or benefit.

Sec. 35.0034. COST-SHARING PAYMENTS. (a) Except as provided by Subsection (b), the department may not require a child who is provided health benefits plan coverage under Section 35.0031 and who meets the income eligibility requirement of the medical assistance program under Chapter 32, Human Resources Code, to pay a premium, deductible, coinsurance, or other cost-sharing payment as a condition of health benefits plan coverage under this chapter.

(b) The department may require a child described by Subsection (a) to pay a co-payment as a condition of health benefits plan coverage under Section 35.0031 that is equal to any co-payment required under the state child health plan established by this state to implement Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended.

(c) The department may require a child who is provided health benefits plan coverage under Section 35.0031 and who meets the income eligibility requirement of a program established under Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended, to pay a premium, deductible, coinsurance, or other cost-sharing payment as a condition of health benefits plan coverage. The payment must be equal to any premium, deductible, coinsurance, or other cost-sharing payment required under the state child health plan established by this state to implement Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended.

Sec. 35.0035. DISALLOWANCE OF MATCHING FUNDS FROM FEDERAL GOVERNMENT. Expenditures made to provide health benefits plan coverage under Section 35.0031 may not be included for the purpose of determining the state children's health insurance expenditures, as that term is defined by 42 U.S.C. Section 1397ee(d)(2)(B), as amended.

SECTION . Section 35.004, Health and Safety Code, is amended by adding Subsection (j) to read as follows:

(j) This section does not apply to services for which coverage is provided under the health benefits plan established under Section 35.0031.

SECTION . Section 35.005, Health and Safety Code, is amended to read as follows:

Sec. 35.005. ELIGIBILITY FOR SERVICES. (a) The board by rule shall:

(1) define medical, financial, and other criteria for eligibility to receive services; and

(2) establish a system for verifying eligibility information submitted by an applicant for or recipient of services.

(b) In defining medical and financial criteria for eligibility under Subsection (a), the board may not:

(1) establish an exclusive list of coverable medical conditions; or

(2) consider as a source of support to provide services assets legally owned or available to a child's household.

(c) [(b) ] A child is not eligible to receive rehabilitation services unless:

(1) the child is a resident of this state;

(2) at least one physician or dentist certifies to the department that the physician or dentist has examined the child and finds the child to be a [chronically ill and disabled ] child with special health care needs whose disability meets the medical criteria established by the board;

(3) [the certifying physician or dentist has reason to expect that services will improve the child's condition or will extend the child's ability to function independently;

[(4) ] the department determines that the persons who have any legal obligation to provide services for the child are unable to pay for the entire cost of the services;

(4) the child has a family income that is less than or equal to 200 percent of the federal poverty level; and

(5) the child meets all other eligibility criteria established by board rules.

(d) [(c) ] A child is not eligible to receive services, other than rehabilitation services, unless the child:

(1) is a resident of this state; and

(2) meets all other eligibility criteria established by board rules.

(e) Notwithstanding Subsection (c)(4), a child with special health care needs who has a family income that is greater than 200 percent of the federal poverty level and who meets all other eligibility criteria established by this section and by board rules is eligible for services if the department determines that the child's family is or will be responsible for medical expenses that are equal to or greater than the amount by which the family's income exceeds 200 percent of the federal poverty level.

SECTION . Chapter 35, Health and Safety Code, is amended by adding Section 35.0061 to read as follows:

Sec. 35.0061. REFERRAL FOR BEHAVIORAL OR EMOTIONAL CONDITIONS. If a child with special health care needs who is eligible for services under this chapter has a behavioral or emotional condition and the child is eligible for services from another provider of services that would address the behavioral or emotional condition, the department shall refer the child to that provider for those services.

SECTION . Section 35.007(e), Health and Safety Code, is amended to read as follows:

(e) The department may collect the cost of services provided under this chapter directly:

(1) in accordance with [from ] Title XVIII, [or ] Title XIX, or Title XXI of the Social Security Act (42 U.S.C. Sections 1395 et seq., [and ] 1396 et seq., and 1397aa et seq.), as amended; or

(2) from any personal insurance, a health maintenance organization, or any other third party who has a legal obligation to pay other benefits.

SECTION . Sections 35.012(a) and (b), Health and Safety Code, are amended to read as follows:

(a) The department may take a census, make surveys, and establish permanent records of [chronically ill and disabled ] children with special health care needs.

(b) The department shall maintain a record of orthotic and prosthetic devices, durable medical equipment, and medical supplies purchased by the department for [chronically ill and disabled ] children with special health care needs. Those items are not state-owned personal property and are exempt from the personal property inventory requirements of Subtitle D, Title 10, Government Code.

SECTION . The heading of Chapter 35, Health and Safety Code, is amended to read as follows:

CHAPTER 35. CHILDREN WITH SPECIAL HEALTH CARE NEEDS

[CHRONICALLY ILL AND DISABLED CHILDREN'S SERVICES ]

SECTION . Section 33.031, Health and Safety Code, is amended to read as follows:

Sec. 33.031. COORDINATION WITH CHILDREN WITH SPECIAL HEALTH CARE NEEDS [CHRONICALLY ILL AND DISABLED CHILDREN'S ] SERVICES. (a) All newborn children and other individuals under 21 years of age who have been screened, have been found to be presumptively positive through the newborn screening program, and may be financially eligible may be referred to the department's [chronically ill and disabled children's ] services program for children with special health care needs.

(b) An individual who is determined to be eligible for services under the [chronically ill and disabled children's ] services program for children with special health care needs shall be given approved services through that program. An individual who does not meet that eligibility criteria shall be referred to the newborn

screening program for a determination of eligibility for newborn screening program services.

SECTION . Section 109.066, Health and Safety Code, is amended to read as follows:

Sec. 109.066. TEXAS DEPARTMENT OF HEALTH PROGRAMS. (a) The department may use appropriated funds, in accordance with the General Appropriations Act, to purchase coverage under a health benefit plan provided through the program for children who are eligible for coverage for the program if:

(1) the children receive health care benefits under the services [chronically ill and disabled children's ] program for children with special health care needs or another federally funded or state-funded program, other than the state Medicaid program, that is administered by the department;

(2) provision of the benefits through a health benefit plan provided through the program is a more cost-effective means of providing some or all of the benefits described by Subdivision (1); and

(3) no benefit or service provided to the children is eliminated or adversely affected as a result of the provision of the benefits through the program.

(b) Services provided to children under a federally funded or state-funded program administered by the department, including the [chronically ill and disabled children's ] program for children with special health care needs, may not be reduced or eliminated because some or all of the services are provided through the program or otherwise provided because of the establishment of the corporation or the program.

SECTION . Section 14(b)(2), Article 21.58A, Insurance Code, is amended to read as follows:

(2) Except as provided by Subsection (g) of this section, this article shall not apply to the Texas Medicaid Program, the [chronically ill and disabled children's ] services program for children with special health care needs created pursuant to Chapter 35, Health and Safety Code, any program administered under Title 2, Human Resources Code, any program of the Texas Department of Mental Health and Mental Retardation, or any program of the Texas Department of Criminal Justice.

SECTION . Section 35.002, Health and Safety Code, is repealed.

SECTION . (a) The change in law made by this article to Chapter 35, Health and Safety Code, applies only to delivery of services under that chapter on or after July 1, 2001.

(b) The Texas Department of Health shall implement the health benefits plan required by Section 35.0031, Health and Safety Code, as added by this article, not later than July 1, 2001.

(c) The Texas Board of Health shall adopt all rules necessary to implement the changes in law made by this article not later than July 1, 2001.

Floor Amendment No. 12

Amend the Maxey amendment to SB 374 by adding an appropriately numbered SECTION to the article related to children with special health care needs added by the amendment to read as follows and by renumbering the existing SECTIONS of the article appropriately:

SECTION . A state agency is required to implement the article related to children with special health care needs only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, an agency may, but it is not required to, implement that article using other appropriations available for the purpose.

Floor Amendment No. 13

Amend SB 374 as follows:

(1) In SECTION 1.01 of the bill, in added Section 531.02481(f), Government Code (House Committee Printing, page 2, line 26), strike "or".

(2) In SECTION 1.01 of the bill, in added Section 531.02481(f), Government Code (House Committee Printing, page 2, line 26), between "organization" and the period, insert: ;

(5) a community mental health and mental retardation center

Floor Amendment No. 14

Amend SB 374 as follows:

On page 3, line 1 (new Section 531.02481, Government Code) of the House Committee printing of SB 374, insert or for-profit after "nonprofit."

Floor Amendment No. 15

Amend SB 374 as follows:

On page 3, line 14 of the House Committee printing of SB 374, strike out "18" and substitute in its place "20".

On page 4, line 9 of the House Committee printing of SB 374, strike out subsection (9) and replace with the following:

(9) 4 long term care services providers, jointly appointed by the commissioner and the commissioner of mental health and mental retardation, representative of the broadest array of settings listed in subsection (a) above.

Floor Amendment No. 16

Amend SB 374 by inserting the following SECTIONS, appropriately numbered, and renumbering the subsequent SECTIONS of the bill accordingly:

SECTION . Section 32.024(t), Human Resources Code, is amended to read as follows:

(t) The department by rule shall require a physician, nursing facility, health care provider, or other responsible party to obtain authorization from the department or a person authorized to act on behalf of the department before an ambulance is used to transport a recipient of medical assistance under this chapter in circumstances not involving an emergency. The rules must provide that:

(1) except as provided by Subdivision (3), a request for authorization must be evaluated based on the recipient's medical needs and may be granted for a length of time appropriate to the recipient's medical condition;

(2) except as provided by Subdivision (3), a response to a request for authorization must be made not later than 48 hours after receipt of the request; [and ]

(3) a request for authorization must be immediately granted and must be effective for a period of 180 days from the date of issuance if the request includes a written statement from a physician that:

(A) states that alternative means of transporting the recipient are contraindicated; and

(B) is dated not earlier than the 60th day before the date on which the request for authorization is made; and

(4) a person denied payment for services rendered because of failure to obtain prior authorization or because a request for prior authorization was denied is entitled to appeal the denial of payment to the department.

SECTION . If 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.

The amendments were read.

On motion of Senator Zaffirini, the Senate concurred in the House amendments to SB 374 by a viva voce vote.

CONFERENCE COMMITTEE ON HOUSE BILL 211

Senator Sibley called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HB 211 and moved that the request be granted.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on HB 211 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators Sibley, Chair; Bivins, Cain, Nelson, and West.

SENATE BILL 223 WITH HOUSE AMENDMENT

Senator Ogden called SB 223 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer, Senator Ratliff in Chair, laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 223 as follows:

(1) In SECTION 1 of the bill, in added Section 656.101(1), Government Code, between "Section 572.002" and the period (engrossed version, page 1, line 9), insert "except that the terms do not include a river authority or an employee of a river authority".

(2) In SECTION 2 of the bill, in added Section 666.001, Government Code, between "Section 572.002" and the period (engrossed version, page 3, line 20), insert "except that the term does not include a river authority".

The amendment was read.

On motion of Senator Ogden, the Senate concurred in the House amendment to SB 223 by a viva voce vote.

SENATE BILL 602 WITH HOUSE AMENDMENT

Senator Moncrief called SB 602 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SB 602 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the membership and powers of the Interagency Council for Genetic Services.

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

SECTION 1. Subsections (b) and (c), Section 134.001, Human Resources Code, are amended to read as follows:

(b) The council consists of:

(1) a representative of the Texas Department of Mental Health and Mental Retardation, appointed by the commissioner of mental health and mental retardation;

(2) a representative of the Texas Department of Health, appointed by the commissioner of health;

(3) a representative of the Texas Department of Insurance [Human Services ], appointed by the commissioner of insurance [human services ];

(4) a representative of The University of Texas health science centers, appointed by the chancellor of The University of Texas System;

(5) a representative of the public and private entities that contract with the Texas Department of Health to provide genetic services, elected from their membership; and

(6) two consumers of genetic services, family members of consumers of genetic services, or representatives of consumer groups related to the provision of genetic services, appointed by the governor.

(c) The members provided for by Subdivisions (5) and (6) of Subsection (b) of this section serve two-year terms and may be reappointed or reelected for subsequent terms. A representative of the Texas Department of Mental Health and Mental Retardation, Texas Department of Health, Texas Department of Insurance [Human Services ], or The University of Texas health science centers serves at the pleasure of his respective commissioner or chancellor or until termination of his employment with the entity he represents.

SECTION 2. Chapter 134, Human Resources Code, is amended by adding Section 134.002 to read as follows:

Sec. 134.002. RULES. A state agency that is a member of the council shall work in coordination with the council when initiating, considering, or proposing a rule relating to human genetics or human genetic services.

SECTION 3. Subsection (b), Section 134.003, Human Resources Code, is amended to read as follows:

(b) The Texas Department of Health, Texas Department of Mental Health and Mental Retardation, Texas Department of Insurance [Human Services ], and The University of Texas health science centers shall share the cost of providing clerical and advisory support staff to the council.

SECTION 4. Section 134.004, Human Resources Code, is amended to read as follows:

Sec. 134.004. DUTIES. The council shall:

(1) survey current resources for human genetic services in the state;

(2) initiate a scientific evaluation of the current and future needs for the services;

(3) develop a comparable data base among providers that will permit the evaluation of cost-effectiveness and the value of different human genetic services and methods of service delivery;

(4) promote a common statewide data base to study the epidemiology of human genetic disorders;

(5) assist in coordinating statewide human genetic services for all state residents;

(6) increase the flow of information among separate providers and appropriation authorities;

(7) develop guidelines to monitor the provision of human genetic services, including laboratory testing; [and ]

(8) identify state entities that serve persons who are affected by or who are at risk of having children who are affected by environmental genetic disorders and coordinate activities with those agencies; and

(9) work in coordination with the state agencies named in Sections 134.001(b)(1), (2), and (3) when the agency initiates, considers, or proposes a rule relating to human genetics or human genetic services.

SECTION 5. Subsection (b), Section 134.005, Human Resources Code, is amended to read as follows:

(b) If the Texas Department of Health, Texas Department of Mental Health and Mental Retardation, Texas Department of Insurance [Human Services ], or The University of Texas health science centers receive federal funds to be used only to coordinate and plan statewide genetic services, the department or system shall transfer the funds to the council through the Texas Department of Health to be used for the purposes for which the funds were received.

SECTION 6. Section 134.006, Human Resources Code, is amended to read as follows:

Sec. 134.006. ANNUAL REPORTS. The council shall annually submit a progress report to the boards of the Texas Department of Health and the[, ] Texas Department of Mental Health and Mental Retardation, to the commissioner of the [and ] Texas Department of Insurance, [Human Services ] and to the board of regents of The University of Texas System.

SECTION 7. This Act takes effect September 1, 1999.

SECTION 8. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

The amendment was read.

On motion of Senator Moncrief, the Senate concurred in the House amendment to SB 602 by a viva voce vote.

SENATE BILL 673 WITH HOUSE AMENDMENT

Senator Moncrief called SB 673 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 673 in SECTION 1 of the bill, added Section 46.001, Health and Safety Code, as follows:

(1) In Subdivision (a)(2), between "organ" and "donor" (senate engrossment, page 1, line 13), insert ", eye, or tissue".

(2) In Subdivision (a)(3), between "organ" and "donation" (senate engrossment, page 1, line 15), insert ", eye, or tissue".

The amendment was read.

On motion of Senator Moncrief, the Senate concurred in the House amendment to SB 673 by a viva voce vote.

SENATE BILL 528 WITH HOUSE AMENDMENTS

Senator West called SB 528 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Floor Amendment No. 1

Amend SB 528 by adding an appropriately numbered SECTION to the bill to read as follows and by renumbering the existing SECTIONS of the bill accordingly:

SECTION . Chapter 106, Alcoholic Beverage Code, is amended by adding Section 106.16 to read as follows:

Sec. 106.16. PRESENCE OF MINOR ON LICENSED PREMISES. (a) Except as provided by Subsection (b), a minor may not be on premises covered by a permit or license issued under Chapter 25, 28, 29, 32, 69, or 70.

(b) Subsection (a) does not apply if:

(1) the minor at all times while on the premises is in the presence of the minor's parent, adult spouse, or legal guardian;

(2) the business operated on the premises derives:

(A) 65 percent or more of its gross revenues from the sale of food and other goods, not including alcoholic beverages; or

(B) 50 percent or more of its gross revenues from the sale of tickets to outdoor live performances;

(3) the minor's presence is in the course of employment permitted under this code; or

(4) the minor is attending an event on the premises of a fraternal organization or a veterans organization, as defined by Section 32.11, and that attendance is authorized by the minor's parent, adult spouse, or legal guardian.

Amendment No. 2

Amend the Alvarado amendment to SB 528 as follows:

(1) On page 1, line 16, of the amendment, adding Sec. 106.16 to the Alcoholic Beverage Code, insert the following in (b)(2)(A), between "goods" and the comma: "or services".

(2) On page 1, line 20, of the amendment, adding Sec. 106.16 to the Alcoholic Beverage Code, insert the following at the end (b)(2)(B):

(3) the premises is covered by a food and beverage certificate; or

(4) (3) the minor's presence is in the course of employment permitted under this code; or

(5) (4) ".

Floor Amendment No. 1 on Third Reading

Amend SB 528 on third reading by amending the second reading Alvarado amendment to SB 528, as amended by the Brimer amendment, in proposed Section 106.16(b)(5), Alcoholic Beverage Code, by striking "fraternal organization or a veterans organization, as defined by Section 32.11," and substituting "fraternal organization or veterans organization, as defined by Section 32.11, or on the premises of a labor organization as defined by Section 21.002, Labor Code,".

The amendments were read.

Senator West moved that the Senate do not concur in the House amendments, but that a conference committee be appointed to adjust the differences between the two Houses on the bill.

The motion prevailed.

The Presiding Officer asked if there were any motions to instruct the conference committee on SB 528 before appointment.

There were no motions offered.

The Presiding Officer announced the appointment of the following conferees on the part of the Senate on the bill: Senators West, Chair; Whitmire, Gallegos, Duncan, and Shapiro.

SENATE BILL 581 WITH HOUSE AMENDMENT

Senator Harris called SB 581 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment No. 1

Amend SB 581 as ENGROSSED as follows:

(1) On page 1, delete SECTION 1 and renumber accordingly.

The amendment was read.

On motion of Senator Harris, the Senate concurred in the House amendment to SB 581 by a viva voce vote.

SENATE BILL 86 WITH HOUSE AMENDMENTS

Senator Nelson called SB 86 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Amendment

Amend SB 86 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the protection of telecommunications and electric services customers; providing penalties.

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

SECTION 1. Section 11.002, Utilities Code, is amended by adding Subsection (c) to read as follows:

(c) Significant changes have occurred in the telecommunications and electric power industries since the Public Utility Regulatory Act was originally adopted. Changes in technology and market structure have increased the need for minimum standards of service quality, customer service, and fair business practices to ensure high-quality service to customers and a healthy marketplace where competition is permitted by law. It is the purpose of this title to grant the Public Utility Commission of Texas authority to make and enforce rules necessary to protect customers of telecommunications and electric services consistent with the public interest.

SECTION 2. Section 15.024(c), Utilities Code, is amended to read as follows:

(c) A penalty may not be assessed under this section if the person against whom the penalty may be assessed remedies the violation before the 31st day after the date the person receives the notice under Subsection (b). A person who claims to have remedied an alleged violation has the burden of proving to the commission that the alleged violation was remedied and was accidental or inadvertent. This subsection does not apply to a violation of Chapter 17 or 55.

SECTION 3. Subtitle A, Title 2, Utilities Code, is amended by adding Chapter 17 to read as follows:

CHAPTER 17. CUSTOMER PROTECTION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 17.001. CUSTOMER PROTECTION POLICY. (a) The legislature finds that new developments in telecommunications services and the production and delivery of electricity, as well as changes in market structure, marketing techniques, and technology, make it essential that customers have safeguards against fraudulent, unfair, misleading, deceptive, or anticompetitive business practices and against businesses that do not have the technical and financial resources to provide adequate service.

(b) The purpose of this chapter is to establish retail customer protection standards and confer on the commission authority to adopt and enforce rules to protect retail customers from fraudulent, unfair, misleading, deceptive, or anticompetitive practices.

(c) Nothing in this section shall be construed to abridge customer rights set forth in commission rules in effect at the time of the enactment of this chapter.

(d) This chapter does not limit the constitutional, statutory, and common law authority of the office of the attorney general.

(e) Nothing in this chapter authorizes a customer to receive retail electric service from a person other than a certificated retail electric utility.

Sec. 17.002. DEFINITIONS. In this chapter:

(1) "Billing agent" means any entity that submits charges to the billing utility on behalf of itself or any provider of a product or service.

(2) "Billing utility" means any telecommunications provider, as defined by Section 51.002, retail electric provider, or electric utility that issues a bill directly to a customer for any telecommunications or electric product or service.

(3) "Certificated telecommunications utility" means a telecommunications utility that has been granted either a certificate of convenience and necessity, a certificate of operating authority, or a service provider certificate of operating authority.

(4) "Customer" means any person in whose name telephone or retail electric service is billed, including individuals, governmental units at all levels of government, corporate entities, and any other entity with legal capacity to be billed for telephone or retail electric service.

(5) "Electric utility" has the meaning assigned by Section 31.002.

(6) "Retail electric provider" means a person that sells electric energy to retail customers in this state after the legislature authorizes a customer to receive retail electric service from a person other than a certificated retail electric utility.

(7) "Service provider" means any entity that offers a product or service to a customer and that directly or indirectly charges to or collects from a customer's bill an amount for the product or service on a customer's bill received from a billing utility.

(8) "Telecommunications utility" has the meaning assigned by Section 51.002.

Sec. 17.003. CUSTOMER AWARENESS. (a) The commission shall promote public awareness of changes in the electric and telecommunications markets, provide customers with information necessary to make informed choices about available options, and ensure that customers have an adequate understanding of their rights.

(b) The commission shall compile a report on customer service at least once each year showing the comparative customer information from reports given to the commission it deems necessary.

(c) The commission shall adopt and enforce rules to require a certificated telecommunications utility, a retail electric provider, or an electric utility to give clear, uniform, and understandable information to customers about rates, terms, services, customer rights, and other necessary information as determined by the commission.

(d) Customer awareness efforts by the commission shall be conducted in English and Spanish and any other language as necessary.

Sec. 17.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers of telecommunications and retail electric services are entitled to:

(1) protection from fraudulent, unfair, misleading, deceptive, or anticompetitive practices, including protection from being billed for services that were not authorized or provided;

(2) choice of a telecommunications service provider, a retail electric provider, or an electric utility, where that choice is permitted by law, and to have that choice honored;

(3) information in English and Spanish and any other language as the commission deems necessary concerning rates, key terms and conditions, and the basis for any claim of environmental benefits of certain production facilities;

(4) protection from discrimination on the basis of race, color, sex, nationality, religion, marital status, income level, or source of income and from unreasonable discrimination on the basis of geographic location;

(5) impartial and prompt resolution of disputes with a certificated telecommunications utility, a retail electric provider, or an electric utility and disputes with a telecommunications service provider related to unauthorized charges and switching of service;

(6) privacy of customer consumption and credit information;

(7) accuracy of metering and billing;

(8) bills presented in a clear, readable format and easy-to-understand language;

(9) information in English and Spanish and any other language as the commission deems necessary concerning low-income assistance programs and deferred payment plans;

(10) all consumer protections and disclosures established by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.) and the Truth in Lending Act (15 U.S.C. Section 1601 et seq.); and

(11) programs that offer eligible low-income customers energy efficiency programs, an affordable rate package, and bill payment assistance programs designed to reduce uncollectible accounts.

(b) The commission may adopt and enforce rules as necessary or appropriate to carry out this section, including rules for minimum service standards for a certificated telecommunications utility, a retail electric provider, or an electric utility relating to customer deposits and the extension of credit, switching fees, levelized billing programs, and termination of service and to energy efficiency programs, an affordable rate package, and bill payment assistance programs for low-income customers. The commission may waive language requirements for good cause.

(c) The commission shall request the comments of the office of the attorney general in developing the rules that may be necessary or appropriate to carry out this section.

(d) The commission shall coordinate its enforcement efforts regarding the prosecution of fraudulent, misleading, deceptive, and anticompetitive business practices with the office of the attorney general in order to ensure consistent treatment of specific alleged violations.

(e) Nothing in this section shall be construed to abridge customer rights set forth in commission rules in effect at the time of the enactment of this chapter.

Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED UTILITIES. A municipally owned utility may not be deemed to be a "service provider" or "billing agent" for purposes of Sections 17.156(b) and (e). For electric customers within a municipally owned utility's certificated service area or otherwise served through its distribution facilities, the governing body of a municipally owned utility shall adopt, implement, and enforce rules that shall have the effect of accomplishing the objectives set out in Sections 17.004(a) and (b) and 17.102. The governing body of a municipally owned utility or its designee shall perform the dispute resolution function provided for by Section 17.157 for electric customers served within the municipally owned utility's certificated service area or otherwise served through its distribution facilities. With respect to electric customers served by a municipally owned utility outside its certificated service area or otherwise served through others' distribution facilities, after retail competition begins as authorized by the legislature, the provisions of this chapter as administered by the commission apply. Nothing in this chapter shall be deemed to apply to a wholesale customer of a municipally owned utility.

SUBCHAPTER B. CERTIFICATION, REGISTRATION,

AND REPORTING REQUIREMENTS

Sec. 17.051. ADOPTION OF RULES. (a) The commission shall adopt rules relating to certification, registration, and reporting requirements for a certificated telecommunications utility, a retail electric provider, or an electric utility, as well as all telecommunications utilities that are not dominant carriers, pay telephone providers,

qualifying facilities that are selling capacity into the wholesale or retail market, exempt wholesale generators, and power marketers.

(b) The rules adopted under Subsection (a) shall be consistent with and no less effective than federal law and may not require the disclosure of highly sensitive competitive or trade secret information.

Sec. 17.052. SCOPE OF RULES. The commission may adopt and enforce rules to:

(1) require certification or registration with the commission as a condition of doing business in this state, except that this requirement does not apply to municipally owned utilities;

(2) amend certificates or registrations to reflect changed ownership and control;

(3) establish rules for customer service and protection;

(4) suspend or revoke certificates or registrations for repeated violations of this chapter or commission rules, except that the commission may not revoke a certificate of convenience and necessity of an electric utility except as provided by Section 37.059 or a certificate of convenience and necessity of a telecommunications utility except as provided by Section 54.008; and

(5) order disconnection of a pay telephone service provider's pay telephones or revocation of certification or registration for repeated violations of this chapter or commission rules.

Sec. 17.053. REPORTS. The commission may require a telecommunications service provider, a retail electric provider, or an electric utility to submit reports to the commission concerning any matter over which it has authority under this chapter.

SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE

Sec. 17.101. POLICY. It is the policy of this state that all customers be protected from the unauthorized switching of a telecommunications service provider, a retail electric provider, or an electric utility selected by the customer to provide service, where choice is permitted by law.

Sec. 17.102. RULES RELATING TO CHOICE. The commission shall adopt and enforce rules that:

(1) ensure that customers are protected from deceptive practices employed in obtaining authorizations of service and in the verification of change orders, including negative option marketing, sweepstakes, and contests that cause customers to unknowingly change their telecommunications service provider, retail electric provider, or electric utility, where choice is permitted by law;

(2) provide for clear, easily understandable identification, in each bill sent to a customer, of all telecommunications service providers, retail electric providers, or electric utilities submitting charges on the bill;

(3) ensure that every service provider submitting charges on the bill is clearly and easily identified on the bill along with its services, products, and charges;

(4) provide that unauthorized changes in service be remedied at no cost to the customer within a period established by the commission;

(5) require refunds or credits to the customer in the event of an unauthorized change; and

(6) provide for penalties for violations of commission rules adopted under this section, including fines and revocation of certificates or registrations, by this action denying the certificated telecommunications utility, the retail electric provider, or the electric utility the right to provide service in this state, except that the

commission may not revoke a certificate of convenience and necessity of an electric utility except as provided by Section 37.059 or a certificate of convenience and necessity of a telecommunications utility except as provided by Section 54.008.

SUBCHAPTER D. PROTECTION AGAINST

UNAUTHORIZED CHARGES

Sec. 17.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A service provider, retail electric provider, or billing agent may submit charges for a new product or service to be billed on a customer's telephone or retail electric bill on or after the effective date of this section only if:

(1) the service provider offering the product or service has thoroughly informed the customer of the product or service being offered, including all associated charges, and has explicitly informed the customer that the associated charges for the product or service will appear on the customer's telephone or electric bill;

(2) the customer has clearly and explicitly consented to obtain the product or service offered and to have the associated charges appear on the customer's telephone or electric bill and the consent has been verified as provided by Subsection (b); and

(3) the service provider offering the product or service and any billing agent for the service provider:

(A) has provided the customer with a toll-free telephone number the customer may call and an address to which the customer may write to resolve any billing dispute and to answer questions; and

(B) has contracted with the billing utility to bill for products and services on the billing utility's bill as provided by Subsection (c).

(b) The customer consent required by Subsection (a)(2) must be verified by the service provider offering the product or service by authorization from the customer. A record of the customer consent, including verification, must be maintained by the service provider offering the product or service for a period of at least 24 months immediately after the consent and verification have been obtained. The method of obtaining customer consent and verification must include one or more of the following:

(1) written authorization from the customer;

(2) toll-free electronic authorization placed from the telephone number that is the subject of the product or service;

(3) oral authorization obtained by an independent third party; or

(4) any other method of authorization approved by the commission or the Federal Communications Commission.

(c) The contract required by Subsection (a)(3)(B) must include the service provider's name, business address, and business telephone number and shall be maintained by the billing utility for as long as the billing for the products and services continues and for the 24 months immediately following the permanent discontinuation of the billing.

(d) A service provider offering a product or service to be charged on a customer's telephone or electric bill and any billing agent for the service provider may not use any fraudulent, unfair, misleading, deceptive, or anticompetitive marketing practice to obtain customers, including the use of negative option marketing, sweepstakes, and contests.

(e) Unless verification is required by federal law or rules implementing federal law, Subsection (b) does not apply to customer-initiated transactions with a certificated telecommunications provider or an electric utility for which the service provider has the appropriate documentation.

(f) If a service provider is notified by a billing utility that a customer has reported to the billing utility that a charge made by the service provider is unauthorized, the service provider shall cease to charge the customer for the unauthorized product or service.

(g) This section does not apply to message telecommunications services charges that are initiated by dialing 1+, 0+, 0-, 1010XXX, or collect calls and charges for video services if the service provider has the necessary call detail record to establish the billing for the call or service.

Sec. 17.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a customer's telephone or retail electric bill is charged for any product or service without proper customer consent or verification, the billing utility, on its knowledge or notification of any unauthorized charge, shall promptly, not later than 45 days after the date of knowledge or notification of the charge:

(1) notify the service provider to cease charging the customer for the unauthorized product or service;

(2) remove any unauthorized charge from the customer's bill;

(3) refund or credit to the customer all money that has been paid by the customer for any unauthorized charge, and if the unauthorized charge is not adjusted within three billing cycles, shall pay interest on the amount of the unauthorized charge;

(4) on the customer's request, provide the customer with all billing records under its control related to any unauthorized charge within 15 business days after the date of the removal of the unauthorized charge from the customer's bill; and

(5) maintain for at least 24 months a record of every customer who has experienced any unauthorized charge for a product or service on the customer's telephone or electric bill and who has notified the billing utility of the unauthorized charge.

(b) A record required by Subsection (a)(5) shall contain for each unauthorized charge:

(1) the name of the service provider that offered the product or service;

(2) any affected telephone numbers or addresses;

(3) the date the customer requested that the billing utility remove the unauthorized charge;

(4) the date the unauthorized charge was removed from the customer's telephone or electric bill; and

(5) the date any money that the customer paid for the unauthorized charges was refunded or credited to the customer.

(c) A billing utility may not:

(1) disconnect or terminate telecommunications or electric service to any customer for nonpayment of an unauthorized charge;

(2) file an unfavorable credit report against a customer who has not paid charges the customer has alleged were unauthorized unless the dispute regarding the unauthorized charge is ultimately resolved against the customer, except that the customer shall remain obligated to pay any charges that are not in dispute, and this subsection does not apply to those undisputed charges; or

(3) interrupt or terminate local exchange service if charges for local exchange service are paid, unless the customer's local exchange service provider:

(A) offers to the customer prepaid local telephone service in accordance with terms and conditions established by the commission; and

(B) provides eligible customers with notice of their eligibility for this service in accordance with commission rules.

Sec. 17.153. RECORDS OF DISPUTED CHARGES. (a) Every service provider shall maintain a record of every disputed charge for a product or service placed on a customer's bill.

(b) The record required under Subsection (a) shall contain for every disputed charge:

(1) any affected telephone numbers or addresses;

(2) the date the customer requested that the billing utility remove the unauthorized charge;

(3) the date the unauthorized charge was removed from the customer's telephone or retail electric bill; and

(4) the date action was taken to refund or credit to the customer any money that the customer paid for the unauthorized charges.

(c) The record required by Subsection (a) shall be maintained for at least 24 months following the completion of all steps required by Section 17.152(a).

Sec. 17.154. NOTICE. (a) A billing utility shall provide notice of a customer's rights under this section in the manner prescribed by the commission.

(b) Notice of a customer's rights must be provided by mail to each residential and retail business customer within 60 days of the effective date of this section or by inclusion in the publication of the telephone directory next following the effective date of this section. In addition, each billing utility shall send the notice to new customers at the time service is initiated or to any customer at that customer's request.

Sec. 17.155. PROVIDING COPY OF RECORDS. A billing utility shall provide a copy of records maintained under Sections 17.152, 17.153, and 17.154 to the commission staff on request.

Sec. 17.156. VIOLATIONS. (a) If the commission finds that a billing utility violated this subchapter, the commission may implement penalties and other enforcement actions under Chapter 15.

(b) If the commission finds that any other service provider or billing agent subject to this subchapter has violated this subchapter or has knowingly provided false information to the commission on matters subject to this subchapter, the commission may enforce the provisions of Chapter 15 against the service provider or billing agent as if it were regulated by the commission.

(c) Neither the authority granted under this section nor any other provision of this subchapter shall be construed to grant the commission jurisdiction to regulate service providers or billing agents who are not otherwise subject to commission regulation, other than as specifically provided by this chapter.

(d) If the commission finds that a billing utility or service provider repeatedly violates this subchapter, the commission may, if the action is consistent with the public interest, suspend, restrict, or revoke the registration or certificate of the telecommunications service provider, retail electric provider, or electric utility, by this action denying the telecommunications service provider, retail electric provider, or electric utility the right to provide service in this state, except that the commission may not revoke a certificate of convenience and necessity of an electric utility except as provided by Section 37.059 or a certificate of convenience and necessity of a telecommunications utility except as provided by Section 54.008.

(e) If the commission finds that a service provider or billing agent has repeatedly violated any provision of this subchapter, the commission may order the billing utility to terminate billing and collection services for that service provider or billing agent.

(f) Nothing in this subchapter shall be construed to preclude a billing utility from taking action on its own to terminate or restrict its billing and collection services.

Sec. 17.157. DISPUTES. (a) The commission may resolve disputes between a retail customer and a billing utility, service provider, telecommunications utility, retail electric provider, or electric utility.

(b) In exercising its authority under Subsection (a), the commission may:

(1) order a billing utility, service provider, retail electric provider, or electric utility to produce information or records;

(2) require that all contracts, bills, and other communications from a billing utility, service provider, retail electric provider, or electric utility display a working toll-free telephone number that customers may call with complaints and inquiries;

(3) require a billing utility, service provider, retail electric provider, or electric utility to refund or credit overcharges or unauthorized charges with interest if the billing utility, service provider, retail electric provider, or electric utility has failed to comply with commission rules or a contract with the customer;

(4) order appropriate relief to ensure that a customer's choice of a telecommunications service provider, a retail electric provider, or an electric utility that encompasses a geographic area in which more than one provider has been certificated is honored;