SENATE JOURNAL

SEVENTY-EIGHTH LEGISLATURE — REGULAR SESSION

AUSTIN, TEXAS

PROCEEDINGS

SIXTY-NINTH DAY

(Wednesday, May 14, 2003)

The Senate met at 11:00 a.m. pursuant to adjournment and was called to order by Senator Lucio.

The roll was called and the following Senators were present:iiArmbrister, Averitt, Barrientos, Bivins, Brimer, Carona, Deuell, Duncan, Ellis, Estes, Fraser, Gallegos, Harris, Hinojosa, Jackson, Janek, Lindsay, Lucio, Madla, Nelson, Ogden, Ratliff, Shapiro, Shapleigh, Staples, VanideiPutte, Wentworth, West, Whitmire, Williams, Zaffirini.

The Presiding Officer announced that a quorum of the Senate was present.

The Reverend Charles Patterson, Church of the Hills, Cedar Park, offered the invocation as follows:

Father God, in these increasingly uncertain days I ask for certain counsel from You for the men and women of this Texas Senate. As issues and decisions confront them today and in the remaining days of this Legislature, let Your wisdom prevail. May the decisions made here serve to enable justice and improve the quality of life for both the privileged and underprivileged. I would ask for the ability to think creatively and for the courage to act wisely and honorably. Finally, I would ask Your blessing upon each person here. Bless each home, each family, each person's time and finances. May Your blessing prevail in each person's life in body, in soul, and in spirit. We ask You, God, to bless Texas. I request these things in the name of Jesus Christ. Amen.

Senator Whitmire moved that the reading of the Journal of the proceedings of yesterday be dispensed with and the Journal be approved as printed.

The motion prevailed without objection.

CO-AUTHOR OF SENATE BILL 1444

On motion of Senator Barrientos, Senator Gallegos will be shown as Co-author of SBi1444.

CO-AUTHOR OF SENATE BILL 1482

On motion of Senator Ogden, Senator Lucio will be shown as Co-author of SBi1482.

CO-AUTHOR OF SENATE BILL 1731

On motion of Senator Gallegos, Senator Lucio will be shown as Co-author of SBi1731.

CO-AUTHORS OF SENATE BILL 1948

On motion of Senator Whitmire, Senators Ellis and Gallegos will be shown as Co-authors of SBi1948.

CO-AUTHORS OF SENATE BILL 1949

On motion of Senator Harris, Senators Ellis, Lucio, Ratliff, VanideiPutte, and Williams will be shown as Co-authors of SBi1949.

SENATE BILL ON FIRST READING

The following bill was introduced, read first time, and referred to the committee indicated:

SB 8 by Armbrister

Relating to the creation, administration, powers, duties, operation, and financing of the Colony Municipal Utility District No. 1.ii(Local Bill)

To Committee on Natural Resources.

HOUSE BILLS ON FIRST READING

The following bills received from the House were read first time and referred to the committees indicated:

HB 1094 to Committee on Administration.

HB 1278 to Committee on Finance.

HB 3486 to Committee on Health and Human Services.

MESSAGES FROM THE GOVERNOR

The following Messages from the Governor were read and were referred to the Committee on Nominations:

Austin, Texas

May 13, 2003

TO THE SENATE OF THE SEVENTY-EIGHTH LEGISLATURE, REGULAR SESSION:

I ask the advice, consent and confirmation of the Senate with respect to the following appointments:

TO BE A MEMBER OF THE TEXAS RACING COMMISSION for a term to expire February 1, 2009:

Jesse R. Adams

18965 Bandera Road

Helotes, Texasii78023

(Mr. Adams will replace Terri Lacy of Houston whose term expired)

1604 78th Legislature — Regular Session 69th Day

TO BE A MEMBER OF THE TEXAS BOARD OF PARDONS AND PAROLES for a term to expire February 1, 2009:

Stephen T. Rosales

6910 Jester Boulevard

Austin, Texasii78750

(Mr. Rosales is replacing Lynn Brown of Gatesville whose term expired)

Respectfully submitted,

/s/Rick Perry

Governor

Austin, Texas

May 14, 2003

TO THE SENATE OF THE SEVENTY-EIGHTH LEGISLATURE, REGULAR SESSION:

I ask the advice, consent and confirmation of the Senate with respect to the following appointments:

TO BE A MEMBER OF THE TEXAS PUBLIC FINANCE AUTHORITY BOARD OF DIRECTORS for a term to expire February 1, 2007:

Barry Thomas Smitherman

14311 Golfview Trail

Houston, Texasii77059

(Mr. Smitherman is replacing John Kerr of San Antonio whose term expired)

TO BE MEMBERS OF THE TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD for terms to expire January 31, 2005:

Malcolm J. Deason

106 Barberry Court

Lufkin, Texasii75904

(replacing Patrick Cordero of Midland whose term expired)

William A. Faulk, Jr.

5161 Sugar Mill Road

Brownsville, Texasii78526

(Mr. Faulk is being reappointed)

Larry D. Kokel

P. O. Box 153

Walburg, Texasii78673

(replacing James Synatzske of Stephenville whose term expired)

L. W. "Wayne" Mayo

2934 Whitemarsh Circle

Richardson, Texasii75080-1549

(Mr. Mayo is being reappointed)

TO BE MEMBERS OF THE TEXAS COMMISSION FOR THE BLIND for terms to expire February 1, 2009:

Robert Gene Griffith

514 Dennis Drive

Round Rock, Texasii78664

(replacing John Turner of Dallas whose term expired)

Wednesday, May 14, 2003 SENATE JOURNAL 1605

Brenda Gail Saxon

2301 Lawnmont Avenue #4

Austin, Texasii78756-1938

(replacing Don Oates of Nacogdoches whose term expired)

Beverley A. Stiles

103 Nassau

Rockport, Texasii78382

(Ms. Stiles is being reappointed)

Respectfully submitted,

/s/Rick Perry

Governor

PHYSICIAN OF THE DAY

Senator Deuell was recognized and presented Dr. I. L. Balkcom of Sulphur Springs as the Physician of the Day.

The Senate welcomed Dr. Balkcom and thanked him for his participation in the Physician of the Day program sponsored by the Texas Academy of Family Physicians.

HOUSE CONCURRENT RESOLUTION 102

The Presiding Officer, Senator Lucio in Chair, laid before the Senate the following resolution:

WHEREAS, Robert Weston Smith, known to his many fans as "Wolfman Jack," was a true giant in the field of radio, and his passing in 1995 has not diminished his contributions to American culture as a radio, film, and television personality; and

WHEREAS, A native of Brooklyn, this remarkable individual burst onto the airwaves in the early 1960s as a disc jockey at powerful radio station XERF in Ciudad Acuna; at that time the nation was experiencing a period of great unrest, with the assassination of President John F. Kennedy, the onset of the Vietnam War, and the ongoing struggle for civil rights led by Dr. Martin Luther King, Jr.; and

WHEREAS, Wolfman Jack's contributions during this turbulent period went beyond the role of an entertainer; by promoting such traditionally black music styles as the blues, rhythm and blues, and soul, which quickly gained acceptance from his fan base, he fostered the cause of racial and cultural diversity, becoming a unifying force in a divisive political and social climate; and

WHEREAS, He went on to earn two platinum albums and three gold records during his career and was an inductee of the Radio Hall of Fame in 1996; from 1973 to 1981, his fame was so widespread that he was named one of the top 10 most easily recognized television celebrities in the country by the Advertising Council of America; and

WHEREAS, This multitalented individual also had numerous parts in feature films, including playing himself in an integral role in the blockbuster hit American Graffiti, and in its sequel More American Graffiti; in addition, he hosted the television series The Wolfman Jack Show and made many other television appearances throughout the years; and

1606 78th Legislature — Regular Session 69th Day

WHEREAS, Many individuals and organizations are working to create a fitting tribute for Mr. Smith in Del Rio by erecting a statue of the famous deejay, and supporters of this worthy endeavor include his widow, Lou Lamb Smith, sculptor Michael Maiden, and the Wolfman Jack Memorial Foundation; and

WHEREAS, Truly the voice of rock and roll for an entire generation of music lovers, Wolfman Jack made contributions to the industry he loved that were as unique and memorable as the gravel-voiced delivery of his radio persona, and it is appropriate that his remarkable legacy be preserved into the 21st century; now, therefore, be it

RESOLVED, That the 78th Legislature of the State of Texas hereby pay tribute to the myriad accomplishments of Robert "Wolfman Jack" Smith and extend support to those who are working to ensure his memory.

MADLA

The resolution was read.

On motion of Senator Madla and by unanimous consent, the resolution was considered immediately and was adopted by a viva voce vote.

GUESTS PRESENTED

Senator Madla was recognized and introduced to the Senate the Wolfman Jack Memorial Foundation board members: Jay Johnson, President; Skip Baker, Vice-president; Rosie Aguilar, Secretary; Ramiro Guzman, Public Relations Director; and Henry Aguilar, Museum Coordinator.

The Senate welcomed its guests.

GUESTS PRESENTED

Senator Brimer was recognized and introduced to the Senate the winners of the 2003 Texas Youth Entrepreneur Award:iiShanetta Drake-Pruitt, Charley Case Baugh, Charles E. Johnson, Richard S. Kearns, Michael McKenzie, and Henry Talamantes.

The Senate welcomed its guests.

(President in Chair)

BILL SIGNED

The President announced the signing of the following enrolled bill in the presence of the Senate after the caption had been read:iiSBi7.

GUESTS PRESENTED

Senator Wentworth was recognized and introduced to the Senate fifth-grade students and their teacher from Mills Elementary School in Austin.

The Senate welcomed its guests.

SESSION TO CONSIDER EXECUTIVE APPOINTMENTS

The President announced the time had arrived to consider executive appointments to agencies, boards, and commissions.iiNotice of submission of these names for consideration was given yesterday by Senator Lindsay.

Senator Lindsay moved confirmation of the nominees reported yesterday by the Committee on Nominations.

The President asked if there were requests to sever nominees.

There were no requests offered.

Wednesday, May 14, 2003 SENATE JOURNAL 1607

NOMINEES CONFIRMED

The following nominees, as reported by the Committee on Nominations, were confirmed by the following vote:iiYeasi31, Naysi0.

Members, Brazos River Authority Board of Directors:iiSuzanne Alderson Baker, Lubbock County; Ronald David Butler II, Erath County; Carl Lynn Elliott, Brazos County; Pamela Jo "P. J." Ellison, Washington County; Fred Lee Hughes, Taylor County; Carolyn H. Johnson, Brazoria County; Martha Stovall Martin, Palo Pinto County; John Riley Skaggs, Hale County; Salvatore A. Zaccagnino, Burleson County.

Members, Texas Board of Mental Health and Mental Retardation:iiGlenda R. Kane, Nueces County; Gray H. Miller, Harris County.

Members, State Securities Board:iiBryan K. Brown, Brazoria County; JackiD.iLadd, Midland County.

Members, Texas Board of Chiropractic Examiners:iiNarciso Escareno, Cameron County; Scott Edward Isdale, D.C., Bell County; Steve Minors, Travis County.

Members, Texas Aerospace Commission:iiRichard N. Azar, El Paso County; Richard L. "Larry" Griffin, Kerr County; Holly Steger Stevens, Williamson County.

Member, Texas Structural Pest Control Board:iiCharles Brown, Robertson County.

Members, Texas Public Finance Authority Board of Directors:iiJ.iVaughn Brock, Travis County; R. David Kelly, Collin County; Daniel T. "Dan" Serna, Tarrant County.

Members, Texas Council on Purchasing from People with Disabilities:iiJames Terry Boyd, Tarrant County; David Wilson Franklin, Dallas County; Byron Edward Johnson, El Paso County.

Member, Texas Rehabilitation Commission Board:iiLance L. Goetz, M.D., Dallas County.

Members, Council on Sex Offender Treatment:iiPatricia Rae Lykos, Harris County; Walter J. Meyer III, M.D., Galveston County.

Member, Texas Veterans Commission:iiHector Farias, Hidalgo County.

Presiding Officer, Manufactured Housing Board:iiCary P. Yates, Fort Bend County.

Members, Texas Board of Licensure for Professional Medical Physicists in the Texas Department of Health:iiLamk M. Lamki, M.D., Harris County; Adrian LeBlanc, Ph.D., Harris County; RichardiE.iWendt III, Harris County.

Member, State Preservation Board:iiJocelyn Levi Straus, Bexar County.

Members, Texas County and District Retirement System Board of Trustees:iiRobert A. Eckels, Harris County; Bridget McDowell, Callahan County.

Member, Automobile Theft Prevention Authority:iiDenise Jeanette Anaya, EliPaso County.

1608 78th Legislature — Regular Session 69th Day

Members, Crime Stoppers Advisory Council:iiTina Alexander Sellers, Angelina County; Brian Thomas, Potter County.

Member, Texas State Board of Examiners of Dietitians:iiAmy Nicholson McLeod, Angelina County.

Members, Texas Agricultural Finance Authority Board of Directors:iiRubeniO. Bosquez, Hidalgo County; Darwin Dallas "Dal" DeWees, Tom Green County; Susan Kay Kennedy, Nacogdoches County; Albert Todd Lowry, Webb County.

SENATE RESOLUTION 828

Senator Duncan offered the following resolution:

WHEREAS, The Senate of the State of Texas is pleased to pay tribute to Louise Abbott on the grand occasion of her 100th birthday; and

WHEREAS, A gracious lady who is well known for her charm and generosity of spirit, Louise is a revered resident of the City of Vernon; and

WHEREAS, Born in Cleburne on April 30, 1903, to Mr. and Mrs. William J. Flenniken, Louise graduated from Austin College and Baylor University; she moved to Vernon in 1926; and

WHEREAS, A beloved educator, Louise has been called everybody's first-grade teacher because she taught entire families across several generations and spent all of her career in the first-grade classroom except for five years as a music teacher; although she retired in 1967 after 43 years of service, she continued to be a substitute teacher for another 17 years, thus carving a 60-year career as a schoolteacher; and

WHEREAS, A woman who cherished her life's calling, Louise recalls her students with great affection and enjoys talking to her former students; and

WHEREAS, She became famous for giving her students bear hugs to reward them for good performance in the classroom or simply to help them feel better when she felt they needed a hug; and

WHEREAS, Besides her work as a teacher, Louise spent many years playing the piano for weekly Rotary Club meetings and for numerous other occasions in Vernon; and

WHEREAS, Admired for her commitment to children's education, Louise was named Vernon's "Citizen of the Year" in 1970 and the Business and Professional Women's "Woman of the Year" in 1982; she was also honored by the Rotary Club, and she received the Excellence in Education award from the Vernon Chamber of Commerce in 2002; and

WHEREAS, A beloved and respected member of her community, Louise Abbott is noted for her courage, her compassion for others, and her enthusiasm for living each day to the fullest; and

WHEREAS, In commemoration of her birthday, family and friends will gather on May 17, 2003, in the parlor of the First United Methodist Church to congratulate her and share with her this important milestone in her life; now, therefore, be it

RESOLVED, That the Senate of the State of Texas, 78th Legislature, hereby recognize Louise Abbott as a treasured citizen of Vernon and the State of Texas; and, be it further

Wednesday, May 14, 2003 SENATE JOURNAL 1609

RESOLVED, That a copy of this Resolution be prepared for her as a memento of this special day.

The resolution was read and was adopted without objection.

CONCLUSION OF MORNING CALL

The President at 11:34 a.m. announced the conclusion of morning call.

GUEST PRESENTED

The President announced to the Senate the presence of the Honorable Rick Perry, Governor of the State of Texas.

The Senate welcomed its guest.

COMMITTEEiiSUBSTITUTE
SENATE JOINT RESOLUTION 42 ON SECOND READING

Senator Carona moved to suspend the regular order of business to take up for consideration CSSJRi42 at this time on its second reading:

CSSJR 42, Proposing a constitutional amendment authorizing a home equity line of credit, providing for administrative interpretation of home equity lending law, and otherwise relating to the making, refinancing, repayment, and enforcement of home equity loans.

The motion prevailed by a viva voce vote.

RECORD OF VOTES

Senators Ogden and Staples asked to be recorded as voting "Nay" on the suspension of the regular order of business.

The resolution was read second time.

(Senator Brimer in Chair)

Senator West offered the following amendment to the resolution:

Floor Amendment No. 1

Amend CSSJRi42 as follows:

(1)iiStrike Section 50(a)(6)(E), Article XVI, Texas Constitution, and substitute:

(E)iidoes not require the owner or the owner's spouse to pay, in addition to the contract rate of [any] interest on the original principal amount of the extension of credit, fees, points, or other charges to any person that are necessary to originate, evaluate, maintain, record, insure, or service the extension of credit that exceed, in the aggregate, 5.5 [three] percent of the original principal amount of the extension of credit;

(2)iiStrike Section 50(g)(E), Article XVI, Texas Constitution, and substitute:

"(E)iiFEES AND CHARGES TO MAKE THE LOAN MAY NOT EXCEED 5.5 [3] PERCENT OF THE LOAN AMOUNT;

1610 78th Legislature — Regular Session 69th Day

The floor amendment was read and failed of adoption by the following vote:iiYeasi10, Naysi21.

Yeas:iiBarrientos, Ellis, Gallegos, Hinojosa, Lucio, Madla, Shapleigh, VanideiPutte, West, Whitmire.

Nays:iiArmbrister, Averitt, Bivins, Brimer, Carona, Deuell, Duncan, Estes, Fraser, Harris, Jackson, Janek, Lindsay, Nelson, Ogden, Ratliff, Shapiro, Staples, Wentworth, Williams, Zaffirini.

(President in Chair)

Senator West offered the following amendment to the resolution:

Floor Amendment No. 2

Amend CSSJRi42 by striking Section 50(a)(6)(M), Article XVI, Texas Constitution, and substituting:

(M)iiis closed not before:

(i)iithe 12th day after the later of the date that the owner of the homestead submits an application to the lender for the extension of credit or the date that the lender provides the owner a copy of the notice prescribed by Subsection (g) of this section; [and]

(ii)iithe third day after the date that the owner of the homestead receives a final itemized disclosure of the actual fees, points, interest, costs, and charges that will be charged at closing; and

(iii)iithe first anniversary of the closing date of any other extension of credit described by Subsection (a)(6) of this section secured by the same homestead property;

The floor amendment was read and failed of adoption by the following vote:iiYeasi11, Naysi19.

Yeas:iiArmbrister, Barrientos, Ellis, Gallegos, Hinojosa, Lucio, Madla, Ratliff, Shapleigh, VanideiPutte, West.

Nays:iiAveritt, Bivins, Brimer, Carona, Deuell, Duncan, Estes, Fraser, Harris, Jackson, Janek, Lindsay, Nelson, Ogden, Shapiro, Staples, Wentworth, Williams, Zaffirini.

Absent:iiWhitmire.

Senator West offered the following amendment to the resolution:

Floor Amendment No. 3

Amend CSSJRi42 by striking Section 50(a)(6)(M), Article XVI, Texas Constitution, and substituting:

(M)iiis closed not before:

(i)iithe 12th day after the later of the date that the owner of the homestead submits an application to the lender for the extension of credit or the date that the lender provides the owner a copy of:

(a)iithe notice prescribed by Subsection (g) of this section; and

Wednesday, May 14, 2003 SENATE JOURNAL 1611

(b)iia separate statement identifying whether the new loan payments include amounts that will be deposited into an escrow account to be used to pay hazard insurance and property taxes on the property, and a good faith estimate of the additional funds the owner will need to set aside if the loan payments do not include insurance and taxes; and

(ii)iithe first anniversary of the closing date of any other extension of credit described by Subsection (a)(6) of this section secured by the same homestead property;

The floor amendment was read and failed of adoption by the following vote:iiYeasi10, Naysi20.

Yeas:iiBarrientos, Ellis, Gallegos, Hinojosa, Lucio, Madla, Shapleigh, VanideiPutte, West, Whitmire.

Nays:iiArmbrister, Averitt, Bivins, Brimer, Carona, Deuell, Duncan, Estes, Fraser, Jackson, Janek, Lindsay, Nelson, Ogden, Ratliff, Shapiro, Staples, Wentworth, Williams, Zaffirini.

Absent:iiHarris.

Floor Amendment No. 4 was not offered.

Senator West offered the following amendment to the resolution:

Floor Amendment No. 5

Amend CSSJRi42 as follows:

(1)iiIn Section 50(a)(6), Article XVI, Texas Constitution, add an appropriately lettered paragraph to read as follows and reletter paragraphs accordingly:

( )iidoes not finance, directly or indirectly, any premiums for credit life, credit disability, credit unemployment, or credit property insurance, or any other life or health insurance, or any payments for any debt cancellation or suspension agreement or contract, except that insurance premiums or debt cancellation or suspension payments computed and paid on a monthly basis are not considered financed;

(2)iiIn Section 50(g), Article XVI, Texas Constitution, add an appropriately lettered paragraph to read as follows and reletter paragraphs accordingly:

"( )iiYOUR LOAN MAY NOT FINANCE CREDIT INSURANCE OR DEBT CANCELLATION AGREEMENTS;

The floor amendment was read and failed of adoption by the following vote:iiYeasi10, Naysi21.

Yeas:iiBarrientos, Ellis, Gallegos, Hinojosa, Lucio, Madla, Shapleigh, VanideiPutte, West, Whitmire.

Nays:iiArmbrister, Averitt, Bivins, Brimer, Carona, Deuell, Duncan, Estes, Fraser, Harris, Jackson, Janek, Lindsay, Nelson, Ogden, Ratliff, Shapiro, Staples, Wentworth, Williams, Zaffirini.

1612 78th Legislature — Regular Session 69th Day

Senator West offered the following amendment to the resolution:

Floor Amendment No. 6

Amend CSSJRi42 as follows:

(1)iiIn Section 50(a)(6), Article XVI, Texas Constitution, add an appropriately lettered paragraph to read as follows and reletter paragraphs accordingly:

( )iidoes not assess a late charge greater than four percent of the amount of the payment past due;

(2)iiIn Section 50(g), Article XVI, Texas Constitution, add an appropriately lettered paragraph to read as follows and reletter paragraphs accordingly:

"( )iiYOUR LATE FEE CANNOT EXCEED 4 PERCENT OF THE

AMOUNT OF THE PAYMENT PAST DUE;

The floor amendment was read and failed of adoption by a viva voce vote.

Floor Amendment No. 7 was not offered.

Floor Amendment No. 8 was not offered.

(Senator VanideiPutte in Chair)

Senator Shapleigh offered the following amendment to the resolution:

Floor Amendment No. 9

Amend CSSJRi42 as follows:

In Section 50(a)(6), Article XVI, Texas Constitution, add an appropriately lettered paragraph to read as follows and reletter paragraphs accordingly:

(ii)iihas an annual percentage rate of 10 percent or greater and the lender provides to the borrower, no later than five business days after the date the application is made:

(1)iia statement regarding the value of housing counseling before taking out a home equity loan;

(2)iia list of the nearest available housing counseling agencies approved by the United State Department of Housing and Urban Development;

(3)iia list of other resources where home equity lending information can be found, including toll-free telephone numbers and online resources;

(4)iia good faith estimate specifically listing all loan fees, including points, to be paid by the borrower; and

Wednesday, May 14, 2003 SENATE JOURNAL 1613

(5)iiother disclosures required by the finance commission, and the consumer credit commissioner, which include a separate document from the commissioner labeled conspicuously with the seal of the State of Texas;

The floor amendment was read and failed of adoption by the following vote:iiYeasi10, Naysi19, Present-not votingi1.

Yeas:iiBarrientos, Ellis, Gallegos, Hinojosa, Janek, Lucio, Madla, Ogden, Shapleigh, West.

Nays:iiArmbrister, Averitt, Bivins, Brimer, Carona, Deuell, Duncan, Estes, Fraser, Harris, Jackson, Lindsay, Nelson, Ratliff, Shapiro, Staples, Wentworth, Williams, Zaffirini.

Present-not voting:iiVanideiPutte.

Absent:iiWhitmire.

Senator Shapleigh offered the following amendment to the resolution:

Floor Amendment No. 10

Amend CSSJRi42 as follows:

In Section 50(a)(6), Article XVI, Texas Constitution, add an appropriately lettered paragraph to read as follows and reletter paragraphs accordingly:

(ii)iidoes not charge the borrower for a product or service the borrower did not receive;

The floor amendment was read and failed of adoption by the following vote:iiYeasi8, Naysi19, Present-not votingi1.

Yeas:iiBarrientos, Ellis, Gallegos, Hinojosa, Lucio, Madla, Shapleigh, West.

Nays:iiArmbrister, Averitt, Bivins, Brimer, Carona, Deuell, Duncan, Estes, Fraser, Jackson, Janek, Nelson, Ogden, Ratliff, Shapiro, Staples, Wentworth, Williams, Zaffirini.

Present-not voting:iiVanideiPutte.

Absent:iiHarris, Lindsay, Whitmire.

Senator Shapleigh offered the following amendment to the resolution:

Floor Amendment No. 11

Amend CSSJRi42 as follows:

In Section 50(a)(6), Article XVI, Texas Constitution, add an appropriately lettered paragraph to read as follows and reletter paragraphs accordingly:

(ii)iidoes not refinance, replace or consolidate a loan made, originated, subsidized, or guaranteed by a government or nonprofit entity unless the loan has a lower annual percentage rate or was required to avoid foreclosure on the homestead;

The floor amendment was read.

On motion of Senator Shapleigh, Floor Amendment No.i11 was withdrawn.

1614 78th Legislature — Regular Session 69th Day

Senator Carona offered the following amendment to the resolution:

Floor Amendment No. 12

Amend CSSJRi42 as follows:

(1)iiIn SECTION 1 of the resolution, in Section 50(a)(6)(M)(ii), Article XVI, Texas Constitution (committee printing page 2, line 54), between "property" and the semicolon, insert ", except a refinance described by Paragraph (Q)(x)(f) of this subdivision".

(2)iiIn SECTION 1 of the resolution, strike Section 50(a)(6)(Q)(x), Article XVI, Texas Constitution (committee printing page 3, line 46 through page 4, line 29) and substitute the following:

(x)iiexcept as provided by Subparagraph (ix) of this paragraph, the lender or any holder of the note for the extension of credit shall forfeit all principal and interest of the extension of credit if the lender or holder fails to comply with the lender's or holder's obligations under the extension of credit and fails to correct the failure to comply not later than the 60th day after the date [within a reasonable time after] the lender or holder is notified by the borrower of the lender's failure to comply by:

(a)iipaying to the owner an amount equal to any overcharge paid by the owner under or related to the extension of credit if the owner has paid an amount that exceeds an amount stated in the applicable Paragraph (E), (G), or (O) of this subdivision;

(b)iisending the owner a written acknowledgement that the lien is valid only in the amount that the extension of credit does not exceed the percentage described by Paragraph (B) of this subdivision, if applicable, or is not secured by property described under Paragraph (H) or (I) of this subdivision, if applicable;

(c)iisending the owner a written notice modifying any other amount, percentage, term, or other provision prohibited by this section to a permitted amount, percentage, term, or other provision and adjusting the account of the borrower to ensure that the borrower is not required to pay more than an amount permitted by this section and is not subject to any other term or provision prohibited by this section;

(d)iidelivering the required documents to the borrower if the lender fails to comply with Subparagraph (v) of this paragraph or obtaining the appropriate signatures if the lender fails to comply with Subparagraph (ix) of this paragraph;

(e)iisending the owner a written acknowledgement, if the failure to comply is prohibited by Paragraph (K) of this subdivision, that the accrual of interest and all of the owner's obligations under the extension of credit are abated while any prior lien prohibited under Paragraph (K) remains secured by the homestead; or

(f)iiif the failure to comply cannot be cured under Subparagraphs (x)(a)-(e) of this paragraph, curing the failure to comply by a refund or credit to the owner of $1,000 and offering the owner the right to refinance the extension of credit with the lender or holder for the remaining term of the loan at no cost to the owner on the same terms, including interest, as the original extension of

Wednesday, May 14, 2003 SENATE JOURNAL 1615

(xi)iithe lender or any holder of the note for the extension of credit shall forfeit all principal and interest of the extension of credit if the extension of credit is made by a person other than a person described under Paragraph (P) of this subdivision or if the lien was not created under a written agreement with the consent of each owner and each owner's spouse, unless each owner and each owner's spouse who did not initially consent subsequently consents;

The floor amendment was read and was adopted by a viva voce vote.

Senator Carona offered the following amendment to the resolution:

Floor Amendment No. 13

Amend CSSJRi42 by adding the following appropriately numbered SECTION to the resolution and renumbering subsequent SECTIONS accordingly:

SECTIONi____.iiSection 50(f), Article XVI, Texas Constitution, is amended to read as follows:

(f)iiA refinance of debt secured by the homestead, any portion of which is an extension of credit described by Subsection (a)(6) of this section, may not be secured by a valid lien against the homestead unless the refinance of the debt is an extension of credit described by Subsection (a)(6) or (a)(7) of this section.

The floor amendment was read and was adopted by a viva voce vote.

On motion of Senator Carona and by unanimous consent, the caption was amended to conform to the body of the resolution as amended.

CSSJR 42 as amended was passed to engrossment by a viva voce vote.

RECORD OF VOTES

Senators Ogden and Staples asked to be recorded as voting "Nay" on the passage of CSSJRi42 to engrossment.

COMMITTEEiiSUBSTITUTE
SENATE JOINT RESOLUTION 42 ON THIRD READING

Senator Carona moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSJRi42 be placed on its third reading and final passage.

The motion prevailed by the following vote: iiYeasi27, Naysi4.

Yeas:iiArmbrister, Averitt, Bivins, Brimer, Carona, Deuell, Duncan, Ellis, Estes, Fraser, Gallegos, Harris, Hinojosa, Jackson, Janek, Lindsay, Lucio, Madla, Nelson, Ratliff, Shapiro, VanideiPutte, Wentworth, West, Whitmire, Williams, Zaffirini.

Nays:iiBarrientos, Ogden, Shapleigh, Staples.

1616 78th Legislature — Regular Session 69th Day

The resolution was read third time and was passed by the following vote:iiYeasi26, Naysi5.

Yeas:iiArmbrister, Averitt, Bivins, Brimer, Carona, Deuell, Duncan, Ellis, Estes, Fraser, Harris, Hinojosa, Jackson, Janek, Lindsay, Lucio, Madla, Nelson, Ratliff, Shapiro, VanideiPutte, Wentworth, West, Whitmire, Williams, Zaffirini.

Nays:iiBarrientos, Gallegos, Ogden, Shapleigh, Staples.

SENATE BILL 1067 ON SECOND READING

Senator Carona moved to suspend the regular order of business to take up for consideration SBi1067 at this time on its second reading:

SB 1067, Relating to administrative interpretation of home equity lending law.

The motion prevailed by a viva voce vote.

The bill was read second time and was passed to engrossment by a viva voce vote.

SENATE BILL 1067 ON THIRD READING

Senator Carona moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that SBi1067 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

On motion of Senator Carona, further consideration of SBi1067 was postponed.

Question — Shall SB 1067 be read third time?

(Senator Williams in Chair)

COMMITTEEiiSUBSTITUTE
SENATE BILL 563 ON THIRD READING

Senator Lucio moved to suspend the regular order of business to take up for consideration CSSBi563 at this time on its third reading and final passage:

CSSB 563, Relating to health benefit plan coverage for an enrollee with autism or a pervasive developmental disorder.

The motion prevailed by a viva voce vote.

RECORD OF VOTES

Senators Nelson and Shapiro asked to be recorded as voting "Nay" on the suspension of the regular order of business.

The bill was read third time and was passed by a viva voce vote.

RECORD OF VOTES

Senators Nelson and Shapiro asked to be recorded as voting "Nay" on the final passage of CSSBi563.

Wednesday, May 14, 2003 SENATE JOURNAL 1617

COMMITTEEiiSUBSTITUTE
SENATE BILL 1466 ON THIRD READING

The Presiding Officer laid before the Senate CSSB 1466 on its third reading. The bill had been read third time and further consideration postponed:

CSSBi1466, Relating to hotel occupancy taxes and the financing of convention center facilities in certain counties.

Question — Shall CSSBi1466 be finally passed?

Senator Averitt offered the following amendment to the bill:

Floor Amendment No. 1 on Third Reading

Amend CSSB 1466 by adding the following appropriately numbered SECTIONS to the bill and renumbering subsequent SECTIONS accordingly:

SECTIONi____.iiSection 351.001(2), Tax Code, is amended to read as follows:

(2)ii"Convention center facilities" or "convention center complex" means facilities that are primarily used to host conventions and meetings. The term means civic centers, civic center buildings, auditoriums, exhibition halls, and coliseums that are owned by the municipality or other governmental entity or that are managed in whole or part by the municipality. In a municipality with a population of 1.5 million or more, "convention center facilities" or "convention center complex" means civic centers, civic center buildings, auditoriums, exhibition halls, and coliseums that are owned by the municipality or other governmental entity or that are managed in part by the municipality, hotels owned by the municipality or a nonprofit municipally sponsored local government corporation created under Chapter 431, Transportation Code, within 1,000 feet of a convention center owned by the municipality, or a historic hotel owned by the municipality or a nonprofit municipally sponsored local government corporation created under Chapter 431, Transportation Code, within one mile of a convention center owned by the municipality. The term includes parking areas or facilities that are for the parking or storage of conveyances and that are located at or in the vicinity of other convention center facilities. The term also includes a hotel owned by or located on land that is owned by an eligible central municipality or by a nonprofit corporation acting on behalf of an eligible central municipality and that is located within 1,000 feet of a convention center facility owned by the municipality. In a municipality that has a population of less than 114,000 and that contains a portion of the Bosque River, the terms include a hotel owned by or located on land that is owned by the municipality or by a nonprofit corporation acting on behalf of the municipality and that is located within 1,500 feet of a convention center facility owned by the municipality.

SECTIONi____.iiSection 351.102(a), Tax Code, is amended to read as follows:

(a)iiSubject to the limitations provided by this subchapter, a municipality may pledge the revenue derived from the tax imposed under this chapter for the payment of bonds that are issued under Section 1504.002(a), Government Code, for one or more of the purposes provided by Section 351.101 or, in the case of a municipality of 1,500,000 or more, for the payment of principal of or interest on bonds or other obligations of a municipally sponsored local government corporation created under Chapter 431, Transportation Code, that were issued to pay the cost of the acquisition

1618 78th Legislature — Regular Session 69th Day

SECTIONi____.iiSection 1504.001(a), Government Code, is amended to read as follows:

(a)iiA municipality may establish, acquire, lease as lessee or lessor, construct, improve, enlarge, equip, repair, operate, or maintain a facility such as:

(1)iia civic center, auditorium, opera house, music hall, exhibition hall, coliseum, museum, library, or other municipal building;

(2)iia golf course, tennis court, or other similar recreational facility;

(3)iia hotel owned by a municipality or a nonprofit municipally sponsored local government corporation created under Chapter 431, Transportation Code, that is located not more than 1,000 feet from a convention center owned by a municipality with a population of 1,500,000 or more, or that is located within 1,500 feet of a convention center facility owned by a municipality that has a population of less than 114,000 and that contains a portion of the Bosque River;

(4)iia historic hotel owned by a municipality or a nonprofit municipally sponsored local government corporation created under Chapter 431, Transportation Code, that is located not more than one mile from a convention center owned by a municipality with a population of 1,500,000 or more; or

(5)iia parking facility at or in the immediate vicinity of a facility described by Subdivisions (1)-(4) for use in connection with that facility for off-street parking or storage of motor vehicles or other conveyances.

SECTIONi____.iiSection 2303.003(8), Government Code, is amended to read as follows:

(8)ii"Qualified hotel project" means a hotel proposed to be constructed by a municipality or a nonprofit municipally sponsored local government corporation created under the Texas Transportation Corporation Act, Chapter 431, Transportation Code, that is within 1,000 feet of a convention center owned by a municipality with [having] a population of 1,500,000 or more, or that is located within 1,500 feet of a convention center facility owned by a municipality that has a population of less than 114,000 and that contains a portion of the Bosque River. The term includes [including] shops, parking facilities, and any other facilities ancillary to the hotel.

SECTIONi____.iiSection 2303.5055(b), Government Code, is amended to read as follows:

(b)iiA municipality with a population of 1,500,000 or more, or a municipality that has a population of less than 114,000 and that contains a portion of the Bosque River, may agree to guarantee from hotel occupancy taxes the bonds or other obligations of a municipally sponsored local government corporation created under

Wednesday, May 14, 2003 SENATE JOURNAL 1619

The floor amendment was read and was adopted by a viva voce vote.

Senator Duncan offered the following amendment to the bill:

Floor Amendment No. 2 on Third Reading

Amend CSSB 1466 as follows:

1)i Insert the following new SECTION where appropriate and number accordingly:

SECTIONi____.iiSection 351.002 Tax Code is amended by adding a new Subdivision (11) to read as follows:

(11)ii"Eligible collegiate municipality" means a municipality with a population of 195,000 or more that includes in its corporate limits an institution of higher education (as defined in Section 61.003(8), Texas Education Code) that offers a degree in the field of hospitality and tourism. In an "eligible collegiate municipality," the term "convention center facilities" or "convention center complex" means such term as defined in Section 351.001(2) or civic centers, civic center buildings, auditoriums, exhibition halls, and coliseums that are owned by the municipality or other governmental entity or that are managed in part by the municipality, hotels owned by the municipality, a nonprofit municipally sponsored local government corporation created under Chapter 431 Texas Transportation Code, or a nonprofit corporation created in conformity with Section 509(a)(3) of the United States Internal Revenue Code, that are in the proximity of the campus of the institution of higher education and are within 2500 feet of an auditorium/coliseum complex owned by the municipality. The term includes parking areas or facilities that are for the parking or storage of conveyances and that are located at or in the vicinity of other convention center facilities."

(2)iiInsert the following new SECTION where appropriate and number accordingly:

SECTIONi____.iiSection 351.102(b), Tax Code is amended to read as follows:

(b)iiAn eligible central municipality or an eligible collegiate municipality may pledge the revenue derived from the tax imposed under this chapter from a hotel project that is owned by or located on land owned by the municipality or by a nonprofit corporation acting on behalf of an eligible central municipality or an eligible collegiate municipality and that is located within 1,000 feet of a convention center facility owned by the municipality or located as otherwise provided in Sec. 351.001(11) of the Tax Code for the payment of bonds or other obligations issued or incurred to acquire, lease, construct, and equip the hotel and any facilities ancillary to the hotel, including shops and parking facilities. For bonds or other obligations issued under this subsection, an eligible central municipality or an eligible collegiate municipality may only pledge revenue or other assets of the hotel project benefitting from those bonds or other obligations."

(3)iiInsert the following new SECTION where appropriate and number accordingly:

1620 78th Legislature — Regular Session 69th Day

SECTIONi____.iiSection 1504.001(b), Government Code by revising Subsection (b) to read as follows:

(b)iiAn eligible central municipality or an eligible collegiate municipality, as defined by Section 351.001, Tax Code, may establish, acquire, lease as lessee or lessor, construct, improve, enlarge, equip, repair, operate, or maintain a hotel, and any facilities ancillary to the hotel, including shops and parking facilities, that are owned by or located on land owned by the municipality or by a nonprofit corporation acting on behalf of the municipality, and that is located within 1,000 feet of a convention center facility owned by the municipality or located as otherwise provided in Sec. 351.001(11), Tax Code."

(4)iiInsert the following new SECTION where appropriate and number accordingly:

SECTIONi____.iiSection 2303.003(8), Government Code is amended by striking the period at the end of subdivision (8) and inserting the following:

or as otherwise defined in Sec. 351.001(11), Tax Code."

(5)iiInsert the following new SECTION where appropriate and number accordingly:

SECTIONi____.iiSection 2303.5055(b), Government Code is amended to read as follows:

(b)iiA municipality with a population of 1,500,000 or more or an eligible collegiate municipality as defined in Sec. 351.001, Tax Code may agree to guarantee from hotel occupancy taxes the bonds or other obligations of a municipally sponsored local government corporation created under the Texas Transportation Corporation Act (Article 15281, Vernon's Texas Civil Statutes) or a nonprofit corporation created in conformity with 509(a)(3) of the United States Internal Revenue Code that were issued or incurred to pay the cost of construction, remodeling, or rehabilitation of a qualified hotel project.

The floor amendment was read and was adopted by a viva voce vote.

On motion of Senator Lindsay and by unanimous consent, the caption was amended to conform to the body of the bill as amended.

CSSB 1466 as amended was finally passed by the following vote:iiYeasi29, Naysi2.

Yeas:iiArmbrister, Averitt, Barrientos, Bivins, Brimer, Deuell, Duncan, Ellis, Estes, Fraser, Gallegos, Harris, Hinojosa, Jackson, Janek, Lindsay, Lucio, Madla, Ogden, Ratliff, Shapiro, Shapleigh, Staples, VanideiPutte, Wentworth, West, Whitmire, Williams, Zaffirini.

Nays:iiCarona, Nelson.

Wednesday, May 14, 2003 SENATE JOURNAL 1621

COMMITTEEiiSUBSTITUTE
SENATE BILL 75 ON SECOND READING

Senator Zaffirini moved to suspend the regular order of business to take up for consideration CSSBi75 at this time on its second reading:

CSSB 75, Relating to child-care services for certain low-wage employees.

The motion prevailed by a viva voce vote.

The bill was read second time and was passed to engrossment by a viva voce vote.

COMMITTEEiiSUBSTITUTE
SENATE BILL 75 ON THIRD READING

Senator Zaffirini moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi75 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

The bill was read third time and was passed by the following vote:iiYeasi31, Naysi0.

COMMITTEEiiSUBSTITUTE
SENATE BILL 474 ON SECOND READING

Senator Lucio moved to suspend the regular order of business to take up for consideration CSSBi474 at this time on its second reading:

CSSB 474, Relating to an interim study on nutrition and health in public schools.

The motion prevailed by a viva voce vote.

The bill was read second time and was passed to engrossment by a viva voce vote.

COMMITTEEiiSUBSTITUTE
SENATE BILL 474 ON THIRD READING

Senator Lucio moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi474 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

The bill was read third time and was passed by a viva voce vote.

1622 78th Legislature — Regular Session 69th Day

COMMITTEEiiSUBSTITUTE
SENATE BILL 1444 ON SECOND READING

Senator Barrientos moved to suspend the regular order of business to take up for consideration CSSBi1444 at this time on its second reading:

CSSB 1444, Relating to safety regulations for certain extracurricular school activities.

The motion prevailed by a viva voce vote.

The bill was read second time.

Senator Barrientos offered the following amendment to the bill:

Floor Amendment No. 1

Amend CSSB 1444 as follows:

(1)iiOn page 2, line 50, between "school" and "that", insert "campus".

(2)iiOn page 2, line 53, between "school" and the comma, insert "campus".

(3)iiOn page 2, line 55, between "school" and "is", insert "campus".

The floor amendment was read and was adopted by a viva voce vote.

On motion of Senator Barrientos and by unanimous consent, the caption was amended to conform to the body of the bill as amended.

CSSB 1444 as amended was passed to engrossment by a viva voce vote.

COMMITTEEiiSUBSTITUTE
SENATE BILL 1444 ON THIRD READING

Senator Barrientos moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi1444 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

The bill was read third time and was passed by a viva voce vote.

(Senator Armbrister in Chair)

COMMITTEEiiSUBSTITUTE
SENATE BILL 1935 ON SECOND READING

Senator Fraser moved to suspend the regular order of business to take up for consideration CSSBi1935 at this time on its second reading:

CSSB 1935, Relating to the law governing the Brazos River Authority and the law governing the Lower Colorado River Authority.

The motion prevailed by a viva voce vote.

The bill was read second time and was passed to engrossment by a viva voce vote.

Wednesday, May 14, 2003 SENATE JOURNAL 1623

COMMITTEEiiSUBSTITUTE
SENATE BILL 1935 ON THIRD READING

Senator Fraser moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi1935 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

The bill was read third time and was passed by a viva voce vote.

STATEMENT OF LEGISLATIVE INTENT

Senator Fraser submitted the following statement of legislative intent for CSSBi1935:

The principal purpose of this bill is to codify the enabling legislation and subsequent session laws of the Brazos River Authority and the Lower Colorado River Authority as a new Title in the Water Code. Other than the one change to give the Governor the ability to appoint the chairman of the board, it is not my intent to change any other existing law with the respect to the authority of the Brazos River Authority or the Lower Colorado River Authority. In particular, I do not intend to broaden the authority of LCRA to participate in Texas retail electricity markets beyond the authority currently contained in Section 32.054(b) of the Texas Utilities Code, which limit the LCRA to serving only those retail electricity customers it was serving on September 1, 1995.

FRASER

COMMITTEEiiSUBSTITUTE
SENATE BILL 1369 ON SECOND READING

Senator Duncan moved to suspend the regular order of business to take up for consideration CSSBi1369 at this time on its second reading:

CSSB 1369, Relating to certain group benefits for retired school employees.

The motion prevailed by a viva voce vote.

RECORD OF VOTES

Senators Barrientos, Ellis, Gallegos, Lucio, Shapleigh, VanideiPutte, and West asked to be recorded as voting "Nay" on the suspension of the regular order of business.

The bill was read second time.

Senator Duncan offered the following amendment to the bill:

Floor Amendment No. 1

Amend CSSBi1369 as follows:

(1)iiIn SECTION 2 of the bill, in amended Section 1575.004(1)(B), Insurance Code (page 1, lines 56-57, Senate committee printing), strike "service credit, excluding any service credit purchased under Section 823.405, Government Code," and substitute "service credit earned for service in the public schools of this state".

1624 78th Legislature — Regular Session 69th Day

(2)iiIn SECTION 4 of the bill, in added Section 1575.161(c), Insurance Code (page 2, line 38, Senate committee printing), strike "in that same coverage tier effective September 1, 2004." and substitute "in that same coverage tier.".

(3)iiIn SECTION 5 of the bill, strike amended Section 1575.201, Insurance Code (page 2, lines 56-68, Senate committee printing), and substitute the following:

Sec.i1575.201.iiADDITIONAL STATE CONTRIBUTIONS; CERTAIN CONTRIBUTIONS. (a) The state through the trustee [system] shall contribute from money in the fund:

(1)iithe total cost of the basic plan covering each participating retiree; and

(2)iifor each participating dependent, surviving spouse, and surviving dependent child, the amount prescribed by the General Appropriations Act to cover part of the cost of the basic plan covering the dependent, surviving spouse, and surviving dependent child.

(b)iiThe trustee shall collect the amount of premium required for basic coverage under the group program that exceeds the amount contributed by the state for those individuals described by Subsection (a)(2).

The floor amendment was read and was adopted without objection.

On motion of Senator Duncan and by unanimous consent, the caption was amended to conform to the body of the bill as amended.

CSSB 1369 as amended was passed to engrossment by a viva voce vote.

RECORD OF VOTES

Senators Barrientos, Ellis, Gallegos, Lucio, Shapleigh, VanideiPutte, and West asked to be recorded as voting "Nay" on the passage of CSSBi1369 to engrossment.

MOTION TO PLACE

COMMITTEEiiSUBSTITUTE
SENATE BILL 1369 ON THIRD READING

Senator Duncan moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi1369 be placed on its third reading and final passage.

The motion was lost by the following vote:iiYeasi22, Naysi9. (Not receiving four-fifths vote of Members present)

Yeas:iiArmbrister, Averitt, Bivins, Brimer, Carona, Deuell, Duncan, Estes, Fraser, Harris, Jackson, Janek, Lindsay, Nelson, Ogden, Ratliff, Shapiro, Staples, Wentworth, Whitmire, Williams, Zaffirini.

Nays:iiBarrientos, Ellis, Gallegos, Hinojosa, Lucio, Madla, Shapleigh, VanideiPutte, West.

Wednesday, May 14, 2003 SENATE JOURNAL 1625

COMMITTEEiiSUBSTITUTE
SENATE BILL 1370 ON SECOND READING

Senator Duncan moved to suspend the regular order of business to take up for consideration CSSBi1370 at this time on its second reading:

CSSB 1370, Relating to certain group benefit plans provided to certain governmental officers, employees, and retirees and their dependents.

The motion prevailed by a viva voce vote.

RECORD OF VOTES

Senators Barrientos, Hinojosa, and Lucio asked to be recorded as voting "Nay" on the suspension of the regular order of business.

The bill was read second time.

Senator Duncan offered the following amendment to the bill:

Floor Amendment No. 1

Amend CSSBi1370 (Senate committee printing) as follows:

(1)iiStrike SECTION 1.01 of the bill (page 1, lines 16-21).

(2)iiIn SECTION 1.02 of the bill, strike amended Section 2(a), Article 3.50-8, Insurance Code (page 1, lines 25-35), and substitute:

(a)iiEach year, the trustee shall deliver to each school district, including a school district that is ineligible for state aid under Chapter 42, Education Code, each other educational district that is a member of the Teacher Retirement System of Texas, each participating charter school, and each regional education service center state funds in an amount, as determined by the trustee, equal to:

(1)iithe product of the number of full-time active employees employed by the district, school, or service center, other than in the capacity of professional staff, multiplied by $500 [$1,000] or a greater amount as provided by the General Appropriations Act for purposes of this article; and

(2)iithe product of the number of part-time active employees employed by the district, school, or service center, other than in the capacity of professional staff, multiplied by $250 or a greater amount as provided by the General Appropriations Act for purposes of this article.

(3)iiIn SECTION 2.03 of the bill, in amended Section 1551.102(a), Insurance Code (page 2, lines 28-29), strike "in accordance with this section".

(4)iiIn SECTION 2.04 of the bill, in amended Section 1551.102(d)(2), Insurance Code, strike Paragraph (A) (page 3, lines 12-17) and substitute the following:

(A)iiis at least 65 years of age, or would have been eligible to retire and receive a service retirement annuity from the Teacher Retirement System of Texas or the Employees Retirement System of Texas in an amount such that the sum of the person's age and amount of service credit, including months of age and credit, equals or exceeds the number 80 or would have been eligible to retire and receive a disability retirement annuity from the Teacher Retirement System of Texas or the Employees Retirement System of Texas, [based on at least 10 years of service credit] if the individual had not elected to participate in the optional retirement program; or

1626 78th Legislature — Regular Session 69th Day

(5)iiIn SECTION 2.10 of the bill, in the recital (page 4, line 57), strike "Subsection (c)" and substitute "Subsections (c) and (d)".

(6)iiIn SECTION 2.10 of the bill, in added Section 1551.319(c), Insurance Code (page 4, line 64), strike "section" and substitute "chapter".

(7)iiFollowing SECTION 2.10 of the bill (page 4, between lines 64 and 65), insert:

(d)iiThis section does not prohibit an institution of higher education from contributing, from money not appropriated from the general revenue fund, amounts in excess of the state contribution for a part-time employee described by Section 1551.101(e)(2).

(8)iiIn ARTICLE 3 of the bill, following the heading of the article (page 5, between lines 1 and 2), insert the following new SECTION, appropriately numbered:

SECTION 3.____.iiSection 1575.002, Insurance Code, as effective Junei1, 2003, is amended by repealing Subdivision (2), amending Subdivisions (1), (3), (4), and (7) and adding Subdivision (6-a) to conform to Section 3.03, Chapter 1187, Acts of the 77th Legislature, Regular Session, 2001, and to conform more closely to the source law from which the section was derived, and further amended to read as follows:

(1)ii"Active employee" means a contributing member of the Teacher Retirement System of Texas [an employee as defined by Section 821.001, Government Code,] who:

(A)iiis employed by a public school [a member of the system]; and

(B)iiis not entitled to coverage under a plan provided under Chapter 1551 or 1601.

(3)ii"Carrier" means an insurance company or hospital service corporation authorized by the department under this code or another insurance law of this state to provide any of the insurance coverages, benefits, or services provided by this chapter.

(4)ii"Fund" means the retired [Texas public] school employees group insurance fund.

(6-a)ii"Public school" means:

(A)iia school district;

(B)iianother educational district whose employees are members of the Teacher Retirement System of Texas;

(C)iia regional education service center established under Chapter 8, Education Code; or

(D)iian open-enrollment charter school established under Subchapter D, Chapter 12, Education Code.

(7)ii"Trustee" ["System"] means the Teacher Retirement System of Texas.

(9)iiIn SECTION 3.02 of the bill, strike amended Section 1575.204, Insurance Code (page 5, lines 9-19), and substitute:

Sec.i1575.204. PUBLIC SCHOOL CONTRIBUTION [RATIO OF STATE AND ACTIVE EMPLOYEE CONTRIBUTIONS]. Each state fiscal year, each public school shall contribute to the fund the amount prescribed by the General Appropriations Act, which may not be less than 0.25 percent or greater than 0.75 percent of the salary of each active employee of the public school. The public school shall make the contributions on a monthly basis and as otherwise prescribed by the trustee [If the amount of state and active employee contributions to the fund is raised

Wednesday, May 14, 2003 SENATE JOURNAL 1627

(10)iiIn SECTION 4.04 of the bill, in amended Section 1601.201(c), Insurance Code, between "the system" and "may contribute" (page 6, line 14), insert: ", from money appropriated from the general revenue fund,".

(11)iiIn SECTION 4.04 of the bill, in amended Section 1601.201(c), Insurance Code, between "coverage" and "[shall" (page 6, line 18), insert:

.

(d)iiSubsection (c) does not prohibit a system from contributing, from money not appropriated from the general revenue fund, amounts in excess of the amount specified by that subsection for an individual employed by the system in a position that as a condition of employment requires the individual to be enrolled as a student in the system in graduate level courses

(12)iiRenumber SECTIONS of the bill accordingly.

The floor amendment was read and was adopted by a viva voce vote.

Senator VanideiPutte offered the following amendment to the bill:

Floor Amendment No. 2

Amend CSSBi1370 by striking SECTION 1.02 of the bill (Senate committee printing, page 1, lines 22-47) and substituting:

SECTIONi1.02.iiSection 2, Article 3.50-8, Insurance Code, is amended by adding Subsection (e) to read as follows:

(e)iiAn employee is not eligible to receive a state contribution under this article until the 90th day after the date the employee is employed by an entity described by Section 1(2)(A) of this article.

The floor amendment was read and failed of adoption by the following vote:iiYeasi14, Naysi17.

Yeas:iiArmbrister, Barrientos, Carona, Ellis, Gallegos, Hinojosa, Lucio, Madla, Shapleigh, Staples, VanideiPutte, Wentworth, West, Whitmire.

Nays:iiAveritt, Bivins, Brimer, Deuell, Duncan, Estes, Fraser, Harris, Jackson, Janek, Lindsay, Nelson, Ogden, Ratliff, Shapiro, Williams, Zaffirini.

Senator VanideiPutte offered the following amendment to the bill:

Floor Amendment No. 3

Amend CSSBi1370 by striking SECTION 1.02 of the bill (Senate committee printing, page 1, lines 22-47) and substituting:

SECTIONi1.02.iiSection 2, Article 3.50-8, Insurance Code, is amended by adding Subsections (a-1), (e), (f), (g), and (h) to read as follows:

(a-1)iiNotwithstanding Subsection (a) of this section, and except as provided by Subsection (h) of this section, each year, the trustee shall deliver to each school district, including a school district that is ineligible for state aid under Chapter 42, Education Code, each other educational district that is a member of the Teacher Retirement System of Texas, each participating charter school, and each regional

1628 78th Legislature — Regular Session 69th Day

(e)iiA member of the professional support staff of a district, charter school, or service center described by Subsection (a-1) of this section is not eligible to receive state funds under Subsection (a-1) of this section.

(f)iiFor purposes of this section, a member of the professional support staff of a district, charter school, or service center described by Subsection (a-1) of this section has the meaning defined by rule by the trustee.

(g)iiAn employee is not eligible to receive a state contribution under this article until the 90th day after the date the employee is employed by an entity described by Section 1(2)(A) of this article.

(h)iiSubsections (a-1), (e), and (f) of this section apply only if full funding for Subsection (a) of this section is not appropriated in a General Appropriations Act enacted by the 78th Legislature. Subsections (a-1), (e), and (f) of this section and this subsection expire August 31, 2005.

The floor amendment was read and failed of adoption by a viva voce vote.

Senator Ratliff offered the following amendment to the bill:

Floor Amendment No. 4

Amend CSSBi1370 as follows:

(1)iiIn Article 1 of the bill, insert the following new SECTION:

SECTIONi1.____.iiSubchapter E, Chapter 3, Insurance Code, is amended by adding Article 3.50-7A to read as follows:

Art.i3.50-7A.iiLIMITATIONS APPLICABLE TO TEXAS SCHOOL EMPLOYEES UNIFORM GROUP COVERAGE PROGRAM. (a) This article applies only to the uniform group coverage program established under Article 3.50-7 of this code. A term used in this article has the meaning assigned by Section 2, Article 3.50-7, of this code.

(b)iiThe Teacher Retirement System of Texas, as trustee, may not contract for or provide a health coverage plan that excludes from participation in the network a general hospital that:

(1)iiis located in a county, all or part of which is located within the geographical service area of the health coverage plan, in which at least two, but not more than four, general hospitals are located; and

(2)iiagrees to provide medical and health care services under the plan subject to the same terms and conditions as other hospital providers under the plan.

(2)iiIn Article 2 of the bill, insert the following new SECTION:

SECTIONi2.____.ii(a) Section 1551.205, Insurance Code, is amended to conform to Section 30, Chapter 1231, Acts of the 77th Legislature, Regular Session, 2001, and further amended to read as follows:

Sec.i1551.205.iiLIMITATIONS.ii(a) The board of trustees may not contract for or provide a coverage plan that:

Wednesday, May 14, 2003 SENATE JOURNAL 1629

(1)iiexcludes or limits coverage or services for acquired immune deficiency syndrome, as defined by the Centers for Disease Control and Prevention of the United States Public Health Service, or human immunodeficiency virus infection; or

(2)iiprovides coverage for serious mental illness that is less extensive than the minimum coverage [provided] for serious mental [any physical] illness required by Section 3, Article 3.51-14.

(b)iiThe board of trustees may not contract for or provide a coverage plan that excludes from participation in the network a general hospital that:

(1)iiis located in a county, all or part of which is located within the geographical service area of the health coverage plan, in which at least two, but not more than four, general hospitals are located; and

(2)iiagrees to provide medical and health care services under the plan subject to the same terms and conditions as other hospital providers under the plan.

(b)iiSection 30, Chapter 1231, Acts of the 77th Legislature, Regular Session, 2001, is repealed.

(3)iiIn Article 3 of the bill, insert the following new SECTION:

SECTIONi3.____.iiSubchapter D, Chapter 1575, Insurance Code, as effective Junei1, 2003, is amended by adding Section 1575.163 to read as follows:

Sec.i1575.163.iiLIMITATIONS.iiThe Teacher Retirement System of Texas, as trustee, may not contract for or provide a health benefit plan that excludes from participation in the network a general hospital that:

(1)iiis located in a county, all or part of which is located within the geographical service area of the health coverage plan, in which at least two, but not more than four, general hospitals are located; and

(2)iiagrees to provide medical and health care services under the plan subject to the same terms and conditions as other hospital providers under the plan.

(4)iiRenumber SECTIONS of the bill appropriately.

The floor amendment was read and was adopted without objection.

On motion of Senator Duncan and by unanimous consent, the caption was amended to conform to the body of the bill as amended.

CSSB 1370 as amended was passed to engrossment by a viva voce vote.

RECORD OF VOTES

Senators Barrientos, Hinojosa, Lucio, and Shapleigh asked to be recorded as voting "Nay" on the passage of CSSBi1370 to engrossment.

COMMITTEEiiSUBSTITUTE
SENATE BILL 1011 ON SECOND READING

Senator West moved to suspend the regular order of business to take up for consideration CSSBi1011 at this time on its second reading:

CSSB 1011, Relating to the questioning of prospective jurors during voir dire examination.

The motion prevailed by a viva voce vote.

The bill was read second time and was passed to engrossment by a viva voce vote.

1630 78th Legislature — Regular Session 69th Day

COMMITTEEiiSUBSTITUTE
SENATE BILL 1011 ON THIRD READING

Senator West moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi1011 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi30, Naysi1.

Nays:iiStaples.

The bill was read third time and was passed by a viva voce vote.

SENATE BILL 791 ON SECOND READING

Senator West moved to suspend the regular order of business to take up for consideration SBi791 at this time on its second reading:

SB 791, Relating to a program to monitor the collection and remittance of certain court costs and fees.

The motion prevailed by a viva voce vote.

The bill was read second time and was passed to engrossment by a viva voce vote.

SENATE BILL 791 ON THIRD READING

Senator West moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that SBi791 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

The bill was read third time and was passed by a viva voce vote.

SENATE BILL 1942 ON SECOND READING

Senator Wentworth moved to suspend the regular order of business to take up for consideration SBi1942 at this time on its second reading:

SB 1942, Relating to the name of Southwest Texas State University.

The motion prevailed by a viva voce vote.

The bill was read second time and was passed to engrossment by a viva voce vote.

MOTION TO PLACE

SENATE BILL 1942 ON THIRD READING

Senator Wentworth moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that SBi1942 be placed on its third reading and final passage.

Wednesday, May 14, 2003 SENATE JOURNAL 1631

The motion was lost by the following vote:iiYeasi23, Naysi6. (Not receiving four-fifths vote of Members present)

Yeas:iiArmbrister, Bivins, Brimer, Carona, Deuell, Duncan, Estes, Fraser, Harris, Hinojosa, Janek, Lindsay, Lucio, Madla, Nelson, Ogden, Ratliff, Shapiro, Shapleigh, Staples, VanideiPutte, Wentworth, Whitmire.

Nays:iiBarrientos, Ellis, Gallegos, Jackson, West, Zaffirini.

Absent:iiAveritt, Williams.

COMMITTEEiiSUBSTITUTE
SENATE BILL 1592 ON SECOND READING

Senator West moved to suspend the regular order of business to take up for consideration CSSBi1592 at this time on its second reading:

CSSB 1592, Relating to applications for and allocations of reservations of the state ceiling among issuers of qualified residential rental project bonds.

The motion prevailed by a viva voce vote.

The bill was read second time and was passed to engrossment by a viva voce vote.

COMMITTEEiiSUBSTITUTE
SENATE BILL 1592 ON THIRD READING

Senator West moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi1592 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

The bill was read third time and was passed by a viva voce vote.

COMMITTEEiiSUBSTITUTE
SENATE BILL 1819 ON SECOND READING

Senator VanideiPutte moved to suspend the regular order of business to take up for consideration CSSBi1819 at this time on its second reading:

CSSB 1819, Relating to considering the economic impact to the state in awarding certain lottery commission contracts.

The motion prevailed by a viva voce vote.

RECORD OF VOTE

Senator Harris asked to be recorded as voting "Nay" on the suspension of the regular order of business.

The bill was read second time.

1632 78th Legislature — Regular Session 69th Day

Senator VanideiPutte offered the following amendment to the bill:

Floor Amendment No. 1

Amend CSSB 1819 (committee printing) as follows:

(1)iiIn SECTION 1 of the bill (page 1, line 14), strike "and (h)" and substitute "(h), and (i)".

(2)iiIn SECTION 1 of the bill, in amended Section 466.101, Government Code (page 1, line 26), reletter Subsection (h) as Subsection (i).

(3)iiIn SECTION 1 of the bill, immediately following proposed Subsection (g), Section 466.101, Government Code (page 1, between lines 25 and 26), insert new Subsection (h) to read as follows:

(h)iiThe methodology developed under Subsection (g) to determine a vendor's economic impact to this state or a political subdivision of this state is subject to audit by the state auditor based on a risk assessment performed by the state auditor and subject to the legislative audit committee's approval for inclusion of the work in the audit plan under Section 321.013(c).

The floor amendment was read and was adopted without objection.

On motion of Senator VanideiPutte and by unanimous consent, the caption was amended to conform to the body of the bill as amended.

CSSB 1819 as amended was passed to engrossment by a viva voce vote.

RECORD OF VOTE

Senator Harris asked to be recorded as voting "Nay" on the passage of CSSBi1819 to engrossment.

COMMITTEEiiSUBSTITUTE
SENATE BILL 1819 ON THIRD READING

Senator VanideiPutte moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi1819 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi30, Naysi1.

Nays:iiHarris.

The bill was read third time and was passed by a viva voce vote.

RECORD OF VOTE

Senator Harris asked to be recorded as voting "Nay" on the final passage of CSSBi1819.

SENATE BILL 189 WITH HOUSE AMENDMENT

Senator Carona called SBi189 from the President's table for consideration of the House amendment to the bill.

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

Wednesday, May 14, 2003 SENATE JOURNAL 1633

Committee Amendment No. 1

SB 189 is amended by striking the language on line 19 of page 1 of the bill (Senate engrossed version) and substituting the following:

shall be selected at a meeting of the court at any time during the year, but not later than the 15th

The amendment was read.

Senator Carona moved to concur in the House amendment to SBi189.

The motion prevailed by a viva voce vote.

SENATE BILL 1237 WITH HOUSE AMENDMENT

Senator Estes called SBi1237 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 1237 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to license fees for certain nursing and convalescent homes.

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

SECTIONi1.iiSection 242.095, Health and Safety Code, is amended by adding Subsection (d) to read as follows:

(d)iiIf the department appoints a trustee under this subchapter for a veteran's home as defined by Section 164.002, Natural Resources Code, the Veterans' Land Board is responsible for the trustee's fee under this section.

SECTIONi2.iiSection 242.097, Health and Safety Code, is amended by adding Subsection (d) to read as follows:

(d)iiThis section does not apply to a veteran's home as defined by Section 164.002, Natural Resources Code.

SECTIONi3.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

The amendment was read.

Senator Estes moved to concur in the House amendment to SBi1237.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

SENATE BILL 185 WITH HOUSE AMENDMENT

Senator Janek called SBi185 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.

1634 78th Legislature — Regular Session 69th Day

Floor Amendment No. 1

Amend SB 185 in SECTION 1. (7) after the word location and before the ; insert the following: other than a location or property where acitivities meeting the definition of Section 11.002(12)(A), Water Code, occur

The amendment was read.

Senator Janek moved to concur in the House amendment to SBi185.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

SENATE BILL 421 WITH HOUSE AMENDMENT

Senator Carona called SBi421 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 421 (engrossed version) as follows:

(1) In SECTION 4 of the bill, in the recital (page 3, line 17), strike "Chapter 1284" and substitute "Chapters 921 and 1284".

(2) Immediately before SECTION 5 of the bill (page 4, between lines 13 and 14), insert the following:

(d) [(c)] In consultation with the Texas Department of Human Services, the commissioner shall, by rule, adopt minimum rating standards for for-profit nursing homes and for-profit assisted living facilities that must be met before a for-profit nursing home or for-profit assisted living facility may obtain coverage through the association. The standards must promote the highest practical level of care for residents of those nursing homes and assisted living facilities.

(3) Strike SECTION 14 of the bill (page 14, lines 19-21) and renumber the subsequent SECTIONS of the bill appropriately.

The amendment was read.

Senator Carona moved to concur in the House amendment to SBi421.

The motion prevailed by a viva voce vote.

SENATE BILL 1764 WITH HOUSE AMENDMENT

Senator Deuell called SBi1764 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 1764 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the disclosure of certain information to a cemetery organization or funeral establishment for the purpose of marking a grave.

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

SECTIONi1.iiSubchapter A, Chapter 576, Health and Safety Code, is amended by adding Section 576.0055 to read as follows:

Wednesday, May 14, 2003 SENATE JOURNAL 1635

Sec.i576.0055.iiDISCLOSURE OF NAME AND BIRTH AND DEATH DATES FOR CERTAIN PURPOSES. (a) In this section, "cemetery organization" and "funeral establishment" have the meanings assigned by Section 711.001.

(b)iiNotwithstanding any other law, on request by a representative of a cemetery organization or funeral establishment, the administrator of a mental health facility shall release to the representative the name, date of birth, or date of death of a person who was a patient at the facility when the person died, unless the person or the person's guardian provided written instructions to the facility not to release the person's name or dates of birth and death. A representative of a cemetery organization or a funeral establishment may use a name or date released under this subsection only for the purpose of inscribing the name or date on a grave marker.

SECTIONi2.iiChapter 595, Health and Safety Code, is amended by adding Section 595.0055 to read as follows:

Sec.i595.0055.iiDISCLOSURE OF NAME AND BIRTH AND DEATH DATES FOR CERTAIN PURPOSES. (a) In this section, "cemetery organization" and "funeral establishment" have the meanings assigned by Section 711.001.

(b)iiNotwithstanding any other law, on request by a representative of a cemetery organization or funeral establishment, the superintendent of a residential care facility shall release to the representative the name, date of birth, or date of death of a person who was a resident at the facility when the person died, unless the person or the person's guardian provided written instructions to the facility not to release the person's name or dates of birth and death. A representative of a cemetery organization or a funeral establishment may use a name or date released under this subsection only for the purpose of inscribing the name or date on a grave marker.

SECTIONi3.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

The amendment was read.

Senator Deuell moved to concur in the House amendment to SBi1764.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

SENATE BILL 1577 WITH HOUSE AMENDMENT

Senator Carona called SBi1577 from the President's table for consideration of the House amendment to the bill.

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

Amendment

Amend SB 1577 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the effect of a criminal conviction on licensing and regulation of a mortgage broker or loan officer.

1636 78th Legislature — Regular Session 69th Day

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

SECTIONi1.iiSection 156.204, Finance Code, is amended by amending Subsections (a) and (c) and adding Subsection (d) to read as follows:

(a)iiTo be eligible to be licensed as a mortgage broker a person must:

(1)iibe an individual who is at least 18 years of age;

(2)iibe a citizen of the United States or a lawfully admitted alien;

(3)iimaintain a physical office in this state and designate that office in the application;

(4)iiprovide the commissioner with satisfactory evidence that the applicant satisfies one of the following:

(A)iithe person has received a bachelor's degree in an area relating to finance, banking, or business administration from an accredited college or university and has 18 months of experience in the mortgage or lending field as evidenced by documentary proof of full-time employment as a mortgage broker or loan officer with a mortgage broker or a person exempt under Section 156.202;

(B)iithe person is licensed in this state as:

(i)iian active real estate broker under The Real Estate License Act (Article 6573a, Vernon's Texas Civil Statutes);

(ii)iian active attorney; or

(iii) a local recording agent or insurance solicitor or agent for a legal reserve life insurance company under Chapter 21, Insurance Code, or holds an equivalent license under Chapter 21, Insurance Code; or

(C)iithe person has three years of experience in the mortgage lending field as evidenced by documentary proof of full-time employment as a loan officer with a mortgage broker or a person exempt under Section 156.202;

(5)iidemonstrate evidence of compliance with the financial requirements of this chapter; [and]

(6)iinot have been convicted of a criminal offense that the commissioner determines directly relates to the occupation of a mortgage broker as provided by [under] Chapter 53, Occupations Code;

(7)iisatisfy the commissioner as to the individual's good moral character, including the individual's honesty, trustworthiness, and integrity; and

(8)iinot be in violation of this chapter, a rule adopted under this chapter, or any order previously issued to the individual by the commissioner.

(c)iiTo be eligible to be licensed as a loan officer a person must:

(1)iibe an individual who is at least 18 years of age;

(2)iibe a citizen of the United States or a lawfully admitted alien;

(3)iidesignate in the application the name of the mortgage broker sponsoring the loan officer;

(4)iiprovide the commissioner with satisfactory evidence that the applicant satisfies one of the following:

(A)iithe person meets one of the requirements described by Subsection (a)(4);

(B)iithe person has successfully completed 15 hours of education courses approved by the commissioner under this section;

(C)iithe person has 18 months of experience as a loan officer as evidenced by documentary proof of full-time employment as a loan officer with a mortgage broker or a person exempt under Section 156.202; or

Wednesday, May 14, 2003 SENATE JOURNAL 1637

(D)iifor applications received prior to January 1, 2000, the mortgage broker that will sponsor the applicant provides a certification under oath that the applicant has been provided necessary and appropriate education and training regarding all applicable state and federal law and regulations relating to mortgage loans; [and]

(5)iinot have been convicted of a criminal offense that the commissioner determines directly relates to the occupation of a loan officer as provided by [under] Chapter 53, Occupations Code;

(6)iisatisfy the commissioner as to the individual's good moral character, including the individual's honesty, trustworthiness, and integrity; and

(7)iinot be in violation of this chapter, a rule adopted under this chapter, or any order previously issued to the individual by the commissioner.

(d)iiFor the purposes of Subsections (a)(6) and (c)(5), a person is considered convicted if a sentence is imposed on the person, the person receives community supervision, including deferred adjudication community supervision, or the court defers final disposition of the person's case.

SECTIONi2.iiSection 156.208, Finance Code, is amended by amending Subsections (a) and (b) and adding Subsection (h) to read as follows:

(a)iiA mortgage broker license issued under this chapter is valid for two years and may be renewed on or before its expiration date if the mortgage broker:

(1)iipays to the commissioner a renewal fee in an amount determined by the commissioner not to exceed $375 and a recovery fund fee provided by Section 156.502;

(2)iihas not been convicted of a criminal offense [felony] the commissioner determines is directly related to the occupation of a mortgage broker as provided by [under] Chapter 53, Occupations Code; and

(3)iiprovides the commissioner with satisfactory evidence that the mortgage broker:

(A)iihas attended, during the term of the current license, 15 hours of continuing education courses that the commissioner, in accordance with the rules adopted by the finance commission under this section, has approved as continuing education courses; or

(B)iimaintains an active license in this state as:

(i)iia real estate broker;

(ii)iia real estate salesperson;

(iii) an attorney; or

(iv)iia local recording agent or insurance solicitor or agent for a legal reserve life insurance company under Chapter 21, Insurance Code, or an equivalent license under Chapter 21, Insurance Code.

(b)iiA loan officer license issued under this chapter is valid for two years and may be renewed on or before its expiration date if the loan officer:

(1)iipays to the commissioner a renewal fee in an amount determined by the commissioner not to exceed $175 and a recovery fund fee provided by Section 156.502;

1638 78th Legislature — Regular Session 69th Day

(2)iihas not been convicted of a criminal offense [felony] the commissioner determines is directly related to the occupation of a loan officer as provided by [under] Chapter 53, Occupations Code; and

(3)iiprovides the commissioner with satisfactory evidence that the loan officer:

(A)iihas attended, during the term of the current license, 15 hours of continuing education courses that the commissioner, in accordance with the rules adopted by the finance commission under this section, has approved as continuing education courses, including courses provided by or through the licensed mortgage broker with whom the loan officer is associated after submission to and approval by the commission; or

(B)iimaintains an active license in this state as:

(i)iia real estate broker;

(ii)iia real estate salesperson;

(iii) an attorney; or

(iv)iia local recording agent or insurance solicitor or agent for a legal reserve life insurance company under Chapter 21, Insurance Code, or an equivalent license under Chapter 21, Insurance Code.

(h)iiFor the purposes of Subsections (a)(2) and (b)(2), a person is considered convicted if a sentence is imposed on the person, the person receives community supervision, including deferred adjudication community supervision, or the court defers final disposition of the person's case.

SECTIONi3.iiSection 156.303(a), Finance Code, is amended to read as follows:

(a)iiThe commissioner may order disciplinary action against a licensed mortgage broker or a licensed loan officer when the commissioner, after a hearing, has determined that the person:

(1)iiobtained a license under this chapter through a false or fraudulent representation or made a material misrepresentation in an application for a license under this chapter;

(2)iipublished or caused to be published an advertisement related to the business of a mortgage broker or loan officer that:

(A)iiis misleading;

(B)iiis likely to deceive the public;

(C)iiin any manner tends to create a misleading impression;

(D)iifails to identify as a mortgage broker or loan officer the person causing the advertisement to be published; or

(E)iiviolates federal or state law;

(3)iiwhile performing an act for which a license under this chapter is required, engaged in conduct that constitutes improper, fraudulent, or dishonest dealings;

(4)iifailed to notify the commissioner not later than the 30th day after the date of the final conviction if the person, in a court of this or another state or in a federal court, has been convicted of or entered a plea of guilty or nolo contendere to a felony or a criminal offense involving fraud;

(5)iifailed to use a fee collected in advance of closing of a mortgage loan for a purpose for which the fee was paid;

Wednesday, May 14, 2003 SENATE JOURNAL 1639

(6)iicharged or received, directly or indirectly, a fee for assisting a mortgage applicant in obtaining a mortgage loan before all of the services that the person agreed to perform for the mortgage applicant are completed, and the proceeds of the mortgage loan have been disbursed to or on behalf of the mortgage applicant, except as provided by Section 156.304;

(7)iifailed within a reasonable time to honor a check issued to the commissioner after the commissioner has mailed a request for payment by certified mail to the person's last known business address as reflected by the commissioner's records;

(8)iipaid compensation to a person who is not licensed or exempt under this chapter for acts for which a license under this chapter is required;

(9)iiinduced or attempted to induce a party to a contract to breach the contract so the person may make a mortgage loan;

(10)iipublished or circulated an unjustified or unwarranted threat of legal proceedings in matters related to the person's actions or services as a mortgage broker or loan officer, as applicable;

(11)iiestablished an association, by employment or otherwise, with a person not licensed or exempt under this chapter who was expected or required to act as a mortgage broker or loan officer;

(12)iiaided, abetted, or conspired with a person to circumvent the requirements of this chapter;

(13)iiacted in the dual capacity of a mortgage broker or loan officer and real estate broker, salesperson, or attorney in a transaction without the knowledge and written consent of the mortgage applicant or in violation of applicable requirements under federal law;

(14)iidiscriminated against a prospective borrower on the basis of race, color, religion, sex, national origin, ancestry, familial status, or a disability;

(15)iifailed or refused on demand to:

(A)iiproduce a document, book, or record concerning a mortgage loan transaction conducted by the mortgage broker or loan officer for inspection by the commissioner or the commissioner's authorized personnel or representative;

(B)iigive the commissioner or the commissioner's authorized personnel or representative free access to the books or records relating to the person's business kept by an officer, agent, or employee of the person or any business entity through which the person conducts mortgage brokerage activities, including a subsidiary or holding company affiliate; or

(C)iiprovide information requested by the commissioner as a result of a formal or informal complaint made to the commissioner;

(16)iifailed without just cause to surrender, on demand, a copy of a document or other instrument coming into the person's possession that was provided to the person by another person making the demand or that the person making the demand is under law entitled to receive; or

(17)iidisregarded or violated this chapter, [or] a rule adopted by the finance commission under this chapter, or an order issued by the commissioner under this chapter.

1640 78th Legislature — Regular Session 69th Day

SECTIONi4.iiThis Act takes effect September 1, 2003.

The amendment was read.

Senator Carona moved to concur in the House amendment to SBi1577.

The motion prevailed by a viva voce vote.

SENATE BILL 313 WITH HOUSE AMENDMENTS

Senator Harris called SBi313 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 313 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to collection of civil damages awarded against certain nonprofit institutions.

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

SECTIONi1.iiSubtitle C, Title 2, Civil Practice and Remedies Code, is amended by adding Chapter 40 to read as follows:

CHAPTERi40.iiAVAILABILITY OF CERTAIN FUNDS

TO PAY DAMAGES

Sec.i40.001.iiENDOWMENT OF CERTAIN NONPROFIT INSTITUTIONS. (a) This section applies only to damages awarded against:

(1)iia nonprofit institution or facility:

(A)iilicensed under Chapter 242, 246, or 247, Health and Safety Code, or Chapter 42, Human Resources Code; and

(B)iithat, before the date on which the action in which the damages are awarded is filed, is affiliated with:

(i)iia nonprofit religious organization that is exempt from federal income tax under Section 501(c)(3), Internal Revenue Code of 1986, as amended, and that is a nonprofit religious organization described by 34 T.A.C. Section 3.322(b)(3), as that provision existed on January 1, 2003, or a convention or association of those organizations; or

(ii)iia local Jewish Federation; or

(2)iia program operated by an institution or facility described by Subdivision (1).

(b)iiA claimant may not collect damages awarded against an institution, facility, or program described by Subsection (a) from an endowment fund, restricted fund, or similar fund or account if:

(1)iithe fund or account is exempt from federal taxation;

(2)iithe corpus, income, or a distribution from the fund or account is used to assist in funding care provided by a nursing institution licensed under Chapter 242, Health and Safety Code, and affiliated with an organization described by Subsection (a)(1)(B);

(3)iithe corpus of the fund or account is derived from donations or grants from third parties or public sources; and

Wednesday, May 14, 2003 SENATE JOURNAL 1641

(4)iithe use of the fund or account is temporarily or permanently restricted:

(A)iiby the donor or grantor at the time the donation or grant is made by:

(i)iithe express language, action, or agreement of the donor or grantor; or

(ii)iithe manner in which the donation or grant was solicited by the donee or grantee; or

(B)iiby the governing board of the institution or facility at the time the donation or grant is accepted.

SECTIONi2.iiChapter 40, Civil Practice and Remedies Code, as added by this Act, applies only to the collection of damages awarded on or after the effective date of this Act. The collection of damages awarded before the effective date of this Act is governed by the law in effect immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTIONi3.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.

Floor Amendment No. 1

Amend CSSB 313 (House committee printing) in SECTION 1 of the bill as follows:

(1)iiIn Subsection (b), added Section 40.001, Civil Practice and Remedies Code (page 2, line 2), between "similar fund or account" and "if:", insert ", or the income derived from the corpus of the fund or account,".

(2)iiIn Subsection (b)(4)(B), added Section 40.001, Civil Practice and Remedies Code (page 2, lines 20 and 21), strike "governing board of the institution or facility" and substitute "board governing the fund or account".

The amendments were read.

Senator Harris moved to concur in the House amendments to SBi313.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

SENATE BILL 1578 WITH HOUSE AMENDMENT

Senator Carona called SBi1578 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 1578 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to an examination requirement for mortgage broker and loan officer license applicants.

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

SECTIONi1.iiSections 156.204(a) and (c), Finance Code, are amended to read as follows:

1642 78th Legislature — Regular Session 69th Day

(a)iiTo be eligible to be licensed as a mortgage broker a person must:

(1)iibe an individual who is at least 18 years of age;

(2)iibe a citizen of the United States or a lawfully admitted alien;

(3)iimaintain a physical office in this state and designate that office in the application;

(4)iiprovide the commissioner with satisfactory evidence that the applicant satisfies one of the following:

(A)iithe person has received a bachelor's degree in an area relating to finance, banking, or business administration from an accredited college or university and has 18 months of experience in the mortgage or lending field as evidenced by documentary proof of full-time employment as a mortgage broker or loan officer with a mortgage broker or a person exempt under Section 156.202;

(B)iithe person is licensed in this state as:

(i)iian active real estate broker under The Real Estate License Act (Article 6573a, Vernon's Texas Civil Statutes);

(ii)iian active attorney; or

(iii)iia local recording agent or insurance solicitor or agent for a legal reserve life insurance company under Chapter 21, Insurance Code, or holds an equivalent license under Chapter 21, Insurance Code; or

(C)iithe person has three years of experience in the mortgage lending field as evidenced by documentary proof of full-time employment as a loan officer with a mortgage broker or a person exempt under Section 156.202;

(5)iiprovide the commissioner with satisfactory [demonstrate] evidence of:

(A)iihaving passed an examination, offered by a testing service or company approved by the finance commission, that demonstrates knowledge of:

(i)iithe mortgage industry; and

(ii)iithe role and responsibilities of a mortgage broker; and

(B)iicompliance with the financial requirements of this chapter; and

(6)iinot have been convicted of a criminal offense that the commissioner determines directly relates to the occupation of a mortgage broker under Chapter 53, Occupations Code.

(c)iiTo be eligible to be licensed as a loan officer a person must:

(1)iibe an individual who is at least 18 years of age;

(2)iibe a citizen of the United States or a lawfully admitted alien;

(3)iidesignate in the application the name of the mortgage broker sponsoring the loan officer;

(4)iiprovide the commissioner with satisfactory evidence that the applicant satisfies one of the following:

(A)iithe person meets one of the requirements described by Subsection (a)(4);

(B)iithe person has successfully completed 15 hours of education courses approved by the commissioner under this section;

(C)iithe person has 18 months of experience as a loan officer as evidenced by documentary proof of full-time employment as a loan officer with a mortgage broker or a person exempt under Section 156.202; or

Wednesday, May 14, 2003 SENATE JOURNAL 1643

(D)iifor applications received prior to January 1, 2000, the mortgage broker that will sponsor the applicant provides a certification under oath that the applicant has been provided necessary and appropriate education and training regarding all applicable state and federal law and regulations relating to mortgage loans; [and]

(5)iinot have been convicted of a criminal offense that the commissioner determines directly relates to the occupation of a loan officer under Chapter 53, Occupations Code; and

(6)iiprovide the commissioner with satisfactory evidence of having passed an examination, offered by a testing service or company approved by the finance commission, that demonstrates knowledge of:

(A)iithe mortgage industry; and

(B)iithe role and responsibilities of a loan officer.

SECTIONi2.iiThis Act takes effect September 1, 2003, and applies only to an application for a license that is made on or after that date. An application for a license made before the effective date of this Act is governed by the law in effect at the time the application was made, and the former law is continued in effect for that purpose.

The amendment was read.

Senator Carona moved to concur in the House amendment to SBi1578.

The motion prevailed by a viva voce vote.

COMMITTEEiiSUBSTITUTE
SENATE BILL 738 ON SECOND READING

Senator Duncan moved to suspend the regular order of business to take up for consideration CSSBi738 at this time on its second reading:

CSSB 738, Relating to the notice and hearing process for groundwater conservation districts.

The motion prevailed by a viva voce vote.

RECORD OF VOTE

Senator Shapleigh asked to be recorded as voting "Nay" on the suspension of the regular order of business.

The bill was read second time.

Senator Duncan offered the following amendment to the bill:

Floor Amendment No. 1

Amend CSSBi738 (committee printing) as follows:

(1)iiIn SECTION 1 of the bill, in the introductory language (page 1, line 14), strike ", (e), and (f)" and substitute "through (i)".

(2)iiIn SECTION 1 of the bill, in added Subsection (d), Section 36.101, Water Code (page 1, line 27), strike "and".

(3)iiIn SECTION 1 of the bill, in added Subsection (d), Section 36.101, Water Code (page 1, line 30), strike the period and substitute "; and".

(4)iiIn SECTION 1 of the bill, in added Subsection (d), Section 36.101, Water Code (page 1, between lines 30 and 31), insert the following:

1644 78th Legislature — Regular Session 69th Day

(4)iiprovide notice by mail, facsimile, or electronic mail to any person who has submitted a written request for notice of a rulemaking hearing.

(5)iiIn SECTION 1 of the bill, in amended Section 36.101, Water Code (page 1, between lines 41 and 42), insert the following:

(g)iiThe presiding officer shall prepare and keep a record of each rulemaking hearing in the form of an audio or video recording or a court reporter transcription. On the request of any party, the hearing shall be transcribed by a court reporter. The presiding officer may assess any costs associated with the court reporter transcription against the party requesting the transcription or among the parties to the hearing at the discretion of the presiding officer. The presiding officer may exclude a party from further participation in a hearing for failure to pay in a timely manner any costs associated with a court reporter transcription that were assessed against that party.

(h)iiA person may submit to the district a written request for notice of a rulemaking hearing. A written request for notice of a rulemaking hearing is effective for one year from the date the request is received by the district. To receive notice of a hearing after a request expires, a person must submit a new request.

(i)iiFailure to provide notice under Subsection (d)(4) does not invalidate any action taken by the district at the hearing.

(6)iiIn SECTION 2 of the bill, in amended Subsection (a), Section 36.113, Water Code (page 1, line 45), between "equipping," and "or", insert "operating,".

(7)iiIn SECTION 2 of the bill, in amended Subsection (a), Section 36.113, Water Code (page 1, line 50), immediately following the period, insert: "A district may not require a permit or a permit amendment for maintenance or repair of a well if the maintenance or repair does not increase the production capabilities of the well to more than its authorized or permitted production rates."

(8)iiIn SECTION 4 of the bill, in proposed Section 36.404, Water Code (page 3, lines 54-57), strike Subsection (c)(3) and substitute the following:

(3)iiprovide notice by:

(A)iiregular mail to the applicant;

(B)iiregular mail, facsimile, or electronic mail to any person who has submitted a written request for notice of the hearing; and

(C)iiregular mail to any other person entitled to receive notice under the rules of the district.

(d)iiA person may submit to the district a written request for notice of a hearing on a permit or permit amendment application. A written request for notice of a hearing is effective for one year from the date the request is received by the district. To receive notice of a hearing after a request expires, a person must submit a new request.

(e)iiFailure to provide notice under Subsection (c)(3)(B) does not invalidate any action taken by the district at the hearing.

(9)iiIn SECTION 4 of the bill, in proposed Section 36.405, Water Code (page 3, line 59), strike "attends" and substitute "participates in".

(10)iiIn SECTION 4 of the bill, in proposed Section 36.405, Water Code (page 3, line 62), after the semicolon, insert "and".

(11)iiIn SECTION 4 of the bill, in proposed Section 36.405, Water Code (page 3, line 64), strike "; and". and substitute ".".

Wednesday, May 14, 2003 SENATE JOURNAL 1645

(12)iiIn SECTION 4 of the bill, in proposed Section 36.405, Water Code (page 3, line 65), strike Subdivision (4).

(13)iiIn SECTION 4 of the bill, strike proposed Section 36.408, Water Code (page 4, lines 51-57), and substitute the following:

Sec.i36.408.iiRECORDING.ii(a) Except as provided by Subsection (b), the presiding officer shall prepare and keep a record of each hearing in the form of minutes, audio or video recording, or court reporter transcription. On the request of any party to a contested hearing, the hearing shall be transcribed by a court reporter. The presiding officer may assess costs associated with the court reporter transcription against the party requesting the transcription or among the parties to the hearing at the presiding officer's discretion. The presiding officer may exclude a party from further participation in a hearing for failure to pay in a timely manner any costs associated with a court reporter transcription that were assessed against that party.

(b)iiIf a hearing is uncontested, the presiding officer may substitute the report required under Section 36.410 for a method of recording the hearing described by Subsection (a).

(14)iiIn SECTION 4 of the bill, in proposed Section 36.413, Water Code (page 5, line 33), between "FINAL." and "A", insert "(a)".

(15)iiIn SECTION 4 of the bill, in proposed Section 36.413, Water Code, immediately following Subdivision (2) (page 5, between lines 43 and 44), insert the following:

(b)iiA decision by the board on a permit or permit amendment application is appealable if the decision is final under Subsection (a)(2).

(16)iiIn SECTION 6 of the bill (page 6, line 1), between "law" and "in effect", insert "related to notice and hearings".

The floor amendment was read and was adopted without objection.

Senator Duncan, on behalf of Senator Armbrister, offered the following amendment to the bill:

Floor Amendment No. 2

Amend CSSBi738 (committee printing) as follows:

(1)iiIn SECTION 2 of the bill, in the introductory language (page 1, line 42), strike "and 36.114, Water Code, are" and substitute ", Water Code, is".

(2)iiIn SECTION 2 of the bill, in amended Section 36.113, Water Code (page 2, lines 43-45), strike stricken Subsection (g) and substitute the following:

(g)iiIn implementing Subsection (e) or Section 36.116(b), a district may require an existing or historic user to prove the maximum annual amount of groundwater that the user applied to a beneficial use during a reasonable period established by the district that ends on or before the date on which the district publishes notice or adopts rules protecting existing or historic users under Subsection (e) or Section 36.116(b) [A district may require that changes in the withdrawal and use of groundwater under a permit not be made without the prior approval of a permit amendment issued by the district].

(h)iiIn implementing Subsection (g), a district may:

1646 78th Legislature — Regular Session 69th Day

(1)iifor a user who produced groundwater only within the final year of the period established under Subsection (g), issue a permit for existing or historic use based on an extrapolation of the user's beneficial use of groundwater to the amount that would have been used in a full calendar year for the same beneficial use;

(2)iifor use based on agricultural irrigation, issue a permit based on:

(A)iithe maximum annual amount of groundwater actually used during the period established under Subsection (g); or

(B)iithe acreage irrigated during the period established under Subsection (g); or

(3)iifor an electric utility, a power generation company, or retail electric provider as defined by Section 31.002, Utilities Code, issue a permit based on:

(A)iithe amount actually used as computed under and for the period established under Subsection (g) or Subdivision (1) of this subsection; or

(B)iian amount necessary to annually provide sufficient groundwater for cooling, boiler make-up, and potable purposes for use at an existing or planned power generation facility using land or the right to produce groundwater from land that was acquired by the electric utility, power generation company, or retail electric provider before May 1, 2003, to supply water to power generation facilities that on that date existed or were planned for future construction.

(i)iiAn annual report of groundwater use previously submitted to a state agency is admissible as evidence of existing or historic use under Subsection (g) or (h).

(3)iiIn SECTION 2 of the bill, between amended Sections 36.113 and 36.114, Water Code (page 2, between lines 45 and 46), insert the following appropriately numbered SECTIONS and renumber subsequent SECTIONS accordingly:

SECTION ____.iiSubchapter D, Chapter 36, Water Code, is amended by adding Section 36.1132 to read as follows:

Sec.i36.1132.iiDEFINED HISTORIC USE PERIODS FOR CERTAIN DISTRICTS.ii(a) This section applies only to a groundwater conservation district created under Section 59, Article XVI, Texas Constitution, that:

(1)iiis, at least in part, adjacent to an international border;

(2)iihas within its boundaries a part of an aquifer that is regulated under Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993; and

(3)iiis not regulated under Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993.

(b)iiIn implementing Section 36.113(e) or 36.116(b), and notwithstanding the periods described under Sections 36.113(g)(1) and (2), a district may institute a process requiring an existing or historic user to prove the maximum annual amount of groundwater that the user applied to a beneficial use during the period from:

(1)iiJune 1, 1972, to December 31, 1991; or

(2)iiJanuary 1, 1992, to January 7, 2003.

(c)iiIn implementing Subsection (b), for a user who produced groundwater only within the final year of the period established under Subsection (b)(2), a district shall issue a permit for existing or historic use based on an extrapolation of the user's beneficial use of groundwater to the amount that would have been used in a full calendar year for the same beneficial use.

Wednesday, May 14, 2003 SENATE JOURNAL 1647

(d)iiIf a district limits or reduces total permitted production within its boundaries in a manner consistent with its certified groundwater district management plan under Section 36.1072, the district shall limit or reduce the amount of permitted production of groundwater through proportionate reductions that will apply equally among classes of users in the following order, with all limitations or reductions that can be made in one class being made in that class before proceeding with limitations or reductions in the next subsequent class:

(1)iinew users, except as provided by Subdivision (2);

(2)iithe class of users described by Subsections (b)(1) and (c), or any new user who was issued a permit by the district on or before May 1, 2003, for the amount recognized in the permit; and

(3)iithe class of users described by Subsection (b)(2).

SECTION ____.iiSection 36.114, Water Code, is amended to read as follows:

(4)iiBetween SECTIONS 5 and 6 of the bill (page 5, between lines 63 and 64), insert the following appropriately numbered SECTION and renumber subsequent SECTIONS accordingly:

SECTION ____.ii(a) The legislature finds that:

(1)iigroundwater conservation districts have existing statutory authority to protect existing or historic use under Sections 36.113(e) and 36.116(b), Water Code;

(2)iiin implementing Sections 36.113(e) and 36.116(b), Water Code, it is important that groundwater conservation districts, in the conservation and management of groundwater, adopt precise rules regarding existing or historic use of groundwater, and that those rules may include definite time periods during which existing or historic use must be proven; and

(3)iiit will benefit the state and its citizens to set express statutory guidelines that clarify the ability of groundwater conservation districts to define and identify existing or historic use periods.

(b)iiThe changes in law made by this Act do not:

(1)iilimit the express or implied powers that groundwater conservation districts had before the effective date of this Act to implement Sections 36.113(e) and 36.116(b), Water Code, using reasonable time periods during which existing or historic use must be proven by a permit applicant; or

(2)iiinvalidate rules lawfully adopted by a groundwater conservation district before the effective date of this Act that use those reasonable time periods.

(c)iiA district to which Section 36.1132, Water Code, as added by this Act, applies may require a well that was previously exempted by district rule from the permitting procedures of the district but that is not exempt under Section 36.117(b), Water Code, and is no longer exempted by district rule, as of the effective date of this Act, to comply with the permitting procedures and rules of the district, as amended. This subsection does not apply to the requirement to obtain a permit to drill, equip, or complete a well that was drilled, equipped, or completed under an exemption by district rule before the date of repeal of the exemption; however, this subsection does apply to the production of groundwater from or operation of such a well.

The floor amendment was read.

1648 78th Legislature — Regular Session 69th Day

On motion of Senator Duncan, on behalf of Senator Armbrister, Floor Amendment No.i2 was withdrawn.

(President in Chair)

On motion of Senator Duncan, further consideration of CSSBi738 was postponed to a time certain of 11:00ia.m. tomorrow.

Question — Shall CSSB 738 as amended be passed to engrossment?

COMMITTEEiiSUBSTITUTE
SENATE BILL 1948 ON SECOND READING

Senator Whitmire moved to suspend the regular order of business to take up for consideration CSSBi1948 at this time on its second reading:

CSSB 1948, Relating to the release on bond of certain applicants for a writ of habeas corpus.

The motion prevailed by a viva voce vote.

The bill was read second time.

Senator Whitmire offered the following amendment to the bill:

Floor Amendment No. 1

Amend CSSBi1948, in Section 1 of the bill as follows:

(1)iiInsert a new Subsection (d) in added Article 11.65, Code of Criminal Procedure (page 1, between lines 28 and 29, committee printing), to read as follows:

(d)iiArticle 44.04(b) does not apply to the release of an applicant on bond under this article.

(2)iiReletter the subsections of Article 11.65 accordingly.

The floor amendment was read and was adopted by a viva voce vote.

Senator Williams offered the following amendment to the bill:

Floor Amendment No. 2

Amend CSSBi1948, in SECTION 1 of the bill, by striking Subsection (d), Article 11.65, Code of Criminal Procedure (committee printing page 1, lines 29 and 30).

The floor amendment was read and was adopted by the following vote:iiYeasi28, Naysi3.

Yeas:iiArmbrister, Averitt, Barrientos, Bivins, Brimer, Carona, Deuell, Duncan, Ellis, Estes, Fraser, Gallegos, Harris, Hinojosa, Janek, Lindsay, Lucio, Madla, Nelson, Ratliff, Shapiro, Shapleigh, VanideiPutte, Wentworth, West, Whitmire, Williams, Zaffirini.

Nays:iiJackson, Ogden, Staples.

On motion of Senator Whitmire and by unanimous consent, the caption was amended to conform to the body of the bill as amended.

CSSB 1948 as amended was passed to engrossment by a viva voce vote.

Wednesday, May 14, 2003 SENATE JOURNAL 1649

COMMITTEEiiSUBSTITUTE
SENATE BILL 1948 ON THIRD READING

Senator Whitmire moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSBi1948 be placed on its third reading and final passage.

The motion prevailed by the following vote:iiYeasi31, Naysi0.

The bill was read third time and was passed by the following vote:iiYeasi31, Naysi0.

SENATE RULES SUSPENDED

(Posting Rules)

On motion of Senator Armbrister and by unanimous consent, Senate Rule 11.10(a) and Senate Rule 11.18(a) were suspended in order that the Committee on Natural Resources might meet and consider HBi638 today.

NOTICE GIVEN FOR

LOCAL AND UNCONTESTED CALENDAR

Senator Harris announced that a Local and Uncontested Calendar had been furnished to each Member of the Senate. He then gave notice that the Local and Uncontested Calendar Session would be held at 8:00ia.m. tomorrow and that all bills and resolutions would be considered on second and third reading in the order in which they were listed.

MOTION TO ADJOURN

On motion of Senator Whitmire and by unanimous consent, the Senate at 4:16ip.m. agreed to adjourn, upon conclusion of the Local and Uncontested Calendar Session, until 11:00ia.m. tomorrow.

RESOLUTIONS OF RECOGNITION

The following resolutions were adopted by the Senate:

Memorial Resolutions

SR 830 by Hinojosa, In memory of Lucien Flournoy of Alice.

SR 831 by Hinojosa, In memory of Joe Garza.

SR 840 by Ellis, In memory of Emory Gaston Smith.

Congratulatory Resolutions

SR 829 by Hinojosa, Congratulating Juan and Eva Rodriguez of Edinburg on their 64th anniversary.

SR 832 by Wentworth, Congratulating Georgia Lynn Malmsten on her 35th birthday.

SR 833 by Wentworth, Commending James Edmund McCann V on his high school graduation.

SR 834 by Jackson, Commending Lauren Michelle Wallace of Angleton for her accomplishments.

1650 78th Legislature — Regular Session 69th Day

SR 835 by Jackson, Congratulating Lisa Vavricka for winning the Nicholas Green Award.

SR 836 by Jackson, Commending Karen Wheeler-Hall for winning first place in the Texas Medical Association's 2002 Excellence in Science Teaching competition.

SR 837 by Lindsay, Commending Alex Gorham of Kingwood for achieving the rank of Eagle Scout.

SR 838 by Averitt, Congratulating James R. and Latriece Cross on their 50th wedding anniversary.

SR 839 by Ellis, Congratulating Dwight Boykins of Houston on his selection for a 2003 Minority Achiever Award.

SR 841 by Ellis, Commending Christopher B. Payne for his contributions to the office of Representative Jaime Capelo.

SR 842 by Ellis, Commending Andrea Medley for her contributions to the office of Representative Yvonne Davis.

SR 843 by Ellis, Commending Shareen Larmond for her contributions to the office of Senator John Whitmire.

SR 844 by Ellis, Commending Maria Vittoria G. Carminati Garbino for her contributions to the office of Representative Allan Ritter.

SR 845 by Ellis, Commending Ender Reed for his contributions to the office of Representative Dawnna Dukes.

SR 846 by Ellis, Commending Robert Loving for his contributions to the office of Representative Eddie Rodriguez.

SR 847 by Ellis, Commending Nathaniel Walker for his contributions to the office of Representative Vilma Luna.

SR 848 by Ellis, Commending Samrawit Sium for her contributions to the office of Representative Joe Deshotel.

SR 849 by Ellis, Commending Van Pham for her contributions to the office of Senator Rodney Ellis.

SR 850 by Ellis, Commending Danielle Perry for her contributions to the office of Representative Joe E. Moreno.

SR 851 by Ellis, Commending Shunn D. Rector for her contributions to the office of Representative Ruth Jones McClendon.

SR 852 by Ellis, Commending Lloyd Joshua Sams for his contributions to the office of Representative Vicki Truitt.

SR 853 by Ellis, Commending Paul Molina for his contributions to the office of Representative Glenn Lewis.

SR 854 by Ellis, Commending Gustavo Luis Santos e Nascimento for his contributions to the office of Senator Rodney Ellis.

Wednesday, May 14, 2003 SENATE JOURNAL 1651

SR 855 by Ellis, Commending Veronica Garza for her contributions to the office of Senator Leticia VanideiPutte.

SR 856 by Ellis, Commending Blair Kasi Haley for his contributions to the office of Representative Senfronia Thompson.

SR 857 by Ellis, Commending Marc Antonio Gonzalez for his contributions to the office of Senator Robert Duncan.

SR 858 by Ellis, Commending LaTosha McGill for her contributions to the office of Representative Jim Dunnam.

SR 859 by Ellis, Commending Kunal Dora for his contributions to the office of Representative Scott Hochberg.

SR 860 by Ellis, Commending Erica Hunter for her contributions to the office of Editor Evan Smith of Texas Monthly magazine.

SR 861 by Ellis, Commending Eric Blue for his contributions to the office of Representative Todd Smith.

SR 862 by Ellis, Commending Dian King for her contributions to the office of Representative Lon Burnam.

SR 863 by Ellis, Commending Keitha Johnson for her contributions to the office of Representative David Farabee.

SR 864 by Ellis, Commending Shannon Harris for her contributions to the office of Representative Garnet Coleman.

SR 865 by Ellis, Commending Farsam Farschtschian for his contributions to the office of Senator Rodney Ellis.

SR 866 by Ellis, Commending Michele Leal for her contributions to the office of Representative Jessica Farrar.

SR 867 by Ellis, Commending Chesley Hamm for her contributions to the office of Representative Jim McReynolds.

SR 868 by Ellis, Commending Richard Aaron Barrera for his contributions to the office of Senator Rodney Ellis.

SR 869 by Whitmire, Congratulating Lernora Riggins on her retirement.

SR 870 by Jackson, Congratulating Eddie and Doris Janek of Galveston on their 50th wedding anniversary.

SR 871 by Madla, Commending Frank J. Deckert for his service to the National Park Service.

SR 872 by West, Commending Daleanor Willette Weaver for graduating in the top ten percent of her high school class.

SR 874 by Fraser, Commending Rod Tate for his contributions to the field of education.

SR 875 by Staples, Paying tribute to individuals who participated in the recovery effort of the space shuttle Columbia.

1652 78th Legislature — Regular Session 69th Day

SR 876 by Nelson, Congratulating Bob Miller on his 50th birthday.

SR 877 by Nelson, Commending Gina Bullock for her selection as youth governor of Texas for 2003-2004.

SR 878 by Nelson, Congratulating Dorothy Hall of Fort Worth on her 100th birthday.

SR 879 by Nelson, Commending Jim Horn and all the other members of the armed forces who are serving in Operation Iraqi Freedom.

SR 880 by Nelson, Commending Jeremy Booker and all the other members of the armed forces who are serving in Operation Iraqi Freedom.

SR 881 by Nelson, Commending Lincoln Dale Milstead and all the other members of the armed forces who are serving in Operation Iraqi Freedom.

Official Designation Resolution

SR 827 by Zaffirini, Recognizing Robert Anthony O'Rourke as a treasured citizen of the State of Texas.

RECESS

On motion of Senator Whitmire, the Senate at 4:17ip.m. recessed until 8:00ia.m. tomorrow for the Local and Uncontested Calendar Session.

AAAPPENDIXAA

COMMITTEE REPORTS

The following committee reports were received by the Secretary of the Senate in the order listed:

May 14, 2003

EDUCATIONi—iCSSBi26, SBi1200 (Amended), CSSBi1367, CSSBi1546

CRIMINAL JUSTICEi—iCSSBi515, SBi846, SJRi3

INFRASTRUCTURE DEVELOPMENT AND SECURITYi—iCSSBi355, CSSBi399, CSHBi157, CSHBi1883, CSHBi2116

BUSINESS AND COMMERCEi—iCSSCRi48

FINANCEi—iCSHBi7

JURISPRUDENCEi—iHBi1539, HBi1648, HBi1666, HBi2157, HBi2238, CSHBi2402, CSHBi2415, HBi2682, HBi3386

STATE AFFAIRSi—iHJRi3, CSHBi4, CSHBi1948, CSSBi319

HEALTH AND HUMAN SERVICESi—iSBi1062, SBi1219

STATE AFFAIRSi—iCSSBi1243

FINANCEi—iCSSBi1862

Wednesday, May 14, 2003 SENATE JOURNAL 1653