82R22238 JJT/KLA/KKA/MXM/TJS-D
	By: Duncan	S.B. No. 1811
	(Pitts)
	Substitute the following for S.B. No. 1811:  No.

	A BILL TO BE ENTITLED
	AN ACT
	relating to certain state fiscal matters; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1.  REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES
	GENERALLY
	SECTION 1.01.  This article applies to each state agency, as
	that term is defined by Section 317.001, Government Code.
	SECTION 1.02.  Notwithstanding any other statute of this
	state, each state agency to which this article applies is
	authorized to reduce or recover expenditures by:
	(1)  consolidating any reports or publications the
	agency is required to make and filing or delivering any of those
	reports or publications exclusively by electronic means;
	(2)  extending the effective period of any license,
	permit, or registration the agency grants or administers;
	(3)  entering into a contract with another governmental
	entity or with a private vendor to carry out any of the agency's
	duties;
	(4)  modifying eligibility requirements for, the
	processes used to determine eligibility for, and the services
	provided to persons who receive benefits under any law the agency
	administers, including benefits and services required by federal
	law, to ensure that those benefits are received by the most
	deserving persons consistent with the purposes for which the
	benefits are provided;
	(5)  providing that any communication between the
	agency and another person and any document required to be delivered
	to or by the agency, including any application, notice, billing
	statement, receipt, or certificate, may be made or delivered by
	e-mail or through the Internet; and
	(6)  adopting and collecting fees or charges to cover
	any costs the agency incurs in performing its lawful functions.
	ARTICLE 2.  FISCAL MATTERS REGARDING REGULATION AND TAXATION
	OF INSURERS
	SECTION 2.01.  Section 463.160, Insurance Code, is amended
	to read as follows:
	Sec. 463.160.  PREMIUM TAX CREDIT FOR CLASS A ASSESSMENT.
	The amount of a Class A assessment paid by a member insurer in each
	taxable year shall be allowed as a credit on the amount of premium
	taxes due [in the same manner as a credit is allowed under Section
	401.151(e)].
	SECTION 2.02.  Sections 221.006, 222.007, 223.009,
	401.151(e), and 401.154, Insurance Code, are repealed.
	SECTION 2.03.  This article takes effect immediately if this
	Act 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 article takes effect September 1, 2011.
	ARTICLE 3.  TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND
	SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS
	SECTION 3.01.  Subchapter B, Chapter 31, Human Resources
	Code, is amended by adding Section 31.0326 to read as follows:
	Sec. 31.0326.  VERIFICATION OF IDENTITY AND PREVENTION OF
	DUPLICATE PARTICIPATION. The Health and Human Services Commission
	shall use appropriate technology to:
	(1)  confirm the identity of applicants for benefits
	under the financial assistance program; and
	(2)  prevent duplicate participation in the program by
	a person.
	SECTION 3.02.  Chapter 33, Human Resources Code, is amended
	by adding Section 33.0231 to read as follows:
	Sec. 33.0231.  VERIFICATION OF IDENTITY AND PREVENTION OF
	DUPLICATE PARTICIPATION. The department shall use appropriate
	technology to:
	(1)  confirm the identity of applicants for benefits
	under the supplemental nutrition assistance program; and
	(2)  prevent duplicate participation in the program by
	a person.
	SECTION 3.03.  Section 31.0325, Human Resources Code, is
	repealed.
	SECTION 3.04.  If before implementing Section 31.0326 or
	33.0231, Human Resources Code, as added by this article, a state
	agency determines that a waiver or authorization from a federal
	agency is necessary for implementation of that law, the agency
	shall request the waiver or authorization and may delay
	implementing that law until the waiver or authorization is granted.
	SECTION 3.05.  This article takes effect immediately if this
	Act 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 article takes effect September 1, 2011.
	ARTICLE 4.  TAX RECORDS
	SECTION 4.01.  Section 2153.201, Occupations Code, is
	amended by amending Subsection (b) and adding Subsection (c) to
	read as follows:
	(b)  A record required under Subsection (a) must:
	(1)  be available at all times for inspection by the
	attorney general, the comptroller, or an authorized representative
	of the attorney general or comptroller as provided by Subsection
	(c);
	(2)  include information relating to:
	(A)  the kind of each machine;
	(B)  the date each machine is:
	(i)  acquired or received in this state; and
	(ii)  placed in operation;
	(C)  the location of each machine, including the:
	(i)  county;
	(ii)  municipality, if any; and
	(iii)  street or rural route number;
	(D)  the name and complete address of each
	operator of each machine;
	(E)  if the owner is an individual, the full name
	and address of the owner; and
	(F)  if the owner is not an individual, the name
	and address of each principal officer or member of the owner; and
	(3)  be maintained[:
	[(A)]  at a permanent address in this state
	designated on the application for a license under Section
	2153.153[; and
	[(B)     until the second anniversary of the date the
	owner ceases ownership of the machine that is the subject of the
	record].
	(c)  A record required under Subsection (a) must be available
	for inspection under Subsection (b) for at least four years and as
	required by Section 111.0041, Tax Code.
	SECTION 4.02.  Section 111.0041, Tax Code, is amended to
	read as follows:
	Sec. 111.0041.  RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE
	CLAIMS. (a) Except as provided by Subsection (b), a [Any] taxpayer
	who is required by this title to keep records shall keep those
	records open to inspection by the comptroller, the attorney
	general, or the authorized representatives of either of them for at
	least four years.
	(b)  A taxpayer is required to keep records open for
	inspection under Subsection (a) for more than four years throughout
	any period when:
	(1)  any tax, penalty, or interest may be assessed,
	collected, or refunded by the comptroller; or
	(2)  an administrative hearing is pending before the
	comptroller, or a judicial proceeding is pending, to determine the
	amount of the tax, penalty, or interest that is to be assessed,
	collected, or refunded.
	(c)  A taxpayer shall produce contemporaneous records and
	supporting documentation appropriate to the tax or fee for the
	period in question to substantiate and enable verification of the
	taxpayer's claim related to the amount of tax, penalty, or interest
	to be assessed, collected, or refunded in an administrative or
	judicial proceeding. Contemporaneous records and supporting
	documentation appropriate to the tax or fee include invoices,
	vouchers, checks, shipping records, contracts, and other written
	documentation reflecting legal relationships and taxes collected
	or paid.
	(d)  Summary records submitted by the taxpayer, including
	accounting journals and ledgers, without supporting
	contemporaneous records and documentation for the period in
	question are not sufficient to substantiate and enable verification
	of the taxpayer's claim regarding the amount of tax, penalty, or
	interest that may be assessed, collected, or refunded.
	(e)  This section prevails over any other conflicting
	provision of this title.
	SECTION 4.03.  Section 112.052, Tax Code, is amended by
	adding Subsection (d) to read as follows:
	(d)  A taxpayer shall produce contemporaneous records and
	supporting documentation appropriate to the tax or fee for the
	period in question to substantiate and enable verification of a
	taxpayer's claim relating to the amount of the tax, penalty, or
	interest that is to be assessed, collected, or refunded, as
	required by Section 111.0041.
	SECTION 4.04.  Section 112.151, Tax Code, is amended by
	adding Subsection (f) to read as follows:
	(f)  A taxpayer shall produce contemporaneous records and
	supporting documentation appropriate to the tax or fee for the
	period in question to substantiate and enable verification of a
	taxpayer's claim relating to the amount of the tax, penalty, or
	interest that is to be assessed, collected, or refunded, as
	required by Section 111.0041.
	SECTION 4.05.  Section 151.025(b), Tax Code, is amended to
	read as follows:
	(b)  A record required by Subsection (a) [of this section]
	shall be kept for not less than four years from the date [day] that
	it is made unless:
	(1)  the comptroller authorizes in writing its
	destruction at an earlier date; or
	(2)  Section 111.0041 requires that the record be kept
	for a longer period.
	SECTION 4.06.  Section 152.063, Tax Code, is amended by
	adding Subsection (h) to read as follows:
	(h)  Section 111.0041 applies to a person required to keep
	records under this chapter.
	SECTION 4.07.  Section 152.0635, Tax Code, is amended by
	adding Subsection (e) to read as follows:
	(e)  Section 111.0041 applies to a person required to keep
	records under this chapter.
	SECTION 4.08.  Section 154.209(a), Tax Code, is amended to
	read as follows:
	(a)  Except as provided by Section 111.0041, each [Each]
	permit holder shall keep records available for inspection and
	copying by the comptroller and the attorney general for at least
	four years.
	SECTION 4.09.  Section 155.110(a), Tax Code, is amended to
	read as follows:
	(a)  Except as provided by Section 111.0041, each [Each]
	permit holder shall keep records available for inspection and
	copying by the comptroller and the attorney general for at least
	four years.
	SECTION 4.10.  Section 160.046, Tax Code, is amended by
	adding Subsection (g) to read as follows:
	(g)  A person required to keep records under this section
	shall also keep the records as required by Section 111.0041.
	SECTION 4.11.  Subchapter A, Chapter 162, Tax Code, is
	amended by adding Section 162.0125 to read as follows:
	Sec. 162.0125.  DUTY TO KEEP RECORDS. A person required to
	keep a record under this chapter shall also keep the record as
	required by Section 111.0041.
	SECTION 4.12.  This article takes effect immediately if this
	Act 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 article takes effect September 1, 2011.
	ARTICLE 5.  COLLECTION IMPROVEMENT PROGRAM
	SECTION 5.01.  Articles 103.0033(f), (h), (i), and (j), Code
	of Criminal Procedure, are amended to read as follows:
	(f)  The [comptroller, in cooperation with the] office[,]
	shall develop a methodology for determining the collection rate of
	counties and municipalities described by Subsection (e) before
	implementation of a program.  The office [comptroller] shall
	determine the rate for each county and municipality not later than
	the first anniversary of the county's or municipality's adoption of
	a program.
	(h)  The office[, in consultation with the comptroller,]
	may:
	(1)  use case dispositions, population, revenue data,
	or other appropriate measures to develop a prioritized
	implementation schedule for programs; and
	(2)  determine whether it is not cost-effective to
	implement a program in a county or municipality and grant a waiver
	to the county or municipality.
	(i)  Each county and municipality shall at least annually
	submit to the office [and the comptroller] a written report that
	includes updated information regarding the program, as determined
	by the office [in cooperation with the comptroller].  The report
	must be in a form approved by the office [in cooperation with the
	comptroller].
	(j)  The office [comptroller] shall periodically audit
	counties and municipalities to verify information reported under
	Subsection (i) and confirm that the county or municipality is
	conforming with requirements relating to the program.  [The
	comptroller shall consult with the office in determining how
	frequently to conduct audits under this section.]
	SECTION 5.02.  Section 133.058(e), Local Government Code, is
	amended to read as follows:
	(e)  A municipality or county may not retain a service fee
	if, during an audit under [Section 133.059 of this code or] Article
	103.0033(j), Code of Criminal Procedure, the Office of Court
	Administration of the Texas Judicial System [comptroller]
	determines that the municipality or county is not in compliance
	with Article 103.0033, Code of Criminal Procedure.  The
	municipality or county may continue to retain a service fee under
	this section on receipt of a written confirmation from the Office of
	Court Administration of the Texas Judicial System [comptroller]
	that the municipality or county is in compliance with Article
	103.0033, Code of Criminal Procedure.
	SECTION 5.03.  Section 133.103(c-1), Local Government Code,
	is amended to read as follows:
	(c-1)  The treasurer shall send 100 percent of the fees
	collected under this section to the comptroller if, during an audit
	under [Section 133.059 of this code or] Article 103.0033(j), Code
	of Criminal Procedure, the Office of Court Administration of the
	Texas Judicial System [comptroller] determines that the
	municipality or county is not in compliance with Article 103.0033,
	Code of Criminal Procedure.  The municipality or county shall
	continue to dispose of fees as otherwise provided by this section on
	receipt of a written confirmation from the Office of Court
	Administration of the Texas Judicial System [comptroller] that the
	municipality or county is in compliance with Article 103.0033, Code
	of Criminal Procedure.
	SECTION 5.04.  This article takes effect September 1, 2011.
	ARTICLE 6. PENALTIES FOR FAILURE TO REPORT OR REMIT
	CERTAIN TAXES OR FEES
	SECTION 6.01.  Section 111.00455(b), Tax Code, is amended to
	read as follows:
	(b)  The following are not contested cases under Subsection
	(a) and Section 2003.101, Government Code:
	(1)  a show cause hearing or any hearing not related to
	the collection, receipt, administration, or enforcement of the
	amount of a tax or fee imposed, or the penalty or interest
	associated with that amount, except for a hearing under Section
	151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;
	(2)  a property value study hearing under Subchapter M,
	Chapter 403, Government Code;
	(3)  a hearing in which the issue relates to:
	(A)  Chapters 72-75, Property Code;
	(B)  forfeiture of a right to do business;
	(C)  a certificate of authority;
	(D)  articles of incorporation;
	(E)  a penalty imposed under Section 151.703(d)
	[151.7031];
	(F)  the refusal or failure to settle under
	Section 111.101; or
	(G)  a request for or revocation of an exemption
	from taxation; and
	(4)  any other hearing not related to the collection,
	receipt, administration, or enforcement of the amount of a tax or
	fee imposed, or the penalty or interest associated with that
	amount.
	SECTION 6.02.  Section 151.433(f), Tax Code, is amended to
	read as follows:
	(f)  If a person fails to file a report required by this
	section or fails to file a complete report, the comptroller may
	suspend or cancel one or more permits issued to the person under
	Section 151.203 and may impose a civil or criminal penalty, or both,
	under Section 151.703(d) [151.7031] or 151.709.
	SECTION 6.03.  Section 151.703, Tax Code, is amended by
	adding Subsection (d) to read as follows:
	(d)  In addition to any other penalty authorized by this
	section, a person who fails to file a report as required by this
	chapter shall pay a penalty of $50. The penalty provided by this
	subsection is assessed without regard to whether the taxpayer
	subsequently files the report or whether any taxes were due from the
	taxpayer for the reporting period under the required report.
	SECTION 6.04.  Section 152.045, Tax Code, is amended by
	adding Subsection (d) to read as follows:
	(d)  In addition to any other penalty provided by law, the
	owner of a motor vehicle subject to the tax on gross rental receipts
	who is required to file a report as provided by this chapter and who
	fails to timely file the report shall pay a penalty of $50. The
	penalty provided by this subsection is assessed without regard to
	whether the taxpayer subsequently files the report or whether any
	taxes were due from the taxpayer for the reporting period under the
	required report.
	SECTION 6.05.  Section 152.047, Tax Code, is amended by
	adding Subsection (j) to read as follows:
	(j)  In addition to any other penalty provided by law, the
	seller of a motor vehicle sold in a seller-financed sale who is
	required to file a report as provided by this chapter and who fails
	to timely file the report shall pay a penalty of $50. The penalty
	provided by this subsection is assessed without regard to whether
	the taxpayer subsequently files the report or whether any taxes
	were due from the taxpayer for the reporting period under the
	required report.
	SECTION 6.06.  Section 156.202, Tax Code, is amended by
	amending Subsection (c) and adding Subsection (d) to read as
	follows:
	(c)  The minimum penalty under Subsections (a) and (b) [this
	section] is $1.
	(d)  In addition to any other penalty authorized by this
	section, a person who fails to file a report as required by this
	chapter shall pay a penalty of $50. The penalty provided by this
	subsection is assessed without regard to whether the taxpayer
	subsequently files the report or whether any taxes were due from the
	taxpayer for the reporting period under the required report.
	SECTION 6.07.  Section 162.401, Tax Code, is amended by
	adding Subsection (c) to read as follows:
	(c)  In addition to any other penalty authorized by this
	section, a person who fails to file a report as required by this
	chapter shall pay a penalty of $50. The penalty provided by this
	subsection is assessed without regard to whether the taxpayer
	subsequently files the report or whether any taxes were due from the
	taxpayer for the reporting period under the required report.
	SECTION 6.08.  Section 171.362, Tax Code, is amended by
	amending Subsection (c) and adding Subsection (f) to read as
	follows:
	(c)  The minimum penalty under Subsections (a) and (b) [this
	section] is $1.
	(f)  In addition to any other penalty authorized by this
	section, a taxable entity who fails to file a report as required by
	this chapter shall pay a penalty of $50. The penalty provided by
	this subsection is assessed without regard to whether the taxable
	entity subsequently files the report or whether any taxes were due
	from the taxable entity for the reporting period under the required
	report.
	SECTION 6.09.  Subchapter B, Chapter 183, Tax Code, is
	amended by adding Section 183.024 to read as follows:
	Sec. 183.024.  FAILURE TO PAY TAX OR FILE REPORT. (a) A
	permittee who fails to file a report as required by this chapter or
	who fails to pay a tax imposed by this chapter when due shall pay
	five percent of the amount due as a penalty, and if the permittee
	fails to file the report or pay the tax within 30 days after the day
	the tax or report is due, the permittee shall pay an additional five
	percent of the amount due as an additional penalty.
	(b)  The minimum penalty under Subsection (a) is $1.
	(c)  A delinquent tax draws interest beginning 60 days from
	the due date.
	(d)  In addition to any other penalty authorized by this
	section, a permittee who fails to file a report as required by this
	chapter shall pay a penalty of $50. The penalty provided by this
	subsection is assessed without regard to whether the permittee
	subsequently files the report or whether any taxes were due from the
	permittee for the reporting period under the required report.
	SECTION 6.10.  Section 771.0712, Health and Safety Code, is
	amended by adding Subsections (c) and (d) to read as follows:
	(c)  A seller who fails to file a report or remit a fee
	collected or payable as provided by this section and comptroller
	rules shall pay five percent of the amount due and payable as a
	penalty, and if the seller fails to file the report or remit the fee
	within 30 days after the day the fee or report is due, the seller
	shall pay an additional five percent of the amount due and payable
	as an additional penalty.
	(d)  In addition to any other penalty authorized by this
	section, a seller who fails to file a report as provided by this
	section shall pay a penalty of $50. The penalty provided by this
	subsection is assessed without regard to whether the seller
	subsequently files the report or whether any taxes were due from the
	seller for the reporting period under the required report.
	SECTION 6.11.  Section 151.7031, Tax Code, is repealed.
	SECTION 6.12.  The change in law made by this article applies
	only to a report due or a tax or fee due and payable on or after the
	effective date of this article. A report due or a tax or fee due and
	payable before the effective date of this article is governed by the
	law in effect at that time, and that law is continued in effect for
	that purpose.
	SECTION 6.13.  This article takes effect immediately if this
	Act 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 article takes effect September 1, 2011.
	ARTICLE 7.  CERTAIN FOUNDATION SCHOOL PROGRAM PAYMENTS
	SECTION 7.01.  Sections 42.259(c), (d), and (f), Education
	Code, are amended to read as follows:
	(c)  Payments from the foundation school fund to each
	category 2 school district shall be made as follows:
	(1)  22 percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of September of a fiscal year;
	(2)  18 percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of October;
	(3)  9.5 percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of November;
	(4)  7.5 percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of April;
	(5)  five percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of May;
	(6)  10 percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of June;
	(7)  13 percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of July; and
	(8)  15 percent of the yearly entitlement of the
	district shall be paid in an installment to be made after the 5th
	day of September and not later than the 10th day of September of the
	calendar year following the calendar year of the payment made under
	Subdivision (1) [on or before the 25th day of August].
	(d)  Payments from the foundation school fund to each
	category 3 school district shall be made as follows:
	(1)  45 percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of September of a fiscal year;
	(2)  35 percent of the yearly entitlement of the
	district shall be paid in an installment to be made on or before the
	25th day of October; and
	(3)  20 percent of the yearly entitlement of the
	district shall be paid in an installment to be made after the 5th
	day of September and not later than the 10th day of September of the
	calendar year following the calendar year of the payment made under
	Subdivision (1) [on or before the 25th day of August].
	(f)  Except as provided by Subsection (c)(8) or (d)(3), any
	[Any] previously unpaid additional funds from prior fiscal years
	owed to a district shall be paid to the district together with the
	September payment of the current fiscal year entitlement.
	SECTION 7.02.  Section 466.355(c), Government Code, is
	repealed.
	SECTION 7.03.  The changes made by this article to Section
	42.259, Education Code, apply only to a payment from the foundation
	school fund that is made on or after the effective date of this
	article. A payment to a school district from the foundation school
	fund that is made before that date is governed by Section 42.259,
	Education Code, as it existed before amendment by this article, and
	the former law is continued in effect for that purpose.
	SECTION 7.04.  This article takes effect September 1, 2011.
	ARTICLE 8.  UNCLAIMED PROPERTY
	SECTION 8.01.  Section 74.101(a), Property Code, is amended
	to read as follows:
	(a)  Each holder who on June 1 [30] holds property that is
	presumed abandoned under Chapter 72, 73, or 75 of this code or under
	Chapter 154, Finance Code, shall file a report of that property on
	or before the following July [November] 1. The comptroller may
	require the report to be in a particular format, including a format
	that can be read by a computer.
	SECTION 8.02.  Section 74.1011(a), Property Code, is amended
	to read as follows:
	(a)  Except as provided by Subsection (b), a holder who on
	June 1 [30] holds property valued at more than $250 that is presumed
	abandoned under Chapter 72, 73, or 75 of this code or Chapter 154,
	Finance Code, shall, on or before the preceding May [following
	August] 1, mail to the last known address of the known owner written
	notice stating that:
	(1)  the holder is holding the property; and
	(2)  the holder may be required to deliver the property
	to the comptroller on or before July [November] 1 if the property is
	not claimed.
	SECTION 8.03.  Sections 74.301(a) and (c), Property Code,
	are amended to read as follows:
	(a)  Except as provided by Subsection (c), each holder who on
	June 1 [30] holds property that is presumed abandoned under Chapter
	72, 73, or 75 shall deliver the property to the comptroller on or
	before the following July [November] 1 accompanied by the report
	required to be filed under Section 74.101.
	(c)  If the property subject to delivery under Subsection (a)
	is the contents of a safe deposit box, the comptroller may instruct
	a holder to deliver the property on a specified date before July
	[November] 1 of the following year.
	SECTION 8.04.  Section 74.708, Property Code, is amended to
	read as follows:
	Sec. 74.708.  PROPERTY HELD IN TRUST. A holder who on June 1
	[30] holds property presumed abandoned under Chapters 72-75 holds
	the property in trust for the benefit of the state on behalf of the
	missing owner and is liable to the state for the full value of the
	property, plus any accrued interest and penalty. A holder is not
	required by this section to segregate or establish trust accounts
	for the property provided the property is timely delivered to the
	comptroller in accordance with Section 74.301.
	SECTION 8.05.  (a)  Except as provided by Subsection (b) of
	this section, this article takes effect September 1, 2011.
	(b)  Sections 74.101(a), 74.1011(a), 74.301(a) and (c), and
	74.708, Property Code, as amended by this article, take effect
	January 1, 2013.
	ARTICLE 9.  FISCAL MATTERS RELATED TO VOTER REGISTRATION
	SECTION 9.01.  Sections 18.065(b), (c), and (d), Election
	Code, are amended to read as follows:
	(b)  On determining that a registrar is not in substantial
	compliance, the secretary shall deliver written notice of the
	noncompliance to[:
	[(1)]  the registrar and include[, including] in the
	notice a description of the violation and an explanation of the
	action necessary for substantial compliance and of the consequences
	of noncompliance[; and
	[(2)     the comptroller of public accounts, including in
	the notice the identity of the noncomplying registrar].
	(c)  On determining that a noncomplying registrar has
	corrected the violation and is in substantial compliance, the
	secretary shall deliver written notice to the registrar [and to the
	comptroller] that the registrar is in substantial compliance.
	(d)  [The comptroller shall retain a notice received under
	this section on file until July 1 following the voting year in which
	it is received.] The secretary shall retain a copy of each notice
	the secretary delivers under this section for two years after the
	date the notice is delivered.
	SECTION 9.02.  Section 19.001(a), Election Code, is amended
	to read as follows:
	(a)  Before May 15 of each year, the registrar shall prepare
	and submit to the secretary of state [comptroller of public
	accounts] a statement containing:
	(1)  the total number of initial registrations for the
	previous voting year;
	(2)  the total number of registrations canceled under
	Sections 16.031(a)(1), 16.033, and 16.0332 for the previous voting
	year; and
	(3)  the total number of registrations for which
	information was updated for the previous voting year.
	SECTION 9.03.  The heading to Section 19.002, Election Code,
	is amended to read as follows:
	Sec. 19.002.  PAYMENTS [ISSUANCE OF WARRANTS BY
	COMPTROLLER].
	SECTION 9.04.  Sections 19.002(b) and (d), Election Code,
	are amended to read as follows:
	(b)  After June 1 of each year, the secretary of state
	[comptroller of public accounts] shall make payments [issue
	warrants] pursuant to vouchers submitted by the registrar and
	approved by the secretary of state in amounts that in the aggregate
	do not exceed the registrar's entitlement. The secretary of state
	shall prescribe the procedures necessary to implement this
	subsection.
	(d)  The secretary of state [comptroller] may not make a
	payment under Subsection (b) [issue a warrant] if on June 1 of the
	year in which the payment [warrant] is to be made [issued the most
	recent notice received by the comptroller from the secretary of
	state under Section 18.065 indicates that] the registrar is not in
	substantial compliance with Section 15.083, 16.032, 18.042, or
	18.065 or with rules implementing the registration service program.
	SECTION 9.05.  The heading to Section 19.0025, Election
	Code, is amended to read as follows:
	Sec. 19.0025.  ELECTRONIC ADMINISTRATION OF VOUCHERS AND
	PAYMENTS [WARRANTS].
	SECTION 9.06.  Section 19.0025(a), Election Code, is amended
	to read as follows:
	(a)  The secretary of state shall establish and maintain an
	online electronic system for administering vouchers submitted and
	payments made [warrants issued] under Section 19.002.
	SECTION 9.07.  Section 19.002(c), Election Code, is
	repealed.
	SECTION 9.08.  This article takes effect September 1, 2011.
	ARTICLE 10.  CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF
	PUBLIC ACCOUNTS
	SECTION 10.01.  Section 403.0551(d), Government Code, is
	amended to read as follows:
	(d)  This section does not authorize the comptroller to
	deduct the amount of a state employee's indebtedness to a state
	agency from any amount of compensation owed by the agency to the
	employee, the employee's successor, or the assignee of the employee
	or successor. In this subsection, "compensation" has the meaning
	assigned by Section 403.055 and ["compensation,"] "indebtedness,"
	"state agency," "state employee," and "successor" have the meanings
	assigned by Section 666.001.
	SECTION 10.02.  Section 404.022(h), Government Code, is
	amended to read as follows:
	(h)  The comptroller may execute a simplified version of a
	depository agreement with an eligible institution desiring to hold
	[$98,000 or less in] state deposits that are fully insured by the
	Federal Deposit Insurance Corporation or the National Credit Union
	Share Insurance Fund.
	SECTION 10.03.  Section 411.109(a), Government Code, is
	amended to read as follows:
	(a)  The comptroller is entitled to obtain from the
	department criminal history record information maintained by the
	department that the comptroller believes is necessary for the
	enforcement or administration of Chapter 151, 152, [153,] 154, [or]
	155, or 162, Tax Code, including criminal history record
	information that relates to a person who is:
	(1)  an applicant for a permit under any of those
	chapters;
	(2)  a permit holder under any of those chapters;
	(3)  an officer, director, stockholder owning 10
	percent or more of the outstanding stock, partner, owner, or
	managing employee of an applicant or permit holder under any of
	those chapters that is a corporation, association, joint venture,
	syndicate, partnership, or proprietorship;
	(4)  believed to have violated any of those chapters;
	or
	(5)  being considered by the comptroller for employment
	as a peace officer.
	SECTION 10.04.  Section 403.0551(d), Government Code, as
	amended by this article, applies to a deduction made on or after the
	effective date of this Act for an indebtedness to a state agency
	regardless of:
	(1)  the date the indebtedness accrued; or
	(2)  the dates of the pay period for which the
	compensation from which the indebtedness is deducted is earned.
	ARTICLE 11. PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND
	OTHER MATERIALS
	SECTION 11.01.  Section 61.539(c), Education Code, is
	amended to read as follows:
	(c)  As soon as practicable after each state fiscal year, the
	board [comptroller] shall prepare a report for that fiscal year of
	the number of students registered in a medical branch, school, or
	college, the total amount of tuition charges collected by each
	institution, the total amount transferred to the comptroller under
	this section, and the total amount available in the physician
	education loan repayment program account for the repayment of
	student loans of physicians under this subchapter.  The board
	[comptroller] shall deliver a copy of the report to [the board and
	to] the governor, lieutenant governor, and speaker of the house of
	representatives not later than January 1 following the end of the
	fiscal year covered by the report.
	SECTION 11.02.  Section 5.05(c), Tax Code, is amended to
	read as follows:
	(c)  The comptroller shall electronically publish all
	materials under this section [provide without charge one copy of
	all materials to officials of local government who are responsible]
	for administering the property tax system. [If a local government
	official requests more than one copy, the comptroller may charge a
	reasonable fee to offset the costs of printing and distributing the
	materials.] The comptroller shall make the materials available to
	local governmental officials and members of the public but may
	charge a reasonable fee to offset the costs of preparing, printing,
	and distributing the materials.
	SECTION 11.03.  Section 5.06, Tax Code, is amended to read as
	follows:
	Sec. 5.06.  EXPLANATION OF TAXPAYER REMEDIES. [(a)] The
	comptroller shall prepare and electronically publish a pamphlet
	explaining the remedies available to dissatisfied taxpayers and the
	procedures to be followed in seeking remedial action. The
	comptroller shall include in the pamphlet advice on preparing and
	presenting a protest.
	[(b)     The comptroller shall provide without charge a
	reasonable number of copies of the pamphlet to any person on
	request. The comptroller may charge a person who requests multiple
	copies of the pamphlet a reasonable fee to offset the costs of
	printing and distributing those copies. The comptroller at its
	discretion shall determine the number of copies that a person may
	receive without charge.]
	SECTION 11.04.  Section 5.09, Tax Code, is amended to read as
	follows:
	Sec. 5.09.  BIENNIAL [ANNUAL] REPORTS. (a) The comptroller
	shall prepare a biennial [publish an annual] report of [the
	operations of the appraisal districts. The report shall include
	for each appraisal district, each county, and each school district
	and may include for other taxing units] the total appraised
	values[, assessed values,] and taxable values of taxable property
	by category [class of property, the assessment ratio,] and the tax
	rates of each county, municipality, and school district in effect
	for the two years preceding the year in which the report is prepared
	[rate].
	(b)  Not later than December 31 of each even-numbered year,
	the [The] comptroller shall:
	(1)  electronically publish on the comptroller's
	Internet website the [deliver a copy of each annual] report
	required by [published under] Subsection (a); and
	(2)  notify [of this section to] the governor, the
	lieutenant governor, and each member of the legislature that the
	report is available on the website.
	SECTION 11.05.  The following are repealed:
	(1)  Sections 51.607, 403.030, and 552.143(e),
	Government Code; and
	(2)  Subchapter F, Chapter 379A, Local Government Code.
	ARTICLE 12.  SALES AND USE TAX HOLIDAY
	SECTION 12.01.  The heading to Section 151.326, Tax Code, is
	amended to read as follows:
	Sec. 151.326.  CLOTHING AND FOOTWEAR FOR LIMITED PERIOD
	UNDER CERTAIN CIRCUMSTANCES.
	SECTION 12.02.  Section 151.326, Tax Code, is amended by
	amending Subsection (a) and adding Subsections (c), (d), (e), and
	(f) to read as follows:
	(a)  Subject to Subsection (e), the [The] sale of an article
	of clothing or footwear designed to be worn on or about the human
	body is exempted from the taxes imposed by this chapter if:
	(1)  the sales price of the article is less than $100;
	and
	(2)  the sale takes place during a period beginning at
	12:01 a.m. on the third Friday in August and ending at 12 midnight
	on the following Sunday.
	(c)  On or after January 1, but not later than January 31, of
	each odd-numbered year, the comptroller shall determine the
	following:
	(1)  whether a deficit exists in the current state
	fiscal biennium in the general revenue-related funds used for
	certification; and
	(2)  whether general revenue-related funds used for
	certification and estimated to be available for the succeeding
	state fiscal biennium are less than the general revenue-related
	funds used for certification and available for the current state
	fiscal biennium.
	(d)  The comptroller shall base the determinations required
	by Subsection (c) on the statement required by Section 49a, Article
	III, Texas Constitution, and submitted to the legislature convening
	in regular session the year the determination is made and shall
	assume that the exemptions provided by this section and Section
	151.327 apply.
	(e)  The exemptions provided by this section do not apply:
	(1)  in the state fiscal year in which the comptroller
	makes the determination required by Subsection (c) if the
	comptroller determines that the condition specified by Subsection
	(c)(1) exists; and
	(2)  in the state fiscal year following the year in
	which the comptroller makes the determination required by
	Subsection (c) if the comptroller determines that the condition
	specified by Subsection (c)(2) exists.
	(f)  Not later than February 15 of each odd-numbered year,
	the comptroller shall provide notice of whether the exemptions
	provided by this section apply during that state fiscal year and the
	subsequent state fiscal year. The comptroller shall provide the
	notice to each sales tax permit holder and shall clearly post the
	information on the comptroller's Internet website.
	SECTION 12.03.  The heading to Section 151.327, Tax Code, is
	amended to read as follows:
	Sec. 151.327.  SCHOOL SUPPLIES AND SCHOOL BACKPACKS BEFORE
	START OF SCHOOL UNDER CERTAIN CIRCUMSTANCES.
	SECTION 12.04.  Section 151.327, Tax Code, is amended by
	amending Subsection (a-1) and adding Subsection (c) to read as
	follows:
	(a-1)  Subject to Subsection (c), the [The] sale or storage,
	use, or other consumption of a school supply or a school backpack is
	exempted from the taxes imposed by this chapter if the school supply
	or backpack is purchased:
	(1)  for use by a student in a public or private
	elementary or secondary school;
	(2)  during the period described by Section
	151.326(a)(2); and
	(3)  for a sales price of less than $100.
	(c)  An exemption under this section does not apply to the
	sale or storage, use, or other consumption of a taxable item that
	occurs during a state fiscal year during which the exemptions
	provided by Section 151.326 do not apply.
	SECTION 12.05.  The comptroller of public accounts shall
	make the initial determinations required by Section 151.326(c), Tax
	Code, as added by this article, not later than January 31, 2013.
	SECTION 12.06.  Notwithstanding Sections 151.326 and
	151.327, Tax Code, as amended by this article, the sale or storage,
	use, or other consumption of a taxable item is not exempt from the
	taxes imposed by Chapter 151, Tax Code, under those sections if the
	sale occurs:
	(1)  during the state fiscal year ending August 31,
	2011, if this Act receives enough votes to take effect immediately
	in accordance with Section 12.07 of this article; or
	(2)  during the state fiscal year ending August 31,
	2012.
	SECTION 12.07.  This article takes effect immediately if
	this Act 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 article takes effect September 1, 2011.
	ARTICLE 13.  SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE
	SECTION 13.01.  Section 101.053(b), Insurance Code, is
	amended to read as follows:
	(b)  Sections 101.051 and 101.052 do not apply to:
	(1)  the lawful transaction of surplus lines insurance
	under Chapter 981;
	(2)  the lawful transaction of reinsurance by insurers;
	(3)  a transaction in this state that:
	(A)  involves a policy that:
	(i)  is lawfully solicited, written, and
	delivered outside this state; and
	(ii)  covers, at the time the policy is
	issued, only subjects of insurance that are not resident, located,
	or expressly to be performed in this state; and
	(B)  takes place after the policy is issued;
	(4)  a transaction:
	(A)  that involves an insurance contract
	independently procured by the insured from an insurance company not
	authorized to do insurance business in this state through
	negotiations occurring entirely outside this state;
	(B)  that is reported; and
	(C)  on which premium tax, if applicable, is paid
	in accordance with Chapter 226;
	(5)  a transaction in this state that:
	(A)  involves group life, health, or accident
	insurance, other than credit insurance, and group annuities in
	which the master policy for the group was lawfully issued and
	delivered in a state in which the insurer or person was authorized
	to do insurance business; and
	(B)  is authorized by a statute of this state;
	(6)  an activity in this state by or on the sole behalf
	of a nonadmitted captive insurance company that insures solely:
	(A)  directors' and officers' liability insurance
	for the directors and officers of the company's parent and
	affiliated companies;
	(B)  the risks of the company's parent and
	affiliated companies; or
	(C)  both the individuals and entities described
	by Paragraphs (A) and (B);
	(7)  the issuance of a qualified charitable gift
	annuity under Chapter 102; or
	(8)  a lawful transaction by a servicing company of the
	Texas workers' compensation employers' rejected risk fund under
	Section 4.08, Article 5.76-2, as that article existed before its
	repeal.
	SECTION 13.02.  Section 225.001, Insurance Code, is amended
	to read as follows:
	Sec. 225.001.  DEFINITIONS [DEFINITION]. In this chapter:
	(1)  "Affiliate" means, with respect to an insured, a
	person that controls, is controlled by, or is under common control
	with the insured.
	(2)  "Affiliated group" means a group of entities whose
	members are affiliated.
	(3)  "Control" means, with respect to determining the
	home state of an affiliated entity:
	(A)  to directly or indirectly, acting through one
	or more persons, own, control, or hold the power to vote at least 25
	percent of any class of voting security of the affiliated entity; or
	(B)  to control in any manner the election of the
	majority of directors or trustees of the affiliated entity.
	(4)  "Home state" means:
	(A)  for an insured that is not an affiliated
	group described by Paragraph (B):
	(i)  the state in which the insured resides,
	if the insured is an individual;
	(ii)  the state in which an insured that is
	not an individual maintains its principal place of business; or
	(iii)  if 100 percent of the insured risk is
	located outside of the state in which the insured resides or
	maintains its principal place of business, as applicable, the state
	to which the largest percentage of the insured's taxable premium
	for the insurance contract that covers the risk is allocated; or
	(B)  for an affiliated group with respect to which
	more than one member is a named insured on a single insurance
	contract subject to this chapter, the home state of the member, as
	determined under Paragraph (A), that has the largest percentage of
	premium attributed to it under the insurance contract.
	(5)  "Premium" means any payment made in consideration
	for insurance and [, "premium"] includes:
	(A) [(1)]  a premium;
	(B)  premium deposits;
	(C) [(2)]  a membership fee;
	(D)  a registration fee;
	(E) [(3)]  an assessment;
	(F) [(4)]  dues; and
	(G) [(5)]  any other compensation given in
	consideration for surplus lines insurance.
	SECTION 13.03.  Section 225.002, Insurance Code, is amended
	to read as follows:
	Sec. 225.002.  APPLICABILITY OF CHAPTER. This chapter
	applies to a surplus lines agent who collects gross premiums for
	surplus lines insurance for any risk in which this state is the home
	state of the insured.
	SECTION 13.04.  Section 225.004, Insurance Code, is amended
	by adding Subsections (a-1) and (f) and amending Subsections (b),
	(c), and (e) to read as follows:
	(a-1)  Consistent with the Nonadmitted and Reinsurance
	Reform Act of 2010, contained in the Dodd-Frank Wall Street Reform
	and Consumer Protection Act (Pub. L. No. 111-203), this state may
	not impose a premium tax on nonadmitted insurance premiums other
	than premiums paid for insurance in which this state is the home
	state of the insured.
	(b)  Taxable gross premiums under this section are based on
	gross premiums written or received for surplus lines insurance
	placed through an eligible surplus lines insurer during a calendar
	year. Notwithstanding the tax basis described by this subsection,
	the comptroller by rule may establish an alternate basis for
	taxation for multistate and single-state policies for the purpose
	of achieving uniformity.
	(c)  If a surplus lines insurance policy covers risks or
	exposures only partially located in this state, and this state has
	not entered into a cooperative agreement, reciprocal agreement, or
	compact with another state for the collection of surplus lines tax
	as authorized by Chapter 229, the tax is computed on the entire
	policy [portion of the] premium for any policy in which this state
	is the home state of the insured [that is properly allocated to a
	risk or exposure located in this state].
	(e)  Premiums [The following premiums are not taxable in
	this state:
	[(1)     premiums properly allocated to another state that
	are specifically exempt from taxation in that state; and
	[(2)  premiums] on risks or exposures that are properly
	allocated to federal or international waters or are under the
	jurisdiction of a foreign government are not taxable in this state.
	(f)  If this state enters a cooperative agreement,
	reciprocal agreement, or compact with another state for the
	allocation of surplus lines tax as authorized by Chapter 229, taxes
	due on multistate policies shall be allocated and reported in
	accordance with the agreement or compact.
	SECTION 13.05.  Section 225.005, Insurance Code, is amended
	to read as follows:
	Sec. 225.005.  TAX EXCLUSIVE. The tax imposed by this
	chapter is a transaction tax collected by the surplus lines agent of
	record and is in lieu of any [all] other transaction [insurance]
	taxes on these premiums.
	SECTION 13.06.  Section 225.009, Insurance Code, is amended
	by adding Subsection (d) to read as follows:
	(d)  Notwithstanding Subsections (a), (b), and (c), if this
	state enters a cooperative agreement, reciprocal agreement, or
	compact with another state for the allocation of surplus lines tax
	as authorized by Chapter 229, the tax shall be allocated and
	reported in accordance with the terms of the agreement or compact.
	SECTION 13.07.  Section 226.051, Insurance Code, is amended
	to read as follows:
	Sec. 226.051.  DEFINITIONS [DEFINITION].  In this
	subchapter:
	(1)  "Affiliate" means, with respect to an insured, a
	person that controls, is controlled by, or is under common control
	with the insured.
	(2)  "Affiliated group" means a group of entities whose
	members are affiliated.
	(3)  "Control" means, with respect to determining the
	home state of an affiliated entity:
	(A)  to directly or indirectly, acting through one
	or more persons, own, control, or hold the power to vote at least 25
	percent of any class of voting security of the affiliated entity; or
	(B)  to control in any manner the election of the
	majority of directors or trustees of the affiliated entity.
	(4)  "Home state" means:
	(A)  for an insured that is not an affiliated
	group described by Paragraph (B):
	(i)  the state in which the insured resides,
	if the insured is an individual;
	(ii)  the state in which an insured that is
	not an individual maintains its principal place of business; or
	(iii)  if 100 percent of the insured risk is
	located outside of the state in which the insured resides or
	maintains its principal place of business, as applicable, the state
	to which the largest percentage of the insured's taxable premium
	for the insurance contract that covers the risk is allocated; or
	(B)  for an affiliated group with respect to which
	more than one member is a named insured on a single insurance
	contract subject to this chapter, the home state of the member, as
	determined under Paragraph (A), that has the largest percentage of
	premium attributed to it under the insurance contract.
	(5)  "Independently procured insurance" means
	insurance procured directly by an insured from a nonadmitted
	insurer.
	(6)  "Premium" means any payment made in consideration
	for insurance and [, "premium"] includes [any consideration for
	insurance, including]:
	(A) [(1)]  a premium;
	(B)  premium deposits;
	(C) [(2)]  a membership fee; [or]
	(D)  a registration fee;
	(E)  an assessment;
	(F) [(3)]  dues; and
	(G)  any other compensation given in
	consideration for insurance.
	SECTION 13.08.  Section 226.052, Insurance Code, is amended
	to read as follows:
	Sec. 226.052.  APPLICABILITY OF SUBCHAPTER. This subchapter
	applies to an insured who procures an independently procured
	insurance contract for any risk in which this state is the home
	state of the insured [in accordance with Section 101.053(b)(4)].
	SECTION 13.09.  Section 226.053, Insurance Code, is amended
	by amending Subsections (a) and (b) and adding Subsection (d) to
	read as follows:
	(a)  A tax is imposed on each insured at the rate of 4.85
	percent of the premium paid for the insurance contract procured in
	accordance with Section 226.052 [101.053(b)(4)].
	(b)  If an independently procured insurance policy
	[contract] covers risks or exposures only partially located in this
	state and this state has not joined a cooperative agreement,
	reciprocal agreement, or compact with another state for the
	allocation of nonadmitted insurance taxes as authorized by Chapter
	229, the tax is computed on the entire policy [portion of the]
	premium for any policy in which this state is the home state of the
	insured [that is properly allocated to a risk or exposure located in
	this state].
	(d)  If this state enters into a cooperative agreement,
	reciprocal agreement, or compact with another state for the
	allocation of nonadmitted insurance taxes as authorized by Chapter
	229, the tax due on multistate policies shall be allocated and
	reported in accordance with the agreement or compact.
	SECTION 13.10.  Section 981.008, Insurance Code, is amended
	to read as follows:
	Sec. 981.008.  SURPLUS LINES INSURANCE PREMIUM TAX. The
	premiums charged for surplus lines insurance are subject to the
	premium tax, if applicable, imposed under Chapter 225.
	SECTION 13.11.  The following provisions are repealed:
	(1)  Sections 225.004(d) and (d-1), Insurance Code; and
	(2)  Sections 226.053(b-1) and (c), Insurance Code.
	SECTION 13.12.  The changes in law made by this article to
	Chapters 225 and 226, Insurance Code, apply only to an insurance
	policy that is delivered, issued for delivery, or renewed on or
	after July 11, 2011. A policy that is delivered, issued for
	delivery, or renewed before July 11, 2011, is governed by the law as
	it existed immediately before the effective date of this Act, and
	that law is continued in effect for that purpose.
	SECTION 13.13.  This article takes effect immediately if
	this Act 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 article takes effect September 1, 2011.
	ARTICLE 14. OBESITY INTERVENTION AND PREVENTION PROGRAM
	SECTION 14.01.  Chapter 403, Government Code, is amended by
	adding Subchapter Q to read as follows:
	SUBCHAPTER Q. OBESITY INTERVENTION AND PREVENTION PROGRAM
	Sec. 403.451.  PURPOSE. The purpose of this subchapter is
	to:
	(1)  address the economic costs associated with obesity
	in this state, including increased medical costs and loss of
	economic productivity;
	(2)  promote obesity intervention and obesity
	prevention awareness among school-age children;
	(3)  address the disproportionate rate of obesity in
	low-income populations; and
	(4)  assist public schools and school districts to
	provide obesity intervention and obesity prevention awareness
	programs, obesity intervention and prevention programs, and
	related training.
	Sec. 403.452.  TEXAS OBESITY INTERVENTION AND PREVENTION
	GRANT PROGRAM AND STUDY. (a) The comptroller shall establish and
	administer the obesity intervention and prevention grant program
	and study to:
	(1)  award grants for obesity intervention and
	prevention and related programs as provided by this subchapter; and
	(2)  study obesity in this state as provided by this
	subchapter.
	(b)  The program and study shall be funded with money
	appropriated by the legislature for the purposes of this
	subchapter.
	(c)  The comptroller may solicit and accept gifts, grants,
	and donations for the purposes of this subchapter.
	Sec. 403.453.  GRANT PROGRAM. (a) The comptroller shall
	establish and administer the obesity intervention and prevention
	grant program to award grants to public school programs and other
	entities that provide obesity intervention or prevention,
	nutrition education, and other educational programs to combat
	obesity in this state.
	(b)  In awarding grants under this section, the comptroller
	shall identify and give preference to geographic areas of this
	state where student populations have been identified, using the
	geographic information system map created under Section 403.454, as
	being at high risk for obesity.
	(c)  In awarding grants under this section, the comptroller
	shall consider awarding grants only to programs that obtain
	matching funds. Matching funds under this section, if required,
	may be obtained from any source available to a public school or
	other entity, including in-kind contributions, community or
	foundation grants, and individual contributions.
	(d)  The comptroller shall award grants on a competitive
	basis.
	Sec. 403.454.  COMPILATION OF DATA CONCERNING OBESITY RISK;
	GEOGRAPHIC INFORMATION SYSTEM. (a)  The comptroller shall
	cooperate with the Texas Education Agency, the Department of State
	Health Services, or any other state agency as necessary to compile
	the data required to identify areas in which children are at risk
	for obesity.
	(b)  The Texas Education Agency shall provide the physical
	fitness assessment results compiled under Section 38.103,
	Education Code, to the comptroller. The comptroller shall use the
	fitness assessment data to produce an interactive geographic
	information system map of this state that shows the compiled
	physical fitness assessment results for each school district in the
	state and identifies areas in which students are at risk for
	obesity.
	(c)  In creating the interactive map under Subsection (b),
	the comptroller and each state agency involved shall comply with
	state and federal laws, rules, and regulations that protect the
	confidentiality of student information and shall protect
	confidential information.
	Sec. 403.455.  REPORT OF PROGRAM RESULTS. (a)  A public
	school or other entity that is awarded a grant under Section 403.453
	for a program shall collect data regarding the effectiveness of the
	program and report that information to the comptroller. The
	comptroller shall by rule determine the form and content of the
	reporting requirements.
	(b)  In collecting the data required by this section, a
	grantee shall protect the confidentiality of students and student
	information and shall comply with applicable state and federal
	laws, rules, and regulations that protect the confidentiality of
	student information.
	Sec. 403.456.  OBESITY AND WELLNESS INFORMATION PORTAL. The
	comptroller shall establish and maintain an obesity and wellness
	information portal on the comptroller's Internet website to provide
	information to the public regarding obesity and wellness, including
	the economic impact obesity has on this state.
	Sec. 403.457.  ADDITIONAL REPORTING AND MAPPING SYSTEMS.
	The comptroller may establish obesity reporting and mapping systems
	in addition to the systems described by this subchapter as
	necessary to implement this subchapter.
	Sec. 403.458.  REPORT TO LEGISLATURE. (a) The comptroller
	shall submit a report to the legislature not later than January 1 of
	each odd-numbered year regarding the effectiveness of the grant
	program.
	(b)  The comptroller may collect information regarding other
	state and federal obesity prevention initiatives in this state and
	include that information in the report.
	Sec. 403.459.  RULES. The comptroller shall adopt rules as
	necessary for the administration of this subchapter.
	ARTICLE 15.  EFFECTIVE DATE
	SECTION 15.01.  Except as otherwise provided by this Act,
	this Act takes effect September 1, 2011.