EIGHTY-SECOND DAY - MONDAY, MAY 24, 1999

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

The roll of the house was called and a quorum was announced present (Record 452).

Present - Mr. Speaker; Alexander; Allen; Alvarado; Averitt; Bailey; Berman; Bonnen; Bosse; Brimer; Brown, B.; Brown, F.; Burnam; Capelo; Carter; Chavez; Chisum; Christian; Clark; Coleman; Cook; Counts; Crabb; Craddick; Crownover; Cuellar; Culberson; Danburg; Davis, J.; Davis, Y.; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland; Elkins; Ellis; Farabee; Farrar; Flores; Gallego; Garcia; George; Giddings; Glaze; Goodman; Goolsby; Gray; Green; Greenberg; Grusendorf; Gutierrez; Haggerty; Hamric; Hardcastle; Hartnett; Hawley; Heflin; Hilbert; Hilderbran; Hill; Hinojosa; Hochberg; Hodge; Homer; Hope; Howard; Hunter; Hupp; Isett; Janek; Jones, C.; Jones, J.; Junell; Keel; Keffer; King, P.; King, T.; Krusee; Kuempel; Lengefeld; Lewis, G.; Lewis, R.; Longoria; Luna; Madden; Marchant; Maxey; McCall; McClendon; McReynolds; Merritt; Moreno, J.; Morrison; Mowery; Naishtat; Najera; Nixon; Noriega; Oliveira; Olivo; Palmer; Pickett; Pitts; Puente; Ramsay; Rangel; Reyna, A.; Reyna, E.; Ritter; Sadler; Salinas; Seaman; Shields; Siebert; Smith; Smithee; Solis, J.; Solis, J. F.; Solomons; Staples; Swinford; Talton; Telford; Thompson; Tillery; Truitt; Turner, B.; Turner, S.; Uher; Uresti; Van de Putte; Walker; West; Williams; Wilson; Wise; Wohlgemuth; Wolens; Woolley; Yarbrough.

Absent, Excused - Corte; Jones, D.

Absent - Moreno, P.; Zbranek.

The invocation was offered by Jim Morris, former senate door keeper, Austin.

LEAVE OF ABSENCE GRANTED

The following member was granted leave of absence for today because of important business in the district:

Corte on motion of Woolley.

CAPITOL PHYSICIAN

The speaker recognized Representative Alexander who presented Dr. Douglas Curran of Athens as the "Doctor for the Day."

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

INTRODUCTION OF GUESTS

The speaker recognized Representative Noriega, who introduced the family of Ryan Smith.

HR 1023, in memory of Ryan Gabriel Smith of Austin, having been previously adopted, was read.

SCR 83 - ADOPTED

(Hardcastle - House Sponsor)

Representative Hardcastle moved to suspend all necessary rules to take up and consider at this time SCR 83.

The motion prevailed without objection.

The following resolution was laid before the house:

SCR 83, Recognizing "Austin Highlights" as a commemorative painting of the 76th Legislature.

SCR 83 was read and was adopted without objection.

On motion of Representative Counts, the names of all the members of the house were added to SCR 83 as signers thereof.

INTRODUCTION OF GUEST

The speaker recognized Representatives Hardcastle and Hunter, who introduced Shannel Woodard. She displayed her painting, "Austin Highlights," for the house.

(Y. Davis in the chair)

INTRODUCTION OF GUESTS

On behalf of the members of the Legislative Black Caucus, Representative Y. Davis introduced members of the Top Ladies of Distinction, Inc.

HR 702, Congratulating the Top Ladies of Distinction on the occasion of its Founder Day celebration, having been previously adopted, was read.

(Edwards in the chair)

HR 1047 - ADOPTED

(by Bailey)

Representative Bailey moved to suspend all necessary rules to take up and consider at this time HR 1047.

The motion prevailed without objection.

The following resolution was laid before the house:

HR 1047, Honoring Officer Clarence Robin Kirk.

HR 1047 was read and was adopted without objection.

INTRODUCTION OF GUEST

The speaker recognized Representative Bailey, who introduced Officer Clarence Robin Kirk.

INTRODUCTION OF GUESTS

The chair recognized Representative Gray, who introduced the family of Henry Sedgwick.

HR 864, in memory of Henry Thomas Sedgwick, having been previously adopted, was read.

HR 1083 - ADOPTED

(by Goolsby)

Representative Goolsby moved to suspend all necessary rules to take up and consider at this time HR 1083.

The motion prevailed without objection.

The following resolution was laid before the house:

HR 1083, Electing the children of house members to the honorary office of mascot.

HR 1083 was adopted without objection.

HR 1084 - ADOPTED

(by Goolsby)

Representative Goolsby moved to suspend all necessary rules to take up and consider at this time HR 1084.

The motion prevailed without objection.

The following resolution was laid before the house:

HR 1084, Designating the grandchildren of house members as honorary mascots.

HR 1084 was adopted without objection.

BILLS AND RESOLUTIONS SIGNED BY THE SPEAKER

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

INTRODUCTION OF GUESTS

The chair recognized Representatives Gallego, Walker, B. Turner, Craddick, and West, who introduced the family of Jose E. Morales.

HCR 235, in memory of Jose E. Morales of Midland, having been previously adopted, was read.

(Speaker in the chair)

HR 1080 - ADOPTED

(by Edwards)

The following privileged resolution was laid before the house:

HR 1080,

BE IT RESOLVED by the House of Representatives of the State of Texas, 76th Legislature, Regular Session, 1999, That House Rule 13, Section 9(a),

is suspended, as provided by House Rule 13, Section 9(f), to enable the conference committee appointed to resolve the differences between the house and senate versions of H.B. No. 1865, relating to the operations of the Texas Emancipation Juneteenth Cultural and Historical Commission, to consider and take action on the following matters:

House Rule 13, Section 9(a)(2), is suspended to permit the committee to omit from the bill the text of the added Section 448.0325, Government Code, which reads as follows:

Sec. 448.0325. CONTRACT WITH NONPROFIT ORGANIZATION. The commission by contract may provide money to a nonprofit organization that has as one of its primary functions the promotion of Juneteenth. The contract must ensure that the nonprofit organization provides services or goods that accomplish a public purpose of the commission.

Explanation: This change is needed to remove an unnecessary provision.

HR 1080 was adopted without objection.

BILLS AND JOINT RESOLUTIONS ON FIRST READING

AND REFERRAL TO COMMITTEES

RESOLUTIONS REFERRED TO COMMITTEES

Bills and joint resolutions were at this time laid before the house, read first time, and referred to committees. Resolutions were at this time laid before the house and referred to committees. (See the addendum to the daily journal, Referred to Committees, List No. 1.)

(Cuellar in the chair)

(Speaker in the chair)

RULES SUSPENDED

On motion of Representative Y. Davis and by unanimous consent, the rules were suspended to allow the following bills to be added to tomorrow's Local, Consent, and Resolutions Calendar:

SB 230, SB 1180, and SB 1477.

HR 1091 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f), of the House Rules, the speaker announced the introduction of HR 1091, suspending the limitations on the conferees for HB 713.

RULES SUSPENDED

Representative McCall moved to suspend all necessary rules to allow the house to consider SB 4 on third reading before the senate bills that appear as postponed business on today's Supplemental House Calendar.

The motion prevailed without objection.

(P. Moreno and Zbranek now present)

MAJOR STATE CALENDAR

SENATE BILLS

THIRD READING

The following bills were laid before the house and read third time:

SB 4 ON THIRD READING

(Sadler - House Sponsor)

SB 4, A bill to be entitled An Act relating to public school finance, property tax relief, and public education.

Amendment No. 1

Representative Sadler offered the following amendment to SB 4:

Amend SB 4 in Section 1.21. as follows:

(1) Strike the; after "district" on line 8 page 20 and add the following: but not less than 400;

Amendment No. 1 was adopted without objection.

Amendment No. 2

Representatives Giddings and S. Turner offered the following amendment to SB 4:

Amend SB 4, on third reading, by adding the following appropriately numbered SECTION and renumbering the remaining SECTIONS of the bill accordingly:

SECTION _____. Section 37.006, Education Code, is amended by adding Subsection (1) to read as follows:

(1) Notwithstanding any other provision of this code, a student who is younger than six years of age may not be removed from class and placed in an alternative education program.

Amendment No. 2 was adopted without objection.

Amendment No. 3

Representative Delisi offered the following amendment to SB 4:

Amend SB 4 by inserting the following new SECTION, appropriately numbered, and by renumbering subsequent SECTIONS of the bill accordingly:

SECTION _____. (a) Chapter 21, Education Code, is amended by adding Subchapter K to read as follows:

SUBCHAPTER K. TEXAS TROOPS TO TEACHERS PROGRAM

Sec. 21.501. DEFINITION. In this subchapter, "program" means the Texas Troops to Teachers Program.

Sec. 21.502. ESTABLISHMENT OF PROGRAM. The agency shall establish a program to:

(1) assist persons who have served in the armed forces of the United States and are separated from active duty to obtain certification as an elementary or secondary school teacher in this state; and

(2) facilitate the employment of those persons by school districts that have a shortage of teachers.

Sec. 21.503. ELIGIBILITY. A person is eligible for the program if the person:

(1) has served in the armed forces of the United States;

(2) is honorably discharged, retired, or released from active duty on or after October 1, 1990, after at least six years of continuous active duty service immediately before the discharge, retirement, or release;

(3) has received a baccalaureate or advanced degree from a public or private institution of higher education accredited by a regional accrediting agency or group that is recognized by a nationally recognized accreditation board; and

(4) satisfies any other criteria for selection jointly prescribed by the agency and the State Board for Educator Certification.

Sec. 21.504. INFORMATION AND APPLICATIONS. (a) The agency shall develop an application for the program.

(b) The agency and the State Board for Educator Certification shall distribute the applications and information regarding the program.

Sec. 21.505. SELECTION OF PARTICIPANTS. (a) The agency shall select persons to participate in the program on the basis of applications submitted to the agency.

(b) Each application must be submitted:

(1) in the form and contain the information the agency requires; and

(2) in a timely manner.

(c) An application is considered to be submitted in a timely manner for purposes of Subsection (b)(2) if the application is submitted:

(1) not later than October 5, 1999, in the case of an applicant discharged, retired, or released from active duty before January 19, 1999; or

(2) except as provided by Subdivision (1), not later than the first anniversary of the date of the applicant's discharge, retirement, or release from active duty.

Sec. 21.506. LIMITATION ON IMPLEMENTATION. The agency may not select a person to participate in the program unless the agency has sufficient state appropriations to pay the stipend provided by Section 21.509 at the time of the selection.

Sec. 21.507. PREFERENCES. (a) In selecting persons to participate in the program, the agency shall give preference to a person who:

(1) has significant educational or military experience in science, mathematics, or engineering and agrees to seek employment as a teacher in one of those subjects in a public elementary or secondary school in this state; or

(2) has significant educational or military experience in a field other than science, mathematics, or engineering identified by the agency as a field important for state educational objectives and agrees to seek employment as a teacher in a subject related to that field in a public elementary or secondary school in this state.

(b) The commissioner shall determine the level of experience considered significant for purposes of this section.

Sec. 21.508. AGREEMENT. A person selected to participate in the program must enter into a written agreement with the agency under which the person agrees to:

(1) obtain, within the period the agency by rule requires, certification as an elementary or secondary school teacher in this state; and

(2) accept, during the first school year that begins after the date the person becomes certified, an offer of full-time employment as an elementary or secondary school teacher with a school district in this state.

Sec. 21.509. STIPEND. The agency shall pay to each participant in the program a stipend of $5,000.

Sec. 21.510. REIMBURSEMENT. (a) A participant in the program who fails to obtain certification or employment as required in the agreement under Section 21.508 or who voluntarily leaves or is terminated for cause from the employment after teaching in a public elementary or secondary school in this state for less than five school years shall reimburse the agency for the portion of the stipend that bears the same ratio to the amount of the stipend as the unserved portion of required service bears to the five years of required service.

(b) The obligation to reimburse the agency under this section is, for all purposes, a debt to the state. A discharge in bankruptcy under Title 11, United States Code, does not release a participant from the obligation to reimburse the agency. The amount owed bears interest at the rate equal to the highest rate being paid by the United States on the day the reimbursement is determined to be due for securities that have maturities of 90 days or less, and the interest accrues from the day the participant receives notice of the amount due.

(c) For purposes of this section, a participant in the program is not considered to be in violation of an agreement under Section 21.508 during any period in which the participant:

(1) is pursuing a full-time course of study related to the field of teaching at a public or private institution of higher education approved by the State Board for Educator Certification;

(2) is serving on active duty as a member of the armed forces of the United States;

(3) is temporarily totally disabled for a period not to exceed three years as established by sworn affidavit of a qualified physician;

(4) is unable to secure employment for a period not to exceed one year because of care required by a disabled spouse;

(5) is seeking and unable to find full-time employment as a teacher in a public elementary or secondary school for a single period not to exceed 27 months; or

(6) satisfies the provisions of any additional reimbursement exception adopted by the agency.

(d) A participant is excused from reimbursement under Subsection (a) if:

(1) the participant becomes permanently totally disabled as established by sworn affidavit of a qualified physician; or

(2) the agency waives reimbursement in the case of extreme hardship to the participant.

Sec. 21.511. The commissioner shall adopt rules to implement this subchapter.

(b) If the commissioner of education determines that federal funds are available for a federal program with the general purposes of Subchapter K, Chapter 21, Education Code, as added by Subsection (a) of this section, such as for a program under 10 U.S.C. Section 1151, the commissioner of education shall discontinue the Texas Troops to Teachers Program and shall file notice of that discontinuation with the secretary of state to be published in the Texas Register.

Amendment No. 4

Representatives Delisi and Hochberg offered the following amendment to Amendment No. 3:

Amend the Delisi amendment to SB 4 by adding the following subsection at the end of the amendment:

(c) The commissioner of education may utilize discretionary funds or non-utilized balances to pay stipends for a program with the general purposes of Subchapter K, Chapter 21, Education Code, if federal funds, such as the funds provided for a program under 10 U.S.C. Section 1151, are not available or cease to be authorized.

Amendment No. 4 was adopted without objection.

Amendment No. 3, as amended, was adopted without objection.

Amendment No. 5

Representatives Grusendorf and Dutton offered the following amendment to SB 4:

Amend SB 4 as follows:

(1) On page 37, line 4, strike "special".

(2) On page 37, line 4, strike "for" and substitute "authorized under this code that serve".

Amendment No. 5 was adopted without objection.

SB 4, as amended, was passed. (Wilson recorded voting no)

POSTPONED BUSINESS

The following bills were laid before the house as postponed business:

CSSB 89 ON SECOND READING

(Bosse, Hilbert, Crabb, and Krusee - House Sponsors)

CSSB 89, A bill to be entitled An Act relating to municipal annexation; providing penalties.

CSSB 89 was read second time on May 22 and was postponed until 9 a.m. today.

Amendment No. 1

Representative Bosse offered the following amendment to CSSB 89:

Amend CSSB 89 in SECTION 1 of the bill by striking Sections 42.0225(b) and (c), Local Government Code (Committee Printing page 1, lines 12-19), and substituting the following:

(b) Notwithstanding Section 42.021, the annexation of an area described by Subsection (a) does not expand the extraterritorial jurisdiction of the municipality.

Amendment No. 1 was adopted without objection.

MESSAGE FROM THE SENATE

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

HCR 296 - ADOPTED

(by Wolens)

The following privileged resolution was laid before the house:

HCR 296,

WHEREAS, HB 1777 has been adopted by the house of representatives and the senate and is being prepared for enrollment; and

WHEREAS, The bill contains technical errors that should be corrected; now, therefore, be it

RESOLVED by the 76th Legislature of the State of Texas, That the enrolling clerk of the house of representatives be instructed to correct House Bill No. 1777 by striking Section 283.053(d)(2), Local Government Code, as amended by Senate Floor Amendment No. 1, and substituting the following:

(2) an amount not to exceed 21 percent of the total sales and use tax revenue received by the municipality pursuant to Chapter 321, Tax Code. The amount does not include sales and use taxes collected under:

(A) Chapter 451, 452, 453, or 454, Transportation Code, for a mass transit authority;

(B) the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), for a 4A or 4B Development Corporation;

(C) Chapters 334 and 335, Local Government Code; or

(D) Chapters 321, 322, and 323, Tax Code, for a special district, including health service, crime control, hospital, and emergency service districts.

HCR 296 was adopted without objection.

COMMITTEE GRANTED PERMISSION TO MEET

Representative Y. Davis requested permission for the Committee on Local and Consent Calendars to meet while the house is in session.

Permission to meet was granted without objection.

COMMITTEE MEETING ANNOUNCEMENT

The following committee meeting was announced:

Local and Consent Calendars, 12:05 p.m. today, speakers committee room.

CSSB 89 - (consideration continued)

Amendment No. 2

Representative Bosse offered the following amendment to CSSB 89:

Amend CSSB 89 as follows:

(1) In SECTION 4 of the bill, strike Section 43.052(d)(1), Local Government Code (Committee Printing page 4, lines 4-6), and substitute the following:

(1) reduce the tax rate applicable to the area if the amount that would remain in the debt service fund after the reduction and after subtracting

the amount due for debt service in the following year is less than 25 percent of the debt service requirements for the following year;

(2) In SECTION 4 of the bill, strike Section 43.052(h), Local Government Code (Committee Printing page 6, line 13, through page 7, line 9), and substitute the following:

(h) This section does not apply to an area proposed for annexation if:

(1) the area contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract;

(2) the area will be annexed by petition of more than 50 percent of the real property owners in the area proposed for annexation or by vote or petition of the qualified voters or real property owners as provided by Subchapter B;

(3) the area is included within the boundaries of a special district and the governing board of the district requested annexation of the area during the one-year period before the date the municipality adopts an ordinance to annex the area;

(4) the area is the subject of an industrial district contract under Section 42.044 or a strategic partnership agreement under Section 43.0751;

(5) the area is located in a colonia, as that term is defined by Section 2306.581, Government Code;

(6) the area is annexed under Section 43.026, 43.027, 43.029, or 43.031;

(7) the area is located completely within the boundaries of a closed military installation; or

(8) the municipality determines that the annexation of the area is necessary to protect the area proposed for annexation or the municipality from:

(A) imminent destruction of property or injury to persons; or

(B) a condition or use that constitutes a public or private nuisance as defined by background principles of nuisance and property law of this state.

(i) A municipality may not circumvent the requirements of this section by proposing to separately annex two or more areas described by Subsection (h)(1) if no reason exists under generally accepted municipal planning principles and practices for separately annexing the areas. If a municipality proposes to separately annex areas in violation of this section, a person residing or owning land in the area may petition the municipality to include the area in the municipality's annexation plan. If the municipality fails to take action on the petition, the petitioner may request arbitration of the dispute. The petitioner must request the appointment of an arbitrator in writing to the municipality. Sections 43.0564(b), (c), and (e) apply to the appointment of an arbitrator and the conduct of an arbitration proceeding under this subsection. Except as provided by this subsection, the municipality shall pay the cost of arbitration. If the arbitrator finds that the petitioner's request for arbitration was groundless or requested in bad faith or for the purposes of harassment, the arbitrator shall require the petitioner to pay the costs of arbitration.

(3) In SECTION 6 of the bill, strike Section 43.056(b), Local Government

Code (Committee Printing page 11, line 11, through page 12, line 6), and substitute the following:

(b) The service plan must include a program under which the municipality will provide full municipal services in the annexed area no later than 2-1/2 [4-1/2 ] years after the effective date of the annexation, in accordance with Subsection (e), unless that period is extended by an arbitration decision issued under this chapter or by agreement between the municipality and the party with which the municipality is required to negotiate for services under this subchapter [(d) ]. However, under the program if the municipality provides any of the following services within the corporate boundaries of the municipality before annexation, the municipality must provide those [the following ] services in the area proposed for annexation on [within 60 days after ] the effective date of the annexation of the area:

(1) police protection;

(2) fire protection;

(3) emergency medical services;

(4) solid waste collection, except as provided by Subsection (o);

(5) operation and [(4) ] maintenance of water and wastewater facilities in the annexed area that are not within the service area of another water or wastewater utility;

(6) operation and [(5) ] maintenance of roads and streets, including road and street lighting;

(7) operation and [(6) ] maintenance of parks, playgrounds, and swimming pools; and

(8) operation and [(7) ] maintenance of any other publicly owned facility, building, or service.

(4) In SECTION 6 of the bill, strike Section 43.056(c), Local Government Code (Committee Printing page 13, lines 10-14), and substitute the following:

(c) For purposes of this section, "full municipal services" means services [funded in whole or in part by municipal taxation and ] provided by the annexing municipality within its full-purpose boundaries , including water and wastewater services and excluding gas or electrical service.

(5) In SECTION 6 of the bill, strike Sections 43.056(l) and (m), Local Government Code (Committee Printing page 18, line 4, through page 19, line 5), and substitute the following:

(l) [(i) ] A service plan is valid for 10 years. Renewal of the service plan is at the discretion of the municipality. A person residing or owning land in an annexed area in a municipality with a population of 1.6 million or more may enforce a service plan by petitioning the municipality for a change in policy or procedures to ensure compliance with the service plan. If the municipality fails to take action with regard to the petition, the petitioner may request arbitration of the dispute under Section 43.0565. A person residing or owning land in an annexed area in a municipality with a population of less than 1.6 million may enforce a service plan by applying for a writ of mandamus not later than the second anniversary of the date the person knew or should have known that the municipality was not complying

with the service plan. If a writ of mandamus is applied for, the municipality has the burden of proving that the services have been provided in accordance with the service plan in question. If a court issues a [the ] writ under this subsection, the court:

(1) [municipality shall pay the person's costs and reasonable attorney's fees in bringing the action. A writ issued under this subsection ] must provide the municipality the option of disannexing the area within a reasonable period specified by the court;

(2) may require the municipality to comply with the service plan in question before a reasonable date specified by the court if the municipality does not disannex the area within the period prescribed by the court under Subdivision (1);

(3) may require the municipality to refund to the landowners of the annexed area money collected by the municipality from those landowners for services to the area that were not provided;

(4) may assess a civil penalty against the municipality, to be paid to the state in an amount as justice may require, for the period in which the municipality is not in compliance with the service plan;

(5) may require the parties to participate in mediation; and

(6) may require the municipality to pay the person's costs and reasonable attorney's fees in bringing the action for the writ [30 days ].

(m) [(j) A municipality that annexes an area shall provide the area or cause the area to be provided with services in accordance with the service plan for the area.

[(k) ] This section does not require that a uniform level of full municipal services be provided to each area of the municipality if different characteristics of topography, land use, and population density constitute [are considered ] a sufficient basis for providing different levels of service. Any dispute regarding the level of services provided under this subsection are resolved in the same manner provided by Subsection (l). Nothing in this subsection modifies the requirement under Subsection (g) for a service plan to provide a level of services in an annexed area that is equal or superior to the level of services provided within the corporate boundaries of the municipality before annexation. To the extent of any conflict between this subsection and Subsection (g), Subsection (g) prevails.

(6) In SECTION 6 of the bill, in Section 43.056, Local Government Code, add Subsections (n) and (o) (Committee Printing page 19, between lines 5 and 6) to read as follows:

(n) Before the third anniversary after the date an area is included within the corporate boundaries of a municipality by annexation, the municipality may not:

(1) prohibit the collection of solid waste in the area by a privately owned solid waste management service provider; or

(2) impose a fee for solid waste management services on a person who continues to use the services of a privately owned solid waste management service provider.

(o) A municipality is not required to provide solid waste collection services under Subsection (b) to a person who continues to use the services

of a privately owned solid waste management service provider as provided by Subsection (n).

(7) In SECTION 7 of the bill, strike Section 43.0563(a), Local Government Code (Committee Printing page 21, lines 16-22), and substitute the following:

(a) The governing body of a municipality with a population of less than 1.6 million may negotiate and enter into a written agreement with representatives designated under Section 43.0562(a)(1) for the provision of services and the funding of the services in the area. Notwithstanding other law, the agreement may also include an agreement related to permissible land uses and compliance with municipal ordinances.

(8) In SECTION 8 of the bill, strike Section 43.062, Local Government Code (Committee Printing page 28, lines 20-22), and substitute the following:

Sec. 43.062. PROCEDURES APPLICABLE. (a) Sections 43.051, 43.054, 43.0545, 43.055, 43.0565, 43.0567, and 43.057 apply to the annexation of an area to which this subchapter applies.

(b) Sections 43.0562, 43.0563, and 43.0564 apply to the annexation of an area described by Section 43.052(h)(1). For purposes of this subsection, a reference in 43.0562 to Section 43.0561 means Section 43.063.

(9) In SECTION 8 of the bill, in Section 43.065(b), Local Government Code (Committee Printing page 30, line 12), strike "(m)" and substitute "(o)".

(10) In SECTION 16 of the bill, strike Subsections (d) and (e) (Committee Printing page 38, lines 4-21) and substitute the following:

(d) The changes in law made by this Act in Sections 43.002, 43.0545, 43.056(b), (c), (e), (f), (g), (l), (m), (n), and (o), 43.0562, 43.0563, 43.0564, 43.0565, 43.0751, 43.0752, 43.121(a), 43.141(c), 43.148, and 43.905, Local Government Code, as added or amended by this Act, apply to the annexation of an area that is not included in the municipality's annexation plan during the period beginning December 31, 1999, and ending December 31, 2002, if the first public hearing required as part of the annexation procedure is conducted on or after September 1, 1999. For purposes of applying Section 43.0562, Local Government Code, as provided by this subsection, a reference to Section 43.0561, Local Government Code, means Section 43.052, Local Government Code, as it existed immediately before September 1, 1999. For purposes of applying Section 43.0751, Local Government Code, as provided by this subsection, a reference to a district included in a municipality's annexation plan means a district for which a service plan has been prepared under Section 43.056, Local Government Code.

(e) The changes in law made by this Act in Sections 43.002, 43.0545, 43.056(b), (c), (e), (f), (g), (l), (m), (n), and (o), 43.0565, 43.121(a), 43.141(c), 43.148, and 43.905, Local Government Code, as added or amended by this Act, apply to the annexation of an area that is not required to be included in a municipal annexation plan under Section 43.052, Local Government Code, as amended by this Act, if the first hearing notice required by Section 43.063, Local Government Code, as added by this Act, is published on or after September 1, 1999.

Amendment No. 3

Representative Hawley offered the following amendment to Amendment No. 2:

Amend the Bosse amendment to CSSB 89 by striking Section 43.052(h), Local Government Code (Bosse Amendment page 1, line 13, through page 2, line 18) and substituting the following:

(h) This section does not apply to an area proposed for annexation if:

(1) the area will be annexed by vote or petition of the qualified voters or property owners as provided by Subchapter B;

(2) the area is included within the boundaries of a special district and the area is annexed at the request of the district;

(3) the area is the subject of an industrial district contract under Section 42.044;

(4) the area is located in a colonia, as that term is defined by Section 2306.581, Government Code;

(5) the area is annexed under Section 43.026, 43.027, 43.029, or 43.031; or

(6) the municipality determines that the annexation of the area is necessary to protect the area proposed for annexation or the municipality from:

(A) imminent destruction of property or injury to persons; or

(B) a condition or use that constitutes a public or private nuisance as defined by background principles of nuisance and property law of this state.

Representative Bosse moved to table Amendment No. 3.

The motion to table was withdrawn.

Amendment No. 3 was withdrawn.

Amendment No. 4

Representative R. Lewis offered the following amendment to Amendment No. 2:

Amend the Bosse amendment to CSSB 89 by striking Section 43.056(b) (5), Local Government Code (Bosse Amendment page 4, lines 5-7) and substitute the following:

(5) the extension of the municipality's existing central water and wastewater systems and the operation and maintenance of those systems if the municipality has zoning regulations [maintenance of water and wastewater facilities in the annexed area that are not within the service area of another water or wastewater utility ]:

(S. Turner in the chair)

Representative Bosse moved to table Amendment No. 4.

The motion to table prevailed.

Amendment No. 5

Representative Hawley offered the following amendment to Amendment No. 2:

Amend the Bosse amendment of CSSB 89 by striking Section43.052 (h), Local Government Code (Bosse Amendment page 1, line 13, through page 2, line 18) and substituting the following:

(h) This section does not apply to an area proposed for annexation if:

(1) the area will be annexed by petition of more than 50 percent of the real property owners in the area proposed for annexation or by vote or petition of the qualified voters or property owners as provided by Subchapter B;

(2) the area is included within the boundaries of a special district and the governing board of the district requested annexation of the area during the one-year period before the date the municipality adopts an ordinance to annex the area;

(3) the area is the subject of an industrial district contract under Section 42.044 or a strategic partnership agreement under Section 43.0751;

(4) the area is located in a colonia, as that term is defined by Section 2306.581, Government Code;

(5) the area is annexed under Section 43.026, 43.027, 43.029, or 43.031;

(6) the area is located completely within the boundaries of a closed military installation; or

(7) the municipality determines that the annexation of the area is necessary to protect the area proposed for annexation or the municipality from:

(A) imminent destruction of property or injury to persons; or

(B) a condition or use that constitutes a public or private nuisance as defined by background principles of nuisance and property law of this state.

Representative Bosse moved to table Amendment No. 5.

The motion to table was lost.

Amendment No. 5 was adopted.

Amendment No. 2, as amended, was adopted without objection.

Amendment No. 6

Representative Bosse offered the following amendment to CSSB 89:

Amend CSSB 89 on Page 35 by striking SECTION 15 of the bill.

Amendment No. 6 was adopted without objection.

Amendment No. 7

Representative Hamric offered the following amendment to CSSB 89:

Amend CSSB 89 in SECTION 4 of the bill, in Section 43.052, Local Government Code (Committee Printing, page 7, between lines 9 and 10), by adding Subsection (i) to read as follows:

(i) A municipality shall post its annexation plan and any amendments to the plan on the municipality's Internet website if the municipality has an Internet website.

Amendment No. 7 was adopted without objection.

Amendment No. 8

Representative Capelo offered the following amendment to CSSB 89:

Amend SECTION 5 of CSSB 89 in 43.0545(e) by adding the following language after the word "distance":

"unless the area is being annexed by a municipality of 350,000 or less that borders the Gulf of Mexico and the area being annexed includes land in addition to a road, highway, river, lake or other body of water."

Amendment No. 8 was adopted without objection.

Amendment No. 9

Representative Hamric offered the following amendment to CSSB 89:

Amend CSSB 89 as follows:

(1) In SECTION 7 of the bill, strike added Section 43.0561(c), Local Government Code (Committee Printing, page 19, line 27 through page 20, line 11), and substitute the following:

(c) The municipality must post notice of the hearings on the municipality's Internet website if the municipality has an internet website and publish notice of the hearings in a newspaper of general circulation in the municipality and in the area proposed for annexation. The notice for each hearing must be posted and published at least once on or after the 20th day but before the 10th day before the date of the hearing. The municipality must give additional notice by certified mail to:

(1) each public entity, as defined by Section 43.053, and utility service provider that provides services in the area proposed for annexation; and

(2) each railroad company that serves the municipality and is on the municipality's tax roll if the company's right-of-way is in the area proposed for annexation.

(2) In SECTION 8 of the bill, strike added Section 43.063(c), Local Government Code (Committee Printing, page 29, lines 10-18), and substitute the following:

(c) The municipality must post notice of the hearings on the municipality's Internet website if the municipality has an Internet website and publish notice of the hearings in a newspaper of general circulation in the municipality and in the area proposed for annexation. The notice for each hearing must be posted and published at least once on or after the 20th day but before the 10th day before the date of the hearing. The municipality must give additional notice by certified mail to each railroad company that serves the municipality and is on the municipality's tax roll if the company's right-of-way is in the area proposed for annexation.

Amendment No. 9 was adopted without objection.

COMMITTEE MEETING ANNOUNCEMENT

The following committee meeting was announced:

Conference Committee on HB 1, 2 p.m. today, appropriations committee room, for a formal meeting, to consider HB 1.

CSSB 89 - (consideration continued)

Amendment No. 10

Representative Krusee offered the following amendment to CSSB 89:

Amend CSSB 89 as follows:

(1) Add a new SECTION 11 to the bill (Committee Printing page 32, between lines 23 and 24) to read as follows and renumber subsequent sections of the bill appropriately:

SECTION 11. Subchapter D, Chapter 43, Local Government Code, is amended by adding Section 43.0753 to read as follows:

Sec. 43.0753. RENEGOTIATION OF CERTAIN CONSENT AGREEMENTS FOR ANNEXATION REQUIRED. (a) In this section, "district" has the meaning assigned by Section 43.0751(a).

(b) If on or after September 1, 1997, and before September 1, 1999, a district entered into an agreement with a municipality deferring annexation for a specific period and consenting to annexation at a future date, the district may request the municipality to and the municipality, on request, shall renegotiate the agreement.

(2) In SECTION 16 of the bill, in Subsections (a), (c), and (g), correct the references to specific sections of the bill to take into account the renumbering of the sections of the bill required by item (1) of this amendment, and in correcting those references, do not include a reference to the section added by item (1) of this amendment.

Amendment No. 10 failed of adoption.

Amendment No. 11

Representative Keel offered the following amendment to CSSB 89:

Amend CSSB 89 as follows:

(1) In SECTION 13 of the bill, in the recital to that section (Committee printing, page 33, line 13), strike "Section 43.148" and substitute "Sections 43.148 and 43.149".

(2) In SECTION 13 of the bill (Committee printing, page 34, between lines 6 and 7), insert the following:

Sec. 43.149. JUDICIAL INVALIDATION OF ANNEXATION. (a) If an annexation by a municipality is invalidated by a final judgment of a court, the annexing municipality shall:

(1) immediately disannex the area;

(2) refund to the landowners in the area annexed an amount equal to the amount of property taxes and fees collected by the municipality from the landowners during the period the area was included within the corporate boundaries of the municipality less any amount spent by the municipality for the direct benefit of the area during that period; and

(3) at the municipality's full cost, reestablish and refund all funds, contracts, and accounts to any special district that existed at the time the area was annexed and was abolished by the municipality as a result of the annexation.

(b) For the purposes of Subsection (a)(2), the municipality shall refund amounts to the landowners according to a method adopted by the municipality for determining the pro rata share of the refund of property taxes and fees to which each landowner is entitled.

(c) The municipality shall refund amounts owed under Subsection (a)(2) to current landowners not later than the 180th day after the date of the final

judgment of the court invalidating the annexation. If the municipality fails to refund the amounts within that period, the municipality is subject to a civil penalty in an amount equal to:

(1) six percent of the amount owed for each day the amount is unpaid after the period prescribed by this subsection; and

(2) one percent of the amount owed for each month or portion of a month the amount is unpaid after the period prescribed by this subsection.

(d) An area disannexed under this section may not be annexed by the municipality before the 10th anniversary of the date of the final judgment of the court invalidating the annexation.

(3) In SECTION 16 of the bill, in Subsection (d) (Committee printing, page 38, line 6), between "43.148," and "and", insert "43.149,".

(4) In SECTION 16 of the bill, in Subsection (e) (Committee printing, page 38, line 15), between "43.148," and "and", insert "43.149,".

(5) In SECTION 16 of the bill (Committee printing, page 39, between lines 13 and 14), add Subsection (h) to read as follows:

(h) The change in law made by Section 43.149, Local Government Code, as added by this Act, applies to an annexation that occurs before, on, or after the effective date of this Act.

Amendment No. 12

Representative R. Lewis offered the following amendment to Amendment No. 11:

Amend Amendment No. 11 to CSSB 89 as follows:

On page 2, line 9, after the word "section" insert "shall be removed from the municipality's extraterritorial jurisdiction for a period of three years and".

Representative Bosse moved to table Amendment No. 12.

The motion to table prevailed.

MESSAGE FROM THE SENATE

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

CSSB 89 - (consideration continued)

Amendment No. 13

Representative Bosse offered the following amendment to Amendment No. 11:

Amend the Keel amendment to CSSB 89 on page 2, lines 3 and 4 of the amendment by striking "owed for each day the amount is".

Amendment No. 13 was adopted without objection.

Amendment No. 11, as amended, was adopted without objection.

Amendment No. 14

Representatives Wilson, Thompson, J. Davis, Heflin, Hamric, Nixon, Farrar, Talton, and Culberson offered the following amendment to CSSB 89:

Amend CSSB 89 as follows:

(1) In SECTION 13 of the bill, in the recital to that section (House Committee Printing, page 33, line 13), strike "Section 43.148" and substitute "Sections 43.148 and 43.149".

(2) In SECTION 13 of the bill, add Section 43.149, Local Government Code (House Committee Printing, page 34, between lines 6 and 7), to read as follows:

Sec. 43.149. DISANNEXATION OF CERTAIN AREAS ANNEXED BY POPULOUS MUNICIPALITY. (a) This section applies only to an area that:

(1) is annexed by a municipality with a population of 1.6 million or more;

(2) has a population of 20,000 or more at the time of the annexation; and

(3) has not approved the annexation by a majority vote in an election held for that purpose.

(b) The county in which the area is located shall hold an election on the disannexation of the area from the municipality if the county clerk receives a petition requesting a disannexation election signed by at least 10 percent of the registered voters who reside in the area. The county clerk shall determine the validity of the petition under Chapter 277, Election Code, not later than the 30th day after the date the petition is received.

(c) If the county clerk determines that a petition filed under Subsection (b) is valid or if the county clerk fails to make a determination within the period prescribed by Subsection (b), the county judge shall order the election to be held on the first uniform election date that occurs after the 45th day after the earlier of the date:

(1) the county clerk determines the petition is valid; or

(2) the period for making a determination under Subsection (b) expires.

(d) Only a registered voter residing in the area may vote in the election. The municipality that annexed the area shall pay the cost of holding the election.

(e) The ballots for the election shall be prepared to permit voting for or against the proposition: "The disannexation of (name of the area) from the City of (name of municipality) and the reestablishment of any municipal utility district or other special district serving (name of the area)." The county shall designate the name of the area based on a name commonly used in the region to identify the area.

(f) If a majority of the votes cast at the election favor the proposition, the area is disannexed from the municipality and any municipal utility district or other special district that served the area on the date the area was annexed and that was abolished as a result of the annexation is reestablished on the date of the canvass of the election. The officers of a municipal utility district or other special district who were serving on the date the area was annexed are the officers of the district reestablished under this subsection. If an officer's term has expired, the officer shall serve until a successor is qualified, and the successor shall be elected or appointed in a timely manner in accordance with the law governing the district.

(g) If less than a majority of the votes cast at the election favor the proposition, the area remains a part of the municipality and another election to disannex the area may not be held under this section.

(h) The municipality may not annex again any portion of an area that is disannexed under this section unless the subsequent annexation is approved at an election held by the municipality in the area to be annexed. The municipality may not annex the area under this subsection unless a majority of the votes cast in the area approve the annexation.

(i) Not later than the 10th day after the date a disannexation occurs under this section, an arbitration panel shall be appointed. The panel is composed of:

(1) one person chosen by the municipality;

(2) one person chosen by the affirmative vote of a representative of each municipal utility district or other special district serving the disannexed area; and

(3) one person chosen jointly by the persons chosen under Subdivisions (1) and (2), or, if an agreement cannot be reached on the choice, one person appointed by the county judge of the county in which the area is located.

(j) The arbitration panel shall conduct an accounting of all expenses the municipality and each municipal utility district and other special district incurred during the annexation and disannexation process, including an accounting of the assets and obligations of each special district at the time of the annexation and the capital expenditures of the municipality on behalf of the disannexed area during the time the area was included as part of the municipality. Not later than the 120th day after the date of disannexation, the arbitration panel shall issue a decision on whether the municipality is entitled to compensation from a special district or whether a special district is entitled to compensation from the municipality.

(k) A party to the arbitration may appeal the decision of the arbitration panel to a district court of the county in which the area is located, and the court shall review the decision under the substantial evidence rule. If the arbitration panel is unable to reach a majority decision, the municipality or an affected special district may file an original action for an accounting as provided by Subsection (j) in a district court of the county in which the area is located.

(l) Except as provided by this section, Chapter 171, Civil Practice and Remedies Code, applies to an arbitration under this section.

(m) In this section, an area is considered to be located in the county in which a majority of the area is located.

(n) If the tract is located in more than one county:

(1) the county clerk of the county in which a majority of the area is located shall conduct the verification procedure described by Subsection (b); and

(2) the county judge of each county in which the area is located shall call an election under Subsection (c) to be held in the part of the area that is located in the county in which the county judge serves.

(o) If an election is called under Subsection (n)(2) in more than one

county, the county judge of the county in which a majority of the area is located shall, after the election returns are canvassed in each county, combine the election returns to determine if the disannexation is approved in the area as a whole.

(3) In SECTION 16 of the bill, in Subsection (d) (House Committee Printing, page 38, line 6), between "43.148," and "and", insert "43.149,".

(4) In SECTION 16 of the bill, in Subsection (e) (House Committee Printing, page 38, line 15), between "43.148," and "and", insert "43.149,".

(5) In SECTION 16 of the bill (House Committee Printing, page 39, between lines 13 and 14), add Subsection (h) to read as follows:

(h) The change in law made by Section 43.149, Local Government Code, as added by this Act, applies to an annexation that occurs before, on, or after the effective date of this Act.

LEAVES OF ABSENCE GRANTED

The following members were granted leaves of absence temporarily for today to attend a meeting of the conference committee on HB 1:

Gallego on motion of R. Lewis

Junell on motion of R. Lewis

Coleman on motion of R. Lewis

Heflin on motion of R. Lewis

West on motion of R. Lewis.

CSSB 89 - (consideration continued)

Representative Bosse moved to table Amendment No. 14.

A record vote was requested.

The motion to table was lost by (Record 453): 56 Yeas, 79 Nays, 2 Present, not voting.

Yeas - Alexander; Berman; Bosse; Burnam; Counts; Crownover; Cuellar; Danburg; Davis, Y.; Deshotel; Dukes; Edwards; Ehrhardt; Eiland; Ellis; Farabee; Flores; Garcia; Glaze; Gray; Greenberg; Gutierrez; Hardcastle; Hinojosa; Hochberg; Hunter; Janek; King, T.; Lengefeld; Lewis, G.; Luna; Maxey; McClendon; McReynolds; Moreno, P.; Naishtat; Najera; Noriega; Puente; Rangel; Reyna, A.; Ritter; Sadler; Salinas; Solis, J. F.; Telford; Thompson; Tillery; Turner, S.; Uresti; Van de Putte; Walker; Wise; Woolley; Yarbrough; Zbranek.

Nays - Allen; Alvarado; Averitt; Bonnen; Brimer; Brown, B.; Brown, F.; Capelo; Carter; Chavez; Chisum; Christian; Clark; Cook; Crabb; Craddick; Culberson; Davis, J.; Delisi; Denny; Driver; Dunnam; Dutton; Elkins; Farrar; George; Goodman; Goolsby; Green; Grusendorf; Haggerty; Hamric; Hartnett; Hawley; Hilbert; Hilderbran; Hill; Hodge; Homer; Hope; Howard; Hupp; Isett; Jones, J.; Keel; Keffer; King, P.; Krusee; Kuempel; Lewis, R.; Longoria; Madden; Marchant; McCall; Merritt; Morrison; Mowery; Nixon; Oliveira; Olivo; Palmer; Pitts; Reyna, E.; Seaman; Shields; Siebert; Smith; Smithee; Solis, J.; Solomons; Staples; Swinford; Talton; Truitt; Turner, B.; Uher; Wilson; Wohlgemuth; Wolens.

Present, not voting - Mr. Speaker(C); Giddings.

Absent, Excused - Corte; Jones, D.

Absent, Excused, Committee Meeting - Coleman; Gallego; Heflin; Junell; West.

Absent - Bailey; Jones, C.; Moreno, J.; Pickett; Ramsay; Williams.

A record vote was requested.

Amendment No. 14 was adopted by (Record 454): 76 Yeas, 53 Nays, 5 Present, not voting.

Yeas - Allen; Averitt; Bonnen; Brimer; Brown, B.; Brown, F.; Chavez; Chisum; Christian; Cook; Counts; Crabb; Craddick; Crownover; Culberson; Davis, J.; Davis, Y.; Delisi; Denny; Deshotel; Dutton; Edwards; Elkins; Farrar; George; Goolsby; Green; Grusendorf; Haggerty; Hamric; Hartnett; Hawley; Hilbert; Hilderbran; Hodge; Hope; Howard; Hupp; Isett; Janek; Jones, J.; Keel; Keffer; King, P.; Krusee; Kuempel; Lewis, G.; Lewis, R.; Luna; Marchant; McCall; Merritt; Moreno, J.; Morrison; Mowery; Nixon; Palmer; Pickett; Pitts; Reyna, E.; Seaman; Shields; Siebert; Smith; Smithee; Solomons; Staples; Swinford; Talton; Thompson; Turner, B.; Uher; Wilson; Wohlgemuth; Wolens; Yarbrough.

Nays - Alexander; Berman; Bosse; Burnam; Capelo; Carter; Clark; Cuellar; Danburg; Driver; Dukes; Ehrhardt; Eiland; Ellis; Farabee; Garcia; Glaze; Gray; Greenberg; Gutierrez; Hardcastle; Hill; Hinojosa; Hochberg; Homer; Hunter; King, T.; Lengefeld; Madden; Maxey; McClendon; McReynolds; Moreno, P.; Naishtat; Najera; Noriega; Oliveira; Olivo; Puente; Rangel; Reyna, A.; Ritter; Sadler; Salinas; Solis, J.; Solis, J. F.; Telford; Turner, S.; Uresti; Walker; Wise; Woolley; Zbranek.

Present, not voting - Mr. Speaker(C); Dunnam; Giddings; Tillery; Truitt.

Absent, Excused - Corte; Jones, D.

Absent, Excused, Committee Meeting - Coleman; Gallego; Heflin; Junell; West.

Absent - Alvarado; Bailey; Flores; Goodman; Jones, C.; Longoria; Ramsay; Van de Putte; Williams.

STATEMENT OF VOTE

I was shown voting yes on Record No. 454. I intended to vote no.

Thompson

Amendment No. 15

Representative Madden offered the following amendment to CSSB 89:

Amend CSSB 89 as follows:

(1) In SECTION 14 of the bill, in the recital to that section (Committee Printing page 34, line 8), strike "Section 43.905" and substitute "Sections 43.905 and 43.906".

(2) In SECTION 14 of the bill, add Section 43.906, Local Government

Code (Committee Printing page 35, between lines 11 and 12), to read as follows:

Sec. 43.906. VOTING RIGHTS AFTER ANNEXATION. Notwithstanding Section 276.006, Election Code, a municipality that annexes an area may not prevent a qualified voter residing in the area from voting in a regularly scheduled municipal election for any reason, including the failure to obtain preclearance of a voting change from the United States Justice Department.

(3) In SECTION 16 of the bill, in Subsection (d) (Committee Printing page 38, line 6), strike "and 43.905," and substitute "43.905, and 43.906,".

(4) In SECTION 16 of the bill, in Subsection (e) (Committee Printing page 38, line 15), strike "and 43.905," and substitute "43.905, and 43.906,".

Amendment No. 16

Representative Madden offered the following amendment to Amendment No. 15:

Amend the Madden amendment to CSSB 89 by striking Section 43.906, Local Government Code (Madden Amendment page 1, lines 8-13) and substituting the following:

Sec. 43.906. VOTING RIGHTS AFTER ANNEXATION. (a) In connection with an annexation or proposed annexation, a municipality shall apply for preclearance under Section 5, Voting Rights Act of 1965, of any voting change resulting from the annexation or proposed annexation from the United States Justice Department not later than the 90th day before the effective date of the annexation or the earliest date permitted under federal law.

(b) Notwithstanding Section 276.006, Election Code, a municipality that annexes an area may not prevent a qualified voter residing in the area from voting in a regularly scheduled municipal election for any reason if the municipality has obtained preclearance of the voting change from the United States Justice Department.

Amendment No. 16 was adopted without objection.

Amendment No. 15, as amended, was adopted without objection.

(Goolsby in the chair)

Amendment No. 17

Representative Hamric offered the following amendment to CSSB 89:

Amend CSSB 89 by inserting the following appropriately numbered sections and renumbering the remaining sections accordingly:

SECTION . Subchapter 43, Local Government Code, is amended by adding Section 43.0215 to read as follows:

Sec. 43.0215. VOTER APPROVAL OF ANNEXATION REQUIRED IN CERTAIN MUNICIPALITIES. (a) This section applies only to a municipality with a population of 1.6 million or more.

(b)The municipality may not annex an area for full or limited purposes unless:

(1) the municipality holds in the area an election, at which the qualified voters of the area may vote, on the question of the annexation; and

(2) a majority of the votes received at the election approve the annexation.

(c) This section does not apply to an annexation of an area if:

(1) no qualified voters reside in the area;

(2) the annexation is authorized by or subject to another section of this chapter, other than Section 43.021; or

(3) the annexation is initiated by the municipality in response to a petition under Section 43.041.

(d) The municipality shall pay for the cost of holding the election.

SECTION . The changes in law made by this Act by the addition of Section 43.0215, Local Government Code, apply only to an annexation for which the first hearing notice required by Section 43.052, Local Government Code, is published on or after September 1, 1999. An annexation for which the first hearing notice is published before that date is governed by the law in effect at the time the notice is published, and the prior law is continued in effect for that purpose.

Amendment No. 18

Representative Danburg offered the following amendment to Amendment No. 17:

Amend the Hamric amendment to CSSB 89 as follows:

(1) Strike Section 43.0215(b), Local Government Code (Hamric Amendment page 1, lines 6-12) and substitute the following:

(b) The municipality may not annex an area for full or limited purposes unless:

(1) the municipality holds an election on the question of annexation in the area proposed for annexation and in the municipality proposing the annexation; and

(2) a majority of the votes received at the election approve the annexation.

(c) The area may not petition for another vote on the question of annexation under this section.

(2) In section 43.0215(c), Local Government Code (Hamric Amendment page 1, line 13), strike "(c)" and substitute "(d)".

(3) In section 43.0215(d), Local Government Code (Hamric Amendment page 1, line 20), strike "(d)" and substitute "(e)".

Representative Hamric moved to table Amendment No. 18.

(West, Junell, Coleman, and Heflin now present)

A record vote was requested.

The motion to table prevailed by (Record 455): 70 Yeas, 66 Nays, 5 Present, not voting.

Yeas - Allen; Bonnen; Brown, B.; Brown, F.; Carter; Chavez; Chisum; Christian; Cook; Counts; Crabb; Craddick; Crownover; Culberson; Davis, J.; Delisi; Denny; Driver; Dutton; Elkins; Farrar; George; Goodman; Green; Grusendorf; Hamric; Hardcastle; Hawley; Heflin; Hilbert; Hilderbran; Hill; Hope; Howard; Hupp; Isett; Janek; Junell; Keel; Keffer; King, P.; Krusee;

Lewis, R.; Marchant; McCall; Moreno, J.; Morrison; Mowery; Nixon; Oliveira; Palmer; Pitts; Reyna, E.; Seaman; Shields; Siebert; Smith; Smithee; Solomons; Staples; Swinford; Talton; Thompson; Truitt; Uher; West; Williams; Wilson; Wohlgemuth; Wolens.

Nays - Alexander; Alvarado; Averitt; Bailey; Berman; Bosse; Brimer; Burnam; Capelo; Coleman; Cuellar; Danburg; Davis, Y.; Deshotel; Dukes; Edwards; Ehrhardt; Eiland; Ellis; Farabee; Flores; Garcia; Giddings; Glaze; Gray; Greenberg; Gutierrez; Haggerty; Hinojosa; Hochberg; Hodge; Homer; Hunter; Jones, J.; Kuempel; Lengefeld; Lewis, G.; Longoria; Luna; Madden; Maxey; McClendon; McReynolds; Merritt; Naishtat; Najera; Noriega; Olivo; Puente; Rangel; Reyna, A.; Ritter; Sadler; Salinas; Solis, J.; Solis, J. F.; Telford; Turner, B.; Turner, S.; Uresti; Van de Putte; Walker; Wise; Woolley; Yarbrough; Zbranek.

Present, not voting - Mr. Speaker; Clark; Dunnam; Goolsby(C); Tillery.

Absent, Excused - Corte; Jones, D.

Absent, Excused, Committee Meeting - Gallego.

Absent - Hartnett; Jones, C.; King, T.; Moreno, P.; Pickett; Ramsay.

Representative Bosse moved to table Amendment No. 17.

A record vote was requested.

The motion to table was lost by (Record 456): 65 Yeas, 73 Nays, 3 Present, not voting.

Yeas - Alexander; Alvarado; Averitt; Bailey; Bosse; Burnam; Capelo; Carter; Chavez; Coleman; Cuellar; Danburg; Davis, Y.; Deshotel; Dukes; Dunnam; Ehrhardt; Eiland; Ellis; Flores; Garcia; Giddings; Glaze; Gray; Greenberg; Gutierrez; Hartnett; Hinojosa; Hochberg; Hodge; Homer; Hunter; Jones, J.; Junell; King, T.; Lengefeld; Longoria; Luna; Maxey; McClendon; McReynolds; Merritt; Naishtat; Najera; Noriega; Oliveira; Olivo; Puente; Rangel; Reyna, A.; Ritter; Sadler; Salinas; Smithee; Solis, J.; Telford; Turner, S.; Uresti; Van de Putte; Walker; Wise; Wolens; Woolley; Yarbrough; Zbranek.

Nays - Berman; Bonnen; Brimer; Brown, B.; Brown, F.; Chisum; Christian; Clark; Cook; Counts; Crabb; Craddick; Crownover; Culberson; Davis, J.; Delisi; Denny; Driver; Dutton; Edwards; Elkins; Farabee; Farrar; George; Goodman; Green; Grusendorf; Haggerty; Hamric; Hardcastle; Hawley; Heflin; Hilbert; Hilderbran; Hill; Hope; Howard; Hupp; Isett; Janek; Jones, C.; Keel; Keffer; King, P.; Krusee; Kuempel; Lewis, G.; Lewis, R.; Marchant; McCall; Moreno, J.; Morrison; Mowery; Nixon; Palmer; Pickett; Pitts; Reyna, E.; Shields; Smith; Solis, J. F.; Solomons; Staples; Swinford; Talton; Thompson; Truitt; Turner, B.; Uher; West; Williams; Wilson; Wohlgemuth.

Present, not voting - Mr. Speaker; Goolsby(C); Tillery.

Absent, Excused - Corte; Jones, D.

Absent, Excused, Committee Meeting - Gallego.

Absent - Allen; Madden; Moreno, P.; Ramsay; Seaman; Siebert.

STATEMENT OF VOTE

I was shown voting yes on Record No. 456. I intended to vote no.

Hartnett

A record vote was requested.

Amendment No. 17 failed of adoption by (Record 457): 61 Yeas, 70 Nays, 6 Present, not voting.

Yeas - Berman; Brimer; Brown, B.; Chisum; Christian; Clark; Cook; Counts; Crabb; Craddick; Crownover; Culberson; Davis, J.; Delisi; Denny; Dutton; Elkins; Farrar; George; Green; Grusendorf; Haggerty; Hamric; Hawley; Heflin; Hilbert; Hilderbran; Hill; Hope; Howard; Hupp; Isett; Janek; Jones, C.; Keel; Keffer; King, P.; Krusee; Kuempel; Lewis, R.; Madden; Marchant; McCall; Merritt; Moreno, J.; Morrison; Mowery; Nixon; Palmer; Pitts; Reyna, E.; Seaman; Shields; Solomons; Staples; Talton; West; Williams; Wilson; Wohlgemuth; Woolley.

Nays - Alexander; Alvarado; Averitt; Bailey; Bosse; Brown, F.; Burnam; Capelo; Carter; Chavez; Coleman; Cuellar; Danburg; Davis, Y.; Deshotel; Dukes; Dunnam; Edwards; Ehrhardt; Ellis; Farabee; Flores; Garcia; Glaze; Goodman; Gray; Greenberg; Gutierrez; Hardcastle; Hartnett; Hinojosa; Hochberg; Hodge; Homer; Hunter; Jones, J.; Junell; Lengefeld; Longoria; Luna; Maxey; McClendon; McReynolds; Naishtat; Najera; Noriega; Olivo; Pickett; Puente; Rangel; Reyna, A.; Ritter; Sadler; Salinas; Smith; Smithee; Solis, J.; Solis, J. F.; Swinford; Telford; Thompson; Tillery; Turner, B.; Turner, S.; Uresti; Van de Putte; Walker; Wise; Yarbrough; Zbranek.

Present, not voting - Mr. Speaker; Bonnen; Driver; Eiland; Goolsby(C); Truitt.

Absent, Excused - Corte; Jones, D.

Absent, Excused, Committee Meeting - Gallego.

Absent - Allen; Giddings; King, T.; Lewis, G.; Moreno, P.; Oliveira; Ramsay; Siebert; Uher; Wolens.

STATEMENTS OF VOTE

I was shown voting no on Record No. 457. I intended to vote yes.

Hartnett

I was shown voting yes on Record No. 457. I intended to vote no.

J. Moreno

I was shown voting yes on Record No. 457. I intended to vote no.

Woolley

Amendment No. 19

Representative Clark offered the following amendment to CSSB 89:

Amend CSSB 89 by adding a new SECTION to the bill to be numbered appropriately to read as follows and by renumbering the other SECTIONS of the bill accordingly:

SECTION _____. This Act does not affect in any way any contract or other agreement existing on the effective date of this Act to which a municipality is a party.

Amendment No. 19 was adopted without objection.

Amendment No. 20

Representative Hilbert offered the following amendment to CSSB 89:

Amend CSSB 89 as follows:

(1) Insert the following appropriately numbered section to the bill and renumber subsequent sections of the bill appropriately:

SECTION ____. Section 43.054(a), Local Government Code, is amended to read as follows:

(a) A municipality with a population of less than 1.6 million may not annex a publicly or privately owned area, including a strip of area following the course of a road, highway, river, stream, or creek, unless the width of the area at its narrowest point is at least 1,000 feet.

(2) In SECTION 5 of the bill, in the recital to that section (Committee Printing page 9, line 23), strike "Section 43.0545" and substitute "Sections 43.0545 and 43.0546".

(3) In SECTION 5 of the bill, after added Section 43.0545, Local Government Code (Committee Printing page 10, between lines 24 and 25), insert the following:

Sec. 43.0546. ANNEXATION OF CERTAIN ADJACENT AREAS BY POPULOUS MUNICIPALITIES. (a) In this section, "municipal area" means the area within the corporate boundaries of a municipality other than:

(1) an area annexed prior to the effective date of this section that is less than 1,000 feet wide at any point;

(2) an area within the corporate boundaries of the municipality that was annexed by the municipality prior to the effective date of this section and at the time of the annexation the area was contiguous to municipal territory that was less than 1,000 feet wide at any point;

(3) an area annexed after December 1, 1995, and before the effective date of this section;

(4) municipally owned property; or

(5) an area contiguous to municipally owned property if the municipally owned property was annexed in an annexation that included an area that was less than 1,000 feet wide at its narrowest point.

(b) This section applies only to a municipality with a population of 1.6 million or more.

(c) A municipality to which this section applies may not annex an area that is less than 1,500 feet wide at any point. At least 1,500 feet of the perimeter of the area annexed by a municipality must be conterminous with the boundary of the municipal area of the municipality.

(d) This section does not apply to territory:

(1) that is completely surrounded by municipal area;

(2) for which the owners of the area have requested annexation by the municipality;

(3) within a district whose elected board of directors has by a majority vote requested annexation;

(4) owned by the municipality; or

(5) that contains fewer than 50 inhabitants.

(4) In SECTION 16 of the bill, in Subsections (a), (c), and (g) (Committee Printing, page 37, line 15; page 37, line 21; and page 39, line 6), correct the references to specific sections of the bill to take into account the renumbering of the sections of the bill required by item (1) of this amendment, and in correcting those references in Subsection (c) include a reference to the section added by item (1) of this amendment.

(5) In SECTION 16(d) of the bill (Committee Printing page 38, line 5), strike "43.0545," and substitute "43.054, 43.0545, 43.0546,".

(6) In SECTION 16(e) of the bill (Committee Printing page 38, line 14), strike "43.0545," and substitute "43.054, 43.0545, 43.0546,".

Amendment No. 20 was adopted without objection.

Amendment No. 21

Representative B. Turner offered the following amendment to CSSB 89:

Amend CSSB 89 as follows:

(1) Add the following appropriately numbered section to the bill and renumber subsequent sections of the bill appropriately:

SECTION ____. Subchapter B, Chapter 43, Local Government Code, is amended by adding Section 43.035 to read as follows:

Sec. 43.035. COUNTY APPROVAL REQUIRED FOR ANNEXATION OR EXTENSION OF EXTRATERRITORIAL JURISDICTION IN CERTAIN AREAS. (a) In this section, "priority groundwater management area" has the meaning assigned by Section 35.002, Water Code.

(b) This section applies only to the annexation of an area or the extension by annexation of extraterritorial jurisdiction in an area that is located in a county that is designated in whole or in part as a priority groundwater management area.

(c) A municipality may not annex an area or extend by annexation its extraterritorial jurisdiction in an area that is located outside the county in which a majority of the territory of the municipality is located unless the municipality obtains approval for the annexation or extension of extraterritorial jurisdiction from the commissioners court of each county in which the area is located.

(2) In SECTION 16 of the bill, in Subsections (a), (c), and (g) (Committee Printing, page 37, line 15; page 37, line 21; and page 39, line 6), correct the references to specific sections of the bill to take into account the renumbering of the sections of the bill required by item (1) of this amendment, and in correcting those references in Subsection (c) include a reference to the section added by item (1) of this amendment.

(3) In SECTION 16 of the bill, strike Subsections (d) and (e) (Committee Printing, page 38, lines 4-21) and substitute the following:

(d) The changes in law made by this Act in Sections 43.002, 43.035, 43.0545, 43.056(b), (c), (e), (f), (g), (l), and (m), 43.121(a), 43.141(c), 43.148, and 43.905, Local Government Code, as added or amended by this Act, apply

to the annexation of an area that is not included in the municipality's annexation plan during the period beginning December 31, 1999, and ending December 31, 2002, if the first hearing notice required by Section 43.052, Local Government Code, as it existed immediately before September 1, 1999, is published on or after that date.

(e) The changes in law made by this Act in Sections 43.002, 43.035, 43.0545, 43.056(b), (c), (e), (f), (g), (l), and (m), 43.121(a), 43.141(c), 43.148, and 43.905, Local Government Code, as added or amended by this Act, apply to the annexation of an area that is not required to be included in a municipal annexation plan under Section 43.052, Local Government Code, as amended by this Act, if the first hearing notice required by Section 43.063, Local Government Code, as added by this Act, is published on or after September 1, 1999.

(4) In SECTION 16 of the bill (Committee Printing, page 39, between lines 13 and 14), add Subsection (h) to read as follows:

(h) The changes in law made by this Act by the addition of Section 43.035, Local Government Code, apply only to an annexation for which the first hearing notice required by Section 43.0561 or 43.063, Local Government Code, as added by this Act, is published on or after September 1, 1999. An annexation for which the first hearing notice required by Section 43.052, as it existed immediately before September 1, 1999, is published before September 1, 1999, is governed by the law in effect at the time the notice is published, and the former law is continued in effect for that purpose.

Representative Bosse moved to table Amendment No. 21.

The motion to table prevailed.

MESSAGE FROM THE SENATE

A message from the senate was received at this time (see the addendum to the daily journal, Messages from the Senate, Message No. 3).

CSSB 89 - (consideration continued)

Amendment No. 22

Representatives Dunnam and Averitt offered the following amendment to CSSB 89:

Amend CSSB 89 by striking Section 43.056(b), Local Government Code (Committee Printing page 11, line 11, through page 12, line 6) and substituting the following:

(b) The service plan must include a program under which the municipality will provide full municipal services in the annexed area no later than 2-1/2 [4-1/2 ] years after the effective date of the annexation, in accordance with Subsection (e), unless that period is extended by an arbitration decision issued under this chapter or by agreement between the municipality and the party with which the municipality is required to negotiate for services under this subchapter [(d) ]. If the area was annexed after December 1, 1998, and before September 1, 1999, the municipality shall provide sewer services in the annexed area as provided by this subsection, except that, no later than five years after the effective date of the annexation,

the municipality may not provide sewer services in the annexed area in by means of a packing station. However, under the program the municipality must provide the following services in the area on [within 60 days after ] the effective date of the annexation of the area:

(1) police protection;

(2) fire protection;

(3) emergency medical services;

(4) solid waste collection;

(5) operation and [(4) ] maintenance of water and wastewater facilities in the annexed area that are not within the service area of another water or wastewater utility;

(6) operation and [(5) ] maintenance of roads and streets, including road and street lighting;

(7) operation and [(6) ] maintenance of parks, playgrounds, and swimming pools; and

(8) operation and [(7) ] maintenance of any other publicly owned facility, building, or service.

Amendment No. 22 was adopted without objection.

Amendment No. 23

Representative Staples offered the following amendment to CSSB 89:

Amend CSSB 89 by adding the following SECTION and renumbering the subsequent sections appropriately:

SECTION . Subchapter D, Chapter 43, Local Government Code, is amended by adding Section 43.0712 to read as follows:

"Section 43.0712. (a) If a municipality enacts an ordinance to annex a special district and assumes control and operation of utilities within the district, and the annexation is invalidated by a final judgment of a court of competent jurisdiction, the municipality is deemed, by enactment of its annexation ordinance, to have acquired title to utilities owned by a developer within the special district and is obligated to pay the developer all amounts related to the utilities as provided in Sec. 43.0715 of this code.

(b) Upon resumption of the functions of the special district:

(1) the municipality shall succeed to the contractual rights of the developer to be reimbursed by the special district for the utilities the municipality acquires from the developer; and

(2) the special district shall resume the use of the utilities acquired and paid for by the municipality, and shall thereafter issue bonds to acquire the utilities from the municipality and reimburse the municipality for amounts the municipality paid the developer. The issuance of bonds by the special district and the payment to the municipality shall be governed by the requirements of the Texas Natural Resources Conservation Commission for the issuance of the bonds.

(c) This section takes effect September 1, 1999 and applies to municipal annexation ordinances enacted before or after the effective date of this section."

Amendment No. 23 was adopted.

BILLS AND RESOLUTIONS SIGNED BY THE SPEAKER

Notice was given at this time that the speaker had signed bills and resolutions in the presence of the house (see the addendum to the daily journal, Signed by the Speaker, Senate List No. 30).

CSSB 89 - (consideration continued)

(Speaker in the chair)

Amendment No. 24

Representative Green offered the following amendment to CSSB 89:

Amend CSSB 89 by adding the following appropriately numbered section to the bill and renumbering subsequent sections of the bill appropriately:

SECTION ____. Subchapter B, chapter 43, Local Government Code, is amended by adding Section 43.035 to read as follows:

Sec. 43.035. COUNTY APPROVAL REQUIRED FOR MUNICIPAL ANNEXATION IN CERTAIN AREAS. (a) A municipality with a population of less than 500,000 may not annex an area that is located in a county other than a county in which a majority of the territory of the municipality is located, unless the municipality has the written approval of the commissioners court of the county in which the area is located.

(b) A municipality subject to Subsection (a) may exercise its extraterritorial jurisdiction powers under Section 212.003 in the county described by Subsection (a).

(c) If a municipality is prohibited from annexing area under this section, the municipality may not exercise any powers under Section 26.177, Water Code in the county described by Subsection (a).

Representative Bosse moved to table Amendment No. 24.

The motion to table prevailed.

CSSB 89, as amended, was passed to third reading. (Alexander, Counts, Howard, and Uher recorded voting no)

HR 1094 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f), of the House Rules, the speaker announced the introduction of HR 1094, suspending the limitations on the conferees for HB 1945.

POSTPONED BUSINESS

The following bills were laid before the house as postponed business:

SB 962 ON THIRD READING

(Keel - House Sponsor)

SB 962, A bill to be entitled An Act relating to the prosecution and punishment of the offense of harassment.

SB 962 was read third time on May 22, amended, once and was postponed until 10 a.m. today.

Amendment No. 2

Representative Keel offered the following amendment to SB 962:

Amend SB 962 on 3rd Reading, in amended Section 42.07, Penal Code, by striking Section 42.07(c), as amended by the Thompson 2nd Reading amendment, and substituting the following:

(c) An offense under this section is a Class B misdemeanor unless:

(1) the defendant has previously been convicted under this section, in which event the offense is a Class A misdemeanor; or

(2) the judge or jury determines that the defendant intentionally selected the victim primarily because of the defendant's bias or prejudice against a group, in which event the offense is a Class A misdemeanor, with a minimum term of confinement of 180 days and a maximum fine of $5,000.

Amendment No. 2 failed of adoption.

SB 962 - LAID ON THE TABLE SUBJECT TO CALL

Representative Keel moved to lay SB 962 on the table subject to call.

The motion prevailed without objection.

SB 1438 ON SECOND READING

(Wilson House Sponsor)

SB 1438, A bill to be entitled An Act relating to a pilot project transferring certain professional and occupational licensing boards to selfdirected semiindependent status; making an appropriation.

SB 1438 was read second time on May 22 and was postponed until 10 a.m. today.

Amendment No. 1

Representatives Junell, Pitts, McReynolds, Gutierrez, Moreno, and Pickett offered the following amendment to SB 1438:

Amend SB 1438 as follows:

(1) In SECTION 2 of the bill, in proposed Section 2, Article 8930, Revised Statutes, strike Subdivisions (2)(5) of the section (House Committee Printing, page 3, lines 1619) and substitute the following:

(2) the Texas Board of Professional Engineers; and

(3) the Texas Board of Architectural Examiners.

(2) In SECTION 2 of the bill, in proposed Section 8, Article 8930, Revised Statutes (committee printing page 4, line 26), after the section heading, insert "(a)".

(3) In SECTION 2 of the bill, in proposed Section 8, Article 8930, Revised Statutes (committee printing page 5, between lines 12 and 13), at the end of that proposed section, add the following:

(b) In addition to the reporting requirements of Subsection (a) of this section, each project agency shall report annually, not later than September 1, to the governor, to the committee of each house of the legislature that has jurisdiction over appropriations, and to the Legislative Budget Board the following:

(1) the salary for all project agency personnel and the total amount of per diem expenses and travel expenses paid for all agency employees;

(2) the total amount of per diem expenses and travel expenses paid for each member of the governing body of each project agency;

(3) each project agency's operating plan and budget covering a twoyear period; and

(4) a detailed report of all revenue received and all expenses incurred by the project agency in the previous 12 months.

(4) In SECTION 2 of the bill, at the end of proposed Section 13, Article 8930, Revised Statutes (house committee printing page 7, line 8), insert "The attorney general may assess and collect from the project agency reasonable attorney's fees associated with any litigation under this section."

(5) In SECTION 2 of the bill, strike added Section 12, Article 8930, Revised Statutes (House Committee Printing, page 6, line 12, through page 7, line 6), and substitute:

Sec. 12. PROPERTY. A project agency may acquire by lease, and maintain, use, and operate, any real, personal, or mixed property necessary to the exercise of the powers, rights, privileges, and functions of the agency.

(6) In SECTION 2 of the bill, in added Section 4(c), Article 8930, Revised Statutes (House Committee Printing, page 4, line 3), strike "2005" and substitute "2003"

(7) In SECTION 2 of the bill, in proposed Section 15, Article 8930, Revised Statutes (committee printing page 7, line 13), after the heading for the proposed section, insert "(a)".

(8) In SECTION 2 of the bill, after proposed Section 15, Article 8930, Revised Statutes (committee printing page 7, between lines 17 and 18), add the following:

(b) If a state agency no longer has status under this Act as a selfdirected, semiindependent project agency either because of the expiration of this Act or for any other reason, the agency shall be liable for any expenses or debts incurred by the agency during the time the agency participated in the pilot project. The agency's liability under this section includes liability for any lease entered into by the agency. The state is not liable for any expense or debt covered by this subsection and money from the general revenue fund may not be used to repay the expense or debt.

(c) If a state agency no longer has status under this Act as a selfdirected, semiindependent project agency either because of the expiration of this Act or for any other reason, ownership of any property or other asset acquired by the agency during the time the agency participated in the pilot project shall be transferred to the state.

(9) Strike SECTION 7 of the bill (House Committee Printing, page 10, lines 11 through 18).

(10) Strike SECTION 8 of the bill (House Committee Printing, page 10, lines 19 through 26).

(11) Strike SECTION 13 of the bill (House Committee Printing, page 13, lines 18 through 25).

(12) Strike SECTIONS 15 through 19 of the bill (House Committee Printing, page 15, lines 10 through page 18, line 3).

(13) Renumber the SECTIONS of the bill appropriately.

Amendment No. 1 was adopted without objection.

SB 1438, as amended, was passed to third reading.

SB 558 ON SECOND READING

(Garcia - House Sponsor)

SB 558, A bill to be entitled An Act relating to training requirements for certain child-care providers.

SB 558 was read second time on May 22 and was postponed until 10 a.m. today.

Amendment No. 1 (Committee Amendment No. 1)

On behalf of Representative Naishtat, Representative Garcia offered the following committee amendment to SB 558:

Amend CSSB 558 in SECTION 2 of the bill by striking "September 1, 1999" and substituting "January 1, 2000".

Amendment No. 1 was adopted without objection.

Amendment No. 2

Representative Christian offered the following amendment to SB 558:

Amend SB 558 on page 1, line 23 as follows:

Strike the phrase "in addition to" and substitute the phrase "as a component of".

(Alexander in the chair)

(Gallego now present)

(Speaker in the chair)

Representative Garcia moved to table Amendment No. 2.

The motion to table was lost.

Amendment No. 2 was adopted without objection.

SB 558, as amended, was passed to third reading.

CSSB 103 ON SECOND READING

(Grusendorf, et al. - House Sponsors)

CSSB 103, A bill to be entitled An Act relating to state assessments of public school students.

CSSB 103 was read second time on May 22 and was postponed until 7:30 p.m., and was again postponed until 10 a.m. today.

Amendment No. 1

Representative Chisum offered the following amendment to CSSB 103:

Amend CSSB 103 as follows:

On page 1, lines 19-24 and page 2 lines 1-9, strike the entire contents of SECTION 2. Renumber the remaining sections of the bill accordingly.

Amendment No. 1 was withdrawn.

(Sadler in the chair)

Amendment No. 2

Representative Shields offered the following amendment to CSSB 103:

Amend CSSB 103 as follows:

(1) In SECTION 3 of the bill, in Section 39.022, Education Code (House Committee Printing, page 2, line 14), strike "primarily performance-based" and substitute "knowledge- and skills-based [primarily performance based ]".

(2) In SECTION 4 of the bill, in the introductory language (House Committee Printing, page 2, line 20), strike "(a), (c)" and substitute "(a)-(c)".

(3) In SECTION 4 of the bill, in Subsection (a), Section 39.023, Education Code (House Committee Printing, page 2, line 23), strike "competencies" and substitute "essential knowledge and skills [competencies ]".

(4) In SECTION 4 of the bill, strike proposed Subdivisions (1), (2), and (3), Subsection (a), Section 39.023, Education Code (House Committee Printing, page 2, line 27, through page 3, lines 1-3), and substitute the following:

(1) mathematics ability, annually in grades three through seven without the aid of technology and in grades eight through eleven with the aid of technology on any assessment instruments that include algebra;

(2) reading ability [and mathematics ], annually in grades three through nine [eight ];

(3) [(2) ] writing, including spelling and grammar, in grades four and seven [eight ];

(5) In SECTION 4 of the bill, between Subsections (a) and (c), Section 39.023, Education Code (House Committee Printing, page 3, between lines 7 and 8), insert the following:

(b) The agency shall develop or adopt appropriate criterion-referenced assessment instruments to be administered to each student in a special education program under Subchapter A, Chapter 29, who receives instruction in the essential knowledge and skills identified under Section 28.002 but for whom the assessment instruments adopted under Subsection (a), even with allowable modifications, would not provide an appropriate measure of student achievement, as determined by the student's admission, review, and dismissal committee. The assessment instruments required under this subsection must assess essential knowledge and skills [competencies ] and growth in reading, mathematics, and writing. A student's admission, review, and dismissal committee shall determine whether any allowable modification is necessary in administering to the student an assessment instrument required under this subsection. The assessment instruments required under this subsection shall be administered on the same schedule as the assessment instruments administered under Subsection (a).

(6) In SECTION 4 of the bill, in Subsection (c), Section 39.023, Education Code (House Committee Printing, page 3, line 10), strike "competencies" and substitute "essential knowledge and skills [competencies ]".

(7) In SECTION 4 of the bill, in Subsection (c), Section 39.023, Education Code (House committee printing, page 3, line 12), between "geometry" and the period, insert "with the aid of technology".

(8) In SECTION 4 of the bill, in Subsection (c), Section 39.023, Education Code (House Committee Printing, page 3, line 14), strike "writing competencies" and substitute "essential knowledge and skills in writing [competencies ]".

(9) Between SECTION 18 and SECTION 19 of the bill (House Committee Printing, page 13, between lines 19 and 20), insert the following SECTION and renumber the subsequent SECTIONS of the bill accordingly:

SECTION 19. The portion of Subdivision (1), Subsection (a), Section 39.023, Education Code, as amended by this Act, that requires assessment of mathematics computation skills without the aid of technology applies beginning with the 2004-2005 school year.

Amendment No. 3

Representative Shields offered the following amendment to Amendment No. 2:

Amend the Shields Amendment to CSSB 103 by striking Subdivision (9) of the amendment (Shields amendment, page 2, line 28, through page 3, line 4).

Amendment No. 3 was adopted without objection.

Amendment No. 4

Representative Shields offered the following amendment to Amendment No. 2:

Amend the Shields amendment CSSB 103 on page 1, lines 17 and 21, by striking "ability" each time it appears.

Amendment No. 4 was adopted without objection.

Amendment No. 5

Representative S. Turner offered the following amendment to Amendment No. 2:

Amend the Shields amendment to CSSB 103 as follows:

(1) Strike page 1, lines 17-24 and substitute the following:

(1) mathematics, annually in grades three through eight;

(2) reading [and mathematics ], annually in grades three through nine [eight ];

(3) [(2) ] writing, in grades four and eight; and

(4) [(3) ] social studies and science, at an appropriate grade level determined by the State Board of Education.

(2) Add the following new item to the amendment:

(2) Strike SECTION 18(4) of the bill (house committee report, page 12, lines 15-26) and substitute the following:

(4) not later than the 2004-2005 school year, the Texas Education Agency shall administer assessment instruments under Subsection (b), Section 39.023, Education Code, that correspond to the reading assessment instrument administered in grade nine under Subsection (a), Section 39.023, Education Code, as amended by this Act;

Representative Grusendorf moved to table Amendment No. 5.

A record vote was requested.

The motion to table prevailed by (Record 458): 81 Yeas, 61 Nays, 2 Present, not voting.

Yeas - Allen; Averitt; Berman; Bonnen; Brimer; Brown, B.; Brown, F.; Carter; Chavez; Chisum; Christian; Clark; Crabb; Craddick; Crownover; Cuellar; Culberson; Davis, J.; Delisi; Denny; Driver; Eiland; Elkins; Garcia; George; Goodman; Goolsby; Gray; Green; Grusendorf; Haggerty; Hamric; Hardcastle; Hartnett; Heflin; Hilbert; Hilderbran; Hill; Hinojosa; Homer; Hope; Howard; Hunter; Hupp; Isett; Janek; Jones, C.; Keffer; King, P.; Krusee; Kuempel; Madden; Marchant; McCall; Merritt; Moreno, P.; Morrison; Mowery; Nixon; Noriega; Oliveira; Palmer; Pitts; Reyna, E.; Seaman; Shields; Siebert; Smith; Smithee; Solomons; Staples; Swinford; Talton; Truitt; Walker; West; Williams; Wilson; Wohlgemuth; Wolens; Woolley.

Nays - Alexander; Alvarado; Bailey; Bosse; Burnam; Capelo; Cook; Counts; Davis, Y.; Deshotel; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Ellis; Farabee; Farrar; Flores; Gallego; Giddings; Glaze; Gutierrez; Hawley; Hochberg; Hodge; Jones, J.; Junell; Keel; King, T.; Lengefeld; Lewis, G.; Lewis, R.; Longoria; Luna; Maxey; McClendon; McReynolds; Moreno, J.; Naishtat; Najera; Olivo; Pickett; Puente; Rangel; Reyna, A.; Ritter; Salinas; Solis, J.; Solis, J. F.; Telford; Thompson; Tillery; Turner, B.; Turner, S.; Uher; Uresti; Van de Putte; Wise; Yarbrough; Zbranek.

Present, not voting - Mr. Speaker; Sadler(C).

Absent, Excused - Corte; Jones, D.

Absent - Coleman; Danburg; Greenberg; Ramsay.

Amendment No. 2, as amended, was adopted without objection.

Amendment No. 6

Representatives Howard and Longoria offered the following amendment to CSSB 103:

Amend CSSB 103 as follows:

(1) Strike SECTION 3 of the bill, amending Section 39.022, Education Code (House Committee Report, page 2, lines 10-19).

(2) In SECTION 4 of the bill, in the introductory language (House Committee Report, page 2, line 20), strike "(c), (e), and (g)," and substitute "(c), and (e),".

(3) In SECTION 4 of the bill, in amended Section 39.023(c), Education Code (House Committee Report, page 3, lines 24-26, strike "agency [State Board of Education ]" both places it appears and substitute "State Board of Education".

(4) In SECTION 4 of the bill, in amended Section 39.023(e), Education Code (House Committee Report, page 4, lines 8 and 9), strike "agency [State Board of Education ]" and substitute "State Board of Education".

(5) In SECTION 4 of the bill, strike amended Section 39.023(g),

Education Code (House Committee Report, page 4, line 18, through page 5, line 1).

(6) Strike SECTION 5 of the bill, amending Section 39.024(a), Education Code (House Committee Report, page 5, lines 2-11).

(7) Strike SECTIONS 7-12 of the bill, amending Sections 39.026, 39.027(b), 39.029, 39.030(a), 39.032(c)-(e), and 39.033(c), Education Code (House Committee Report, page 5, line 24, through page 8, line 15).

(8) In SECTION 18(2) of the bill, strike "Texas Education Agency" and substitute "State Board of Education" (House Committee Report, page 12, lines 6 and 7).

(9) In SECTION 18(4) of the bill, strike "Texas Education Agency" and substitute "State Board of Education" (House Committee Report, page 12, line 16).

(10) In SECTION 18(6)(A) of the bill, strike "Texas Education Agency" and substitute "State Board of Education" (House Committee Report, page 13, line 9).

(11) Renumber SECTIONS of the bill accordingly.

Representative Hochberg moved to table Amendment No. 6.

A record vote was requested.

The motion to table prevailed by (Record 459): 87 Yeas, 58 Nays, 2 Present, not voting.

Yeas - Alexander; Alvarado; Averitt; Bailey; Bosse; Burnam; Capelo; Carter; Chavez; Chisum; Coleman; Cook; Counts; Cuellar; Danburg; Davis, Y.; Deshotel; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland; Ellis; Farabee; Farrar; Flores; Gallego; Garcia; Giddings; Glaze; Goodman; Gray; Greenberg; Gutierrez; Haggerty; Hawley; Hinojosa; Hochberg; Hodge; Homer; Jones, J.; Junell; Keel; King, T.; Lengefeld; Lewis, G.; Lewis, R.; Longoria; Luna; Maxey; McClendon; McReynolds; Merritt; Moreno, J.; Moreno, P.; Mowery; Naishtat; Najera; Noriega; Oliveira; Olivo; Pickett; Puente; Ramsay; Rangel; Reyna, A.; Ritter; Salinas; Smith; Smithee; Solis, J.; Solis, J. F.; Swinford; Telford; Thompson; Tillery; Truitt; Turner, B.; Turner, S.; Uher; Uresti; Van de Putte; Wise; Wolens; Yarbrough; Zbranek.

Nays - Allen; Berman; Bonnen; Brimer; Brown, B.; Brown, F.; Christian; Clark; Crabb; Craddick; Crownover; Culberson; Davis, J.; Delisi; Denny; Driver; Elkins; George; Goolsby; Green; Grusendorf; Hamric; Hardcastle; Heflin; Hilbert; Hilderbran; Hill; Hope; Howard; Hunter; Hupp; Isett; Janek; Jones, C.; Keffer; King, P.; Krusee; Kuempel; Madden; Marchant; McCall; Morrison; Nixon; Palmer; Pitts; Reyna, E.; Seaman; Shields; Siebert; Solomons; Staples; Talton; Walker; West; Williams; Wilson; Wohlgemuth; Woolley.

Present, not voting - Mr. Speaker; Sadler(C).

Absent, Excused - Corte; Jones, D.

Absent - Hartnett.

STATEMENT OF VOTE

I was shown voting yes on Record No. 459. I intended to vote no.

Truitt

Amendment No. 7

Representatives Garcia and Woolley offered the following amendment to CSSB 103:

Amend CSSB 103 as follows:

(1) In SECTION 4 of the bill, strike the introductory language (House Committee Report, page 2, lines 20 and 21), and substitute the following:

SECTION 4. Section 39.023, Education Code, is amended by amending Subsections (a), (c), (e), and (g) and adding Subsections (l) and (m) to read as follows:

(2) In SECTION 4 of the bill, in amended Subsection (a), Section 39.023, Education Code (House Committee Report, page 2, line 22), between "adopt" and "appropriate", insert "or develop".

(3) In SECTION 4 of the bill, in amended Subsection (a), Section 39.023, Education Code (House Committee Report, page 2, line 25), between "Subsection (b)" and "or exempted", insert "or (l)".

(4) In SECTION 4 of the bill, in amended Subsection 39.023(e), Education Code (House Committee Report, page 4, line 11), strike "or (c) [, or (d) ]" and substitute "(c), or (l) [(d) ]".

(5) In SECTION 4 of the bill, immediately preceding SECTION 5 of the bill (House Committee Report, page 5, between lines 1 and 2), insert the following:

(l) The agency shall adopt rules for the administration of the assessment instruments adopted under Subsection (a) in Spanish to students of limited English proficiency, as defined by Section 29.052, and whose primary language is Spanish. The language proficiency assessment committee established under Section 29.063 shall determine which students are administered assessment instruments in Spanish under this subsection. Each student of limited English proficiency whose primary language is Spanish, other than a student to whom Subsection (b) applies, shall be assessed using assessment instruments in Spanish under this subsection or assessment instruments in English under Subsection (a).

(m) The agency shall initially release, under Subsection (e), the questions and answer key to each assessment instrument administered under Subsection (l) after the last administration of an assessment instrument in the third school year in which the instrument is administered. This subsection expires September 1, 2005.

(6) In SECTION 5 of the bill (House Committee Report, page 5, lines 2 and 3), strike the introductory language and substitute:

SECTION 5. Subsections (a) and (b), Section 39.024, Education Code, are amended to read as follows:

(7) In SECTION 5 of the bill, immediately following Subsection (a), Section 39.024, Education Code (House Committee Report, page 5, between lines 11 and 12), insert the following:

(b) Each school district shall offer an intensive program of instruction for students who did not perform satisfactorily on an assessment instrument administered under this subchapter. The intensive programs for students who did not perform satisfactorily on an assessment instrument under Section 39.023(a), [or ] (c), or (l) shall be designed to enable those [the ] students to

be performing at grade level at the conclusion of the next regular school term or to attain a standard of annual growth specified by the agency. The intensive programs for students who did not perform satisfactorily on an assessment instrument under Section 39.023(b) shall be designed by each student's admission, review, and dismissal committee to enable the student to attain a standard of annual growth on the basis of the student's individualized education program.

(8) Strike SECTION 8 of the bill (House Committee Report, page 6, lines 6 through 14), and substitute the following:

SECTION 8. Section 39.027, Education Code, is amended by amending Subsection (a), (b), and (e) and adding Subsection (f) to read as follows:

(a) A student may be exempted from the administration of an assessment instrument under:

(1) Section 39.023(a) or (b) if the student is eligible for a special education program under Section 29.003 and the student's individualized education program does not include instruction in the essential knowledge and skills under Section 28.002 at any grade level;

(2) Section 39.023(c) or (d) if the student is eligible for a special education program under Section 29.003 and:

(A) the student's individualized education program does not include instruction in the essential knowledge and skills under Section 28.002 at any grade level; or

(B) the assessment instrument, even with allowable modifications, would not provide an appropriate measure of the student's achievement as determined by the student's admission, review, and dismissal committee; or

(3) Section 39.023 if the student is of limited English proficiency, as defined by Section 29.052, and has a primary language other than Spanish.

(b) The agency [State Board of Education ] shall adopt rules under which a dyslexic student who is not exempt under Subsection (a) may use procedures including oral examinations if appropriate or may be allowed additional time or the materials or technology necessary for the student to demonstrate the student's mastery of the competencies the assessment instruments are designed to measure.

(e) The commissioner shall develop an assessment system that shall be used for evaluating the academic progress, including reading proficiency in English, of all students of limited English proficiency, as defined by Section 29.052. The performance of students on the assessment system developed under this subsection of students to whom Subsection (a)(3) applies shall be included in the academic excellence indicator system under Section 39.051, the campus report card under Section 39.052, and the performance report under Section 39.053. The agency shall compile data on the performance under that assessment system of students of limited English proficiency whose primary language is Spanish, and the performance of those students shall be included in the campus report card under Section 39.052 and the performance report under Section 39.053.

(f) In this section, "average daily attendance" is computed in the manner provided by Section 42.005.

(9) In SECTION 13 of the bill, in amended Subdivision (1), Subsection (b), Section 39.051, Education Code (House Committee Report, page 8, line 26), strike "Sections 39.023(a) and (c)" and substitute "Sections 39.023(a), [and ] (c), and (l)".

(10) Strike SECTION 17 of the bill (House Committee Report, page 11, lines 19 and 20) and substitute the following:

SECTION 17. The following provisions of the Education Code are repealed:

(1) Subdivision (33), Subsection (b), Section 7.055; and

(2) Subsections (d) and (j), Section 39.023.

(11) Insert the following appropriately numbered new SECTION and renumber subsequent SECTIONS of the bill accordingly:

SECTION ____. (a) The Texas Education Agency shall administer assessment instruments in accordance with rules adopted under Subsection (l), Section 39.023, Education Code, as added by this Act for students in:

(1) grades three through six not later than the 1999-2000 school year; and

(2) grades seven and eight not later than the 2002-2003 school year.

(b) The performance of students under an assessment instrument prescribed under Section 39.023(l), Education Code, as added by this Act, shall be included in the accountability system as provided by Section 39.051(b), Education Code, as amended by this Act for students in:

(1) grades three through six not later than the 1999-2000 school year; and

(2) grades seven and eight not later than the 2003-2004 school year.

(c) Section 39.027(a)(3), Education Code, as amended by this Act, applies to students in:

(1) grades three through six beginning with the 1999-2000 school year; and

(2) grades seven and eight beginning with the 2002-2003 school year.

Amendment No. 7 was adopted without objection.

Amendment No. 8

Representatives Oliveira and Shields offered the following amendment to CSSB 103:

Amend CSSB 103 in SECTION 4 of the bill, amended Section 39.023 (a) (6), Education Code (house committee report, page 3, line 6), by striking "in grade 10" and substituting "in grades 5 and 10".

Representative Dunnam moved to table Amendment No. 8.

The motion to table prevailed.

Amendment No. 9

Representative Hill offered the following amendment to CSSB 103:

Amend CSSB 103 in SECTION 4 of the bill, amended Section 39.023 (c), Education Code (house committee report, page 3, lines 14-15), by striking "The social studies section must include United States history." and substituting "The social studies section must include early American and United States history.".

Amendment No. 9 was adopted without objection.

Amendment No. 10

Representative Heflin offered the following amendment to CSSB 103:

Amend CSSB 103, Section 4 by adding new subsections (l) and (m) to read as follows:

"(l) No entity that holds a contract or subcontract for the statewide academic skills assessment instruments in this state shall disclose secure test materials to unauthorized entities, including developers of textbooks. As a precondition to entering into any contract or subcontract for such an assessment instrument, the entity seeking such contract shall certify to this state that it has not disclosed, and will not disclose, secure test materials to unauthorized entities, including developers of textbooks.

(m) No entity that holds a contract or subcontract for the statewide academic skills assessment instruments in this state shall, during the term of such contract, engage in written or publicly broadcast advertising of that contract in connection with promoting its textbooks, or those of any affiliated corporation, partnership or subsidiary."

Amendment No. 10 was adopted without objection.

Amendment No. 11

Representative Luna offered the following amendment to CSSB 103:

Amend CSSB 103 as follows:

In SECTION 13 of the bill (House Committee Printing), amend Section 39.051 (b) on page 9, line 22, by inserting the following after "subchapter;" and renumbering the subsequent sections accordingly:

(9) any disparity between economically disadvantaged students and all other students in performance on assessment instruments administered under Subchapter B, Chapter 39;

Amendment No. 11 was adopted without objection.

Amendment No. 12

Representative Zbranek offered the following amendment to CSSB 103:

Amend CSSB 103 in SECTION 13 of the bill, in amended Subsection (d), Section 39.051, Education Code (House Committee Report, page 10, line 1), by inserting the following after the period:

In defining exemplary, recognized, and inacceptable performance for the indicators under Subsections (b) (2) and (3), the commissioner may not consider as a dropout or as a student who has failed to attend school a student whose failure to attend school results from:

(1) the student's expulsion under Section 37.007; and

(2) as applicable:

(A) adjudication as having engaged in delinquent conduct or conduct indicating a need for supervision, as defined by Section 51.03, Family Code; or

(B) conviction of and sentencing for an offense under the Penal Code.

Amendment No. 12 was adopted without objection.

MESSAGE FROM THE SENATE

A message from the senate was received at this time (see the addendum to the daily journal, Messages from the Senate, Message No. 4).

CSSB 103 - (consideration continued)

CSSB 103, as amended, was passed to third reading. (Yarbrough recorded voting yes; Alexander, Bosse, Cook, Counts, Y. Davis, Dutton, Ehrhardt, Flores, Giddings, Hawley, Hinojosa, Hodge, Homer, J. Jones, G. Lewis, McClendon, Naishtat, Puente, Salinas, Telford, S. Turner, Uher, and Uresti, no)

MAJOR STATE CALENDAR

SENATE BILLS

SECOND READING

The following bills were laid before the house and read second time:

CSSB 705 ON SECOND READING

(Swinford - House Sponsor)

CSSB 705, A bill to be entitled An Act relating to providing aid, support, and assistance to agriculture; establishing the agricultural technology program.

Amendment No. 1

Representative Swinford offered the following amendment to CSSB 705:

Amend CSSB 705 (House Committee Printing) as follows:

(1) Strike SECTION 1 of the bill and renumber the subsequent SECTIONS of the bill appropriately.

(2) In SECTION 4 of the bill (page 8, line 11 - page 9, line 12), strike added Section 47.001, Agriculture Code, and renumber added Sections 47.002 and 47.003, Agriculture Code, as Sections 47.001 and 47.002.

Amendment No. 1 was adopted without objection.

Amendment No. 2

Representative Swinford offered the following amendment to CSSB 705:

Amend CSSB 705 (House Committee Printing) by adding the following appropriately numbered SECTION to the bill and renumbering any subsequent SECTIONS appropriately:

SECTION _____. (a) Chapters 46, 47, 60, and 254, Agriculture Code, as added by this Act, each take effect only if a specific appropriation for the implementation and funding of the agricultural program created by the corresponding chapter is provided in HB 1 (General Appropriations Act), Acts of the 76th Legislature, Regular Session, 1999.

(b) If no specific appropriation for a chapter listed in Subsection (a) of this section is provided in HB 1 (General Appropriations Act), that chapter has no effect.

(c) A reference to the "commodity crisis manager" in the Agriculture Code refers to the commissioner of agriculture or an employee, designated by the commissioner.

Amendment No. 2 was adopted without objection.

Amendment No. 3

Representative Telford offered the following amendment to CSSB 705:

Amend CSSB 705 as follows:

Immediately following SECTION 4 of the bill (House Committee Report, page 10, between lines 8 and 9), insert the following appropriately numbered SECTIONS and renumber the subsequent SECTIONS of the bill accordingly:

SECTION ____. Subtitle D, Title 6, Agriculture Code, is amended by adding Chapter 182 to read as follows:

CHAPTER 182. SOUTHERN DAIRY COMPACT

Sec. 182.001. DEFINITIONS. In this chapter:

(1) "Compact" means the Southern Dairy Compact.

(2) "Compact commission" means the Southern Dairy Compact Commission established by Section 4, Article III, of the compact.

(3) "Delegate" means a member of the delegation from this state to the Southern Dairy Compact Commission as set forth in Section 4, Article III, of the compact.

Sec. 182.002. DELEGATES; QUALIFICATIONS. (a) The commissioner shall appoint one delegate to this state's delegation to the compact commission to serve at the pleasure of the commissioner. The commissioner may appoint the commodity crisis manager under Chapter 60 as the delegate under this subsection. If the commissioner appoints a person other than the commodity crisis manager as a delegate, the commissioner's appointee must be an employee of the department, preferably an employee with experience with milk marketing and stabilization. The delegate serving under this subsection shall serve as chair of the delegation from this state.

(b) The governor shall appoint four delegates to this state's delegation to the compact commission as follows:

(1) two delegates who must be dairy farmers engaged in the production of milk at the time of appointment or reappointment;

(2) one delegate who must be a dairy processor engaged in the production of milk at the time of appointment or reappointment; and

(3) one delegate who must be a consumer representative.

(c) Each delegate must be a resident and registered voter of this state.

(d) A delegate is not an officer of this state by virtue of holding the position of delegate.

Sec. 182.003. TERMS; REMOVAL; VACANCY. (a) Each delegate serves a term of four years.

(b) Each delegate shall serve from the date of appointment until a successor is appointed and qualified.

(c) An individual may not serve more than three consecutive terms as a delegate.

(d) A delegate may be removed for cause.

Sec. 182.004. EFFECTIVE DATE OF COMPACT; SUNSET PROVISION. (a) The compact shall become effective when:

(1) the governor has executed the compact in a form substantially similar to that contained in Section 182.005 on behalf of this state and has filed a verified copy of the compact with the secretary of state;

(2) the United States Congress has consented to the compact; and

(3) two or more of the other states named in Section 20, Article VIII, of the compact, have ratified the compact in a form substantially similar to that contained in Section 182.005.

(b) The governor shall take such action as may be necessary to complete the exchange of official documents between this state and any other state ratifying the compact.

(c) This state's delegation to the compact commission is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the state's delegation to the commission is abolished and this chapter expires September 1, 2003.

Sec. 182.005. COMPACT TO BE ENTERED; TEXT. Subject to Section 182.004, the Southern Dairy Compact is hereby entered into and enacted into law as follows:

ARTICLE I. STATEMENT OF PURPOSE, FINDINGS, AND

DECLARATION OF POLICY

Sec. 1. STATEMENT OF PURPOSE, FINDINGS, AND DECLARATION OF POLICY. The purpose of this compact is to recognize the interstate character of the southern dairy industry and the prerogative of the states under the United States Constitution to form an interstate commission for the southern region. The mission of the commission is to take such steps as are necessary to assure the continued viability of dairy farming in the South, and to assure consumers of an adequate, local supply of pure and wholesome milk.

The participating states find and declare that the dairy industry is an essential agricultural activity of the South. Dairy farms, and associated suppliers, marketers, processors, and retailers, are an integral component of the region's economy. Their ability to provide a stable, local supply of pure, wholesome milk is a matter of great importance to the health and welfare of the region.

The participating states further find that dairy farms are essential and they are an integral part of the region's rural communities. The farms preserve land for agricultural purposes and provide needed economic stimuli for rural communities.

By entering into this compact, the participating states affirm that their ability to regulate the price which southern dairy farmers receive for their product is essential to the public interest. Assurance of a fair and equitable price for dairy farmers ensures their ability to provide milk to the market and the vitality of the southern dairy industry, with all the associated benefits.

Recent dramatic price fluctuations, with a pronounced downward trend, threaten the viability and stability of the southern dairy region. Historically, individual state regulatory action had been an effective emergency remedy available to farmers confronting a distressed market. The federal order system, implemented by the Agricultural Marketing Agreement Act of 1937, establishes only minimum prices paid to producers for raw milk, without preempting the power of states to regulate milk prices above the minimum levels so established.

In today's regional dairy marketplace, cooperative, rather than individual state action, is needed to more effectively address the market disarray. Under

our constitutional system, properly authorized states acting cooperatively may exercise more power to regulate interstate commerce than they may assert individually without such authority. For this reason, the participating states invoke their authority to act in common agreement, with the consent of the United States Congress, under the compact clause of the United States Constitution.

In establishing their constitutional regulatory authority over the region's fluid milk market by this compact, the participating states declare their purpose that this compact neither displace the federal order system nor encourage the merging of federal orders. Specific provisions of the compact itself set forth this basic principle.

Designed as a flexible mechanism able to adjust to changes in a regulated marketplace, the compact also contains a contingency provision should the federal order system be discontinued. In that event, the interstate commission is authorized to regulate the marketplace in replacement of the order system. This contingent authority does not anticipate such a change, however, and should not be so construed. It is only provided should developments in the market other than establishment of this compact result in discontinuance of the order system.

ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION

Sec. 2. DEFINITIONS. For the purposes of this compact, and of any supplemental or concurring legislation enacted pursuant thereto, except as may be otherwise required by the context:

(1) "Class I milk" means milk disposed of in fluid form or as a fluid milk product, subject to further definition in accordance with the principles expressed in Subsection (b) of Section three.

(2) "Commission" means the Southern Dairy Compact Commission established by this compact.

(3) "Commission marketing order" means regulations adopted by the commission pursuant to Sections 9 and 10 of this compact in place of a terminated federal marketing order or state dairy regulation. Such order may apply throughout the region or in any part or parts thereof as defined in the regulations of the commission. Such order may establish minimum prices for any or all classes of milk.

(4) "Compact" means this interstate compact.

(5) "Compact over-order price" means a minimum price required to be paid to producers for Class I milk established by the commission in regulations adopted pursuant to Sections 9 and 10 of this compact, which is above the price established in federal marketing orders or by state farm price regulation in the regulated area. Such price may apply throughout the region or in any part or parts thereof as defined in the regulations of the commission.

(6) "Milk" means the lacteal secretion of cows and includes all skim, butterfat, or other constituents obtained from separation or any other process. The term is used in its broadest sense and may be further defined by the commission for regulatory purposes.

(7) "Partially regulated plant" means a milk plant not located in a regulated area but having Class I distribution within such area. Commission

regulations may exempt plants having such distribution or receipts in amounts less than the limits defined therein.

(8) "Participating state" means a state which has become a party to this compact by the enactment of concurring legislation.

(9) "Pool plant" means any milk plant located in a regulated area.

(10) "Region" means the territorial limits of the states which are parties to this compact.

(11) "Regulated area" means any area within the region governed by and defined in regulations establishing a compact over-order price or commission marketing order.

(12) "State dairy regulation" means any state regulation of dairy prices, and associated assessments, whether by statute, marketing order, or otherwise.

Sec. 3. RULES OF CONSTRUCTION. (a) This compact shall not be construed to displace existing federal milk marketing orders or state dairy regulation in the region but to supplement them. In the event some or all federal orders in the region are discontinued, the compact shall be construed to provide the commission the option to replace them with one or more commission marketing orders pursuant to this compact.

(b) This compact shall be construed liberally in order to achieve the purposes and intent enunciated in Section 1. It is the intent of this compact to establish a basic structure by which the commission may achieve those purposes through the application, adaptation, and development of the regulatory techniques historically associated with milk marketing and to afford the commission broad flexibility to devise regulatory mechanisms to achieve the purposes of this compact. In accordance with this intent, the technical terms which are associated with market order regulation and which have acquired commonly understood general meanings are not defined herein, but the commission may further define the terms used in this compact and develop additional concepts and define additional terms as it may find appropriate to achieve its purposes.

ARTICLE III. COMMISSION ESTABLISHED

Sec. 4. COMMISSION ESTABLISHED. There is hereby created a commission to administer the compact, composed of delegations from each state in the region. The commission shall be known as the Southern Dairy Compact Commission. A delegation shall include not less than three nor more than five persons. Each delegation shall include at least one dairy farmer who is engaged in the production of milk at the time of appointment or reappointment, and one consumer representative. Delegation members shall be residents and voters of, and subject to such confirmation process as is provided for in, the appointing state. Delegation members shall serve no more than three consecutive terms with no single term of more than four years and be subject to removal for cause. In all other respects, delegation members shall serve in accordance with the laws of the state represented. The compensation, if any, of the members of a state delegation shall be determined and paid by each state, but their expenses shall be paid by the commission.

Sec. 5. VOTING REQUIREMENTS. All actions taken by the

commission, except for the establishment or termination of an over-order price or commission marketing order, and the adoption, amendment, or rescission of the commission's bylaws shall be by majority vote of the delegations present. Each state delegation shall be entitled to one vote in the conduct of the commission's affairs. Establishment or termination of an over-order price or commission marketing order shall require at least a two-thirds vote of the delegations present. The establishment of a regulated area which covers all or part of a participating state shall require also the affirmative vote of that state's delegation. A majority of the delegations from the participating states shall constitute a quorum for the conduct of the commission's business.

Sec. 6. ADMINISTRATION AND MANAGEMENT. (a) The commission shall elect annually from among the members of the participating state delegations a chairperson, a vice-chairperson, and a treasurer. The commission shall appoint an executive director and fix his or her duties and compensation. The executive director shall serve at the pleasure of the commission, and, together with the treasurer, shall be bonded in an amount determined by the commission. The commission may establish through its bylaws an executive committee composed of one member elected by each delegation.

(b) The commission shall adopt bylaws for the conduct of its business by a two-thirds vote and shall have the power by the same vote to amend and rescind these bylaws. The commission shall publish its bylaws in convenient form with the appropriate agency or officer in each of the participating states. The bylaws shall provide for appropriate notice to the delegations of all commission meetings and hearings and of the business to be transacted at such meetings or hearings. Notice also shall be given to other agencies or officers of participating states as provided by the laws of those states.

(c) The commission shall file an annual report with the secretary of agriculture of the United States, and with each of the participating states by submitting copies to the governor, both houses of the legislature, and the head of the state department having responsibilities for agriculture.

(d) In addition to the powers and duties elsewhere prescribed in this compact, the commission shall have the power:

(1) to sue and be sued in any state or federal court;

(2) to have a seal and alter the same at pleasure;

(3) to acquire, hold, and dispose of real and personal property by gift, purchase, lease, license, or other similar manner, for its corporate purposes;

(4) to borrow money and to issue notes, to provide for the rights of the holders thereof and to pledge the revenue of the commission as security therefore, subject to the provisions of Section 18 of this compact;

(5) to appoint such officers, agents, and employees as it may deem necessary, prescribe their powers, duties, and qualifications; and

(6) to create and abolish such offices, employments, and positions as it deems necessary for the purposes of the compact and provide for the removal, term, tenure, compensation, fringe benefits, pension, and retirement rights of its officers and employees. The commission may also retain personal services on a contract basis.

Sec. 7. RULEMAKING POWER. In addition to the power to promulgate a compact over-order price or commission marketing orders as provided by this compact, the commission is further empowered to make and enforce such additional rules and regulations as it deems necessary to implement any provisions of this compact, or to effectuate in any other respect the purposes of this compact.

ARTICLE IV. POWERS OF THE COMMISSION

Sec. 8. POWERS TO PROMOTE REGULATORY UNIFORMITY, SIMPLICITY, AND INTERSTATE COOPERATION. The commission is hereby empowered to:

(1) Investigate or provide for investigations or research projects designed to review the existing laws and regulations of the participating states, to consider their administration and costs, to measure their impact on the production and marketing of milk and their effects on the shipment of milk and milk products within the region.

(2) Study and recommend to the participating states joint or cooperative programs for the administration of the dairy marketing laws and regulations and to prepare estimates of cost savings and benefits of such programs.

(3) Encourage the harmonious relationships between the various elements in the industry for the solution of their material problems. Conduct symposia or conferences designed to improve industry relations or a better understanding of problems.

(4) Prepare and release periodic reports on activities and results of the commission's efforts to the participating states.

(5) Review the existing marketing system for milk and milk products and recommend changes in the existing structure for assembly and distribution of milk which may assist, improve, or promote more efficient assembly and distribution of milk.

(6) Investigate costs and charges for producing, hauling, handling, processing, distributing, selling, and for all other services performed with respect to milk.

(7) Examine current economic forces affecting producers, probable trends in production and consumption, the level of dairy farm prices in relation to costs, the financial conditions of dairy farmers, and the need for an emergency order to relieve critical conditions on dairy farms.

Sec. 9. EQUITABLE FARM PRICES. (a) The powers granted in this section and Section 10 shall apply only to the establishment of a compact over-order price, so long as federal milk marketing orders remain in effect in the region. In the event that any or all such orders are terminated, this article shall authorize the commission to establish one or more commission marketing orders, as herein provided, in the region or parts thereof as defined in the order.

(b) A compact over-order price established pursuant to this section shall apply only to Class I milk. Such compact over-order price shall not exceed $1.50 per gallon at Atlanta, Georgia; however, this compact over-order price shall be adjusted upward or downward at other locations in the region to reflect differences in minimum federal order prices. Beginning in 1990, and

using that year as a base, the foregoing $1.50 per gallon maximum shall be adjusted annually by the rate of change in the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department of Labor. For purposes of the pooling and equalization of an over-order price, the value of milk used in other use classifications shall be calculated at the appropriate class price established pursuant to the applicable federal order or state dairy regulation, and the value of unregulated milk shall be calculated in relation to the nearest prevailing class price in accordance with and subject to such adjustments as the commission may prescribe in regulations.

(c) A commission marketing order shall apply to all classes and uses of milk.

(d) The commission is hereby empowered to establish a compact over-order price for milk to be paid by pool plants and partially regulated plants. The commission is also empowered to establish a compact over-order price to be paid by all other handlers receiving milk from producers located in a regulated area. This price shall be established either as a compact over-order price or by one or more commission marketing orders. Whenever such a price has been established by either type of regulation, the legal obligation to pay such price shall be determined solely by the terms and purpose of the regulation without regard to the situs of the transfer of title, possession, or any other factors not related to the purposes of the regulation and this compact. Producer-handlers as defined in an applicable federal market order shall not be subject to a compact over-order price. The commission shall provide for similar treatment of producer-handlers under commission marketing orders.

(e) In determining the price, the commission shall consider the balance between production and consumption of milk and milk products in the regulated area, the costs of production including, but not limited to, the price of feed, the cost of labor, including the reasonable value of the producer's own labor and management, machinery expense, and interest expense, the prevailing price for milk outside the regulated area, the purchasing power of the public, and the price necessary to yield a reasonable return to the producer and distributor.

(f) When establishing a compact over-order price, the commission shall take such other action as is necessary and feasible to help ensure that the over-order price does not cause or compensate producers so as to generate local production of milk in excess of those quantities necessary to assure consumers of an adequate supply for fluid purposes.

(g) The commission shall whenever possible enter into agreements with state or federal agencies for exchange of information or services for the purpose of reducing regulatory burden and cost of administering the compact. The commission may reimburse other agencies for the reasonable cost of providing these services.

Sec. 10. OPTIONAL PROVISIONS FOR PRICING ORDER. Regulations establishing a compact over-order price or a commission marketing order may contain, but shall not be limited to, any of the following:

(1) provisions classifying milk in accordance with the form in which or purpose for which it is used, or creating a flat pricing program;

(2) with respect to a commission marketing order only, provisions establishing or providing a method for establishing separate minimum prices for each use classification prescribed by the commission, or a single minimum price for milk purchased from producers or associations of producers;

(3) with respect to an over-order minimum price, provisions establishing or providing a method for establishing such minimum price for Class I milk;

(4) provisions for establishing either an over-order price or a commission marketing order may make use of any reasonable method for establishing such price or prices including flat pricing and formula pricing. Provision may also be made for location adjustments, zone differentials, and for competitive credits with respect to regulated handlers who market outside the regulated area;

(5) provisions for the payment to all producers and associations of producers delivering milk to all handlers of uniform prices for all milk so delivered, irrespective of the uses made of such milk by the individual handler to whom it is delivered, or for the payment of producers delivering milk to the same handler of uniform prices for all milk delivered by them;

(A) With respect to regulations establishing a compact over-order price, the commission may establish one equalization pool within the regulated area for the sole purpose of equalizing returns to producers throughout the regulated area.

(B) With respect to any commission marketing order, as defined in Section 2, Subdivision three, which replaces one or more terminated federal orders or state dairy regulation, the marketing area of now separate state or federal orders shall not be merged without the affirmative consent of each state, voting through its delegation, which is partly or wholly included within any such new marketing area.

(6) provisions requiring persons who bring Class I milk into the regulated area to make compensatory payments with respect to all such milk to the extent necessary to equalize the cost of milk purchased by handlers subject to a compact over-order price or commission marketing order. No such provisions shall discriminate against milk producers outside the regulated area. The provisions for compensatory payments may require payment of the difference between the Class I price required to be paid for such milk in the state of production by a federal milk marketing order or state dairy regulation and the Class I price established by the compact over-order price or commission marketing order;

(7) provisions specially governing the pricing and pooling of milk handled by partially regulated plants;

(8) provisions requiring that the account of any person regulated under the compact over-order price shall be adjusted for any payments made to or received by such persons with respect to a producer settlement fund of any federal or state milk marketing order or other state dairy regulation within the regulated area;

(9) provisions requiring the payment by handlers of an assessment to cover the costs of the administration and enforcement of such order pursuant to Article VII, Section 18(a);

(10) provisions for reimbursement to participants of the Women, Infants and Children Special Supplemental Food Program of the United States Child Nutrition Act of 1966;

(11) other provisions and requirements as the commission may find are necessary or appropriate to effectuate the purposes of this compact and to provide for the payment of fair and equitable minimum prices to producers.

ARTICLE V. RULEMAKING PROCEDURE

Sec. 11. RULEMAKING PROCEDURE. Before promulgation of any regulations establishing a compact over-order price or commission marketing order, including any provision with respect to milk supply under Subsection 9(f), or amendment thereof, as provided in Article IV, the commission shall conduct an informal rulemaking proceeding to provide interested persons with an opportunity to present data and views. Such rulemaking proceeding shall be governed by Section 4 of the federal Administrative Procedure Act, as amended (5 U.S.C. Section 553). In addition, the commission shall, to the extent practicable, publish notice of rulemaking proceedings in the official register of each participating state. Before the initial adoption of regulations establishing a compact over-order price or a commission marketing order and thereafter before any amendment with regard to prices or assessments, the commission shall hold a public hearing. The commission may commence a rulemaking proceeding on its own initiative or may in its sole discretion act upon the petition of any person including individual milk producers, any organization of milk producers or handlers, general farm organizations, consumer or public interest groups, and local, state, or federal officials.

Sec. 12. FINDINGS AND REFERENDUM. In addition to the concise general statement of basis and purpose required by Section 4(b) of the federal Administrative Procedure Act, as amended (5 U.S.C. Section 553 (c)), the commission shall make findings of fact with respect to:

(1) whether the public interest will be served by the establishment of minimum milk prices to dairy farmers under Article IV;

(2) what level of prices that will assure that producers receive a price sufficient to cover their costs of production and will elicit an adequate supply of milk for the inhabitants of the regulated area and for manufacturing purposes;

(3) whether the major provisions of the order, other than those fixing minimum milk prices, are in the public interest and are reasonably designed to achieve the purposes of the order;

(4) whether the terms of the proposed regional order or amendment are approved by producers as provided in Section 13.

Sec. 13. PRODUCER REFERENDUM. (a) For the purpose of ascertaining whether the issuance or amendment of regulations establishing a compact over-order price or a commission marketing order, including any provision with respect to milk supply under Section 9(f) of this compact, is approved by producers, the commission shall conduct a referendum among producers. The referendum shall be held in a timely manner, as determined by regulation of the commission. The terms and conditions of the proposed order or amendment shall be described by the commission in the ballot used in the

conduct of the referendum, but the nature, content, or extent of such description shall not be a basis for attacking the legality of the order or any action relating thereto.

(b) An order or amendment shall be deemed approved by producers if the commission determines that it is approved by at least two-thirds of the voting producers who, during a representative period determined by the commission, have been engaged in the production of milk, the price of which would be regulated under the proposed order or amendment.

(c) For purposes of any referendum, the commission shall consider the approval or disapproval by any cooperative association of producers, qualified under the provisions of the Act of Congress of February 18, 1922, as amended, known as the Capper-Volstead Act, bona fide engaged in marketing milk, or in rendering services for or advancing the interests of producers of such commodity, as the approval or disapproval of the producers who are members or stockholders in, or under contract with, such cooperative association of producers, except as provided in Subdivision (1) hereof and subject to the provisions of Subdivisions (2) through (5) hereof.

(1) No cooperative which has been formed to act as a common marketing agency for both cooperatives and individual producers shall be qualified to block vote for either.

(2) Any cooperative which is qualified to block vote shall, before submitting its approval or disapproval in any referendum, give prior written notice to each of its members as to whether and how it intends to cast its vote. The notice shall be given in a timely manner as established and in the form prescribed by the commission.

(3) Any producer may obtain a ballot from the commission in order to register approval or disapproval of the proposed order.

(4) A producer who is a member of a cooperative which has provided notice of its intent to approve or not to approve a proposed order, and who obtains a ballot and with such ballot expresses his approval or disapproval of the proposed order, shall notify the commission as to the name of the cooperative of which he or she is a member, and the commission shall remove such producer's name from the list certified by such cooperative with its corporate vote.

(5) In order to ensure that all milk producers are informed regarding a proposed order, the commission shall notify all milk producers that an order is being considered and that each producer may register his approval or disapproval with the commission either directly or through his or her cooperative.

Sec. 14. TERMINATION OF OVER-ORDER PRICE OR MARKETING ORDER. (a) The commission shall terminate any regulations establishing an over-order price or commission marketing order issued under this article whenever it finds that such order or price obstructs or does not tend to effectuate the declared policy of this compact.

(b) The commission shall terminate any regulations establishing an over-order price or a commission marketing order issued under this article whenever it finds that such termination is favored by a majority of the producers who, during a representative period determined by the commission,

have been engaged in the production of milk the price of which is regulated by such order; but such termination shall be effective only if announced on or before such date as may be specified in such marketing agreement or order.

(c) The termination or suspension of any order or provision thereof shall not be considered an order within the meaning of this article and shall require no hearing but shall comply with the requirements for informal rulemaking prescribed by Section 4 of the federal Administrative Procedure Act, as amended (5 U.S.C. Section 553).

ARTICLE VI. ENFORCEMENT

Sec. 15. RECORDS, REPORTS, ACCESS TO PREMISES. (a) The commission may by rule and regulation prescribe recordkeeping and reporting requirements for all regulated persons. For purposes of the administration and enforcement of this compact, the commission is authorized to examine the books and records of any regulated person relating to his or her milk business, and for that purpose, the commission's properly designated officers, employees, or agents shall have full access during normal business hours to the premises and records of all regulated persons.

(b) Information furnished to or acquired by commission officers, employees, or its agents pursuant to this section shall be confidential and not subject to disclosure except to the extent that the commission deems disclosure to be necessary in any administrative or judicial proceeding involving the administration or enforcement of this compact, an over-order price, a compact marketing order, or other regulations of the commission. The commission may promulgate regulations further defining the confidentiality of information pursuant to this section. Nothing in this section shall be deemed to prohibit (i) the issuance of general statements based upon the reports of a number of handlers which do not identify the information furnished by any person, or (ii) the publication by direction of the commission of the name of any person violating any regulation of the commission, together with a statement of the particular provisions violated by such person.

(c) No officer, employee, or agent of the commission shall intentionally disclose information, by inference or otherwise, which is made confidential pursuant to this section. Any person violating the provisions of this section shall, upon conviction, be subject to a fine of not more than $1,000 or to imprisonment for not more than one year, or both, and shall be removed from office. The commission shall refer any allegation of a violation of this section to the appropriate state enforcement authority or the United States Attorney.

Sec. 16. SUBPOENA, HEARINGS, AND JUDICIAL REVIEW. (a) The commission is hereby authorized and empowered by its members and its properly designated officers to administer oaths and issue subpoenas throughout all signatory states to compel the attendance of witnesses and the giving of testimony and the production of other evidence.

(b) Any handler subject to an order may file a written petition with the commission stating that any such order or any provision of any such order or any obligation imposed in connection therewith is not in accordance with law and praying for a modification thereof or to be exempted therefrom. He

shall thereupon be given an opportunity for a hearing upon such petition, in accordance with regulations made by the commission. After such hearing, the commission shall make a ruling upon the prayer of such petition which shall be final, if in accordance with law.

(c) The district courts of the United States in any district in which such handler is an inhabitant, or has his principal place of business, are hereby vested with jurisdiction to review such ruling, provided a complaint for that purpose is filed within 30 days from the date of the entry of such ruling. Service of process in such proceedings may be had upon the commission by delivering to it a copy of the complaint. If the court determines that such ruling is not in accordance with law, it shall remand such proceedings to the commission with directions either (1) to make such ruling as the court shall determine to be in accordance with law, or (2) to take such further proceedings as, in its opinion, the law requires. The pendency of proceedings instituted pursuant to this subsection shall not impede, hinder, or delay the commission from obtaining relief pursuant to Section 17. Any proceedings brought pursuant to Section 17, except where brought by way of counterclaim in proceedings instituted pursuant to this section, shall abate whenever a final decree has been rendered in proceedings between the same parties, and covering the same subject matter, instituted pursuant to this section.

Sec. 17. ENFORCEMENT WITH RESPECT TO HANDLERS. (a) Any violation by a handler of the provisions of regulations establishing an over-order price or a commission marketing order, or other regulations adopted pursuant to this compact, shall:

(1) Constitute a violation of the laws of each of the signatory states. Such violation shall render the violator subject to a civil penalty in an amount as may be prescribed by the laws of each of the participating states, recoverable in any state or federal court of competent jurisdiction. Each day such violation continues shall constitute a separate violation.

(2) Constitute grounds for the revocation of a license or permit to engage in the milk business under the applicable laws of the participating states.

(b) With respect to handlers, the commission shall enforce the provisions of this compact, regulations establishing an over-order price, a commission marketing order, or other regulations adopted hereunder by:

(1) commencing an action for legal or equitable relief brought in the name of the commission in any state or federal court of competent jurisdiction; or

(2) referral to the state agency for enforcement by judicial or administrative remedy with the agreement of the appropriate state agency of a participating state.

(c) With respect to handlers, the commission may bring an action for injunction to enforce the provisions of this compact or the order or regulations adopted thereunder without being compelled to allege or prove that an adequate remedy of law does not exist.

ARTICLE VII. FINANCE

Sec. 18. FINANCE OF START-UP AND REGULAR COSTS. (a) To provide for its start-up costs, the commission may borrow money pursuant to its general power under Section 6, Subdivision (d), Paragraph 4. In order to

finance the costs of administration and enforcement of this compact, including payback of start-up costs, the commission is hereby empowered to collect an assessment from each handler who purchases milk from producers within the region. If imposed, this assessment shall be collected on a monthly basis for up to one year from the date the commission convenes, in an amount not to exceed $.015 per hundredweight of milk purchased from producers during the period of the assessment. The initial assessment may apply to the projected purchases of handlers for the two-month period following the date the commission convenes. In addition, if regulations establishing an over-order price or a compact marketing order are adopted, they may include an assessment for the specific purpose of their administration. These regulations shall provide for establishment of a reserve for the commission's ongoing operating expenses.

(b) The commission shall not pledge the credit of any participating state or of the United States. Notes issued by the commission and all other financial obligations incurred by it shall be its sole responsibility and no participating state or the United States shall be liable therefor.

Sec. 19. AUDIT AND ACCOUNTS. (a) The commission shall keep accurate accounts of all receipts and disbursements, which shall be subject to the audit and accounting procedures established under its rules. In addition, all receipts and disbursements of funds handled by the commission shall be audited yearly by a qualified public accountant and the report of the audit shall be included in and become part of the annual report of the commission.

(b) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the participating states and by any persons authorized by the commission.

(c) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any participating state or of the United States.

ARTICLE VIII. ENTRY INTO FORCE; ADDITIONAL

MEMBERS AND WITHDRAWAL

Sec. 20. ENTRY INTO FORCE; ADDITIONAL MEMBERS. The compact shall enter into force effective when enacted into law by any three states of the group of states composed of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia and when the consent of the United States Congress has been obtained.

Sec. 21. WITHDRAWAL FROM COMPACT. Any participating state may withdraw from this compact by enacting a statute repealing the same, but no such withdrawal shall take effect until one year after notice in writing of the withdrawal is given to the commission and the governors of all other participating states. No withdrawal shall affect any liability already incurred by or chargeable to a participating state before the time of such withdrawal.

Sec. 22. SEVERABILITY. If any part or provision of this compact is adjudged invalid by any court, such judgment shall be confined in its operation to the part or provision directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this compact. In the event Congress consents

to this compact subject to conditions, said conditions shall not impair the validity of this compact when said conditions are accepted by three or more compacting states. A compacting state may accept the conditions of Congress by implementation of this compact.

SECTION ____. Section 12.020(c), Agriculture Code, is amended to read as follows:

(c) The provisions of this code subject to this section and the applicable penalty amounts are as follows:

Provision Maximum Penalty

Chapters 13, 14, 18, 61, 94, 95

101, 102, 103, 121, 125, 132,

[and ] 134, and 182 $500.

Subchapter B, Chapter 71

Chapter 19 $2,000.

Chapters 75 and 76

Subchapters A and C, Chapter 71

Chapters 72, 73, and 74 $5,000.

(Speaker in the chair)

Representative Garcia raised a point of order against further consideration of Amendment No. 3 to CSSB 705 under Rule 11, Sections 2 and 3 of the House Rules on the grounds that it is not germane to the bill and it changes the original purpose of the bill.

The point of order was withdrawn.

Amendment No. 3 was adopted without objection. (Danburg and Howard recorded voting no)

SB 705, as amended, was passed to third reading. (Heflin recorded voting no)

SB 1287 ON SECOND READING

(Oliveira, Carter, Bailey, Hill, Ehrhardt, et al. House Sponsors)

SB 1287, A bill to be entitled An Act relating to housing loans to lowincome families.

Amendment No. 1

Representatives Carter and Oliveira offered the following amendment to SB 1287:

Amend SB 1287 as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(10) In SECTION 1 of the bill, strike added Section 2306.759(1), Government Code (House committee report, page 6, lines 1517) and substitute the following:

(1) prepare a report that evaluates the repayment history of ownerbuilders who receive loans under this subchapter, including for each ownerbuilder:

(A) the ownerbuilder's income;

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

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

(D) the identity of the ownerbuilder housing program through which the housing was constructed; and

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

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

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

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

Amendment No. 1 was adopted without objection.

SB 1287, as amended, was passed to third reading.

SB 382 ON SECOND READING

(Smithee House Sponsor)

SB 382, A bill to be entitled An Act relating to the requirements for state agency orders adopting rules and substantial compliance with rulemaking requirements.

Amendment No. 1

Representative Smithee offered the following amendment to SB 382:

Amend SB 382 by adding an appropriately numbered section to read as follows:

SECTION ____. Subchapter A, Chapter 2001, Government Code, is amended by adding Section 2001.006 to read as follows:

Sec. 2001.006. ACTIONS PREPARATORY TO IMPLEMENTATION OF STATUTE OR RULE. (a) In this section:

(1) "State agency" means a department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of state government. The term includes an institution of higher education as defined by Section 61.003, Education Code, and includes those entities excluded from the general definition of "state agency" under Section 2001.003(7).

(2) Legislation is considered to have "become law" if it has been passed by the legislature and:

(A) the governor has approved it;

(B) the governor has filed it with the secretary of state, having neither approved nor disapproved it;

(C) the time for gubernatorial action has expired under Section 14, Article IV, Texas Constitution, the governor having neither approved nor disapproved it; or

(D) the governor has disapproved it and the legislature has overridden the governor's disapproval in accordance with Section 14, Article IV, Texas Constitution.

(b) In preparation for the implementation of legislation that has become law but has not taken effect, a state agency may adopt a rule or take other

administrative action that the agency determines is necessary or appropriate and that the agency would have been authorized to take had the legislation been in effect at the time of the action.

(c) In preparation for the implementation of a rule that has been finally adopted by a state agency but has not taken effect, a state agency may take administrative action that the agency determines is necessary or appropriate and that the agency would have been authorized to take had the rule been in effect at the time of the action.

(d) A rule adopted under Subsection (b) may not take effect earlier than the legislation being implemented takes effect. Administrative action taken under Subsection (b) or (c) may not result in implementation or enforcement of the applicable legislation or rule before the legislation or rule takes effect.

Amendment No. 1 was adopted without objection.

Amendment No. 2

Representative Dukes offered the following amendment to SB 382:

Amend SB 382 by inserting the following appropriately numbered SECTIONS and renumbering subsequent SECTIONS accordingly:

SECTION ____. Section 2006.001, Government Code, is amended to read as follows:

Sec. 2006.001. DEFINITIONS. In this subchapter:

(1) "Microbusiness" means a legal entity, including a corporation, partnership, or sole proprietorship, that:

(A) is formed for the purpose of making a profit;

(B) is independently owned and operated; and

(C) has not more than 20 employees.

(2) "Small business" means a legal entity, including a corporation, partnership, or sole proprietorship, that:

(A) is formed for the purpose of making a profit;

(B) is independently owned and operated; and

(C) has fewer than 100 employees or less than $1 million in annual gross receipts.

(3) [(2) ] "State agency" means a department, board, bureau, commission, division, office, council, or other agency of the state.

SECTION ____. Sections 2006.002(a) and (f), Government Code, are amended to read as follows:

(a) A state agency considering adoption of a rule that would have an adverse economic effect on small businesses or microbusinesses shall reduce that effect if doing so is legal and feasible considering the purpose of the statute under which the rule is to be adopted.

(f) To reduce an adverse effect of rules on microbusinesses, a state agency shall [may ] adopt provisions concerning microbusinesses that are uniform with [similar to ] those outlined in Subsections (b)(d) [Subsection (b) ] for small businesses.

Amendment No. 2 was adopted without objection.

SB 382, as amended, was passed to third reading.

CSSB 560 ON SECOND READING

(Van de Putte and Goodman - House Sponsors)

CSSB 560, A bill to be entitled An Act relating to the regulation of telecommunications utilities by the Public Utility Commission of Texas and the provision of telecommunications services.

(Eiland in the chair)

Amendment No. 1

Representative Goodman offered the following amendment to CSSB 560:

Amend CSSB 560 (House Committee Report) as follows:

(1) In Section 54.102(e), Utilities Code, as added by SECTION 15 of the bill (page 14, lines 8-10), strike "customer-specific contracts so long as the affiliated company that is the incumbent local exchange company may not provide customer-specific contracts" and substitute "any service listed in Sections 58.051(a)(1)-(4) or Sections 58.151(1)-(4), or any subset of those services, in a manner that results in a customer-specific contract so long as the affiliated company that is the incumbent local exchange company may not provide those services or subsets of services in a manner that results in a customer-specific contract".

(2) In Section 55.015(a), Utilities Code, as added by SECTION 19 of the bill (page 24, line 27), strike "discontinuing local exchange" and substitute "discontinuing basic local exchange".

(3) In Section 58.003(a), Utilities Code, as added by SECTION 28 of the bill (page 36, lines 19 and 20), strike "a service or an appropriate subset of a service listed" and substitute "a service, or an appropriate subset of a service, listed".

Amendment No. 1 was adopted without objection.

Amendment No. 2

Representative Goodman offered the following amendment to CSSB 560:

Amend CSSB 560 by striking SECTION 47 of the bill (page 59, line 9, through page 60, line 7), and renumbering subsequent SECTIONS accordingly.

Amendment No. 2 was adopted without objection.

Amendment No. 3

Representative Burnam offered the following amendment to CSSB 560:

Amend CSSB 560 as follows:

On page 11, insert the following at the end of line 1:

"Within six months following each reduction in intrastate switched access rates under this title, each telecommunications utility subject to this section shall file a sworn affidavit stating that the per minute rates it charges under its basic rate schedule have been reduced to reflect the per minute reduction in switched access rates."

Amendment No. 4

Representative Burnam offered the following amendment to Amendment No. 3:

Amend the Burnam amendment to CSSB 560 (page 3 of the packet) by striking the text of the amendment and substituting the following:

Amend CSSB 560 by striking Subsection (b), Section 52.112, Utilities Code, as added by SECTION 12 of the bill (House Committee Report page 10, line 25 through page 11, line 2), and substituting the following:

(b) Within six months following each reduction in intrastate switched access rates under this title, each telecommunications utility subject to this section shall file with the commission a sworn affidavit confirming that the utility has reduced the per minute rates it charges under its basic rate schedule to reflect the per minute reduction in intrastate switched access rates.

Amendment No. 4 was adopted without objection.

Amendment No. 3, as amended, was adopted.

Amendment No. 5

Representative S. Turner offered the following amendment to CSSB 560:

Amend CSSB 560, Section 55.013 (c)(1), page 22, line 12 by striking ", at the request and expense of a long distance service provider,"

Amendment No. 6

Representative S. Turner offered the following amendment to Amendment No. 5:

Amend the Turner amendment to CSSB 560 (page 4 of the packet) by adding a new item to the amendment to read as follows:

( ) In Section 55.013, Utilities Code, as added by SECTION 17 of the bill (House Committee Report), page 23, between lines 1 and 2), insert a new Subsection (e) to read as follows:

(e) A provider of basic local exchange telecommunications service shall comply with the requirements of this section not later than March 1, 2000.

Amendment No. 6 was adopted without objection.

Amendment No. 5, as amended, was adopted without objection.

Amendment No. 7

Representative Naishtat offered the following amendment to CSSB 560:

Amend CSSB 560 (House committee report) as follows:

(1) Strike Section 21 of the bill (page 30, line 16, through page 31, line 11) and substitute:

SECTION 21. Section 56.021, Utilities Code, as amended by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The commission shall adopt and enforce rules requiring local exchange companies to establish a universal service fund to:

(1) assist telecommunications providers [local exchange companies ] in providing basic local telecommunications service at reasonable rates in high cost rural areas;

(2) reimburse telecommunications providers [local exchange companies ] for revenue lost by providing tel-assistance service under Subchapter C;

(3) reimburse the telecommunications carrier that provides the statewide telecommunications relay access service under Subchapter D;

(4) finance the specialized telecommunications [device ] assistance program established under Subchapter E; [and ]

(5) reimburse the department, the Texas Commission for the Deaf and Hard of Hearing, and the commission for costs incurred in implementing this chapter and Chapter 57; and

(6) reimburse a telecommunications carrier providing lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as amended.

(2) Between Sections 27 and 28 of the bill (page 36, between lines 14 and 15) insert:

SECTION 28. Subchapter D, Chapter 56, Utilities Code, is amended by adding Section 56.1085 to read as follows:

Sec. 56.1085. SPECIAL FEATURES FOR RELAY ACCESS SERVICE. (a) The commission may contract for a special feature for the state's telecommunications relay access service if the commission determines:

(1) the feature will benefit the communication of persons with an impairment of hearing or speech;

(2) installation of the feature will be of benefit to the state; and

(3) the feature will make the relay access service available to a greater number of users.

(b) If the carrier selected to provide the telecommunications relay access service under Section 56.108 is unable to provide the special feature at the best value to the state, the commission may make a written award of a contract for a carrier to provide the special feature to the telecommunications carrier whose proposal is most advantageous to the state, considering:

(1) the factors provided by Section 56.108(b); and

(2) the past performance, demonstrated capability, and experience of the carrier.

(c) The commission shall consider each proposal in a manner that does not disclose the contents of the proposal to a telecommunications carrier making a competing proposal.

(d) The commission's evaluation of a telecommunications carrier's proposal shall include the considerations provided by Section 56.108(d).

SECTION 29. Section 56.109(a), Utilities Code, is amended to read as follows:

(a) The telecommunications carrier selected to provide the telecommunications relay access service under Section 56.108 or the carrier selected to provide a special feature for [that provides ] the telecommunications relay access service under Section 56.1085 shall be compensated at rates and on terms provided by the carrier's contract with the commission.

SECTION 30. Subsection (a), Section 56.110, Utilities Code, as amended by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

(a) An advisory committee to assist the commission in administering this subchapter is composed of the following persons appointed by the commission:

(1) two persons with disabilities that impair the ability to effectively access the telephone network other than disabilities described by Subdivisions (2)-(7);

(2) one deaf person recommended by the Texas Deaf Caucus;

(3) [(2) ] one deaf person recommended by the Texas Association of the Deaf;

(4) [(3) ] one person with a hearing impairment recommended by Self-Help for the Hard of Hearing;

(5) [(4) ] one person with a hearing impairment recommended by the American Association of Retired Persons;

(6) [(5) ] one deaf and blind person recommended by the Texas Deaf/Blind Association;

(7) [(6) ] one person with a speech impairment and one person with a speech and hearing impairment recommended by the Coalition of Texans with Disabilities;

(8) [(7) ] two representatives of telecommunications utilities, one representing a nonlocal exchange utility and one representing a local exchange company, chosen from a list of candidates provided by the Texas Telephone Association;

(9) [(8) ] two persons, at least one of whom is deaf, with experience in providing relay services recommended by the Texas Commission for the Deaf and Hard of Hearing; and

(10) [(9) ] two public members recommended by organizations representing consumers of telecommunications services.

SECTION 31. Section 56.111, Utilities Code, as amended by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

Sec. 56.111. ADVISORY COMMITTEE DUTIES. The advisory committee shall:

(1) monitor the establishment, administration, and promotion of the statewide telecommunications relay access service;

(2) advise the commission in pursuing a service that meets the needs of persons with an impairment of hearing or speech in communicating with other telecommunications services users; and

(3) advise the commission and the Texas Commission for the Deaf and Hard of Hearing, at the request of either commission, regarding any issue related to the specialized telecommunications [device ] assistance program established under Subchapter E, including:

(A) devices or services suitable to meet the needs of persons with disabilities [the hearing-impaired and speech-impaired ] in communicating with other users of telecommunications services; and

(B) oversight and administration of the program.

SECTION 32. The heading to Subchapter E, Chapter 56, Utilities Code, as added by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

SUBCHAPTER E. SPECIALIZED TELECOMMUNICATIONS [DEVICE ]

ASSISTANCE PROGRAM

SECTION 33. Sections 56.151 through 56.154, Utilities Code, as added by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, are amended to read as follows:

Sec. 56.151. SPECIALIZED TELECOMMUNICATIONS [DEVICE ] ASSISTANCE PROGRAM. The commission and the Texas Commission for the Deaf and Hard of Hearing by rule shall establish a specialized telecommunications assistance program to provide financial assistance to [certain ] individuals with disabilities that impair the individuals' ability to effectively access the telephone network [who are deaf or have an impairment of hearing or speech ] to enable the individuals to purchase specialized equipment or services to provide telephone network access that is functionally equivalent to that enjoyed by individuals without disabilities [an impairment of hearing or speech ]. The agencies may adopt joint rules that identify devices and services eligible for vouchers under the program.

Sec. 56.152. ELIGIBILITY. The Texas Commission for the Deaf and Hard of Hearing by rule shall prescribe eligibility standards for individuals, including deaf individuals and individuals who have an impairment of hearing or speech, to receive an assistance voucher under the program. To be eligible, an individual must be a resident of this state who has access to a telephone line in the individual's home or place of business.

Sec. 56.153. VOUCHERS. (a) The Texas Commission for the Deaf and Hard of Hearing shall determine a reasonable price for a basic specialized telecommunications device or basic specialized services to provide telephone network access from a home or business [for the deaf (TDD or TTY) ] and distribute to each eligible applicant a voucher that guarantees payment of that amount to a distributor of new specialized telecommunications devices described by Section 56.151 or to a provider of services described by that section. The Texas Commission for the Deaf and Hard of Hearing may issue a voucher for a service only if the service is less expensive than a device eligible for a voucher under the program to meet the same need.

(b) A voucher must have the value printed on its face. The individual exchanging a voucher for the purchase of a specialized telecommunications device or service is responsible for payment of the difference between the voucher's value and the price of the device or service.

(c) The commission and the Texas Commission for the Deaf and Hard of Hearing by rule shall provide that a distributor of devices or a provider of services will receive not more than the full price of the device or service [a specialized telecommunications device ] if the recipient of a voucher exchanges the voucher for a device or service that the distributor or provider sells for less than the voucher's value.

(d) An individual who has exchanged a voucher for a specialized telecommunications device is not eligible to receive another voucher before the seventh anniversary of the date the individual exchanged the previously

issued voucher unless, before that date, the recipient develops a need for a different type of telecommunications device or service under the program because the recipient's disability changes or the recipient acquires another disability.

(e) An individual is not eligible for a voucher if the Texas Commission for the Deaf and Hard of Hearing has issued a voucher to another individual in the individual's household for a device or service to serve the same telephone line.

(f) [(e) ] The Texas Commission for the Deaf and Hard of Hearing shall:

(1) process each application for a voucher to determine eligibility of the applicant; and

(2) give each eligible applicant a voucher on payment of a $35 fee.

(g) [(f) ] The Texas Commission for the Deaf and Hard of Hearing shall maintain a record regarding each individual who receives a voucher under the program.

(h) [(g) ] The Texas Commission for the Deaf and Hard of Hearing shall deposit money collected under the program to the credit of the universal service fund.

Sec. 56.154. COMMISSION DUTIES. (a) Not later than the 45th day after the date the commission receives a voucher a telecommunications device distributor presents for payment or a voucher a telecommunications service provider presents for payment, the commission shall pay to the distributor or service provider the lesser of the value of a voucher properly exchanged for a specialized telecommunications device or service or the full price of the device or service for which a voucher recipient exchanges the voucher. The payments must be made from the universal service fund.

(b) The commission may investigate whether the presentation of a voucher for payment represents a valid transaction for a telecommunications device or service under the program. The Texas Commission for the Deaf and Hard of Hearing shall cooperate with and assist the commission in an investigation under this subsection.

(c) Notwithstanding Section 56.153(a), the commission may:

(1) delay payment of a voucher to a distributor of devices or a service provider if there is a dispute regarding the amount or propriety of the payment or whether the device or service is appropriate or adequate to meet the needs of the person to whom the Texas Commission for the Deaf and Hard of Hearing issued the voucher until the dispute is resolved;

(2) provide that payment of the voucher is conditioned on the return of the payment if the device is returned to the distributor or if the service is not used by the person to whom the voucher was issued; and

(3) provide an alternative dispute resolution process for resolving a dispute regarding a subject described by Subdivision (1) or (2).

SECTION 34. Subsection (a), Section 56.155, Utilities Code, as added by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

(a) The commission shall allow a telecommunications utility to recover the universal service fund assessment related to the specialized telecommunications [device ] assistance program through a surcharge added to the utility's customers' bills.

(3) Renumber the sections of the bill accordingly.

Amendment No. 7 was adopted without objection.

Amendment No. 8

Representative Carter offered the following amendment to CSSB 560:

Amend CSSB 560 (House Committee) as follows:

(1) In Section 56.023 (a) (4), Utilities Code, as added by SECTION 22 of the bill (page 32, line 2), strike "57; and" and substitute "57; [and ]".

(2) In Section 56.023 (a) (5), Utilities Code, as added by SECTION 21 of the bill (page 32, line 4), strike "fund." and substitute:

fund; and

(6) coordinate with the Department of Transportation on procedures for reimbursing the costs incurred for the implementation of a highway and emergency telecommunications system authorized by Chapter 226, Transportation Code.

Amendment No. 9

Representative Goodman offered the following amendment to Amendment No. 8:

Amend the Carter amendment to CSSB 560 by adding the following new items to the amendment:

(3) In Section 56.021 (5), Utilities Code, as added by SECTION 21 of the bill (page 31, line 8), strike "57; and" and substitute "57;".

(4) In Section 56.021 (6), Utilities Code, as added by SECTION 21 of the bill (page 31, line 11), Strike "amended." and substitute:

amended; and

(7) reimburse the Department of Transportation for direct and indirect costs incurred in implementing a highway and emergency telecommunications system authorized by Chapter 226, Transportation Code, provided that the annual reimbursement may not exceed $7 million.

Amendment No. 9 was adopted without objection.

Amendment No. 8, as amended, failed of adoption.

Amendment No. 10

Representative Junell offered the following amendment to CSSB 560:

Amend CSSB 560 as follows:

(1) On page 36, line 18, insert the words "but subject to Section 58.003 (b)" after the word "chapter" and before the comma

(2) On page 37, line 2, strike the words "In addition to the " and substitute "The"

(3) On page 37, line 3, strike the comma and substitute the words "shall not apply to"

(4) On page 37, line 4, after the word "lines", insert the words "after the date on which it completes the infrastructure improvements described in this Subsection (b). The electing company"

(5) On page 37, line 6, strike the words and characters "September 1, 2001" and substitute the words "September 1, 2000".

Amendment No. 10 was adopted without objection.

Amendment No. 11

Representatives Dutton and Chavez offered the following amendment to CSSB 560:

Amend CSSB 560 as follows:

(1) On page 48, strike lines 12-15 and substitute the following:

(c) Notwithstanding any other provision of this title, flat rate residential local exchange telephone service, including related services, shall be capped until September 1, 2005 at the prices in effect on September 1, 1999 and flat rate business local exchange telephone service, including related services, shall be capped until September 1, 2005 at the prices in effect on September 1, 1999. Notwithstanding any other provision of this title [Subsection (a) or (b) ], upon the expiration of any applicable rate cap, unless specifically authorized by the commission, the electing company may not increase the price of a nonbasic [competitive ] service listed in Sections 58.151 (7), (8), (11), and (12) more than 12 percent annually [ in a geographic area in which that service or a functionally equivalent service is not readily available from another provider ].

(2) On page 51, line 1, strike "and".

(3) On page 51, line 10, strike "." and substitute "; and".

(4) On page 51, between lines 10 and 11, insert the following:

(3) on the first anniversary of the date the electing company, or its affiliate formed in compliance with 47 U.S.C. Section 271, as amended, actually begins providing interLATA services in this state in accordance with the authorization required by 47 U.S.C. Section 271, as amended, the electing company shall reduce its intrastate switched access rates by an amount necessary for such rates to be the same as the company's interstate carrier switched access rates. An electing company shall be required to further adjust it intrastate access rates thereafter as necessary for such rates to remain the same as the company's interstate carrier switched access rates.

Amendment No. 12

Representative Dutton offered the following amendment to Amendment No. 11:

Amend the Dutton/Chavez amendment to CSSB 560 (page 21 of the packet), by adding the following new items to read as follows:

(5) In Section 52.102, Utilities Code, as added by SECTION 9 of the bill (page 8, line 19), strike "AUTHORITY. (a) Except", and substitute "AUTHORITY. Except".

(6) In Section 52.102, Utilities Code, added by SECTION 9 of the bill (page 9, lines 12-13), strike Subsection (b).

(7) In Section 52.122, Utilities Code, as added by SECTION 12 of the bill (page 11, lines 3-6), strike Subsection (c).

Amendment No. 12 was adopted without objection.

Representative Goodman moved to table Amendment No. 11, as amended.

A record vote was requested.

The motion to table prevailed by (Record 460): 136 Yeas, 4 Nays, 1 Present, not voting.

Yeas - Alexander; Allen; Averitt; Bailey; Berman; Bonnen; Bosse; Brimer; Brown, B.; Brown, F.; Burnam; Capelo; Carter; Chisum; Christian; Clark; Coleman; Cook; Counts; Crabb; Craddick; Crownover; Cuellar; Culberson; Danburg; Davis, J.; Davis, Y.; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Edwards; Ehrhardt; Eiland(C); Elkins; Ellis; Farabee; Farrar; Flores; Gallego; Garcia; George; Glaze; Goodman; Goolsby; Gray; Green; Greenberg; Grusendorf; Gutierrez; Haggerty; Hamric; Hardcastle; Hawley; Heflin; Hilbert; Hilderbran; Hill; Hinojosa; Hochberg; Hodge; Homer; Hope; Howard; Hunter; Hupp; Isett; Janek; Jones, C.; Jones, J.; Junell; Keel; Keffer; King, P.; King, T.; Krusee; Kuempel; Lengefeld; Lewis, G.; Lewis, R.; Longoria; Luna; Madden; Marchant; Maxey; McCall; McClendon; McReynolds; Merritt; Moreno, J.; Moreno, P.; Mowery; Naishtat; Najera; Noriega; Oliveira; Olivo; Palmer; Pickett; Pitts; Puente; Rangel; Reyna, A.; Reyna, E.; Ritter; Sadler; Salinas; Seaman; Shields; Siebert; Smith; Smithee; Solis, J.; Solis, J. F.; Staples; Swinford; Talton; Telford; Thompson; Tillery; Turner, B.; Turner, S.; Uher; Uresti; Van de Putte; Walker; West; Williams; Wise; Wohlgemuth; Wolens; Woolley; Yarbrough; Zbranek.

Nays - Alvarado; Chavez; Dutton; Wilson.

Present, not voting - Mr. Speaker.

Absent, Excused - Corte; Jones, D.

Absent - Giddings; Hartnett; Morrison; Nixon; Ramsay; Solomons; Truitt.

STATEMENTS OF VOTE

When Record No. 460 was taken, I was in the house but away from my desk. I would have voted no.

Hartnett

When Record No. 460 was taken, my vote failed to register. I would have voted yes.

Truitt

Amendment No. 13

Representative S. Turner offered the following amendment to CSSB 560:

Amend CSSB 560 (House Committee Report) as follows:

(1) In Section 64.152(c)(1), Utilities Code, as added by SECTION 50 of the bill (page 70, line 26), after the semicolon, insert "or".

(2) In Section 64.152(c)(2), Utilities Code, as added by SECTION 50 of the bill (page 71, line 6), strike "charges; or" and substitute "charges."

(3) In Section 64.152(c), Utilities Code, as added by SECTION 50 of the bill (page 71, lines 7-15), strike Subdivision (3).

Amendment No. 13 was adopted without objection.

(Bonnen in the chair)

Amendment No. 14

Representative Y. Davis offered the following amendment to CSSB 560:

Amend CSSB 560 by adding a new appropriately numbered section to read as follows and renumbering subsequent sections appropriately:

SECTION ____. Subchapter F, Chapter 52, Utilities Code, is amended by adding Section 52.256 to read as follows:

Sec. 52.256. PLAN AND REPORT OF WORKFORCE DIVERSITY AND OTHER BUSINESS PRACTICES. (a) In this section, "small business" and "historically underutilized business" have the meanings assigned by Section 481.191, Government Code.

(b) Before January 1, 2000, each telecommunications utility shall develop and submit to the commission a comprehensive five-year plan to enhance diversity of its workforce in all occupational categories and for increasing opportunities for small and historically underutilized businesses. The plan must consist of:

(1) the telecommunications utility's performance with regard to workforce diversity and contracting with small and historically underutilized businesses;

(2) initiatives that the telecommunications utility will pursue in these areas over the period of the plan;

(3) a listing of programs and activities the telecommunications utility will undertake to achieve each of these initiatives; and

(4) a listing of the business partnership initiatives the telecommunications utility will undertake to facilitate small and historically underutilized business entry into the telecommunications market, taking into account opportunities for contracting and joint ventures.

(c) Each telecommunications utility shall submit an annual report to the commission and the legislature relating to its efforts to improve workforce diversity and contracting opportunities for small and historically underutilized businesses. The report must include:

(1) the diversity of the telecommunications utility's workforce as of the time of the report;

(2) the telecommunications utility's level of contracting with small and historically underutilized businesses;

(3) the specific progress made under the plan under Subsection (b);

(4) the specific initiatives, programs, and activities undertaken under the plan during the preceding year;

(5) an assessment of the success of each of those initiatives, programs, and activities;

(6) the extent to which the telecommunications utility has carried out its initiatives to facilitate opportunities for contracts or joint ventures with small and historically underutilized businesses; and

(7) the initiatives, programs, and activities the telecommunications utility will pursue during the next year to increase the diversity of its workforce and contracting opportunities for small and historically underutilized businesses.

Amendment No. 14 was adopted without objection.

LEAVE OF ABSENCE GRANTED

The following member was granted leave of absence for the remainder of today because of illness:

Uher on motion of Pitts.

CSSB 560 - (consideration continued)

Amendment No. 15

Representative Counts offered the following amendment to CSSB 560:

Amend CSSB 560 by adding a new SECTION as follows:

SECTION _____. Add a new Section 54.2025, Utilities Code, to read as follows:

Sec. 54.2025. RURAL TELEPHONE COMPETITION. (a) Notwithstanding the prohibitions set forth in sections 54.201 and 54.202, either a municipality or a municipal electric system may obtain a certificate of convenience and necessity, certificate of operating authority or a service provider certificate of authority so long as:

(1) the area the municipality or electric system is requesting certification is served by a local exchange company with more than one million access lines in this state;

(2) the municipality did not have a population in excess of 70,000 according to the 1990 federal census; or

(3) the municipal electric system did not have more than 31,000 customers as of December 31, 1990; and

(b) No municipality offering telecommunications services may regulate the rates or services of the incumbent local exchange company nor may the municipality unfairly discriminate or unfairly exercise any preference to the disadvantage of the incumbent local exchange company or any other telecommunications provider.

Amendment No. 16

Representative Counts offered the following amendment to Amendment No. 15:

Amend the Counts amendment to CSSB 560 (page 27 of the packet) as follows:

(1) In Section 54.2025 (a), Utilities Code, as added by the amendment, strike "may obtain" and substitute "may request that the commission grant".

(2) In Section 54.2025 (a), Utilities Code, as added by the amendment, strike "so long as" and substitute "to provide telecommunications services within the municipality, so long as".

(3) In Section 54.2025 (a), Utilities Code, as added by the amendment, strike Subdivisions (1)-(3) and substitute the following:

(1) in the case of a municipality:

(A) the area for which the municipality is requesting certification is served by a local exchange company with more than one million access lines in this state; and

(B) the municipality does not have a population more than 70,000; or

(2) in the case of a municipal electric system;

(A) the area for which the municipal electric system is requesting certification is served by a local exchange company with more than one million access lines in this state; and

(B) the system did not have more than 31,000 customers on December 31, 1990.

(4) In Section 54.2025, Utilities Code, as added by the amendment, between existing Subsections (a) and (b), insert a new Subsection (b) to read as follows:

(b) Before granting a certificate to a municipality or municipal electric system under this section, the commission must find that granting the certificate would be in the public interest.

(5) In Section 54.2025, Utilities Code, as added by the amendment, reletter existing Subsection (b) as Subsection (c).

(6) In Section 54.2025 (c), Utilities Code, as added by the amendment and relettered by this amendment, strike "unfairly discriminate or unfairly exercise" and substitute "unfairly or unreasonably discriminate or unfairly or unreasonably exercise".

Amendment No. 16 was adopted without objection. (The vote was later reconsidered, and Amendment No. 16 was withdrawn.)

Amendment No. 17

Representatives Solomons, Crownover, and Denny offered the following amendment to Amendment No. 15:

Amend the Counts amendment to CSSB 560 (page 27 of the packet) by adding the following to the end of Subsection (b), Section 54.2025, Utilities Code:

Nothing in this subchapter shall prevent a municipality, or a municipal electric system that is a member of a municipal power agency formed under Chapter 163 by adoption of a concurrent resolution by the participating municipalities on or before August 1, 1975, from leasing any of the excess capacity of its fiber optic cable facilities (dark fiber), so long as the rental of the fiber facilities is done on a nondiscriminatory, nonpreferental basis.

Amendment No. 17 was adopted without objection.

Amendment No. 15, as amended, failed of adoption. (B. Brown recorded voting yes) (The vote was later reconsidered, and Amendment No. 15, as amended by Amendment Nos. 17 and 27, was adopted.)

HR 1095 - NOTICE OF INTRODUCTION

Pursuant to the provisions of Rule 13, Section 9(f), of the House Rules, the speaker announced the introduction of HR 1095, suspending the limitations on the conferees for HB 1676.

CSSB 560 - (consideration continued)

Amendment No. 18

Representative Chavez offered the following amendment to CSSB 560:

Amend CSSB 560 by adding the following appropriately numbered SECTION and renumbering subsequent SECTIONS accordingly:

SECTION ____. (a) Subchapter H, Chapter 55, Utilities Code, is amended by adding Section 55.1775 to read as follows:

Sec. 55.1775. A provider shall equip the provider's pay telephones so that each pay telephone is capable of making correct change for a customer who deposits an amount greater than the cost of the customer's coin sent-paid call.

(b) This section takes effect September 1, 1999.

(Speaker in the chair)

Amendment No. 19

Representatives Swinford and Chavez offered the following amendment to Amendment No. 18:

Amend the Chavez amendment to CSSB 560 (page 28 of the packet), by adding the following to the end of Section 55.1775, Utilities Code, as added by the amendment:

This section applies only to pay telephone that charges more than 25 cents from a coin sent-paid call.

Amendment No. 19 was adopted without objection.

Representative Goodman moved to table Amendment No. 18, as amended.

The motion to table prevailed.

Amendment No. 20

Representative J. Solis offered the following amendment to CSSB 560:

Amend CSSB 560 by adding the following section, numbered appropriately:

SECTION ___. Section 57.042, Utilities Code, is amended to read as follows:

Sec. 57.042. DEFINITIONS. In this subchapter:

(1) "Ambulatory health care center" means a health care clinic or an association of such a clinic that is:

(A) exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, as amended, as an organization described by Section 501(c)(3), as amended; and

(B) funded wholly or partly by a grant under 42 U.S.C. Section 254b, 254c, or 256, as amended.

(2) "Board" means the telecommunications infrastructure fund board.

(3) [(2) ] "Commercial mobile service provider" means a provider of commercial mobile service as defined by Section 332(d), Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal Communications Commission rules, and the Omnibus Budget Reconciliation Act of 1993 (Pub. L. No. 103-66).

(4) [(3) ] "Fund" means the telecommunications infrastructure fund.

(5) [(4) ] "Institution of higher education" means:

(A) an institution of higher education as defined by Section 61.003, Education Code; or

(B) a private or independent institution of higher education as defined by Section 61.003, Education Code.

(6) [(5) ] "Library" means:

(A) a public library or regional library system as those terms are defined by Section 441.122, Government Code; or

(B) a library operated by an institution of higher education or a school district.

(7) [(6) ] "Public not-for-profit health care facility" means a rural or regional hospital or other entity such as a rural health clinic that:

(A) is supported by local or regional tax revenue; [or ]

(B) is a certified not-for-profit health corporation, under federal law; or

(C) is an ambulatory health care center.

(8) [(7) ] "School district" includes an independent school district, a common school district, and a rural high school district.

(9) [(8) ] "Public school" means a public elementary or secondary school, including an open-enrollment charter school, a home-rule school district school, and a school with a campus or campus program charter.

(10) [(9) ] "Taxable telecommunications receipts" means taxable telecommunications receipts reported under Chapter 151, Tax Code.

(11) [(10) ] "Telemedicine":

(A) means medical services delivered by telecommunications technologies to rural or underserved public not-for-profit health care facilities or primary health care facilities in collaboration with an academic health center and an associated teaching hospital or tertiary center or with another public not-for-profit health care facility; and

(B) includes consultive services, diagnostic services, interactive video consultation, teleradiology, telepathology, and distance education for working health care professionals.

Amendment No. 20 was adopted without objection.

Amendment No. 21

Representative Wilson offered the following amendment to CSSB 560:

Amend CSSB 560 as follows:

(1) Add the following new SECTION, appropriately numbered, and renumber the subsequent SECTIONS of the bill accordingly:

SECTION . Subchapter C, Chapter 57, Utilities Code, is amended by adding Section 57.0475 to read as follows:

Sec. 56.0475. EDUCATIONAL PROGRAMS IN CERTAIN SCHOOL DISTRICTS. (a) Notwithstanding any other provision of law, the Texas Education Agency, in consultation with the board, may adopt policies and procedures governing use of money in the fund to provide educational programs for students residing in the two largest school districts in membership for the 1999-2000 school year, as determined by the commissioner of education, that are located in a county with a population of at least 1,800,000.

Amendment No. 22

Representative Wilson offered the following amendment to Amendment No. 21:

Amend the Wilson amendment to CSSB 560 (page 33 of packet) by striking lines 6-13 and substituting the following:

Sec. 56.047. TIF GRANTS. (a) This section takes effect only if SB 4, Acts of the 76th Legislature, Regular Session, 1999, becomes law and contains a provision that prohibits social promotion of students who do not pass specified assessment instruments under Section 39.023, Education Code.

(b) Notwithstanding any other provision of law, the Texas Education Agency, in consultation with the board, shall establish a grant program under which an eligible child may receive a grant from the fund to be used to pay the costs of attending a private or public school that is:

(1) chosen by the child's parents; and

(2) approved by the commissioner of education in accordance with rules adopted by the commissioner.

(c) A child is eligible for a grant under this section if the child:

(1) is in the third grade, fails to perform satisfactorily on the third grade reading assessment instrument under Section 39.023, Education Code, and is retained in the third grade under Section 28.0211, Education Code;

(2) is in the fifth grade, fails to perform satisfactorily on the fifth grade mathematics and reading assessment instruments under Section 39.023, Education Code, and is retained in the fifth grade under Section 28.0211, Education Code; or

(3) is in the eighth grade, fails to perform satisfactorily on the eighth grade mathematics and reading assessment instruments under Section 39.023, Education Code, and is retained in the eighth grade under Section 28.0211, Education Code.

(d) The commissioner of education and the board shall jointly determine the amount of the grant provided under this section which may not exceed $5,000 per student per year.

(e) The school district in which the child attended school when the child was retained at a grade level under Section 28.0211, Education Code, shall reimburse the fund for the amount of grant. The board may adopt rules necessary to implement this subsection.

(f) A private or public school that accepts a child's grant under this section:

(1) shall provide the student with transportation between the child's home and the school; and

(2) may not charge the child tuition in excess of the amount of the grant.

Amendment No. 22 was adopted without objection.

Representative Goodman moved to table Amendment No. 21, as amended.

The motion to table was withdrawn.

Amendment No. 21, as amended, was withdrawn.

Amendment No. 23

Representative Brimer offered the following amendment to CSSB 560:

Amend CSSB 560 by adding a new appropriately numbered Section to the bill to read as follows and renumbering subsequent Sections accordingly:

SECTION ____. Chapter 61, Utilities Code, is amended by adding Subchapter D to read as follows:

SUBCHAPTER D. BROADBAND INTERNET ACCESS

Sec. 61.061. In this subchapter:

(1) "Broadband" means possessing the capability to transmit data at a rate in excess of 144 kilobits per second.

(2) "Broadband Internet access transport services" means the broadband transmission of data between an end user and an Internet service provider's point of interconnection with the broadband Internet access transport provider's facilities.

(3) "Internet" means collectively the myriad of computer and telecommunications facilities, including equipment and operating software, that comprise the interconnected world-wide network of networks that employ the Transmission Control Protocol/Internet Protocol, or any predecessor or successor protocols to that protocol, to communicate information of all kinds by wire or radio.

(4) "Internet service provider" means a person who provides a service that enables end users to access content, information, electronic mail, or other services offered over the Internet.

(5) "Wireline broadband Internet access transport provider" means a person who provides broadband Internet access transport services, by aid of wire, cable, or other similar connection, over facilities owned by the provider or under the provider's control for a fee directly or indirectly to the public. The term includes an Internet service provider who self-provides, over facilities owned by the provider or under the provider's control, the wireline broadband transport of the provider's services between the provider and the provider's end users.

Sec. 61.062. APPLICATION OF SUBCHAPTER. This subchapter applies only to a wireline broadband Internet access transport provider that is a telecommunications utility or an affiliate of a telecommunications utility.

Sec. 61.063. DUTY OF CERTAIN PROVIDERS. Each wireline broadband Internet access transport provider who is, or is an affiliate of, an Internet service provider shall provide any other requesting Internet service provider access to its broadband Internet access transport services, unbundled from the provision of content, on rates, terms, and conditions that are at least as favorable as those on which the transport provider provides that access to itself, to its affiliate, or to any other person. The access shall be provided at any technically feasible point selected by the requesting Internet service provider.

Amendment No. 23 was withdrawn.

Amendment No. 24

Representative McCall offered the following amendment to CSSB 560:

Amend CSSB 560 by adding the following appropriately numbered Section to read as follows and renumbering subsequent Sections accordingly:

SECTION . Chapter 62, Utilities Code, is amended by adding Subchapter G to read as follows:

SUBCHAPTER G. MUTICHANNEL VIDEO PROGRAMMING

Sec. 62.151. PROHIBITED CONDUCT. (a) Notwithstanding any other provision of this title, a cable operator or other multichannel video programming distributor may not engage in conduct, the effect of which is to unreasonably restrain the ability of an unaffiliated video programming vendor to compete fairly by discriminating in video programming distribution on the basis of affiliation or nonaffiliation of vendors in the selection, terms, or conditions for carriage of video programming provided by that vendor.

(b) A video programming vendor or multichannel video programming distributor doing business in this state shall have as its state remedy for a violation of this section a private cause of action in the appropriate state court. The plaintiff shall serve a copy of the complaint on the commission. The commission shall review and evaluate the claims and determine if it wants to intervene in the case.

(c) The court shall expedite proceedings on the cause of action if an unaffiliated video programming vendor alleges that a discriminatory refusal to carry has occurred. On a finding that unreasonable discrimination occurred, the court shall order any and all appropriate remedies, which may include mandatory carriage at prescribed rates, terms, and conditions.

(d) This section applies only to a cable company or multichannel video programming distributor that is a telecommunications provider or an affiliate or a telecommunications provider.

Amendment No. 25

Representative McCall offered the following amendment to Amendment No. 24:

Amend the McCall amendment to CSSB 560 (page 36 of the packet) by striking the text of the amendment and substituting the following:

Amend CSSB 560 by adding the following appropriately numbered Section to read as follows and renumbering subsequent Sections accordingly:

SECTION _____. Chapter 62, Utilities Code, is amended by adding Subchapter G to read as follows:

SUBCHAPTER G. MULTICHANNEL VIDEO PROGRAMMING

Sec. 62.151. PROHIBITED CONDUCT. (a) Notwithstanding any other provision of this title, a cable operator or other multichannel video programming distributor may not engage in conduct, the effect of which is to unreasonably restrain the ability of an unaffiliated video programming vendor to compete fairly by discriminating in video programming distribution on the basis of affiliation or nonaffiliation of vendors in the selection, terms, or conditions for carriage of video programming provided by such vendors.

(b) A video programming vendor or multichannel video programming distributor doing business in this state shall have as its state remedy for a violation of this section a private cause of action in the appropriate state court.

(c) The court shall expedite proceedings on the cause of action if an unaffiliated video programming vendor alleges that a discriminatory refusal to carry has occurred. If a finding is made that unreasonable discrimination occurred, then the court shall order any and all appropriate remedies, which may include mandatory carriage at prescribed rates, terms, and conditions.

(d) This section applies only to a cable company or multichannel video programming distributor that is a telecommunications provider or an affiliate of a telecommunications provider.

Amendment No. 25 was adopted without objection.

Representative Chisum moved to table Amendment No. 24, as amended.

The motion to table prevailed.

Amendment No. 26

Representative Madden offered the following amendment to CSSB 560:

Amend CSSB 560 by inserting the following new SECTIONS, appropriately numbered, and renumbering the subsequent SECTIONS accordingly:

SECTION ___. The heading to Chapter 305, Government Code, is amended to read as follows:

CHAPTER 305. REGISTRATION OF

LOBBYISTS; LEGISLATIVE ADVERTISING

SECTION ___. Section 305.002, Government Code, is amended by adding Subdivision (12) to read as follows:

(12) "Legislative advertising" means a communication that supports, opposes, or proposes legislation and that:

(A) in return for consideration, is published in a newspaper, magazine, or other periodical or is broadcast by radio or television; or

(B) appears in a pamphlet, circular, flier, billboard or other sign, bumper sticker, button, or similar form of written communication.

SECTION ___. The heading to Subchapter B, Chapter 305, Government Code, is amended to read as follows:

SUBCHAPTER B. PROHIBITED ACTIVITIES;

LEGISLATIVE ADVERTISING

SECTION ___. Subchapter B, Chapter 305, Government Code, is amended by adding Section 305.028 to read as follows:

Sec. 305.028. REPORTS CONCERNING LEGISLATIVE ADVERTISING. (a) In this section, "contribution" means a direct or indirect transfer of money, goods, services, or any other thing of value made with the intent that it be used in connection with political activities, including influencing legislation or publishing, broadcasting, or distributing legislative advertising. The term includes an agreement made or other obligation incurred, whether legally enforceable or not, to make a transfer. The term also includes a loan or extension of credit and a guarantee of a loan or extension of credit, other than a loan made in the due course of business by a corporation that is legally engaged in the business of lending money and that has conducted the business continuously for more than one year before the loan is made.

(b) A person who sponsors legislative advertising during the period beginning January 1 of an even-numbered year and continuing through June 30 of that year shall file with the commission a written report covering that period not later than July 15 of that year. A person who sponsors legislative advertising during the period beginning July 1 of an even-numbered or odd-numbered year and continuing through December 31 of that year shall file with the commission a written report covering that period not later than January 15 of the following year.

(c) A person who sponsors legislative advertising during the period beginning January 1 of an odd-numbered year and continuing through June 30 of that year shall file with the commission one or more reports as provided by this subsection. For each calendar month during the period prescribed by this subsection in which the person sponsors legislative advertising, the person shall file a report. Each report filed under this subsection covers a calendar month and must be filed not later than the 15th day of the month following the month covered by the report. A report filed under this subsection must be filed by computer diskette, modem, or other means of electronic transfer, using computer software provided by the commission or computer software that meets commission specifications for a standard file format.

(d) For purposes of Subsections (b) and (c), legislative advertising is sponsored on the first date in a reporting period that:

(1) the advertisement is published or broadcast, in the case of legislative advertising that is published or broadcast; or

(2) the advertisement is distributed, in the case of legislative advertising that appears in a pamphlet, circular, flier, billboard or other sign, bumper sticker, button, or similar form of written communication.

(c) Each report filed under this section must include:

(1) the name, address, and telephone number of the person making the report;

(2) the name, address, and telephone number of the individual signing the report and that individual's relationship to the person making the report;

(3) a complete description of each piece of legislative advertising sponsored by the person making the report, including the dates on which the legislative advertising was published, broadcast, or distributed;

(4) the amount of expenditures for legislative advertising that in the aggregate exceed $100 and that are made during the reporting period, the full name and address of the persons to whom the expenditures are made, and the dates and purposes of the expenditures;

(5) the total amount or a specific listing of the expenditures for legislative advertising of $100 or less made during the reporting period;

(6) the total amount of all expenditures for legislative advertising made during the reporting period;

(7) the amount of contributions from each person that in the aggregate exceed $100 and that are accepted during the reporting period by the person required to file the report, the full name, full address, and principal occupation of the person making the contributions, and the dates of the contributions;

(8) the amount of contributions from each person that in the aggregate exceed $100 and that were accepted during a previous reporting period for which the person was not required to file a report, the full name, full address, and principal occupation of the person making the contributions, and the dates of the contributions;

(9) the total amount or a specific listing of the contributions of $100 or less accepted during the reporting period;

(10) the total amount or a specific listing of the contributions of $100 or less accepted during a previous reporting period for which the person was not required to file a report;

(11) the total amount of all contributions accepted during the reporting period;

(12) the total amount or a specific listing of the contributions of $100 or less accepted during a previous reporting period for which the person was not required to file a report; and

(13) the total amount of all contributions accepted during the reporting period or during a previous reporting period for which the person was not required to file a report.

(d) A report under this section must be signed by an individual authorized to file the report on behalf of the person responsible for making the report.

(e) Each person required to file a report under this section shall maintain a record of all reportable activity for at least two years beginning on the filing deadline for the report containing the information in the record.

(f) This section does not apply to an individual who, not acting in concert with another person, sponsors legislative advertising.

SECTION ___. Section 305.027(e), Government Code, is repealed.

SECTION ___. SECTIONS ___-___ of this Act, amending Subchapter B, Chapter 305, Government Code, take effect January 1, 2000.

SECTION ___. Section 305.028, Government Code, as added by this Act, applies only to:

(1) legislative advertising, as defined by Section 305.002(12), Government Code, as added by this Act, that is printed, published, or broadcast on or after January 1, 2000; and

(2) a contribution received on or after January 1, 2000, by a person who sponsors legislative advertising.

Amendment No. 26 was withdrawn.

Vote Reconsidered - Amendment No. 15

Representative Goodman moved to reconsider the vote by which Amendment No. 15, as amended, failed of adoption.

The motion to reconsider prevailed.

Vote Reconsidered - Amendment No. 16

Representative Goodman moved to reconsider the vote by which Amendment No. 16 was adopted.

The motion to reconsider prevailed.

Amendment No. 16 was withdrawn.

Amendment No. 27

Representative Solomons offered the following amendment to Amendment No. 15:

Amend the Counts amendment to CSSB 560 (page 27 of the packet) to read as follows:

Amend CSSB 560 by adding a new appropriately numbered Section to read as follows and renumbering subsequent Sections accordingly:

SECTION . Subchapter E, Chapter 54, Utilities Code, is amended by adding Section 54.2025 to read as follows:

Sec. 54.2025. LEASE OF FIBER OPTIC CABLE FACILITIES. Nothing in this subchapter shall prevent a municipality, or a municipal electric system that is a member of a municipal power agency formed under Chapter 163 by adoption of a concurrent resolution by the participating municipalities on or before August 1, 1975, from leasing any of the excess capacity of its fiber optic cable facilities (dark fiber), so long as the rental of the fiber facilities is done on a nondiscriminatory, nonpreferential basis.

Amendment No. 27 was adopted without objection.

Amendment No. 15, as amended, was adopted without objection.

CSSB 560, as amended, was passed to third reading. (Burnam recorded voting present, not voting)

HR 1103 - ADOPTED

(by Flores, Hinojosa, J. Solis, Oliveira, Wise, et al.)

Representative Flores moved to suspend all necessary rules to take up and consider at this time HR 1103.

The motion prevailed without objection.

The following resolution was laid before the house:

HR 1103, In memory of Juan DeDios Hinojosa and dedicating the World Birding Center Headquarters in Mission in his honor.

HR 1103 was read and was unanimously adopted by a rising vote.

On motion of Representative R. Lewis, the names of all the members of the house were added to HR 1103 as signers thereof.

HR 1095 - ADOPTED

(by Junell)

The following privileged resolution was laid before the house:

HR 1095

BE IT RESOLVED by the House of Representatives of the State of Texas, 76th Legislature, Regular Session, 1999, That House Rule 13, Section 9(a), be suspended in part as provided by House Rule 13, Section 9(f), to enable the conference committee appointed to resolve the differences on HB 1676, relating to permanent funds for certain public health purposes, to consider and take action on the following matters:

1. House Rule 13, Section 9(a)(1), is suspended to permit the committee to change the text of Section 403.105(a), Government Code, in SECTION 1 of the bill, so that the subsection reads as follows:

(a) The permanent fund for tobacco education and enforcement is a dedicated account in the general revenue fund. The fund is composed of:

(1) money transferred to the fund at the direction of the legislature;

(2) gifts and grants contributed to the fund; and

(3) the available earnings of the fund determined in accordance with Section 403.1068.

Explanation: This change is necessary to provide that the permanent fund for tobacco education and enforcement is a dedicated account in the general revenue fund.

2. House Rule 13, Section 9(a)(1), is suspended to permit the committee to change the text of Section 403.1055(a), Government Code, in SECTION 1 of the bill, so that the subsection reads as follows:

(a) The permanent fund for children and public health is a dedicated account in the general revenue fund. The fund is composed of:

(1) money transferred to the fund at the direction of the legislature;

(2) gifts and grants contributed to the fund; and

(3) the available earnings of the fund determined in accordance with Section 403.1068.

Explanation: This change is necessary to provide that the permanent fund for children and public health is a dedicated account in the general revenue fund.

3. House Rule 13, Section 9(a)(3), is suspended to permit the committee to add text in Section 403.1055(c), Government Code, in SECTION 1 of the bill, so that the subsection reads as follows:

(c) The available earnings of the fund may be appropriated to the Texas Department of Health for the purpose of developing and demonstrating cost-effective prevention and intervention strategies for improving health outcomes for children and the public and for providing grants to local communities to address specific public health priorities, including sickle cell anemia, diabetes, high blood pressure, cancer, heart attack, stroke, keloid tissue and scarring, and respiratory disease, and for providing grants to local communities for essential public health services as defined in the Health and Safety Code.

Explanation: This change is necessary to specify the types of specific public health priorities for which the available earnings of the permanent fund for children and public health may be used.

4. House Rule 13, Section 9(a)(1), is suspended to permit the committee to change the text of Section 403.106(a), Government Code, in SECTION 1 of the bill, so that the subsection reads as follows:

(a) The permanent fund for emergency medical services and trauma care is a dedicated account in the general revenue fund. The fund is composed of:

(1) money transferred to the fund at the direction of the legislature;

(2) gifts and grants contributed to the fund; and

(3) the available earnings of the fund determined in accordance with Section 403.1068.

Explanation: This change is necessary to provide that the permanent fund for emergency medical services and trauma care is a dedicated account in the general revenue fund.

5. House Rule 13, Section 9(a)(1), is suspended to permit the committee to change the text of Section 403.1065(a), Government Code, in SECTION 1 of the bill, so that the subsection reads as follows:

(a) The permanent fund for rural health facility capital improvement is a dedicated account in the general revenue fund. The fund is composed of:

(1) money transferred to the fund at the direction of the legislature;

(2) payments of interest and principal on loans made under Subchapter G, Chapter 106, Health and Safety Code, and fees collected under that subchapter;

(3) gifts and grants contributed to the fund; and

(4) the available earnings of the fund determined in accordance with Section 403.1068.

Explanation: This change is necessary to provide that the permanent fund for rural health facility capital improvement is a dedicated account in the general revenue fund.

6. House Rule 13, Section 9(a)(1), is suspended to permit the committee to change the text of Sections 403.1067 and 403.1068(a), Government Code, in SECTION 1 of the bill, so that the sections read as follows:

Sec. 403.1067. RESTRICTIONS ON LOBBYING EXPENDITURES. (a) An organization, program, political subdivision, public institution of higher education, local community organization, or other entity receiving funds or grants from the permanent funds in Section 403.105, 403.1055, 403.106, 403.1065, or 403.1066 may not use the funds or grants to pay:

(1) lobbying expenses incurred by the recipient;

(2) a person or entity that is required to register with the Texas Ethics Commission under Chapter 305, Government Code;

(3) any partner, employee, employer, relative, contractor, consultant, or related entity of a person or entity described by Subdivision (2); or

(4) a person or entity who has been hired to represent associations or other entities for the purpose of affecting the outcome of legislation, agency rules, ordinances, or other government policies.

(b) The persons or entities described by Subsection (a) are not eligible to receive the money or participate either directly or indirectly in the contracts, funds, or grants awarded in Section 403.105, 403.1055, 403.106, 403.1065, or 403.1066.

(c) Grants or awards made under Section 403.105, 403.1055, 403.106, 403.1065, or 403.1066 may not be conditioned on the enactment of legislation, agency rules, or local ordinances.

Sec. 403.1068. MANAGEMENT OF CERTAIN FUNDS. (a) This section applies only to management of the permanent funds established under Sections 403.105, 403.1055, 403.106, 403.1065, and 403.1066.

Explanation: This change is necessary to allow the addition of cross-references to a newly added section.

7. House Rule 13, Section 9(a)(1), is suspended to permit the committee to change the text of Section 106.201(2), Health and Safety Code, in SECTION 2 of the bill, so that the subdivision reads as follows:

(2) "Rural county" means:

(A) a county that has a population of 150,000 or less; or

(B) with respect to a county that has a population of more than 150,000 and that contains a geographic area that is not delineated as urbanized by the federal census bureau, that part of the county that is not delineated as urbanized.

Explanation: This change is necessary to provide that a county of 150,000 or less is a rural county for purposes of rural health facility capital improvement.

8. House Rule 13, Sections 9(a)(1) and (3), are suspended to permit the committee to change the text of, and add text to, SECTION 3 of the bill, so that the section reads as follows:

SECTION 3. On the effective date of this Act, the comptroller shall transfer:

(1) $200 million from tobacco proceeds in the general revenue fund to the permanent fund for tobacco education and enforcement established by Section 403.105, Government Code, as added by this Act;

(2) $100 million from tobacco proceeds in the general revenue fund to the permanent fund for children and public health established by Section 403.1055, Government Code, as added by this Act;

(3) $100 million from tobacco proceeds in the general revenue fund to the permanent fund for emergency medical services and trauma care established by Section 403.106, Government Code, as added by this Act;

(4) $50 million from tobacco proceeds in the general revenue fund to the permanent fund for rural health facility capital improvement established by Section 403.1065, Government Code, as added by this Act; and

(5) $25 million from tobacco proceeds in the general revenue fund to the community hospital capital improvement fund established by Section 403.1066, Government Code, as added by this Act.

Explanation: These changes are necessary to ensure that money transferred to the permanent funds established by the Act comes from tobacco proceeds and that $100 million is transferred to the permanent fund for children and public health.

HR 1095 was adopted without objection.

RECESS

Representative Farrar moved that the house recess until 10 a.m. tomorrow in memory of Marie May and Juan DeDios Hinojosa, Representative Hinojosa's father.

The motion prevailed without objection.

The house accordingly, at 11:04 p.m., recessed until 10 a.m. tomorrow.

----------------

ADDENDUM

--------------

REFERRED TO COMMITTEES

The following bills and joint resolutions were today laid before the house, read first time, and referred to committees, and the following

resolutions were today laid before the house and referred to committees. If indicated, the chair today corrected the referral of the following measures:

List No. 1

HCR 291 (by Y. Davis), Memorializing Congress to reauthorize the Ryan White CARE Act.

To Public Health.

HR 1003 (by A. Reyna and E. Reyna), Memorializing the United States Congress to strengthen the oversight power and authority of the Postal Rate Commission.

To State Affairs.

HR 1024 (by Green), Recognizing Lockhart as the Barbecue Capital of Texas.

To State, Federal & International Relations.

HR 1048 (by Ehrhardt, Marchant, and Gallego), Memorializing the U.S. Congress to support legislation providing for an immediate increase of the per capita tax-exempt private activity bond cap.

To Urban Affairs.

HR 1072 (by Williams), Congratulating The Woodlands High School track team on winning the 1999 UIL Class 5A state championship.

To Rules & Resolutions.

HR 1073 (by Williams), Honoring The Woodlands High School Lady Highlanders golf team for winning the silver medal at the 1999 UIL Class 5A State High School Championship Golf Tournament.

To Rules & Resolutions.

HR 1074 (by Williams), Honoring senior Katie Futcher of The Woodlands High School for winning the 1999 UIL Class 5A State High School Championship Golf Tournament.

To Rules & Resolutions.

HR 1075 (by Truitt), Recognizing and honoring the accomplishments of Andrew Hickson.

To Rules & Resolutions.

HR 1076 (by Truitt), Recognizing and honoring the accomplishments of Andrew Phelan.

To Rules & Resolutions.

HR 1077 (by Truitt), Recognizing and honoring the accomplishments of Todd Hickson.

To Rules & Resolutions.

HR 1078 (by Truitt), Congratulating Dr. Edgar Lancaster on his retirement from Baylor Medical Center at Grapevine.

To Rules & Resolutions.

HR 1079 (by Truitt), Honoring the Prevention Promise program of Hurst-Euless-Bedford.

To Rules & Resolutions.

HR 1081 (by Coleman), Congratulating Lyndon B. Johnson General Hospital in Houston on its 10-year anniversary.

To Rules & Resolutions.

HR 1082 (by R. Lewis), Honoring Vera Kirksey Lacy for her dedication to the students of Newton County.

To Rules & Resolutions.

SIGNED BY THE SPEAKER

The following bills and resolutions were today signed in the presence of the house by the speaker:

Senate List No. 30

SCR 84

House List No. 61

HB 82, HB 156, HB 1194, HB 1346, HB 1521, HB 1652, HB 1810, HB 1952, HB 2105, HB 2159, HB 3081, HB 3515, HJR 95

MESSAGES FROM THE SENATE

The following messages from the senate were today received by the house:

Message No. 1

MESSAGE FROM THE SENATE

SENATE CHAMBER

Austin, Texas

Monday, May 24, 1999

The Honorable Speaker of the House

House Chamber

Austin, Texas

Mr. Speaker:

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

THE SENATE HAS PASSED THE FOLLOWING MEASURES:

LOCAL AND UNCONTESTED CALENDAR

HB 23 Goolsby SPONSOR: Armbrister

Relating to liability for certain prohibited telephone communications.

(COMMITTEE SUBSTITUTE)

HB 485 Hill SPONSOR: Madla

Relating to the validation of a municipal act or proceeding.

(COMMITTEE SUBSTITUTE)

HB 508 Wohlgemuth SPONSOR: Sibley

Relating to interlocal contracts for the construction, improvement, or repair of streets and alleys in municipalities.

(COMMITTEE SUBSTITUTE)

HB 542 Brimer SPONSOR: Fraser

Relating to the board of directors of the Texas Workers' Compensation Insurance Fund and to the operation of certain programs of that fund.

(COMMITTEE SUBSTITUTE)

HB 817 Jones, Jesse SPONSOR: Armbrister

Relating to regulation of cemeteries.

(AMENDED)

HB 836 King, Tracy SPONSOR: Zaffirini

Relating to access under the public information law to birth and death indexes.

(COMMITTEE SUBSTITUTE)

HB 918 Reyna, Arthur SPONSOR: Wentworth

Relating to the copies prepared by a district or county clerk of certain court records.

(AMENDED)

HB 962 Jones, Delwin SPONSOR: Duncan

Relating to the sale or lease of a certain facility owned and operated by the Lubbock County Hospital District; providing a penalty.

(COMMITTEE SUBSTITUTE)

HB 1064 Pickett SPONSOR: Carona

Relating to the regulation of the sale and use of certain refrigerants.

(COMMITTEE SUBSTITUTE)

HB 1102 Smith SPONSOR: Jackson

Relating to prohibiting discharge or release payments to certain inmates of the Texas Department of Criminal Justice.

(AMENDED)

HB 1111 Williams SPONSOR: Bernsen

Relating to the dissolution of the Montgomery County Hospital District.

(AMENDED)

HB 1168 Thompson SPONSOR: Ellis, Rodney

Relating to security services in certain court buildings.

(COMMITTEE SUBSTITUTE)

HB 1322 King, Phil SPONSOR: Brown, J. E. "Buster

Relating to a child support lien.

(COMMITTEE SUBSTITUTE)

HB 1328 Uher SPONSOR: Shapleigh

Relating to the regulation of the practice of professional land surveying.

(COMMITTEE SUBSTITUTE)

HB 1379 Allen SPONSOR: Armbrister

Relating to the information about an inmate of the Texas Department of Criminal Justice that is subject to public disclosure or excepted from public disclosure.

(COMMITTEE SUBSTITUTE)

HB 1420 Alvarado SPONSOR: Truan

Relating to complaints filed with the Texas State Board of Podiatric Medical Examiners.

(AMENDED)

HB 1511 Marchant SPONSOR: Armbrister

Relating to the operation and regulation of pawnshops.

(COMMITTEE SUBSTITUTE)

HB 1542 Keffer SPONSOR: West, Royce

Relating to purchasing requirements for school districts and junior college districts.

(COMMITTEE SUBSTITUTE)

HB 1571 Grusendorf SPONSOR: Harris

Relating to the name of a decedent on a grave marker.

(COMMITTEE SUBSTITUTE)

HB 1607 Thompson SPONSOR: Ellis, Rodney

Relating to the assignment of a statutory probate court judge to hear a contested probate matter.

(AMENDED)

HB 1654 Maxey SPONSOR: Brown, J. E. "Buster

Relating to the regulation of private sewage facilities; providing a criminal penalty.

(COMMITTEE SUBSTITUTE)

HB 1655 Luna, Vilma SPONSOR: Truan

Relating to the rate and allocation of the hotel occupancy tax in certain municipalities.

(COMMITTEE SUBSTITUTE)

HB 1703 Gallego SPONSOR: Madla

Relating to the application and enforcement of traffic regulations in private subdivisions.

(COMMITTEE SUBSTITUTE)

HB 1764 Farabee SPONSOR: Whitmire

Relating to coverage by a health benefit plan of reconstructive breast surgery after mastectomy.

(COMMITTEE SUBSTITUTE)

HB 1878 Averitt SPONSOR: Harris

Relating to the regulation of pawnbrokers and pawnshop employees.

(COMMITTEE SUBSTITUTE)

HB 1921 Chisum SPONSOR: Bivins

Relating to the appointment of a bailiff for certain counties in the 84th Judicial District.

(COMMITTEE SUBSTITUTE)

HB 2124 Cuellar SPONSOR: Ellis, Rodney

Relating to protective orders and the protection of victims of family violence, including the creation of certain capital offenses.

(AMENDED)

HB 2421 Uresti SPONSOR: Madla

Relating to the accrual of interest on delinquent child support.

(COMMITTEE SUBSTITUTE)

HB 2434 Uher SPONSOR: Moncrief

Relating to insurance provided by or through certain development corporations created by certain political subdivisions.

(AMENDED)

HB 2441 Goodman SPONSOR: Ellis, Rodney

Relating to the requirement that parents participate in a parenting course and counseling in certain suits involving children.

(AMENDED)

HB 2522 Greenberg SPONSOR: Lindsay

Relating to the administration of retirement systems for paid, partly paid, or volunteer firefighters.

(COMMITTEE SUBSTITUTE)

HB 2526 Cuellar SPONSOR: Armbrister

Relating to the penalties for poaching.

(AMENDED)

HB 2537 Davis, Yvonne SPONSOR: Cain

Relating to warranty performance obligations applicable to certain motor vehicles.

(COMMITTEE SUBSTITUTE)

HB 2539 Davis, Yvonne SPONSOR: Cain

Relating to the issuance of license plates for vehicle converters.

(COMMITTEE SUBSTITUTE)

HB 2572 Junell SPONSOR: Wentworth

Relating to the reservation of riparian rights associated with land sold by certain municipalities.

(AMENDED)

HB 2573 Wolens SPONSOR: Nelson

Relating to tertiary medical care.

(COMMITTEE SUBSTITUTE)

HB 2620 Ramsay SPONSOR: Armbrister

Relating to authorizing counties to prohibit or restrict outdoor burning; providing a criminal penalty.

(AMENDED)

HB 2748 Smithee SPONSOR: Sibley

Relating to coverage for certain care for children provided through certain health benefit plans.

(COMMITTEE SUBSTITUTE)

HB 2760 Moreno, Joe SPONSOR: Gallegos

Relating to special license plates for persons retired from service in the merchant marine of the United States.

(COMMITTEE SUBSTITUTE)

HB 2835 Turner, Sylvester SPONSOR: Shapleigh

Relating to information that certain state agencies must post on the Internet.

(AMENDED)

HB 2842 Brimer SPONSOR: Armbrister

Relating to continued payment of salary by an employer as replacement for certain workers' compensation income benefits.

(COMMITTEE SUBSTITUTE)

HB 2873 Maxey SPONSOR: Zaffirini

Relating to the operation of certain Medicaid waiver programs for children with disabilities or special health care needs.

(AMENDED)

HB 2879 Chavez SPONSOR: Shapleigh

Relating to creating an offense for transporting an individual under certain circumstances.

(AMENDED)

HB 2891 Bailey SPONSOR: Gallegos

Relating to the creation of the Aldine Community Improvement District; authorizing the issuance of bonds and the imposition of taxes.

(COMMITTEE SUBSTITUTE)

HB 2894 Coleman SPONSOR: Ellis, Rodney

Relating to the creation of the Midtown Management District; providing authority to impose a tax and issue bonds.

(COMMITTEE SUBSTITUTE)

HB 2977 Hamric SPONSOR: Lindsay

Relating to the authority of the Texas Natural Resource Conservation Commission to certify that the discharge of a pollutant will not cause a violation of certain water quality standards under the Federal Water Pollution Control Act.

(AMENDED)

HB 3191 Moreno, Joe SPONSOR: Ellis, Rodney

Relating to the imposition of a criminal penalty and the disposition of fines for a violation of a rule concerning the use of county parks.

(AMENDED)

HB 3197 Ramsay SPONSOR: Bernsen

Relating to the appraisal and ad valorem taxation of retail manufactured housing inventory.

(AMENDED)

HB 3265 Uher SPONSOR: Madla

Relating to the duties of a justice of the peace with respect to inquests on dead bodies.

(AMENDED)

HB 3458 Kuempel SPONSOR: Madla

Relating to certain bonds required of a county tax assessor-collector and a county treasurer.

(COMMITTEE SUBSTITUTE)

HB 3481 King, Tracy SPONSOR: Madla

Relating to the board of directors and the validation of certain acts of the Bexar-Medina-Atascosa Counties Water Control and Improvement District No. 1.

(AMENDED)

HB 3492 Dunnam SPONSOR: Armbrister

Relating to the requirement that the motor vehicle of a person convicted of certain offenses involving the operation of a motor vehicle while intoxicated be equipped with an ignition interlock device and that the Department of Public Safety establish min

(COMMITTEE SUBSTITUTE)

HB 3598 McClendon SPONSOR: Cain

Relating to requiring notice regarding the location of establishments serving alcoholic beverages, sexually oriented businesses, and correctional or rehabilitation facilities.

(AMENDED)

HB 3741 Greenberg SPONSOR: Zaffirini

Relating to regulation by the Department of Protective and Regulatory Services of certain child-care facilities, family homes, and child-placing agencies.

(AMENDED)

HB 3757 Giddings SPONSOR: Carona

Relating to approved drug and alcohol driving awareness programs.

(COMMITTEE SUBSTITUTE)

HB 3780 Luna, Vilma SPONSOR: Truan

Relating to the creation of a county court at law in Nueces County and to the probate jurisdiction of the county courts at law in Nueces County.

(COMMITTEE SUBSTITUTE)

Respectfully,

Betty King

Secretary of the Senate

Message No. 2

MESSAGE FROM THE SENATE

SENATE CHAMBER

Austin, Texas

Monday, May 24, 1999 - 2

The Honorable Speaker of the House

House Chamber

Austin, Texas

Mr. Speaker:

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

THE SENATE HAS PASSED THE FOLLOWING MEASURES:

HB 160 Wise SPONSOR: Zaffirini

Relating to the regulation of certain sales or solicitations made by children; providing a penalty.

(AMENDED)

HB 673 Carter SPONSOR: Lindsay

Relating to requiring the use of protective helmets for bicycle safety.

(AMENDED)

HB 855 Capelo SPONSOR: Truan

Relating to the use of proceeds from criminal asset forfeiture to provide financial assistance to a person pursuing certain law enforcement studies.

HB 937 Maxey SPONSOR: Ellis, Rodney

Relating to the operation of certain food programs administered by the Texas Department of Human Services.

HB 1018 Denny SPONSOR: Sibley

Relating to participation of cities and counties in the National Flood Insurance Program.

HB 1140 Thompson SPONSOR: Armbrister

Relating to notice to voter registrars concerning persons convicted of a felony.

(AMENDED)

HB 1172 Chisum SPONSOR: Brown, J. E. "Buster

Relating to the definition of low-level radioactive waste.

(AMENDED)

HB 1342 Maxey SPONSOR: Moncrief

Relating to the practice of registered nurses and licensed vocational nurses, including the adoption of an interstate compact relating to licensing.

AMENDED

HB 1678 Rangel SPONSOR: Barrientos

Relating to the creation of a uniform strategy to attract a student population that reflects the population of the state at institutions of higher education.

HB 1876 Hinojosa SPONSOR: Whitmire

Relating to theft of or tampering with multichannel video or information services; providing penalties.

(AMENDED)

HB 1984 Bosse SPONSOR: Madla

Relating to the consolidation of emergency communication districts.

(AMENDED)

HB 2190 Hinojosa SPONSOR: Armbrister

Relating to prima facie evidence for the offense of theft of livestock by check.

(COMMITTEE SUBSTITUTE/AMENDED)

HB 2534 Thompson SPONSOR: Wentworth

Relating to the appointment of retired or former judges as visiting judges of certain courts.

HB 2609 Greenberg SPONSOR: Zaffirini

Relating to the provision of scholarships, bonuses, and wage supplementation for professional child-care workers.

HB 2653 Elkins SPONSOR: Ellis, Rodney

Relating to the law that applies to a contract made over the Internet.

HB 2815 Junell SPONSOR: Brown, J. E. "Buster

Relating to the petroleum storage tank program; providing a penalty.

(AMENDED)

HB 2816 Junell SPONSOR: Brown, J. E. "Buster

Relating to the fee on delivery of certain petroleum products and programs for corrective actions in response to releases from petroleum storage tanks.

(AMENDED)

HB 2909 Naishtat SPONSOR: Moncrief

Relating to the nursing and convalescent home trust fund.

HB 3079 Kuempel SPONSOR: Brown, J. E. "Buster

Relating to the development and financing of a statewide aquatic vegetation management plan.

(AMENDED)

HB 3084 Junell SPONSOR: Ratliff

Relating to the creation and re-creation of funds and accounts in the state treasury, the dedication and rededication of revenue, and the exemption of unappropriated money from use for general governmental purposes.

(AMENDED)

HB 3272 Goodman SPONSOR: Harris

Relating to the enforcement and collection of child support.

(AMENDED)

HB 3304 Thompson SPONSOR: Sibley

Relating to the books and records of certain insurers.

(AMENDED)

HB 3433 Delisi SPONSOR: Cain

Relating to dismissal of certain traffic offenses occurring in a construction or maintenance work zone.

(AMENDED)

HB 3549 Heflin SPONSOR: Wentworth

Relating to the administration and collection of ad valorem taxes and certain local standby fees.

(AMENDED)

HB 3623 Hilbert SPONSOR: Ratliff

Relating to the application of the sales tax to land surveying services.

Respectfully,

Betty King

Secretary of the Senate

Message No. 3

MESSAGE FROM THE SENATE

SENATE CHAMBER

Austin, Texas

Monday, May 24, 1999 - 3

The Honorable Speaker of the House

House Chamber

Austin, Texas

Mr. Speaker:

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

THE SENATE HAS PASSED THE FOLLOWING MEASURES:

HB 323 Brown, Fred SPONSOR: Ogden

Relating to the jurisdiction of municipal courts.

HB 424 Turner, Bob SPONSOR: Armbrister

Relating to the distribution of money to certain counties for the payment of extraordinary costs of prosecution.

(AMENDED)

HB 577 Giddings SPONSOR: Nelson

Relating to the period for which a person arrested or held without a warrant in the prevention of family violence may be held after bond is posted.

(COMMITTEE SUBSTITUTE)

HB 617 Ehrhardt SPONSOR: West, Royce

Relating to waiver applications by a public school campus or district.

HB 662 Hilderbran SPONSOR: Wentworth

Relating to the assessment of administrative fees for certain transactions relating to the collection of court costs.

(AMENDED)

HB 1016 Maxey SPONSOR: Ellis, Rodney

Relating to the manner in which state agency reports are made available to members of the legislature.

HB 1291 Brimer SPONSOR: Harris

Relating to the single certification of a water or sewer utility in an area incorporated or annexed by a municipality.

(AMENDED)

HB 1444 Delisi SPONSOR: Moncrief

Relating to local public health services.

(AMENDED)

HB 1494 Alexander SPONSOR: Nixon, Drew

Relating to limited rights to purchase certain permanent school fund minerals other than oil and gas in Henderson County.

HB 1687 Hunter SPONSOR: Armbrister

Relating to a state program of loan guarantees to promote the film industry in this state; providing a penalty.

HB 1869 Pitts SPONSOR: Nelson

Relating to the annexation of territory to a public junior college district.

HB 2187 Hinojosa SPONSOR: Nelson

Relating to required counseling for a person placed on community supervision following conviction of an offense involving family violence.

HB 2394 Maxey SPONSOR: Nixon, Drew

Relating to the regulation of the practice of optometry.

(AMENDED)

HB 2510 Dukes SPONSOR: Shapleigh

Relating to the administration and operation of the workers' compensation program of this state.

(COMMITTEE SUBSTITUTE/AMENDED)

HB 2787 Eiland SPONSOR: Jackson

Relating to the consideration of the location of a bidder's principal place of business in the award of contracts by certain local governments.

(COMMITTEE SUBSTITUTE)

HB 3041 Smithee SPONSOR: Sibley

Relating to prompt payment of insurance claims.

(COMMITTEE SUBSTITUTE/AMENDED)

HB 3333 Tillery SPONSOR: Cain

Relating to certain duties of local workforce development boards in connection with the provision of child care.

(COMMITTEE SUBSTITUTE/AMENDED)

HB 3431 Delisi SPONSOR: Fraser

Relating to the Council on Workforce and Economic Competitiveness.

(AMENDED)

HB 3657 Oliveira SPONSOR: Sibley

Relating to the continuation, funding, and operation of certain workforce development programs.

(COMMITTEE SUBSTITUTE/AMENDED)

HJR 62 Mowery SPONSOR: Shapiro

Proposing a constitutional amendment to eliminate duplicative, executed, obsolete, archaic, and ineffective constitutional provisions.

(AMENDED)

Respectfully,

Betty King

Secretary of the Senate

Message No. 4

MESSAGE FROM THE SENATE

SENATE CHAMBER

Austin, Texas

Monday, May 24, 1999 - 4

The Honorable Speaker of the House

House Chamber

Austin, Texas

Mr. Speaker:

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

THE SENATE HAS PASSED THE FOLLOWING MEASURES:

HB 550 Goolsby SPONSOR: Shapiro

Relating to the eligibility of certain persons to enter into a lottery contract or to purchase a lottery ticket or receive a lottery prize.

(AMENDED)

HB 826 Greenberg SPONSOR: Wentworth

Relating to alternative dispute resolution proceedings of governmental bodies.

(AMENDED)

HB 1014 Oliveira SPONSOR: Lucio

Relating to state and municipal hotel occupancy tax revenue.

(COMMITTEE SUBSTITUTE/AMENDED)

HB 1052 Brimer SPONSOR: Wentworth

Relating to creating a real estate broker's and appraiser's lien on commercial real estate; providing a penalty.

(AMENDED)

HB 1123 Thompson SPONSOR: Cain

Relating to the salaries of certain statutory county court judges.

(AMENDED)

HB 1283 Counts SPONSOR: Brown, J. E. "Buster

Relating to general permits for the discharge of wastewater.

(AMENDED)

HB 2075 Hochberg SPONSOR: Cain

Relating to the public notice required to be provided by a school district before adopting a proposed budget and tax rate.

(AMENDED)

HB 2148 Maxey SPONSOR: Moncrief

Relating to certain federally funded long-term care Medicaid programs.

(AMENDED)

HB 2896 Coleman SPONSOR: Moncrief

Relating to the administration and operation of the state Medicaid program.

(AMENDED)

HB 2978 Hamric SPONSOR: Lucio

Relating to requiring an individual convicted of or receiving deferred adjudication for the offense of prostitution to undergo certain medical tests and to the creation of the offense of engaging in prostitution while knowingly infected with certain dise

(AMENDED)

HB 3061 Hill SPONSOR: Bernsen

Relating to the issuance of permits for the operation of certain vehicles that exceed maximum size or weight limitations.

(AMENDED)

HB 3209 Jones, Jesse SPONSOR: West, Royce

Relating to the purposes for which money received by crime stoppers organizations may be used.

(AMENDED)

HB 3328 Gallego SPONSOR: Madla

Relating to speed limits on highways of this state.

(AMENDED)

HB 3470 Olivo SPONSOR: Zaffirini

Relating to the creation of a Parents as Scholars pilot program for certain persons eligible to receive TANF benefits.

(AMENDED)

HB 3516 Marchant SPONSOR: Carona

Relating to the regulation of funeral directing and embalming.

HB 3517 Goodman SPONSOR: Harris

Relating to the detention, adjudication, and disposition of certain persons within the juvenile justice system.

(AMENDED)

HB 3573 Lewis, Ron SPONSOR: Bernsen

Relating to extracurricular activities sponsored or sanctioned by a school district or the University Interscholastic League.

(AMENDED)

HB 3624 Swinford SPONSOR: Ogden

Relating to the persons for whom local governments may pay tort claims.

HCR 292 Goodman

Recalling H.B. No. 2354 from the governor.

HCR 295 Bosse

Instructing the enrolling clerk of the house to make corrections in H.B. No. 2617.

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

SB 172 (30 Yeas, 0 Nays)

SB 928 (viva-voce vote)

SB 1421 (viva-voce vote)

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

SB 4

Senate Conferees: Bivins - Chair/Harris/Nelson/Ogden/West, Roy

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

HB 819

Senate Conferees: Moncrief - Chair/Ellis, Rodney/Harris/Nelson/Wentwor

HB 2641

Senate Conferees: Brown, J. E. "Buster" - C/Fraser/Madla/Nelson/Zaffiri

THE SENATE HAS ADOPTED THE FOLLOWING CONFERENCE COMMITTEE REPORTS:

HB 2025 (viva-voce vote)

SB 445 (30 Yeas, 0 Nayes)

SB 507 (30 Yeas, 0 Nays)

SB 1129 (viva-voce vote)

SB 1272 (viva-voce vote)

THE SENATE HAS DISCHARGED ITS COFEREES AND APPOINTED NEW CONFEREES ON THE FOLLOWING MEASURES:

SB 138

Senate Conferees: Sibley - Chair/Cain/Ogden/Shapiro/Wentwor

Respectfully,

Betty King

Secretary of the Senate

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APPENDIX

--------------

STANDING COMMITTEE REPORTS

Favorable reports have been filed by committees as follows:

May 23

Criminal Jurisprudence - SB 128

ENROLLED

May 23 - HB 792, HB 1513, HB 1543, HB 1544, HB 1864, HB 2159, HB 2171, HB 2180