By Romo                                                H.B. No. 857
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to taxes paid under protest.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subsection (e), Section 112.058, Tax Code is
    1-5  amended to read as follows:
    1-6        (e)  All protest payments of the taxes imposed under Chapters
    1-7  151, 152, 154, 155, 156, 157, 171 or other taxes received under
    1-8  protest as required by Section 112.051 of this code <that become
    1-9  due during the fiscal biennium beginning September 1 1989, may not
   1-10  be placed in a suspense account, but immediately> shall be
   1-11  deposited to the credit of the fund or funds to which those taxes
   1-12  are allocated by law.
   1-13        SECTION 2.  Section 112.058, Tax Code is amended by adding
   1-14  subsection (f) to read as follows:
   1-15        (f)  All protest amounts received under section 112.051 of
   1-16  this code that are presently in a suspense account, including
   1-17  amounts received before the effective date of this Act, shall be
   1-18  transferred to the credit of the fund or funds to which those taxes
   1-19  are allocated by law.
   1-20        SECTION 3.  Subsection (c), Section 112.060, Tax Code is
   1-21  amended to read as follows:
   1-22        (c)  Each tax refund warrant shall be drawn against the
   1-23  suspense account to which the taxes were deposited or against the
    2-1  fund or funds to which the taxes are allocated by law.  If there
    2-2  are not sufficient funds in the suspense account or other fund to
    2-3  which the taxes were deposited to pay a refund required to be paid
    2-4  under Subsection (a) of this section, then the comptroller shall
    2-5  draw the warrant against the General Revenue Fund or other funds
    2-6  from which refund appropriations may be made, as the comptroller
    2-7  determines appropriate.
    2-8        SECTION 4.  Subsection (a), Section 403.202, Government Code
    2-9  is amended to read as follows:
   2-10        (a)  If a person who is required to pay to any department of
   2-11  the state government an occupation, excise, gross receipts,
   2-12  franchise, license, or privilege tax or fee, other than a tax or
   2-13  other amount imposed under the Texas Unemployment Compensation Act
   2-14  (Article 5221b-1 et seq., Vernon's Texas Civil Statutes) contends
   2-15  that the tax or fee is unlawful or that the department may not
   2-16  legally demand or collect the tax or fee, the person shall pay the
   2-17  amount claimed by the state, and if the person intends to bring
   2-18  suit under this subchapter, the person must submit with the payment
   2-19  a protest.
   2-20        SECTION 5.  The importance of this legislation and the
   2-21  crowded condition of the calendars in both houses create an
   2-22  emergency and an imperative public necessity that the
   2-23  constitutional rule requiring bills to be read on three several
   2-24  days in each house be suspended, and this rule is hereby suspended.