By:  Montford                                          S.B. No. 896
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the application and administration of the franchise
    1-2  tax.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 171.0011(e), Tax Code is repealed.
    1-5        SECTION 2.  Section 171.113(e), Tax Code is amended to read
    1-6  as follows:
    1-7        (e)  The election under Subsection (b) becomes effective when
    1-8  written notice of the election is received by the comptroller from
    1-9  the corporation. An election under Subsection (b) must be
   1-10  postmarked not later than the <original> due date for the electing
   1-11  corporation's franchise tax report to which the election applies.
   1-12  <No extension of time for filing the election under this section is
   1-13  available.>
   1-14        SECTION 3.  Section 171.156, Tax Code, is repealed.
   1-15        SECTION 4.  Section 171.157, Tax Code, is repealed.
   1-16        SECTION 5.  Section 171.251, Tax Code, is amended to read as
   1-17  follows:
   1-18        Sec. 171.251.  Forfeiture of Corporate Privileges. The
   1-19  comptroller shall forfeit the corporate privileges of a corporation
   1-20  on which the franchise tax is imposed if the corporation:
   1-21              (1)  does not file, in accordance with this chapter and
   1-22  within 45 <90> days after the date notice of forfeiture is mailed
   1-23  <it is due>, a report required by this chapter;
    2-1              (2)  does not pay within 45 <90> days after the date
    2-2  notice of forfeiture is mailed <it is due>, a tax imposed by this
    2-3  chapter or does not pay, within those 45 <90> days, a penalty
    2-4  imposed by this chapter relating to that tax; or
    2-5              (3)  does not permit the comptroller to examine under
    2-6  Section 171.211 of this code the corporation's records.
    2-7        SECTION 6.  Section 171.256(c), Tax Code is amended to read
    2-8  as follows:
    2-9        (c)  The comptroller shall mail the notice to the corporation
   2-10  at least <within> 45 days before the forfeiture of corporate
   2-11  privileges <after the day on which the report, tax, or penalty is
   2-12  due>.  The notice shall be addressed to the corporation and mailed
   2-13  to the address named in the corporation's charter as its principal
   2-14  place of business or to another known place of business of the
   2-15  corporation.
   2-16        SECTION 7.  This Act takes effect for reports originally due
   2-17  on or after January 1, 1994.
   2-18        SECTION 8.  The importance of this legislation and the
   2-19  crowded condition of the calendars in both houses create an
   2-20  emergency and an imperative public necessity that the
   2-21  constitutional rule requiring bills to be read on three several
   2-22  days in each house be suspended, and this rule is hereby suspended.