BILL ANALYSIS


                                                     C.S.S.B. 401
                                                        By: Ellis
                                                          Finance
                                                         03-06-95
                                   Committee Report (Substituted)
BACKGROUND

Under current law, the Texas Comptroller of Public Accounts
administers and collects most of the taxes levied by the state. 
The comptroller audits taxpayers and enforces existing tax laws to
ensure taxpayer compliance.  In this way, the agency makes sure
that the state receives all of the tax money that is legitimately
due and prevents any taxpayer from enjoying a competitive advantage
by withholding tax money due the state.

PURPOSE

As proposed, C.S.S.B. 401 enforces timely payment of taxes and fees
collected by the comptroller more efficiently and effectively than
current law allows.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 111.016, Tax Code, as follows:

     Sec. 111.016.  PAYMENT TO THE STATE OF TAX COLLECTIONS.  (a) 
     Created from existing text.
     
            (b)  Provides that a person who controls or supervises the
       collection of tax or money from another person, or a person
       who controls or supervises the accounting for and paying
       over of the tax or money, and who wilfully fails to pay or
       cause to be paid the tax or money is liable for an amount
       equal to the tax or money not paid or caused to be paid. 
       Provides that the liability imposed by this subsection is in
       addition to any other penalty provided by law.  Prohibits
       the dissolution of a corporation, association, or
       partnership from affecting a person's liability.
       
       (c)  Grants the district courts of Travis County exclusive,
       original jurisdiction of a suit arising under this section.
       
       (d)  Defines "person" and "tax."   SECTION 2.  Amends Chapter 111B, Tax Code, by adding Section
111.063, as follows:

     Sec.  111.063.  PENALTY FOR FAILURE TO USE ELECTRONIC FUNDS
     TRANSFER.  (a)  Authorizes the comptroller to impose a five
     percent penalty on a person who is required to pay the tax by
     means of electronic funds transfer and does not pay the tax by
     means of electronic funds transfer.         
     
     (b)  Provides that the penalty is in addition to any other
       penalties.
       
     SECTION 3.  Amends Section  111.206, Tax Code, by adding Subsection
(f), to define "federal regulatory agency."

SECTION 4.  (a)  Effective date:  September 1, 1995.

          (b)-(c)  Make application of Sections 1-3  of this Act
     prospective.
     
     (d)  Requires the changes in law made by Section 4 to extend
     the limitations period in which the comptroller can collect a
     tax.
     
SECTION 5.  Emergency clause.