BILL ANALYSIS C.S.S.B. 640 By: Montford (Holzheauser) May 8, 1995 Committee Report (Substituted) BACKGROUND Each year, the Comptroller of Public Accounts evaluates those areas of state law administered by that agency. In the course of these evaluations, a number of recommendations are produced that would simplify tax collection and enforcement procedures for both taxpayers and the comptroller's office. These recommendations represent technical corrections and changes which clarify, correct, or conform to existing statutory provisions of the Tax Code. PURPOSE This bill amends various taxes and fees in the Tax Code, and amends various tax-related provisions outside the Tax Code to clarify and simplify the administration, collection, and enforcement of taxes and fees. The bill amends provisions in the following areas: Collection and Enforcement Procedures Venue and Jurisdiction in a Suit to Recover Taxes Sales and Use Tax Motor Fuels Tax Cigarette Tax Cigar and Tobacco Products Tax Hotel Occupancy Tax Controlled Substances Tax Gas Production Tax Battery Fee Tire Fee Local Tax Rates Amusement Tax RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 111.010 (Suit to Recover Taxes), Subsection (c), Tax Code, by providing that venue for, and jurisdiction of, a suit arising under this section is exclusively conferred upon the district courts of Travis County. SECTION 2. Amends Section 111.060 (Interest on Delinquent Tax), Subsection (c), Tax Code, to provide that Subsection (b) of this section does not apply to the taxes imposed by certain chapters of this code or under an agreement made under Section 153.017 of this code. SECTION 3. Amends Section 111.101 (Settlement Before Redetermination), Tax Code, by deleting existing Subsection (b) regarding a settlement being ineffective. SECTION 4. Amends Section 111.201 (Assessment and Refund Limitation), Tax Code, by deleting the refund provisions. Also retitles the section "Assessment Limitation." SECTION 5. Amends Sections 151.0047 (Real Property Repair and Remodeling), and 151.0048 (Real Property Service), Tax Code. 151.0047 Adds improvements to a manufacturing or processing production unit in a petrochemical refinery or chemical plant to the definition of "real property repair and remodeling," for the purposes of the sales tax. 151.0048 Further defines "real property service" and provides a definition for "contractor," for the purposes of the sales tax. SECTION 6. Amends Section 151.154 (Resale Certificate: Liability of Purchaser), Tax Code, as follows: (a) Requires the purchaser to be liable for payment of the sales tax on the value of the taxable item for any period during which the taxable item is used, if a purchaser who gives a resale certificate makes any divergent use of the taxable item. (b) Provides that the value of an item of tangible personal property is the fair market rental value of the tangible personal property, which is the amount that a purchaser would pay on the open market to rent or lease the property. Provides that the value of a taxable service is the fair market value of the taxable service. (c) Requires the original purchase price to be the measure of the tax, if an item of tangible personal property has no fair market rental value or if a taxable service has no fair market value. (d) Allows the person making the divergent use to pay a sales tax on the original purchase price without credit for taxes previously paid. (e) Provides that a purchaser of a taxable item is exempted from the tax if the item is donated to an exempted organization. SECTION 7. Amends Section 151.155 (Exemption Certificate), Tax Code, as follows: (a) Requires the purchaser to be liable for payment of the sales tax on the value of the taxable item for any period during which the taxable item is used, if a purchaser who gives a resale certificate makes any divergent use of the taxable item. (b) Provides that the value of an item of tangible personal property is the fair market rental value of the tangible personal property, which is the amount that a purchaser would pay on the open market to rent or lease the property. Provides that the value of a taxable service is the fair market value of the taxable service. (c) Requires the original purchase price to be the measure of the tax, if an item of tangible personal property has no fair market rental value or if a taxable service has no fair market value. (d) Allows the person making the divergent use to pay a sales tax on the original purchase price without credit for taxes previously paid. (e) Provides that a purchaser of a taxable item is exempted from the tax if the item is donated to an exempted organization. SECTION 8. Amends Section 151.157 (Customs Brokers), Subsection (f), Tax Code, to change the citation from Administrative Procedure and Texas Register Act to the Government Code. SECTION 9. Amends Section 151.3111 (Services on Certain Exempted Personal Property), Subsection (b), Tax Code to clarify that service on machinery and equipment (originally purchased for more than $50,000) used in the commercial timber industry, is not exempt from sales, use and excise taxes. SECTION 10. Amends Section 151.313 (Health Care Supplies), Subsection (a), Tax Code, by including hospital beds in the items that are exempted from the taxes imposed by this chapter. SECTION 11. Amends Section 151.314 (Food and Food Products), Subsection (e), Tax Code, by providing that a sale is exempted under this subsection if the sale is made by a person under 19 years old who is a member of a nonprofit organization. Current law exempts persons under 18 years of age. SECTION 12. Amends Section 151.316 (Agricultural Items), Tax Code, by amending Subsection (a) and adding Subsections (c) and (d), as follows: (a) Expands the definition of "machinery and equipment" used in the processing, packing and marketing of agricultural products to include required pollution control equipment. Also codifies the qualification of an "original producer." A producer qualifies if more than 95% of the products being processed belong to that producer. (c) Defines "farm or ranch" and "original producer." (d) Authorizes two or more corporations that operate agricultural activities on the same tract or adjacent tracts of land and that are entirely owned by an individual or a combination of the individual, the individual's spouse, and the individual's children to qualify as an "original producer" for the purposes of Subsection (a)(8). SECTION 13. Amends Subchapter H, Chapter 151, Tax Code, by adding Section 151.3161 TIMBER OPERATIONS. (a) Exempts the first $50,000 worth of each unit of machinery or equipment that is used in a commercial timber operation, from sales, use and excise taxes. (b) Provides that Subsection (a) does not apply to the purchase of machinery or equipment through a rental or lease agreement with a term of less than 12 months. (c) Defines "machinery or equipment." SECTION 14. Amends Section 151.317 (Gas and Electricity), Subsection (c), Tax Code, to further define "residential use." Also adds the off-wing repair of jet engines to the category of "commercial use." SECTION 15. Amends Sections 151.318 (Property Used in Manufacturing), Tax Code, by amending Subsections (b), (e), (m), and (n) and adding Subsection (q), as follows: (b) Includes semiconductor fabrication cleanrooms and equipment to the list of items that are exempt from sales, use and excise taxes. (e) Provides that this section does not apply to taxable items rented or leased for less than one year. (m) Adds a reference to Subsection (h)(5) [a 75 percent reduction of sales & use tax for property purchased during 1994] to the list of refunds that do not affect the application of local sales and use taxes. (n) Adds supplies, including aluminum oxide, nitric acid, and sodium cyanide used in electrochemical plating or a similar process that are used in the overhauling, retrofitting, or repairing of jet engines to the items that are eligible for a refund or reduction in taxes. (q) Defines "semiconductor fabrication cleanrooms and equipment." SECTION 16. Amends Section 151.319 (Newspapers and Property Used in Newspaper Publication), Subsection (e), Tax Code, to delete wrapping, packing, and packaging supplies from the list of items not exempted from sales and use taxes. SECTION 17. Amends Section 151.342 (Agribusiness Items), Tax Code, to include poultry cages that are used exclusively as containers for transporting poultry from a poultry farm to a location where the poultry is processed, packaged, or marketed to the items exempt from sales and use taxes. SECTION 18. Amends Section 151.350 (Labor to Repair Certain Property), Tax Code, as follows: Retitles the section "Labor to Restore Certain Property." (a) Provides that labor to restore (rather than repair), real or tangible personal property is exempted from the taxes imposed by this chapter if the restoration is performed on damaged property in a disaster area, if the damage was caused by the disaster. (b) Provides that the exemption does not apply to tangible personal property transferred by the service provider to the purchaser as part of the service. (d) Defines "restore." SECTION 19. Amends Section 151.509 (Petition for Redetermination), Tax Code, to require a person petitioning for a redetermination of a determination made under Section 111.022 to file, before the determination becomes final, security as the comptroller requires to ensure compliance with this chapter. Authorizes the security to be sold by the comptroller in the manner provided by Chapter 111A. SECTION 20. Amends Section 151.712 (Civil Penalty for Persons Certifying Exports), Subsection (g), Tax Code, to change the citation from the Administrative Procedure and Texas Register Act to the Government Code. SECTION 21. Amends Sections 153.002 (Tax Liability on Leased Vehicles), Subsections (b) and (d), Tax Code, as follows: (b) Deletes the requirement of filing a bond with an application for an interstate trucker's permit. (d) Makes the filing of certain documents relating to an application for an interstate trucker's permit permissive (i.e. "may" instead of "shall"). SECTION 22. Amends Section 153.017 (Cooperative Agreements with Other States), Tax Code, by amending Subsections (b) and (f) and by adding Subsections (g) and (h), as follows: (b) Allows agreements between states to include additional information. (f) Provides a statute of this state prevails over an inconsistent rule of the comptroller. A statute of this state prevails over an inconsistent provision of an agreement entered into under this section, except as otherwise provided by this section. (g) Authorizes the comptroller to segregate in a separate fund or account, the amount of motor fuel taxes estimated to be due to other jurisdictions or otherwise subject to refund during the fiscal year, penalties and interest on those taxes due other jurisdictions, licensing fees, and other costs collected under the agreement. Authorizes the comptroller to issue a warrant or make an electronic transfer of the amount as necessary to carry out the purposes of the agreement on a determination of an amount held that is due to be remitted to another jurisdiction. Authorizes an auditing cost, membership fee, and other cost associated with the agreement to be paid from interest earned on funds segregated under this subsection. Requires any interest earnings in excess of the costs associated with the agreement to be credited to general revenue. (h) Provides that the legislature finds that it is in the public interest to enter into motor fuel tax agreements with other jurisdictions that may provide for the temporary remittal of amounts due other jurisdictions that exceed the amounts collected. Requires the comptroller to ensure that reasonable measures are developed to recover motor fuel taxes and other amounts due this state during each biennium. SECTION 23. Amends Section 153.116 (Bonds and Other Security for Taxes), Subsection (e), Tax Code, by deleting references to the F.S.L.I.C. SECTION 24. Amends Section 153.205 (Statement for Diesel Fuel Tax Free), Tax Code, by adding Subsection (i), to prohibit a permitted supplier from making a tax-free sale to a purchaser using a signed statement for the sale of more than 3,000 gallons of diesel fuel in a single transaction, or in a calendar month in which the supplier has previously sold more than 10,000 gallons of diesel fuel to the purchaser. SECTION 25. Amends Section 153.206 (Collection and Payment of Tax: Allowances), Subsection (f), Tax Code, by correctly identifying the commodity being sold, which is "diesel fuel," not "gasoline." SECTION 26. Amends Section 153.218 (Bonds and Other Security for Taxes), Subsection (e), Tax Code, by deleting references to the F.S.L.I.C. SECTION 27. Amends Section 153.220 (Invoices), Subsection (a), Tax Code, to require delivery of diesel fuel into the fuel supply tanks of a motor vehicle operated for commercial purposes and described by Section 153.001(12), rather than having a capacity of 60 or more gallons, to be evidenced by an invoice issued in duplicate by a dealer. SECTION 28. Amends Section 153.304 (Dealer's Permit), Tax Code, to provide that a dealer's permit authorizes a dealer to collect and remit taxes on liquefied gas delivered into the fuel supply tanks of motor vehicles displaying an out-of-state license plate, the motor vehicle of an interstate trucker licensed under an agreement entered into under Section 153.017, or a motor vehicle displaying a motor vehicle dealer's liquefied gas tax decal. SECTION 29. Amends Section 153.305 (Liquified Gas Tax Decal Permit), Tax Code, by adding Subsection (e), to provide that an interstate trucker is not required to prepay the tax under Subsection (a) for a motor vehicle operated for commercial purposes and described by Section 153.001(12). SECTION 30. Amends Section 153.306 (Interstate Trucker's Permit), Tax Code, by allowing persons to import liquified gas into the state, but prohibits them from receiving liquified gas for their vehicles without the proper decal. SECTION 31. Amends Section 153.402 (Prohibited Acts; Civil Penalties), Tax Code, to provide that a person forfeits to the state a civil penalty of not less than $25 nor more than $200 if the person makes a delivery of liquefied gas into the fuel supply tank of a motor vehicle bearing Texas license plates and no Texas liquefied gas tax decal, unless licensed under a multistate fuels tax agreement. SECTION 32. Amends Section 153.403 (Criminal Offenses), Tax Code, by establishing that operating a motor vehicle on liquified gas without the proper decal is an offense. SECTION 33. Amends Section 154.042 (Distributor), Subsection (d), Tax Code, by changing the citation from the Civil Statutes to the Government Code. SECTION 34. Amends Section 154.051 (Cigarette Tax Recovery Trust Fund), Subsection (m), Tax Code, by changing the citation from the Civil Statutes to the Government Code. SECTION 35. Amends Section 154.101 (Permits), Subsection (g), Tax Code, by changing the citation from the Civil Statutes to the Government Code. SECTION 36. Amends Section 154.114 (Suspension or Revocation of a Permit), Tax Code, as follows: Retitles the Section "Final Suspension or Revocation of a Permit." (a) Authorizes the treasurer to suspend or revoke a person's permit. (c) Requires the treasurer to mail the written notice by certified mail, return receipt requested, to the permit holder's mailing address as it appears on the treasurer's records. (d) Requires the treasurer to give the permit holder not less than 10 days' notice of a final hearing. SECTION 37. Amends Subchapter D, Chapter 154 (Cigarette Tax), Tax Code, by adding Section 154.1141 SUMMARY SUSPENSION OF A PERMIT. (a) Authorizes the treasurer to suspend a person's permit without notice or a hearing for failure to comply with this chapter or a rule adopted under this chapter if the person's continued operation constitutes an immediate and substantial threat to the collection of taxes imposed by this chapter. (b) Requires proceedings for a preliminary hearing before the treasurer or the treasurer's representative, to be initiated simultaneously with the summary suspension if the treasurer summarily suspends a person's permit. Requires the preliminary hearing to be set not later than 10 days after summary suspension. (c) Requires the permit holder to show cause, at the preliminary hearing, why the permit should not remain suspended pending a final hearing on suspension or revocation. (d) Provides that Chapter 2001, Government Code, does not apply to a summary suspension under this section. (e) Requires the treasurer to serve notice on the permit holder informing the permit holder of the right to a preliminary hearing before the treasurer or the treasurer's representative, and of the time and place of the preliminary hearing to initiate a proceeding to summarily suspend a person's permit. Requires the notice to be personally served on the permit holder, or sent by mail, to the permit holder's mailing address as it appears in the treasurer's records. Requires the notice to state the alleged violations that constitute the grounds for summary suspension. Provides that the suspension is effective at the time the notice is served. Requires the permit holder to immediately surrender the permit to the treasurer or the treasurer's representative if the notice is served in person. Requires the permit holder to immediately return the permit to the treasurer if notice is served by mail. (f) Provides that Section 154.114 (Suspension or Revocation of a Permit), governs a final administrative hearing under this section. SECTION 38. Amends Section 154.1145 (Hearings), Tax Code, to require the treasurer to conduct all hearings required by this chapter in accordance with Chapter 2001, Government Code, unless otherwise provided by this chapter. SECTION 39. Amends Section 154.201 (Record of Purchase or Receipt), Tax Code, to add export warehouses to the businesses that are required to keep records of all cigarettes purchased or received. SECTION 40. Amends Section 154.301 (Investigation and Audit Costs), Tax Code, as follows: Retitles the Section "Compliance Investigation and Recovery of Costs." Authorizes the treasurer to collect from a person who has failed to comply with this chapter reasonable expenses incurred in the compliance investigation as an additional penalty. Authorizes the comptroller to use funds as appropriated by the legislature. SECTION 41. Amends Section 154.304 (Inspection), Subsection (a), Tax Code, to authorize the treasurer to remain on the premises as long as necessary to determine the tax liability of a person dealing in cigarettes, or to determine compliance with this chapter. SECTION 42. Amends Section 154.308 (Deficiency Determination), Tax Code, as follows: Retitles the Section "Deficiency Determination, Penalties and Interest." Allows the treasurer to determine penalties and interest in the same manner as in determining a deficiency of taxes. SECTION 43. Amends Section 155.041 (Permits), Subsection (g), Tax Code, by changing the citation from the Civil Statutes to the Government Code. SECTION 44. Amends Section 155.059 (Suspension or Revocation of a Permit), Tax Code, as follows: Retitles the Section "Final Suspension or Revocation of Permit. (a) Authorizes the treasurer to suspend or revoke a person's permit. (c) Requires the treasurer to mail the written notice by certified mail, return receipt requested, to the permit holder's mailing address as it appears on the treasurer's records. (d) Requires the treasurer to give the permit holder not less than 10 days' notice of a final hearing. SECTION 45. Amends Subchapter C, Chapter 155, Tax Code, by adding Section 155.0591 SUMMARY SUSPENSION OF A PERMIT. (a) Authorizes the treasurer to suspend a person's permit without notice or a hearing for failure to comply with this chapter or a rule adopted under this chapter if the person's continued operation constitutes an immediate and substantial threat to the collection of taxes imposed by this chapter. (b) Requires proceedings for a preliminary hearing before the treasurer or the treasurer's representative to be initiated simultaneously with the summary suspension if the treasurer summarily suspends a person's permit. Requires the preliminary hearing to be set not later than 10 days after summary suspension. (c) Requires the permit holder to show cause, at the preliminary hearing, why the permit should not remain suspended pending a final hearing on suspension or revocation. (d) Provides that Chapter 2001, Government Code, does not apply to a summary suspension under this section. (e) Requires the treasurer to serve notice on the permit holder informing the permit holder of the right to a preliminary hearing before the treasurer or the treasurer's representative, and of the time and place of the preliminary hearing to initiate a proceeding to summarily suspend a person's permit. Requires the notice to be personally served on the permit holder, or sent by mail, to the permit holder's mailing address as it appears in the treasurer's records. Requires the notice to state the alleged violations that constitute the grounds for summary suspension. Provides that the suspension is effective at the time the notice is served. Requires the permit holder to immediately surrender the permit to the treasurer or the treasurer's representative if the notice is served in person. Requires the permit holder to immediately return the permit to the treasurer if notice is served by mail. (f) Provides that Section 155.059 (Suspension or Revocation of a Permit), governs a final administrative hearing under this section. SECTION 46. Amends Section 155.0595 (Hearings), Tax Code, to require the treasurer to conduct all hearings required by this chapter in accordance with Chapter 2001, Government Code, unless otherwise provided by this chapter. SECTION 47. Amends Section 155.101 (Record of Purchase or Receipt), Tax Code, to add export warehouses to the businesses that are required to keep records of all tobacco products purchased or received. SECTION 48. Amends Section 155.181 (Investigation and Audit Costs), Tax Code, as follows: Retitles the Section "Compliance Investigation and Recovery of Costs." Authorizes the treasurer to collect from a person who has failed to comply with this chapter reasonable expenses incurred in the compliance investigation as an additional penalty. Authorizes the comptroller to use funds as appropriated by the legislature. SECTION 49. Amends Section 155.183 (Inspection), Subsection (a), Tax Code, to authorize the treasurer to remain on the premises as long as necessary to determine the tax liability of a person dealing in tobacco products, or to determine compliance with this chapter. SECTION 50. Amends Section 155.185 (Deficiency Determination), Tax Code, as follows: Retitles the Section "Deficiency Determination, Penalties and Interest." Allows the treasurer to determine penalties and interest in the same manner as in determining a deficiency of taxes. SECTION 51. Amends Section 155.212 (Books and Records), Tax Code, to provide that a person commits an offense if the person knowingly makes, delivers to, and files with the treasurer a false or incomplete return or report. SECTION 52. Amends Section 156.001 (Definitions), Tax Code, to expand the definition of what is not a "hotel." SECTION 53. Amends Section 159.101 (Tax Imposed; Rate of Tax), Subsections (f), (g), (h), and (i), Tax Code, as follows: Deletes Subsection (f) regarding a tax collection in jeopardy, and redesignates the remaining Subsections (f)-(h). SECTION 54. Amends Section 159.103 (Exemption), Tax Code, to provide that the possession, purchase, acquisition, importation, manufacture, or production of a taxable substance is exempt from the tax imposed by this chapter, if the activity is authorized by law. SECTION 55. Amends the heading to Subchapter C, Chapter 159, Tax Code, from "CRIMINAL PROVISIONS; SEIZURE AND FORFEITURE," to "CRIMINAL PROVISIONS." SECTION 56. Amends Section 159.203 (Previously Used Certificates), Tax Code, to provide that an offense under this section is a felony of the third degree. Provides that venue of a prosecution under this section is in Travis County. SECTION 57. Amends Section 159.205 (Forfeiture), Tax Code, as follows: Retitles the Section, "Right to Collect Subordinate to Other Laws." (a) Deletes Subsection (a) regarding seized property and redesignates the last paragraph of the remaining text as Subsection (b). SECTION 58. Amends Section 159.206 (Settlement or Compromise of Tax), Tax Code, by deleting Subsection (b) regarding an administrative hearing. SECTION 59. Amends Section 201.201 (Tax Due), Tax Code, to provide that the tax imposed by this chapter for gas produced and saved is due at the office of the comptroller in Austin on the 20th day of the second month following the month of production, rather than the last day of each calendar month for gas produced and saved in the preceding month. SECTION 60. Amends Section 361.138 (Fee on the Sale of Batteries), Health and Safety Code, by amending Subsection (a) and adding Subsections (l), (m), and (n), as follows: (a) Defines "engaged in business in this state," "lead-acid battery," "purchased for resale," "storage," and "use." (l) Imposes a fee on the storage, use, or other consumption in this state, of a lead-acid battery at the same rate as provided by Subsection (b), unless purchased for resale. (m) Provides that a person storing, using, or consuming a lead-acid battery in this state is liable for the fee, and is responsible for reporting and paying it to the comptroller in the same manner as under Subsections (c)(2) and (d). (n) Provides that a person storing, using, or consuming a lead-acid battery in this state is not liable for the fee once the person has paid the fee and received a receipt showing that the fee has been paid. SECTION 61. Amends Section 361.472 (Waste Tire Recycling Fees), Health and Safety Code, by adding Subsection (k) to define "engaged in business in this state," "purchased for resale," "storage," and "use." SECTION 62. Amends Section 361.472 (Waste Tire Recycling Fees), Subsection (c), Health and Safety Code, to exclude bicycle tires or solid industrial tires from the fee. SECTION 63. Amends Section 4A(e), Development Corporation Act of 1979, (Article 5190.6, Revised Statutes), to provide that the tax imposed by this section takes effect as provided by Section 321.102(a), Tax Code. Deletes the provision regarding concurrent elections. SECTION 64. Amends Sections 12(3) and (6), Article 8817 (Regulation of musical, skill, or pleasure coin-operated machines), Revised Statutes, to delete the requirement that statements accompanying applications for licensure be sworn. SECTION 65. Amends Section 19(1), Article 8817, Revised Statutes, by deleting references to import licenses. SECTION 66. Repeals Section 159.204 (Property Subject to Seizure), Tax Code. SECTION 67. Provides that the changes in law made by this Act do not affect the collection or enforcement of taxes imposed before the effective date, with the exception of changes made to Section 201.201, Tax Code. Statement of legislative intent: The changes to Section 151.318(b)(2) and (q), Tax Code, other than the last two sentences of Subsection (q), be considered as a clarification of existing law, and not a substantive change. SECTION 68. Requires the comptroller to administer this Act consistent with legislation (if enacted), transferring the responsibilities of the treasurer to the comptroller. SECTION 69. Effective Date: October 1, 1995. SECTION 70. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 640 contains language that includes improvements to a manufacturing or processing production unit in a petrochemical refinery or chemical plant to the definition of "real property repair and remodeling," for the purposes of the sales tax. S.B. 640 does not include this language. C.S.S.B 640 clarifies the exemption for machinery and equipment used in the timber industry by amending Section 151.311, and adding Section 151.3161, Tax Code, whereas S.B. 640 includes this clarification in Section 151.316. C.S.S.B. 640 expands the definition of "machinery and equipment" used in the processing, packing and marketing of agricultural products to include required pollution control equipment. Also codifies the qualification of an "original producer." A producer qualifies if more than 95% of the products being processed belong to that producer. S.B. 640 does not include this language. C.S.S.B. 640 also provides a clarification of the exemption for containers used in transporting poultry. S.B. 640 does not include this language. C.S.S.B. 640 expands the definition of what is not considered a hotel, by specifying dormitories that are owned or leased and operated by an institution of higher education. S.B. 640 only specifies dormitories that are owned and operated by an institution of higher education. C.S.S.B 640 also includes a statement of legislative intent for Sections 151.318(b)(2) and (q). S.B. 640 does not include a statement of intent. S.B. 640 defines "debt collection services" for purposes of the sales, use and excise tax. C.S.S.B 640 does not contain this provision. SUMMARY OF COMMITTEE ACTION Pursuant to an announcement on the House floor, the committee met in a formal meeting on April 27, 1995. The chair laid out S.B. 640. The committee considered a complete substitute by Representative Holzheauser. Without objection, C.S.H.B. 640 was adopted. By a record vote of 7 ayes, 0 nays, 0 present not voting and 4 absent, the committee voted to report S.B. 640 to the House as substituted with the recommendation that it do pass.