By Cuellar of Webb                                     H.B. No. 181
       74R705 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to tangible personal property exported outside of the
    1-3  United States and the persons who may provide documentation to
    1-4  prove the tax exemption for the property; providing penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 151.157, Tax Code, is amended by amending
    1-7  Subsections (b) and (h) and adding Subsections (i) and (j) to read
    1-8  as follows:
    1-9        (b)  The comptroller may issue a license to a customs broker
   1-10  for the purpose described by Subsection (a) for each place of
   1-11  business of the broker if the broker:
   1-12              (1)  applies to the comptroller for the license;
   1-13              (2)  pays the fee set by the comptroller;
   1-14              (3)  posts the bond or security in the amount required
   1-15  by Subsection (d); <and>
   1-16              (4)  submits the lessor's written authorization for the
   1-17  broker to conduct the business on the premises if the broker leases
   1-18  the premises in which the business is located;
   1-19              (5)  states in the application that the comptroller has
   1-20  not issued a license to the broker for that place of business; and
   1-21              (6)  complies with any rules of the comptroller to
   1-22  administer this section and to prevent the evasion of the tax under
   1-23  this chapter and local sales and use taxes.
   1-24        (h)  A customs broker shall charge at least $5 for export
    2-1  documentation issued by the broker for the purpose of showing the
    2-2  exemption of tangible personal property under Section
    2-3  151.307(b)(2).
    2-4        (i)  A customs broker may not issue export documentation for
    2-5  the purpose of showing the exemption of tangible personal property
    2-6  under Section 151.307(b)(2) if the documentation covers property:
    2-7              (1)  exported on different dates; or
    2-8              (2)  belonging to more than one foreign purchaser.
    2-9        (j)  In this section:
   2-10              (1)  "Customs broker" means a person licensed by the
   2-11  United States Customs Service to act as a customs house broker.
   2-12              (2)  "Authorized employee" means an employee of a
   2-13  customs broker:
   2-14                    (A)  who is authorized by the broker to perform
   2-15  customs transactions on behalf of the broker;
   2-16                    (B)  who is compensated by the broker with a
   2-17  regular salary or wages;
   2-18                    (C)  who is under the direct control and
   2-19  supervision of the broker; and
   2-20                    (D)  from whose salary or wages the broker is
   2-21  required to and actually does deduct and withhold a tax under
   2-22  federal law.
   2-23        SECTION 2.  Section 151.158, Tax Code, is amended to read as
   2-24  follows:
   2-25        Sec. 151.158.  DEVICE FOR IMPRESSING EXPORT STAMPS OR SEALS.
   2-26  (a)  The comptroller shall have <printed or> manufactured devices
   2-27  to impress a stamp or a seal on export documentation.  The
    3-1  comptroller shall determine <stamps in> the design, size, and
    3-2  quantity of the devices <the comptroller determines is> necessary
    3-3  for the purpose of this section.
    3-4        (b)  <The comptroller may designate the method of
    3-5  identification for the stamps.>
    3-6        <(c)  The comptroller shall require that the stamps be
    3-7  manufactured so that a stamp may be easily and securely attached to
    3-8  export documentation.>
    3-9        <(d)>  The comptroller shall change the design of the device
   3-10  <stamps at least once each calendar quarter, or more frequently> if
   3-11  the comptroller determines it is necessary for the enforcement of
   3-12  this section and the comptroller's rules.
   3-13        (c) <(e)>  The comptroller may provide the device <stamps>
   3-14  only to a customs broker licensed under Section 151.157.
   3-15        (d) <(f)>  A device <stamp> is invalid if transferred to a
   3-16  person other than the customs broker to whom the comptroller issued
   3-17  the device <stamp>, to an authorized employee of that customs
   3-18  broker, or to an authorized independent contractor.
   3-19        (e) <(g)>  The comptroller shall charge an amount for the
   3-20  device that the comptroller determines reasonably reflects the <not
   3-21  to exceed five cents for each stamp.  The comptroller shall use the
   3-22  money from the sale of the stamps only for> costs related to
   3-23  producing the device <stamps>, including costs of materials, labor,
   3-24  and overhead.
   3-25        <(h)  The comptroller may require stamps to be purchased in
   3-26  minimum quantities if the comptroller considers it necessary for
   3-27  the efficient administration of this section.>
    4-1        SECTION 3.  Sections 151.307(b) and (c), Tax Code, are
    4-2  amended to read as follows:
    4-3        (b)  When an exemption is claimed because tangible personal
    4-4  property is exported beyond the territorial limits of the United
    4-5  States, proof of export may be shown only by:
    4-6              (1)  a bill of lading issued by a licensed and
    4-7  certificated carrier of persons or property showing the seller as
    4-8  consignor, the buyer as consignee, and a delivery point outside the
    4-9  territorial limits of the United States;
   4-10              (2)  documentation:
   4-11                    (A)  provided by a United States Customs Broker
   4-12  licensed by the comptroller under Section 151.157;
   4-13                    (B)  certifying that delivery was made to a point
   4-14  outside the territorial limits of the United States; and
   4-15                    (C)  impressed by a stamp or seal <to which a
   4-16  stamp issued under Section 151.158 is affixed> in the manner
   4-17  required by <that section or> Section 151.157 or 151.158;
   4-18              (3)  import documents from the country of destination
   4-19  showing that the property was imported into a country other than
   4-20  the United States;
   4-21              (4)  an original airway, ocean, or railroad bill of
   4-22  lading and a forwarder's receipt if an air, ocean, or rail freight
   4-23  forwarder takes possession of the property; or
   4-24              (5)  any other manner provided by the comptroller for
   4-25  an enterprise authorized to make tax-free purchases under Section
   4-26  151.156.
   4-27        (c)  Documentation, including the stamp or seal impressed on
    5-1  <affixed to> the documentation, that is provided by a customs
    5-2  broker licensed by the comptroller under Section 151.157 is
    5-3  presumed valid in the absence of clear and convincing evidence that
    5-4  the tangible personal property covered by the documentation was not
    5-5  exported outside the territorial limits of the United States.
    5-6        SECTION 4.  Section 151.712(b), Tax Code, is amended to read
    5-7  as follows:
    5-8        (b)  A person who provides proof of documentation that
    5-9  tangible personal property has been exported outside of the United
   5-10  States or a person who may benefit from the provision of the proof
   5-11  of documentation, including a customs broker, authorized employee,
   5-12  authorized independent contractor, seller of the property or agent
   5-13  or employee of the seller, or a consumer of the property or agent
   5-14  or employee of the consumer, may not sell or buy the proof of
   5-15  documentation, including a device to impress a stamp or seal on
   5-16  <stamps required for> the documentation.  This subsection does not
   5-17  apply to a customs broker who accepts a fee for providing
   5-18  documentation under Section 151.307(b).
   5-19        SECTION 5.  Section 151.713, Tax Code, is amended by amending
   5-20  Subsections (b) and (h) and adding Subsection (i) to read as
   5-21  follows:
   5-22        (b)  Except as provided by Subsection (h), after <After>
   5-23  notice as provided by this section, a person who violates this
   5-24  section is subject to a monetary penalty that may not exceed:
   5-25              (1)  $500 for the first violation;
   5-26              (2)  $1,000 for the second violation; and
   5-27              (3)  $3,000 for each subsequent violation.
    6-1        (h)  After notice as provided by Subsection (d) and after
    6-2  following the procedures provided by Subsection (e), the
    6-3  comptroller may allow a person who violates this section for the
    6-4  first time to take a class in lieu of paying a monetary penalty.
    6-5  The comptroller shall by rule establish criteria for the class that
    6-6  will help ensure that a person taking the class avoids further
    6-7  violations of this section.
    6-8        (i)  In this section, "customs broker" and "authorized
    6-9  employee" have the meanings assigned by Section 151.157.
   6-10        SECTION 6.  (a)  This Act takes effect September 1, 1995.
   6-11        (b)  Sections 1-3 of this Act apply only to an exemption to
   6-12  the tax imposed under Chapter 151, Tax Code, claimed on or after
   6-13  that date.
   6-14        (c)  Sections 4 and 5 of this Act apply only to conduct that
   6-15  occurs on or after the effective date of this Act.  Conduct occurs
   6-16  on or after the effective date of this Act if every element of the
   6-17  conduct occurs on or after that date.  Conduct that occurs before
   6-18  the effective date of this Act is governed by the law in effect at
   6-19  the time the conduct occurred, and that law is continued in effect
   6-20  for that purpose.
   6-21        SECTION 7.  The importance of this legislation and the
   6-22  crowded condition of the calendars in both houses create an
   6-23  emergency and an imperative public necessity that the
   6-24  constitutional rule requiring bills to be read on three several
   6-25  days in each house be suspended, and this rule is hereby suspended.