1-1 By: Ellis, et al. S.B. No. 401 1-2 (In the Senate - Filed February 13, 1995; February 14, 1995, 1-3 read first time and referred to Committee on Finance; 1-4 March 6, 1995, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 8, Nays 0; March 6, 1995, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 401 By: Ratliff 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the payment of and procedures to enforce payment of 1-11 taxes and fees collected by the comptroller. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Section 111.016, Tax Code, is amended to read as 1-14 follows: 1-15 Sec. 111.016. Payment to the State of Tax Collections. 1-16 (a) Any person who receives or collects a tax or any money 1-17 represented to be a tax from another person holds the amount so 1-18 collected in trust for the benefit of the state and is liable to 1-19 the state for the full amount collected plus any accrued penalties 1-20 and interest on the amount collected. 1-21 (b) With respect to tax or other money subject to the 1-22 provisions of Subsection (a), a person who controls or supervises 1-23 the collection of tax or money from another person, or a person who 1-24 controls or supervises the accounting for and paying over of the 1-25 tax or money, and who wilfully fails to pay or cause to be paid the 1-26 tax or money is liable for an amount equal to the tax or money not 1-27 paid or caused to be paid. The liability imposed by this 1-28 subsection is in addition to any other penalty provided by law. 1-29 The dissolution of a corporation, association, limited liability 1-30 company, or partnership does not affect a person's liability under 1-31 this section. 1-32 (c) The district courts of Travis County have exclusive, 1-33 original jurisdiction of a suit arising under this section. 1-34 (d) In this section: 1-35 (1) "Person" includes an officer, manager, director, 1-36 or employee of a corporation, association, or limited liability 1-37 company or a member of a partnership who, as an officer, manager, 1-38 director, employee, or member, is under a duty to perform an act 1-39 with respect to the collection, accounting, or payment of a tax or 1-40 money subject to the provisions of Subsection (a). 1-41 (2) "Tax" includes any tax or money subject to the 1-42 provisions of Subsection (a) including the penalty and interest 1-43 computed by reference to the amount of the tax or money. 1-44 SECTION 2. Subchapter B, Chapter 111, Tax Code, is amended 1-45 by adding Section 111.063 to read as follows: 1-46 Sec. 111.063. PENALTY FOR FAILURE TO USE ELECTRONIC FUNDS 1-47 TRANSFER. (a) The comptroller may impose a penalty of five 1-48 percent of the tax due on a person who: 1-49 (1) is required by statute or rule to pay the tax to 1-50 the comptroller by means of electronic funds transfer; and 1-51 (2) does not pay the tax by means of electronic funds 1-52 transfer. 1-53 (b) The penalty provided by this section is in addition to 1-54 any other penalty provided by law. 1-55 SECTION 3. Section 111.206, Tax Code, is amended by adding 1-56 Subsection (f) to read as follows: 1-57 (f) In this section, "federal regulatory agency" includes 1-58 the United States Internal Revenue Service. 1-59 SECTION 4. (a) This Act takes effect September 1, 1995. 1-60 (b) The change in law made by Sections 1 and 2 of this Act 1-61 providing for the imposition of a penalty does not affect taxes 1-62 imposed before the effective date of this Act, and the law in 1-63 effect before the effective date of this Act is continued in effect 1-64 for purposes of the liability for and collection of those taxes. 1-65 (c) The change in law made by Section 3 of this Act may 1-66 extend the limitations period in which the comptroller can collect 1-67 a tax without regard to whether the tax is due before, on, or after 1-68 the effective date of this Act. 2-1 SECTION 5. The importance of this legislation and the 2-2 crowded condition of the calendars in both houses create an 2-3 emergency and an imperative public necessity that the 2-4 constitutional rule requiring bills to be read on three several 2-5 days in each house be suspended, and this rule is hereby suspended. 2-6 * * * * *