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                               * * * * *