LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 22, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE:  Senate BillNo. 401,
         Committee on Ways & Means                             as engrossed
         House of Representatives                       By: Ellis et al.
         Austin, Texas








FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
401 (Relating to the payment of and procedures to enforce payment
of taxes and fees collected by the comptroller.) this office has
determined the following:

This bill would implement the Comptroller's Gaining Ground
Recommendation GG17 by amending the Tax Code to state that a
person who receives or collects a tax or any money represented to
be a tax from another person holds the amount so collected in
trust for the benefit of the state and is liable to the state for
the full amount collected plus any accrued penalties and interest
on the amount collected.  For the purposes of this section, a
"person" includes an officer, manager, director, or employee of a
corporation, association, or limited liability company or member
of a partnership who, as an officer, manager, director, employee,
or member, is under a duty to perform an act with respect to the
collection, accounting, or payment of a tax.

The Comptroller would be authorized to impose a penalty of five
percent of tax due on a person who is required to remit the tax
to the Comptroller by means of electronic funds transfer and does
not do so.  The penalty would be in addition to any other penalty
provided by law.

The law promulgated by this bill would enable the Comptroller to
more efficiently and equitably administer, collect, and enforce
the revenues for which the Comptroller is responsible.    




The probable fiscal implication of implementing the provisions of 
the bill during each of the first  five years following passage
is estimated as follows:
     



          Fiscal  Probable Revenue    Probable Revenue 
          Year       Gain to the       Gain to State   
                   General Revenue    Highway Fund 006 
                      Fund 001                         
                                                       
          1996           $20,800,000         $1,000,000
          1997            20,800,000          1,000,000
                                                       
          1998            20,800,000          1,000,000
                                                       
          1999            20,800,000          1,000,000
          2000            20,800,000          1,000,000
                                                       
                                                       
                                                       
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No significant fiscal implication to units of local government is
anticipated.




Source:   Comptroller of Public Accounts
          LBB Staff: JK, SM, DF