By Armbrister                                    S.B. No. 862

      75R3306 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the administration, collection, and enforcement by the

 1-3     comptroller of various taxes and fees.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 101.003(8), Tax Code, as amended by

 1-6     Section 1.01, Chapter 486, and Section 3.27, Chapter 685, Acts of

 1-7     the 73rd Legislature, Regular Session, 1993, is reenacted to read

 1-8     as follows:

 1-9                 (8)  "Taxpayer" means a person liable for a tax, fee,

1-10     assessment, or other amount imposed by a statute or under the

1-11     authority of a statutory function administered by the comptroller.

1-12           SECTION 2.  Section 101.003, Tax Code, is amended by adding

1-13     Subdivision (13) to read as follows:

1-14                 (13)  "Tax" and "fee" include an assessment, tax, or

1-15     fee, and the penalty and interest computed by reference to the

1-16     amount of the assessment, tax, or fee.

1-17           SECTION 3.  Section 111.0047(a), Tax Code, as amended by

1-18     Section 4.08, Chapter 107, and Section 32, Chapter 284, Acts of the

1-19     73rd Legislature, Regular Session, 1993, is amended to read as

1-20     follows:

1-21           (a)  If a person fails to comply with any provision of this

1-22     title[, with any provision of Chapter 466, Government Code,] or

1-23     with a rule of the comptroller adopted under this title [or Chapter

1-24     466, Government Code], the comptroller, after a hearing, may revoke

 2-1     or suspend any permit or license issued to the person.

 2-2           SECTION 4.  Section 111.0048(a), Tax Code, as amended by

 2-3     Section 4.09, Chapter 107, and Section 33, Chapter 284, Acts of the

 2-4     73rd Legislature, Regular Session, 1993, is amended to read as

 2-5     follows:

 2-6           (a)  A new permit or license may not be issued to a former

 2-7     holder of a revoked permit or license unless the comptroller is

 2-8     satisfied that the person will comply with the provisions of this

 2-9     title [and Chapter 466, Government Code,] and the rules of the

2-10     comptroller relating to this title [and Chapter 466, Government

2-11     Code].

2-12           SECTION 5.  (a)  Section 111.006(a), Tax Code, is amended to

2-13     conform to Section 1, Chapter 175, Acts of the 74th Legislature,

2-14     Regular Session, 1995, and Section 4, Chapter 351, Acts of the 74th

2-15     Legislature, Regular Session, 1995, to read as follows:

2-16           (a)  The [Except as provided by Subsection (d), the]

2-17     following matter is confidential and may not be used publicly,

2-18     opened to public inspection, or disclosed except as permitted under

2-19     Subsection (b), [or] (d), or (e):

2-20                 (1)  a federal tax return or federal tax return

2-21     information required to have been submitted to the comptroller with

2-22     a state tax return or report; and

2-23                 (2)  all information secured, derived, or obtained by

2-24     the comptroller or the attorney general during the course of an

2-25     examination of the taxpayer's books, records, papers, officers, or

2-26     employees, including an examination of the business affairs,

2-27     operations, source of income, profits, losses, or expenditures of

 3-1     the taxpayer.

 3-2           (b)  Subsection (d), Section 111.006, Tax Code, as added by

 3-3     Section 4, Chapter 351, Acts of the 74th Legislature, Regular

 3-4     Session, 1995, is relettered as Subsection (e), Section 111.006,

 3-5     Tax Code.

 3-6           SECTION 6.  Section 111.018, Tax Code, is amended by adding

 3-7     Subsection (c) to read as follows:

 3-8           (c)  Publication in a newspaper of a notice of sale of seized

 3-9     property under Subsection (b)(4) is not required if the estimated

3-10     value of the property to be sold is less than $40,000.  The

3-11     comptroller may notify potential buyers of seized property the

3-12     value of which is estimated to be less than $40,000 by any means

3-13     reasonable and cost-effective to the state under the circumstances.

3-14           SECTION 7.  Section 111.206(f), Tax Code, is amended  to read

3-15     as follows:

3-16           (f)  In this section:

3-17                 (1)  "Federal [, "federal] regulatory agency" includes

3-18     the United States Internal Revenue Service.

3-19                 (2)  "Administrative proceeding" includes an audit by

3-20     the United States Internal Revenue Service.

3-21           SECTION 8.  Section 112.060, Tax Code, is amended by amending

3-22     Subsections (a), (b), and (d) and by adding Subsection (e) to read

3-23     as follows:

3-24           (a)  If a suit under this subchapter results in a final

3-25     determination that all or part of the money paid under protest was

3-26     unlawfully demanded by the public official and belongs to the

3-27     taxpayer, the comptroller [treasurer] shall credit the proper

 4-1     amount, with the pro rata interest earned on that amount, against

 4-2     any other amount finally determined to be due to the state from the

 4-3     taxpayer according to information in the custody of the comptroller

 4-4     [treasurer] and shall refund the remainder by the issuance of a

 4-5     refund warrant.

 4-6           (b)  A refund warrant shall be written and signed by the

 4-7     comptroller [and countersigned by the treasurer].

 4-8           (d)  The comptroller shall issue each tax refund warrant and

 4-9     [treasurer shall return to the comptroller each tax refund warrant

4-10     issued, and the comptroller] shall deliver it to the person

4-11     entitled to receive it.

4-12           (e)  The comptroller may not refund an amount of tax to a

4-13     taxpayer or person who collects taxes from another person unless

4-14     the taxpayer or person refunds all the taxes to the person from

4-15     whom the taxes were collected.

4-16           SECTION 9.  Section 113.006(b), Tax Code, is amended to read

4-17     as follows:

4-18           (b)  One tax lien notice is sufficient to cover all taxes of

4-19     the same nature, computed by reference to the amount of tax, that

4-20     may have accrued before or [accrue] after the filing of the notice.

4-21           SECTION 10.  Section 151.0035, Tax Code, is amended to read

4-22     as follows:

4-23           Sec. 151.0035.  "DATA PROCESSING SERVICE".  "Data processing

4-24     service" includes word processing, data entry, data retrieval, data

4-25     search, information compilation, payroll and business accounting

4-26     data production, and other computerized data and information

4-27     storage or manipulation.  "Data processing service" also includes

 5-1     the use of a computer or computer time for data processing whether

 5-2     the processing is performed by the provider of the computer or

 5-3     computer time or by the purchaser or other beneficiary of the

 5-4     service.  "Data processing service" does not include the

 5-5     transcription of medical dictation by a medical transcriptionist.

 5-6           SECTION 11.  Section 151.0047(b), Tax Code, is amended by

 5-7     adding Subdivision (3) to read as follows:

 5-8                 (3)  "New product" means a product that:

 5-9                       (A)  has different product properties and a

5-10     different commercial application than the product previously

5-11     manufactured or processed by the production unit that produced the

5-12     previous product; and

5-13                       (B)  is not created by straining or purifying an

5-14     existing product or by making cosmetic changes, such as adding or

5-15     removing color or odor, to or from an existing product.

5-16           SECTION 12.  Section 151.0048(c), Tax Code, is amended to

5-17     read as follows:

5-18           (c)  In this section, "contractor" means a person who makes

5-19     an improvement on real estate and who, as a necessary or incidental

5-20     part of the service, incorporates tangible personal property into

5-21     the property improved.  The term includes a builder, developer,

5-22     speculative builder, or other person acting as a builder to improve

5-23     residential real property.

5-24           SECTION 13.  Section 151.007(c), Tax Code, is amended to read

5-25     as follows:

5-26           (c)  "Sales price" or "receipts" does not include any of the

5-27     following if separately identified to the customer by such means as

 6-1     an invoice, billing, sales slip or ticket, or contract:

 6-2                 (1)  a cash discount allowed on the sale;

 6-3                 (2)  the amount charged for tangible personal property

 6-4     returned by a customer if the total amount charged is refunded by

 6-5     cash or credit;

 6-6                 (3)  a refund of the charges for the performance of a

 6-7     taxable service;

 6-8                 (4)  finance, carrying and service charges, or interest

 6-9     from credit extended on sales of taxable items under a conditional

6-10     sales contract or other contract providing for the deferred payment

6-11     of the purchase price;

6-12                 (5)  the value of tangible personal property that:

6-13                       (A)  is taken by a seller in trade as all or part

6-14     of the consideration for a sale of a taxable item; and

6-15                       (B)  is of a type of property sold by the seller

6-16     in the regular course of business;

6-17                 (6)  the face value of United States coin or currency

6-18     in a sale of that coin or currency in which the total consideration

6-19     given by the purchaser exceeds the face value of the coin or

6-20     currency; or

6-21                 (7)  a voluntary gratuity or a reasonable mandatory

6-22     charge for the service of a meal or food products, including soft

6-23     drinks and candy, for immediate human consumption when the service

6-24     charge is separated from the sales price of the meal or food

6-25     product and identified as a gratuity or tip and when the total

6-26     amount of the service charge is disbursed by the employer to

6-27     employees who customarily and regularly provide the service.

 7-1           SECTION 14.  Section 151.154, Tax Code, is amended by adding

 7-2     Subsection (f) to read as follows:

 7-3           (f)  A purchaser who issues a resale certificate for the

 7-4     purchase of a taxable item is liable for payment of the sales tax

 7-5     on the purchase price of the taxable item if the purchaser uses the

 7-6     item as a part of the excludable consideration on the purchase of

 7-7     another taxable item.

 7-8           SECTION 15.  Section 151.310(c), Tax Code, is amended to read

 7-9     as follows:

7-10           (c)  An organization that qualifies for an exemption under

7-11     Subsection (a)(1) or (a)(2) of this section, and each bona fide

7-12     chapter of the organization, may hold two tax-free sales or

7-13     auctions under this subsection during a calendar year and each

7-14     tax-free sale or auction may continue for one day only.  The sale

7-15     of a taxable item the sales price of which is $5,000 or less by a

7-16     qualified organization or chapter of the organization at a tax-free

7-17     sale or auction is exempted from the sales tax imposed by

7-18     Subchapter C of this chapter.  The storage, use, or consumption of

7-19     a taxable item that is acquired from a qualified organization or

7-20     chapter of the organization at a tax-free sale or auction and that

7-21     is exempted under this subsection from the taxes imposed by

7-22     Subchapter C is exempted from the use tax imposed by Subchapter D

7-23     of this chapter until the item is resold or subsequently

7-24     transferred.

7-25           SECTION 16.  Section 151.318, Tax Code, is amended by adding

7-26     Subsection (r) to read as follows:

7-27           (r)  For the purposes of this section, the manufacturing of

 8-1     computer software begins with the design and writing of the code or

 8-2     program for the software and includes the testing or demonstration

 8-3     of the software.

 8-4           SECTION 17.  Sections 151.321(a) and (c), Tax Code, are

 8-5     amended to read as follows:

 8-6           (a)  A taxable item sold by a qualified student organization

 8-7     and for which the sales price is $5,000 or less is exempted from

 8-8     the taxes imposed by Subchapter C  if the student organization:

 8-9                 (1)  sells the item [items] at a sale that may last for

8-10     one day only and the primary purpose of which is to raise funds for

8-11     the organization; and

8-12                 (2)  holds not more than one sale described by

8-13     Subdivision (1) each month for which an [the] exemption is claimed

8-14     for an item sold.

8-15           (c)  A student organization must file with the comptroller a

8-16     certification issued by the institution, college, or university

8-17     described in Subsection (b)(1) showing that the organization is

8-18     affiliated with the institution, college, or university.  [The

8-19     certification is valid for two years after the date that the

8-20     comptroller receives it.]

8-21           SECTION 18.  Section 151.330(f), Tax Code, is amended to read

8-22     as follows:

8-23           (f)  Services performed for use both within and outside this

8-24     state are exempt to the extent the services are for use outside

8-25     this state and made taxable on or after September 1, 1987.

8-26           SECTION 19.  Section 151.353, Tax Code, is amended by

8-27     amending Subsection (a) and by adding Subsection (d) to read as

 9-1     follows:

 9-2           (a)  Court reporting services relating to the preparation of

 9-3     a document or other record in a civil or criminal suit by a court

 9-4     reporter licensed by the State of Texas Court Reporters

 9-5     Certification Board are exempted from the taxes imposed by this

 9-6     chapter if the document is:

 9-7                 (1)  prepared for the use of a person participating in

 9-8     a suit or the court in which a suit or administrative proceeding is

 9-9     brought; and

9-10                 (2)  sold to a person participating in the suit.

9-11           (d)  Court reporting services by a video photographer who is

9-12     not a court reporter and who videotapes or films a deposition,

9-13     testimony, discovery document, or statement of fact pertaining to a

9-14     civil or criminal suit are exempted from the taxes imposed by this

9-15     chapter if the services are provided and sold as described by

9-16     Subsections (a)(1) and (2).

9-17           SECTION 20.  Section 152.028(a), Tax Code, is amended to read

9-18     as follows:

9-19           (a)  A use tax is imposed on the operator of a motor vehicle

9-20     that was purchased tax-free under Section 152.092 [152.090] of this

9-21     code and that is brought back into this state for use on the public

9-22     highways of this state.  The tax is imposed at the time the motor

9-23     vehicle is brought back into this state.

9-24           SECTION 21.  Section 152.063(e), Tax Code, is amended to read

9-25     as follows:

9-26           (e)  For a retail sale for which the seller receives full

9-27     payment at the time of sale, the seller shall keep, at the seller's

 10-1    principal office for at least four years from the date of the sale,

 10-2    documentation of complete payment in the form of:

 10-3                (1)  a copy of the payment instrument or a receipt for

 10-4    cash received; and

 10-5                (2)  a copy of the receipt for title application,

 10-6    registration, and motor vehicle tax issued by the county tax

 10-7    assessor-collector [or a written statement by the purchaser that:]

 10-8                      [(A)  is signed and dated;]

 10-9                      [(B)  indicates the date on which the seller

10-10    provided to the purchaser each of the documents necessary to apply

10-11    for the title, register the vehicle, and pay the motor vehicle

10-12    sales tax; and]

10-13                      [(C)  includes a statement that the seller

10-14    advised the purchaser that the purchaser must pay a tax to the

10-15    county tax assessor-collector].

10-16          SECTION 22.  Sections 152.0635(c), (d), and (e), Tax Code,

10-17    are amended to read as follows:

10-18          (c)  For retail sales paid in full at the time of sale, the

10-19    seller shall keep at the seller's principal office for at least

10-20    four years from the date of the sale documentation of complete

10-21    payment in the form of:

10-22                (1)  a copy of the payment instrument or a receipt for

10-23    cash received; and

10-24                (2)  a copy of the receipt for title application,

10-25    registration, and motor vehicle tax issued by the county tax

10-26    assessor-collector [or a statement by the purchaser that is signed

10-27    and dated and indicates the date that each of the documents

 11-1    necessary to apply for the title, register the vehicle, and pay the

 11-2    motor vehicle sales tax were provided to the purchaser by the

 11-3    seller].

 11-4          (d)  [The document required under Subsection (c)(2) shall

 11-5    also include a statement that the seller advised the purchaser that

 11-6    the purchaser must pay a tax to the county tax assessor-collector.]

 11-7          [(e)]  For sales for resale, the seller shall keep at the

 11-8    seller's principal office for at least four years from the date of

 11-9    the sale the purchaser's written statement of resale on a form

11-10    prescribed by the comptroller.

11-11          SECTION 23.  Section 152.066(d), Tax Code, is amended to read

11-12    as follows:

11-13          (d)  Except in the case of the gross receipts tax, interest

11-14    begins to accrue on delinquent taxes 60 days after the day on which

11-15    the joint statement [affidavit] was executed.  Delinquent taxes on

11-16    gross rental receipts draw interest beginning 60 days from the due

11-17    date.

11-18          SECTION 24.  Section 152.069(b), Tax Code, is amended to read

11-19    as follows:

11-20          (b)  The seller shall provide to the county tax

11-21    assessor-collector a joint statement [affidavit] as prescribed by

11-22    Section 152.062 in lieu of the motor vehicle sales tax imposed by

11-23    Section 152.021.  The statement [affidavit] shall include the

11-24    seller's permit identification number issued by the comptroller.

11-25          SECTION 25.  Sections 153.017(b) and (g), Tax Code, are

11-26    amended to read as follows:

11-27          (b)  An agreement may provide for:

 12-1                (1)  determining the base state for motor fuel users;

 12-2                (2)  user records requirements;

 12-3                (3)  audit procedures;

 12-4                (4)  exchange of information;

 12-5                (5)  persons eligible for tax licensing;

 12-6                (6)  licensing and license revocation procedures,

 12-7    permits, penalties, and fees;

 12-8                (7)  defining qualified motor vehicles;

 12-9                (8)  determining bonding procedures, types, and

12-10    amounts;

12-11                (9)  specifying reporting requirements and periods;

12-12                (10)  defining refund procedures and limitations,

12-13    including the payment of interest;

12-14                (11)  defining uniform penalties, fees, and interest

12-15    rates;

12-16                (12)  determining methods for collecting motor fuel

12-17    taxes and for collecting and forwarding [of] motor fuel taxes,

12-18    other than penalties, [and interest] due to another jurisdiction;

12-19                (13)  the temporary remittal of funds equal to the

12-20    amount of the taxes[, penalties,] and interest due to another

12-21    jurisdiction but not otherwise collected, subject to appropriation

12-22    of funds for that purpose; and

12-23                (14)  other provisions to facilitate the administration

12-24    of the agreement.

12-25          (g)  The comptroller may segregate in a separate fund or

12-26    account the amount of motor fuel taxes, other than penalties,

12-27    estimated to be due to other jurisdictions, motor fuel taxes [or

 13-1    otherwise] subject to refund during the fiscal year, [penalties and

 13-2    interest on those taxes due other jurisdictions,] licensing fees,

 13-3    and other costs collected under the agreement.  On a determination

 13-4    of an amount held that is due to be remitted to another

 13-5    jurisdiction, the comptroller may issue a warrant or make an

 13-6    electronic transfer of the amount as necessary to carry out the

 13-7    purposes of the agreement.  An auditing cost, membership fee, and

 13-8    other cost associated with the agreement may be paid from interest

 13-9    earned on funds segregated under this subsection.  Any interest

13-10    earnings in excess of the costs associated with the agreement shall

13-11    be credited to general revenue.

13-12          SECTION 26.  Section  153.1195, Tax Code, is amended to read

13-13    as follows:

13-14          Sec. 153.1195.  [REFUNDS AND] CREDITS FOR BAD DEBTS.  (a)  A

13-15    permitted distributor may take a credit on the monthly report to be

13-16    filed with [against taxes to be remitted to] the comptroller [or

13-17    claim a refund on taxes paid to the comptroller] if:

13-18                (1)  the distributor has paid the taxes imposed by this

13-19    subchapter on gasoline sold on account;

13-20                (2)  the distributor determines that the account is

13-21    uncollectable and worthless; and

13-22                (3)  the account is written off as a bad debt on the

13-23    accounting books of the distributor.

13-24          (b)  The amount of the credit that may be taken [or refund

13-25    that may be claimed] under Subsection (a) of this section may equal

13-26    but may not exceed the amount of taxes paid on the gasoline to

13-27    which the written-off account applies.

 14-1          (c)  If, after a credit is taken [or a refund is paid] under

 14-2    Subsection (a)  of this section, the account on which the credit

 14-3    [or refund] was based is paid, or if the comptroller otherwise

 14-4    determines that the credit [or refund] was not authorized by

 14-5    Subsection (a) of this section, the unpaid taxes shall be paid by

 14-6    the distributor taking the credit [or to whom the refund was made],

 14-7    plus a penalty of 10 percent of the amount of the unpaid taxes and

 14-8    interest at the rate provided by Section 111.060 of this code

 14-9    beginning on the day that the credit was taken [or the refund was

14-10    made].

14-11          (d)  This section does not apply to a sale of gasoline that

14-12    is delivered into the fuel supply tank of a motor vehicle or a

14-13    motorboat and for which payment is made through the use and

14-14    acceptance of a credit card.

14-15          SECTION 27.  Section 153.206(f), Tax Code, is amended to read

14-16    as follows:

14-17          (f)  If diesel fuel is purchased, in a single delivery of

14-18    5,000 gallons or more, or in lesser quantities where required by

14-19    city ordinance, by any person for the purpose of resale, the

14-20    seller, supplier [distributor], or broker shall sell the product to

14-21    the retailer or any other person purchasing the product on the

14-22    basis of temperature-corrected gallonage to 60 degrees Fahrenheit

14-23    and the tax shall be computed and paid over to the state on the

14-24    temperature-corrected basis.  All other sales shall be reported to

14-25    the comptroller on the basis of gross or volumetric gallons of

14-26    taxable diesel fuel sold.

14-27          SECTION 28.  Section 153.2225, Tax Code, is amended to read

 15-1    as follows:

 15-2          Sec. 153.2225.  [REFUNDS AND] CREDITS FOR BAD DEBTS.  (a)  A

 15-3    permitted supplier may take a credit on the monthly report to be

 15-4    filed with [against taxes to be remitted to] the comptroller [or

 15-5    claim a refund on taxes paid to the comptroller] if:

 15-6                (1)  the supplier has paid the taxes imposed by this

 15-7    subchapter on diesel fuel sold on account;

 15-8                (2)  the supplier determines that the account is

 15-9    uncollectable and worthless; and

15-10                (3)  the account is written off as a bad debt on the

15-11    accounting books of the supplier.

15-12          (b)  The amount of the credit that may be taken [or refund

15-13    that may be claimed] under Subsection (a) of this section may equal

15-14    but may not exceed the amount of taxes paid on the diesel fuel to

15-15    which the written-off account applies.

15-16          (c)  If, after a credit is taken [or a refund is paid] under

15-17    Subsection (a) of this section, the account on which the credit [or

15-18    refund] was based is paid, or if the comptroller otherwise

15-19    determines that the credit [or refund] was not authorized by

15-20    Subsection (a) of this section, the unpaid taxes shall be paid by

15-21    the supplier taking the credit [or to whom the refund was made],

15-22    plus a penalty of 10 percent of the amount of the unpaid taxes and

15-23    interest at the rate provided by Section 111.060 of this code

15-24    beginning on the day that the credit was taken [or the refund was

15-25    made].

15-26          (d)  This section does not apply to a sale of diesel fuel

15-27    that is delivered into the fuel supply tank of a motor vehicle or

 16-1    motorboat and for which payment is made through the use and

 16-2    acceptance of a credit card.

 16-3          SECTION 29.  Section 211.102, Tax Code, is amended to read as

 16-4    follows:

 16-5          Sec. 211.102.  DAY ON WHICH PAYMENT IS DUE.  Except as

 16-6    provided by Sections 211.103 and 211.104(b), payment [Payment] of a

 16-7    tax imposed by Section 211.051, 211.052, or 211.053 of this code on

 16-8    a decedent's estate is due nine months after the day of the

 16-9    decedent's death.

16-10          SECTION 30.  Section 211.104, Tax Code, is amended to read as

16-11    follows:

16-12          Sec. 211.104.  REPORT OF DETERMINATION OF FEDERAL TAX.  (a)

16-13    Within 30 days after receiving notice or information of the final

16-14    assessment and determination of the value of the taxable estate

16-15    assessed and determined by the federal government for the purpose

16-16    of fixing federal estate taxes on that estate, the personal

16-17    representative shall make to the comptroller a report of the value

16-18    of the estate as so fixed and determined.  The report shall be made

16-19    in a form and contain information as the comptroller directs.

16-20          (b)  Any additional tax due by a decedent's estate as a

16-21    result of an internal revenue service audit or federal tax court

16-22    decision shall be paid to the comptroller not later than the 30th

16-23    day after the date the personal representative receives the notice

16-24    or information of the final assessment and determination of value

16-25    of the taxable estate by the federal government for the purpose of

16-26    fixing federal estate taxes on that estate.  The comptroller shall

16-27    issue a determination if any additional amounts owed to the

 17-1    comptroller are not remitted with a copy of the audit or tax court

 17-2    changes.

 17-3          SECTION 31.  Subchapter C, Tax Code, is amended by adding

 17-4    Section 211.111 to read as follows:

 17-5          Sec. 211.111.  LIMITATIONS.  (a)  The period of limitation

 17-6    provided under Section 111.201 does not begin to run in favor of a

 17-7    decedent's estate, the estate's personal representative, a

 17-8    transferee, a distributee, or any other person liable under Section

 17-9    211.108 or 211.201 until the tax liability of the decedent's estate

17-10    becomes final.  If an extension of time for filing the return or

17-11    paying the tax is granted to the decedent's estate by the

17-12    comptroller under Section 211.103, the extension tolls the

17-13    beginning of the limitation period for the estate's personal

17-14    representative, transferees, distributees, and other persons.

17-15          (b)  A limitation period does not begin to run in favor of a

17-16    decedent's estate, any personal representative, transferee,

17-17    distributee, or other person until the comptroller receives the

17-18    notice or information of the final assessment and determination of

17-19    the value of the decedent's estate for  purpose of fixing federal

17-20    estate taxes on that estate, as required under Section 211.104.

17-21          (c)  If property is transferred from a decedent's estate

17-22    after the comptroller receives notice or information as required

17-23    under Section 211.104 of the final assessment and determination of

17-24    the value of the estate by the federal government and the tax

17-25    remains unpaid, the limitation period does not begin to run in

17-26    favor of a person liable under Section 211.108 or 211.201 until the

17-27    comptroller learns of the transfer.

 18-1          SECTION 32.  Section 211.251, Tax Code, is amended to read as

 18-2    follows:

 18-3          Sec. 211.251.  COMPTROLLER'S AUTHORITY TO EXAMINE BOOKS AND

 18-4    OTHER PROPERTY.  The comptroller may examine books, records,

 18-5    documents, or other property of a decedent's estate or of a

 18-6    personal representative, transferee, or distributee of a decedent's

 18-7    estate at any time [if] the examination is necessary for the

 18-8    comptroller to enforce this chapter without regard to the period

 18-9    provided by Section 111.0041.

18-10          SECTION 33.  Subchapter B, Chapter 403, Government Code, is

18-11    amended by adding Section 403.026 to read as follows:

18-12     Sec. 403.026.  ELECTRONIC STORAGE AND MAINTENANCE OF RECORDS.  (a)

18-13    The comptroller may store and maintain electronically a state

18-14    record or an essential record if:

18-15                (1)  the method used to store and maintain the record

18-16    allows accurate reproduction of the record;

18-17                (2)  the method used to store and maintain the record

18-18    conforms with any standards prescribed by the records preservation

18-19    officer in conformity with any applicable rules of the National

18-20    Institute of Standards and Technology, except that those standards

18-21    do not apply to the extent they conflict with this section; and

18-22                (3)  the place and manner of safekeeping the medium or

18-23    equipment on which the record is stored and maintained conforms

18-24    with the records preservation officer's requirements under Section

18-25    441.059(a), except that the officer may not prohibit the

18-26    comptroller from retaining possession of that medium or equipment.

18-27          (b)  An accurate reproduction of a state record that is

 19-1    stored and maintained according to this section is a preservation

 19-2    duplicate of the record for purposes of Sections 441.058 and

 19-3    441.059, without regard to whether the records preservation

 19-4    officer:

 19-5                (1)  made the reproduction; or

 19-6                (2)  designated the reproduction as a preservation

 19-7    duplicate.

 19-8          (c)  An accurate reproduction of an essential record that is

 19-9    stored and maintained according to this section is a photographic

19-10    reproduction of the record for purposes of Section 441.038(f).

19-11          (d)  An accurate reproduction of a state record or an

19-12    essential record may be in tangible or intangible form, including

19-13    an electronic or optical image of the record.

19-14          (e)  In this section:

19-15                (1)  "Essential record" means written or graphical

19-16    material that is made or received by the comptroller in the conduct

19-17    of official state business and that is filed or intended to be

19-18    preserved permanently or for a definite period as a record of that

19-19    business.

19-20                (2)  "Records preservation officer" means the director

19-21    of the records management division of the Texas State Library.

19-22                (3)  "State record" means a document, book, paper,

19-23    photograph, sound recording, or other material, without regard to

19-24    physical form or characteristic, that is made or received by the

19-25    comptroller according to law or in connection with the transaction

19-26    of official state business.

19-27          SECTION 34.  Section 2155.004, Government Code, is amended to

 20-1    read as follows:

 20-2          Sec. 2155.004.  CERTAIN BIDS AND CONTRACTS PROHIBITED.

 20-3    (a)  A state agency may not accept a bid or award a contract that

 20-4    includes proposed financial participation by a person who received

 20-5    compensation from the agency to participate in preparing the

 20-6    specifications or request for proposals on which the bid or

 20-7    contract is based.

 20-8          (b)  A state agency may not accept a bid or award a contract

 20-9    to any individual not residing in this state or business entity not

20-10    incorporated in or whose principal domicile is not in this state

20-11    unless the individual or business entity:

20-12                (1)  holds a permit issued by the comptroller to

20-13    collect or remit all state and local sales and use taxes that

20-14    become due and owing as a result of the individual's or entity's

20-15    business in this state; or

20-16                (2)  certifies that it does not sell tangible personal

20-17    property or services that are subject to the state and local sales

20-18    and use tax.

20-19          (c)  A bid or award subject to the requirements of this

20-20    section must include the following statement:

20-21          "Under Section 2155.004, Government Code, the vendor

20-22    certifies that the individual or business entity named in this bid

20-23    or contract is not ineligible to receive the specified contract and

20-24    acknowledges that this contract may be terminated and payment

20-25    withheld if this certification is inaccurate."

20-26          (d)  If a state agency determines that an individual or

20-27    business entity holding a state contract was ineligible to have the

 21-1    contract accepted or awarded under Subsection (a) or (b), the state

 21-2    agency may immediately terminate the contract without further

 21-3    obligation to the vendor.

 21-4          (e)  If the certification required under Subsection (b)(2) is

 21-5    shown to be false, the vendor is liable to the state for attorney's

 21-6    fees, the costs necessary to complete the contract, including the

 21-7    cost of advertising and awarding a second contract, and any other

 21-8    damages provided by law or contract.

 21-9          (f)  This section does not create a cause of action to

21-10    contest a bid or award of a state contract.

21-11          (g)  In the absence of a certification by the vendor under

21-12    Subsection (b)(2), the purchasing state agency shall determine if a

21-13    prospective vendor holds a permit for the collection and remission

21-14    of state and local sales and use taxes.

21-15          (h)  This section does not prohibit a bidder or contract

21-16    participant from providing free technical assistance to a state

21-17    agency.

21-18          SECTION 35.  Section 361.472(a), Health and Safety Code, is

21-19    amended to read as follows:

21-20          (a)  A person in the business of selling new or good used

21-21    tires for use on a vehicle, or a person in the business of selling

21-22    used vehicles or used vehicle parts who sells or offers to sell new

21-23    or good used tires not for resale shall collect at the time and

21-24    place of sale a waste tire recycling fee for each tire sold as

21-25    follows:

21-26                (1)  $2 for each new tire that has a rim diameter of 12

21-27    inches or more but less than 17.5 inches and $1 for each good used

 22-1    tire that has a rim diameter of 12 inches or more but less than

 22-2    17.5 inches;

 22-3                (2)  $3.50 for each new tire that has a rim diameter of

 22-4    17.5 inches or greater, other than an off-the-road tire intended

 22-5    for use on heavy machinery, including an earthmover, a

 22-6    loader/dozer, a grader, or mining equipment; and

 22-7                (3)  $2 for a new motorcycle tire, regardless of the

 22-8    rim diameter.

 22-9          SECTION 36.  Subdivision (2), Section 16A, Article 8817,

22-10    Revised Statutes, is amended to read as follows:

22-11          (2)  Machines which are exhibited by a nonlicensed owner

22-12    exempt under this section must be registered with the Comptroller.

22-13    The owner shall obtain a registration certificate each year.  The

22-14    registration certificate shall show the name and address of the

22-15    location of each machine and shall certify that the machine has a

22-16    valid tax stamp affixed to it.  The owner shall obtain his

22-17    registration certificate by filing an [sworn] application in the

22-18    form prescribed by the Comptroller.

22-19          SECTION 37.  The following are repealed:

22-20                (1)  Section 111.0022, Tax Code, as added by Section

22-21    3.28, Chapter 685, Acts of the 73rd Legislature, Regular Session,

22-22    1993; and

22-23                (2)  Section 112.002, Tax Code.

22-24          SECTION 38.  (a)  Except as otherwise provided by this

22-25    section, this Act takes effect September 1, 1997.

22-26          (b)  Sections 10-28 of this Act take effect October 1, 1997.

22-27          SECTION 39.  The importance of this legislation and the

 23-1    crowded condition of the calendars in both houses create an

 23-2    emergency and an imperative public necessity that the

 23-3    constitutional rule requiring bills to be read on three several

 23-4    days in each house be suspended, and this rule is hereby suspended.