By Chavez, Gutierrez, Raymond, Oliveira H.B. No. 2582
77R14402 E
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to customs brokers.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 ARTICLE 1
1-5 SECTION 1.01. Sections 151.157(a), (d), (f), and (g), Tax
1-6 Code, are amended to read as follows:
1-7 (a) A customs broker, or an authorized employee of a customs
1-8 broker, licensed by the comptroller under this section may issue
1-9 documentation for the purpose of showing the exemption of tangible
1-10 personal property under Section 151.307(b)(2) only under procedures
1-11 established by this section, Section 151.1575, and by the
1-12 comptroller by rule.
1-13 (d) The amount of the bond or security required by
1-14 Subsection (b)(3) is $5,000 [$500], except that the comptroller may
1-15 require a customs broker to post additional bond or security in an
1-16 amount the comptroller considers necessary to ensure the payment of
1-17 the tax under this chapter and local sales and use taxes. The
1-18 comptroller may not require a bond or security in an amount greater
1-19 than $10,000 [$2,500]. The comptroller may not require the customs
1-20 broker to post more than one bond or security solely because the
1-21 broker has more than one place of business. The security may be in
1-22 the form of cash, a certificate of deposit, a letter of credit, or
1-23 another instrument of value.
1-24 (f) The comptroller may suspend or revoke a license issued
2-1 under this section if the customs broker does not comply with
2-2 Section 151.1575(c) or knowingly or intentionally issues
2-3 documentation that is false to obtain a refund of taxes paid on
2-4 tangible personal property not exported or to assist another person
2-5 in obtaining such a refund [for good cause]. The comptroller may
2-6 determine the length of suspension or revocation necessary for the
2-7 enforcement of this chapter and the comptroller's rules. A
2-8 proceeding to suspend or revoke a license under this subsection is
2-9 a contested case under Chapter 2001, Government Code. Judicial
2-10 review is by trial de novo. The district courts of Travis County
2-11 have exclusive original jurisdiction of a suit under this section.
2-12 (g) A customs broker may authorize a person to act as an
2-13 independent contractor to certify in accordance with Section
2-14 151.1575(a)(1) that tangible personal property has been exported
2-15 outside of the United States only if the authorization is part of
2-16 the written contract and the comptroller in writing approves the
2-17 authorization. A customs broker may not authorize a person under
2-18 this subsection to prepare documentation for the purpose of showing
2-19 the exemption for tangible personal property under Section
2-20 151.307(b)(2).
2-21 SECTION 1.02. Subchapter E, Chapter 151, Tax Code, is
2-22 amended by adding Section 151.1575 to read as follows:
2-23 Sec. 151.1575. REQUIREMENTS RELATING TO ISSUING
2-24 DOCUMENTATION SHOWING EXPORTATION OF PROPERTY. (a) A customs
2-25 broker licensed by the comptroller or an authorized employee of the
2-26 customs broker may issue documentation certifying that delivery of
2-27 tangible personal property was made to a point outside the
3-1 territorial limits of the United States as required by Section
3-2 151.307(b)(2)(B) only if the customs broker or authorized employee:
3-3 (1) actually watches the property cross the border of
3-4 the United States;
3-5 (2) actually watches the property being placed on a
3-6 common carrier for delivery outside the territorial limits of the
3-7 United States; or
3-8 (3) verifies that the purchaser is a foreign national
3-9 who is transporting the property to a destination outside of the
3-10 territorial limits of the United States by:
3-11 (A) examining a picture identification
3-12 indicating that the purchaser of the property resides in a foreign
3-13 country;
3-14 (B) requiring the purchaser to produce the
3-15 original receipt for the property;
3-16 (C) requiring the purchaser to state the foreign
3-17 country destination of the property which must be the foreign
3-18 country in which the purchaser resides;
3-19 (D) requiring the purchaser to state the date
3-20 and time when the property is expected to arrive in the foreign
3-21 country destination;
3-22 (E) requiring the purchaser to state the date
3-23 and time the property was purchased, the name and address of the
3-24 place at which the property was purchased, the sales price and
3-25 quantity of the property, and a description of the property; and
3-26 (F) requiring the purchaser to sign a form:
3-27 (i) stating that the purchaser has
4-1 provided the information and documentation required by this
4-2 subdivision; and
4-3 (ii) that contains a notice to the
4-4 purchaser that tangible personal property not exported is subject
4-5 to taxation under this chapter and the purchaser is liable, in
4-6 addition to other possible civil liabilities and criminal
4-7 penalties, for payment of those taxes if a purchaser improperly
4-8 obtained refund of those taxes.
4-9 (b) A customs broker licensed by the comptroller or an
4-10 authorized employee of the customs broker may issue and deliver
4-11 documentation under Subsection (a) at any time after the tangible
4-12 personal property is purchased and the broker or employee completes
4-13 the process required by Subsection (a). The documentation must
4-14 include:
4-15 (1) the name and address of the customs broker;
4-16 (2) the license number of the customs broker;
4-17 (3) the name and address of the purchaser;
4-18 (4) the name and address of the place at which the
4-19 property was purchased;
4-20 (5) the date and time of the sale;
4-21 (6) a description and the quantity of the property;
4-22 (7) the sales price of the property;
4-23 (8) the foreign country destination of the property,
4-24 which may not be the place of export;
4-25 (9) the date and time:
4-26 (A) at which the customs broker or authorized
4-27 employee actually watched the property cross the border of the
5-1 United States;
5-2 (B) at which the customs broker or authorized
5-3 employee actually watched the property being placed on a common
5-4 carrier for delivery outside the territorial limits of the United
5-5 States; or
5-6 (C) the property is expected to arrive in the
5-7 foreign country destination, as stated by the purchaser;
5-8 (10) a declaration signed by the customs broker or an
5-9 authorized employee of the customs broker stating that the customs
5-10 broker is a licensed Texas customs broker; and
5-11 (11) an export certification stamp issued by the
5-12 comptroller.
5-13 (c) The comptroller may require a customs broker to pay the
5-14 comptroller the amount of any tax refunded if the customs broker
5-15 does not comply with this section, Section 151.157, or the rules
5-16 adopted by the comptroller under this section or Section 151.157.
5-17 In addition to the amount of the refunded tax, the comptroller may
5-18 require the customs broker to pay a penalty in an amount equal to
5-19 two times the amount of the refunded tax, but not less than $500
5-20 nor more than $5,000. The requirement to pay the refunded tax and
5-21 penalty is in addition to any civil or criminal penalty provided by
5-22 law.
5-23 (d) A proceeding to require a customs broker to pay an
5-24 amount under Subsection (c) is a contested case in the same manner
5-25 as a proceeding to revoke or suspend a customs broker's license
5-26 under Section 151.157(f).
5-27 (e) In this section, "customs broker" and "authorized
6-1 employee" have the meanings assigned by Section 151.157.
6-2 (f) This section expires September 1, 2003.
6-3 SECTION 1.03. Section 151.158(g), Tax Code, is amended to
6-4 read as follows:
6-5 (g) The comptroller shall charge an amount of 50 [not to
6-6 exceed five] cents for each stamp. The comptroller shall use the
6-7 money from the sale of the stamps [only] for costs related to
6-8 producing the stamps, including costs of materials, labor, and
6-9 overhead. Any surplus revenue from the sale of stamps shall be
6-10 distributed as follows:
6-11 (1) one-third of the revenue shall be allocated for
6-12 the enforcement of the provisions in Section 151.157; and
6-13 (2) two-thirds of the revenue shall be allocated to
6-14 the Texas Department of Transportation for expenses related to
6-15 transportation infrastructure maintenance and improvement, and such
6-16 revenue shall be expended proportionally in the districts from
6-17 which the stamp fee is raised.
6-18 SECTION 1.04. (a) This article takes effect September 1,
6-19 2001.
6-20 (b) The change in law made by this article does not affect
6-21 taxes imposed before the effective date of this article, and the
6-22 law in effect on the date the taxes were imposed is continued in
6-23 effect for purposes of the liability for and collection of those
6-24 taxes.
6-25 ARTICLE 2
6-26 SECTION 2.01. Sections 151.157(a), (d), (f), and (g), Tax
6-27 Code, are amended to read as follows:
7-1 (a) A customs broker, or an authorized employee of a customs
7-2 broker, licensed by the comptroller under this section may issue
7-3 documentation for the purpose of showing the exemption of tangible
7-4 personal property under Section 151.307(b)(2) only under procedures
7-5 established by the comptroller by rule.
7-6 (d) The amount of the bond or security required by
7-7 Subsection (b)(3) is $500, except that the comptroller may require
7-8 a customs broker to post additional bond or security in an amount
7-9 the comptroller considers necessary to ensure the payment of the
7-10 tax under this chapter and local sales and use taxes. The
7-11 comptroller may not require a bond or security in an amount greater
7-12 than $2,500. The comptroller may not require the customs broker to
7-13 post more than one bond or security solely because the broker has
7-14 more than one place of business. The security may be in the form
7-15 of cash, a certificate of deposit, a letter of credit, or another
7-16 instrument of value.
7-17 (f) The comptroller may suspend or revoke a license issued
7-18 under this section for good cause. The comptroller may determine
7-19 the length of suspension or revocation necessary for the
7-20 enforcement of this chapter and the comptroller's rules. A
7-21 proceeding to suspend or revoke a license under this subsection is
7-22 a contested case under Chapter 2001, Government Code. Judicial
7-23 review is by trial de novo. The district courts of Travis County
7-24 have exclusive original jurisdiction of a suit under this section.
7-25 (g) A customs broker may authorize a person to act as an
7-26 independent contractor to certify that tangible personal property
7-27 has been exported outside of the United States only if the
8-1 authorization is part of the written contract and the comptroller
8-2 in writing approves the authorization. A customs broker may not
8-3 authorize a person under this subsection to prepare documentation
8-4 for the purpose of showing the exemption for tangible personal
8-5 property under Section 151.307(b)(2).
8-6 SECTION 2.02. (a) This article takes effect September 1,
8-7 2003.
8-8 (b) The change in law made by this article does not affect
8-9 taxes imposed before the effective date of this article, and the
8-10 former law is continued in effect for purposes of the liability for
8-11 and collection of those taxes.