77R10383 SMJ-F                           
         By Davis of Dallas                                    H.B. No. 3608
         Substitute the following for H.B. No. 3608:
         By Bonnen                                         C.S.H.B. No. 3608
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain administrative procedures for tax refunds.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Sections 111.104(a) and (f), Tax Code, are amended
 1-5     to read as follows:
 1-6           (a)  If the comptroller finds that an amount of tax, penalty,
 1-7     or interest has been [unlawfully or] erroneously collected, the
 1-8     comptroller shall credit the amount against any other amount when
 1-9     due and payable by the taxpayer from whom the amount was collected.
1-10     The remainder of the amount, if any, shall [may] be refunded to the
1-11     taxpayer [from money appropriated for tax refund purposes].
1-12           (f)  No taxes, penalties, or interest may be refunded to a
1-13     person who has collected the taxes from another person unless the
1-14     person has refunded all the taxes, penalties, and interest to the
1-15     person from whom the taxes were collected.
1-16           SECTION 2. Sections 111.105(a) and (b), Tax Code, are amended
1-17     to read as follows:
1-18           (a)  A person claiming a refund under Section 111.104 [of
1-19     this code] is entitled to a hearing on the claim if the person
1-20     requests a hearing in accordance with procedures prescribed by the
1-21     comptroller.  The person is entitled to 30 [20] days' notice of the
1-22     time and place of the hearing.
1-23           (b)  A decision of the comptroller following a hearing on a
1-24     claim for a refund becomes final 30 [20] days after service on the
 2-1     claimant of the notice of the order or decision.
 2-2           SECTION 3. (a)  Section 111.105(b), Tax Code, as amended by
 2-3     this Act, applies only to a decision of the comptroller under that
 2-4     subsection that is made on or after the effective date of this Act.
 2-5     A decision of the comptroller under that subsection that is made
 2-6     before that date is governed by the law in effect on the date it
 2-7     was made, and that law is continued in effect for that purpose.
 2-8           (b)  This Act takes effect September 1, 2001.