By Davis of Dallas                                    H.B. No. 3608
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to tax administration and procedure.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 111.104, Tax Code, amended to read as
 1-5     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, [may] shall be refunded to the
1-11     taxpayer [from money appropriated for tax refund purposes].
1-12           (b)  A tax refund claim may be filed with the comptroller by
1-13     the person who paid the tax or by the person's attorney, assignee,
1-14     or other successor.
1-15           (c)  A claim for a refund must:
1-16                 (1)  be written;
1-17                 (2)  state the grounds on which the claim is founded;
1-18     and
1-19                 (3)  be filed before the expiration of the applicable
1-20     limitation period as provided by this code or before the expiration
1-21     of the six months after a jeopardy or deficiency determination
1-22     becomes final, whichever period expires later.
1-23           (d)  A refund claim for an amount of tax, penalty, and
 2-1     interest and the tax payment period for which the determination was
 2-2     issued.  The failure to file a timely tax refund claim is a waiver
 2-3     of any demand against the state for an alleged overpayment.
 2-4           (e)  This section applies to all taxes and license fees
 2-5     collected or administered by the comptroller, except the state
 2-6     property tax.
 2-7           (f)  No taxes, penalties, or interest may be refunded to a
 2-8     person who has collected the taxes from another person unless the
 2-9     person has refunded all the taxes, penalties, and interest to the
2-10     person from whom the taxes were collected.
2-11           SECTION 2.  Section 111.105, Tax Code, amended to read as
2-12     follows:
2-13           (a)  A person claiming a refund under Section 111.104 of this
2-14     code is entitled to a hearing on the claim if the person requests a
2-15     hearing in accordance with procedures prescribed by the
2-16     comptroller.  The person is entitled to [20] 30 days' notice of the
2-17     time and place of the hearing.
2-18           (b)  A decision of the comptroller following a hearing on a
2-19     claim for a refund becomes final [20] 30 days after service on the
2-20     claimant of the notice of the order or decision.
2-21           (c)  A tax refund claimant who is dissatisfied with the
2-22     decision on the claim is entitled to file a motion for rehearing.
2-23           (d)  A motion for rehearing on a tax refund claim must be
2-24     written and assert each specific ground of error.  The amount of
2-25     the refund must be set out in the motion for rehearing.
2-26           SECTION 3. Each change in law made by this Act is a
 3-1     clarification of existing law and does not imply that existing law
 3-2     may be construed as inconsistent with the law as amended by this
 3-3     Act.
 3-4           SECTION 4. This Act takes effect October 1, 2001.
 3-5           SECTION 5. The importance of this legislation and the
 3-6     condition of the calendars in both houses create an emergency and
 3-7     an imperative public necessity that the constitutional rule
 3-8     requiring bills to be read on three several days in each house be
 3-9     suspended, and this rule is hereby suspended.