1-1     By:  Duncan                                            S.B. No. 640
 1-2           (In the Senate - Filed February 9, 2001; February 13, 2001,
 1-3     read first time and referred to Committee on Finance;
 1-4     February 26, 2001, reported favorably by the following vote:  Yeas
 1-5     11, Nays 0; February 26, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to electronic filing of certain tax reports and payments.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subchapter B, Chapter 111, Tax Code, is amended
1-11     by adding Sections 111.0625 and 111.0626 to read as follows:
1-12           Sec. 111.0625.  ELECTRONIC TRANSFER OF CERTAIN PAYMENTS.  The
1-13     comptroller by rule shall require a taxpayer who paid $100,000 or
1-14     more during the preceding fiscal year in a category of payments
1-15     required under this title to transfer payments in that category by
1-16     means of electronic funds transfer in accordance with Section
1-17     404.095, Government Code, if the comptroller reasonably anticipates
1-18     the person will pay at least that amount during the current fiscal
1-19     year.
1-20           Sec. 111.0626.  ELECTRONIC FILING OF CERTAIN REPORTS.
1-21     (a)  The comptroller by rule shall require electronic filing of a
1-22     report required under Chapter 151, 201, or 202, or an international
1-23     fuel tax agreement, for a taxpayer who is also required under
1-24     Section 111.0625 to transfer payments by electronic funds transfer.
1-25           (b)  The comptroller may adopt rules requiring electronic
1-26     filing of a report not described by Subsection (a).
1-27           (c)  A rule adopted under this section must provide for a
1-28     waiver from the electronic filing requirement for a taxpayer who
1-29     cannot comply.
1-30           SECTION 2.  Section 111.063, Tax Code, is amended to read as
1-31     follows:
1-32           Sec. 111.063.  PENALTY FOR FAILURE TO USE ELECTRONIC
1-33     TRANSFERS AND FILINGS [FUNDS TRANSFER].  (a)  The comptroller may
1-34     impose a penalty of five percent of the tax due on a person who:
1-35                 (1)  is required by statute or rule to pay the tax to
1-36     the comptroller by means of electronic funds transfer[;] and
1-37                 [(2)]  does not pay the tax by means of electronic
1-38     funds transfer; or
1-39                 (2)  is required under Section 111.0626 to file a
1-40     report electronically and does not file the report electronically.
1-41           (b)  The penalties [penalty] provided by this section are
1-42     [is] in addition to any other penalty provided by law.
1-43           SECTION 3.  This Act takes effect immediately if it receives
1-44     a vote of two-thirds of all the members elected to each house, as
1-45     provided by Section 39, Article III, Texas Constitution.  If this
1-46     Act does not receive the vote necessary for immediate effect, this
1-47     Act takes effect September 1, 2001.
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