By:  Armbrister                                       S.B. No. 1123
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the enforcement and collection of taxes, fees, and
 1-3     other revenue; providing criminal penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 2.12, Code of Criminal Procedure, as
 1-6     amended by Chapters 90, 322, 882, and 974, Acts of the 76th
 1-7     Legislature, Regular Session, 1999, is amended to read as follows:
 1-8           Art. 2.12.  WHO ARE PEACE OFFICERS.  The following are peace
 1-9     officers:
1-10                 (1)  sheriffs, their deputies, and those reserve
1-11     deputies who hold a permanent peace officer license issued under
1-12     Chapter 1701, Occupations [415, Government] Code;
1-13                 (2)  constables, deputy constables, and those reserve
1-14     deputy constables who hold a permanent peace officer license issued
1-15     under Chapter 1701, Occupations [415, Government] Code;
1-16                 (3)  marshals or police officers of an incorporated
1-17     city, town, or village, and those reserve municipal police officers
1-18     who hold a permanent peace officer license issued under Chapter
1-19     1701, Occupations [415, Government] Code;
1-20                 (4)  rangers and officers commissioned by the Public
1-21     Safety Commission and the Director of the Department of Public
1-22     Safety;
1-23                 (5)  investigators of the district attorneys', criminal
1-24     district attorneys', and county attorneys' offices;
1-25                 (6)  law enforcement agents of the Texas Alcoholic
 2-1     Beverage Commission;
 2-2                 (7)  each member of an arson investigating unit
 2-3     commissioned by a city, a county, or the state;
 2-4                 (8)  officers commissioned under Section 37.081,
 2-5     Education Code, or Subchapter E, Chapter 51, Education Code;
 2-6                 (9)  officers commissioned by the General Services
 2-7     Commission;
 2-8                 (10)  law enforcement officers commissioned by the
 2-9     Parks and Wildlife Commission;
2-10                 (11)  airport police officers commissioned by a city
2-11     with a population of more than one million[, according to the most
2-12     recent federal census,] that operates an airport that serves
2-13     commercial air carriers;
2-14                 (12)  airport security personnel commissioned as peace
2-15     officers by the governing body of any political subdivision of this
2-16     state, other than a city described by Subdivision (11), that
2-17     operates an airport that serves commercial air carriers;
2-18                 (13)  municipal park and recreational patrolmen and
2-19     security officers;
2-20                 (14)  security officers and investigators commissioned
2-21     as peace officers by the comptroller;
2-22                 (15)  officers commissioned by a water control and
2-23     improvement district under Section 49.216, Water Code;
2-24                 (16)  officers commissioned by a board of trustees
2-25     under Chapter 54, Transportation Code [341, Acts of the 57th
2-26     Legislature, Regular Session, 1961 (Article 1187f, Vernon's Texas
 3-1     Civil Statutes)];
 3-2                 (17)  investigators commissioned by the Texas State
 3-3     Board of Medical Examiners;
 3-4                 (18)  officers commissioned by the board of managers of
 3-5     the Dallas County Hospital District, the Tarrant County Hospital
 3-6     District, or the Bexar County Hospital District under Section
 3-7     281.057, Health and Safety Code;
 3-8                 (19)  county park rangers commissioned under Subchapter
 3-9     E, Chapter 351, Local Government Code;
3-10                 (20)  investigators employed by the Texas Racing
3-11     Commission;
3-12                 (21)  officers commissioned under Chapter 554,
3-13     Occupations Code [by the State Board of Pharmacy];
3-14                 (22)  officers commissioned by the governing body of a
3-15     metropolitan rapid transit authority under Section 451.108,
3-16     Transportation Code, or by a regional transportation authority
3-17     under Section 452.110, Transportation Code;
3-18                 (23)  investigators commissioned by the attorney
3-19     general under Section 402.009, Government Code;
3-20                 (24)  security officers and investigators commissioned
3-21     as peace officers under Chapter 466, Government Code;
3-22                 (25)  an officer employed by the Texas Department of
3-23     Health under Section 431.2471, Health and Safety Code;
3-24                 (26)  officers appointed by an appellate court under
3-25     Subchapter F, Chapter 53, Government Code;
3-26                 (27)  officers commissioned by the state fire marshal
 4-1     under Chapter 417, Government Code;
 4-2                 (28)  an investigator commissioned by the commissioner
 4-3     of insurance under Article 1.10D, Insurance Code;
 4-4                 (29)  apprehension specialists commissioned by the
 4-5     Texas Youth Commission as officers under Section 61.0931, Human
 4-6     Resources Code; [and]
 4-7                 (30)  officers appointed by the executive director of
 4-8     the Texas Department of Criminal Justice under Section 493.019,
 4-9     Government Code;[.]
4-10                 (31) [(30)]  investigators commissioned by the
4-11     Commission on Law Enforcement Officer Standards and Education under
4-12     Section 1701.160, Occupations [415.016, Government] Code; and[.]
4-13                 (32)  commission [(30)  board] investigators
4-14     commissioned by the Texas Commission on Private Security under
4-15     Section 1702.061(f), Occupations Code [10(f), Private Investigators
4-16     and Private Security Agencies Act (Article 4413(29bb), Vernon's
4-17     Texas Civil Statutes)].
4-18           SECTION 2.  Section 411.109, Government Code, is amended to
4-19     read as follows:
4-20           Sec. 411.109.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
4-21     COMPTROLLER.  (a)  The comptroller is entitled to obtain from the
4-22     department criminal history record information maintained by the
4-23     department that the comptroller believes is necessary for the
4-24     enforcement or administration of Chapter 151, 152, 153, 154, or
4-25     [Chapter] 155, Tax Code, including criminal history record
4-26     information that relates to a person who is:
 5-1                 (1)  an applicant for a permit under any of those
 5-2     chapters [Chapter 154 or Chapter 155, Tax Code];
 5-3                 (2)  a permit holder under any [either] of those
 5-4     chapters;
 5-5                 (3)  an officer, director, stockholder owning 10
 5-6     percent or more of the outstanding stock, partner, owner, or
 5-7     managing employee of an applicant or permit holder under any
 5-8     [either] of those chapters that is a corporation, association,
 5-9     joint venture, syndicate, partnership, or proprietorship;
5-10                 (4)  believed to have violated any of those chapters
5-11     [Chapter 154 or Chapter 155, Tax Code]; or
5-12                 (5)  being considered by the comptroller for employment
5-13     as a peace officer.
5-14           (b)  The comptroller is entitled to obtain from the
5-15     department criminal history record information maintained by the
5-16     department that relates to a person who is an employee of or an
5-17     applicant for employment with the comptroller's office in a
5-18     position that involves:
5-19                 (1)  handling currency, checks, or other funds;
5-20                 (2)  having access to taxpayer account information;
5-21                 (3)  working in a location designated by the
5-22     comptroller as a security-sensitive area; or
5-23                 (4)  performing financial management duties designated
5-24     by the comptroller as security sensitive.
5-25           (c)  The comptroller is entitled to obtain from the
5-26     department criminal history record information maintained by the
 6-1     department that the comptroller believes is necessary for the
 6-2     enforcement or administration of Chapter 159, Tax Code.
 6-3           (d)  Criminal history record information obtained by the
 6-4     comptroller under Subsections (a), [and] (b), and (c) may not be
 6-5     released or disclosed to any person except on court order or as
 6-6     provided by Subsection (e) [(d)].
 6-7           (e) [(d)]  The comptroller is not prohibited from disclosing
 6-8     to a person who is the subject of criminal history record
 6-9     information the dates and places of arrests, the offenses, and the
6-10     dispositions in the criminal history record information.
6-11           SECTION 3.  Section 111.020, Tax Code, is amended by adding
6-12     Subsection (f) to read as follows:
6-13           (f)  Compliance with Subsection (a)  is not a defense to an
6-14     assessment of tax liability under Section 111.024 if:
6-15                 (1)  the amount withheld from the purchase price is not
6-16     sufficient to fully satisfy the liability of the seller of the
6-17     business or stock of goods; and
6-18                 (2)  the purchase price paid to the seller for the
6-19     business or stock of goods is not reasonably equivalent to the
6-20     value of the business or stock of goods.
6-21           SECTION 4.  Subsections (a) and (c), Section 111.021, Tax
6-22     Code, are amended to read as follows:
6-23           (a)  If a person is delinquent in the payment of an amount
6-24     required to be paid or has not paid an amount claimed in a
6-25     determination made against the person, the comptroller may notify
6-26     personally, [or] by [registered] mail, or by means of facsimile or
 7-1     electronic transmission any other person who:
 7-2                 (1)  possesses or controls a credit, bank or savings
 7-3     account, deposit, or other intangible or personal property
 7-4     belonging to the delinquent or the person against whom the unpaid
 7-5     determination is made, hereafter referred to as "assets"; or
 7-6                 (2)  owes a debt to the delinquent or person against
 7-7     whom the unpaid determination is made.
 7-8           (c)  A notice under this section may be given at any time
 7-9     within three years after the payment becomes delinquent or within
7-10     three years after the last recording of a lien filed under this
7-11     title, but not thereafter.  The notice must state the amount of
7-12     taxes, penalties and interest due and owing, and an additional
7-13     amount of penalties and interest that will accrue by operation of
7-14     law in a period not to exceed 30 days and, in the case of a credit,
7-15     bank or savings account or deposit, is effective only up to that
7-16     amount.
7-17           SECTION 5.  Subsection (a), Section 111.022, Tax Code, is
7-18     amended to read as follows:
7-19           (a)  If the comptroller believes that the collection of a tax
7-20     required to be paid to the state or the amount due for a tax period
7-21     [of a determination] is jeopardized by delay, the comptroller shall
7-22     issue a determination stating the amount and that the tax
7-23     collection is in jeopardy.  The amount required to be paid to the
7-24     state or due for the tax period [determined] is due and payable
7-25     immediately.
7-26           SECTION 6.  Subchapter A, Chapter 111, Tax Code, is amended
 8-1     by adding Section 111.024 to read as follows:
 8-2           Sec. 111.024.  LIABILITY IN FRAUDULENT TRANSFERS.  (a)  A
 8-3     person who acquires a business or the assets of a business from a
 8-4     taxpayer through a fraudulent transfer or a sham transaction is
 8-5     liable for any tax, penalty, and interest owed by the taxpayer.
 8-6           (b)  A transfer of a business or the assets of a business is
 8-7     considered to be a fraudulent transfer or a sham transaction if the
 8-8     taxpayer made the transfer or undertook the transaction:
 8-9                 (1)  with intent to evade, hinder, delay, or prevent
8-10     the collection of any tax, penalty, or interest owed under this
8-11     title; or
8-12                 (2)  without receiving a reasonably equivalent value in
8-13     exchange for the business or business assets subject to the
8-14     transfer or transaction.
8-15           (c)  In determining the intent of the taxpayer under
8-16     Subsection (b)(1), consideration may be given, among other factors,
8-17     to whether:
8-18                 (1)  the transfer was to a current or former business
8-19     insider, associate, or employee of the taxpayer or to a person
8-20     related to the taxpayer within the third degree of consanguinity by
8-21     blood or marriage;
8-22                 (2)  the transfer was to a third party who subsequently
8-23     transferred the business or assets of the business to a current or
8-24     former business insider, associate, or employee of the taxpayer or
8-25     to a person related to the taxpayer within the third degree of
8-26     consanguinity by blood or marriage;
 9-1                 (3)  the taxpayer retained possession or control of the
 9-2     business or the assets of the business after the transfer or
 9-3     transaction;
 9-4                 (4)  the taxpayer's business and the transferee's
 9-5     business are essentially operated as a single business entity at
 9-6     the same location;
 9-7                 (5)  before the transfer or the transaction occurred,
 9-8     the taxpayer had either been subjected to or apprised of impending
 9-9     collection action by the comptroller or by the attorney general;
9-10                 (6)  the transfer or transaction was concealed;
9-11                 (7)  the taxpayer was insolvent at the time of the
9-12     transfer or became insolvent not later than the 31st day after the
9-13     date the transfer or transaction occurred; or
9-14                 (8)  the transfer or transaction involved all or
9-15     substantially all of the taxpayer's assets.
9-16           (d)  This section does not apply to a transfer of a business
9-17     or the assets of a business:
9-18                 (1)  through a court order on dissolution of a
9-19     marriage; or
9-20                 (2)  by descent or distribution or testate succession
9-21     on the death of a taxpayer.
9-22           SECTION 7.  Section 113.009, Tax Code, is amended by adding
9-23     Subsection (c) to read as follows:
9-24           (c)  A state tax lien filed under this chapter may not be
9-25     released fully until the taxpayer pays all other taxes, penalties,
9-26     interest, fees, or sums that the taxpayer owes the state and that
 10-1    are administered or collected by the comptroller.
 10-2          SECTION 8.  Subsection (b), Section 113.105, Tax Code, is
 10-3    amended to read as follows:
 10-4          (b)  The state tax lien on personal property and real estate
 10-5    attaches to personal property and real estate owned by the taxpayer
 10-6    beginning on the first day of the period for which [on or after the
 10-7    date] the lien is filed by the state.
 10-8          SECTION 9.  Section 151.023, Tax Code, is amended to read as
 10-9    follows:
10-10          Sec. 151.023.  INVESTIGATIONS AND AUDITS.  (a)  The
10-11    comptroller, or another person authorized by the comptroller in
10-12    writing, may examine, copy, and photograph the books, records,
10-13    papers, and equipment of a person who sells taxable items or of a
10-14    person liable for the use tax and may investigate the character of
10-15    the business of the person to verify the accuracy of the person's
10-16    report or to determine the amount of tax that may be required to be
10-17    paid if no report has been filed.
10-18          (b)  For the purpose of determining the amount of tax
10-19    collected and payable to the state, the amount of tax accruing and
10-20    due, and whether a tax liability has been incurred under this
10-21    chapter, the comptroller or a person authorized by the comptroller
10-22    may:
10-23                (1)  inspect at any time during business hours any
10-24    business premises where a taxable event has occurred and examine,
10-25    copy, and photograph the books, returns, records, papers, and
10-26    equipment relating to the conduct in question; and
 11-1                (2)  require by delivery of written notice to the
 11-2    taxpayer or to an employee, representative, or agent of the
 11-3    taxpayer that, not later than the 10th working day after the date
 11-4    the notice is delivered, the taxpayer produce to an agent or
 11-5    designated representative of the comptroller for inspection the
 11-6    books, records, papers, and returns relating to the taxable
 11-7    activity stated in the notice.
 11-8          SECTION 10.  Subsection (a), Section 151.025, Tax Code, is
 11-9    amended to read as follows:
11-10          (a)  All sellers and all other persons storing, using, or
11-11    consuming in this state a taxable item purchased from a retailer
11-12    shall keep the following records:
11-13                (1)  records of gross receipts, including documentation
11-14    in the form of receipts, shipping manifests, invoices, and other
11-15    pertinent papers, from each rental, lease, taxable service, and
11-16    taxable labor transaction occurring during each reporting period;
11-17                (2)  records in the form of receipts, shipping
11-18    manifests, invoices, and other pertinent papers of all purchases of
11-19    taxable items from every source made during each reporting period;
11-20    and
11-21                (3)  records in the form of receipts, shipping
11-22    manifests, invoices, and other pertinent papers that substantiate
11-23    each claimed deduction or exclusion authorized by law[, receipts,
11-24    invoices, and other pertinent papers in the form that the
11-25    comptroller reasonably requires].
11-26          SECTION 11.  Subsection (b), Section 151.253, Tax Code, is
 12-1    amended to read as follows:
 12-2          (b)  The comptroller shall fix the amount of security
 12-3    required in each case, taking into consideration the amount of tax
 12-4    that has or is expected to become due from the person under this
 12-5    chapter and all other applicable local sales and use taxes [the
 12-6    Local Sales and Use Tax Act] and the necessity to protect the state
 12-7    against the failure to pay these taxes.  The[, except that the]
 12-8    maximum amount of security that may be required is the greater
 12-9    [lesser] of $100,000 [$50,000] or four [three] times the amount of
12-10    the person's average monthly tax liability.
12-11          SECTION 12.  Subchapter L, Chapter 151, Tax Code, is amended
12-12    by adding Section 151.7032 to read as follows:
12-13          Sec. 151.7032.  FAILURE TO PAY TAXES COLLECTED; CRIMINAL
12-14    PENALTY.  (a)  A person commits an offense if the person
12-15    intentionally or knowingly fails to pay to the comptroller, as
12-16    required by this chapter, the tax collected by that person.
12-17          (b)  An offense under this section is:
12-18                (1)  a Class C misdemeanor if the amount of the tax
12-19    collected and not paid is less than $10,000;
12-20                (2)  a state jail felony if the amount of the tax
12-21    collected and not paid is $10,000 or more but less than $20,000;
12-22                (3)  a felony of the third degree if the amount of the
12-23    tax collected and not paid is $20,000 or more but less than
12-24    $100,000; and
12-25                (4)  a felony of the second degree if the amount of the
12-26    tax collected and not paid is $100,000 or more.
 13-1          SECTION 13.  Section 151.708, Tax Code, is amended to read as
 13-2    follows:
 13-3          Sec. 151.708.  SELLING WITHOUT PERMIT; CRIMINAL PENALTY.
 13-4    (a)  A person or officer of a corporation commits an offense if the
 13-5    person or corporation engages in business as a retailer in this
 13-6    state without a permit required by this chapter or after the permit
 13-7    is suspended.
 13-8          (b)  A first [An] offense under this section is a Class C
 13-9    misdemeanor [punishable by a fine of not more than $500].
13-10          (c)  If it is shown on the trial of an offense under this
13-11    section that the person or officer has previously been finally
13-12    convicted of one offense under this section, on conviction the
13-13    person or officer shall be punished for a Class B misdemeanor
13-14    punishable by a fine only, not to exceed $2,000 [A separate offense
13-15    is committed each day that a person or officer of a corporation
13-16    violates this section].
13-17          (d)  If it is shown on the trial of an offense under this
13-18    section that the person or officer has previously been finally
13-19    convicted of two offenses under this section, on conviction the
13-20    person or officer shall be punished for a Class A misdemeanor
13-21    punishable by a fine only, not to exceed $4,000.
13-22          (e)  If it is shown on the trial of an offense under this
13-23    section that the person or officer has previously been finally
13-24    convicted of three or more offenses under this section, on
13-25    conviction the person or officer shall be punished for a Class A
13-26    misdemeanor punishable by a fine not to exceed $4,000, confinement
 14-1    in jail for a term not to exceed one year, or both the fine and
 14-2    confinement.
 14-3          (f)  Each day a person or an officer of a corporation
 14-4    operates a business without a permit or with a suspended permit is
 14-5    a separate offense under this section.
 14-6          SECTION 14.  Section 151.709, Tax Code, is amended to read as
 14-7    follows:
 14-8          Sec. 151.709.  FAILURE TO FURNISH REPORT [OR INFORMATION];
 14-9    CRIMINAL PENALTY.  (a)  A person commits an offense if the person
14-10    refuses to furnish a report [or other data] as required by this
14-11    chapter or by the comptroller as authorized by this chapter.
14-12          (b)  A first [An] offense under this section is a Class C
14-13    misdemeanor [punishable by a fine of not more than $500].
14-14          (c)  If it is shown on the trial of an offense under this
14-15    section that the person has previously been finally convicted of
14-16    one offense under this section, on conviction the person shall be
14-17    punished for a Class B misdemeanor punishable by a fine only, not
14-18    to exceed $2,000.
14-19          (d)  If it is shown on the trial of an offense under this
14-20    section that the person has previously been finally convicted of
14-21    two or more offenses under this section, on conviction the person
14-22    shall be punished for a Class A misdemeanor punishable by a fine
14-23    only, not to exceed $4,000.
14-24          SECTION 15.  Subchapter L, Chapter 151, Tax Code, is amended
14-25    by adding Sections 151.7101, 151.7102, and 151.7103 to read as
14-26    follows:
 15-1          Sec. 151.7101.  ELECTION OF OFFENSES.  If a violation of a
 15-2    criminal provision of this chapter by a taxpayer constitutes
 15-3    another offense under the laws of this state, the state may elect
 15-4    the offense for which it will prosecute the taxpayer.
 15-5          Sec. 151.7102.  FALSE ENTRY OR FAILURE TO ENTER IN RECORDS.
 15-6    (a) A person commits an offense if the person intentionally or
 15-7    knowingly conceals, destroys, makes a false entry in, or fails to
 15-8    make an entry in records that are required to be made or kept under
 15-9    this chapter.
15-10          (b)  An offense under this section is a felony of the third
15-11    degree.
15-12          Sec. 151.7103.  FAILURE TO PRODUCE FOR INSPECTION OR ALLOW
15-13    INSPECTION OF RECORDS.  (a)  A person commits an offense if the
15-14    person is asked, by a person authorized by the comptroller, to
15-15    produce or allow inspection of a record required to be kept under
15-16    this chapter and the person fails to produce the record or allow
15-17    the inspection after the allowed time.
15-18          (b)  An offense under this section is a Class C misdemeanor.
15-19    Each day the person fails to allow inspection of records or produce
15-20    records for inspection  after receiving a request is a separate
15-21    offense.
15-22          SECTION 16.  Subchapter L, Chapter 151, Tax Code, is amended
15-23    by adding Section 151.714 to read as follows:
15-24          Sec. 151.714.  VENUE FOR CRIMINAL PROSECUTION.  Venue for
15-25    prosecution for an offense under this chapter is in:
15-26                (1)  the county in which any element of the offense
 16-1    occurs; or
 16-2                (2)  Travis County.
 16-3          SECTION 17.  Subsection (b), Section 152.101, Tax Code, is
 16-4    amended to read as follows:
 16-5          (b)  An offense under this section is a felony of the third
 16-6    degree [punishable by imprisonment for not less than two nor more
 16-7    than five years or a fine of not more than $1,000, or both].
 16-8          SECTION 18.  Subsection (b), Section 152.102, Tax Code, is
 16-9    amended to read as follows:
16-10          (b)  An offense under this section is a Class C misdemeanor
16-11    [punishable by a fine of not less than $10 nor more than $500 or
16-12    confinement in the county jail for not less than one day nor more
16-13    than 30 days, or both].
16-14          SECTION 19.  Subsection (b), Section 152.103, Tax Code, is
16-15    amended to read as follows:
16-16          (b)  An offense under this section is a Class C misdemeanor
16-17    [punishable by a fine of not less than $25 nor more than $500].
16-18          SECTION 20.  Subchapter F, Chapter 152, Tax Code, is amended
16-19    by adding Sections 152.104 and 152.105 to read as follows:
16-20          Sec. 152.104.  FAILURE TO REMIT TAX COLLECTED.  (a)  A person
16-21    who is a dealer, as defined by Section 503.001, Transportation
16-22    Code, or who is acting in the capacity of a dealer, commits an
16-23    offense if the person intentionally or knowingly fails to pay to
16-24    the tax assessor-collector the motor vehicle sales tax collected as
16-25    required by this chapter.
16-26          (b)  An offense under this section is:
 17-1                (1)  a Class C misdemeanor if the value of the tax
 17-2    collected and not paid is less than $1,500;
 17-3                (2)  a state jail felony if the value of the tax
 17-4    collected and not paid is $1,500 or more but less than $20,000;
 17-5                (3)  a felony of the third degree if the value of the
 17-6    tax collected and not paid is $20,000 or more but less than
 17-7    $100,000;
 17-8                (4)  a felony of the second degree if the value of the
 17-9    tax collected and not paid is $100,000 or more but less than
17-10    $200,000; and
17-11                (5)  a felony of the first degree if the value of the
17-12    tax collected and not paid is $200,000 or more.
17-13          (c)  When amounts are obtained in violation of this section
17-14    pursuant to one scheme or continuing course of conduct, whether
17-15    from the same or several resources, the conduct may be considered
17-16    as one offense and the amounts aggregated in determining the grade
17-17    of the offense.
17-18          Sec. 152.105.  VENUE FOR CRIMINAL PROSECUTIONS. Venue for
17-19    prosecution of any offense under this chapter is in:
17-20                (1)  the county in which any element of the offense
17-21    occurs; or
17-22                (2)  Travis County.
17-23          SECTION 21.  Subsection (a), Section 153.402, Tax Code, is
17-24    amended to read as follows:
17-25          (a)  A person forfeits to the state a civil penalty of not
17-26    less than $25 nor more than $200 if the person:
 18-1                (1)  refuses to stop and permit the inspection and
 18-2    examination of a motor vehicle transporting or using motor fuel on
 18-3    demand of a peace officer or the comptroller;
 18-4                (2)  operates a motor vehicle in this state without a
 18-5    valid interstate trucker's or a trip permit when the person is
 18-6    required to hold one of those permits;
 18-7                (3)  operates a liquefied gas-propelled motor vehicle
 18-8    that is required to be licensed in Texas, including motor vehicles
 18-9    equipped with dual carburetion, and does not display a current
18-10    liquefied gas tax decal or multistate fuels tax agreement decal;
18-11                (4)  makes a tax-free sale or delivery of liquefied gas
18-12    into the fuel supply tank of a motor vehicle that does not display
18-13    a current Texas liquefied gas tax decal;
18-14                (5)  makes a taxable sale or delivery of liquefied gas
18-15    without holding a valid dealer's permit;
18-16                (6)  makes a tax-free sale or delivery of liquefied gas
18-17    into the fuel supply tank of a motor vehicle bearing out-of-state
18-18    license plates;
18-19                (7)  makes a delivery of liquefied gas into the fuel
18-20    supply tank of a motor vehicle bearing Texas license plates and no
18-21    Texas liquefied gas tax decal, unless licensed under a multistate
18-22    fuels tax agreement;
18-23                (8)  transports gasoline or diesel fuel in any cargo
18-24    tank that has a connection by pipe, tube, valve, or otherwise with
18-25    the fuel injector or carburetor or with the fuel supply tank
18-26    feeding the fuel injector or carburetor of the motor vehicle
 19-1    transporting the product;
 19-2                (9)  sells or delivers gasoline or diesel fuel from any
 19-3    fuel supply tank connected with the fuel injector or carburetor of
 19-4    a motor vehicle;
 19-5                (10)  owns or operates a motor vehicle for which
 19-6    reports or mileage records are required by this chapter without an
 19-7    operating odometer or other device in good working condition to
 19-8    record accurately the miles traveled;
 19-9                (11)  furnishes to a supplier a signed statement [to a
19-10    supplier] for purchasing diesel fuel tax free and then uses the
19-11    tax-free diesel fuel to operate a diesel-powered motor vehicle on a
19-12    public highway [of a type that may be legally used by the purchaser
19-13    for the operation of a motor vehicle on the public highway under
19-14    state or federal law tax free when he owns, operates, or acquires a
19-15    diesel-powered motor vehicle];
19-16                (12)  fails or refuses to comply with or violates a
19-17    provision of this chapter;
19-18                (13)  fails or refuses to comply with or violates a
19-19    comptroller's rule for administering or enforcing this chapter;
19-20                (14)  is an importer who does not obtain an import
19-21    verification number when required by this chapter; or
19-22                (15)  purchases motor fuel for export, on which the tax
19-23    imposed by this chapter has not been paid, and subsequently diverts
19-24    or causes the motor fuel to be diverted to a destination in this
19-25    state or any other state or country other than the originally
19-26    designated state or country without first obtaining a diversion
 20-1    number.
 20-2          SECTION 22.  Section 153.403, Tax Code, is amended to read as
 20-3    follows:
 20-4          Sec. 153.403.  CRIMINAL OFFENSES.  Except as provided by
 20-5    Section 153.404 [of this code], a person commits an offense if the
 20-6    person:
 20-7                (1)  refuses to stop and permit the inspection and
 20-8    examination of a motor vehicle transporting or using motor fuel on
 20-9    the demand of a peace officer or the comptroller;
20-10                (2)  is required to hold a valid trip permit or
20-11    interstate trucker's permit, but operates a motor vehicle in this
20-12    state without a valid trip permit or interstate trucker's permit;
20-13                (3)  operates a liquefied gas-propelled motor vehicle
20-14    that is required to be licensed in Texas, including a motor vehicle
20-15    equipped with dual carburetion, and does not display a current
20-16    liquefied gas tax decal or multistate fuels tax agreement decal;
20-17                (4)  transports gasoline or diesel fuel in any cargo
20-18    tank that has a connection by pipe, tube, valve, or otherwise with
20-19    the fuel injector or carburetor or with the fuel supply tank
20-20    feeding the fuel injector or carburetor of the motor vehicle
20-21    transporting the product;
20-22                (5)  sells or delivers gasoline or diesel fuel from a
20-23    fuel supply tank that is connected with the fuel injector or
20-24    carburetor of a motor vehicle;
20-25                (6)  owns or operates a motor vehicle for which reports
20-26    or mileage records are required by this chapter without an
 21-1    operating odometer or other device in good working condition to
 21-2    record accurately the miles traveled;
 21-3                (7)  as a diesel tax prepaid user fails to prepay the
 21-4    tax on every diesel-powered motor vehicle owned or operated by him;
 21-5                (8)  uses dyed diesel fuel, on which a tax is required
 21-6    to be paid, for the operation of a motor vehicle on a public
 21-7    highway;
 21-8                (9)  makes a tax-free sale or delivery of liquefied gas
 21-9    into the fuel supply tank of a motor vehicle that does not display
21-10    a current Texas liquefied gas tax decal;
21-11                (10)  makes a sale or delivery of liquefied gas on
21-12    which the person knows the tax is required to be collected, if at
21-13    the time the sale is made the person does not hold a valid dealer's
21-14    permit;
21-15                (11)  makes a tax-free sale or delivery of liquefied
21-16    gas into the fuel supply tank of a motor vehicle bearing
21-17    out-of-state license plates;
21-18                (12)  makes a delivery of liquefied gas into the fuel
21-19    supply tank of a motor vehicle bearing Texas license plates and no
21-20    Texas liquefied gas tax decal, unless licensed under a multistate
21-21    fuels tax agreement;
21-22                (13)  refuses to permit the comptroller or the attorney
21-23    general to inspect, examine, or audit a book or record required to
21-24    be kept by a distributor, supplier, dyed diesel fuel bonded user,
21-25    agricultural bonded user, dealer, interstate trucker, aviation fuel
21-26    dealer, jobber, common or contract carrier, or any person required
 22-1    to hold a permit under this chapter;
 22-2                (14)  refuses to permit the comptroller or the attorney
 22-3    general to inspect or examine any plant, equipment, materials, or
 22-4    premises where motor fuel is produced, processed, stored, sold,
 22-5    delivered, or used;
 22-6                (15)  refuses to permit the comptroller, [or] the
 22-7    attorney general, an employee of either of those officials, a peace
 22-8    officer, an employee of the Texas Natural Resource Conservation
 22-9    Commission, or an employee of the Department of Agriculture to
22-10    measure or gauge the contents of or take samples from a storage
22-11    tank or container on premises where motor fuel is produced,
22-12    processed, stored, sold, delivered, or used;
22-13                (16)  is a distributor, dyed diesel fuel bonded user,
22-14    agricultural bonded user, interstate trucker, or supplier and fails
22-15    or refuses to make or deliver to the comptroller a report required
22-16    by this chapter to be made and delivered to the comptroller;
22-17                (17)  is an importer who does not obtain an import
22-18    verification number when required by this chapter;
22-19                (18)  purchases motor fuel for export, on which the tax
22-20    imposed by this chapter has not been paid, and subsequently diverts
22-21    or causes the motor fuel to be diverted to a destination in this
22-22    state or any other state or country other than the originally
22-23    designated state or country without first obtaining a diversion
22-24    number;
22-25                (19)  conceals motor fuel with the intent of engaging
22-26    in any conduct proscribed by this chapter or refuses to make sales
 23-1    of motor fuel on the volume-corrected basis prescribed by this
 23-2    chapter;
 23-3                (20)  refuses, while transporting motor fuel, to stop
 23-4    the motor vehicle he is operating when called on to do so by a
 23-5    person authorized to stop the motor vehicle;
 23-6                (21)  refuses to surrender a motor vehicle and cargo
 23-7    for impoundment after being ordered to do so by a person authorized
 23-8    to impound the motor vehicle and cargo;
 23-9                (22)  mutilates, destroys, or secretes a book or record
23-10    required by this chapter to be kept by a distributor, supplier,
23-11    dyed diesel fuel bonded user, agricultural bonded user, dealer,
23-12    interstate trucker, aviation fuel dealer, jobber, or person
23-13    required to hold a permit under this chapter;
23-14                (23)  is a distributor, supplier, dyed diesel fuel
23-15    bonded user, agricultural bonded user, dealer, interstate trucker,
23-16    aviation fuel dealer, jobber, or other person required to hold a
23-17    permit under this chapter, or the agent or employee of one of those
23-18    persons and makes a false entry or fails to make an entry in the
23-19    books and records required under this chapter to be made by the
23-20    person or fails to retain a document as required by this chapter;
23-21                (24)  transports in any manner motor fuel under a false
23-22    cargo manifest or shipping document, or transports in any manner
23-23    motor fuel to a location without delivering at the same time a
23-24    shipping document relating to that shipment;
23-25                (25)  engages in a motor fuel transaction that requires
23-26    that the person have a permit under this chapter without then and
 24-1    there holding the required permit;
 24-2                (26)  makes and delivers to the comptroller a report
 24-3    required under this chapter to be made and delivered to the
 24-4    comptroller, if the report contains false information;
 24-5                (27)  forges, falsifies, or alters an invoice
 24-6    prescribed by law;
 24-7                (28)  makes any statement, knowing said statement to be
 24-8    false, in a claim for a tax refund filed with the comptroller;
 24-9                (29)  furnishes to a supplier a signed statement for
24-10    purchasing diesel fuel tax free and then uses the tax-free diesel
24-11    fuel to operate a diesel-powered motor vehicle on a public highway
24-12    [of a type that may be legally used by the purchaser for the
24-13    operation of a motor vehicle on the public highway under state or
24-14    federal law tax free when he owns, operates, or acquires a
24-15    diesel-powered motor vehicle];
24-16                (30)  holds an aviation fuel dealer's permit and makes
24-17    a taxable sale or use of any gasoline or diesel fuel;
24-18                (31)  fails to remit any tax funds collected by a
24-19    distributor, supplier, dyed diesel fuel bonded user, agricultural
24-20    bonded user, dealer, interstate trucker, jobber, or any other
24-21    person required to hold a permit under this chapter;
24-22                (32)  makes a sale of diesel fuel tax free into a
24-23    storage facility of a person who:
24-24                      (A)  is not permitted as a supplier, as an
24-25    aviation fuel dealer, as a dyed diesel fuel bonded user, as an
24-26    agricultural bonded user, or as a diesel tax prepaid user of diesel
 25-1    fuel; or
 25-2                      (B)  does not furnish to the permitted supplier a
 25-3    signed statement prescribed in Section 153.205 [of this code];
 25-4                (33)  makes a sale of gasoline tax free to any person
 25-5    who is not permitted as either a distributor or an aviation fuel
 25-6    dealer;
 25-7                (34)  is a dealer who purchases any motor fuel tax free
 25-8    when not authorized to make a tax-free purchase under this chapter;
 25-9                (35)  is a dealer who purchases motor fuel with the
25-10    intent to evade any tax imposed by this chapter, or who accepts a
25-11    delivery of motor fuel by any means and does not at the same time
25-12    accept or receive a shipping document relating to the delivery;
25-13                (36)  transports motor fuel for which a cargo manifest
25-14    or shipping document is required to be carried without possessing
25-15    or exhibiting on demand by an officer authorized to make the demand
25-16    a cargo manifest or shipping document containing the information
25-17    required to be shown on the manifest or shipping document;
25-18                (37)  imports, sells, uses, distributes, or stores
25-19    motor fuel within this state on which the taxes imposed by this
25-20    chapter are owed but have not been first paid to or reported by the
25-21    holder of a distributor, supplier, liquefied gas dealer, interstate
25-22    trucker, diesel tax prepaid user, dyed diesel fuel bonded user, or
25-23    agricultural bonded user permit;
25-24                (38)  blends products together to produce a blended
25-25    fuel that is offered for sale, sold, or used that expands the
25-26    volume of the original product to evade paying applicable motor
 26-1    fuel taxes; or
 26-2                (39)  evades or attempts to evade in any manner a tax
 26-3    imposed on motor fuel by this chapter.
 26-4          SECTION 23.  Subsections (c) and (d), Section 153.404, Tax
 26-5    Code, are amended to read as follows:
 26-6          (c)  The prohibition under Section 153.403(32) does not apply
 26-7    to the tax-free sale or distribution of diesel fuel authorized by
 26-8    Section 153.203(1), (2), [or] (5), (8), or (9).
 26-9          (d)  The prohibition under Section 153.403(33) does not apply
26-10    to the tax-free sale or distribution of gasoline under Section
26-11    153.104(2), [or] (4), (7), or (8).
26-12          SECTION 24.  Subsection (b), Section 183.053, Tax Code, is
26-13    amended to read as follows:
26-14          (b)  The total of bonds, certificates of deposit, letters of
26-15    credit, or other security determined to be sufficient by the
26-16    comptroller of a permittee subject to the tax imposed by this
26-17    chapter shall be in an amount that the comptroller determines to be
26-18    sufficient to protect the fiscal interests of the state.  The
26-19    comptroller may not set the amount of security at less than $1,000
26-20    or more than $50,000 [$25,000].
26-21          SECTION 25.  Section A, Article 8.15, Texas Business
26-22    Corporation Act, is amended to read as follows:
26-23          A.  The original and a copy of such application for
26-24    withdrawal, along with a certificate from the comptroller
26-25    [Comptroller of Public Accounts] that all [franchise] taxes,
26-26    including all applicable penalties and interest, administered by
 27-1    the comptroller under Title 2, Tax Code, have been paid, shall be
 27-2    delivered to the secretary of state [Secretary of State].  If the
 27-3    secretary of state [Secretary of State] finds that such application
 27-4    conforms to the provisions of this Act, the secretary of state
 27-5    [Secretary of State] shall, when the appropriate filing fee is paid
 27-6    as required by law:
 27-7                (1)  Endorse on the original and the copy the word
 27-8    "Filed," and the month, day, and year of the filing thereof.
 27-9                (2)  File the original in the office of the secretary
27-10    of state [Secretary of State].
27-11                (3)  Issue a certificate of withdrawal to which shall
27-12    be affixed the copy.
27-13          SECTION 26.  Section A, Article 6.08, Texas Limited Liability
27-14    Company Act (Article 1528n, Vernon's Texas Civil Statutes), is
27-15    amended to read as follows:
27-16          A.  The original and a copy of such articles of dissolution,
27-17    along with a certificate from the comptroller that all [franchise]
27-18    taxes, including all applicable penalties and interest,
27-19    administered by the comptroller under Title 2, Tax Code, have been
27-20    paid, shall be delivered to the secretary of state [Secretary of
27-21    State].  If the secretary of state [Secretary of State] finds that
27-22    such articles of dissolution conform to law, the secretary of state
27-23    [Secretary of State] shall, when the appropriate filing fee is paid
27-24    as required by law:
27-25                (1)  Endorse on the original and copy the word "Filed,"
27-26    and the month, day, and year of the filing thereof.
 28-1                (2)  File the original in the secretary of state's
 28-2    [Secretary of State's] office.
 28-3                (3)  Issue a certificate of dissolution to which there
 28-4    shall be affixed the copy.
 28-5          SECTION 27.  Section A, Article 7.10, Texas Limited Liability
 28-6    Company Act (Article 1528n, Vernon's Texas Civil Statutes), is
 28-7    amended to read as follows:
 28-8          A.  The original and a copy of such application for
 28-9    withdrawal, along with a certificate from the comptroller that all
28-10    [franchise] taxes, including penalties and interest, administered
28-11    by the comptroller under Title 2, Tax Code, have been paid, shall
28-12    be delivered to the secretary of state [Secretary of State].  If
28-13    the secretary of state [Secretary of State] finds that such
28-14    application conforms to the provisions of this Act, the secretary
28-15    of state [Secretary of State] shall, when the appropriate filing
28-16    fee is paid as required by law:
28-17                (1)  Endorse on the original and the copy the word
28-18    "Filed," and the month, day, and year of the filing thereof.
28-19                (2)  File the original in the secretary of state's
28-20    [Secretary of State's] office.
28-21                (3)  Issue a certificate of withdrawal to which there
28-22    shall be affixed the copy.
28-23          SECTION 28.  Section 151.710, Tax Code, is repealed.
28-24          SECTION 29.  (a)  This Act takes effect September 1, 2001.
28-25          (b)  The changes in law made by Sections 7 and 8 of this Act
28-26    apply only to a lien filed on or after the effective date of this
 29-1    Act.  A lien filed before the effective date of this Act is
 29-2    governed by the law in effect on the date the lien was filed, and
 29-3    that law is continued in effect for that purpose.
 29-4          (c)  The changes in law made by Sections 12 through 20 and by
 29-5    Sections 22 and 23 of this Act apply only to an offense committed
 29-6    on or after the effective date of this Act.  For purposes of this
 29-7    subsection, an offense is committed before the effective date of
 29-8    this Act if any element of the offense is committed before that
 29-9    date.  An offense committed before the effective date of this Act
29-10    is covered by the law in effect when the offense was committed, and
29-11    the former law is continued in effect for that purpose.
29-12          (d)  The change in law made by Section 22 of this Act applies
29-13    only to a signed statement furnished on or after the effective date
29-14    of this Act.  A signed statement furnished before the effective
29-15    date of this Act is governed by the law in effect on the date the
29-16    statement was furnished, and that law is continued in effect for
29-17    that purpose.