77R12463 CBH-F                          
         By Armbrister                                         S.B. No. 1123
         Substitute the following for S.B. No. 1123:
         By McCall                                         C.S.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;
 2-1                 (6)  law enforcement agents of the Texas Alcoholic
 2-2     Beverage Commission;
 2-3                 (7)  each member of an arson investigating unit
 2-4     commissioned by a city, a county, or the state;
 2-5                 (8)  officers commissioned under Section 37.081,
 2-6     Education Code, or Subchapter E, Chapter 51, Education Code;
 2-7                 (9)  officers commissioned by the General Services
 2-8     Commission;
 2-9                 (10)  law enforcement officers commissioned by the
2-10     Parks and Wildlife Commission;
2-11                 (11)  airport police officers commissioned by a city
2-12     with a population of more than one million[, according to the most
2-13     recent federal census,] that operates an airport that serves
2-14     commercial air carriers;
2-15                 (12)  airport security personnel commissioned as peace
2-16     officers by the governing body of any political subdivision of this
2-17     state, other than a city described by Subdivision (11), that
2-18     operates an airport that serves commercial air carriers;
2-19                 (13)  municipal park and recreational patrolmen and
2-20     security officers;
2-21                 (14)  security officers and investigators commissioned
2-22     as peace officers by the comptroller;
2-23                 (15)  officers commissioned by a water control and
2-24     improvement district under Section 49.216, Water Code;
2-25                 (16)  officers commissioned by a board of trustees
2-26     under Chapter 54, Transportation Code [341, Acts of the 57th
2-27     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
3-27     under Chapter 417, Government Code;
 4-1                 (28)  an investigator commissioned by the commissioner
 4-2     of insurance under Article 1.10D, Insurance Code;
 4-3                 (29)  apprehension specialists commissioned by the
 4-4     Texas Youth Commission as officers under Section 61.0931, Human
 4-5     Resources Code; [and]
 4-6                 (30)  officers appointed by the executive director of
 4-7     the Texas Department of Criminal Justice under Section 493.019,
 4-8     Government Code;[.]
 4-9                 (31) [(30)]  investigators commissioned by the
4-10     Commission on Law Enforcement Officer Standards and Education under
4-11     Section 1701.160, Occupations [415.016, Government] Code; and[.]
4-12                 (32)  commission [(30)  board] investigators
4-13     commissioned by the Texas Commission on Private Security under
4-14     Section 1702.061(f), Occupations Code [10(f), Private Investigators
4-15     and Private Security Agencies Act (Article 4413(29bb), Vernon's
4-16     Texas Civil Statutes)].
4-17           SECTION 2.  Section 411.109, Government Code, is amended to
4-18     read as follows:
4-19           Sec. 411.109.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
4-20     COMPTROLLER.  (a)  The comptroller is entitled to obtain from the
4-21     department criminal history record information maintained by the
4-22     department that the comptroller believes is necessary for the
4-23     enforcement or administration of Chapter 151, 152, 153, 154, or
4-24     [Chapter] 155, Tax Code, including criminal history record
4-25     information that relates to a person who is:
4-26                 (1)  an applicant for a permit under any of those
4-27     chapters [Chapter 154 or Chapter 155, Tax Code];
 5-1                 (2)  a permit holder under any [either] of those
 5-2     chapters;
 5-3                 (3)  an officer, director, stockholder owning 10
 5-4     percent or more of the outstanding stock, partner, owner, or
 5-5     managing employee of an applicant or permit holder under any
 5-6     [either] of those chapters that is a corporation, association,
 5-7     joint venture, syndicate, partnership, or proprietorship;
 5-8                 (4)  believed to have violated any of those chapters
 5-9     [Chapter 154 or Chapter 155, Tax Code]; or
5-10                 (5)  being considered by the comptroller for employment
5-11     as a peace officer.
5-12           (b)  The comptroller is entitled to obtain from the
5-13     department criminal history record information maintained by the
5-14     department that relates to a person who is an employee of or an
5-15     applicant for employment with the comptroller's office in a
5-16     position that involves:
5-17                 (1)  handling currency, checks, or other funds;
5-18                 (2)  having access to taxpayer account information;
5-19                 (3)  working in a location designated by the
5-20     comptroller as a security-sensitive area; or
5-21                 (4)  performing financial management duties designated
5-22     by the comptroller as security sensitive.
5-23           (c)  The comptroller is entitled to obtain from the
5-24     department criminal history record information maintained by the
5-25     department that the comptroller believes is necessary for the
5-26     enforcement or administration of Chapter 159, Tax Code.
5-27           (d)  Criminal history record information obtained by the
 6-1     comptroller under Subsections (a), [and] (b), and (c) may not be
 6-2     released or disclosed to any person except on court order or as
 6-3     provided by Subsection (e) [(d)].
 6-4           (e) [(d)]  The comptroller is not prohibited from disclosing
 6-5     to a person who is the subject of criminal history record
 6-6     information the dates and places of arrests, the offenses, and the
 6-7     dispositions in the criminal history record information.
 6-8           SECTION 3.  Section 111.020, Tax Code, is amended by adding
 6-9     Subsection (f) to read as follows:
6-10           (f)  Compliance with Subsection (a)  is not a defense to an
6-11     assessment of tax liability under Section 111.024 if:
6-12                 (1)  the amount withheld from the purchase price is not
6-13     sufficient to fully satisfy the liability of the seller of the
6-14     business or stock of goods; and
6-15                 (2)  the purchase price paid to the seller for the
6-16     business or stock of goods is not reasonably equivalent to the
6-17     value of the business or stock of goods.
6-18           SECTION 4.  Sections 111.021 (a) and (c), Tax Code, are
6-19     amended to read as follows:
6-20           (a)  If a person is delinquent in the payment of an amount
6-21     required to be paid or has not paid an amount claimed in a
6-22     determination made against the person, the comptroller may notify
6-23     personally, [or] by [registered] mail, or by means of facsimile or
6-24     electronic transmission any other person who:
6-25                 (1)  possesses or controls a credit, bank or savings
6-26     account, deposit, or other intangible or personal property
6-27     belonging to the delinquent or the person against whom the unpaid
 7-1     determination is made, hereafter referred to as "assets"; or
 7-2                 (2)  owes a debt to the delinquent or person against
 7-3     whom the unpaid determination is made.
 7-4           (c)  A notice under this section may be given at any time
 7-5     within three years after the payment becomes delinquent or within
 7-6     three years after the last recording of a lien filed under this
 7-7     title, but not thereafter.  The notice must state the amount of
 7-8     taxes, penalties and interest due and owing, and an additional
 7-9     amount of penalties and interest that will accrue by operation of
7-10     law in a period not to exceed 30 days and, in the case of a credit,
7-11     bank or savings account or deposit, is effective only up to that
7-12     amount.
7-13           SECTION 5.  Section 111.022(a), Tax Code, is amended to read
7-14     as follows:
7-15           (a)  If the comptroller believes that the collection of a tax
7-16     required to be paid to the state or the amount due for a tax period
7-17     [of a determination] is jeopardized by delay, the comptroller shall
7-18     issue a determination stating the amount and that the tax
7-19     collection is in jeopardy.  The amount required to be paid to the
7-20     state or due for the tax period [determined] is due and payable
7-21     immediately.
7-22           SECTION 6.  Subchapter A, Chapter 111, Tax Code, is amended
7-23     by adding Section 111.024 to read as follows:
7-24           Sec. 111.024.  LIABILITY IN FRAUDULENT TRANSFERS.  (a)  A
7-25     person who acquires a business or the assets of a business from a
7-26     taxpayer through a fraudulent transfer or a sham transaction is
7-27     liable for any tax, penalty, and interest owed by the taxpayer.
 8-1           (b)  A transfer of a business or the assets of a business is
 8-2     considered to be a fraudulent transfer or a sham transaction if the
 8-3     taxpayer made the transfer or undertook the transaction:
 8-4                 (1)  with intent to evade, hinder, delay, or prevent
 8-5     the collection of any tax, penalty, or interest owed under this
 8-6     title; or
 8-7                 (2)  without receiving a reasonably equivalent value in
 8-8     exchange for the business or business assets subject to the
 8-9     transfer or transaction.
8-10           (c)  In determining the intent of the taxpayer under
8-11     Subsection (b)(1), consideration may be given, among other factors,
8-12     to whether:
8-13                 (1)  the transfer was to a current or former business
8-14     insider, associate, or employee of the taxpayer or to a person
8-15     related to the taxpayer within the third degree of consanguinity by
8-16     blood or marriage;
8-17                 (2)  the transfer was to a third party who subsequently
8-18     transferred the business or assets of the business to a current or
8-19     former business insider, associate, or employee of the taxpayer or
8-20     to a person related to the taxpayer within the third degree of
8-21     consanguinity by blood or marriage;
8-22                 (3)  the taxpayer retained possession or control of the
8-23     business or the assets of the business after the transfer or
8-24     transaction;
8-25                 (4)  the taxpayer's business and the transferee's
8-26     business are essentially operated as a single business entity at
8-27     the same location;
 9-1                 (5)  before the transfer or the transaction occurred,
 9-2     the taxpayer had either been subjected to or apprised of impending
 9-3     collection action by the comptroller or by the attorney general;
 9-4                 (6)  the transfer or transaction was concealed;
 9-5                 (7)  the taxpayer was insolvent at the time of the
 9-6     transfer or became insolvent not later than the 31st day after the
 9-7     date the transfer or transaction occurred; or
 9-8                 (8)  the transfer or transaction involved all or
 9-9     substantially all of the taxpayer's assets.
9-10           (d)  This section does not apply to a transfer of a business
9-11     or the assets of a business:
9-12                 (1)  through a court order on dissolution of a
9-13     marriage; or
9-14                 (2)  by descent or distribution or testate succession
9-15     on the death of a taxpayer.
9-16           SECTION 7.  Section 113.009, Tax Code, is amended by adding
9-17     Subsection (c) to read as follows:
9-18           (c)  A state tax lien filed under this chapter may not be
9-19     released fully until the taxpayer pays all other taxes, penalties,
9-20     interest, fees, or sums that the taxpayer owes the state and that
9-21     are administered or collected by the comptroller.
9-22           SECTION 8.  Section 113.105(b), Tax Code, is amended to read
9-23     as follows:
9-24           (b)  The state tax lien on personal property and real estate
9-25     attaches to personal property and real estate owned by the taxpayer
9-26     beginning on the first day of the period for which [on or after the
9-27     date] the lien is filed by the state.
 10-1          SECTION 9.  Section 151.023, Tax Code, is amended to read as
 10-2    follows:
 10-3          Sec. 151.023.  INVESTIGATIONS AND AUDITS.  (a)  The
 10-4    comptroller, or another person authorized by the comptroller in
 10-5    writing, may examine, copy, and photograph the books, records,
 10-6    papers, and equipment of a person who sells taxable items or of a
 10-7    person liable for the use tax and may investigate the character of
 10-8    the business of the person to verify the accuracy of the person's
 10-9    report or to determine the amount of tax that may be required to be
10-10    paid if no report has been filed.
10-11          (b)  For the purpose of determining the amount of tax
10-12    collected and payable to the state, the amount of tax accruing and
10-13    due, and whether a tax liability has been incurred under this
10-14    chapter, the comptroller or a person authorized by the comptroller
10-15    may:
10-16                (1)  inspect at any time during business hours any
10-17    business premises where a taxable event has occurred and examine,
10-18    copy, and photograph the books, returns, records, papers, and
10-19    equipment relating to the conduct in question; and
10-20                (2)  require by delivery of written notice to the
10-21    taxpayer or to an employee, representative, or agent of the
10-22    taxpayer that, not later than the 10th working day after the date
10-23    the notice is delivered, the taxpayer produce to an agent or
10-24    designated representative of the comptroller for inspection the
10-25    books, records, papers, and returns relating to the taxable
10-26    activity stated in the notice.
10-27          SECTION 10.  Section 151.025(a), Tax Code, is amended to read
 11-1    as follows:
 11-2          (a)  All sellers and all other persons storing, using, or
 11-3    consuming in this state a taxable item purchased from a retailer
 11-4    shall keep the following records in the form the comptroller
 11-5    requires:
 11-6                (1)  records of gross receipts, including documentation
 11-7    in the form of receipts, shipping manifests, invoices, and other
 11-8    pertinent papers, from each rental, lease, taxable service, and
 11-9    taxable labor transaction occurring during each reporting period;
11-10                (2)  records in the form of receipts, shipping
11-11    manifests, invoices, and other pertinent papers of all purchases of
11-12    taxable items from every source made during each reporting period;
11-13    and
11-14                (3)  records in the form of receipts, shipping
11-15    manifests, invoices, and other pertinent papers that substantiate
11-16    each claimed deduction or exclusion authorized by law[, receipts,
11-17    invoices, and other pertinent papers in the form that the
11-18    comptroller reasonably requires].
11-19          SECTION 11. Section 151.253(b), Tax Code, is amended to read
11-20    as follows:
11-21          (b)  The comptroller shall fix the amount of security
11-22    required in each case, taking into consideration the amount of tax
11-23    that has or is expected to become due from the person under this
11-24    chapter and all other applicable local sales and use taxes [the
11-25    Local Sales and Use Tax Act] and the necessity to protect the state
11-26    against the failure to pay these taxes.  The[, except that the]
11-27    maximum amount of security that may be required is the greater
 12-1    [lesser] of $100,000 [$50,000] or four [three] times the amount of
 12-2    the person's average monthly tax liability.
 12-3          SECTION 12.  Subchapter L, Chapter 151, Tax Code, is amended
 12-4    by adding Section 151.7032 to read as follows:
 12-5          Sec. 151.7032.  FAILURE TO PAY TAXES COLLECTED; CRIMINAL
 12-6    PENALTY.  (a)  A person commits an offense if the person
 12-7    intentionally or knowingly fails to pay to the comptroller, as
 12-8    required by this chapter, the tax collected by that person.
 12-9          (b)  An offense under this section is:
12-10                (1)  a Class C misdemeanor if the amount of the tax
12-11    collected and not paid is less than $10,000;
12-12                (2)  a state jail felony if the amount of the tax
12-13    collected and not paid is $10,000 or more but less than $20,000;
12-14                (3)  a felony of the third degree if the amount of the
12-15    tax collected and not paid is $20,000 or more but less than
12-16    $100,000; and
12-17                (4)  a felony of the second degree if the amount of the
12-18    tax collected and not paid is $100,000 or more.
12-19          SECTION 13.  Section 151.708, Tax Code, is amended to read as
12-20    follows:
12-21          Sec. 151.708.  SELLING WITHOUT PERMIT; CRIMINAL PENALTY.
12-22    (a)  A person or officer of a corporation commits an offense if the
12-23    person or corporation engages in business as a retailer in this
12-24    state without a permit required by this chapter or after the permit
12-25    is suspended.
12-26          (b)  A first [An] offense under this section is a Class C
12-27    misdemeanor [punishable by a fine of not more than $500].
 13-1          (c)  If it is shown on the trial of an offense under this
 13-2    section that the person or officer has previously been finally
 13-3    convicted of one offense under this section, on conviction the
 13-4    person or officer shall be punished for a Class B misdemeanor
 13-5    punishable by a fine only, not to exceed $2,000 [A separate offense
 13-6    is committed each day that a person or officer of a corporation
 13-7    violates this section].
 13-8          (d)  If it is shown on the trial of an offense under this
 13-9    section that the person or officer has previously been finally
13-10    convicted of two offenses under this section, on conviction the
13-11    person or officer shall be punished for a Class A misdemeanor
13-12    punishable by a fine only, not to exceed $4,000.
13-13          (e)  If it is shown on the trial of an offense under this
13-14    section that the person or officer has previously been finally
13-15    convicted of three or more offenses under this section, on
13-16    conviction the person or officer shall be punished for a Class A
13-17    misdemeanor punishable by a fine not to exceed $4,000, confinement
13-18    in jail for a term not to exceed one year, or both the fine and
13-19    confinement.
13-20          (f)  Each day a person or an officer of a corporation
13-21    operates a business without a permit or with a suspended permit is
13-22    a separate offense under this section.
13-23          SECTION 14.  Section 151.709, Tax Code, is amended to read as
13-24    follows:
13-25          Sec. 151.709.  FAILURE TO FURNISH REPORT [OR INFORMATION];
13-26    CRIMINAL PENALTY.  (a)  A person commits an offense if the person
13-27    refuses to furnish a report [or other data] as required by this
 14-1    chapter or by the comptroller as authorized by this chapter.
 14-2          (b)  A first [An] offense under this section is a Class C
 14-3    misdemeanor [punishable by a fine of not more than $500].
 14-4          (c)  If it is shown on the trial of an offense under this
 14-5    section that the person has previously been finally convicted of
 14-6    one offense under this section, on conviction the person shall be
 14-7    punished for a Class B misdemeanor punishable by a fine only, not
 14-8    to exceed $2,000.
 14-9          (d)  If it is shown on the trial of an offense under this
14-10    section that the person has previously been finally convicted of
14-11    two or more offenses under this section, on conviction the person
14-12    shall be punished for a Class A misdemeanor punishable by a fine
14-13    only, not to exceed $4,000.
14-14          SECTION 15.  Subchapter L, Chapter 151, Tax Code, is amended
14-15    by adding Sections 151.7101, 151.7102, and 151.7103 to read as
14-16    follows:
14-17          Sec. 151.7101.  ELECTION OF OFFENSES.  If a violation of a
14-18    criminal provision of this chapter by a taxpayer constitutes
14-19    another offense under the laws of this state, the state may elect
14-20    the offense for which it will prosecute the taxpayer.
14-21          Sec. 151.7102.  FALSE ENTRY OR FAILURE TO ENTER IN RECORDS.
14-22    (a)  A person commits an offense if the person intentionally or
14-23    knowingly conceals, destroys, makes a false entry in, or fails to
14-24    make an entry in records that are required to be made or kept under
14-25    this chapter.
14-26          (b)  An offense under this section is a felony of the third
14-27    degree.
 15-1          Sec. 151.7103.  FAILURE TO PRODUCE FOR INSPECTION OR ALLOW
 15-2    INSPECTION OF RECORDS.  (a)  A person commits an offense if the
 15-3    person is asked, by a person authorized by the comptroller, to
 15-4    produce or allow inspection of a record required to be kept under
 15-5    this chapter and the person fails to produce the record or allow
 15-6    the inspection after the allowed time.
 15-7          (b)  An offense under this section is a Class C misdemeanor.
 15-8    Each day the person fails to allow inspection of records or produce
 15-9    records for inspection  after receiving a request is a separate
15-10    offense.
15-11          SECTION 16.  Subchapter L, Chapter 151, Tax Code, is amended
15-12    by adding Section 151.714 to read as follows:
15-13          Sec. 151.714.  VENUE FOR CRIMINAL PROSECUTION.  Venue for
15-14    prosecution for an offense under this chapter is in:
15-15                (1)  the county in which any element of the offense
15-16    occurs; or
15-17                (2)  Travis County.
15-18          SECTION 17.  Section 152.101(b), Tax Code, is amended to read
15-19    as follows:
15-20          (b)  An offense under this section is a felony of the third
15-21    degree [punishable by imprisonment for not less than two nor more
15-22    than five years or a fine of not more than $1,000, or both].
15-23          SECTION 18.  Section 152.102(b), Tax Code, is amended to read
15-24    as follows:
15-25          (b)  An offense under this section is a Class C misdemeanor
15-26    [punishable by a fine of not less than $10 nor more than $500 or
15-27    confinement in the county jail for not less than one day nor more
 16-1    than 30 days, or both].
 16-2          SECTION 19.  Section 152.103(b), Tax Code, is amended to read
 16-3    as follows:
 16-4          (b)  An offense under this section is a Class C misdemeanor
 16-5    [punishable by a fine of not less than $25 nor more than $500].
 16-6          SECTION 20.  Subchapter F, Chapter 152, Tax Code, is amended
 16-7    by adding Sections 152.104 and 152.105 to read as follows:
 16-8          Sec. 152.104.  FAILURE TO REMIT TAX COLLECTED.  (a)  A person
 16-9    who is a dealer, as defined by Section 503.001, Transportation
16-10    Code, or who is acting in the capacity of a dealer, commits an
16-11    offense if the person intentionally or knowingly fails to pay to
16-12    the tax assessor-collector the motor vehicle sales tax collected as
16-13    required by this chapter.
16-14          (b)  An offense under this section is:
16-15                (1)  a Class C misdemeanor if the value of the tax
16-16    collected and not paid is less than $1,500;
16-17                (2)  a state jail felony if the value of the tax
16-18    collected and not paid is $1,500 or more but less than $20,000;
16-19                (3)  a felony of the third degree if the value of the
16-20    tax collected and not paid is $20,000 or more but less than
16-21    $100,000;
16-22                (4)  a felony of the second degree if the value of the
16-23    tax collected and not paid is $100,000 or more but less than
16-24    $200,000; and
16-25                (5)  a felony of the first degree if the value of the
16-26    tax collected and not paid is $200,000 or more.
16-27          (c)  When amounts are obtained in violation of this section
 17-1    pursuant to one scheme or continuing course of conduct, whether
 17-2    from the same or several resources, the conduct may be considered
 17-3    as one offense and the amounts aggregated in determining the grade
 17-4    of the offense.
 17-5          Sec. 152.105.  VENUE FOR CRIMINAL PROSECUTIONS.  Venue for
 17-6    prosecution of any offense under this chapter is in:
 17-7                (1)  the county in which any element of the offense
 17-8    occurs; or
 17-9                (2)  Travis County.
17-10          SECTION 21.  Section 153.402(a), Tax Code, is amended to read
17-11    as follows:
17-12          (a)  A person forfeits to the state a civil penalty of not
17-13    less than $25 nor more than $200 if the person:
17-14                (1)  refuses to stop and permit the inspection and
17-15    examination of a motor vehicle transporting or using motor fuel on
17-16    demand of a peace officer or the comptroller;
17-17                (2)  operates a motor vehicle in this state without a
17-18    valid interstate trucker's or a trip permit when the person is
17-19    required to hold one of those permits;
17-20                (3)  operates a liquefied gas-propelled motor vehicle
17-21    that is required to be licensed in Texas, including motor vehicles
17-22    equipped with dual carburetion, and does not display a current
17-23    liquefied gas tax decal or multistate fuels tax agreement decal;
17-24                (4)  makes a tax-free sale or delivery of liquefied gas
17-25    into the fuel supply tank of a motor vehicle that does not display
17-26    a current Texas liquefied gas tax decal;
17-27                (5)  makes a taxable sale or delivery of liquefied gas
 18-1    without holding a valid dealer's permit;
 18-2                (6)  makes a tax-free sale or delivery of liquefied gas
 18-3    into the fuel supply tank of a motor vehicle bearing out-of-state
 18-4    license plates;
 18-5                (7)  makes a delivery of liquefied gas into the fuel
 18-6    supply tank of a motor vehicle bearing Texas license plates and no
 18-7    Texas liquefied gas tax decal, unless licensed under a multistate
 18-8    fuels tax agreement;
 18-9                (8)  transports gasoline or diesel fuel in any cargo
18-10    tank that has a connection by pipe, tube, valve, or otherwise with
18-11    the fuel injector or carburetor or with the fuel supply tank
18-12    feeding the fuel injector or carburetor of the motor vehicle
18-13    transporting the product;
18-14                (9)  sells or delivers gasoline or diesel fuel from any
18-15    fuel supply tank connected with the fuel injector or carburetor of
18-16    a motor vehicle;
18-17                (10)  owns or operates a motor vehicle for which
18-18    reports or mileage records are required by this chapter without an
18-19    operating odometer or other device in good working condition to
18-20    record accurately the miles traveled;
18-21                (11)  furnishes to a supplier a signed statement [to a
18-22    supplier] for purchasing diesel fuel tax free and then uses the
18-23    tax-free diesel fuel to operate a diesel-powered motor vehicle on a
18-24    public highway [of a type that may be legally used by the purchaser
18-25    for the operation of a motor vehicle on the public highway under
18-26    state or federal law tax free when he owns, operates, or acquires a
18-27    diesel-powered motor vehicle];
 19-1                (12)  fails or refuses to comply with or violates a
 19-2    provision of this chapter;
 19-3                (13)  fails or refuses to comply with or violates a
 19-4    comptroller's rule for administering or enforcing this chapter;
 19-5                (14)  is an importer who does not obtain an import
 19-6    verification number when required by this chapter; or
 19-7                (15)  purchases motor fuel for export, on which the tax
 19-8    imposed by this chapter has not been paid, and subsequently diverts
 19-9    or causes the motor fuel to be diverted to a destination in this
19-10    state or any other state or country other than the originally
19-11    designated state or country without first obtaining a diversion
19-12    number.
19-13          SECTION 22.  Section 153.403, Tax Code, is amended to read as
19-14    follows:
19-15          Sec. 153.403.  CRIMINAL OFFENSES.  Except as provided by
19-16    Section 153.404 [of this code], a person commits an offense if the
19-17    person:
19-18                (1)  refuses to stop and permit the inspection and
19-19    examination of a motor vehicle transporting or using motor fuel on
19-20    the demand of a peace officer or the comptroller;
19-21                (2)  is required to hold a valid trip permit or
19-22    interstate trucker's permit, but operates a motor vehicle in this
19-23    state without a valid trip permit or interstate trucker's permit;
19-24                (3)  operates a liquefied gas-propelled motor vehicle
19-25    that is required to be licensed in Texas, including a motor vehicle
19-26    equipped with dual carburetion, and does not display a current
19-27    liquefied gas tax decal or multistate fuels tax agreement decal;
 20-1                (4)  transports gasoline or diesel fuel in any cargo
 20-2    tank that has a connection by pipe, tube, valve, or otherwise with
 20-3    the fuel injector or carburetor or with the fuel supply tank
 20-4    feeding the fuel injector or carburetor of the motor vehicle
 20-5    transporting the product;
 20-6                (5)  sells or delivers gasoline or diesel fuel from a
 20-7    fuel supply tank that is connected with the fuel injector or
 20-8    carburetor of a motor vehicle;
 20-9                (6)  owns or operates a motor vehicle for which reports
20-10    or mileage records are required by this chapter without an
20-11    operating odometer or other device in good working condition to
20-12    record accurately the miles traveled;
20-13                (7)  as a diesel tax prepaid user fails to prepay the
20-14    tax on every diesel-powered motor vehicle owned or operated by him;
20-15                (8)  uses dyed diesel fuel, on which a tax is required
20-16    to be paid, for the operation of a motor vehicle on a public
20-17    highway;
20-18                (9)  makes a tax-free sale or delivery of liquefied gas
20-19    into the fuel supply tank of a motor vehicle that does not display
20-20    a current Texas liquefied gas tax decal;
20-21                (10)  makes a sale or delivery of liquefied gas on
20-22    which the person knows the tax is required to be collected, if at
20-23    the time the sale is made the person does not hold a valid dealer's
20-24    permit;
20-25                (11)  makes a tax-free sale or delivery of liquefied
20-26    gas into the fuel supply tank of a motor vehicle bearing
20-27    out-of-state license plates;
 21-1                (12)  makes a delivery of liquefied gas into the fuel
 21-2    supply tank of a motor vehicle bearing Texas license plates and no
 21-3    Texas liquefied gas tax decal, unless licensed under a multistate
 21-4    fuels tax agreement;
 21-5                (13)  refuses to permit the comptroller or the attorney
 21-6    general to inspect, examine, or audit a book or record required to
 21-7    be kept by a distributor, supplier, dyed diesel fuel bonded user,
 21-8    agricultural bonded user, dealer, interstate trucker, aviation fuel
 21-9    dealer, jobber, common or contract carrier, or any person required
21-10    to hold a permit under this chapter;
21-11                (14)  refuses to permit the comptroller or the attorney
21-12    general to inspect or examine any plant, equipment, materials, or
21-13    premises where motor fuel is produced, processed, stored, sold,
21-14    delivered, or used;
21-15                (15)  refuses to permit the comptroller, [or] the
21-16    attorney general, an employee of either of those officials, a peace
21-17    officer, an employee of the Texas Natural Resource Conservation
21-18    Commission, or an employee of the Department of Agriculture to
21-19    measure or gauge the contents of or take samples from a storage
21-20    tank or container on premises where motor fuel is produced,
21-21    processed, stored, sold, delivered, or used;
21-22                (16)  is a distributor, dyed diesel fuel bonded user,
21-23    agricultural bonded user, interstate trucker, or supplier and fails
21-24    or refuses to make or deliver to the comptroller a report required
21-25    by this chapter to be made and delivered to the comptroller;
21-26                (17)  is an importer who does not obtain an import
21-27    verification number when required by this chapter;
 22-1                (18)  purchases motor fuel for export, on which the tax
 22-2    imposed by this chapter has not been paid, and subsequently diverts
 22-3    or causes the motor fuel to be diverted to a destination in this
 22-4    state or any other state or country other than the originally
 22-5    designated state or country without first obtaining a diversion
 22-6    number;
 22-7                (19)  conceals motor fuel with the intent of engaging
 22-8    in any conduct proscribed by this chapter or refuses to make sales
 22-9    of motor fuel on the volume-corrected basis prescribed by this
22-10    chapter;
22-11                (20)  refuses, while transporting motor fuel, to stop
22-12    the motor vehicle he is operating when called on to do so by a
22-13    person authorized to stop the motor vehicle;
22-14                (21)  refuses to surrender a motor vehicle and cargo
22-15    for impoundment after being ordered to do so by a person authorized
22-16    to impound the motor vehicle and cargo;
22-17                (22)  mutilates, destroys, or secretes a book or record
22-18    required by this chapter to be kept by a distributor, supplier,
22-19    dyed diesel fuel bonded user, agricultural bonded user, dealer,
22-20    interstate trucker, aviation fuel dealer, jobber, or person
22-21    required to hold a permit under this chapter;
22-22                (23)  is a distributor, supplier, dyed diesel fuel
22-23    bonded user, agricultural bonded user, dealer, interstate trucker,
22-24    aviation fuel dealer, jobber, or other person required to hold a
22-25    permit under this chapter, or the agent or employee of one of those
22-26    persons and makes a false entry or fails to make an entry in the
22-27    books and records required under this chapter to be made by the
 23-1    person or fails to retain a document as required by this chapter;
 23-2                (24)  transports in any manner motor fuel under a false
 23-3    cargo manifest or shipping document, or transports in any manner
 23-4    motor fuel to a location without delivering at the same time a
 23-5    shipping document relating to that shipment;
 23-6                (25)  engages in a motor fuel transaction that requires
 23-7    that the person have a permit under this chapter without then and
 23-8    there holding the required permit;
 23-9                (26)  makes and delivers to the comptroller a report
23-10    required under this chapter to be made and delivered to the
23-11    comptroller, if the report contains false information;
23-12                (27)  forges, falsifies, or alters an invoice
23-13    prescribed by law;
23-14                (28)  makes any statement, knowing said statement to be
23-15    false, in a claim for a tax refund filed with the comptroller;
23-16                (29)  furnishes to a supplier a signed statement for
23-17    purchasing diesel fuel tax free and then uses the tax-free diesel
23-18    fuel to operate a diesel-powered motor vehicle on a public highway
23-19    [of a type that may be legally used by the purchaser for the
23-20    operation of a motor vehicle on the public highway under state or
23-21    federal law tax free when he owns, operates, or acquires a
23-22    diesel-powered motor vehicle];
23-23                (30)  holds an aviation fuel dealer's permit and makes
23-24    a taxable sale or use of any gasoline or diesel fuel;
23-25                (31)  fails to remit any tax funds collected by a
23-26    distributor, supplier, dyed diesel fuel bonded user, agricultural
23-27    bonded user, dealer, interstate trucker, jobber, or any other
 24-1    person required to hold a permit under this chapter;
 24-2                (32)  makes a sale of diesel fuel tax free into a
 24-3    storage facility of a person who:
 24-4                      (A)  is not permitted as a supplier, as an
 24-5    aviation fuel dealer, as a dyed diesel fuel bonded user, as an
 24-6    agricultural bonded user, or as a diesel tax prepaid user of diesel
 24-7    fuel; or
 24-8                      (B)  does not furnish to the permitted supplier a
 24-9    signed statement prescribed in Section 153.205 [of this code];
24-10                (33)  makes a sale of gasoline tax free to any person
24-11    who is not permitted as either a distributor or an aviation fuel
24-12    dealer;
24-13                (34)  is a dealer who purchases any motor fuel tax free
24-14    when not authorized to make a tax-free purchase under this chapter;
24-15                (35)  is a dealer who purchases motor fuel with the
24-16    intent to evade any tax imposed by this chapter, or who accepts a
24-17    delivery of motor fuel by any means and does not at the same time
24-18    accept or receive a shipping document relating to the delivery;
24-19                (36)  transports motor fuel for which a cargo manifest
24-20    or shipping document is required to be carried without possessing
24-21    or exhibiting on demand by an officer authorized to make the demand
24-22    a cargo manifest or shipping document containing the information
24-23    required to be shown on the manifest or shipping document;
24-24                (37)  imports, sells, uses, distributes, or stores
24-25    motor fuel within this state on which the taxes imposed by this
24-26    chapter are owed but have not been first paid to or reported by the
24-27    holder of a distributor, supplier, liquefied gas dealer, interstate
 25-1    trucker, diesel tax prepaid user, dyed diesel fuel bonded user, or
 25-2    agricultural bonded user permit;
 25-3                (38)  blends products together to produce a blended
 25-4    fuel that is offered for sale, sold, or used that expands the
 25-5    volume of the original product to evade paying applicable motor
 25-6    fuel taxes; or
 25-7                (39)  evades or attempts to evade in any manner a tax
 25-8    imposed on motor fuel by this chapter.
 25-9          SECTION 23.  Sections 153.404(c) and (d), Tax Code, are
25-10    amended to read as follows:
25-11          (c)  The prohibition under Section 153.403(32) does not apply
25-12    to the tax-free sale or distribution of diesel fuel authorized by
25-13    Section 153.203(1), (2), [or] (5), (8), or (9).
25-14          (d)  The prohibition under Section 153.403(33) does not apply
25-15    to the tax-free sale or distribution of gasoline under Section
25-16    153.104(2), [or] (4), (7), or (8).
25-17          SECTION 24.  Section 183.053(b), Tax Code, is amended to read
25-18    as follows:
25-19          (b)  The total of bonds, certificates of deposit, letters of
25-20    credit, or other security determined to be sufficient by the
25-21    comptroller of a permittee subject to the tax imposed by this
25-22    chapter shall be in an amount that the comptroller determines to be
25-23    sufficient to protect the fiscal interests of the state.  The
25-24    comptroller may not set the amount of security at less than $1,000
25-25    or more than $50,000 [$25,000].
25-26          SECTION 25.  Section A, Article 8.15, Texas Business
25-27    Corporation Act, is amended to read as follows:
 26-1          A.  The original and a copy of such application for
 26-2    withdrawal, along with a certificate from the comptroller
 26-3    [Comptroller of Public Accounts] that all [franchise] taxes,
 26-4    including all applicable penalties and interest, administered by
 26-5    the comptroller under Title 2, Tax Code, have been paid, shall be
 26-6    delivered to the secretary of state [Secretary of State].  If the
 26-7    secretary of state [Secretary of State] finds that such application
 26-8    conforms to the provisions of this Act, the secretary of state
 26-9    [Secretary of State] shall, when the appropriate filing fee is paid
26-10    as required by law:
26-11                (1)  Endorse on the original and the copy the word
26-12    "Filed," and the month, day, and year of the filing thereof.
26-13                (2)  File the original in the office of the secretary
26-14    of state [Secretary of State].
26-15                (3)  Issue a certificate of withdrawal to which shall
26-16    be affixed the copy.
26-17          SECTION 26.  Section A, Article 6.08, Texas Limited Liability
26-18    Company Act (Article 1528n, Vernon's Texas Civil Statutes), is
26-19    amended to read as follows:
26-20          A.  The original and a copy of such articles of dissolution,
26-21    along with a certificate from the comptroller that all [franchise]
26-22    taxes, including all applicable penalties and interest,
26-23    administered by the comptroller under Title 2, Tax Code, have been
26-24    paid, shall be delivered to the secretary of state [Secretary of
26-25    State].  If the secretary of state [Secretary of State] finds that
26-26    such articles of dissolution conform to law, the secretary of state
26-27    [Secretary of State] shall, when the appropriate filing fee is paid
 27-1    as required by law:
 27-2                (1)  Endorse on the original and copy the word "Filed,"
 27-3    and the month, day, and year of the filing thereof.
 27-4                (2)  File the original in the secretary of state's
 27-5    [Secretary of State's] office.
 27-6                (3)  Issue a certificate of dissolution to which there
 27-7    shall be affixed the copy.
 27-8          SECTION 27.  Section A, Article 7.10, Texas Limited Liability
 27-9    Company Act (Article 1528n, Vernon's Texas Civil Statutes), is
27-10    amended to read as follows:
27-11          A.  The original and a copy of such application for
27-12    withdrawal, along with a certificate from the comptroller that all
27-13    [franchise] taxes, including penalties and interest, administered
27-14    by the comptroller under Title 2, Tax Code, have been paid, shall
27-15    be delivered to the secretary of state [Secretary of State].  If
27-16    the secretary of state [Secretary of State] finds that such
27-17    application conforms to the provisions of this Act, the secretary
27-18    of state [Secretary of State] shall, when the appropriate filing
27-19    fee is paid as required by law:
27-20                (1)  Endorse on the original and the copy the word
27-21    "Filed," and the month, day, and year of the filing thereof.
27-22                (2)  File the original in the secretary of state's
27-23    [Secretary of State's] office.
27-24                (3)  Issue a certificate of withdrawal to which there
27-25    shall be affixed the copy.
27-26          SECTION 28.  Section 151.710, Tax Code, is repealed.
27-27          SECTION 29.  (a)  This Act takes effect September 1, 2001.
 28-1          (b)  The changes in law made by Sections 7 and 8 of this Act
 28-2    apply only to a lien filed on or after the effective date of this
 28-3    Act.  A lien filed before the effective date of this Act is
 28-4    governed by the law in effect on the date the lien was filed, and
 28-5    that law is continued in effect for that purpose.
 28-6          (c)  The changes in law made by Sections 12 through 20 and by
 28-7    Sections 22 and 23 of this Act apply only to an offense committed
 28-8    on or after the effective date of this Act.  For purposes of this
 28-9    subsection, an offense is committed before the effective date of
28-10    this Act if any element of the offense is committed before that
28-11    date.  An offense committed before the effective date of this Act
28-12    is covered by the law in effect when the offense was committed, and
28-13    the former law is continued in effect for that purpose.
28-14          (d)  The change in law made by Section 22 of this Act applies
28-15    only to a signed statement furnished on or after the effective date
28-16    of this Act.  A signed statement furnished before the effective
28-17    date of this Act is governed by the law in effect on the date the
28-18    statement was furnished, and that law is continued in effect for
28-19    that purpose.