By Armbrister                                         S.B. No. 1123
         77R7929 CBH-F                           
                                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, 332, 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. Sections 111.010(a) and (b), Tax Code, are amended
 6-9     to read as follows:
6-10           (a)  The attorney general shall bring suit in the name of the
6-11     state and in the name of any local governmental entities that have
6-12     imposed sales and use taxes under Subtitle C, Title 3, or other
6-13     statutes to recover delinquent state taxes, local sales and use
6-14     taxes, tax penalties, and interest owed to the state or to the
6-15     local governmental entities.
6-16           (b)  This section applies to state taxes imposed by this
6-17     title or by other laws not included in this title and to local
6-18     sales and use taxes imposed under Subtitle C, Title 3, or other
6-19     law, but does not apply to the state ad valorem tax on property.
6-20           SECTION 4. Section 111.020, Tax Code, is amended by adding
6-21     Subsection (f) to read as follows:
6-22           (f)  Compliance with Subsection (a)  is not a defense to an
6-23     assessment of tax liability under Section 111.024 if:
6-24                 (1)  the amount withheld from the purchase price is not
6-25     sufficient to fully satisfy the liability of the seller of the
6-26     business or stock of goods; and
6-27                 (2)  the purchase price paid to the seller for the
 7-1     business or stock of goods is not reasonably equivalent to the
 7-2     value of the business or stock of goods.
 7-3           SECTION 5. Sections 111.021(a) and (c), Tax Code, are amended
 7-4     to read as follows:
 7-5           (a)  If a person is delinquent in the payment of an amount
 7-6     required to be paid or has not paid an amount claimed in a
 7-7     determination made against the person, the comptroller may notify
 7-8     personally, [or] by [registered] mail, or by means of facsimile or
 7-9     electronic transmission any other person who:
7-10                 (1)  possesses or controls a credit, bank or savings
7-11     account, deposit, or other intangible or personal property
7-12     belonging to the delinquent or the person against whom the unpaid
7-13     determination is made, hereafter referred to as "assets"; or
7-14                 (2)  owes a debt to the delinquent or person against
7-15     whom the unpaid determination is made.
7-16           (c)  A notice under this section may be given at any time
7-17     within three years after the payment becomes delinquent or within
7-18     three years after the last recording of a lien filed under this
7-19     title, but not thereafter.  The notice must state the amount of
7-20     taxes, penalties and interest due and owing, and an additional
7-21     amount of penalties and interest that will accrue by operation of
7-22     law in a period not to exceed 30 days and, in the case of a credit,
7-23     bank or savings account or deposit, is effective only up to that
7-24     amount.
7-25           SECTION 6. Section 111.022(a), Tax Code, is amended to read
7-26     as follows:
7-27           (a)  If the comptroller believes that the collection of a tax
 8-1     required to be paid to the state or the amount due for a tax period
 8-2     [of a determination] is jeopardized by delay, the comptroller shall
 8-3     issue a determination stating the amount and that the tax
 8-4     collection is in jeopardy.  The amount required to be paid to the
 8-5     state or due for the tax period [determined] is due and payable
 8-6     immediately.
 8-7           SECTION 7. Subchapter A, Chapter 111, Tax Code, is amended by
 8-8     adding Section 111.024 to read as follows:
 8-9           Sec. 111.024.  LIABILITY IN FRAUDULENT TRANSFERS. (a)  A
8-10     person who acquires a business or the assets of a business from a
8-11     taxpayer through a fraudulent transfer or a sham transaction is
8-12     liable for any tax, penalty, and interest owed by the taxpayer.
8-13           (b)  A transfer of a business or the assets of a business is
8-14     considered to be a fraudulent transfer or a sham transaction if the
8-15     taxpayer made the transfer or undertook the transaction:
8-16                 (1)  with intent to evade, hinder, delay, or prevent
8-17     the collection of any tax, penalty, or interest owed under this
8-18     title; or
8-19                 (2)  without receiving a reasonably equivalent value in
8-20     exchange for the business or business assets subject to the
8-21     transfer or transaction.
8-22           (c)  In determining the intent of the taxpayer under
8-23     Subsection (b)(1), consideration may be given, among other factors,
8-24     to whether:
8-25                 (1)  the transfer was to a current or former business
8-26     insider, associate, or employee of the taxpayer or to a person
8-27     related to the taxpayer within the third degree of consanguinity by
 9-1     blood or marriage;
 9-2                 (2)  the transfer was to a third party who subsequently
 9-3     transferred the business or assets of the business to a current or
 9-4     former business insider, associate, or employee of the taxpayer or
 9-5     to a person related to the taxpayer within the third degree of
 9-6     consanguinity by blood or marriage;
 9-7                 (3)  the taxpayer retained possession or control of the
 9-8     business or the assets of the business after the transfer or
 9-9     transaction;
9-10                 (4)  the taxpayer's business and the transferee's
9-11     business are essentially operated as a single business entity at
9-12     the same location;
9-13                 (5)  before the transfer or the transaction occurred,
9-14     the taxpayer had either been subjected to or apprised of impending
9-15     collection action by the comptroller or by the attorney general;
9-16                 (6)  the transfer or transaction was concealed;
9-17                 (7)  the taxpayer was insolvent at the time of the
9-18     transfer or became insolvent not later than the 31st day after the
9-19     date the transfer or transaction occurred; or
9-20                 (8)  the transfer or transaction involved all or
9-21     substantially all of the taxpayer's assets.
9-22           (d)  This section does not apply to a transfer of a business
9-23     or the assets of a business:
9-24                 (1)  through a court order on dissolution of a
9-25     marriage; or
9-26                 (2)  by descent or distribution or testate succession
9-27     on the death of a taxpayer.
 10-1          SECTION 8. Section 113.009, Tax Code, is amended by adding
 10-2    Subsection (c) to read as follows:
 10-3          (c)  A state tax lien filed under this chapter may not be
 10-4    released fully until the taxpayer pays all other taxes, penalties,
 10-5    interest, fees, or sums that the taxpayer owes the state and that
 10-6    are administered or collected by the comptroller.
 10-7          SECTION 9. Section 113.105(b), Tax Code, is amended to read
 10-8    as follows:
 10-9          (b)  The state tax lien on personal property and real estate
10-10    attaches to personal property and real estate owned by the taxpayer
10-11    beginning on the first day of the period for which [on or after the
10-12    date] the lien is filed by the state.
10-13          SECTION 10. Section 151.023, Tax Code, is amended to read as
10-14    follows:
10-15          Sec. 151.023.  INVESTIGATIONS AND AUDITS.  (a)  The
10-16    comptroller, or another person authorized by the comptroller in
10-17    writing, may examine, copy, and photograph the books, records,
10-18    papers, and equipment of a person who sells taxable items or of a
10-19    person liable for the use tax and may investigate the character of
10-20    the business of the person to verify the accuracy of the person's
10-21    report or to determine the amount of tax that may be required to be
10-22    paid if no report has been filed.
10-23          (b)  For the purpose of determining the amount of tax
10-24    collected and payable to the state, the amount of tax accruing and
10-25    due, and whether a tax liability has been incurred under this
10-26    chapter, the comptroller or a person authorized by the comptroller
10-27    may:
 11-1                (1)  inspect at any time during business hours any
 11-2    business premises where a taxable event has occurred and examine,
 11-3    copy, and photograph the books, returns, records, papers, and
 11-4    equipment relating to the conduct in question; and
 11-5                (2)  require by delivery of written notice to the
 11-6    taxpayer or to an employee, representative, or agent of the
 11-7    taxpayer that, not later than the 10th working day after the date
 11-8    the notice is delivered, the taxpayer produce to an agent or
 11-9    designated representative of the comptroller for inspection the
11-10    books, records, papers, and returns relating to the taxable
11-11    activity stated in the notice.
11-12          SECTION 11. Section 151.025(a), Tax Code, is amended to read
11-13    as follows:
11-14          (a)  All sellers and all other persons storing, using, or
11-15    consuming in this state a taxable item purchased from a retailer
11-16    shall keep the following records:
11-17                (1)  records of gross receipts, including documentation
11-18    in the form of receipts, shipping manifests, invoices, and other
11-19    pertinent papers, from each rental, lease, taxable service, and
11-20    taxable labor transaction occurring during each reporting period;
11-21                (2)  records in the form of receipts, shipping
11-22    manifests, invoices, and other pertinent papers of all purchases of
11-23    taxable items from every source made during each reporting period;
11-24    and
11-25                (3)  records in the form of receipts, shipping
11-26    manifests, invoices, and other pertinent papers, that substantiate
11-27    each claimed deduction or exclusion authorized by law [, receipts,
 12-1    invoices, and other pertinent papers in the form that the
 12-2    comptroller reasonably requires].
 12-3          SECTION 12. Section 151.253(b), Tax Code, is amended to read
 12-4    as follows:
 12-5          (b)  The comptroller shall fix the amount of security
 12-6    required in each case, taking into consideration the amount of tax
 12-7    that has or is expected to become due from the person under this
 12-8    chapter and all other applicable local sales and use taxes [the
 12-9    Local Sales and Use Tax Act] and the necessity to protect the state
12-10    against the failure to pay these taxes. The [, except that the]
12-11    maximum amount of security that may be required is the greater
12-12    [lesser] of $100,000 [$50,000] or four [three] times the amount of
12-13    the person's average monthly tax liability.
12-14          SECTION 13. Subchapter L, Chapter 151, Tax Code, is amended
12-15    by adding Section 151.7032 to read as follows:
12-16          Sec. 151.7032.  FAILURE TO PAY TAXES COLLECTED; CRIMINAL
12-17    PENALTY.  (a)  A person commits an offense if the person
12-18    intentionally or knowingly fails to pay to the comptroller, as
12-19    required by this chapter, the tax collected by that person.
12-20          (b)  An offense under this section is:
12-21                (1)  a Class C misdemeanor if the amount of tax
12-22    collected and not paid is less than $10,000;
12-23                (2)  a state jail felony if the amount of the tax
12-24    collected and not paid is $10,000 or more but less than $20,000;
12-25                (3)  a felony of the third degree if the amount of the
12-26    tax collected and not paid is $20,000 or more but less than
12-27    $100,000; and
 13-1                (4)  a felony of the second degree if the amount of the
 13-2    tax collected and not paid is $100,000 or more.
 13-3          SECTION 14. Section 151.708, Tax Code, is amended to read as
 13-4    follows:
 13-5          Sec. 151.708.  SELLING WITHOUT PERMIT; CRIMINAL PENALTY.  (a)
 13-6    A person or officer of a corporation commits an offense if the
 13-7    person or corporation engages in business as a retailer in this
 13-8    state without a permit required by this chapter or after the permit
 13-9    is suspended.
13-10          (b)  A first [An] offense under this section is a Class C
13-11    misdemeanor [punishable by a fine of not more than $500].
13-12          (c)  If it is shown on the trial of an offense under this
13-13    section that the person or officer has previously been finally
13-14    convicted of one offense under this section, on conviction the
13-15    person or officer shall be punished for a Class B misdemeanor
13-16    punishable by a fine only, not to exceed $2,000 [A separate offense
13-17    is committed each day that a person or officer of a corporation
13-18    violates this section].
13-19          (d)  If it is shown on the trial of an offense under this
13-20    section that the person or officer has previously been finally
13-21    convicted of two offenses under this section, on conviction the
13-22    person or officer shall be punished for a Class A misdemeanor
13-23    punishable by a fine only, not to exceed $4,000.
13-24          (e)  If it is shown on the trial of an offense under this
13-25    section that the person or officer has previously been finally
13-26    convicted of three or more offenses under this section, on
13-27    conviction the person or officer shall be punished for a Class A
 14-1    misdemeanor punishable by a fine not to exceed $4,000, confinement
 14-2    in jail for a term not to exceed one year, or both the fine and
 14-3    confinement.
 14-4          (f)  Each day a person or an officer of a corporation
 14-5    operates a business without a permit or with a suspended permit is
 14-6    a separate offense under this section.
 14-7          SECTION 15. Section 151.709, Tax Code, is amended to read as
 14-8    follows:
 14-9          Sec. 151.709.  FAILURE TO FURNISH REPORT [OR INFORMATION];
14-10    CRIMINAL PENALTY.  (a)  A person commits an offense if the person
14-11    refuses to furnish a report [or other data] as required by this
14-12    chapter or by the comptroller as authorized by this chapter.
14-13          (b)  A first [An] offense under this section is a Class C
14-14    misdemeanor [punishable by a fine of not more than $500].
14-15          (c)  If it is shown on the trial of an offense under this
14-16    section that the person has previously been finally convicted of
14-17    one offense under this section, on conviction the person shall be
14-18    punished for a Class B misdemeanor punishable by a fine only, not
14-19    to exceed $2,000.
14-20          (d)  If it is shown on the trial of an offense under this
14-21    section that the person has previously been finally convicted of
14-22    two or more offenses under this section, on conviction the person
14-23    shall be punished for a Class A misdemeanor punishable by a fine
14-24    only, not to exceed $4,000.
14-25          SECTION 16. Subchapter L, Chapter 151, Tax Code, is amended
14-26    by adding Sections 151.7101, 151.7102, and 151.7103 to read as
14-27    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 17. 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
15-27    occurs; or
 16-1                (2)  Travis County.
 16-2          SECTION 18. Section 152.101(b), Tax Code, is amended to read
 16-3    as follows:
 16-4          (b)  An offense under this section is a felony of the third
 16-5    degree [punishable by imprisonment for not less than two nor more
 16-6    than five years or a fine of not more than $1,000, or both].
 16-7          SECTION 19. Section 152.102(b), Tax Code, is amended to read
 16-8    as follows:
 16-9          (b)  An offense under this section is a Class C misdemeanor
16-10    [punishable by a fine of not less than $10 nor more than $500 or
16-11    confinement in the county jail for not less than one day nor more
16-12    than 30 days, or both].
16-13          SECTION 20. Section 152.103(b), Tax Code, is amended to read
16-14    as follows:
16-15          (b)  An offense under this section is a Class C misdemeanor
16-16    [punishable by a fine of not less than $25 nor more than $500].
16-17          SECTION 21. Subchapter F, Chapter 152, Tax Code, is amended
16-18    by adding Sections 152.104 and 152.105 to read as follows:
16-19          Sec. 152.104.  FAILURE TO REMIT TAX COLLECTED.   (a)  A
16-20    person who is a dealer, as defined by Section 503.001,
16-21    Transportation Code, or who is acting in the capacity of a dealer,
16-22    commits an offense if the person intentionally or knowingly fails
16-23    to pay to the tax assessor-collector the motor vehicle sales tax
16-24    collected as required by this chapter.
16-25          (b)  An offense under this section is:
16-26                (1)  a Class C misdemeanor if the value of the tax
16-27    collected and not paid is less than $1,500;
 17-1                (2)  a state jail felony if the value of the tax
 17-2    collected and not paid is $1,500 or more, but less than $20,000;
 17-3                (3)  a felony of the third degree if the value of the
 17-4    tax collected and not paid is $20,000 or more but less than
 17-5    $100,000;
 17-6                (4)  a felony of the second degree if the value of the
 17-7    tax collected and not paid is $100,000 or more but less than
 17-8    $200,000; and
 17-9                (5)  a felony of the first degree if the value of the
17-10    tax collected and not paid is $200,000 or more.
17-11          (c)  When amounts are obtained in violation of this section
17-12    pursuant to one scheme or continuing course of conduct, whether
17-13    from the same or several resources, the conduct may be considered
17-14    as one offense and the amounts aggregated in determining the grade
17-15    of the offense.
17-16          Sec. 152.105.  VENUE FOR CRIMINAL PROSECUTIONS. Venue for
17-17    prosecution of any offense under this chapter is in:
17-18                (1)  the county in which any element of the offense
17-19    occurs; or
17-20                (2)  Travis County.
17-21          SECTION 22. Section 153.402(a), Tax Code, is amended to read
17-22    as follows:
17-23          (a)  A person forfeits to the state a civil penalty of not
17-24    less than $25 nor more than $200 if the person:
17-25                (1)  refuses to stop and permit the inspection and
17-26    examination of a motor vehicle transporting or using motor fuel on
17-27    demand of a peace officer or the comptroller;
 18-1                (2)  operates a motor vehicle in this state without a
 18-2    valid interstate trucker's or a trip permit when the person is
 18-3    required to hold one of those permits;
 18-4                (3)  operates a liquefied gas-propelled motor vehicle
 18-5    that is required to be licensed in Texas, including motor vehicles
 18-6    equipped with dual carburetion, and does not display a current
 18-7    liquefied gas tax decal or multistate fuels tax agreement decal;
 18-8                (4)  makes a tax-free sale or delivery of liquefied gas
 18-9    into the fuel supply tank of a motor vehicle that does not display
18-10    a current Texas liquefied gas tax decal;
18-11                (5)  makes a taxable sale or delivery of liquefied gas
18-12    without holding a valid dealer's permit;
18-13                (6)  makes a tax-free sale or delivery of liquefied gas
18-14    into the fuel supply tank of a motor vehicle bearing out-of-state
18-15    license plates;
18-16                (7)  makes a delivery of liquefied gas into the fuel
18-17    supply tank of a motor vehicle bearing Texas license plates and no
18-18    Texas liquefied gas tax decal, unless licensed under a multistate
18-19    fuels tax agreement;
18-20                (8)  transports gasoline or diesel fuel in any cargo
18-21    tank that has a connection by pipe, tube, valve, or otherwise with
18-22    the fuel injector or carburetor or with the fuel supply tank
18-23    feeding the fuel injector or carburetor of the motor vehicle
18-24    transporting the product;
18-25                (9)  sells or delivers gasoline or diesel fuel from any
18-26    fuel supply tank connected with the fuel injector or carburetor of
18-27    a motor vehicle;
 19-1                (10)  owns or operates a motor vehicle for which
 19-2    reports or mileage records are required by this chapter without an
 19-3    operating odometer or other device in good working condition to
 19-4    record accurately the miles traveled;
 19-5                (11)  furnishes to a supplier a signed statement [to a
 19-6    supplier] for purchasing diesel fuel tax free and then uses the
 19-7    tax-free diesel fuel to operate a diesel-powered motor vehicle on a
 19-8    public highway [of a type that may be legally used by the purchaser
 19-9    for the operation of a motor vehicle on the public highway under
19-10    state or federal law tax free when he owns, operates, or acquires a
19-11    diesel-powered motor vehicle];
19-12                (12)  fails or refuses to comply with or violates a
19-13    provision of this chapter;
19-14                (13)  fails or refuses to comply with or violates a
19-15    comptroller's rule for administering or enforcing this chapter;
19-16                (14)  is an importer who does not obtain an import
19-17    verification number when required by this chapter; or
19-18                (15)  purchases motor fuel for export, on which the tax
19-19    imposed by this chapter has not been paid, and subsequently diverts
19-20    or causes the motor fuel to be diverted to a destination in this
19-21    state or any other state or country other than the originally
19-22    designated state or country without first obtaining a diversion
19-23    number.
19-24          SECTION 23. Section 153.403, Tax Code, is amended to read as
19-25    follows:
19-26          Sec. 153.403.  CRIMINAL OFFENSES.  Except as provided by
19-27    Section 153.404 [of this code], a person commits an offense if the
 20-1    person:
 20-2                (1)  refuses to stop and permit the inspection and
 20-3    examination of a motor vehicle transporting or using motor fuel on
 20-4    the demand of a peace officer or the comptroller;
 20-5                (2)  is required to hold a valid trip permit or
 20-6    interstate trucker's permit, but operates a motor vehicle in this
 20-7    state without a valid trip permit or interstate trucker's permit;
 20-8                (3)  operates a liquefied gas-propelled motor vehicle
 20-9    that is required to be licensed in Texas, including a motor vehicle
20-10    equipped with dual carburetion, and does not display a current
20-11    liquefied gas tax decal or multistate fuels tax agreement decal;
20-12                (4)  transports gasoline or diesel fuel in any cargo
20-13    tank that has a connection by pipe, tube, valve, or otherwise with
20-14    the fuel injector or carburetor or with the fuel supply tank
20-15    feeding the fuel injector or carburetor of the motor vehicle
20-16    transporting the product;
20-17                (5)  sells or delivers gasoline or diesel fuel from a
20-18    fuel supply tank that is connected with the fuel injector or
20-19    carburetor of a motor vehicle;
20-20                (6)  owns or operates a motor vehicle for which reports
20-21    or mileage records are required by this chapter without an
20-22    operating odometer or other device in good working condition to
20-23    record accurately the miles traveled;
20-24                (7)  as a diesel tax prepaid user fails to prepay the
20-25    tax on every diesel-powered motor vehicle owned or operated by him;
20-26                (8)  uses dyed diesel fuel, on which a tax is required
20-27    to be paid, for the operation of a motor vehicle on a public
 21-1    highway;
 21-2                (9)  makes a tax-free sale or delivery of liquefied gas
 21-3    into the fuel supply tank of a motor vehicle that does not display
 21-4    a current Texas liquefied gas tax decal;
 21-5                (10)  makes a sale or delivery of liquefied gas on
 21-6    which the person knows the tax is required to be collected, if at
 21-7    the time the sale is made the person does not hold a valid dealer's
 21-8    permit;
 21-9                (11)  makes a tax-free sale or delivery of liquefied
21-10    gas into the fuel supply tank of a motor vehicle bearing
21-11    out-of-state license plates;
21-12                (12)  makes a delivery of liquefied gas into the fuel
21-13    supply tank of a motor vehicle bearing Texas license plates and no
21-14    Texas liquefied gas tax decal, unless licensed under a multistate
21-15    fuels tax agreement;
21-16                (13)  refuses to permit the comptroller or the attorney
21-17    general to inspect, examine, or audit a book or record required to
21-18    be kept by a distributor, supplier, dyed diesel fuel bonded user,
21-19    agricultural bonded user, dealer, interstate trucker, aviation fuel
21-20    dealer, jobber, common or contract carrier, or any person required
21-21    to hold a permit under this chapter;
21-22                (14)  refuses to permit the comptroller or the attorney
21-23    general to inspect or examine any plant, equipment, materials, or
21-24    premises where motor fuel is produced, processed, stored, sold,
21-25    delivered, or used;
21-26                (15)  refuses to permit the comptroller, [or] the
21-27    attorney general, an employee of either of those officials, a peace
 22-1    officer, an employee of the Texas Natural Resource Conservation
 22-2    Commission, or an employee of the Department of Agriculture to
 22-3    measure or gauge the contents of or take samples from a storage
 22-4    tank or container on premises where motor fuel is produced,
 22-5    processed, stored, sold, delivered, or used;
 22-6                (16)  is a distributor, dyed diesel fuel bonded user,
 22-7    agricultural bonded user, interstate trucker, or supplier and fails
 22-8    or refuses to make or deliver to the comptroller a report required
 22-9    by this chapter to be made and delivered to the comptroller;
22-10                (17)  is an importer who does not obtain an import
22-11    verification number when required by this chapter;
22-12                (18)  purchases motor fuel for export, on which the tax
22-13    imposed by this chapter has not been paid, and subsequently diverts
22-14    or causes the motor fuel to be diverted to a destination in this
22-15    state or any other state or country other than the originally
22-16    designated state or country without first obtaining a diversion
22-17    number;
22-18                (19)  conceals motor fuel with the intent of engaging
22-19    in any conduct proscribed by this chapter or refuses to make sales
22-20    of motor fuel on the volume-corrected basis prescribed by this
22-21    chapter;
22-22                (20)  refuses, while transporting motor fuel, to stop
22-23    the motor vehicle he is operating when called on to do so by a
22-24    person authorized to stop the motor vehicle;
22-25                (21)  refuses to surrender a motor vehicle and cargo
22-26    for impoundment after being ordered to do so by a person authorized
22-27    to impound the motor vehicle and cargo;
 23-1                (22)  mutilates, destroys, or secretes a book or record
 23-2    required by this chapter to be kept by a distributor, supplier,
 23-3    dyed diesel fuel bonded user, agricultural bonded user, dealer,
 23-4    interstate trucker, aviation fuel dealer, jobber, or person
 23-5    required to hold a permit under this chapter;
 23-6                (23)  is a distributor, supplier, dyed diesel fuel
 23-7    bonded user, agricultural bonded user, dealer, interstate trucker,
 23-8    aviation fuel dealer, jobber, or other person required to hold a
 23-9    permit under this chapter, or the agent or employee of one of those
23-10    persons and makes a false entry or fails to make an entry in the
23-11    books and records required under this chapter to be made by the
23-12    person or fails to retain a document as required by this chapter;
23-13                (24)  transports in any manner motor fuel under a false
23-14    cargo manifest or shipping document, or transports in any manner
23-15    motor fuel to a location without delivering at the same time a
23-16    shipping document relating to that shipment;
23-17                (25)  engages in a motor fuel transaction that requires
23-18    that the person have a permit under this chapter without then and
23-19    there holding the required permit;
23-20                (26)  makes and delivers to the comptroller a report
23-21    required under this chapter to be made and delivered to the
23-22    comptroller, if the report contains false information;
23-23                (27)  forges, falsifies, or alters an invoice
23-24    prescribed by law;
23-25                (28)  makes any statement, knowing said statement to be
23-26    false, in a claim for a tax refund filed with the comptroller;
23-27                (29)  furnishes to a supplier a signed statement for
 24-1    purchasing diesel fuel tax free and then uses the tax-free diesel
 24-2    fuel to operate a diesel-powered motor vehicle on a public highway
 24-3    [of a type that may be legally used by the purchaser for the
 24-4    operation of a motor vehicle on the public highway under state or
 24-5    federal law tax free when he owns, operates, or acquires a
 24-6    diesel-powered motor vehicle];
 24-7                (30)  holds an aviation fuel dealer's permit and makes
 24-8    a taxable sale or use of any gasoline or diesel fuel;
 24-9                (31)  fails to remit any tax funds collected by a
24-10    distributor, supplier, dyed diesel fuel bonded user, agricultural
24-11    bonded user, dealer, interstate trucker, jobber, or any other
24-12    person required to hold a permit under this chapter;
24-13                (32)  makes a sale of diesel fuel tax free into a
24-14    storage facility of a person who:
24-15                      (A)  is not permitted as a supplier, as an
24-16    aviation fuel dealer, as a dyed diesel fuel bonded user, as an
24-17    agricultural bonded user, or as a diesel tax prepaid user of diesel
24-18    fuel; or
24-19                      (B)  does not furnish to the permitted supplier a
24-20    signed statement prescribed in Section 153.205 [of this code];
24-21                (33)  makes a sale of gasoline tax free to any person
24-22    who is not permitted as either a distributor or an aviation fuel
24-23    dealer;
24-24                (34)  is a dealer who purchases any motor fuel tax free
24-25    when not authorized to make a tax-free purchase under this chapter;
24-26                (35)  is a dealer who purchases motor fuel with the
24-27    intent to evade any tax imposed by this chapter, or who accepts a
 25-1    delivery of motor fuel by any means and does not at the same time
 25-2    accept or receive a shipping document relating to the delivery;
 25-3                (36)  transports motor fuel for which a cargo manifest
 25-4    or shipping document is required to be carried without possessing
 25-5    or exhibiting on demand by an officer authorized to make the demand
 25-6    a cargo manifest or shipping document containing the information
 25-7    required to be shown on the manifest or shipping document;
 25-8                (37)  imports, sells, uses, distributes, or stores
 25-9    motor fuel within this state on which the taxes imposed by this
25-10    chapter are owed but have not been first paid to or reported by the
25-11    holder of a distributor, supplier, liquefied gas dealer, interstate
25-12    trucker, diesel tax prepaid user, dyed diesel fuel bonded user, or
25-13    agricultural bonded user permit;
25-14                (38)  blends products together to produce a blended
25-15    fuel that is offered for sale, sold, or used that expands the
25-16    volume of the original product to evade paying applicable motor
25-17    fuel taxes; or
25-18                (39)  evades or attempts to evade in any manner a tax
25-19    imposed on motor fuel by this chapter.
25-20          SECTION 24. Sections 153.404(c) and (d), Tax Code, are
25-21    amended to read as follows:
25-22          (c)  The prohibition under Section 153.403(32) does not apply
25-23    to the tax-free sale or distribution of diesel fuel authorized by
25-24    Section 153.203(1), (2), [or] (5), (8), or (9).
25-25          (d)  The prohibition under Section 153.403(33) does not apply
25-26    to the tax-free sale or distribution of gasoline under Section
25-27    153.104(2), [or] (4), (7), or (8).
 26-1          SECTION 25. Section 183.053(b), Tax Code, is amended to read
 26-2    as follows:
 26-3          (b)  The total of bonds, certificates of deposit, letters of
 26-4    credit, or other security determined to be sufficient by the
 26-5    comptroller of a permittee subject to the tax imposed by this
 26-6    chapter shall be in an amount that the comptroller determines to be
 26-7    sufficient to protect the fiscal interests of the state.  The
 26-8    comptroller may not set the amount of security at less than $1,000
 26-9    or more than $50,000 [$25,000].
26-10          SECTION 26. Section A, Article 8.15, Texas Business
26-11    Corporation Act, is amended to read as follows:
26-12          A. The original and a copy of such application for
26-13    withdrawal, along with a certificate from the comptroller
26-14    [Comptroller of Public Accounts] that all [franchise] taxes,
26-15    including all applicable penalties and interest, administered by
26-16    the comptroller under Title 2, Tax Code, have been paid, shall be
26-17    delivered to the secretary of state [Secretary of State].  If the
26-18    secretary of state [Secretary of State] finds that such application
26-19    conforms to the provisions of this Act, the secretary of state
26-20    [Secretary of State] shall, when the appropriate filing fee is paid
26-21    as required by law:
26-22                (1)  Endorse on the original and the copy the word
26-23    "Filed," and the month, day, and year of the filing thereof.
26-24                (2)  File the original in the office of the secretary
26-25    of state [Secretary of State].
26-26                (3)  Issue a certificate of withdrawal to which shall
26-27    be affixed the copy.
 27-1          SECTION 27. Subsection A, Article 6.08, Texas Limited
 27-2    Liability Company Act (Article 1528n, Vernon's Texas Civil
 27-3    Statutes), is amended to read as follows:
 27-4          A. The original and a copy of such articles of dissolution,
 27-5    along with a certificate from the comptroller that all [franchise]
 27-6    taxes, including all applicable penalties and interest,
 27-7    administered by the comptroller under Title 2, Tax Code, have been
 27-8    paid, shall be delivered to the secretary of state [Secretary of
 27-9    State].  If the secretary of state [Secretary of State] finds that
27-10    such articles of dissolution conform to law, the secretary of state
27-11    [Secretary of State] shall, when the appropriate filing fee is paid
27-12    as required by law:
27-13                (1)  Endorse on the original and copy the word "Filed,"
27-14    and the month, day, and year of the filing thereof.
27-15                (2)  File the original in the secretary of state's
27-16    [Secretary of State's] office.
27-17                (3)  Issue a certificate of dissolution to which there
27-18    shall be affixed the copy.
27-19          SECTION 28. Subsection A, Article 7.10, Texas Limited
27-20    Liability Company Act (Article 1528n, Vernon's Texas Civil
27-21    Statutes), is amended to read as follows:
27-22          A. The original and a copy of such application for
27-23    withdrawal, along with a certificate from the comptroller that all
27-24    [franchise] taxes, including penalties and interest, administered
27-25    by the comptroller under Title 2, Tax Code, have been paid, shall
27-26    be delivered to the secretary of state [Secretary of State].  If
27-27    the secretary of state [Secretary of State] finds that such
 28-1    application conforms to the provisions of this Act, the secretary
 28-2    of state [Secretary of State] shall, when the appropriate filing
 28-3    fee is paid as required by law:
 28-4                (1)  Endorse on the original and the copy the word
 28-5    "Filed," and the month, day, and year of the filing thereof.
 28-6                (2)  File the original in the secretary of state's
 28-7    [Secretary of State's] office.
 28-8                (3)  Issue a certificate of withdrawal to which there
 28-9    shall be affixed the copy.
28-10          SECTION 29. Sections 151.710, 321.309, 321.310, 321.311,
28-11    322.206, 322.207, 322.208, 323.309, 323.310, and 323.311, Tax Code,
28-12    are repealed.
28-13          SECTION 30. (a)  This Act takes effect September 1, 2001.
28-14          (b)  The changes in law made by Sections 8 and 9 of this Act
28-15    apply only to a lien filed on or after the effective date of this
28-16    Act.  A lien filed before the effective date of this Act is
28-17    governed by the law in effect on the date the lien was filed, and
28-18    that law is continued in effect for that purpose.
28-19          (c)  The changes in law made by Sections 13 through 21 and by
28-20    Sections 23 and 24 of this Act apply only to an offense committed
28-21    on or after the effective date of this Act. For purposes of this
28-22    subsection, an offense is committed before the effective date of
28-23    this Act if any element of the offense is committed before that
28-24    date. An offense committed before the effective date of this Act is
28-25    covered by the law in effect when the offense was committed, and
28-26    the former law is continued in effect for that purpose.
28-27          (d)  The change in law made by Section 23 of this Act applies
 29-1    only to a signed statement furnished on or after the effective date
 29-2    of this Act.  A signed statement furnished before the effective
 29-3    date of this Act is governed by the law in effect on the date the
 29-4    statement was furnished, and that law is continued in effect for
 29-5    that purpose.
 29-6          (e)  The repeal of sections of Title 3, Tax Code, by Section
 29-7    29 of this Act does not affect a suit filed under those sections
 29-8    before the effective date of this Act, and those sections are
 29-9    continued in effect only for that purpose.