1-1 By: Armbrister S.B. No. 1123
1-2 (In the Senate - Filed March 6, 2001; March 7, 2001, read
1-3 first time and referred to Committee on Finance; April 2, 2001,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 12, Nays 0; April 2, 2001, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1123 By: Fraser
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the enforcement and collection of taxes, fees, and
1-10 other revenue; providing criminal penalties.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Article 2.12, Code of Criminal Procedure, as
1-13 amended by Chapters 90, 322, 882, and 974, Acts of the 76th
1-14 Legislature, Regular Session, 1999, is amended to read as follows:
1-15 Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
1-16 officers:
1-17 (1) sheriffs, their deputies, and those reserve
1-18 deputies who hold a permanent peace officer license issued under
1-19 Chapter 1701, Occupations [415, Government] Code;
1-20 (2) constables, deputy constables, and those reserve
1-21 deputy constables who hold a permanent peace officer license issued
1-22 under Chapter 1701, Occupations [415, Government] Code;
1-23 (3) marshals or police officers of an incorporated
1-24 city, town, or village, and those reserve municipal police officers
1-25 who hold a permanent peace officer license issued under Chapter
1-26 1701, Occupations [415, Government] Code;
1-27 (4) rangers and officers commissioned by the Public
1-28 Safety Commission and the Director of the Department of Public
1-29 Safety;
1-30 (5) investigators of the district attorneys', criminal
1-31 district attorneys', and county attorneys' offices;
1-32 (6) law enforcement agents of the Texas Alcoholic
1-33 Beverage Commission;
1-34 (7) each member of an arson investigating unit
1-35 commissioned by a city, a county, or the state;
1-36 (8) officers commissioned under Section 37.081,
1-37 Education Code, or Subchapter E, Chapter 51, Education Code;
1-38 (9) officers commissioned by the General Services
1-39 Commission;
1-40 (10) law enforcement officers commissioned by the
1-41 Parks and Wildlife Commission;
1-42 (11) airport police officers commissioned by a city
1-43 with a population of more than one million[, according to the most
1-44 recent federal census,] that operates an airport that serves
1-45 commercial air carriers;
1-46 (12) airport security personnel commissioned as peace
1-47 officers by the governing body of any political subdivision of this
1-48 state, other than a city described by Subdivision (11), that
1-49 operates an airport that serves commercial air carriers;
1-50 (13) municipal park and recreational patrolmen and
1-51 security officers;
1-52 (14) security officers and investigators commissioned
1-53 as peace officers by the comptroller;
1-54 (15) officers commissioned by a water control and
1-55 improvement district under Section 49.216, Water Code;
1-56 (16) officers commissioned by a board of trustees
1-57 under Chapter 54, Transportation Code [341, Acts of the 57th
1-58 Legislature, Regular Session, 1961 (Article 1187f, Vernon's Texas
1-59 Civil Statutes)];
1-60 (17) investigators commissioned by the Texas State
1-61 Board of Medical Examiners;
1-62 (18) officers commissioned by the board of managers of
1-63 the Dallas County Hospital District, the Tarrant County Hospital
1-64 District, or the Bexar County Hospital District under Section
2-1 281.057, Health and Safety Code;
2-2 (19) county park rangers commissioned under Subchapter
2-3 E, Chapter 351, Local Government Code;
2-4 (20) investigators employed by the Texas Racing
2-5 Commission;
2-6 (21) officers commissioned under Chapter 554,
2-7 Occupations Code [by the State Board of Pharmacy];
2-8 (22) officers commissioned by the governing body of a
2-9 metropolitan rapid transit authority under Section 451.108,
2-10 Transportation Code, or by a regional transportation authority
2-11 under Section 452.110, Transportation Code;
2-12 (23) investigators commissioned by the attorney
2-13 general under Section 402.009, Government Code;
2-14 (24) security officers and investigators commissioned
2-15 as peace officers under Chapter 466, Government Code;
2-16 (25) an officer employed by the Texas Department of
2-17 Health under Section 431.2471, Health and Safety Code;
2-18 (26) officers appointed by an appellate court under
2-19 Subchapter F, Chapter 53, Government Code;
2-20 (27) officers commissioned by the state fire marshal
2-21 under Chapter 417, Government Code;
2-22 (28) an investigator commissioned by the commissioner
2-23 of insurance under Article 1.10D, Insurance Code;
2-24 (29) apprehension specialists commissioned by the
2-25 Texas Youth Commission as officers under Section 61.0931, Human
2-26 Resources Code; [and]
2-27 (30) officers appointed by the executive director of
2-28 the Texas Department of Criminal Justice under Section 493.019,
2-29 Government Code;[.]
2-30 (31) [(30)] investigators commissioned by the
2-31 Commission on Law Enforcement Officer Standards and Education under
2-32 Section 1701.160, Occupations [415.016, Government] Code; and[.]
2-33 (32) commission [(30) board] investigators
2-34 commissioned by the Texas Commission on Private Security under
2-35 Section 1702.061(f), Occupations Code [10(f), Private Investigators
2-36 and Private Security Agencies Act (Article 4413(29bb), Vernon's
2-37 Texas Civil Statutes)].
2-38 SECTION 2. Section 411.109, Government Code, is amended to
2-39 read as follows:
2-40 Sec. 411.109. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
2-41 COMPTROLLER. (a) The comptroller is entitled to obtain from the
2-42 department criminal history record information maintained by the
2-43 department that the comptroller believes is necessary for the
2-44 enforcement or administration of Chapter 151, 152, 153, 154, or
2-45 [Chapter] 155, Tax Code, including criminal history record
2-46 information that relates to a person who is:
2-47 (1) an applicant for a permit under any of those
2-48 chapters [Chapter 154 or Chapter 155, Tax Code];
2-49 (2) a permit holder under any [either] of those
2-50 chapters;
2-51 (3) an officer, director, stockholder owning 10
2-52 percent or more of the outstanding stock, partner, owner, or
2-53 managing employee of an applicant or permit holder under any
2-54 [either] of those chapters that is a corporation, association,
2-55 joint venture, syndicate, partnership, or proprietorship;
2-56 (4) believed to have violated any of those chapters
2-57 [Chapter 154 or Chapter 155, Tax Code]; or
2-58 (5) being considered by the comptroller for employment
2-59 as a peace officer.
2-60 (b) The comptroller is entitled to obtain from the
2-61 department criminal history record information maintained by the
2-62 department that relates to a person who is an employee of or an
2-63 applicant for employment with the comptroller's office in a
2-64 position that involves:
2-65 (1) handling currency, checks, or other funds;
2-66 (2) having access to taxpayer account information;
2-67 (3) working in a location designated by the
2-68 comptroller as a security-sensitive area; or
2-69 (4) performing financial management duties designated
3-1 by the comptroller as security sensitive.
3-2 (c) The comptroller is entitled to obtain from the
3-3 department criminal history record information maintained by the
3-4 department that the comptroller believes is necessary for the
3-5 enforcement or administration of Chapter 159, Tax Code.
3-6 (d) Criminal history record information obtained by the
3-7 comptroller under Subsections (a), [and] (b), and (c) may not be
3-8 released or disclosed to any person except on court order or as
3-9 provided by Subsection (e) [(d)].
3-10 (e) [(d)] The comptroller is not prohibited from disclosing
3-11 to a person who is the subject of criminal history record
3-12 information the dates and places of arrests, the offenses, and the
3-13 dispositions in the criminal history record information.
3-14 SECTION 3. Section 111.020, Tax Code, is amended by adding
3-15 Subsection (f) to read as follows:
3-16 (f) Compliance with Subsection (a) is not a defense to an
3-17 assessment of tax liability under Section 111.024 if:
3-18 (1) the amount withheld from the purchase price is not
3-19 sufficient to fully satisfy the liability of the seller of the
3-20 business or stock of goods; and
3-21 (2) the purchase price paid to the seller for the
3-22 business or stock of goods is not reasonably equivalent to the
3-23 value of the business or stock of goods.
3-24 SECTION 4. Subsections (a) and (c), Section 111.021, Tax
3-25 Code, are amended to read as follows:
3-26 (a) If a person is delinquent in the payment of an amount
3-27 required to be paid or has not paid an amount claimed in a
3-28 determination made against the person, the comptroller may notify
3-29 personally, [or] by [registered] mail, or by means of facsimile or
3-30 electronic transmission any other person who:
3-31 (1) possesses or controls a credit, bank or savings
3-32 account, deposit, or other intangible or personal property
3-33 belonging to the delinquent or the person against whom the unpaid
3-34 determination is made, hereafter referred to as "assets"; or
3-35 (2) owes a debt to the delinquent or person against
3-36 whom the unpaid determination is made.
3-37 (c) A notice under this section may be given at any time
3-38 within three years after the payment becomes delinquent or within
3-39 three years after the last recording of a lien filed under this
3-40 title, but not thereafter. The notice must state the amount of
3-41 taxes, penalties and interest due and owing, and an additional
3-42 amount of penalties and interest that will accrue by operation of
3-43 law in a period not to exceed 30 days and, in the case of a credit,
3-44 bank or savings account or deposit, is effective only up to that
3-45 amount.
3-46 SECTION 5. Subsection (a), Section 111.022, Tax Code, is
3-47 amended to read as follows:
3-48 (a) If the comptroller believes that the collection of a tax
3-49 required to be paid to the state or the amount due for a tax period
3-50 [of a determination] is jeopardized by delay, the comptroller shall
3-51 issue a determination stating the amount and that the tax
3-52 collection is in jeopardy. The amount required to be paid to the
3-53 state or due for the tax period [determined] is due and payable
3-54 immediately.
3-55 SECTION 6. Subchapter A, Chapter 111, Tax Code, is amended
3-56 by adding Section 111.024 to read as follows:
3-57 Sec. 111.024. LIABILITY IN FRAUDULENT TRANSFERS. (a) A
3-58 person who acquires a business or the assets of a business from a
3-59 taxpayer through a fraudulent transfer or a sham transaction is
3-60 liable for any tax, penalty, and interest owed by the taxpayer.
3-61 (b) A transfer of a business or the assets of a business is
3-62 considered to be a fraudulent transfer or a sham transaction if the
3-63 taxpayer made the transfer or undertook the transaction:
3-64 (1) with intent to evade, hinder, delay, or prevent
3-65 the collection of any tax, penalty, or interest owed under this
3-66 title; or
3-67 (2) without receiving a reasonably equivalent value in
3-68 exchange for the business or business assets subject to the
3-69 transfer or transaction.
4-1 (c) In determining the intent of the taxpayer under
4-2 Subsection (b)(1), consideration may be given, among other factors,
4-3 to whether:
4-4 (1) the transfer was to a current or former business
4-5 insider, associate, or employee of the taxpayer or to a person
4-6 related to the taxpayer within the third degree of consanguinity by
4-7 blood or marriage;
4-8 (2) the transfer was to a third party who subsequently
4-9 transferred the business or assets of the business to a current or
4-10 former business insider, associate, or employee of the taxpayer or
4-11 to a person related to the taxpayer within the third degree of
4-12 consanguinity by blood or marriage;
4-13 (3) the taxpayer retained possession or control of the
4-14 business or the assets of the business after the transfer or
4-15 transaction;
4-16 (4) the taxpayer's business and the transferee's
4-17 business are essentially operated as a single business entity at
4-18 the same location;
4-19 (5) before the transfer or the transaction occurred,
4-20 the taxpayer had either been subjected to or apprised of impending
4-21 collection action by the comptroller or by the attorney general;
4-22 (6) the transfer or transaction was concealed;
4-23 (7) the taxpayer was insolvent at the time of the
4-24 transfer or became insolvent not later than the 31st day after the
4-25 date the transfer or transaction occurred; or
4-26 (8) the transfer or transaction involved all or
4-27 substantially all of the taxpayer's assets.
4-28 (d) This section does not apply to a transfer of a business
4-29 or the assets of a business:
4-30 (1) through a court order on dissolution of a
4-31 marriage; or
4-32 (2) by descent or distribution or testate succession
4-33 on the death of a taxpayer.
4-34 SECTION 7. Section 113.009, Tax Code, is amended by adding
4-35 Subsection (c) to read as follows:
4-36 (c) A state tax lien filed under this chapter may not be
4-37 released fully until the taxpayer pays all other taxes, penalties,
4-38 interest, fees, or sums that the taxpayer owes the state and that
4-39 are administered or collected by the comptroller.
4-40 SECTION 8. Subsection (b), Section 113.105, Tax Code, is
4-41 amended to read as follows:
4-42 (b) The state tax lien on personal property and real estate
4-43 attaches to personal property and real estate owned by the taxpayer
4-44 beginning on the first day of the period for which [on or after the
4-45 date] the lien is filed by the state.
4-46 SECTION 9. Section 151.023, Tax Code, is amended to read as
4-47 follows:
4-48 Sec. 151.023. INVESTIGATIONS AND AUDITS. (a) The
4-49 comptroller, or another person authorized by the comptroller in
4-50 writing, may examine, copy, and photograph the books, records,
4-51 papers, and equipment of a person who sells taxable items or of a
4-52 person liable for the use tax and may investigate the character of
4-53 the business of the person to verify the accuracy of the person's
4-54 report or to determine the amount of tax that may be required to be
4-55 paid if no report has been filed.
4-56 (b) For the purpose of determining the amount of tax
4-57 collected and payable to the state, the amount of tax accruing and
4-58 due, and whether a tax liability has been incurred under this
4-59 chapter, the comptroller or a person authorized by the comptroller
4-60 may:
4-61 (1) inspect at any time during business hours any
4-62 business premises where a taxable event has occurred and examine,
4-63 copy, and photograph the books, returns, records, papers, and
4-64 equipment relating to the conduct in question; and
4-65 (2) require by delivery of written notice to the
4-66 taxpayer or to an employee, representative, or agent of the
4-67 taxpayer that, not later than the 10th working day after the date
4-68 the notice is delivered, the taxpayer produce to an agent or
4-69 designated representative of the comptroller for inspection the
5-1 books, records, papers, and returns relating to the taxable
5-2 activity stated in the notice.
5-3 SECTION 10. Subsection (a), Section 151.025, Tax Code, is
5-4 amended to read as follows:
5-5 (a) All sellers and all other persons storing, using, or
5-6 consuming in this state a taxable item purchased from a retailer
5-7 shall keep the following records:
5-8 (1) records of gross receipts, including documentation
5-9 in the form of receipts, shipping manifests, invoices, and other
5-10 pertinent papers, from each rental, lease, taxable service, and
5-11 taxable labor transaction occurring during each reporting period;
5-12 (2) records in the form of receipts, shipping
5-13 manifests, invoices, and other pertinent papers of all purchases of
5-14 taxable items from every source made during each reporting period;
5-15 and
5-16 (3) records in the form of receipts, shipping
5-17 manifests, invoices, and other pertinent papers that substantiate
5-18 each claimed deduction or exclusion authorized by law[, receipts,
5-19 invoices, and other pertinent papers in the form that the
5-20 comptroller reasonably requires].
5-21 SECTION 11. Subsection (b), Section 151.253, Tax Code, is
5-22 amended to read as follows:
5-23 (b) The comptroller shall fix the amount of security
5-24 required in each case, taking into consideration the amount of tax
5-25 that has or is expected to become due from the person under this
5-26 chapter and all other applicable local sales and use taxes [the
5-27 Local Sales and Use Tax Act] and the necessity to protect the state
5-28 against the failure to pay these taxes. The[, except that the]
5-29 maximum amount of security that may be required is the greater
5-30 [lesser] of $100,000 [$50,000] or four [three] times the amount of
5-31 the person's average monthly tax liability.
5-32 SECTION 12. Subchapter L, Chapter 151, Tax Code, is amended
5-33 by adding Section 151.7032 to read as follows:
5-34 Sec. 151.7032. FAILURE TO PAY TAXES COLLECTED; CRIMINAL
5-35 PENALTY. (a) A person commits an offense if the person
5-36 intentionally or knowingly fails to pay to the comptroller, as
5-37 required by this chapter, the tax collected by that person.
5-38 (b) An offense under this section is:
5-39 (1) a Class C misdemeanor if the amount of the tax
5-40 collected and not paid is less than $10,000;
5-41 (2) a state jail felony if the amount of the tax
5-42 collected and not paid is $10,000 or more but less than $20,000;
5-43 (3) a felony of the third degree if the amount of the
5-44 tax collected and not paid is $20,000 or more but less than
5-45 $100,000; and
5-46 (4) a felony of the second degree if the amount of the
5-47 tax collected and not paid is $100,000 or more.
5-48 SECTION 13. Section 151.708, Tax Code, is amended to read as
5-49 follows:
5-50 Sec. 151.708. SELLING WITHOUT PERMIT; CRIMINAL PENALTY.
5-51 (a) A person or officer of a corporation commits an offense if the
5-52 person or corporation engages in business as a retailer in this
5-53 state without a permit required by this chapter or after the permit
5-54 is suspended.
5-55 (b) A first [An] offense under this section is a Class C
5-56 misdemeanor [punishable by a fine of not more than $500].
5-57 (c) If it is shown on the trial of an offense under this
5-58 section that the person or officer has previously been finally
5-59 convicted of one offense under this section, on conviction the
5-60 person or officer shall be punished for a Class B misdemeanor
5-61 punishable by a fine only, not to exceed $2,000 [A separate offense
5-62 is committed each day that a person or officer of a corporation
5-63 violates this section].
5-64 (d) If it is shown on the trial of an offense under this
5-65 section that the person or officer has previously been finally
5-66 convicted of two offenses under this section, on conviction the
5-67 person or officer shall be punished for a Class A misdemeanor
5-68 punishable by a fine only, not to exceed $4,000.
5-69 (e) If it is shown on the trial of an offense under this
6-1 section that the person or officer has previously been finally
6-2 convicted of three or more offenses under this section, on
6-3 conviction the person or officer shall be punished for a Class A
6-4 misdemeanor punishable by a fine not to exceed $4,000, confinement
6-5 in jail for a term not to exceed one year, or both the fine and
6-6 confinement.
6-7 (f) Each day a person or an officer of a corporation
6-8 operates a business without a permit or with a suspended permit is
6-9 a separate offense under this section.
6-10 SECTION 14. Section 151.709, Tax Code, is amended to read as
6-11 follows:
6-12 Sec. 151.709. FAILURE TO FURNISH REPORT [OR INFORMATION];
6-13 CRIMINAL PENALTY. (a) A person commits an offense if the person
6-14 refuses to furnish a report [or other data] as required by this
6-15 chapter or by the comptroller as authorized by this chapter.
6-16 (b) A first [An] offense under this section is a Class C
6-17 misdemeanor [punishable by a fine of not more than $500].
6-18 (c) If it is shown on the trial of an offense under this
6-19 section that the person has previously been finally convicted of
6-20 one offense under this section, on conviction the person shall be
6-21 punished for a Class B misdemeanor punishable by a fine only, not
6-22 to exceed $2,000.
6-23 (d) If it is shown on the trial of an offense under this
6-24 section that the person has previously been finally convicted of
6-25 two or more offenses under this section, on conviction the person
6-26 shall be punished for a Class A misdemeanor punishable by a fine
6-27 only, not to exceed $4,000.
6-28 SECTION 15. Subchapter L, Chapter 151, Tax Code, is amended
6-29 by adding Sections 151.7101, 151.7102, and 151.7103 to read as
6-30 follows:
6-31 Sec. 151.7101. ELECTION OF OFFENSES. If a violation of a
6-32 criminal provision of this chapter by a taxpayer constitutes
6-33 another offense under the laws of this state, the state may elect
6-34 the offense for which it will prosecute the taxpayer.
6-35 Sec. 151.7102. FALSE ENTRY OR FAILURE TO ENTER IN RECORDS.
6-36 (a) A person commits an offense if the person intentionally or
6-37 knowingly conceals, destroys, makes a false entry in, or fails to
6-38 make an entry in records that are required to be made or kept under
6-39 this chapter.
6-40 (b) An offense under this section is a felony of the third
6-41 degree.
6-42 Sec. 151.7103. FAILURE TO PRODUCE FOR INSPECTION OR ALLOW
6-43 INSPECTION OF RECORDS. (a) A person commits an offense if the
6-44 person is asked, by a person authorized by the comptroller, to
6-45 produce or allow inspection of a record required to be kept under
6-46 this chapter and the person fails to produce the record or allow
6-47 the inspection after the allowed time.
6-48 (b) An offense under this section is a Class C misdemeanor.
6-49 Each day the person fails to allow inspection of records or produce
6-50 records for inspection after receiving a request is a separate
6-51 offense.
6-52 SECTION 16. Subchapter L, Chapter 151, Tax Code, is amended
6-53 by adding Section 151.714 to read as follows:
6-54 Sec. 151.714. VENUE FOR CRIMINAL PROSECUTION. Venue for
6-55 prosecution for an offense under this chapter is in:
6-56 (1) the county in which any element of the offense
6-57 occurs; or
6-58 (2) Travis County.
6-59 SECTION 17. Subsection (b), Section 152.101, Tax Code, is
6-60 amended to read as follows:
6-61 (b) An offense under this section is a felony of the third
6-62 degree [punishable by imprisonment for not less than two nor more
6-63 than five years or a fine of not more than $1,000, or both].
6-64 SECTION 18. Subsection (b), Section 152.102, Tax Code, is
6-65 amended to read as follows:
6-66 (b) An offense under this section is a Class C misdemeanor
6-67 [punishable by a fine of not less than $10 nor more than $500 or
6-68 confinement in the county jail for not less than one day nor more
6-69 than 30 days, or both].
7-1 SECTION 19. Subsection (b), Section 152.103, Tax Code, is
7-2 amended to read as follows:
7-3 (b) An offense under this section is a Class C misdemeanor
7-4 [punishable by a fine of not less than $25 nor more than $500].
7-5 SECTION 20. Subchapter F, Chapter 152, Tax Code, is amended
7-6 by adding Sections 152.104 and 152.105 to read as follows:
7-7 Sec. 152.104. FAILURE TO REMIT TAX COLLECTED. (a) A person
7-8 who is a dealer, as defined by Section 503.001, Transportation
7-9 Code, or who is acting in the capacity of a dealer, commits an
7-10 offense if the person intentionally or knowingly fails to pay to
7-11 the tax assessor-collector the motor vehicle sales tax collected as
7-12 required by this chapter.
7-13 (b) An offense under this section is:
7-14 (1) a Class C misdemeanor if the value of the tax
7-15 collected and not paid is less than $1,500;
7-16 (2) a state jail felony if the value of the tax
7-17 collected and not paid is $1,500 or more but less than $20,000;
7-18 (3) a felony of the third degree if the value of the
7-19 tax collected and not paid is $20,000 or more but less than
7-20 $100,000;
7-21 (4) a felony of the second degree if the value of the
7-22 tax collected and not paid is $100,000 or more but less than
7-23 $200,000; and
7-24 (5) a felony of the first degree if the value of the
7-25 tax collected and not paid is $200,000 or more.
7-26 (c) When amounts are obtained in violation of this section
7-27 pursuant to one scheme or continuing course of conduct, whether
7-28 from the same or several resources, the conduct may be considered
7-29 as one offense and the amounts aggregated in determining the grade
7-30 of the offense.
7-31 Sec. 152.105. VENUE FOR CRIMINAL PROSECUTIONS. Venue for
7-32 prosecution of any offense under this chapter is in:
7-33 (1) the county in which any element of the offense
7-34 occurs; or
7-35 (2) Travis County.
7-36 SECTION 21. Subsection (a), Section 153.402, Tax Code, is
7-37 amended to read as follows:
7-38 (a) A person forfeits to the state a civil penalty of not
7-39 less than $25 nor more than $200 if the person:
7-40 (1) refuses to stop and permit the inspection and
7-41 examination of a motor vehicle transporting or using motor fuel on
7-42 demand of a peace officer or the comptroller;
7-43 (2) operates a motor vehicle in this state without a
7-44 valid interstate trucker's or a trip permit when the person is
7-45 required to hold one of those permits;
7-46 (3) operates a liquefied gas-propelled motor vehicle
7-47 that is required to be licensed in Texas, including motor vehicles
7-48 equipped with dual carburetion, and does not display a current
7-49 liquefied gas tax decal or multistate fuels tax agreement decal;
7-50 (4) makes a tax-free sale or delivery of liquefied gas
7-51 into the fuel supply tank of a motor vehicle that does not display
7-52 a current Texas liquefied gas tax decal;
7-53 (5) makes a taxable sale or delivery of liquefied gas
7-54 without holding a valid dealer's permit;
7-55 (6) makes a tax-free sale or delivery of liquefied gas
7-56 into the fuel supply tank of a motor vehicle bearing out-of-state
7-57 license plates;
7-58 (7) makes a delivery of liquefied gas into the fuel
7-59 supply tank of a motor vehicle bearing Texas license plates and no
7-60 Texas liquefied gas tax decal, unless licensed under a multistate
7-61 fuels tax agreement;
7-62 (8) transports gasoline or diesel fuel in any cargo
7-63 tank that has a connection by pipe, tube, valve, or otherwise with
7-64 the fuel injector or carburetor or with the fuel supply tank
7-65 feeding the fuel injector or carburetor of the motor vehicle
7-66 transporting the product;
7-67 (9) sells or delivers gasoline or diesel fuel from any
7-68 fuel supply tank connected with the fuel injector or carburetor of
7-69 a motor vehicle;
8-1 (10) owns or operates a motor vehicle for which
8-2 reports or mileage records are required by this chapter without an
8-3 operating odometer or other device in good working condition to
8-4 record accurately the miles traveled;
8-5 (11) furnishes to a supplier a signed statement [to a
8-6 supplier] for purchasing diesel fuel tax free and then uses the
8-7 tax-free diesel fuel to operate a diesel-powered motor vehicle on a
8-8 public highway [of a type that may be legally used by the purchaser
8-9 for the operation of a motor vehicle on the public highway under
8-10 state or federal law tax free when he owns, operates, or acquires a
8-11 diesel-powered motor vehicle];
8-12 (12) fails or refuses to comply with or violates a
8-13 provision of this chapter;
8-14 (13) fails or refuses to comply with or violates a
8-15 comptroller's rule for administering or enforcing this chapter;
8-16 (14) is an importer who does not obtain an import
8-17 verification number when required by this chapter; or
8-18 (15) purchases motor fuel for export, on which the tax
8-19 imposed by this chapter has not been paid, and subsequently diverts
8-20 or causes the motor fuel to be diverted to a destination in this
8-21 state or any other state or country other than the originally
8-22 designated state or country without first obtaining a diversion
8-23 number.
8-24 SECTION 22. Section 153.403, Tax Code, is amended to read as
8-25 follows:
8-26 Sec. 153.403. CRIMINAL OFFENSES. Except as provided by
8-27 Section 153.404 [of this code], a person commits an offense if the
8-28 person:
8-29 (1) refuses to stop and permit the inspection and
8-30 examination of a motor vehicle transporting or using motor fuel on
8-31 the demand of a peace officer or the comptroller;
8-32 (2) is required to hold a valid trip permit or
8-33 interstate trucker's permit, but operates a motor vehicle in this
8-34 state without a valid trip permit or interstate trucker's permit;
8-35 (3) operates a liquefied gas-propelled motor vehicle
8-36 that is required to be licensed in Texas, including a motor vehicle
8-37 equipped with dual carburetion, and does not display a current
8-38 liquefied gas tax decal or multistate fuels tax agreement decal;
8-39 (4) transports gasoline or diesel fuel in any cargo
8-40 tank that has a connection by pipe, tube, valve, or otherwise with
8-41 the fuel injector or carburetor or with the fuel supply tank
8-42 feeding the fuel injector or carburetor of the motor vehicle
8-43 transporting the product;
8-44 (5) sells or delivers gasoline or diesel fuel from a
8-45 fuel supply tank that is connected with the fuel injector or
8-46 carburetor of a motor vehicle;
8-47 (6) owns or operates a motor vehicle for which reports
8-48 or mileage records are required by this chapter without an
8-49 operating odometer or other device in good working condition to
8-50 record accurately the miles traveled;
8-51 (7) as a diesel tax prepaid user fails to prepay the
8-52 tax on every diesel-powered motor vehicle owned or operated by him;
8-53 (8) uses dyed diesel fuel, on which a tax is required
8-54 to be paid, for the operation of a motor vehicle on a public
8-55 highway;
8-56 (9) makes a tax-free sale or delivery of liquefied gas
8-57 into the fuel supply tank of a motor vehicle that does not display
8-58 a current Texas liquefied gas tax decal;
8-59 (10) makes a sale or delivery of liquefied gas on
8-60 which the person knows the tax is required to be collected, if at
8-61 the time the sale is made the person does not hold a valid dealer's
8-62 permit;
8-63 (11) makes a tax-free sale or delivery of liquefied
8-64 gas into the fuel supply tank of a motor vehicle bearing
8-65 out-of-state license plates;
8-66 (12) makes a delivery of liquefied gas into the fuel
8-67 supply tank of a motor vehicle bearing Texas license plates and no
8-68 Texas liquefied gas tax decal, unless licensed under a multistate
8-69 fuels tax agreement;
9-1 (13) refuses to permit the comptroller or the attorney
9-2 general to inspect, examine, or audit a book or record required to
9-3 be kept by a distributor, supplier, dyed diesel fuel bonded user,
9-4 agricultural bonded user, dealer, interstate trucker, aviation fuel
9-5 dealer, jobber, common or contract carrier, or any person required
9-6 to hold a permit under this chapter;
9-7 (14) refuses to permit the comptroller or the attorney
9-8 general to inspect or examine any plant, equipment, materials, or
9-9 premises where motor fuel is produced, processed, stored, sold,
9-10 delivered, or used;
9-11 (15) refuses to permit the comptroller, [or] the
9-12 attorney general, an employee of either of those officials, a peace
9-13 officer, an employee of the Texas Natural Resource Conservation
9-14 Commission, or an employee of the Department of Agriculture to
9-15 measure or gauge the contents of or take samples from a storage
9-16 tank or container on premises where motor fuel is produced,
9-17 processed, stored, sold, delivered, or used;
9-18 (16) is a distributor, dyed diesel fuel bonded user,
9-19 agricultural bonded user, interstate trucker, or supplier and fails
9-20 or refuses to make or deliver to the comptroller a report required
9-21 by this chapter to be made and delivered to the comptroller;
9-22 (17) is an importer who does not obtain an import
9-23 verification number when required by this chapter;
9-24 (18) purchases motor fuel for export, on which the tax
9-25 imposed by this chapter has not been paid, and subsequently diverts
9-26 or causes the motor fuel to be diverted to a destination in this
9-27 state or any other state or country other than the originally
9-28 designated state or country without first obtaining a diversion
9-29 number;
9-30 (19) conceals motor fuel with the intent of engaging
9-31 in any conduct proscribed by this chapter or refuses to make sales
9-32 of motor fuel on the volume-corrected basis prescribed by this
9-33 chapter;
9-34 (20) refuses, while transporting motor fuel, to stop
9-35 the motor vehicle he is operating when called on to do so by a
9-36 person authorized to stop the motor vehicle;
9-37 (21) refuses to surrender a motor vehicle and cargo
9-38 for impoundment after being ordered to do so by a person authorized
9-39 to impound the motor vehicle and cargo;
9-40 (22) mutilates, destroys, or secretes a book or record
9-41 required by this chapter to be kept by a distributor, supplier,
9-42 dyed diesel fuel bonded user, agricultural bonded user, dealer,
9-43 interstate trucker, aviation fuel dealer, jobber, or person
9-44 required to hold a permit under this chapter;
9-45 (23) is a distributor, supplier, dyed diesel fuel
9-46 bonded user, agricultural bonded user, dealer, interstate trucker,
9-47 aviation fuel dealer, jobber, or other person required to hold a
9-48 permit under this chapter, or the agent or employee of one of those
9-49 persons and makes a false entry or fails to make an entry in the
9-50 books and records required under this chapter to be made by the
9-51 person or fails to retain a document as required by this chapter;
9-52 (24) transports in any manner motor fuel under a false
9-53 cargo manifest or shipping document, or transports in any manner
9-54 motor fuel to a location without delivering at the same time a
9-55 shipping document relating to that shipment;
9-56 (25) engages in a motor fuel transaction that requires
9-57 that the person have a permit under this chapter without then and
9-58 there holding the required permit;
9-59 (26) makes and delivers to the comptroller a report
9-60 required under this chapter to be made and delivered to the
9-61 comptroller, if the report contains false information;
9-62 (27) forges, falsifies, or alters an invoice
9-63 prescribed by law;
9-64 (28) makes any statement, knowing said statement to be
9-65 false, in a claim for a tax refund filed with the comptroller;
9-66 (29) furnishes to a supplier a signed statement for
9-67 purchasing diesel fuel tax free and then uses the tax-free diesel
9-68 fuel to operate a diesel-powered motor vehicle on a public highway
9-69 [of a type that may be legally used by the purchaser for the
10-1 operation of a motor vehicle on the public highway under state or
10-2 federal law tax free when he owns, operates, or acquires a
10-3 diesel-powered motor vehicle];
10-4 (30) holds an aviation fuel dealer's permit and makes
10-5 a taxable sale or use of any gasoline or diesel fuel;
10-6 (31) fails to remit any tax funds collected by a
10-7 distributor, supplier, dyed diesel fuel bonded user, agricultural
10-8 bonded user, dealer, interstate trucker, jobber, or any other
10-9 person required to hold a permit under this chapter;
10-10 (32) makes a sale of diesel fuel tax free into a
10-11 storage facility of a person who:
10-12 (A) is not permitted as a supplier, as an
10-13 aviation fuel dealer, as a dyed diesel fuel bonded user, as an
10-14 agricultural bonded user, or as a diesel tax prepaid user of diesel
10-15 fuel; or
10-16 (B) does not furnish to the permitted supplier a
10-17 signed statement prescribed in Section 153.205 [of this code];
10-18 (33) makes a sale of gasoline tax free to any person
10-19 who is not permitted as either a distributor or an aviation fuel
10-20 dealer;
10-21 (34) is a dealer who purchases any motor fuel tax free
10-22 when not authorized to make a tax-free purchase under this chapter;
10-23 (35) is a dealer who purchases motor fuel with the
10-24 intent to evade any tax imposed by this chapter, or who accepts a
10-25 delivery of motor fuel by any means and does not at the same time
10-26 accept or receive a shipping document relating to the delivery;
10-27 (36) transports motor fuel for which a cargo manifest
10-28 or shipping document is required to be carried without possessing
10-29 or exhibiting on demand by an officer authorized to make the demand
10-30 a cargo manifest or shipping document containing the information
10-31 required to be shown on the manifest or shipping document;
10-32 (37) imports, sells, uses, distributes, or stores
10-33 motor fuel within this state on which the taxes imposed by this
10-34 chapter are owed but have not been first paid to or reported by the
10-35 holder of a distributor, supplier, liquefied gas dealer, interstate
10-36 trucker, diesel tax prepaid user, dyed diesel fuel bonded user, or
10-37 agricultural bonded user permit;
10-38 (38) blends products together to produce a blended
10-39 fuel that is offered for sale, sold, or used that expands the
10-40 volume of the original product to evade paying applicable motor
10-41 fuel taxes; or
10-42 (39) evades or attempts to evade in any manner a tax
10-43 imposed on motor fuel by this chapter.
10-44 SECTION 23. Subsections (c) and (d), Section 153.404, Tax
10-45 Code, are amended to read as follows:
10-46 (c) The prohibition under Section 153.403(32) does not apply
10-47 to the tax-free sale or distribution of diesel fuel authorized by
10-48 Section 153.203(1), (2), [or] (5), (8), or (9).
10-49 (d) The prohibition under Section 153.403(33) does not apply
10-50 to the tax-free sale or distribution of gasoline under Section
10-51 153.104(2), [or] (4), (7), or (8).
10-52 SECTION 24. Subsection (b), Section 183.053, Tax Code, is
10-53 amended to read as follows:
10-54 (b) The total of bonds, certificates of deposit, letters of
10-55 credit, or other security determined to be sufficient by the
10-56 comptroller of a permittee subject to the tax imposed by this
10-57 chapter shall be in an amount that the comptroller determines to be
10-58 sufficient to protect the fiscal interests of the state. The
10-59 comptroller may not set the amount of security at less than $1,000
10-60 or more than $50,000 [$25,000].
10-61 SECTION 25. Section A, Article 8.15, Texas Business
10-62 Corporation Act, is amended to read as follows:
10-63 A. The original and a copy of such application for
10-64 withdrawal, along with a certificate from the comptroller
10-65 [Comptroller of Public Accounts] that all [franchise] taxes,
10-66 including all applicable penalties and interest, administered by
10-67 the comptroller under Title 2, Tax Code, have been paid, shall be
10-68 delivered to the secretary of state [Secretary of State]. If the
10-69 secretary of state [Secretary of State] finds that such application
11-1 conforms to the provisions of this Act, the secretary of state
11-2 [Secretary of State] shall, when the appropriate filing fee is paid
11-3 as required by law:
11-4 (1) Endorse on the original and the copy the word
11-5 "Filed," and the month, day, and year of the filing thereof.
11-6 (2) File the original in the office of the secretary
11-7 of state [Secretary of State].
11-8 (3) Issue a certificate of withdrawal to which shall
11-9 be affixed the copy.
11-10 SECTION 26. Section A, Article 6.08, Texas Limited Liability
11-11 Company Act (Article 1528n, Vernon's Texas Civil Statutes), is
11-12 amended to read as follows:
11-13 A. The original and a copy of such articles of dissolution,
11-14 along with a certificate from the comptroller that all [franchise]
11-15 taxes, including all applicable penalties and interest,
11-16 administered by the comptroller under Title 2, Tax Code, have been
11-17 paid, shall be delivered to the secretary of state [Secretary of
11-18 State]. If the secretary of state [Secretary of State] finds that
11-19 such articles of dissolution conform to law, the secretary of state
11-20 [Secretary of State] shall, when the appropriate filing fee is paid
11-21 as required by law:
11-22 (1) Endorse on the original and copy the word "Filed,"
11-23 and the month, day, and year of the filing thereof.
11-24 (2) File the original in the secretary of state's
11-25 [Secretary of State's] office.
11-26 (3) Issue a certificate of dissolution to which there
11-27 shall be affixed the copy.
11-28 SECTION 27. Section A, Article 7.10, Texas Limited Liability
11-29 Company Act (Article 1528n, Vernon's Texas Civil Statutes), is
11-30 amended to read as follows:
11-31 A. The original and a copy of such application for
11-32 withdrawal, along with a certificate from the comptroller that all
11-33 [franchise] taxes, including penalties and interest, administered
11-34 by the comptroller under Title 2, Tax Code, have been paid, shall
11-35 be delivered to the secretary of state [Secretary of State]. If
11-36 the secretary of state [Secretary of State] finds that such
11-37 application conforms to the provisions of this Act, the secretary
11-38 of state [Secretary of State] shall, when the appropriate filing
11-39 fee is paid as required by law:
11-40 (1) Endorse on the original and the copy the word
11-41 "Filed," and the month, day, and year of the filing thereof.
11-42 (2) File the original in the secretary of state's
11-43 [Secretary of State's] office.
11-44 (3) Issue a certificate of withdrawal to which there
11-45 shall be affixed the copy.
11-46 SECTION 28. Section 151.710, Tax Code, is repealed.
11-47 SECTION 29. (a) This Act takes effect September 1, 2001.
11-48 (b) The changes in law made by Sections 7 and 8 of this Act
11-49 apply only to a lien filed on or after the effective date of this
11-50 Act. A lien filed before the effective date of this Act is
11-51 governed by the law in effect on the date the lien was filed, and
11-52 that law is continued in effect for that purpose.
11-53 (c) The changes in law made by Sections 12 through 20 and by
11-54 Sections 22 and 23 of this Act apply only to an offense committed
11-55 on or after the effective date of this Act. For purposes of this
11-56 subsection, an offense is committed before the effective date of
11-57 this Act if any element of the offense is committed before that
11-58 date. An offense committed before the effective date of this Act
11-59 is covered by the law in effect when the offense was committed, and
11-60 the former law is continued in effect for that purpose.
11-61 (d) The change in law made by Section 22 of this Act applies
11-62 only to a signed statement furnished on or after the effective date
11-63 of this Act. A signed statement furnished before the effective
11-64 date of this Act is governed by the law in effect on the date the
11-65 statement was furnished, and that law is continued in effect for
11-66 that purpose.
11-67 * * * * *