LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 27, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1123  by Armbrister (Relating to the enforcement and
               collection of taxes, fees, and other revenue; providing
               criminal penalties.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would codify various issues on tax enforcement and tax
administration.  The proposed amendments would clarify and support the
Comptroller's duties in enforcing and administering the tax laws of the
state.  All affected agencies indicate the changes proposed in the bill
would not have a significant fiscal impact.

The bill would (1) amend the Code of Criminal Procedure, the Government
Code, the Tax Code, the Business Corporation Act, and the Limited
Liability Company Act concerning the enforcement of various taxes and
fees collected by the Comptroller; (2) expand Comptroller's access to
Texas Department of Public Safety criminal history records when necessary
for the enforcement and administration of various taxes; (3) establish a
liability for delinquent taxes, penalties, and interest for persons who
acquire a business through a fraudulent transfer with the intent to evade
tax collections; (4) clarify the required records that must be
maintained by those collecting or owing limited sales and use tax; (5)
raise the amount of security that the Comptroller could require from
certain limited sales and use tax permit holders or mixed beverage tax
permit holders; (6) create or increase criminal penalties for various
offenses relating to intentional failure to pay taxes, intentionally
concealing, destroying, or making false entries in required records, and
various other tax fraud related offenses; and (7) update or delete
obsolete sections of the Tax Code and clarify other enforcement issues
for various taxes and fees collected by the Comptroller.

The bill would take effect September 1, 2001.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   551   Texas Department of Agriculture, 405   Texas
                   Department of Public Safety, 582   Texas Natural
                   Resource Conservation Commission, 212   Office of
                   Court Administration, 302   Office of the Attorney
                   General, 304   Comptroller of Public Accounts
LBB Staff:         JK, SD, WP