H.B. No. 2424
AN ACT
relating to technical changes to taxes and fees administered by the
comptroller; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 161.122, Health and Safety Code, is
amended by adding Subsection (f) to read as follows:
(f) A person commits an offense if the person places or
authorizes the placement of a sign in violation of this section. An
offense under this subsection is a Class C misdemeanor.
SECTION 2. Article 1.16(b), Insurance Code, is amended to
read as follows:
(b) Assessments for the expenses of such domestic
examination which shall be sufficient to meet all the expenses and
disbursements necessary to comply with the provisions of the laws
of Texas relating to the examination of insurance companies and to
comply with the provisions of this Article and Articles 1.17 and
1.18 of this Code, shall be made by the State Board of Insurance
upon the corporations or associations to be examined taking into
consideration annual premium receipts, and/or admitted assets that
are not attributable to 90 percent of pension plan contracts as
defined in Section 818(a) of the Internal Revenue Code of 1986 (26
U.S.C. Section 818(a)), and/or insurance in force; provided such
assessments shall be made and collected as follows: (1) expenses
attributable directly to a specific examination including
employees' salaries and expenses and expenses provided by Article
1.28 of this Code shall be collected at the time of examination;
(2) assessments calculated annually for each corporation or
association which take into consideration annual premium receipts,
and/or admitted assets that are not attributable to 90 percent of
pension plan contracts as defined in Section 818(a) of the Internal
Revenue Code of 1986 (26 U.S.C. Section 818(a)), and/or insurance
in force shall be assessed annually for each such corporation or
association. In computing the assessments, the board may not
consider insurance premiums for insurance contracted for by a state
or federal governmental entity to provide welfare benefits to
designated welfare recipients or contracted for in accordance with
or in furtherance of Title 2, Human Resources Code, or the federal
Social Security Act (42 U.S.C. Section 301 et seq.). The amount of
all examination and evaluation fees [the assessments] paid in each
taxable year to [or for the use of] the State of Texas by an [any]
insurance carrier [corporation or association hereby affected]
shall be allowed as a credit on the amount of premium taxes due
under this article [to be paid by any such insurance corporation or
association for such taxable year except as provided by Article
1.28 of this Code]. The limitations provided by Sections
803.007(1) and (2)(B) of this code for domestic insurance companies
apply to foreign insurance companies.
SECTION 3. Section 1, Article 4.10, Insurance Code, is
amended to read as follows:
Sec. 1. PAYMENT OF TAX. Every insurance carrier, including
Lloyd's and reciprocal or interinsurance exchanges and any other
organization or concern receiving gross premiums from the business
of fire, marine, marine inland, accident, credit, livestock,
fidelity, guaranty, surety, casualty, workers' compensation,
employers' liability, or any other kind or character of insurance,
except title insurance and except as provided in Sections 2, 3, and
4 of this article, shall pay to the comptroller a tax upon such
gross premium receipts as provided in this article. Any such
insurance carrier doing other kinds of insurance business shall pay
the tax levied upon its gross premiums received from such other
kinds of business as provided in Articles 4.03 and 4.11 of this
code.
SECTION 4. Section 13, Article 4.10, Insurance Code, is
amended to read as follows:
Sec. 13. EXAMINATION AND EVALUATION FEE CREDITS. The
amount of all examination and evaluation fees paid in each taxable
year to [or for the use of] the State of Texas by an insurance
carrier shall be allowed as a credit on the amount of premium taxes
due under this article [except as provided by Article 1.28 of this
code]. The limitations provided by Sections 803.007(1) and (2)(B)
of this code for domestic insurance companies apply to foreign
insurance companies. Any credit allowed by the provisions of this
section is in addition to any other credits allowable by statute.
SECTION 5. Section 8, Article 4.11, Insurance Code, is
amended to read as follows:
Sec. 8. EXAMINATION AND EVALUATION [VALUATION] FEES ALLOWED
AS CREDITS. The amount of all examination and evaluation
[valuation] fees paid in [during] each taxable [tax] year to [or for
the use of] the State of Texas by an insurance carrier shall be
allowed as a credit on the amount of premium taxes due under this
article [except as provided by Article 1.28 of this code]. The
limitations provided by Sections 803.007(1) and (2)(B) of this code
for domestic insurance companies apply to foreign insurance
companies. Any credit allowed by the provisions of this section is
in addition to any other credits allowable by statute.
SECTION 6. Article 4.17(a), Insurance Code, is amended to
read as follows:
(a) The commissioner shall annually determine the rate of
assessment of a maintenance tax to be paid on an annual, semiannual,
or other periodic basis, as determined by the comptroller. The rate
of assessment may not exceed .04 percent of the correctly reported
gross premiums of life, health, and accident insurance coverages
and the gross considerations for annuity and endowment contracts
collected by all authorized insurers writing life, health, and
accident insurance, annuity, or endowment contracts in this state.
The comptroller shall collect the maintenance tax. For purposes of
this article, the gross premiums on which an assessment is based may
not include:
(1) premiums received from this state or the United
States for insurance contracted for by this state or the United
States for the purpose of providing welfare benefits to designated
welfare recipients or for insurance contracted for by this state or
the United States in accordance with or in furtherance of Title 2,
Human Resources Code, or the federal Social Security Act (42 U.S.C.
Section 301 et seq.); or
(2) premiums paid on group health, accident, and life
policies in which the group covered by the policy consists of a
single nonprofit trust established to provide coverage primarily
for employees of:
(A) a municipality, county, or hospital district
in this state; or
(B) a county or municipal hospital, without
regard to whether the employees are employees of the county or
municipality or of an entity operating the hospital on behalf of the
county or municipality.
SECTION 7. Section 7, Article 9.59, Insurance Code, is
amended to read as follows:
Sec. 7. EXAMINATION AND EVALUATION FEE CREDITS. The amount
of all examination and evaluation fees paid in each taxable year to
[or for the use of] the State of Texas by a title insurance company
shall be allowed as a credit on the amount of premium taxes due
under this article [except as provided by Article 1.28 of this
code]. The limitations provided by Sections 803.007(1) and (2)(B)
of this code for domestic insurance companies apply to foreign
insurance companies. Any credit allowed by this section is in
addition to any other credits allowed by law.
SECTION 8. Section 33(d), Texas Health Maintenance
Organization Act (Article 20A.33, Vernon's Texas Insurance Code),
is amended to read as follows:
(d) The commissioner shall annually determine the rate of
assessment of a per capita maintenance tax to be paid on an annual
or semiannual basis, on the correctly reported gross revenues for
the issuance of health maintenance certificates or contracts
collected by all authorized health maintenance organizations
issuing such coverages in this state. The rate of assessment may
not exceed $2 for each enrollee. The rate of assessment may differ
between basic health care plans, limited health care service plans,
and single health care service plans and shall equitably reflect
any differences in regulatory resources attributable to each type
of plan. The comptroller shall collect the maintenance tax. For
purposes of this section, the amount of maintenance tax assessed
may not be computed on:
(1) enrollees who as individual certificate holders or
their dependents are covered by a master group policy paid for by
revenues received from this state or the United States for
insurance contracted for by this state or the United States for the
purpose of providing welfare benefits to designated welfare
recipients or for insurance contracted for by this state or the
United States in accordance with or in furtherance of Title 2, Human
Resources Code, or the federal Social Security Act (42 U.S.C.
Section 301 et seq.); or
(2) revenues paid on group health, accident, and life
certificates or contracts in which the group covered by the
certificate or contract consists of a single nonprofit trust
established to provide coverage primarily for employees of:
(A) a municipality, county, or hospital district
in this state; or
(B) a county or municipal hospital, without
regard to whether the employees are employees of the county or
municipality or of an entity operating the hospital on behalf of the
county or municipality.
SECTION 9. Section 101.053(b), Insurance Code, as effective
June 1, 2003, is amended to read as follows:
(b) Sections 101.051 and 101.052 do not apply to:
(1) the lawful transaction of surplus lines insurance
under Chapter 981;
(2) the lawful transaction of reinsurance by insurers;
(3) a transaction in this state that:
(A) involves a policy that:
(i) is lawfully solicited, written, and
delivered outside this state; and
(ii) covers, at the time the policy is
issued, only subjects of insurance that are not resident, located,
or expressly to be performed in this state; and
(B) takes place after the policy is issued;
(4) a transaction:
(A) that involves an insurance contract
independently procured by the insured from an insurance company not
authorized to do insurance business in this state through
negotiations occurring entirely outside this state;
(B) that is reported; and
(C) on which premium tax is paid in accordance
with this chapter;
(5) a transaction in this state that:
(A) involves group life, health, or accident
insurance, other than credit insurance, and group annuities in
which the master policy for the group was lawfully issued and
delivered in a state in which the insurer or person was authorized
to do insurance business; and
(B) is authorized by a statute of this state;
(6) an activity in this state by or on the sole behalf
of a nonadmitted captive insurance company that insures solely:
(A) directors' and officers' liability insurance
for the directors and officers of the company's parent and
affiliated companies;
(B) the risks of the company's parent and
affiliated companies; or
(C) both the individuals and entities described
by Paragraphs (A) and (B);
(7) the issuance of a qualified charitable gift
annuity under Chapter 102; or
(8) a lawful transaction by a servicing company of the
Texas workers' compensation employers' rejected risk fund under
Section 4.08, Article 5.76-2, as that article existed before its
repeal.
SECTION 9A. Subchapter L, Chapter 843, Insurance Code, is
amended by adding Section 843.409 to read as follows:
Sec. 843.409. EXAMINATION EXPENSES. (a) A credit against
the amount of premium taxes to be paid by a health maintenance
organization in a taxable year may not be allowed on:
(1) an examination fee or expense paid to another
state; or
(2) an examination expense:
(A) directly attributable to an examination of
the books, records, accounts, or principal offices of a health
maintenance organization located outside this state; or
(B) paid in a different taxable year.
(b) The limitations provided by Subsections (a)(1) and
(a)(2)(B) apply to foreign health maintenance organizations.
SECTION 10. Section 912.002(b), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(b) A county mutual insurance company is subject to:
(1) Sections 38.001 and 822.204; and
(2) Articles 1.15, 1.15A, 1.16, 1.35B, 2.10, 4.10,
5.12, 5.37, 5.38, 5.39, 5.40, 5.49, 21.21, and 21.49.
SECTION 11. Section 376.470, Local Government Code, as
added by Chapter 1433, Acts of the 77th Legislature, Regular
Session, 2001, is amended by adding Subsection (d) to read as
follows:
(d) Chapter 321, Tax Code, applies to the imposition,
computation, administration, enforcement, and collection of the
sales and use tax imposed by this section except to the extent it is
inconsistent with this chapter.
SECTION 12. Section 2153.153(a), Occupations Code, is
amended to read as follows:
(a) A license applicant must file with the comptroller a
license application that:
(1) contains a complete statement about the ownership
of the business that is the subject of the application, including:
(A) the nature of the business entity; and
(B) except as provided by Subsection (b), the
name and residence address of each person who has a financial
interest in the business, including the nature, type, and extent of
the interest;
(2) designates:
(A) an individual, as described by Subsection
(c), responsible for maintaining a record of and reporting to the
comptroller information as required by Section 2153.202; and
(B) an office located in this state where the
applicant proposes to maintain the records required by this
chapter, a rule adopted under this chapter, or other law;
(3) is accompanied by:
(A) a written statement executed by the
individual designated under Subdivision (2) that the individual
accepts the responsibility described by that subdivision; and
(B) a cashier's check, [or] money order, personal
check, or other method of payment authorized by the comptroller, in
an amount equal to the annual license fee under Section 2153.154;
(4) includes any other relevant information required
by the comptroller; and
(5) states that the information contained in the
application is true and correct.
SECTION 13. Section 111.0046, Tax Code, is amended to read
as follows:
Sec. 111.0046. [REFUSAL TO] PERMIT OR LICENSE. (a) The
comptroller shall refuse to issue or renew any permit or license to
a person who:
(1) is not permitted or licensed as required by law for
a different tax or activity administered by the comptroller, except
if the issuance or renewal of such license or permit is pending
before the comptroller; or
(2) is currently delinquent in the payment of any tax
collected by the comptroller.
(b) The comptroller by rule may establish a minimum age for
a person to be eligible to apply for a permit or license issued by
the comptroller.
SECTION 14. Sections 111.012(a) and (g), Tax Code, are
amended to read as follows:
(a) If the comptroller finds that a tax imposed by this
title is insecure, the comptroller may require a taxpayer [who is
delinquent in the payment of the tax] to:
(1) provide security for the payment of taxes; or
(2) establish a tax escrow account at a bank or other
financial institution.
(g) If a taxpayer does not furnish security to the
comptroller or establish a tax escrow account as required by the
comptroller before the expiration of 10 days following the day on
which notice is received, the comptroller may:
(1) bring suit in a district court in Travis County for
an order enjoining the taxpayer from engaging in business until the
security is furnished or the tax escrow account is established; or
(2) pursue any other remedies or collection actions
available to the comptroller under this chapter or Chapter 113 to
ensure the security is furnished or the tax escrow account is
established. [Venue for a suit under this section is in Travis
County.]
SECTION 15. Section 113.006(b), Tax Code, is amended to
read as follows:
(b) One tax lien notice is sufficient to cover all taxes of
any [the same] nature administered by the comptroller, including
penalty and interest computed by reference to the amount of tax,
that may have accrued before or after the filing of the notice.
SECTION 16. Section 151.0035, Tax Code, is amended to read
as follows:
Sec. 151.0035. "DATA PROCESSING SERVICE." "Data processing
service" includes word processing, data entry, data retrieval, data
search, information compilation, payroll and business accounting
data production, the performance of a totalisator service with the
use of computational equipment [equiptment] required by the Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), and other
computerized data and information storage or manipulation. "Data
processing service" also includes the use of a computer or computer
time for data processing whether the processing is performed by the
provider of the computer or computer time or by the purchaser or
other beneficiary of the service. "Data processing service" does
not include the transcription of medical dictation by a medical
transcriptionist. "Data storage," as used in this section, does not
include a classified advertisement, banner advertisement, vertical
advertisement, or link when the item is displayed on an Internet
website owned by another person.
SECTION 17. Section 151.005, Tax Code, is amended to read as
follows:
Sec. 151.005. "SALE" OR "PURCHASE." "Sale" or "purchase"
means any of the following when done or performed for
consideration:
(1) a transfer of title or possession of tangible
personal property;
(2) the exchange, barter, lease, or rental of tangible
personal property;
(3) the performance of a taxable service, the charge
for an extended warranty or service contract for the performance of
a taxable service, or, in the case of an amusement service, a
transfer of title to or possession of a ticket or other admission
document, the collection of an admission fee, whether by individual
performance, subscription series, or membership privilege, the
collection of dues or a fee, charge, or assessment, including an
initiation fee, by a club or organization for membership or a
special privilege, status, or membership classification in the club
or organization, or the use of a coin-operated machine;
(4) the production, fabrication, processing,
printing, or imprinting of tangible personal property for consumers
who directly or indirectly furnish the materials used in the
production, fabrication, processing, printing, or imprinting;
(5) the furnishing and distribution of tangible
personal property by a social club or fraternal organization to
anyone;
(6) the furnishing, preparation, or service of food,
meals, or drinks;
(7) a transfer of the possession of tangible personal
property if the title to the property is retained by the seller as
security for the payment of the price; or
(8) a transfer of the title or possession of tangible
personal property that has been produced, fabricated, or printed to
the special order of the customer.
SECTION 18. Section 151.056, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) A contractor is not eligible for the exemption provided
by Section 151.318 on items used in the performance of a contract to
improve real property.
SECTION 19. Section 151.313(a), Tax Code, is amended to
read as follows:
(a) The following items are exempted from the taxes imposed
by this chapter:
(1) a drug or medicine, other than insulin, if
prescribed or dispensed for a human or animal by a licensed
practitioner of the healing arts;
(2) insulin;
(3) subject to Subsection (c), a drug or medicine,
without regard to whether it is prescribed or dispensed by a
licensed practitioner of the healing arts;
(4) a hypodermic syringe or needle;
(5) a brace; hearing aid or audio loop; orthopedic,
dental, or prosthetic device; ileostomy, colostomy, or ileal
bladder appliance; or supplies or replacement parts for the listed
items;
(6) a therapeutic appliance, device, and any related
supplies specifically designed for those products, if dispensed or
prescribed by a licensed practitioner of the healing arts, when
those items are purchased and used by an individual for whom the
items listed in this subdivision were dispensed or prescribed;
(7) corrective lens and necessary and related
supplies, if dispensed or prescribed by an ophthalmologist or
optometrist;
(8) specialized printing or signalling equipment used
by the deaf for the purpose of enabling the deaf to communicate
through the use of an ordinary telephone and all materials, paper,
and printing ribbons used in that equipment;
(9) a braille wristwatch, braille writer, braille
paper and braille electronic equipment that connects to computer
equipment, and the necessary adaptive devices and adaptive computer
software;
(10) each of the following items if purchased for use
by the blind to enable them to function more independently: a slate
and stylus, print enlarger, light probe, magnifier, white cane,
talking clock, large print terminal, talking terminal, or harness
for guide dog;
(11) hospital beds;
(12) blood glucose monitoring test strips;
(13) an adjustable eating utensil used to facilitate
independent eating if purchased for use by a person, including a
person who is elderly or physically disabled, has had a stroke, or
is a burn victim, who does not have full use or control of the
person's hands or arms; [and]
(14) subject to Subsection (d), a dietary supplement;
and
(15) intravenous systems, supplies, and replacement
parts used in the treatment of humans.
SECTION 20. Section 151.314(e), Tax Code, is amended to
read as follows:
(e) Food products, candy, carbonated beverages, and diluted
juices are exempted from the taxes imposed by this chapter if sold
at an exempt sale qualifying under this subsection or if stored or
used by the purchaser of the item at the exempt sale. A sale is
exempted under this subsection if:
(1) the sale is made by a [person under 19 years old
who is a] member of or volunteer for a nonprofit organization
devoted to the exclusive purpose of education or religious or
physical training or by a group associated with a public or private
elementary or secondary school;
(2) the sale is made as a part of a fund-raising drive
sponsored by the organization or group; and
(3) all net proceeds from the sale go to the
organization or group for its exclusive use.
SECTION 21. Section 151.319(f), Tax Code, is amended to
read as follows:
(f) In this section, "newspaper" means a publication that is
printed on newsprint, the average sales price of which for each copy
over a 30-day period does not exceed $1.50 [75 cents], and that is
printed and distributed at a daily, weekly, or other short interval
for the dissemination of news of a general character and of a
general interest. "Newspaper" does not include a magazine,
handbill, circular, flyer, sales catalog, or similar printed item
unless the printed item is printed for distribution as a part of a
newspaper and is actually distributed as a part of a newspaper. For
the purposes of this section, an advertisement is news of a general
character and of a general interest. Notwithstanding any other
provision of this subsection, "newspaper" includes:
(1) a publication containing articles and essays of
general interest by various writers and advertisements that is
produced for the operator of a licensed and certified carrier of
persons and distributed by the operator to its customers during
their travel on the carrier; and
(2) a publication for the dissemination of news of a
general character and of a general interest that is printed on
newsprint and distributed to the general public free of charge at a
daily, weekly, or other short interval.
SECTION 22. Section 151.323, Tax Code, is amended to read as
follows:
Sec. 151.323. CERTAIN TELECOMMUNICATIONS SERVICES. (a)
There are exempted from the taxes imposed by this chapter the
receipts from the sale, use, or other consumption in this state of:
(1) long-distance telecommunications services that
are not both originated from and billed to a telephone number or
billing or service address within Texas;
(2) access to a local exchange telephone company's
network by a regulated provider of telecommunications services; and
(3) broadcasts, other than cable television service,
by commercial radio or television stations licensed or regulated by
the Federal Communications Commission.
(b) The exemption provided by this section does not apply to
mobile telecommunications services.
SECTION 23. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3501 to read as follows:
Sec. 151.3501. LABOR TO RESTORE, REPAIR, OR REMODEL
HISTORIC SITES. (a) Labor to restore, repair, or remodel an
improvement to real property is exempted from the taxes imposed by
this chapter if:
(1) the amount of the charge for labor is separately
itemized; and
(2) the restoration, repair, or remodeling is
performed on an improvement to real property listed in the National
Register of Historic Places.
(b) The exemption provided by this section does not apply to
tangible personal property transferred by the service provider to
the purchaser as part of the service.
SECTION 24. Section 151.355, Tax Code, as amended by
Chapters 966 and 1234, Acts of the 77th Legislature, Regular
Session, 2001, is reenacted and amended to read as follows:
Sec. 151.355. WATER-RELATED EXEMPTIONS. The following are
exempted from taxes imposed by this chapter:
(1) rainwater harvesting equipment or supplies, water
recycling and reuse equipment or supplies, or other equipment,
services, or supplies used solely to reduce or eliminate water use;
(2) equipment, services, or supplies used solely for
desalination of surface water or groundwater;
(3) equipment, services, or supplies used solely for
brush control designed to enhance the availability of water;
(4) equipment, services, or supplies used solely for
precipitation enhancement;
(5) equipment, services, or supplies used solely to
construct or operate a water or wastewater system certified by the
Texas Commission on Environmental Quality [Natural Resource
Conservation Commission] as a regional system; and
(6) equipment, services, or supplies used solely to
construct or operate a water supply or wastewater system by a
private entity as a public-private partnership as certified by the
political subdivision that is a party to the project.
SECTION 25. Section 152.086(a), Tax Code, is amended to
read as follows:
(a) The taxes imposed by this chapter do not apply to the
sale or use of a motor vehicle that:
(1) has been or will be modified before the second
anniversary of the date of purchase for operation by, or for the
transportation of, an orthopedically handicapped person; and
(2) is driven by or used for the transportation of an
orthopedically handicapped person.
SECTION 26. Subchapter F, Chapter 152, Tax Code, is amended
by adding Section 152.106 to read as follows:
Sec. 152.106. PROHIBITED ADVERTISING; CRIMINAL PENALTY.
(a) A person who is required by Chapter 503, Transportation Code,
to hold a dealer's general distinguishing number commits an offense
if the person directly or indirectly advertises, holds out, or
states to a customer or to the public that the person:
(1) will assume, absorb, or refund a part of the tax
imposed by this chapter; or
(2) will not add the tax imposed by this chapter to the
sales price of the motor vehicle sold, leased, or rented.
(b) An offense under this section is a Class C misdemeanor.
SECTION 27. Section 155.002, Tax Code, is amended to read as
follows:
Sec. 155.002. STORAGE. (a) The commercial business
location where tobacco products are stored or kept cannot be a
residence or a unit in a public storage facility.
(b) This section does not apply to a manufacturer's
representative.
SECTION 28. Section 156.051(a), Tax Code, is amended to
read as follows:
(a) A tax is imposed on a person who, under a lease,
concession, permit, right of access, license, contract, or
agreement, pays for the use or possession or for the right to the
use or possession of a room or space in a hotel costing $15 [$2] or
more each day.
SECTION 29. Section 156.102(b), Tax Code, is amended to
read as follows:
(b) For purposes of this section:
(1) a corporation or association that is organized and
operated exclusively for the cleaning of beaches and that has no
part of its net earnings inure to the benefit of a private
shareholder or individual is organized and operated exclusively for
a charitable purpose; and
(2) a public or private institution of higher
education is organized and operated exclusively for an educational
purpose only if the institution is defined as a Texas [an]
institution of higher education or as a Texas private or
independent institution of higher education under any subdivision
of Section 61.003, Education Code.
SECTION 30. Subchapter C, Chapter 156, Tax Code, is amended
by adding Section 156.104 to read as follows:
Sec. 156.104. EXEMPTION CERTIFICATE. (a) The right to use
or possess a room or space in a hotel is exempt from taxation under
this chapter if the person required to collect the tax receives, in
good faith from a guest, a properly completed exemption certificate
stating that the guest is qualified for an exemption under Section
156.102 or 156.103. An exemption certificate must be supported by
the documentation required under rules adopted by the comptroller.
(b) The comptroller shall produce and maintain a list of
entities that have been provided a letter of exemption from the
state hotel occupancy tax under Section 156.102. The comptroller
shall make the list available on the comptroller's Internet
website.
SECTION 31. Section 171.001(a), Tax Code, is amended to
read as follows:
(a) A franchise tax is imposed on:
(1) each corporation that does business in this state
or that is chartered [or authorized to do business] in this state;
[,] and
(2) each limited liability company that does business
in this state or that is organized under the laws of this state [or
is authorized to do business in this state].
SECTION 32. Section 171.001(b)(2), Tax Code, is amended to
read as follows:
(2) "Beginning date" means:
(A) for a corporation chartered in this state,
the date on which the corporation's charter takes effect; and
(B) for a foreign corporation, [the earlier of]
the date on which[:
[(i) the corporation's certificate of
authority takes effect; or
[(ii)] the corporation begins doing
business in this state.
SECTION 33. Section 171.052, Tax Code, is amended to read as
follows:
Sec. 171.052. CERTAIN CORPORATIONS. An insurance
organization, title insurance company, or title insurance agent
authorized to engage in insurance business in this state now
required to pay an annual tax under Chapter 4 or 9, Insurance Code,
measured by its gross premium receipts is exempted from the
franchise tax. A [An insurance organization performing management
or accounting activities in this state on behalf of a] nonadmitted
[captive] insurance organization [company under Chapter 101,
Insurance Code,] that is required to pay a gross premium receipts
tax during a tax year is exempted from the franchise tax for that
same tax year. Farm mutuals, local mutual aid associations, and
burial associations are not subject to the franchise tax.
SECTION 34. Section 171.084(c), Tax Code, is amended to
read as follows:
(c) In this section, "wholesale center" means a permanent
wholesale facility that has permanent tenants and that promotes at
least four national or regional trade shows in a calendar year. A
tenant leasing space at a wholesale center for a period longer than
the period prescribed by Subsection (b) may qualify for the
exemption provided by this section only if the tenant solicits
orders on an occasional basis at the trade show as prescribed by
Subsection (b).
SECTION 35. Section 171.1032(b), Tax Code, is amended to
read as follows:
(b) A corporation shall deduct from its gross receipts
computed under Subsection (a) any amount to the extent included
under Subsection (a) because of the application of Section 78 or
Sections 951-964, Internal Revenue Code, any amount excludable
under Section 171.110(k), and dividends received from a subsidiary,
associate, or affiliated corporation that does not transact a
substantial portion of its business or regularly maintain a
substantial portion of its assets in the United States.
SECTION 36. Section 171.1051(c), Tax Code, is amended to
read as follows:
(c) A corporation shall deduct from its gross receipts
computed under Subsection (a) any amount to the extent included in
Subsection (a) because of the application of Section 78 or Sections
951-964, Internal Revenue Code, any amount excludable under Section
171.110(k), and dividends received from a subsidiary, associate, or
affiliated corporation that does not transact a substantial portion
of its business or regularly maintain a substantial portion of its
assets in the United States.
SECTION 37. Section 171.106, Tax Code, is amended by adding
Subsection (i) to read as follows:
(i) Receipts from services that a defense readjustment
project performs in a defense economic readjustment zone are not
receipts from business done in this state.
SECTION 38. Section 171.109, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) A legally enforceable obligation that requires the
return of a like-kind property that was borrowed will be considered
debt if it is a liability according to generally accepted
accounting principles and if the return must be made within an
ascertainable period of time or on demand. The amount that will be
considered debt is the fair market value measured on the last day on
which the report is based as required by Section 171.153. For
purposes of this subsection, "like-kind property" means the same
quantity, quality, and nature or character as the property
borrowed.
SECTION 39. Section 171.110, Tax Code, is amended by
amending Subsection (a) and adding Subsections (k) and (l) to read
as follows:
(a) The net taxable earned surplus of a corporation is
computed by:
(1) determining the corporation's reportable federal
taxable income, subtracting from that amount any amount excludable
under Subsection (k), any amount included in reportable federal
taxable income under Section 78 or Sections 951-964, Internal
Revenue Code, and dividends received from a subsidiary, associate,
or affiliated corporation that does not transact a substantial
portion of its business or regularly maintain a substantial portion
of its assets in the United States, and adding to that amount any
compensation of officers or directors, or if a bank, any
compensation of directors and executive officers, to the extent
excluded in determining federal taxable income to determine the
corporation's taxable earned surplus;
(2) apportioning the corporation's taxable earned
surplus to this state as provided by Section 171.106(b) or (c), as
applicable, to determine the corporation's apportioned taxable
earned surplus;
(3) adding the corporation's taxable earned surplus
allocated to this state as provided by Section 171.1061; and
(4) subtracting from that amount any allowable
deductions and any business loss that is carried forward to the tax
reporting period and deductible under Subsection (e).
(k) Dividends and interest received from federal
obligations are not included in earned surplus or gross receipts
for earned surplus purposes.
(l) In this section:
(1) "Federal obligations" means:
(A) stocks and other direct obligations of, and
obligations unconditionally guaranteed by, the United States
government and United States government agencies; and
(B) direct obligations of a United States
government-sponsored agency.
(2) "Obligation" means any bond, debenture, security,
mortgage-backed security, pass-through certificate, or other
evidence of indebtedness of the issuing entity. The term does not
include a deposit, a repurchase agreement, a loan, a lease, a
participation in a loan or pool of loans, a loan collateralized by
an obligation of a United States government agency, or a loan
guaranteed by a United States government agency.
(3) "United States government" means any department or
ministry of the federal government, including a federal reserve
bank. The term does not include a state or local government, a
commercial enterprise owned wholly or partly by the United States
government, or a local governmental entity or commercial enterprise
whose obligations are guaranteed by the United States government.
(4) "United States government agency" means an
instrumentality of the United States government whose obligations
are fully and explicitly guaranteed as to the timely payment of
principal and interest by the full faith and credit of the United
States government. The term includes the Government National
Mortgage Association, the Department of Veterans Affairs, the
Federal Housing Administration, the Farmers Home Administration,
the Export-Import Bank, the Overseas Private Investment
Corporation, the Commodity Credit Corporation, the Small Business
Administration, and any successor agency.
(5) "United States government-sponsored agency" means
an agency originally established or chartered by the United States
government to serve public purposes specified by the United States
Congress but whose obligations are not explicitly guaranteed by the
full faith and credit of the United States government. The term
includes the Federal Home Loan Mortgage Corporation, the Federal
National Mortgage Association, the Farm Credit System, the Federal
Home Loan Bank System, the Student Loan Marketing Association, and
any successor agency.
SECTION 40. Sections 171.110(b) and (c), Tax Code, are
amended to read as follows:
(b) Except as provided by Subsection (c), a [A] corporation
is not required to add the compensation of officers or directors as
required by Subsection (a)(1) if the corporation is:
(1) a corporation that has not more than 35
shareholders; or
(2) an S corporation, as that term is defined by
Section 1361, Internal Revenue Code.
(c) A subsidiary corporation may not claim the exclusion
under Subsection (b) if it has a parent corporation that does not
qualify for the exclusion. For purposes of this subsection, a
corporation qualifies as a parent if it ultimately controls the
subsidiary, even if the control arises through a series or group of
other subsidiaries or entities. Control is presumed if a parent
corporation directly or indirectly owns, controls, or holds a
majority of the outstanding voting stock of a corporation or
ownership interests in another entity [Subsection (b) does not
apply to a subsidiary corporation unless it applies to the
subsidiary's parent corporation].
SECTION 41. Section 171.203, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) A public information report that is filed
electronically complies with the signature and certification
requirements prescribed by Subsection (d).
SECTION 42. Subchapter O, Chapter 171, Tax Code, is amended
by adding Section 171.731 to read as follows:
Sec. 171.731. ASSIGNMENT PROHIBITED. A corporation may not
convey, assign, or transfer the credit allowed under this
subchapter to another entity unless all of the assets of the
corporation are conveyed, assigned, or transferred in the same
transaction.
SECTION 43. Section 171.751(1), Tax Code, is amended to
read as follows:
(1) "Agricultural processing" means an establishment
primarily engaged in activities described in categories 0724,
2011-2099, 2211, 2231, 2824, 2833, 2834, 2835, 2836, 2841,
3111-3199, 3262, or 3952, in product classes 28692 or 28698 of
category 2869, or in product classes 28992 or 28994 of category 2899
of the 1987 Standard Industrial Classification Manual published by
the federal Office of Management and Budget.
SECTION 44. Subchapter P, Chapter 171, Tax Code, is amended
by adding Section 171.7515 to read as follows:
Sec. 171.7515. "QUALIFIED BUSINESS." (a) In addition to the
meaning assigned by Section 171.751(8), "qualified business" also
means a corporation that has been designated as an enterprise
project or as a defense readjustment project and is certified by the
Texas Department of Economic Development as a qualified business
under Section 2303.402 or 2310.302, Government Code.
(b) This section expires January 1, 2005.
SECTION 45. Section 171.753, Tax Code, is amended to read as
follows:
Sec. 171.753. CALCULATION OF CREDIT. A corporation may
establish a credit equal to five percent of the total wages and
salaries paid by the corporation for qualifying jobs during the
period upon which the tax is based, on each of five consecutive
reports beginning with the report based on the period during which
the qualifying jobs were created.
SECTION 46. Subchapter P, Chapter 171, Tax Code, is amended
by adding Section 171.7541 to read as follows:
Sec. 171.7541. LENGTH OF CREDIT. Notwithstanding Section
171.753, a corporation that has been designated as an enterprise
project or as a defense readjustment project on or after September
1, 2001, may, beginning on the date the project is designated,
establish a credit equal to 25 percent of the total wages and
salaries paid by the corporation for qualifying jobs. Subject to
Section 171.755, the corporation may claim the entire credit earned
on a report originally due on or after September 1, 2003, and before
January 1, 2005. This section expires January 1, 2005.
SECTION 47. Section 171.802, Tax Code, is amended by adding
Subsections (d) and (e) to read as follows:
(d) A corporation that has been designated as an enterprise
project or as a defense readjustment project and is certified by the
Texas Department of Economic Development as a qualified business
under Section 2303.402 or 2310.302, Government Code, may qualify
for the credit provided by this subchapter, regardless of whether
the corporation meets the qualifications prescribed by Subsection
(b). This subsection expires January 1, 2005.
(e) A corporation may claim a credit or take a carryfoward
credit for a qualified capital investment made on or after January
1, 2003, without regard to whether the county in which it makes the
qualified capital investment has lost its designation as a
strategic investment area if:
(1) the corporation committed to the investment in
that county before January 2003;
(2) at the time the corporation made the commitment,
the county was designated as a strategic investment area;
(3) the total investment is at least $100 million;
(4) the county has a population of less than 15,700;
and
(5) the corporation made a qualified capital
investment in the county in each of the two years preceding the year
in which the corporation made the qualified capital investment
under this subsection.
SECTION 48. Section 171.803, Tax Code, is amended to read as
follows:
Sec. 171.803. CALCULATION OF CREDIT. (a) Except as
provided by Subsection (b), a [A] corporation may establish a
credit equal to 7.5 percent of the qualified capital investment
during the period upon which the tax is based.
(b) A corporation that has been designated as an enterprise
project or as a defense readjustment project on or after September
1, 2001, may, beginning on the date the project is designated,
establish a credit equal to 7.5 percent of the qualified capital
investment. This subsection expires January 1, 2005.
SECTION 49. Section 171.804(b), Tax Code, as effective
September 1, 2003, is amended to read as follows:
(b) Subject to Section 171.805, a corporation that has been
designated as an enterprise project or as a defense readjustment
project may claim the entire credit earned on a report originally
due on or after September 1, 2003, and before January 1, 2006
[during an accounting period against the taxes imposed for the
corresponding reporting period].
SECTION 50. Section 171.853(c), Tax Code, is amended to
read as follows:
(c) The credit claimed for each privilege period may not
exceed 50 percent of the amount of [net] franchise tax due, before
[after] any other applicable tax credits, for the privilege period.
SECTION 51. Chapter 171, Tax Code, is amended by adding
Subchapter U to read as follows:
SUBCHAPTER U. TAX CREDIT FOR TITLE INSURANCE HOLDING
COMPANIES
Sec. 171.891. APPLICABILITY OF DEFINITIONS. In this
subchapter:
(1) "Control" has the meaning described by Sections
823.005 and 823.151, Insurance Code.
(2) "Controlled insurer," "domestic insurer," and
"holding company" have the meanings assigned by Section 823.002,
Insurance Code.
(3) "Title insurance," "title insurance agent," and
"title insurance company" have the meanings assigned by Article
9.02, Insurance Code.
Sec. 171.892. ELIGIBILITY. A corporation is entitled to a
credit as provided by this subchapter against the tax imposed under
this chapter if the corporation:
(1) is a title insurance holding company subject to
Chapter 823, Insurance Code; and
(2) controls one or more domestic title insurance
companies that are subject to the tax on premiums imposed under
Article 9.59, Insurance Code.
Sec. 171.893. AMOUNT; LIMITATIONS. (a) The amount of the
credit for each controlled domestic title insurance company is
computed by multiplying the amount of tax on premiums paid by that
company in the most recent calendar year ending before the
franchise tax report is due by the percentage of ownership of the
title insurance holding company in the controlled domestic title
insurance company. The percentage of ownership of a controlled
domestic title insurance company is determined as of the accounting
year-end on which the report is based.
(b) A claim for a credit is subject to the following
limitations:
(1) if the total amount of the credit for all
controlled title insurance companies exceeds the franchise tax due,
the credit is an amount equal to the franchise tax due;
(2) no portion of a credit may be applied to another
year's franchise tax report; and
(3) a corporation may not take credit for the same tax
on premiums more than once.
Sec. 171.894. EFFECT ON OTHER TAXES. This subchapter does
not exempt a title insurance holding company, a title insurance
company, or a title insurance agent from paying a tax imposed by
this code, except that a title insurance company or a title
insurance agent whose principal activity is the business of title
insurance is exempt from a tax imposed by this chapter.
SECTION 52. Section 201.057(c), Tax Code, is amended to
read as follows:
(c) High-cost gas as defined in Subsection (a)(2)(A)
produced from a well that is spudded or completed after August 31,
1996, [and before September 1, 2010,] is entitled to a reduction of
the tax imposed by this chapter for the first 120 consecutive
calendar months beginning on the first day of production, or until
the cumulative value of the tax reduction equals 50 percent of the
drilling and completion costs incurred for the well, whichever
occurs first. The amount of tax reduction shall be computed by
subtracting from the tax rate imposed by Section 201.052 the
product of that tax rate times the ratio of drilling and completion
costs incurred for the well to twice the median drilling and
completion costs for high-cost wells as defined in Subsection
(a)(2)(A) spudded or completed during the previous state fiscal
year, except that the effective rate of tax may not be reduced below
zero.
SECTION 53. Section 202.054(c), Tax Code, is amended to
read as follows:
(c) This section applies to an enhanced recovery project
that begins active operation on or after September 1, 1989, and to
an expansion that the commission approves on or after September 1,
1991. An application for approval under this section must be filed
on or after September 1, 1989, [and before January 1, 2008,] for a
new enhanced recovery project. An application for approval under
this section must be filed on or after September 1, 1991, [and
before January 1, 2008,] for an expansion of an existing enhanced
recovery project. A project may not qualify as an expansion if the
project has qualified as a new enhanced recovery project under this
section. An application may be filed on or after September 1, 1989,
even if a separate application for approval of the project or
expansion has already been filed under Subchapter B, Chapter 101,
Natural Resources Code, or for approval as a tertiary recovery
project for purposes of Section 4993, Internal Revenue Code of
1986, if the operation of a new project or the expansion of an
existing project, other than a co-production project, does not
begin before the application for approval under this section is
approved by the commission; provided, however, nothing herein
shall require commission approval of a co-production project prior
to commencing active operations on such project in order for such
project to be eligible for the recovered oil tax rate.
SECTION 54. Subchapter B, Chapter 321, Tax Code, is amended
by adding Section 321.107 to read as follows:
Sec. 321.107. ADMINISTRATION OF LOCAL SALES AND USE TAXES
IMPOSED BY OTHER GOVERNMENTAL ENTITIES. The imposition,
computation, administration, enforcement, and collection of any
local sales and use tax imposed by any other local governmental
entity is governed by this chapter, except as otherwise provided by
law. In this section, "other local governmental entity" includes
any governmental entity created by the legislature that has a
limited purpose or function, that has a defined or restricted
geographic territory, and that is authorized by law to impose a
local sales and use tax. The term does not include a county, county
health services district, county landfill and criminal detention
center district, metropolitan transportation authority, economic
development district, crime control district, hospital district,
emergency services district, or library district.
SECTION 55. Section 321.203(j), Tax Code, is amended to
read as follows:
(j) The sale of [cable television] services delivered
through a cable system is consummated at the point of delivery to
the consumer.
SECTION 56. Section 322.001(a), Tax Code, is amended to
read as follows:
(a) This chapter applies to the imposition, assessment,
collection, administration, and enforcement of a sales and use tax
imposed under Chapter 451, 452, [or] 453, or 460, Transportation
Code.
SECTION 57. Section 322.002(1), Tax Code, is amended to
read as follows:
(1) "Taxing entity" means a rapid transit authority, a
regional transit authority, including a subregional transportation
authority, or a municipal mass transit department created under
Chapter 451, 452, or 453, Transportation Code, or a coordinated
county transportation authority created under Chapter 460,
Transportation Code, that has adopted a sales and use tax under the
law authorizing the creation of the entity.
SECTION 58. Section 323.203(j), Tax Code, is amended to
read as follows:
(j) The sale of [cable television] services delivered
through a cable system is consummated at the point of delivery to
the consumer.
SECTION 59. The following are repealed:
(1) Section 171.754, Tax Code;
(2) Section 2.08, Chapter 1134, Acts of the 77th
Legislature, Regular Session, 2001; and
(3) Section 16, Article 9.59, Insurance Code.
SECTION 60. Each change in law made to the following
provisions by this Act is a clarification of existing law and does
not imply that existing law may be construed as inconsistent with
the law as amended by this Act:
(1) Section 1, Article 4.10, Insurance Code;
(2) Article 4.17(a), Insurance Code;
(3) Section 33(d), Texas Health Maintenance
Organization Act (Article 20A.33, Vernon's Texas Insurance Code);
(4) Section 101.053(b), Insurance Code;
(5) Section 912.002(b), Insurance Code;
(6) Section 376.470(d), Local Government Code, as
added by Chapter 1433, Acts of the 77th Legislature, Regular
Session, 2001;
(7) Section 2153.153(a), Occupations Code;
(8) Section 151.0035, Tax Code;
(9) Section 151.005, Tax Code;
(10) Section 151.056(f), Tax Code;
(11) Section 151.313(a), Tax Code;
(12) Section 151.3501, Tax Code;
(13) Section 151.355, Tax Code;
(14) Section 171.052, Tax Code;
(15) Section 171.084(c), Tax Code;
(16) Section 171.1032(b), Tax Code;
(17) Section 171.1051(c), Tax Code;
(18) Section 171.106(i), Tax Code;
(19) Sections 171.110(a), (b), (c), (k), and (l), Tax
Code;
(20) Section 171.731, Tax Code;
(21) Section 171.751(1), Tax Code;
(22) Subchapter U, Chapter 171, Tax Code;
(23) Section 321.107, Tax Code;
(24) Section 322.001(a), Tax Code;
(25) Section 322.002(1), Tax Code; and
(26) Section 151.319(c), Tax Code.
SECTION 61. To the extent of any conflict, SECTIONS 1-60 of
this Act prevail over another Act of the 78th Legislature, Regular
Session, 2003, relating to nonsubstantive codifications of law or
nonsubstantive additions to and corrections in enacted codes.
SECTION 62. (a) Subtitle C, Title 4, Local Government Code,
is amended by adding Chapter 133 to read as follows:
CHAPTER 133. CRIMINAL AND CIVIL FEES PAYABLE TO THE COMPTROLLER
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 133.001. PURPOSE. The purpose of this chapter is to
consolidate and standardize:
(1) collection of fees in criminal and civil matters
by:
(A) an officer of a court for deposit in a county
or municipal treasury; or
(B) an officer of a county or municipality for
deposit in the county or municipal treasury, as appropriate;
(2) remittance of those fees to the comptroller as
required by this chapter and other law; and
(3) distribution of those fees by the comptroller to
the proper accounts and funds in the state treasury.
Sec. 133.002. DEFINITIONS. In this chapter:
(1) "Fee" means:
(A) a criminal fee listed under Section 133.003;
and
(B) a civil fee listed under Section 133.004.
(2) "Indigent" means an individual who earns not more
than 125 percent of the income standard established by applicable
federal poverty guidelines.
(3) "Treasurer" means the custodian of money in a
municipal or county treasury, as appropriate.
Sec. 133.003. CRIMINAL FEES. This chapter applies to the
following criminal fees:
(1) the consolidated fee imposed under Section
133.102;
(2) the time payment fee imposed under Section
133.103;
(3) fees for services of peace officers employed by
the state imposed under Article 102.011, Code of Criminal
Procedure, and forwarded to the comptroller as provided by Section
133.104;
(4) costs on conviction imposed in certain statutory
county courts under Section 51.702, Government Code, and deposited
in the judicial fund;
(5) costs on conviction imposed in certain county
courts under Section 51.703, Government Code, and deposited in the
judicial fund;
(6) the administrative fee for failure to appear or
failure to pay or satisfy a judgment imposed under Section 706.006,
Transportation Code; and
(7) fines on conviction imposed under Section
621.506(g), Transportation Code.
Sec. 133.004. CIVIL FEES. This chapter applies to the
following civil fees:
(1) the consolidated fee on filing in district court
imposed under Section 133.151;
(2) the filing fee in district court for basic civil
legal services for indigents imposed under Section 133.152;
(3) the filing fee in courts other than district court
for basic civil legal services for indigents imposed under Section
133.153;
(4) the filing fees for the judicial fund imposed in
certain statutory county courts under Section 51.702, Government
Code;
(5) the filing fees for the judicial fund imposed in
certain county courts under Section 51.703, Government Code;
(6) the filing fees for the judicial fund imposed in
certain statutory probate courts under Section 51.704, Government
Code;
(7) fees collected under Section 118.015;
(8) marriage license fees for the family trust fund
collected under Section 118.018; and
(9) marriage license or declaration of informal
marriage fees for the child abuse and neglect prevention trust fund
account collected under Section 118.022.
[Sections 133.005-133.050 reserved for expansion]
SUBCHAPTER B. REPORTING, COLLECTION, AND REMITTANCE OF FEES
Sec. 133.051. COLLECTION AND REMITTANCE OF FEES. A
municipality or county shall collect, record, account for, and
remit to the comptroller all fees in the manner provided by this
subchapter.
Sec. 133.052. DEPOSIT OF FEES. (a) An officer collecting a
fee in a case in municipal court shall deposit the money in the
municipal treasury.
(b) An officer collecting a fee in a justice, county, or
district court shall deposit the money in the county treasury.
(c) A municipal or county clerk collecting a fee shall
deposit the money in the municipal or county treasury, as
appropriate.
Sec. 133.053. INTEREST-BEARING ACCOUNT. (a) The treasurer
may deposit fees in an interest-bearing account.
(b) The municipality or county may retain any interest
accrued on the money the treasurer deposited in the treasury if the
treasurer remits the funds to the comptroller within the period
prescribed by Section 133.055(a).
Sec. 133.054. RECORDS. (a) An officer or clerk collecting
a fee shall keep a record of the money collected.
(b) The treasurer shall keep a record of the money collected
and on deposit in the treasury.
Sec. 133.055. QUARTERLY REMITTANCE OF FEES TO THE
COMPTROLLER. (a) On or before the last day of the month following
each calendar quarter, the treasurer shall:
(1) remit to the comptroller the money from all fees
collected during the preceding quarter, except as provided by
Section 133.058; and
(2) submit to the comptroller the report required
under Section 133.056 for criminal fees and Section 133.057 for
civil fees.
(b) If the treasurer does not collect any fees during a
calendar quarter, the treasurer shall file the report required for
the quarter in the regular manner. The report must state that no
fees were collected. This subsection does not apply to fees
collected under Sections 14 and 19, Article 42.12, Code of Criminal
Procedure, or under Section 76.013, Government Code.
Sec. 133.056. QUARTERLY REPORT FOR CRIMINAL FEES. (a) On
the last day of the month following a calendar quarter, the
treasurer shall report the criminal fees collected for the
preceding calendar quarter.
(b) For fees collected for convictions of offenses
committed on or after January 1, 2004, a municipality or county
shall report the fees collected for a calendar quarter categorized
according to the class of offense.
(c) For fees collected for convictions of offenses
committed before January 1, 2004, a municipality or county shall
report the total of fees collected for a calendar quarter.
Sec. 133.057. QUARTERLY REPORT FOR CIVIL FEES. On the last
day of the month following a calendar quarter, the treasurer shall
report the civil fees collected for the preceding calendar quarter.
Sec. 133.058. PORTION OF FEE RETAINED. (a) Except as
otherwise provided by this section, a municipality or county may
retain 10 percent of the money collected from fees as a service fee
for the collection if the municipality or county remits the
remainder of the fees to the comptroller within the period
prescribed by Section 133.055(a).
(b) A municipality or county may retain an amount greater
than 10 percent of the money collected from fees if retention of the
greater amount is authorized by law.
(c) A county may retain five percent of the money collected
as a service fee on the basic civil legal service for indigents
filing fee.
(d) A county may not retain a service fee on the collection
of a fee:
(1) for the judicial fund; or
(2) under Sections 14 and 19, Article 42.12, Code of
Criminal Procedure.
Sec. 133.059. AUDIT. (a) The comptroller may audit the
records of a county or municipality relating to fees collected
under this chapter.
(b) Money spent from fees collected under this chapter is
subject to audit by the state auditor.
[Sections 133.060-133.100 reserved for expansion]
SUBCHAPTER C. CRIMINAL FEES
Sec. 133.101. MEANING OF CONVICTION. In this subchapter, a
person is considered to have been convicted in a case if:
(1) a judgment, a sentence, or both a judgment and a
sentence are imposed on the person;
(2) the person receives community supervision,
deferred adjudication, or deferred disposition; or
(3) the court defers final disposition of the case or
imposition of the judgment and sentence.
Sec. 133.102. CONSOLIDATED FEES ON CONVICTION. (a) A
person convicted of an offense shall pay as a court cost, in
addition to all other costs:
(1) $133 on conviction of a felony;
(2) $83 on conviction of a Class A or Class B
misdemeanor; or
(3) $40 on conviction of a nonjailable misdemeanor
offense, including a criminal violation of a municipal ordinance,
other than a conviction of an offense relating to a pedestrian or
the parking of a motor vehicle.
(b) The court costs under Subsection (a) shall be collected
and remitted to the comptroller in the manner provided by
Subchapter B.
(c) The money collected under this section as court costs
imposed on offenses committed on or after January 1, 2004, shall be
allocated according to the percentages provided in Subsection (e).
(d) The money collected as court costs imposed on offenses
committed before January 1, 2004, shall be distributed using
historical data so that each account or fund receives the same
amount of money the account or fund would have received if the court
costs for the accounts and funds had been collected and reported
separately.
(e) The comptroller shall allocate the court costs received
under this section to the following accounts and funds so that each
receives to the extent practicable, utilizing historical data as
applicable, the same amount of money the account or fund would have
received if the court costs for the accounts and funds had been
collected and reported separately, except that the account or fund
may not receive less than the following percentages:
(1) abused children's counseling 0.0088 percent;
(2) crime stoppers assistance 0.2581 percent;
(3) breath alcohol testing 0.5507 percent;
(4) Bill Blackwood Law Enforcement
Management Institute 2.1683 percent;
(5) law enforcement officers
standards and education 5.0034 percent;
(6) comprehensive rehabilitation 5.3218 percent;
(7) operator's and chauffeur's license 11.1426 percent;
(8) criminal justice planning 12.5537 percent;
(9) an account in the state treasury
to be used only for the establishment and operation
of the Center for the Study and Prevention of
Juvenile Crime and Delinquency at Prairie View
A&M University 1.2090 percent;
(10) compensation to victims of
crime fund37.6338 percent;
(11) fugitive apprehension account 12.0904 percent;
(12) judicial and court personnel
training fund 4.8362 percent;
(13) an account in the state
treasury to be used for the establishment
and operation of the Correctional Management
Institute of Texas and Criminal Justice
Center Account 1.2090 percent; and
(14) fair defense account 6.0143 percent.
(f) Of each dollar credited to the law enforcement officers
standards and education account under Subsection (e)(5):
(1) 33.3 cents may be used only to pay administrative
expenses; and
(2) the remainder may be used only to pay expenses
related to continuing education for persons licensed under Chapter
1701, Occupations Code.
Sec. 133.103. TIME PAYMENT FEE. (a) A person convicted of
an offense shall pay, in addition to all other costs, a fee of $25 if
the person:
(1) has been convicted of a felony or misdemeanor; and
(2) pays any part of a fine, court costs, or
restitution on or after the 31st day after the date on which a
judgment is entered assessing the fine, court costs, or
restitution.
(b) The treasurer shall send 50 percent of the fees
collected under this section to the comptroller. The comptroller
shall deposit the fees received to the credit of the general revenue
fund.
(c) The treasurer shall deposit 10 percent of the fees
collected under this section in the general fund of the county or
municipality for the purpose of improving the efficiency of the
administration of justice in the county or municipality. The
county or municipality shall prioritize the needs of the judicial
officer who collected the fees when making expenditures under this
subsection and use the money deposited to provide for those needs.
(d) The treasurer shall deposit the remainder of the fees
collected under this section in the general revenue account of the
county or municipality.
Sec. 133.104. FEES FOR SERVICES OF PEACE OFFICERS EMPLOYED
BY THE STATE. (a) Fees imposed under Article 102.011, Code of
Criminal Procedure, for services performed by peace officers
employed by the state shall be forwarded to the comptroller after
deducting four-fifths of the amount of each fee received for a
service performed under Subsection (a)(1) or (a)(2) of that
article, in a manner directed by the comptroller.
(b) The comptroller shall credit fees received under
Subsection (a) to the general revenue fund.
[Sections 133.105-133.150 reserved for expansion]
SUBCHAPTER D. CIVIL FEES
Sec. 133.151. CONSOLIDATED CIVIL FEE ON FILING A CIVIL SUIT
IN DISTRICT COURT. (a) In addition to each fee collected under
Section 51.317(b)(1), Government Code, the clerk of a district
court shall collect the following fees on the filing of any civil
suit:
(1) $45 for family law cases and proceedings as
defined by Section 25.0002, Government Code; and
(2) $50 for any case other than a case described by
Subdivision (1).
(b) The fees under Subsection (a) shall be collected and
remitted to the comptroller in the manner provided by Subchapter B.
(c) The comptroller shall allocate the fees received under
this section to the following accounts and funds so that each
receives to the extent practicable, utilizing historical data as
applicable, the same amount of money the account or fund would have
received if the fees for the accounts and funds had been collected
and reported separately:
(1) the judicial fund to be used for court-related
purposes for the support of the judiciary; and
(2) the basic civil legal services account of the
judicial fund for use in programs approved by the supreme court that
provide basic civil legal services to an indigent.
Sec. 133.152. ADDITIONAL FILING FEES FOR CERTAIN ACTIONS
AND PROCEEDINGS IN DISTRICT COURT FOR BASIC CIVIL LEGAL SERVICES
FOR INDIGENTS. (a) In addition to other fees authorized or
required by law, the clerk of a district court shall collect the
following fees on the filing of any civil action or proceeding
requiring a filing fee, including an appeal, and on the filing of
any counterclaim, cross-action, intervention, interpleader, or
third-party action requiring a filing fee:
(1) $5 in family law cases and proceedings as defined
by Section 25.0002, Government Code; and
(2) $10 in any case other than a case described by
Subdivision (1).
(b) The fees under this section shall be collected and
remitted to the comptroller in the manner provided by Subchapter B.
(c) The comptroller shall deposit the fees to the credit of
the basic civil legal services account of the judicial fund for use
in programs approved by the supreme court that provide basic civil
legal services to an indigent.
Sec. 133.153. ADDITIONAL FILING FEES FOR CERTAIN ACTIONS
AND PROCEEDINGS IN COURTS OTHER THAN DISTRICT COURT FOR BASIC CIVIL
LEGAL SERVICES FOR INDIGENTS. (a) In addition to other fees
authorized or required by law, the clerk of a court other than a
district court, the courts of appeals, or the supreme court shall
collect the following fees on the filing of any civil action or
proceeding requiring a filing fee, including an appeal, and on the
filing of any counterclaim, cross-action, intervention,
interpleader, or third-party action requiring a filing fee:
(1) $5 for statutory and constitutional county courts;
and
(2) $2 for justice of the peace courts.
(b) The fees shall be collected and remitted to the
comptroller in the manner provided by Subchapter B.
(c) The comptroller shall deposit the fees to the credit of
the basic civil legal services account of the judicial fund for use
in programs approved by the supreme court that provide basic civil
legal services to an indigent.
(b) This section takes effect January 1, 2004.
SECTION 63. (a) Subsection (e), Section 14, Article 42.12,
Code of Criminal Procedure, is amended to read as follows:
(e) The clerk of a court that collects a fee imposed under
Subsection (c)(2) shall deposit the fee to be sent to the
comptroller as provided by Subchapter B, Chapter 133, Local
Government Code [remit the fee to the comptroller], and the
comptroller shall deposit the fee into the general revenue fund. In
requiring the payment of a fee under Subsection (c)(2), the judge
shall consider fines, fees, and other necessary expenses for which
the defendant is obligated in establishing the amount of the fee.
The judge may not:
(1) establish the fee in an amount that is greater than
25 percent of the defendant's gross income while the defendant is a
participant in residential aftercare; or
(2) require the defendant to pay the fee at any time
other than a time at which the defendant is both employed and a
participant in residential aftercare.
(b) This section takes effect January 1, 2004.
SECTION 64. (a) Subsection (f), Section 19, Article 42.12,
Code of Criminal Procedure, is amended to read as follows:
(f) A community corrections and supervision department
shall deposit the [remit] fees collected under Subsection (e) of
this section to be sent to the comptroller as provided by Subchapter
B, Chapter 133, Local Government Code. The comptroller shall
deposit the fee in the [special revenue fund to the credit of the]
sexual assault program fund [established] under Section 420.008,
Government [44.0061, Health and Safety] Code.
(b) This section takes effect January 1, 2004.
SECTION 65. (a) Article 45.048, Code of Criminal
Procedure, is amended to read as follows:
Art. 45.048. DISCHARGED FROM JAIL. (a) A defendant placed
in jail on account of failure to pay the fine and costs shall be
discharged on habeas corpus by showing that the defendant:
(1) is too poor to pay the fine and costs; or
(2) has remained in jail a sufficient length of time to
satisfy the fine and costs, at the rate of not less than $50 [$100]
for each period of time served, as specified by the convicting court
in the judgment in the case.
(b) A convicting court may specify a period of time that is
not less than eight hours or more than 24 hours as the period for
which a defendant who fails to pay the fines and costs in the case
must remain in jail to satisfy $50 [$100] of the fine and costs.
(b) This section takes effect January 1, 2004.
(c) The change in law made by this section to Article
45.048, Code of Criminal Procedure, applies only to a defendant
serving a sentence for an offense committed on or after the
effective date of this section. A defendant serving a sentence for
an offense committed before the effective date of this section is
covered by the law in effect when the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this subsection, an offense is committed before the effective date
of this section if any element of the offense occurs before that
date.
SECTION 66. (a) Subsection (e), Article 45.049, Code of
Criminal Procedure, is amended to read as follows:
(e) A defendant is considered to have discharged not less
than $50 [$100] of fines or costs for each eight hours of community
service performed under this article.
(b) This section takes effect January 1, 2004.
(c) The change in law made by this section to Article
45.049, Code of Criminal Procedure, applies only to a defendant
serving a sentence for an offense committed on or after the
effective date of this section. A defendant serving a sentence for
an offense committed before the effective date of this section is
covered by the law in effect when the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this subsection, an offense is committed before the effective date
of this section if any element of the offense occurs before that
date.
SECTION 67. (a) Article 102.004, Code of Criminal
Procedure, is amended by adding Subsection (c) to read as follows:
(c) In this article, "conviction" has the meaning assigned
by Section 133.101, Local Government Code.
(b) This section takes effect January 1, 2004.
SECTION 68. (a) Article 102.011, Code of Criminal
Procedure, is amended by adding Subsection (j) to read as follows:
(j) In this article, "conviction" has the meaning assigned
by Section 133.101, Local Government Code.
(b) This section takes effect January 1, 2004.
SECTION 69. (a) Subsection (e), Article 102.014, Code of
Criminal Procedure, is amended to read as follows:
(e) In this article, a person is considered to have been
convicted in a case if the person would be considered to have been
convicted under Section 133.101, Local Government Code[:
[(1) a sentence is imposed;
[(2) the defendant receives probation or deferred
adjudication; or
[(3) the court defers final disposition of the case].
(b) This section takes effect January 1, 2004.
SECTION 70. (a) Subsection (d), Section 51.702, Government
Code, is amended to read as follows:
(d) The clerk shall deposit [send] the fees and costs
collected under this section to be sent to the comptroller as
provided by Subchapter B, Chapter 133, Local Government Code [at
least as frequently as monthly]. The comptroller shall deposit the
fees in the judicial fund.
(b) This section takes effect January 1, 2004.
SECTION 71. (a) Subsection (d), Section 51.703, Government
Code, is amended to read as follows:
(d) The clerk shall deposit [send] the fees and costs
collected under this section to be sent to the comptroller as
provided by Subchapter B, Chapter 133, Local Government Code [at
least as frequently as monthly]. The comptroller shall deposit the
fees in the judicial fund.
(b) This section takes effect January 1, 2004.
SECTION 72. (a) Subsection (c), Section 51.704, Government
Code, is amended to read as follows:
(c) The clerk shall deposit [send] the fees collected under
this section to be sent to the comptroller as provided by Subchapter
B, Chapter 133, Local Government Code [at least as frequently as
monthly]. The comptroller shall deposit the fees in the judicial
fund.
(b) This section takes effect January 1, 2004.
SECTION 73. (a) Section 51.941, Government Code, is
amended to read as follows:
Sec. 51.941. ADDITIONAL FILING FEE IN APPELLATE COURTS FOR
BASIC CIVIL LEGAL SERVICES FOR INDIGENTS. (a) In addition to other
fees authorized or required by law, the clerk of the supreme court
and courts of appeals [each court] shall collect a $25 fee [the
following fees] on the filing of any civil action or proceeding
requiring a filing fee, including an appeal, and on the filing of
any counterclaim, cross-action, intervention, interpleader, or
third-party action requiring a filing fee[:
[(1) supreme court and courts of appeals $25;
[(2) district courts, for other than divorce and other
family law matters $10;
[(3) district courts, divorce and other family law
matters $5;
[(4) statutory and constitutional county courts . . $5;
[(5) justice of the peace courts $2].
(b) Court fees under this section [subchapter] shall be
collected in the same manner as other fees, fines, or costs in the
case.
(c) The clerk shall send the fees collected under this
section [Subsection (a)(1)] to the comptroller not later than the
last day of the month following [10th day after the end of] each
calendar quarter.
(d) [The clerk shall remit the fees collected under
Subsections (a)(2)-(5) at least as frequently as monthly to the
county treasurer or the person who performs the duties of the county
treasurer. The county treasurer or the person performing the
duties of the county treasurer shall keep a record of the amount of
money received under this subsection. The county treasurer or the
person who performs the duties of the county treasurer shall remit
the fees collected, minus an amount ordered retained by the county
commissioners court as provided by Subsection (e), to the
comptroller not later than the 10th day after the end of each
quarter.
[(e) The commissioners court by order may require the county
treasurer or the person who performs the duties of the county
treasurer to deposit in the county's general revenue account five
percent of the fees collected under Subsections (a)(2)-(5) to
reimburse the county for the expense of collecting and remitting
the fees collected under Subsections (a)(2)-(5).
[(f)] The comptroller shall deposit the fees received under
this section to the credit of the basic civil legal services account
of the judicial fund for use in programs approved by the supreme
court that provide basic civil legal services to the indigent.
(e) [(g)] In this section, "indigent"[:
[(1) "Family law matters" has the meaning assigned
"family law cases and proceedings" by Section 25.0002.
[(2) "Indigent"] means an individual who earns not
more than 125 percent of the income standard established by
applicable federal poverty guidelines.
(b) This section takes effect January 1, 2004.
SECTION 74. (a) Subsection (b), Section 118.015, Local
Government Code, is amended to read as follows:
(b) A county clerk who collects a fee under this section for
a certified copy of a birth certificate shall deposit the fee into
the county treasury. The state's portion of the fee shall be sent
[deduct 20 cents of that fee to apply to the clerk's administrative
costs and remit $1.80 of that fee] to the comptroller as provided by
Subchapter B, Chapter 133, for deposit in the work and family
policies fund.
(b) This section takes effect January 1, 2004.
SECTION 75. (a) Subsection (c), Section 118.018, Local
Government Code, is amended to read as follows:
(c) A county clerk who collects a fee under this section
from a marriage license applicant shall deposit [remit] $3 of that
fee to be sent to the comptroller as provided by Subchapter B,
Chapter 133, for deposit in the family trust fund established under
Section 2.014, Family Code.
(b) This section takes effect January 1, 2004.
SECTION 76. (a) Subsection (a), Section 118.022, Local
Government Code, is amended to read as follows:
(a) The county clerk shall deposit, as provided by
Subchapter B, Chapter 133, [not later than the 10th day of each
month, send to the comptroller of public accounts] $12.50 of each
fee collected [during the preceding month] for issuance of a
marriage license or declaration of informal marriage to be sent to
the comptroller and deposited as provided by Subsection (b).
(b) This section takes effect January 1, 2004.
SECTION 77. (a) Section 542.403, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) In this section, "conviction" has the meaning assigned
by Section 133.101, Local Government Code.
(b) This section takes effect January 1, 2004.
SECTION 78. (a) Section 621.506, Transportation Code, is
amended by amending Subsection (g) and adding Subsection (h) to
read as follows:
(g) Except as provided by Subsection (h), a [A] governmental
entity that collects a fine under this section for an offense
involving a vehicle having a single axle weight, tandem axle
weight, or gross weight that is more than 5,000 pounds heavier than
the vehicle's allowable weight shall send an amount equal to 50
percent of the fine to the comptroller in the manner provided by
Subchapter B, Chapter 133, Local Government Code.
(h) If [unless] the offense described by Subsection (g)
occurred within 20 miles of an international border, [in which
event] the entire amount of the fine shall be deposited for the
purposes of road maintenance in:
(1) the municipal treasury, if the fine was imposed by
a municipal court; or
(2) the county treasury, if the fine was imposed by a
justice court.
(b) This section takes effect January 1, 2004.
SECTION 79. (a) Subsection (a), Section 706.006,
Transportation Code, is amended to read as follows:
(a) A person who fails to appear for a complaint or citation
for an offense described by Section 706.002(a) shall be required to
pay an administrative fee of $30 for each complaint or citation
reported to the department under this chapter [violation for which
the person failed to appear], unless the person is acquitted of the
charges for which the person failed to appear. The person shall pay
the fee when:
(1) the court enters judgment on the underlying
offense reported to the department;
(2) the underlying offense is dismissed; or
(3) bond or other security is posted to reinstate the
charge for which the warrant was issued.
(b) This section takes effect January 1, 2004.
SECTION 80. (a) Subsections (a), (b), and (c), Section
706.007, Transportation Code, are amended to read as follows:
(a) An officer collecting a fee under Section 706.006 shall
keep records and deposit the money as provided by Subchapter B,
Chapter 133, Local Government Code[:
[(1) keep separate records of the money; and
[(2) deposit the money in the appropriate municipal or
county treasury].
(b) The custodian of the municipal or county treasury may[:
[(1)] deposit each fee collected under Section 706.006
as provided by Subchapter B, Chapter 133, Local Government Code [in
an interest-bearing account; and
[(2) retain for the municipality or county the
interest earned on money in the account].
(c) The custodian shall keep records of money received and
disbursed under this section as provided by Subchapter B, Chapter
133, Local Government Code, and shall provide an annual report, in
the form approved by the comptroller, of all money received and
disbursed under this section to:
(1) the comptroller;
(2) the department; and
(3) another entity as provided by interlocal contract.
(b) This section takes effect January 1, 2004.
SECTION 81. (a) Subchapter G, Chapter 51, Government Code,
is amended by adding Section 51.607 to read as follows:
Sec. 51.607. IMPLEMENTATION OF NEW OR AMENDED COURT COSTS
AND FEES. (a) Following each regular session of the legislature,
the comptroller shall identify each law enacted by that
legislature, other than a law disapproved by the governor, that
imposes or changes the amount of a court cost or fee collected by
the clerk of a district, county, statutory county, municipal, or
justice court from a party to a civil case or a defendant in a
criminal case, including a filing or docketing fee, jury fee, cost
on conviction, or fee or charge for services or to cover the
expenses of a public official or agency. This subsection does not
apply to attorney's fees, civil or criminal fines or penalties, or
amounts charged, paid, or collected on behalf of another party to a
proceeding other than the state in a criminal case, including
restitution or damages.
(b) The comptroller shall prepare a list of each court cost
or fee covered by Subsection (a) to be imposed or changed and shall
publish the list in the Texas Register not later than August 1 after
the end of the regular session of the legislature at which the law
imposing or changing the amount of the cost or fee was enacted. The
comptroller shall include with the list a statement describing the
operation of this section and stating the date the imposition or
change in the amount of the court cost or fee will take effect under
Subsection (c).
(c) Notwithstanding the effective date of the law imposing
or changing the amount of a court cost or fee included on the list,
the imposition or change in the amount of the court cost or fee does
not take effect until the next January 1 after the law takes effect.
(d) This section does not apply to a court cost or fee if the
law imposing or changing the amount of the cost or fee:
(1) expressly provides that this section does not
apply to the imposition or change in the amount of the cost or fee;
or
(2) takes effect before August 1 or after the next
January 1 following the regular session of the legislature at which
the law was enacted.
(b) Section 51.607, Government Code, as added by this
section, does not apply to a law that takes effect before September
1, 2003.
(c) Section 51.607, Government Code, as added by this
section, applies to a law enacted by the 78th Legislature, Regular
Session, 2003, that takes effect on or after September 1, 2003, but
only if this section takes effect before July 1, 2003.
(d) This section takes effect immediately if this Act
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this section takes effect September 1, 2003.
SECTION 82. The heading to Chapter 319, Government Code, is
amended to read as follows:
CHAPTER 319. LEGISLATION REGARDING JUDICIAL SYSTEM
[IMPACT NOTES]
SECTION 83. Sections 319.001 through 319.004, Government
Code, are designated as Subchapter A of Chapter 319 and the
following heading is added to that subchapter:
SUBCHAPTER A. JUDICIAL SYSTEM IMPACT NOTES
SECTION 84. Chapter 319, Government Code, is amended by
adding Subchapter B to read as follows:
SUBCHAPTER B. LEGISLATION RELATING TO COURT COSTS
Sec. 319.021. IMPACT STATEMENT ON LEGISLATION IMPOSING
COURT COSTS ON CRIMINAL DEFENDANTS. (a) This section applies only
to a new court cost or fee that is remitted to the comptroller.
(b) The Legislative Budget Board shall prepare an impact
statement for each resolution proposing a constitutional amendment
or bill that proposes imposing a new court cost or fee on a person
charged with a criminal offense or increasing the amount of an
existing court cost or fee imposed on a person charged with a
criminal offense, including a court cost or fee imposed on
conviction or other disposition or postponed disposition of the
criminal charge.
(c) The impact statement must show the total amount of court
costs and fees that persons will be required to pay under the bill
or resolution when considered together with all other applicable
laws.
(d) The state auditor shall provide the Legislative Budget
Board with the initial data needed to develop a mechanism that will
be used to produce the impact statements.
SECTION 85. (a) The following are repealed:
(1) Article 56.55, Code of Criminal Procedure;
(2) Article 56.56, Code of Criminal Procedure;
(3) Article 56.57, Code of Criminal Procedure;
(4) Article 56.59, Code of Criminal Procedure;
(5) Subsections (f), (g), and (h), Article 102.011,
Code of Criminal Procedure;
(6) Article 102.019, Code of Criminal Procedure;
(7) Article 102.075, Code of Criminal Procedure;
(8) Section 51.701, Government Code;
(9) Section 51.921, Government Code; and
(10) Subsections (b) through (h), Section 56.001,
Government Code.
(b) This section takes effect January 1, 2004.
SECTION 86. (a) Section 151.025, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) If any nontaxable charges are combined with and not
separately stated from taxable telecommunications service charges
on the customer bill or invoice of a provider of telecommunications
services, the combined charge is subject to tax unless the provider
can identify the portion of the charges that are nontaxable through
the provider's books and records kept in the regular course of
business. If the nontaxable charges cannot reasonably be
identified, the charges from the sale of both nontaxable services
and taxable telecommunications services are attributable to
taxable telecommunications services. The provider of
telecommunications services has the burden of proving nontaxable
charges.
(b) Section 151.025(c), Tax Code, is repealed.
SECTION 87. Section 351.006, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The right to use or possess a room in a hotel is exempt
from taxation under this chapter if the person required to collect
the tax receives, in good faith from a guest, an exemption
certificate stating qualification for an exemption provided in
Subsection (c). The exemption must be supported by the
documentation required under rules adopted by the comptroller and
the municipality.
SECTION 88. Section 352.007, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The right to use or possess a room in a hotel is exempt
from taxation under this chapter if the person required to collect
the tax receives, in good faith from a guest, an exemption
certificate stating qualification for an exemption provided in
Subsection (c). The exemption must be supported by the
documentation required under rules adopted by the comptroller and
the county.
SECTION 89. Section 334.256(a), Local Government Code, is
amended to read as follows:
(a) Each bill or other receipt for a hotel charge subject to
the tax imposed under this subchapter must contain a statement in a
conspicuous location stating the applicable hotel occupancy tax
rate collected by the hotel from the customer for the State of Texas
(insert state rate of tax) and the tax rate and identity of each
other taxing authority that has imposed a hotel occupancy tax for
the room night (insert rate of tax). [:"___________ (insert name of
taxing municipality or county) requires that an additional tax of
_____ percent (insert rate of tax) be imposed on each hotel charge
for the purpose of financing a venue project. In addition to the
tax imposed to finance a venue project, the State of Texas requires
that a tax of six percent be imposed on each hotel charge."]
SECTION 90. Section 351.101(a), Tax Code, is amended to
read as follows:
(a) Revenue from the municipal hotel occupancy tax may be
used only to promote tourism and the convention and hotel industry,
and that use is limited to the following:
(1) the acquisition of sites for and the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of convention center facilities or visitor information
centers, or both;
(2) the furnishing of facilities, personnel, and
materials for the registration of convention delegates or
registrants;
(3) advertising and conducting solicitations and
promotional programs to attract tourists and convention delegates
or registrants to the municipality or its vicinity;
(4) the encouragement, promotion, improvement, and
application of the arts, including instrumental and vocal music,
dance, drama, folk art, creative writing, architecture, design and
allied fields, painting, sculpture, photography, graphic and craft
arts, motion pictures, radio, television, tape and sound recording,
and other arts related to the presentation, performance, execution,
and exhibition of these major art forms;
(5) historical restoration and preservation projects
or activities or advertising and conducting solicitations and
promotional programs to encourage tourists and convention
delegates to visit preserved historic sites or museums:
(A) at or in the immediate vicinity of convention
center facilities or visitor information centers; or
(B) located elsewhere in the municipality or its
vicinity that would be frequented by tourists and convention
delegates; and
(6) for a municipality located in a county with a
population of 290,000 [65,000] or less, expenses, including
promotion expenses, directly related to a sporting event in which
the majority of participants are tourists who substantially
increase economic activity at hotels and motels within the
municipality or its vicinity.
SECTION 91. Section 351.102, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) A municipality to which Subsection (b) applies is
entitled to receive all funds that an owner of a project may receive
under Section 151.429(h).
SECTION 92. Section 2303.406, Government Code, is amended
by adding Subsection (e) to read as follows:
(e) The department may designate multiple concurrent
enterprise projects in the same enterprise zone and may designate
the same qualified business as more than one enterprise project.
SECTION 93. The change in law made by this Act to Chapter
2303, Government Code, applies only to:
(1) an application for enterprise project designation
submitted on or after September 1, 2003; or
(2) an application for enterprise project designation
approved by the Texas Department of Economic Development or its
successor on or after September 1, 2003, for which the application
for enterprise project designation was submitted in calendar year
2002.
SECTION 94. Section 151.319(c), Tax Code, is amended to
read as follows:
(c) The [A transaction involving the] sale of a handbill,
circular, flyer, advertising supplement, or similar item that is
printed to the special order of a customer and tangible personal
property that will become an ingredient or component part of such
item are [is] exempted from the taxes imposed by this chapter if the
item is printed for the exclusive purpose of being distributed as a
part of a newspaper, is actually distributed as a part of the
newspaper, and is delivered to the person who is responsible for the
distribution of the newspaper in which the item is distributed and
not to the customer.
SECTION 95. Subchapter Q, Chapter 171, Tax Code, is amended
by adding Section 171.8015 to read as follows:
Sec. 171.8015. TANGIBLE PERSONAL PROPERTY FIRST PLACED IN
SERVICE IN AN ENTERPRISE ZONE. For purposes of determining whether
an investment is a "qualified capital investment" under Section
171.801, "tangible personal property first placed in service in an
enterprise zone" includes tangible personal property:
(1) purchased by a qualified business for placement in
an incomplete improvement that is under active construction or
other physical preparation;
(2) identified by a purchase order, invoice, billing,
sales slip, or contract; and
(3) physically present at the enterprise zone and in
use by the qualified business not later than September 30, 2005.
SECTION 96. Contingent on H.B. No. 2458, Acts of the 78th
Legislature, Regular Session, 2003, being enacted and becoming law,
and effective January 1, 2004, Sections 162.405(a) and (d), Tax
Code, are amended to read as follows:
(a) An offense under Section 162.403(1), (2), (3), (4), (5),
(6), [(7),] or (8) is a Class C misdemeanor.
(d) An offense under Section 162.403(7), (22), (23), (24),
(25), (26), (27), (28), or (29) is a felony of the third degree.
SECTION 97. (a) Except as otherwise provided by this or
another section, this Act takes effect September 1, 2003.
(b) Sections 14, 28, and 29 of this Act take effect October
1, 2003.
(c) Section 15 of this Act applies only to a tax lien filed
on or after the effective date of this Act. A tax lien filed before
the effective date of this Act is governed by the law in effect on
the date the tax lien is filed, and that law is continued in effect
for that purpose.
(d) Sections 2, 4, 5, 7, 8, and 9A of this Act take effect
January 1, 2004.
(e) Sections 38, 41, and 50 of this Act take effect January
1, 2004, and apply to reports originally due on or after that date.
A report originally due before January 1, 2004, is governed by the
law in effect on the date the report is originally due, and that law
is continued in effect for that purpose.
(f) Sections 43, 44, 45, 46, 47, 48, 49, and 95 of this Act
apply only to a report originally due on or after the effective date
of this Act.
(g) Section 156.104(b), Tax Code, as added by Section 30 of
this Act, takes effect January 1, 2004.
(h) This Act takes effect July 1, 2003, if it receives a vote
of two-thirds of all the members elected to each house, as provided
by Section 39, Article III, Texas Constitution. If this Act does
not receive the vote necessary for effect on that date, this Act
takes effect October 1, 2003. The change in law made by this Act
does not affect taxes imposed before the effective date of this Act,
and the law in effect before the effective date of this Act is
continued in effect for purposes of the liability for and
collection of those taxes.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2424 was passed by the House on May
16, 2003, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 2424 on May 30, 2003, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 2424 on June 1, 2003, by a
non-record vote; and that the House adopted S.C.R. No. 67
authorizing certain corrections in H.B. No. 2424 on June 2, 2003, by
a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2424 was passed by the Senate, with
amendments, on May 28, 2003, by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 2424 on June 1, 2003, by
the following vote: Yeas 31, Nays 0; and that the Senate adopted
S.C.R. No. 67 authorizing certain corrections in H.B. No. 2424 on
June 1, 2003.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor