By: Rose (Senate Sponsor - Watson) H.B. No. 2010
         (In the Senate - Received from the House April 26, 2007;
  May 1, 2007, read first time and referred to Committee on Finance;
  May 18, 2007, reported favorably by the following vote:  Yeas 10,
  Nays 0; May 18, 2007, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to declaratory relief for businesses in this state for
  liability for sales and use taxes of other states.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 37, Civil Practice and Remedies Code, is
  amended by adding Section 37.0055 to read as follows:
         Sec. 37.0055.  DECLARATIONS RELATING TO LIABILITY FOR SALES
  AND USE TAXES OF ANOTHER STATE. (a) In this section, "state" 
  includes any political subdivision of that state.
         (b)  A district court has original jurisdiction of a
  proceeding seeking a declaratory judgment that involves:
               (1)  a party seeking declaratory relief that is a
  business that is:
                     (A)  organized under the laws of this state or is
  otherwise owned by a resident of this state; or
                     (B)  a retailer registered with the comptroller
  under Section 151.106, Tax Code; and
               (2)  a responding party that:
                     (A)  is an official of another state; and
                     (B)  asserts a claim that the party seeking
  declaratory relief is required to collect sales or use taxes for
  that state based on conduct of the business that occurs in whole or
  in part within this state.
         (c)  A business described by Subsection (b)(1) is entitled to
  declaratory relief on the issue of whether the requirement of
  another state that the business collect and remit sales or use taxes
  to that state constitutes an undue burden on interstate commerce
  under Section 8, Article I, United States Constitution.
         (d)  In determining whether to grant declaratory relief to a
  business under this section, a court shall consider:
               (1)  the factual circumstances of the business's
  operations that give rise to the demand by the other state; and
               (2)  the decisions of other courts interpreting Section
  8, Article I, United States Constitution.
         SECTION 2.  Section 37.0055, Civil Practice and Remedies
  Code, as added by this Act, applies only to a cause of action that
  accrues on or after the effective date of this Act. A cause of
  action that accrues before the effective date of this Act is
  governed by the law in effect at the time the action accrued, and
  the former law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2007.
 
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