BILL ANALYSIS

H.B. 422

By: Guillen

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, there are no provisions requiring an application for a tax permit or license to notify the applicant of other permits and licenses the applicant may need to acquire.

H.B. 422 seeks to increase awareness of the permits and licenses necessary to conduct business in Texas. By creating a notice on each permit and license required by the comptroller, the bill fosters transparency between the state businesses in Texas.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 422 amends the Tax Code to require the comptroller of public accounts to include a statement on each application for a tax permit or license issued by the comptroller warning that the applicant may be required to obtain an additional permit or license from the state or from a local governmental entity to conduct business. The bill prescribes the content of the statement, including information on a listing of Internet links relating to state licenses, permits, and registrations that is available online.  The bill requires the statement to be placed in a prominent separate section on the last page of each application, on the last line above the applicant signature line, and in bold typeface that is at least as large as any other typeface appearing on the page.  The bill requires the comptroller to revise the required statement as necessary to reflect any change in the Internet address that provides the listing of links. 

H.B. 422 requires the comptroller, not later than the 60th day after the effective date, to modify each application for a permit or license issued by the comptroller as necessary to comply with the provisions of the bill.

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.