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A BILL TO BE ENTITLED
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AN ACT
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relating to the reallocation of local sales and use taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 321, Tax Code, is amended |
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by adding Section 321.5025 to read as follows: |
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Sec. 321.5025. REALLOCATION OF MUNICIPAL TAX REVENUE. (a) |
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If the comptroller determines that tax revenue collected by the |
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comptroller has been sent incorrectly to a municipality under |
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Section 321.502, the comptroller may reallocate the tax revenue to |
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the appropriate municipality only if: |
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(1) the reallocation is made in accordance with this |
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section; and |
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(2) the municipality that originally received the |
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revenue receives notification of the reallocation under Subsection |
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(b) not later than the first anniversary of the date the |
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municipality originally received the revenue. |
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(b) If the comptroller determines that tax revenue |
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collected by the comptroller has been sent incorrectly to a |
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municipality under Section 321.502, the comptroller shall send to |
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that municipality written notice that the comptroller intends to |
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reallocate the revenue to another municipality. A municipality |
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that receives a notice under this subsection may protest the |
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comptroller's determination by submitting to the comptroller a |
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written request for a hearing on the issue of whether the original |
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allocation of the revenue was incorrect. The municipality must |
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submit the request not later than the 30th day after the date the |
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municipality receives the notice under this subsection. |
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(c) Not later than the 15th day after the date the |
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comptroller receives a request for a hearing under Subsection (b), |
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the comptroller shall send to the requesting municipality a copy of |
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all records, documents, and other information on which the |
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comptroller relied in making its determination, regardless of |
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whether the information is confidential under state law, including |
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Sections 111.006 and 151.027. The provision of confidential |
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information to a municipality under this subsection does not affect |
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the confidential nature of the information. A municipality shall |
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use the information only in a manner that maintains the |
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confidential nature of the information and may not disclose or |
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release the information to the public. |
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(d) Not earlier than the 30th day or later than the 90th day |
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after the date the comptroller receives a request for a hearing |
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under Subsection (b), the comptroller shall hold a hearing on |
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whether the original allocation of the revenue was incorrect. |
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After the conclusion of the hearing, the comptroller shall issue to |
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the municipality a written final decision regarding the protest. |
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For purposes of Section 2001.171, Government Code, the |
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comptroller's decision is final and appealable on the date the |
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decision is issued under this subsection. |
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(e) If the municipality is not satisfied with the |
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comptroller's written final decision, the municipality may appeal |
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the decision by filing a petition in a Travis County district court |
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not later than the 30th day after the date the municipality receives |
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the decision. Judicial review of the decision is under the |
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substantial evidence rule. The court shall hear the appeal without |
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a jury. |
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SECTION 2. Section 322.108(a), Tax Code, is amended to read |
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as follows: |
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(a) Except as provided by Subsection (b), the following |
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apply to the taxes imposed by this chapter in the same manner as |
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applicable to a municipality under Chapter 321: |
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(1) Section 321.002(a)(3); |
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(2) Section 321.003; |
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(3) Section 321.203; |
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(4) Section 321.205(d); |
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(5) Section 321.208; |
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(6) Section 321.209; |
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(7) Section 321.303; |
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(8) Section 321.304; [and] |
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(9) Section 321.305; and |
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(10) Section 321.5025. |
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SECTION 3. Subchapter F, Chapter 323, Tax Code, is amended |
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by adding Section 323.5025 to read as follows: |
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Sec. 323.5025. REALLOCATION OF COUNTY TAX REVENUE. (a) If |
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the comptroller determines that tax revenue collected by the |
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comptroller has been sent incorrectly to a county under Section |
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323.502, the comptroller may reallocate the tax revenue to the |
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appropriate county only if: |
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(1) the reallocation is made in accordance with this |
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section; and |
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(2) the county that originally received the revenue |
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receives notification of the reallocation under Subsection (b) not |
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later than the first anniversary of the date the county originally |
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received the revenue. |
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(b) If the comptroller determines that tax revenue |
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collected by the comptroller has been sent incorrectly to a county |
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under Section 323.502, the comptroller shall send to that county |
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written notice that the comptroller intends to reallocate the |
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revenue to another county. A county that receives a notice under |
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this subsection may protest the comptroller's determination by |
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submitting to the comptroller a written request for a hearing on the |
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issue of whether the original allocation of the revenue was |
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incorrect. The county must submit the request not later than the |
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30th day after the date the county receives the notice under this |
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subsection. |
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(c) Not later than the 15th day after the date the |
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comptroller receives a request for a hearing under Subsection (b), |
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the comptroller shall send to the requesting county a copy of all |
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records, documents, and other information on which the comptroller |
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relied in making its determination, regardless of whether the |
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information is confidential under state law, including Sections |
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111.006 and 151.027. The provision of confidential information to |
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a county under this subsection does not affect the confidential |
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nature of the information. A county shall use the information only |
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in a manner that maintains the confidential nature of the |
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information and may not disclose or release the information to the |
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public. |
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(d) Not earlier than the 30th day or later than the 90th day |
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after the date the comptroller receives a request for a hearing |
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under Subsection (b), the comptroller shall hold a hearing on |
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whether the original allocation of the revenue was incorrect. |
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After the conclusion of the hearing, the comptroller shall issue to |
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the county a written final decision regarding the protest. For |
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purposes of Section 2001.171, Government Code, the comptroller's |
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decision is final and appealable on the date the decision is issued |
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under this subsection. |
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(e) If the county is not satisfied with the comptroller's |
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written final decision, the county may appeal the decision by |
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filing a petition in a Travis County district court not later than |
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the 30th day after the date the county receives the decision. |
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Judicial review of the decision is under the substantial evidence |
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rule. The court shall hear the appeal without a jury. |
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SECTION 4. Section 380.001, Local Government Code, is |
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amended by adding Subsection (b-1) to read as follows: |
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(b-1) Notwithstanding Section 380.002, a municipality may |
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not use sales and use tax revenue that was reallocated to the |
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municipality under Section 321.5025, Tax Code, to make loans or |
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grants for the administration of a program under this chapter. |
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SECTION 5. This Act takes effect July 1, 2009, if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for effect on that |
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date, this Act takes effect September 1, 2009. |