BILL ANALYSIS

H.B. 2067

By: Oliveira

Business & Industry

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties contend that state law providing for the annual registration of related finance companies to which motor vehicle dealers who finance sales in-house assign receivables does not reflect current practice by the comptroller of public accounts. H.B. 2067 seeks to remedy this situation by specifying that a related finance company registration remains in effect until cancelled by the registration holder or the comptroller.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 2067 amends the Tax Code to make the registration of a related finance company, defined by statute as a person in which at least 80 percent of the ownership is identical to the ownership of a dealer, for purposes of collecting motor vehicle sales, rental, and use taxes effective until cancelled by the registration holder or by the comptroller of public accounts.

H.B. 2067 repeals Section 152.0475(d), Tax Code, authorizing the comptroller to charge an annual fee not to exceed $1,500 for such a registration.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2017.