HBA-JLV H.B. 2582 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2582
By: Chavez
Ways & Means
4/12/2001
Introduced



BACKGROUND AND PURPOSE 

The United States Constitution exempts exports from state taxation and the
State of Texas has enacted statutes recognizing the exemption and provides
a means for obtaining a refund of state sales tax paid on exports.  One of
those means is by a licensed customs broker issuing documentation
certifying that merchandise is an export.  The statutes under which this
documentation is issued do not provide sufficient direction regarding when
and under what procedures this documentation may be issued certifying
merchandise  as an export.  Correcting these deficiencies could help ensure
the state's proper collection of taxes and benefit the economy of the state
by encouraging the sale of exports from Texas to Mexico. House Bill 2582
establishes procedures under which licensed customs brokers operate,
including procedures under which they may issue documentation certifying
merchandise as an export, and provides for fines and penalties to be
imposed when procedures are not followed.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the comptroller of public accounts in
SECTION 2 (Section 151.1575, Tax Code) of this bill. 

ANALYSIS

House Bill 2582 amends the Tax Code to establish procedures under which
licensed custom brokers (broker) operate.  The bill increases, from $500 to
$5,000, the amount of the bond or security a broker is required to post for
the comptroller of public accounts (comptroller) to issue a license to a
broker.  The comptroller is prohibited from requiring a bond or security in
an amount greater than $10,000, rather than $2500.  The bill authorizes the
comptroller to suspend or revoke a license if the broker does not comply
with certain provisions or knowingly or intentionally issues documentation
that is false to obtain a refund of taxes paid on tangible personal
property not exported or to assist another person in obtaining such a
refund. 

The bill sets forth provisions regarding the requirements which authorize a
broker licensed by the comptroller or an authorized employee of the broker
to issue documentation certifying that delivery of tangible personal
property was made to a point outside the territorial limits of the United
States.  The bill authorizes the broker or authorized employee of the
broker to issue and deliver documentation at any time after the tangible
personal property is purchased and the broker or employee completes the
certification process.  The bill sets forth the information the
documentation must include.  The comptroller may require a broker to pay
the comptroller the amount of any tax refund if the customs broker does not
comply with applicable provisions and rules adopted by the comptroller.
The bill authorizes the comptroller to require the broker to pay a penalty
in an amount equal to two times the amount of the refunded tax, but not
less than $500 nor more than $5,000.  The bill provides that a proceeding
to require a broker to pay a penalty is a contested case in the same manner
as a proceeding to revoke or suspend a broker's license. 

EFFECTIVE DATE

September 1, 2001.