HBA-LJP C.S.H.B. 3608 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3608 By: Davis, Yvonne Ways & Means 4/8/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, if the comptroller finds an amount of tax, penalty, or interest that has been unlawfully or erroneously collected, the comptroller is authorized to credit the taxpayer from money appropriated for tax refund purposes. A person who claims a refund is entitled to a hearing on the claim and to 20 days notification of the time and place of the hearing, and the decision of the comptroller following the hearing becomes final in 20 days after service on the claimant of the notice of the order or decision. Under these current provisions, it is possible that some erroneously collected money will not be refunded to the taxpayer. C.S.H.B. 3608 requires the comptroller to refund erroneously collected taxes, penalties, or interests and extends the time period, from 20 days to 30 days, of the notification to the taxpayer of a hearing for a refund claim and the decision of the comptroller on the hearing becomes final. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 3608 amends the Tax Code to require, rather than authorize, the comptroller to refund to a taxpayer the remainder of an amount of tax, penalty, or interest that is found by the comptroller to be erroneously collected from a credit against any other amount due and payable. The bill removes the provision relating to the comptroller refunding a taxpayer from money appropriated for tax refund purposes. The bill extends, from 20 days to 30, the time period that a person claiming a refund and requesting a hearing in accordance with procedures prescribed by the comptroller is entitled to notice of the time and place of the hearing. The bill also extends, from 20 days to 30 days after service on the claimant of the notice of the order or decision, the time period that a decision of the comptroller following the hearing on the claim becomes final. The bill provides that no taxes, penalties, or interest may be refunded to a person who has collected the taxes from another person unless the person has refunded all the taxes, penalties, and interest to the person from whom the taxes were collected. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3608 modifies the original by changing the effective date of October 1, 2001 to September 1, 2001. The substitute also modifies the original by conforming to Texas Legislative Council style and format.