Texas 2015 - 84th Regular

Texas House Bill HB2358 Compare Versions

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1		-	By: Lucio III, Anderson of Dallas H.B. No. 2358
2		-	(Senate Sponsor - Eltife)
3		-	(In the Senate - Received from the House May 5, 2015;
4		-	May 6, 2015, read first time and referred to Committee on Business
5		-	and Commerce; May 15, 2015, reported favorably by the following
6		-	vote: Yeas 8, Nays 0; May 15, 2015, sent to printer.)
7		-	Click here to see the committee vote
	1	+	H.B. No. 2358
8	2
9	3
10		-	A BILL TO BE ENTITLED
11	4		AN ACT
12	5		relating to the exemption from certain registration and licensing
13	6		requirements and taxes for certain businesses and employees who
14	7		enter this state in response to a disaster or emergency.
15	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	9		SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
17	10		amended by adding Chapter 112 to read as follows:
18	11		CHAPTER 112. FACILITATING BUSINESS RAPID RESPONSE TO STATE
19	12		DECLARED DISASTERS ACT
20	13		Sec. 112.001. SHORT TITLE. This chapter may be cited as the
21	14		Facilitating Business Rapid Response to State Declared Disasters
22	15		Act.
23	16		Sec. 112.002. LEGISLATIVE FINDINGS. The legislature finds
24	17		that:
25	18		(1) during times of storm, flood, fire, earthquake,
26	19		hurricane, or other disaster or emergency, many Texas businesses
27	20		bring in resources and personnel from other states on a temporary
28	21		basis to expedite the often enormous and overwhelming tasks of
29	22		cleaning up, restoring, and repairing damaged buildings,
30	23		equipment, and property, and deploying and building new replacement
31	24		facilities in the state;
32	25		(2) accomplishing those tasks may necessitate
33	26		out-of-state businesses, including out-of-state affiliates of
34	27		Texas businesses, bringing into Texas resources, property, and
35	28		personnel that previously had no connection to Texas to perform
36	29		business activities in Texas, including repairing, renovating,
37	30		installing, and building, for extended periods of time;
38	31		(3) during those periods of time, out-of-state
39	32		businesses and employees performing business activities in Texas on
40	33		a temporary basis solely for the purpose of helping the state
41	34		recover from a disaster or emergency should not be burdened by any
42	35		requirements that the out-of-state businesses or employees pay
43	36		taxes as a result of performing those activities; and
44	37		(4) to ensure that out-of-state businesses may focus
45	38		on quickly responding to the needs of Texas and its citizens during
46	39		a disaster or emergency, it is appropriate for the legislature to
47	40		provide that those businesses and their employees are not subject
48	41		to certain state and local registration and licensing requirements
49	42		and taxes for performing business activities before, during, and
50	43		after the disaster or emergency to repair and restore devastating
51	44		damage to critical property and infrastructure in the state.
52	45		Sec. 112.003. DEFINITIONS. In this chapter:
53	46		(1) "Affiliate" means a member of a combined group as
54	47		that term is described by Section 171.1014, Tax Code.
55	48		(2) "Critical infrastructure" means equipment and
56	49		property that is owned or used by a telecommunications provider or
57	50		cable operator or for communications networks, electric
58	51		generation, electric transmission and distribution systems,
59	52		natural gas and natural gas liquids gathering, processing, and
60	53		storage, transmission and distribution systems, and water
61	54		pipelines and related support facilities, equipment, and property
62	55		that serve multiple persons, including buildings, offices,
63	56		structures, lines, poles, and pipes.
64	57		(3) "Declared state disaster or emergency" means a
65	58		disaster or emergency event that occurs in this state and:
66	59		(A) in response to which the governor issues an
67	60		executive order or proclamation declaring a state of disaster or a
68	61		state of emergency; or
69	62		(B) that the president of the United States
70	63		declares a major disaster or emergency.
71	64		(4) "Disaster- or emergency-related work" means
72	65		repairing, renovating, installing, building, rendering services,
73	66		or performing other business activities relating to the repair or
74	67		replacement of critical infrastructure that has been damaged,
75	68		impaired, or destroyed by a declared state disaster or emergency.
76	69		(5) "Disaster response period" means:
77	70		(A) the period that:
78	71		(i) begins on the 10th day before the date
79	72		of the earliest event establishing a declared state disaster or
80	73		emergency by the issuance of an executive order or proclamation by
81	74		the governor or a declaration of the president of the United States;
82	75		and
83	76		(ii) ends on the earlier of the 120th day
84	77		after the start date or the 60th day after the ending date of the
85	78		disaster or emergency period established by the executive order or
86	79		proclamation or declaration, or on a later date as determined by an
87	80		executive order or proclamation by the governor; or
88	81		(B) the period that, with respect to an
89	82		out-of-state business entity described by this paragraph:
90	83		(i) begins on the date that the
91	84		out-of-state business entity enters this state in good faith under
92	85		a mutual assistance agreement and in anticipation of a state
93	86		disaster or emergency, regardless of whether a state disaster or
94	87		emergency is actually declared; and
95	88		(ii) ends on the earlier of the date that
96	89		the work is concluded or the seventh day after the out-of-state
97	90		business entity enters this state.
98	91		(6) "In-state business entity" means a domestic entity
99	92		or foreign entity that is authorized to transact business in this
100	93		state immediately before a disaster response period.
101	94		(7) "Mutual assistance agreement" means an agreement
102	95		to which one or more business entities are parties and under which a
103	96		public utility, municipally owned utility, or joint agency owning,
104	97		operating, or owning and operating critical infrastructure used for
105	98		electric generation, transmission, or distribution in this state
106	99		may request that an out-of-state business entity perform work in
107	100		this state in anticipation of a state disaster or emergency.
108	101		(8) "Out-of-state business entity" means a foreign
109	102		entity that enters this state at the request of an in-state business
110	103		entity under a mutual assistance agreement or is an affiliate of an
111	104		in-state business entity and:
112	105		(A) that:
113	106		(i) except with respect to the performance
114	107		of disaster- or emergency-related work:
115	108		(a) has no physical presence in this
116	109		state and is not authorized to transact business in this state
117	110		immediately before a disaster response period; and
118	111		(b) is not registered with the
119	112		secretary of state to transact business in this state, does not file
120	113		a tax report with this state or a political subdivision of this
121	114		state, and does not have a nexus with this state for the purpose of
122	115		taxation during the tax year immediately preceding the disaster
123	116		response period; and
124	117		(ii) enters this state at the request of an
125	118		in-state business entity, the state, or a political subdivision of
126	119		this state to perform disaster- or emergency-related work in this
127	120		state during the disaster response period; or
128	121		(B) that performs work in this state under a
129	122		mutual assistance agreement.
130	123		(9) "Out-of-state employee" means an employee who
131	124		enters this state to perform disaster- or emergency-related work
132	125		during a disaster response period. The term does not include a
133	126		security guard or other employee whose primary function is to
134	127		provide security services or an employee whose primary function is
135	128		to install or repair heating or cooling equipment.
136	129		Sec. 112.004. EXEMPTION OF OUT-OF-STATE BUSINESS ENTITY
137	130		FROM CERTAIN OBLIGATIONS DURING DISASTER RESPONSE PERIOD.
138	131		Notwithstanding any other law and except as provided by Section
139	132		112.006, an out-of-state business entity whose transaction of
140	133		business in this state is limited to the performance of disaster- or
141	134		emergency-related work during a disaster response period is not
142	135		required to:
143	136		(1) register with the secretary of state;
144	137		(2) file a tax report with or pay taxes or fees to this
145	138		state or a political subdivision of this state;
146	139		(3) pay an ad valorem tax or use tax on equipment that
147	140		is brought into the state by the entity, used only by the entity to
148	141		perform disaster- or emergency-related work during the disaster
149	142		response period, and removed from the state by the entity following
150	143		the disaster response period;
151	144		(4) comply with state or local business licensing or
152	145		registration requirements; or
153	146		(5) comply with state or local occupational licensing
154	147		requirements or related fees.
155	148		Sec. 112.005. EXEMPTION OF OUT-OF-STATE EMPLOYEE FROM
156	149		CERTAIN OBLIGATIONS DURING DISASTER RESPONSE PERIOD.
157	150		Notwithstanding any other law and except as provided by Section
158	151		112.006, an out-of-state employee whose only employment in this
159	152		state is for the performance of disaster- or emergency-related work
160	153		during a disaster response period is not required to:
161	154		(1) file a tax report with or pay taxes or fees to this
162	155		state or a political subdivision of this state; or
163	156		(2) comply with state or local occupational licensing
164	157		requirements or related fees, if the employee is in substantial
165	158		compliance with applicable occupational licensing requirements in
166	159		the employee's state of residence or principal employment.
167	160		Sec. 112.006. TRANSACTION TAXES AND FEES. An out-of-state
168	161		business entity whose transaction of business in this state is
169	162		limited to the performance of disaster- or emergency-related work
170	163		during a disaster response period or an out-of-state employee whose
171	164		only employment in this state is for the performance of disaster- or
172	165		emergency-related work during a disaster response period is subject
173	166		to a transaction tax or fee, including a motor fuels tax, sales or
174	167		use tax, hotel occupancy tax, and the tax imposed on the rental of a
175	168		motor vehicle, that is imposed in this state, unless the entity or
176	169		employee is otherwise exempt from the tax or fee.
177	170		Sec. 112.007. NOTIFICATION PROCEDURES. (a) If requested
178	171		by the secretary of state, an out-of-state business entity shall
179	172		provide to the secretary of state a statement that the entity came
180	173		to this state for the purpose of performing disaster- or
181	174		emergency-related work during a disaster response period and that
182	175		includes:
183	176		(1) the entity's name;
184	177		(2) the entity's jurisdiction of formation;
185	178		(3) the address of the principal office of the entity;
186	179		(4) the entity's federal tax identification number;
187	180		(5) the date that the entity entered the state; and
188	181		(6) contact information for the entity.
189	182		(b) If requested by the secretary of state, an in-state
190	183		business entity shall provide to the secretary of state, along with
191	184		the in-state business entity's contact information, the
192	185		information listed in Subsection (a) for any affiliate of the
193	186		in-state business entity that entered the state as an out-of-state
194	187		business entity.
195	188		(c) The secretary of state shall keep records of and make
196	189		available to the public any statements or information provided to
197	190		the secretary of state under this section.
198	191		Sec. 112.008. OBLIGATIONS OF OUT-OF-STATE BUSINESS
199	192		ENTITIES AND EMPLOYEES AFTER DISASTER RESPONSE PERIOD. An
200	193		out-of-state business entity or out-of-state employee who remains
201	194		in this state after a disaster response period is not entitled to
202	195		any exemptions from obligations provided by this chapter.
203	196		Sec. 112.009. REGULATIONS. The secretary of state shall
204	197		adopt regulations, including developing any necessary forms or
205	198		processes, to implement this chapter.
206	199		SECTION 2. (a) Subchapter B, Chapter 151, Tax Code, is
207	200		amended by adding Section 151.0241 to read as follows:
208	201		Sec. 151.0241. PERSONS PERFORMING DISASTER- OR
209	202		EMERGENCY-RELATED WORK. (a) In this section, "disaster- or
210	203		emergency-related work," "disaster response period," and
211	204		"out-of-state business entity" have the meanings assigned by
212	205		Section 112.003, Business & Commerce Code.
213	206		(b) An out-of-state business entity is not engaged in
214	207		business in this state for purposes of Sections 151.107 and 151.403
215	208		or any other provision of this chapter applicable to a person
216	209		engaged in business in this state if the entity's physical presence
217	210		in this state is solely from the entity's performance of disaster-
218	211		or emergency-related work during a disaster response period.
219	212		(b) Section 151.0241, Tax Code, as added by this section,
220	213		does not affect tax liability accruing before the effective date of
221	214		this Act. That liability continues in effect as if this Act had not
222	215		been enacted, and the former law is continued in effect for the
223	216		collection of taxes due and for civil and criminal enforcement of
224	217		the liability for those taxes.
225	218		SECTION 3. This Act takes effect immediately if it receives
226	219		a vote of two-thirds of all the members elected to each house, as
227	220		provided by Section 39, Article III, Texas Constitution. If this
228	221		Act does not receive the vote necessary for immediate effect, this
229	222		Act takes effect September 1, 2015.
230		-	* * * * *
	223	+	______________________________ ______________________________
	224	+	President of the Senate Speaker of the House
	225	+	I certify that H.B. No. 2358 was passed by the House on May 4,
	226	+	2015, by the following vote: Yeas 141, Nays 0, 1 present, not
	227	+	voting.
	228	+	______________________________
	229	+	Chief Clerk of the House
	230	+	I certify that H.B. No. 2358 was passed by the Senate on May
	231	+	22, 2015, by the following vote: Yeas 31, Nays 0.
	232	+	______________________________
	233	+	Secretary of the Senate
	234	+	APPROVED: _____________________
	235	+	Date
	236	+	_____________________
	237	+	Governor