H.B. No. 2256
  relating to procedures for tax auditing, determining amounts of
  overpayments, and obtaining reimbursements of overpayments of gas
  production taxes.
         SECTION 1.   Subchapter E, Chapter 201, Tax Code, is amended
  by adding Section 201.207 to read as follows:
         Sec. 201.207.  DETERMINATION OF OVERPAID AMOUNTS.  (a) This
  section applies to the tax paid under this chapter by a person who
  filed a report under Section 201.203 or 201.2035 and remitted tax in
  error to this state.
         (b)  A person to whom this section applies may compute the
  amount of overpayment using a sampling of marketing cost
  transactions if the comptroller approves the sampling method.
         (c)  The person may obtain reimbursement for amounts
  determined to have been overpaid by taking a credit on one or more
  reports filed under Section 201.203 or 201.2035 or by filing a claim
  for refund with the comptroller within the limitation period
  specified by Section 111.107 and Subchapter D, Chapter 111.
         (d)  The person must record the method by which the
  computation of the overpayment is performed and must make available
  on request by the comptroller the records on which the computation
  is based.
         (e)  The comptroller may adopt rules specifying additional
  procedures that must be followed in connection with claiming a
  credit under this section.
         SECTION 2.   Subchapter G, Chapter 201, Tax Code, is amended
  by adding Section 201.3021 to read as follows:
         Sec. 201.3021.  MANAGED AUDITS.  (a) In this section,
  "managed audit" means a review and analysis of invoices, checks,
  accounting records, or other documents or information conducted by
  a taxpayer to determine a taxpayer's liability for tax under this
         (b)  The comptroller may, in a written agreement, authorize a
  taxpayer to conduct a managed audit under this section. The
  agreement must:
               (1)  be signed by an authorized representative of the
  comptroller and the taxpayer; and
               (2)  specify the period to be audited and the procedure
  to be followed.
         (c)  The decision to authorize or not authorize a managed
  audit rests solely with the comptroller.
         (d)  In determining whether to authorize a managed audit
  under this section, the comptroller may consider:
               (1)  the taxpayer's history of tax compliance;
               (2)  whether the taxpayer has sufficient time and
  resources to conduct the audit;
               (3)  the sufficiency and availability of the taxpayer's
  tax records;
               (4)  the taxpayer's ability to pay any liability
  arising as a result of the audit; and
               (5)  any other factor the comptroller determines is
         (e)  A managed audit may be limited to one or more factors
  affecting a taxpayer's liability for tax under this chapter,
               (1)  gross value of gas produced;
               (2)  exempt interest;
               (3)  marketing costs of gas produced;
               (4)  gas used to power operations at a well or lease; or
               (5)  tax reimbursement paid by a purchaser to a
         (f)  The comptroller may examine records and perform reviews
  that the comptroller determines are necessary before the audit is
  finalized to verify the results of the audit.
         (g)  Unless the audit or information reviewed by the
  comptroller under Subsection (f) discloses fraud or wilful evasion
  of the tax, the comptroller may not assess a penalty and may waive
  all or part of the interest that would otherwise accrue on any
  amount identified to be due in a managed audit. This subsection does
  not apply to any amount collected by the taxpayer that was a tax or
  represented to be a tax but that was not remitted to this state.
         (h)  Except as provided by Section 111.104(f), the taxpayer
  is entitled to a refund of any tax overpayment disclosed by a
  managed audit under this section.
         (i)  The comptroller may adopt rules and establish
  procedures to administer this section, including procedures that
  must be followed when conducting a managed audit under this
         SECTION 3.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 4.  This Act takes effect September 1, 2019.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 2256 was passed by the House on May 3,
  2019, by the following vote:  Yeas 140, Nays 0, 2 present, not
  Chief Clerk of the House   
         I certify that H.B. No. 2256 was passed by the Senate on May
  21, 2019, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
  APPROVED:  _____________________