By:  Shapiro                                          S.B. No. 1492
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the confidentiality of information derived from an
    1-2  audit to ascertain compliance with the payment of the hotel
    1-3  occupancy tax.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 111.006, Tax Code, is amended by amending
    1-6  Subsection (a) and by adding Subsection (d) to read as follows:
    1-7        (a)  The following matter is confidential and may not be used
    1-8  publicly, opened to public inspection, or disclosed except as
    1-9  permitted under Subsection (b) or (d) <of this section>:
   1-10              (1)  a federal tax return or federal tax return
   1-11  information required to have been submitted to the comptroller with
   1-12  a state tax return or report; and
   1-13              (2)  all information secured, derived, or obtained by
   1-14  the comptroller or the attorney general during the course of an
   1-15  examination of the taxpayer's books, records, papers, officers, or
   1-16  employees, including an examination of the business affairs,
   1-17  operations, source of income, profits, losses, or expenditures of
   1-18  the taxpayer.
   1-19        (d)  The comptroller or the attorney general may disclose to
   1-20  a municipality or county the information described by Subsection
   1-21  (a)(2) if:
   1-22              (1)  the information was derived from an examination
   1-23  performed for the purpose of ascertaining compliance with the hotel
   1-24  occupancy tax imposed under Chapter 156;
    2-1              (2)  the municipality or county makes a written request
    2-2  for the information;
    2-3              (3)  the municipality or county making the request has
    2-4  imposed a local hotel occupancy tax authorized by Chapter 351 or
    2-5  352, as applicable;
    2-6              (4)  the municipality or county uses the information
    2-7  only for the enforcement or administration of its local hotel
    2-8  occupancy tax; and
    2-9              (5)  to the extent consistent with the use authorized
   2-10  by Subdivision (4), the municipality or county keeps the
   2-11  information confidential as provided by this section.
   2-12        SECTION 2.  This Act takes effect September 1, 1995.
   2-13        SECTION 3.  The importance of this legislation and the
   2-14  crowded condition of the calendars in both houses create an
   2-15  emergency and an imperative public necessity that the
   2-16  constitutional rule requiring bills to be read on three several
   2-17  days in each house be suspended, and this rule is hereby suspended.