Amend SB 461 by striking all below the enacting clause and
substituting in lieu thereof the following:
      SECTION 1.  Subchapter A, Chapter 111, Tax Code, is amended
by adding Sections 111.0035 and 111.0036 to read as follows:
      Sec. 111.0035.  ADVANCED DATABASE SYSTEM.  (a)  The
comptroller may contract with an appropriate vendor to develop and
implement an advanced database system to enhance tax collections.
      (b)  Except as provided in Subsection (c), the total amount
of compensation paid to the vendor that develops, implements, and
maintains the advanced database system shall be equal to the
product of:
            (1)  the percentage stated in the contract between the
comptroller and the vendor; and
            (2)  the amount of revenue collected from audit and
enforcement actions taken by the comptroller as a result of cases
identified from the system.
      (c)  The amount of compensation paid to a vendor under
Subsection (b) may not exceed any maximum amount stated in the
contract between the comptroller and the vendor.
      (d)  The comptroller may pay compensation to a vendor under
this section periodically and at the times specified in the
contract between the comptroller and the vendor.  The amount of a
periodic payment shall be determined in accordance with Subsection
(b), except that a case may be considered under Subsection (b)(2)
only if the case:
            (1)  becomes administratively final during the period
covered by the payment; and
            (2)  is not the subject of litigation at the end of
that period.
      (e)  A vendor may receive compensation under this section
only through warrants issued or electronic funds transfers
initiated by the comptroller. The compensation shall be accounted
for as a subtraction from tax collections and not as a general
expense of the comptroller.
      (f)  The initial term of the first contract made under this
section shall terminate not later than August 31, 1999.  The
comptroller may extend the contract for one or more additional
terms beyond that date.
      (g)  Except as provided by Subsection (h), a contract made
under this section shall be awarded through a competitive bidding
process that complies with Section 2155.132, Government Code, and
Section 113.11, Title 1, Texas Administrative Code.
      (h)  The comptroller may enter into separate contracts with
additional appropriate vendors willing and able to develop and
implement an advanced database system to enhance tax collections at
the same rate and under the same terms and conditions as the
contract awarded for such services through the competitive bidding
process.
      (i)  Except as specifically provided in this section, the
comptroller may include any term or condition in a contract made
under this section that the comptroller considers necessary or
advisable to maximize enhancement of tax collections while
otherwise protecting the state's interests.
      Sec. 111.0036.  OUT-OF-STATE AUDITS.  (a)  The comptroller
may contract with one or more appropriate persons to perform tax
audits in any state that is not covered by a comptroller field
office.  A contract may provide for a person to perform tax audits
in more than one state.
      (b)  Except as provided in Subsection (c), the amount of
compensation paid to a person performing tax audits under this
section shall be equal to the product of:
            (1)  the percentage stated in the contract; and
            (2)  the amount of revenue deposited into the state
treasury as a result of those audits.
      (c)  The amount of compensation paid to a person under
Subsection (b) may not exceed any maximum amount stated in the
contract between the comptroller and the person.
      (d)  The comptroller may pay compensation to a person under
this section periodically and at the times specified in the
contract between the comptroller and the person.  The amount of a
periodic payment shall be determined in accordance with Subsection
(b), except that an audit may be considered under Subsection (b)(2)
only if the results of the audit:
            (1)  become administratively final during the period
covered by the payment; and
            (2)  are not the subject of litigation at the end of
that period.
      (e)  A person may receive compensation under this section
only through warrants issued or electronic funds transfers
initiated by the comptroller. The compensation shall be accounted
for as a subtraction from tax collections and not as a general
expense of the comptroller.
      (f)  The initial term of the first contract made under this
section shall terminate not later than August 31, 1999.  The
comptroller may extend the contract for one or more additional
terms beyond that date.
      (g)  Except as provided by Subsection (h), a contract made
under this section shall be awarded through a competitive bidding
process that complies with Section 2155.132, Government Code, and
Section 113.11, Title 1, Texas Administrative Code.
      (h)  The comptroller may enter into separate contracts with
additional appropriate persons willing and able to perform tax
audits in states that are not covered by comptroller field offices
at the same rate and under the same terms and conditions as
provided in the contract awarded for such services through the
competitive bidding process.
      SECTION 2.  The revenue resulting from tax audits conducted
by any person with whom the comptroller of public accounts
contracts under Section 111.0036, Tax Code, as added by this Act,
is appropriated to the comptroller for the fiscal biennium ending
August 31, 1999.  The comptroller may use this appropriation only
to pay contract expenses and the comptroller's direct
administrative costs associated with those contracts.  If the
comptroller determines that the revenue appropriated to the
comptroller under this section exceeds the amount necessary to pay
those expenses and costs, then the comptroller shall transfer the
amount of the excess to the general revenue fund or any dedicated
or special funds to which the excess amount belongs.  This section
expires September 1, 2001.
      SECTION 3.  The importance of this legislation and the
crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended,
and that this Act take effect and be in force from and after its
passage, and it is so enacted.