SRC-TNM S.B. 461 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 461
By: Moncrief
State Affairs
2-12-97
As Filed


DIGEST 

Currently, the Office of Comptroller of Public Accounts, as the state's
primary tax collector, operates an extensive and modern tax enforcement
system.  Included in that system are 17 field offices in Texas and offices
in New York, Los Angeles, Chicago, and Tulsa.  The Comptroller's Office
also maintains 34 enforcement field offices in the state, including seven
taxpayer offices.  In addition to its field staff, the Comptroller's
Office uses sophisticated technology and statistical techniques such as
sampling and regression analysis to help auditors recover tax revenue
legally due to the state. 

Although the Enforcement and Audit Divisions produce significant revenue,
the state's increasingly diversified and complex economy necessitates
efficient levels of technology and database audit techniques.  Advanced
database and neural-network technologies have been efficient in both the
public and private sectors in areas ranging from credit card fraud to
national defense.  The goal of S.B. 461 is to supplement existing audit
and enforcement techniques within state government with more efficient
technology. 

PURPOSE

As proposed, S.B. 461 outlines provisions regarding the comptroller's
authority to contract for certain tax collection services. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 111A, Tax Code, by adding Sections 111.0035 and
111.0036, as follows: 

Sec. 111.0035. ADVANCED DATABASE SYSTEM. Authorizes the comptroller to
contract with a vendor to develop and implement a database system to
enhance tax collections. Requires a contract made under this section to
provide that the vendor developing and implementing the system receive
compensation through a contingency fee determined from a percentage of the
revenue deposited into the state treasury from audit and enforcement
actions taken by the comptroller as a result of cases identified from the
vendor's system, not to exceed an amount stated in the contract. 

Sec. 111.0036. OUT-OF-STATE AUDITS.  Authorizes the comptroller to
contract with an appropriate person to perform tax audits in states that
are not covered by comptroller field offices.  Requires a contract made
under this section to provide that the person performing the audits
receive compensation through a contingency fee determined from a
percentage of the revenue deposited into the state treasury from the
audits, not to exceed an amount stated in the contract.  

SECTION 2. Emergency clause.
  Effective date: upon passage.