By: Moncrief, Truan, West S.B. No. 461
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the authority of the comptroller of public accounts to
1-2 contract for certain tax collection and tax audit services.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter A, Chapter 111, Tax Code, is amended
1-5 by adding Sections 111.0035 and 111.0036 to read as follows:
1-6 Sec. 111.0035. ADVANCED DATABASE SYSTEM. (a) The
1-7 comptroller may contract with an appropriate vendor to develop and
1-8 implement an advanced database system to enhance tax collections.
1-9 (b) Except as provided in Subsection (c), the total amount
1-10 of compensation paid to the vendor that develops, implements, and
1-11 maintains the advanced database system shall be equal to the
1-12 product of:
1-13 (1) the percentage stated in the contract between the
1-14 comptroller and the vendor; and
1-15 (2) the amount of revenue collected from audit and
1-16 enforcement actions taken by the comptroller as a result of cases
1-17 identified from the system.
1-18 (c) The amount of compensation paid to a vendor under
1-19 Subsection (b) may not exceed any maximum amount stated in the
1-20 contract between the comptroller and the vendor.
1-21 (d) The comptroller may pay compensation to a vendor under
1-22 this section periodically and at the times specified in the
1-23 contract between the comptroller and the vendor. The amount of a
2-1 periodic payment shall be determined in accordance with Subsection
2-2 (b), except that a case may be considered under Subsection (b)(2)
2-3 only if the case:
2-4 (1) becomes administratively final during the period
2-5 covered by the payment; and
2-6 (2) is not the subject of litigation at the end of
2-7 that period.
2-8 (e) A vendor may receive compensation under this section
2-9 only through warrants issued or electronic funds transfers
2-10 initiated by the comptroller. The compensation shall be accounted
2-11 for as a subtraction from tax collections and not as a general
2-12 expense of the comptroller.
2-13 (f) The initial term of the first contract made under this
2-14 section shall terminate not later than August 31, 1999. The
2-15 comptroller may extend the contract for one or more additional
2-16 terms beyond that date.
2-17 (g) Except as provided by Subsection (h), a contract made
2-18 under this section shall be awarded through a competitive bidding
2-19 process that complies with Section 2155.132, Government Code, and
2-20 Section 113.11, Title 1, Texas Administrative Code. In the event
2-21 three or less bids are received in the competitive bidding process,
2-22 the comptroller shall report the number of bidders to the
2-23 Legislative Budget Board prior to awarding the contract.
2-24 (h) The comptroller may enter into separate contracts with
2-25 additional appropriate vendors willing and able to develop and
3-1 implement an advanced database system to enhance tax collections at
3-2 the same rate and under the same terms and conditions as the
3-3 contract awarded for such services through the competitive bidding
3-4 process.
3-5 (i) Except as specifically provided in this section, the
3-6 comptroller may include any term or condition in a contract made
3-7 under this section that the comptroller considers necessary or
3-8 advisable to maximize enhancement of tax collections while
3-9 otherwise protecting the state's interests.
3-10 (j) The comptroller shall report semiannually to the
3-11 Legislative Budget Board the amount of revenue collected under this
3-12 section and the amount of compensation awarded to a vendor under
3-13 this section.
3-14 Sec. 111.0036. OUT-OF-STATE AUDITS. (a) The comptroller
3-15 may contract with one or more appropriate persons to perform tax
3-16 audits in any state that is not covered by a comptroller field
3-17 office. A contract may provide for a person to perform tax audits
3-18 in more than one state.
3-19 (b) Except as provided in Subsection (c), the amount of
3-20 compensation paid to a person performing tax audits under this
3-21 section shall be equal to the product of:
3-22 (1) the percentage stated in the contract; and
3-23 (2) the amount of revenue deposited into the state
3-24 treasury as a result of those audits.
3-25 (c) The amount of compensation paid to a person under
4-1 Subsection (b) may not exceed any maximum amount stated in the
4-2 contract between the comptroller and the person.
4-3 (d) The comptroller may pay compensation to a person under
4-4 this section periodically and at the times specified in the
4-5 contract between the comptroller and the person. The amount of a
4-6 periodic payment shall be determined in accordance with Subsection
4-7 (b), except that an audit may be considered under Subsection (b)(2)
4-8 only if the results of the audit:
4-9 (1) become administratively final during the period
4-10 covered by the payment; and
4-11 (2) are not the subject of litigation at the end of
4-12 that period.
4-13 (e) A person may receive compensation under this section
4-14 only through warrants issued or electronic funds transfers
4-15 initiated by the comptroller. The compensation shall be accounted
4-16 for as a subtraction from tax collections and not as a general
4-17 expense of the comptroller.
4-18 (f) The initial term of the first contract made under this
4-19 section shall terminate not later than August 31, 1999. The
4-20 comptroller may extend the contract for one or more additional
4-21 terms beyond that date.
4-22 (g) Except as provided by Subsection (h), a contract made
4-23 under this section shall be awarded through a competitive bidding
4-24 process that complies with Section 2155.132, Government Code, and
4-25 Section 113.11, Title 1, Texas Administrative Code. In the event
5-1 three or less bids are received in the competitive bidding process,
5-2 the comptroller shall report the number of bidders to the
5-3 Legislative Budget Board prior to awarding the contract.
5-4 (h) The comptroller may enter into separate contracts with
5-5 additional appropriate persons willing and able to perform tax
5-6 audits in states that are not covered by comptroller field offices
5-7 at the same rate and under the same terms and conditions as
5-8 provided in the contract awarded for such services through the
5-9 competitive bidding process.
5-10 (i) The comptroller shall report semiannually to the
5-11 Legislative Budget Board the amount of revenue collected under this
5-12 section and the amount of compensation awarded to a vendor under
5-13 this section.
5-14 SECTION 2. The revenue resulting from tax audits conducted
5-15 by any person with whom the comptroller of public accounts
5-16 contracts under Section 111.0036, Tax Code, as added by this Act,
5-17 is appropriated to the comptroller for the fiscal biennium ending
5-18 August 31, 1999. The comptroller may use this appropriation only
5-19 to pay contract expenses and the comptroller's direct
5-20 administrative costs associated with those contracts. If the
5-21 comptroller determines that the revenue appropriated to the
5-22 comptroller under this section exceeds the amount necessary to pay
5-23 those expenses and costs, then the comptroller shall transfer the
5-24 amount of the excess to the general revenue fund or any dedicated
5-25 or special funds to which the excess amount belongs. This section
6-1 expires September 1, 2001.
6-2 SECTION 3. The importance of this legislation and the
6-3 crowded condition of the calendars in both houses create an
6-4 emergency and an imperative public necessity that the
6-5 constitutional rule requiring bills to be read on three several
6-6 days in each house be suspended, and this rule is hereby suspended,
6-7 and that this Act take effect and be in force from and after its
6-8 passage, and it is so enacted.