75R11048 CBH-F
By Moncrief, et al. S.B. No. 461
Substitute the following for S.B. No. 461:
By Stiles C.S.S.B. No. 461
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of the comptroller to contract for
1-3 certain tax collection services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 111, Tax Code, is amended
1-6 by adding Sections 111.0035 and 111.0036 to read as follows:
1-7 Sec. 111.0035. ADVANCED DATABASE SYSTEM. (a) The
1-8 comptroller may contract with an appropriate vendor to develop and
1-9 implement an advanced database system to enhance tax collections.
1-10 (b) Subject to Subsection (c), the total amount of
1-11 compensation paid to the vendor that develops, implements, and
1-12 maintains the advanced database system is equal to the product of:
1-13 (1) the percentage stated in the contract; and
1-14 (2) the amount of revenue collected from taxpayers by
1-15 the comptroller, after all available administrative and judicial
1-16 appeals are exhausted, as a result of audit and enforcement actions
1-17 taken on cases identified from the system.
1-18 (c) The amount of compensation paid to a vendor under
1-19 Subsection (b) may not exceed the maximum amount, if any, stated
1-20 in the contract between the comptroller and the vendor.
1-21 (d) The comptroller may pay compensation to a vendor under
1-22 this section periodically at the times specified in the contract
1-23 between the comptroller and the vendor. The comptroller shall
1-24 determine the amount of a periodic payment in accordance with
2-1 Subsections (b) and (c). In computing the amount under Subsection
2-2 (b)(2), the comptroller may include a case only if the case:
2-3 (1) becomes administratively final during the period
2-4 covered by the payment; and
2-5 (2) is not the subject of litigation at the end of
2-6 that period.
2-7 (e) The comptroller may pay a vendor under this section only
2-8 through warrants issued or electronic funds transfers initiated by
2-9 the comptroller. The comptroller shall account for the
2-10 compensation as a subtraction from tax collections and not as a
2-11 general expense of the comptroller.
2-12 (f) Except as provided by Subsection (g), the comptroller
2-13 shall award a contract made under this section through a
2-14 competitive bidding process that complies with Section 2155.132,
2-15 Government Code, and the rules adopted by the General Services
2-16 Commission relating to delegated purchases. If the comptroller
2-17 receives not more than three bids through the competitive bidding
2-18 process, the comptroller shall report the number of bidders to the
2-19 Legislative Budget Board before awarding the contract.
2-20 (g) The comptroller may enter into separate contracts with
2-21 additional appropriate vendors willing and able to develop and
2-22 implement an advanced database system to enhance tax collections at
2-23 the same rate and under the same terms and conditions as the
2-24 contract awarded through competitive bidding.
2-25 (h) Except as specifically provided by this section, the
2-26 comptroller may include any term or condition in a contract made
2-27 under this section that the comptroller considers necessary or
3-1 advisable to maximize enhancement of tax collections while
3-2 otherwise protecting the state's interests.
3-3 (i) The comptroller shall report semiannually to the
3-4 Legislative Budget Board the:
3-5 (1) amount of revenue collected under this section;
3-6 and
3-7 (2) amount of compensation awarded to a vendor under
3-8 this section.
3-9 (j) A person acting on behalf of this state under a contract
3-10 authorized by this section does not exercise any of the sovereign
3-11 power of this state, except that the person is an agent of this
3-12 state for purposes of developing and implementing an advanced
3-13 database system to enhance tax collections.
3-14 (k) The comptroller may provide to a person acting on behalf
3-15 of this state under a contract authorized by this section any
3-16 confidential information in the custody of the comptroller that is
3-17 necessary to develop and implement an advanced database system to
3-18 enhance tax collections and that the comptroller is not prohibited
3-19 from sharing under an agreement with another state or the federal
3-20 government. A person who receives confidential information under
3-21 this subsection and each employee or agent of that person is
3-22 subject to each prohibition against disclosure of the information
3-23 that applies to the comptroller or an employee of the comptroller.
3-24 A person, employee, or agent who receives confidential information
3-25 under this subsection and improperly discloses that information is
3-26 subject to the same penalties and sanctions that would apply to the
3-27 comptroller or an employee of the comptroller for that disclosure.
4-1 Sec. 111.0036. OUT-OF-STATE AUDITS. (a) The comptroller
4-2 may contract with one or more appropriate persons to perform tax
4-3 audits in any state that is not covered by a comptroller field
4-4 office. A contract may provide for a person to perform tax audits
4-5 in more than one state.
4-6 (b) Subject to Subsection (c), the amount of compensation
4-7 paid to a person performing tax audits under this section is equal
4-8 to the product of:
4-9 (1) the percentage stated in the contract between the
4-10 comptroller and the person; and
4-11 (2) the amount of revenue collected from taxpayers by
4-12 the comptroller, after all available administrative and judicial
4-13 appeals are exhausted, as a result of those audits.
4-14 (c) The maximum percentage rate stated in a contract may not
4-15 exceed 12 percent. In addition, the amount of compensation paid to
4-16 a person under Subsection (b) may not exceed the maximum amount, if
4-17 any, stated in the contract between the comptroller and the person.
4-18 (d) The comptroller may pay compensation to a person under
4-19 this section periodically at the times specified in the contract
4-20 between the comptroller and the person. The comptroller shall
4-21 determine the amount of a periodic payment in accordance with
4-22 Subsections (b) and (c). In computing the amount under Subsection
4-23 (b)(2), the comptroller may include a case only if the case:
4-24 (1) becomes administratively final during the period
4-25 covered by the payment; and
4-26 (2) is not the subject of litigation at the end of
4-27 that period.
5-1 (e) The comptroller may pay a person under this section only
5-2 through warrants issued or electronic funds transfers initiated by
5-3 the comptroller. The comptroller shall account for the
5-4 compensation as a subtraction from tax collections and not as a
5-5 general expense of the comptroller.
5-6 (f) Except as provided by Subsection (g), the comptroller
5-7 shall award a contract made under this section through a
5-8 competitive bidding process that complies with Section 2155.132,
5-9 Government Code, and the rules adopted by the General Services
5-10 Commission relating to delegated purchases. If the comptroller
5-11 receives not more than three bids through the competitive bidding
5-12 process, the comptroller shall report the number of bidders to the
5-13 Legislative Budget Board before awarding the contract.
5-14 (g) The comptroller may enter into separate contracts with
5-15 additional appropriate persons willing and able to perform tax
5-16 audits in other states that are not covered by comptroller field
5-17 offices at the same rate and under the same terms and conditions as
5-18 the contract awarded through competitive bidding.
5-19 (h) The comptroller shall report semiannually to the
5-20 Legislative Budget Board the:
5-21 (1) amount of revenue collected under this section;
5-22 and
5-23 (2) amount of compensation awarded to a person with
5-24 whom the comptroller contracts under this section.
5-25 (i) A person acting on behalf of this state under a contract
5-26 authorized by this section does not exercise any of the sovereign
5-27 power of this state, except that the person is an agent of this
6-1 state for purposes of performing tax audits.
6-2 (j) The comptroller may provide to a person acting on behalf
6-3 of this state under a contract authorized by this section any
6-4 confidential information in the custody of the comptroller relating
6-5 to a taxpayer that is necessary to the audit of the taxpayer and
6-6 that the comptroller is not prohibited from sharing under an
6-7 agreement with another state or the federal government. A person
6-8 who receives confidential information under this subsection and
6-9 each employee or agent of that person are subject to each
6-10 prohibition against disclosure of confidential information obtained
6-11 from a taxpayer or this state in connection with a tax audit that
6-12 applies to the comptroller or an employee of the comptroller. A
6-13 person, employee, or agent who receives confidential information
6-14 under this subsection and improperly discloses that information is
6-15 subject to the same penalties and sanctions that would apply to the
6-16 comptroller or an employee of the comptroller for that disclosure.
6-17 SECTION 2. An initial contract made under Section 111.0035
6-18 or 111.0036, Tax Code, as added by this Act, shall terminate not
6-19 later than August 31, 1999. The comptroller may extend an initial
6-20 contract for one or more additional terms beyond that date.
6-21 SECTION 3. The revenue resulting from tax audits conducted
6-22 by any person with whom the comptroller contracts under Section
6-23 111.0036, Tax Code, as added by this Act, is appropriated to the
6-24 comptroller for the fiscal biennium ending August 31, 1999. The
6-25 comptroller may use this revenue only to pay contract expenses and
6-26 the comptroller's direct administrative costs associated with those
6-27 contracts. If the comptroller determines that the revenue
7-1 appropriated to the comptroller under this section exceeds the
7-2 amount necessary to pay those expenses and costs, the comptroller
7-3 shall transfer the amount of the excess to the general revenue fund
7-4 or any dedicated or special funds to which the excess amount
7-5 belongs.
7-6 SECTION 4. The importance of this legislation and the
7-7 crowded condition of the calendars in both houses create an
7-8 emergency and an imperative public necessity that the
7-9 constitutional rule requiring bills to be read on three several
7-10 days in each house be suspended, and this rule is hereby suspended.