1-1           By:  Moncrief                                    S.B. No. 461

 1-2           (In the Senate - Filed February 5, 1997; February 10, 1997,

 1-3     read first time and referred to Committee on State Affairs;

 1-4     February 17, 1997, reported favorably by the following vote:  Yeas

 1-5     9, Nays 3; February 17, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the authority of the comptroller of public accounts to

 1-9     contract for certain tax collection services.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subchapter A, Chapter 111, Tax Code, is amended

1-12     by adding Sections 111.0035 and 111.0036 to read as follows:

1-13           Sec. 111.0035.  ADVANCED DATABASE SYSTEM.  (a)  The

1-14     comptroller may contract with an appropriate vendor to develop and

1-15     implement an advanced database system to enhance tax collections.

1-16           (b)  A contract made under this section shall provide that

1-17     the vendor developing and implementing the system receive

1-18     compensation through a contingency fee determined from a percentage

1-19     of the revenue deposited into the state treasury from audit and

1-20     enforcement actions taken by the comptroller as a result of cases

1-21     identified from the vendor's system, not to exceed an amount stated

1-22     in the contract.

1-23           Sec. 111.0036.  OUT-OF-STATE AUDITS.  (a)  The comptroller

1-24     may contract with an appropriate person to perform tax audits in

1-25     states that are not covered by comptroller field offices.

1-26           (b)  A contract made under this section shall provide that

1-27     the person performing the audits receive compensation through a

1-28     contingency fee determined from a percentage of the revenue

1-29     deposited into the state treasury from the audits, not to exceed an

1-30     amount stated in the contract.

1-31           SECTION 2.  The importance of this legislation and the

1-32     crowded condition of the calendars in both houses create an

1-33     emergency and an imperative public necessity that the

1-34     constitutional rule requiring bills to be read on three several

1-35     days in each house be suspended, and this rule is hereby suspended,

1-36     and that this Act take effect and be in force from and after its

1-37     passage, and it is so enacted.

1-38                                  * * * * *