By McCall                                             H.B. No. 3218
         76R5463 JRD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the disclosure of certain information maintained or
 1-3     obtained by the comptroller of public accounts of the State of
 1-4     Texas or the attorney general.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 2101.037, Government Code, is amended by
 1-7     adding Subsection (c) to read as follows:
 1-8           (c)  It is an affirmative defense to prosecution under
 1-9     Section 552.352(a) or 552.353(a) that the comptroller, the project
1-10     director, another officer or employee of the comptroller, or an
1-11     independent contractor of the comptroller acted in reliance on:
1-12                 (1)  a determination made by a state agency about the
1-13     confidentiality of information supplied by the agency to the
1-14     project director under Subsection (b); or
1-15                 (2)  a written interpretation of Chapter 552 contained
1-16     in an opinion of the attorney general issued under Subchapter G of
1-17     that chapter.
1-18           SECTION 2.  Section 111.006, Tax Code, is amended by amending
1-19     Subsection (a) and adding Subsections (f) and (g) to read as
1-20     follows:
1-21           (a)  The following matter is confidential and may not be used
1-22     publicly, opened to public inspection, or disclosed except as
1-23     permitted by this section [under Subsection (b), (d), or (e)]:
1-24                 (1)  a federal tax return or federal tax return
 2-1     information required to have been submitted to the comptroller with
 2-2     a state tax return or report; and
 2-3                 (2)  all information secured, derived, or obtained by
 2-4     the comptroller or the attorney general during the course of an
 2-5     examination of the taxpayer's books, records, papers, officers, or
 2-6     employees, including an examination of the business affairs,
 2-7     operations, source of income, profits, losses, or expenditures of
 2-8     the taxpayer.
 2-9           (f)  Subsection (a)(2) does not apply to information obtained
2-10     by the comptroller or the attorney general during an examination of
2-11     a governmental body, as that term is defined by Section 552.003,
2-12     Government Code.
2-13           (g)  Information made confidential by Subsection (a)(2) that
2-14     relates to a taxpayer's responsibilities under Chapter 153 may be
2-15     examined by an official of another state or of the United States
2-16     if:
2-17                 (1)  the official has information that would assist the
2-18     comptroller in administering Chapter 153;
2-19                 (2)  the comptroller is conducting or may conduct an
2-20     examination or a criminal investigation of the taxpayer that is the
2-21     subject of the information made confidential by Subsection (a)(2);
2-22     and
2-23                 (3)  a reciprocal agreement exists allowing the
2-24     comptroller to examine information under the control of the
2-25     official in a manner substantially equivalent to the official's
2-26     access to information under this subsection.
2-27           SECTION 3.  Section 151.027(c), Tax Code, is amended to read
 3-1     as follows:
 3-2           (c)  This section does not prohibit:
 3-3                 (1)  the examination of information, if authorized by
 3-4     the comptroller, by another state officer or law enforcement
 3-5     officer, by a tax official of another state, by a tax official of
 3-6     the United Mexican States, or by an official of the United States
 3-7     if a reciprocal agreement exists;
 3-8                 (2)  the delivery to a taxpayer, or a taxpayer's
 3-9     authorized representative, of a copy of a report or other paper
3-10     filed by the taxpayer under this chapter;
3-11                 (3)  the publication of statistics classified to
3-12     prevent the identification of a particular report or items in a
3-13     particular report;
3-14                 (4)  the use of records, reports, or information
3-15     secured, derived, or obtained by the attorney general or the
3-16     comptroller in an action under this chapter against the same
3-17     taxpayer who furnished the information;
3-18                 (5)  the delivery to a successor, receiver, executor,
3-19     administrator, assignee, or guarantor of a taxpayer of information
3-20     about items included in the measure and amounts of any unpaid tax
3-21     or amounts of tax, penalties, and interest required to be
3-22     collected; [or]
3-23                 (6)  the delivery of information to an eligible
3-24     municipality in accordance with Section 321.3022; or
3-25                 (7)  the release of information in or derived from a
3-26     record, report, or other instrument required to be furnished under
3-27     this chapter by a governmental body, as that term is defined by
 4-1     Section 552.003, Government Code.
 4-2           SECTION 4.  This Act takes effect September 1, 1999.
 4-3           SECTION 5.  The importance of this legislation and the
 4-4     crowded condition of the calendars in both houses create an
 4-5     emergency and an imperative public necessity that the
 4-6     constitutional rule requiring bills to be read on three several
 4-7     days in each house be suspended, and this rule is hereby suspended.