By Carona                                              S.B. No. 613
         Substitute the following for S.B. No. 613:
         By McCall                                          C.S.S.B. No. 613
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the disclosure of certain records maintained or
 1-3     obtained by the comptroller of public accounts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 2101.037, Government Code, is amended by
 1-6     adding Subsection (c) to read as follows:
 1-7           (c)  It is an affirmative defense to prosecution under
 1-8     Section 552.352(a) that the comptroller, the project director, or
 1-9     another officer or employee of the comptroller acted in reliance on
1-10     a determination made by a state agency about the confidentiality of
1-11     information supplied by the agency to the project director under
1-12     Subsection (b).
1-13           SECTION 2.  Section 111.006, Tax Code, is amended by amending
1-14     Subsection (a) and adding Subsections (f) and (g) to read as
1-15     follows:
1-16           (a)  The following matter is confidential and may not be used
1-17     publicly, opened to public inspection, or disclosed except as
1-18     permitted by this section [under Subsection (b), (d), or (e)]:
1-19                 (1)  a federal tax return or federal tax return
1-20     information required to have been submitted to the comptroller with
1-21     a state tax return or report; and
1-22                 (2)  all information secured, derived, or obtained by
1-23     the comptroller or the attorney general during the course of an
1-24     examination of the taxpayer's books, records, papers, officers, or
 2-1     employees, including an examination of the business affairs,
 2-2     operations, source of income, profits, losses, or expenditures of
 2-3     the taxpayer.
 2-4           (f)  Subsection (a)(2) does not apply to information obtained
 2-5     by the comptroller or the attorney general during an examination of
 2-6     a governmental body, as that term is defined in Section 552.003,
 2-7     Government Code. However, information obtained by the comptroller
 2-8     or the attorney general during an examination of the governmental
 2-9     body that is confidential under law when in the possession of the
2-10     governmental body remains confidential while in the possession of
2-11     the comptroller or the attorney general.
2-12           (g)  Information made confidential by Subsection (a)(2) that
2-13     relates to a taxpayer's responsibilities under Chapter 153 may be
2-14     examined by an official of another state or of the United States
2-15     if:
2-16                 (1)  the official has information that would assist the
2-17     comptroller in administering Chapter 153;
2-18                 (2)  the comptroller is conducting or may conduct an
2-19     examination or a criminal investigation of the taxpayer that is the
2-20     subject of the information made confidential by Subsection (a)(2);
2-21     and
2-22                 (3)  a reciprocal agreement exists allowing the
2-23     comptroller to examine information under the control of the
2-24     official in a manner substantially equivalent to the official's
2-25     access to information under this subsection.
2-26           SECTION 3.  Subsection (c), Section 151.027, Tax Code, is
2-27     amended to read as follows:
 3-1           (c)  This section does not prohibit:
 3-2                 (1)  the examination of information, if authorized by
 3-3     the comptroller, by another state officer or law enforcement
 3-4     officer, by a tax official of another state, by a tax official of
 3-5     the United Mexican States, or by an official of the United States
 3-6     if a reciprocal agreement exists;
 3-7                 (2)  the delivery to a taxpayer, or a taxpayer's
 3-8     authorized representative, of a copy of a report or other paper
 3-9     filed by the taxpayer under this chapter;
3-10                 (3)  the publication of statistics classified to
3-11     prevent the identification of a particular report or items in a
3-12     particular report;
3-13                 (4)  the use of records, reports, or information
3-14     secured, derived, or obtained by the attorney general or the
3-15     comptroller in an action under this chapter against the same
3-16     taxpayer who furnished the information;
3-17                 (5)  the delivery to a successor, receiver, executor,
3-18     administrator, assignee, or guarantor of a taxpayer of information
3-19     about items included in the measure and amounts of any unpaid tax
3-20     or amounts of tax, penalties, and interest required to be
3-21     collected; [or]
3-22                 (6)  the delivery of information to an eligible
3-23     municipality in accordance with Section 321.3022; or
3-24                 (7)  the release of information in or derived from a
3-25     record, report, or other instrument required to be furnished under
3-26     this chapter by a governmental body, as that term is defined in
3-27     Section 552.003, Government Code.
 4-1           SECTION 4.  This Act takes effect September 1, 1999.
 4-2           SECTION 5.  The importance of this legislation and the
 4-3     crowded condition of the calendars in both houses create an
 4-4     emergency and an imperative public necessity that the
 4-5     constitutional rule requiring bills to be read on three several
 4-6     days in each house be suspended, and this rule is hereby suspended.