1-1     By:  Carona                                            S.B. No. 613
 1-2           (In the Senate - Filed February 19, 1999; February 22, 1999,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     March 8, 1999, reported favorably, as amended, by the following
 1-5     vote:  Yeas 7, Nays 0; March 8, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                                 By:  Cain
 1-7     Amend S.B. No. 613 as follows:
 1-8           SECTION 1.  Section 2101.037, Government Code, is amended by
 1-9     adding Subsection (c) to read as follows:
1-10           (c)  It is an affirmative defense to prosecution under
1-11     Section 552.352(a) that the comptroller, the project director,
1-12     another officer or employee of the comptroller, or an independent
1-13     contractor of the comptroller acted in reliance upon a
1-14     determination made by a state agency about the confidentiality of
1-15     information supplied by the agency to the project director under
1-16     Subsection (b).
1-17                            A BILL TO BE ENTITLED
1-18                                   AN ACT
1-19     relating to the disclosure of certain records maintained or
1-20     obtained by the comptroller of public accounts of the State of
1-21     Texas.
1-22           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-23           SECTION 1.  Section 2101.037, Government Code, is amended by
1-24     adding Subsection (c) to read as follows:
1-25           (c)  It is an affirmative defense to prosecution under
1-26     Section 552.352(a) or 552.353(a) that the comptroller, the project
1-27     director, another officer or employee of the comptroller, or an
1-28     independent contractor of the comptroller acted in reliance upon:
1-29                 (1)  a determination made by a state agency about the
1-30     confidentiality of information supplied by the agency to the
1-31     project director under Subsection (b); or
1-32                 (2)  a written interpretation of Chapter 552 contained
1-33     in an opinion of the attorney general issued under Subchapter G of
1-34     that chapter.
1-35           SECTION 2.  Section 111.006, Tax Code, is amended by amending
1-36     Subsection (a) and adding Subsections (f) and (g) to read as
1-37     follows:
1-38           (a)  The following matter is confidential and may not be used
1-39     publicly, opened to public inspection, or disclosed except as
1-40     permitted by this section [under Subsection (b), (d), or (e)]:
1-41                 (1)  a federal tax return or federal tax return
1-42     information required to have been submitted to the comptroller with
1-43     a state tax return or report; and
1-44                 (2)  all information secured, derived, or obtained by
1-45     the comptroller or the attorney general during the course of an
1-46     examination of the taxpayer's books, records, papers, officers, or
1-47     employees, including an examination of the business affairs,
1-48     operations, source of income, profits, losses, or expenditures of
1-49     the taxpayer.
1-50           (f)  Subsection (a)(2) does not apply to information obtained
1-51     by the comptroller or the attorney general during an examination of
1-52     a governmental body, as that term is defined in Section 552.003,
1-53     Government Code.
1-54           (g)  Information made confidential by Subsection (a)(2) that
1-55     relates to a taxpayer's responsibilities under Chapter 153 may be
1-56     examined by an official of another state or of the United States
1-57     if:
1-58                 (1)  the official has information that would assist the
1-59     comptroller in administering Chapter 153;
1-60                 (2)  the comptroller is conducting or may conduct an
1-61     examination or a criminal investigation of the taxpayer that is the
1-62     subject of the information made confidential by Subsection (a)(2);
1-63     and
 2-1                 (3)  a reciprocal agreement exists allowing the
 2-2     comptroller to examine information under the control of the
 2-3     official in a manner substantially equivalent to the official's
 2-4     access to information under this subsection.
 2-5           SECTION 3.  Subsection (c), Section 151.027, Tax Code, is
 2-6     amended to read as follows:
 2-7           (c)  This section does not prohibit:
 2-8                 (1)  the examination of information, if authorized by
 2-9     the comptroller, by another state officer or law enforcement
2-10     officer, by a tax official of another state, by a tax official of
2-11     the United Mexican States, or by an official of the United States
2-12     if a reciprocal agreement exists;
2-13                 (2)  the delivery to a taxpayer, or a taxpayer's
2-14     authorized representative, of a copy of a report or other paper
2-15     filed by the taxpayer under this chapter;
2-16                 (3)  the publication of statistics classified to
2-17     prevent the identification of a particular report or items in a
2-18     particular report;
2-19                 (4)  the use of records, reports, or information
2-20     secured, derived, or obtained by the attorney general or the
2-21     comptroller in an action under this chapter against the same
2-22     taxpayer who furnished the information;
2-23                 (5)  the delivery to a successor, receiver, executor,
2-24     administrator, assignee, or guarantor of a taxpayer of information
2-25     about items included in the measure and amounts of any unpaid tax
2-26     or amounts of tax, penalties, and interest required to be
2-27     collected; [or]
2-28                 (6)  the delivery of information to an eligible
2-29     municipality in accordance with Section 321.3022; or
2-30                 (7)  the release of information in or derived from a
2-31     record, report, or other instrument required to be furnished under
2-32     this chapter by a governmental body, as that term is defined in
2-33     Section 552.003, Government Code.
2-34           SECTION 4.  This Act takes effect September 1, 1999.
2-35           SECTION 5.  The importance of this legislation and the
2-36     crowded condition of the calendars in both houses create an
2-37     emergency and an imperative public necessity that the
2-38     constitutional rule requiring bills to be read on three several
2-39     days in each house be suspended, and this rule is hereby suspended.
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