By:  Ellis                                            S.B. No. 1037
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to authorizing the comptroller to establish a program to
 1-3     permit certain certified public accountants to perform certain
 1-4     audits.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter B, Chapter 151, Tax Code, is amended
 1-7     by adding Section 151.0232 to read as follows:
 1-8           Sec. 151.0232.  CPA AUDIT PROGRAM.  (a)  The comptroller by
 1-9     rule may establish a program in which a taxpayer may hire a
1-10     certified public accountant who is not employed by the comptroller
1-11     to perform an audit to determine a taxpayer's liability for a tax
1-12     imposed under this chapter.
1-13           (b)  A program established under Subsection (a) must include:
1-14                 (1)  eligibility requirements for taxpayer
1-15     participation;
1-16                 (2)  training requirements and qualifications for a
1-17     certified public accountant who is hired to perform an audit under
1-18     the program; and
1-19                 (3)  safeguards to protect the confidentiality of
1-20     information used in connection with the audit.
1-21           (c)  The comptroller may waive a penalty or all or part of
1-22     the accrued interest on an amount identified to be due as a result
1-23     of an audit performed under Subsection (a).
1-24           SECTION 2.  This Act takes effect immediately if it receives
1-25     a vote of two-thirds of all the members elected to each house, as
 2-1     provided by Section 39, Article III, Texas Constitution.  If this
 2-2     Act does not receive the vote necessary for immediate effect, this
 2-3     Act takes effect September 1, 2001.