1-1     By:  Ellis                                            S.B. No. 1037
 1-2           (In the Senate - Filed March 1, 2001; March 5, 2001, read
 1-3     first time and referred to Committee on Finance; March 19, 2001,
 1-4     reported favorably by the following vote:  Yeas 13, Nays 0;
 1-5     March 19, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to authorizing the comptroller to establish a program to
 1-9     permit certain certified public accountants to perform certain
1-10     audits.
1-12           SECTION 1.  Subchapter B, Chapter 151, Tax Code, is amended
1-13     by adding Section 151.0232 to read as follows:
1-14           Sec. 151.0232.  CPA AUDIT PROGRAM.  (a)  The comptroller by
1-15     rule may establish a program in which a taxpayer may hire a
1-16     certified public accountant who is not employed by the comptroller
1-17     to perform an audit to determine a taxpayer's liability for a tax
1-18     imposed under this chapter.
1-19           (b)  A program established under Subsection (a) must include:
1-20                 (1)  eligibility requirements for taxpayer
1-21     participation;
1-22                 (2)  training requirements and qualifications for a
1-23     certified public accountant who is hired to perform an audit under
1-24     the program; and
1-25                 (3)  safeguards to protect the confidentiality of
1-26     information used in connection with the audit.
1-27           (c)  The comptroller may waive a penalty or all or part of
1-28     the accrued interest on an amount identified to be due as a result
1-29     of an audit performed under Subsection (a).
1-30           SECTION 2.  This Act takes effect immediately if it receives
1-31     a vote of two-thirds of all the members elected to each house, as
1-32     provided by Section 39, Article III, Texas Constitution.  If this
1-33     Act does not receive the vote necessary for immediate effect, this
1-34     Act takes effect September 1, 2001.
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