Amend CSHB 7 by striking Art. 22 and substituting the 
following appropriately numbered article to read as follows and 
renumbering subsequent articles accordingly:

ARTICLE 22.  REVIEW OF CERTAIN TAX SETTLEMENTS
	SECTION __.01.  Chapter 321, Government Code, is amended by 
adding Section 321.0138 to read as follows:
	Sec. 321.0138.  REVIEW OF CERTAIN STATE TAX SETTLEMENTS.  
(a)  Except as provided by Subsection (b), this  section applies to 
a settlement entered into by the comptroller under Section 111.101 
or 111.102, Tax Code, of:
		(1)  a claim for a tax, a penalty, or interest imposed 
by Title 2, Tax Code, if:
			(A)  the amount the taxpayer is required to pay 
under the settlement is more than 25 percent less than the amount 
the comptroller originally claimed the taxpayer owed before the 
date of the  settlement; and
			(B)  the amount the comptroller originally 
claimed the taxpayer owed before the date of the settlement exceeds 
$25,000;
		(2)  a claim for a refund or credit of a tax, a penalty, 
or interest imposed by Title 2, Tax Code, if:
			(A)  the amount of the refund or credit under the 
settlement exceeds $25,000; and
			(B)  the amount of the refund or credit under the 
settlement is more than 25 percent greater than the amount of the 
refund or credit that the comptroller originally claimed the 
taxpayer was entitled to receive; or
		(3)  a taxpayer suit under Chapter 112, Tax Code, if:                  
			(A)  the amount to be paid, refunded, or credited 
to the taxpayer under the settlement exceeds $25,000; and
			(B)  the amount to be paid, refunded, or credited 
under the settlement is more than 25 percent greater than the amount 
of the payment, refund, or credit that the comptroller originally 
claimed the taxpayer was entitled to receive.
	(b)  This section does not apply to an agreed settlement that 
results from an order issued by a court.
	(c)  The legislative audit committee shall appoint not fewer 
than five nor more than seven staff members of the state auditor's 
office to an oversight committee to review tax settlements to which 
this section applies.
	(d)  Each month, the comptroller shall send to the oversight 
committee information relating to tax settlements to which this 
section applies that the comptroller entered into during the 
previous month.
	(e)  Notwithstanding any other law, in reviewing a tax 
settlement, the oversight committee is entitled to access to 
information related to the settlement to the same extent the state 
auditor would be entitled under Section 321.013 if the information 
were in a department or entity that is subject to audit.  In 
accordance with Section 321.013(h), neither the oversight 
committee nor the state auditor may conduct audits of private 
entities concerning the collection or remittance of taxes or fees 
to this state.
	(f)  A review by the oversight committee under this section 
is considered an audit for purposes of the application of Section 
552.116, relating to confidentiality of audit working papers, and a 
report prepared by the oversight committee is considered to be an 
audit working paper.  Information obtained or possessed by the 
oversight committee, state auditor, or legislative audit committee 
that is confidential under law when in the possession of the 
comptroller remains confidential while in the possession of the 
oversight committee, state auditor, or legislative audit 
committee.
	(g)  The oversight committee shall report to the legislative 
audit committee the results of the oversight committee's reviews. 
The legislative audit committee shall determine the manner in which 
the oversight committee shall make the report.
	(h)  Except as provided by Subsection (e), this section does 
not affect any other law relating to confidentiality of information 
relating to tax information, including Sections 111.006, 151.027, 
and 171.206, Tax Code.
	SECTION __.02.  This article takes effect February 1, 2004.