SRC-JLB H.B. 3154 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 3154
By: Bonnen (Averitt)
Intergovernmental Relations
5/21/2003
Engrossed


DIGEST AND PURPOSE 

Under current Texas law, the ability of cities to oversee local sales tax
collections is restricted, and the information that the comptroller may
provide to cities regarding sales tax collections is limited.  A city may
determine that a particular sales tax outlet is not reporting or
collecting local sales taxes properly but might not know what impact a
correction has had on its local sales tax collections.  Thus, cities might
not be able to project local sales tax revenues as precisely as needed to
set budgets and perform long term planning or to determine whether efforts
to assist with tax law compliance are effective.  H.B. 3154 allows the
comptroller only to provide confidential information to a city when a
taxpayer is not reporting or collecting the tax as required by law.  This
bill also provides that such information is not a public record, and
certain penalties exist for violating the confidentiality of a taxpayer. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 151.027, Tax Code, by amending Subsection (c)
and adding Subsections (d) and (e), as follows: 
 
(c)  Provides that this section does not prohibit certain acts, including
the delivery of information to an eligible municipality in accordance with
Section 321.3022 or 321.3023. 

(d)  Prohibits an officer or employee of an eligible municipality, or an
agent acting on behalf of that municipality, who obtains access to
information in accordance with Section 321.3023, unless otherwise
authorized by law, from performing certain acts. 

(e)  Provides that a person who violates Subsection (d) commits an
offense.  Provides that an offense under this subsection is a Class A
misdemeanor. 
 
SECTION 2.  Amends Subchapter D, Chapter 321, Tax Code, by adding Section
321.3023, as follows: 
 
Sec.  321.3023.  INFORMATION ON CERTAIN TAXPAYERS.  (a)  Authorizes a
municipality that has imposed a tax under this chapter to provide to the
comptroller certain information. 
 
(b)  Authorizes the comptroller, after investigating the information
provided under Subsection (a), to provide to the municipality information
relating to whether the seller failed to perform certain acts. 

(c)  Authorizes the municipality to request and the comptroller to provide
information described by Subsection (b) for any tax reporting period that
ended during the fouryear period preceding the date on which the
municipality requested the information. 
 
(d)  Provides that Sections 151.027(d) and (e) apply to an officer or
employee of the  municipality or agent acting on behalf of the
municipality who is authorized to examine information provided by the
comptroller under this section. 
 
(e)  Requires the governing body of a municipality requesting the
information, to receive information under Subsection (b), to certify
certain information to the comptroller by resolution. 

  (f)  Authorizes the comptroller, if the comptroller believes that
information obtained by a municipality under Subsection (b) has been
disclosed to a person not named in the municipality's resolution as
authorized to examine the information or has been used for a purpose that
does not comply with law, to follow certain guidelines. 

SECTION 3.  Effective date:  upon passage or September 1, 2003.