Bill Text: TX HB1258 | 2021-2022 | 87th Legislature | Engrossed


Bill Title: Relating to data matching with financial institutions to facilitate the collection of certain delinquent tax liabilities.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Engrossed) 2021-05-18 - Scheduled for public hearing on . . . [HB1258 Detail]

Download: Texas-2021-HB1258-Engrossed.html
  87R8201 RDS-F
 
  By: Ashby, Anchia H.B. No. 1258
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to data matching with financial institutions to facilitate
  the collection of certain delinquent tax liabilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 111, Tax Code, is amended
  by adding Section 111.025 to read as follows:
         Sec. 111.025.  DELINQUENT TAXPAYER FINANCIAL RECORDS. (a)
  In this section:
               (1)  "Account" means a demand deposit account, checking
  or negotiable order of withdrawal account, savings account, time
  deposit account, or money market mutual fund account.
               (2)  "Account owner record" means a record a financial
  institution uses to report account owner information, including:
                     (A)  an account holder's name, social security
  number, or federal employer identification number; and
                     (B)  the account balance and account type.
               (3)  "Delinquent taxpayer" means a person who at the
  time of a data match request under Subsection (b) is delinquent in a
  tax or fee administered by the comptroller.
               (4)  "Financial institution" means:
                     (A)  a depository institution, as defined by
  Section 3(c), Federal Deposit Insurance Act (12 U.S.C. Section
  1813(c));
                     (B)  a federal credit union or state credit union,
  as those terms are defined by Section 101, Federal Credit Union Act
  (12 U.S.C. Section 1752); or
                     (C)  the agent of an entity described by Paragraph
  (A) or (B).
               (5)  "Inquiry file" means an electronic file sent by
  the comptroller or the comptroller's agent to a financial
  institution that contains a record of delinquent taxpayers.
         (b)  A financial institution shall, each calendar quarter,
  exchange data with the comptroller or the comptroller's agent to
  facilitate matching the names of delinquent taxpayers with the
  names of account holders using one of the following methods:
               (1)  an all accounts method in which:
                     (A)  the financial institution submits to the
  comptroller or the comptroller's agent an electronic file listing
  all of the financial institution's open accounts and account owner
  records; and
                     (B)  the comptroller or the comptroller's agent
  compares that information with the comptroller's records of
  delinquent taxpayers; or
               (2)  a matched accounts method in which the financial
  institution submits to the comptroller or the comptroller's agent
  an electronic file listing all account owner records that match
  information in an inquiry file.
         (c)  The comptroller shall make a data match request under
  Subsection (b) compatible with the data processing system of the
  financial institution.
         (d)  The comptroller may not request a financial institution
  to perform a data match under this section more than once each
  calendar quarter.
         (e)  A financial institution may not notify account holders
  that the comptroller has requested a data match or whether a data
  match has been made.
         (f)  Information provided by or to a financial institution,
  the comptroller, or the comptroller's agent for the purpose of
  performing a data match is confidential and may not be used for any
  purpose or disclosed to any person except as necessary to perform a
  data match. The financial institution, the comptroller, and the
  comptroller's agent shall return, destroy, or erase any information
  obtained after completion of the data match.
         (g)  A financial institution is not liable to any person for
  disclosing information to the comptroller under this section or for
  any other action that the financial institution takes in good faith
  to comply with this section.
         (h)  The comptroller may contract with a third party to
  facilitate the implementation of this section. A third-party
  contractor may use confidential information solely for the purpose
  of implementing this section.
         (i)  A suit to enforce this section must be brought by the
  attorney general in the name of the state. Venue for the suit is in
  Travis County.
         (j)  The comptroller may adopt rules to implement this
  section.
         SECTION 2.  This Act takes effect September 1, 2021.
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