Bill Text: TX HB1258 | 2021-2022 | 87th Legislature | Enrolled
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: (Passed) 2021-06-09 - Effective on 9/1/21 [HB1258 Detail]
Download: Texas-2021-HB1258-Enrolled.html
| H.B. No. 1258 | ||
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| 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. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 1258 was passed by the House on April | ||
| 16, 2021, by the following vote: Yeas 120, Nays 25, 2 present, not | ||
| voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 1258 was passed by the Senate on May | ||
| 22, 2021, by the following vote: Yeas 29, Nays 1. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: _____________________ | ||
| Date | ||
| _____________________ | ||
| Governor | ||
