H.B. No. 1258
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.
______________________________ ______________________________
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