87R8201 RDS-F     By: Ashby, Anchia H.B. No. 1258     Substitute the following for H.B. No. 1258:     By:  Slawson C.S.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.