| (a) Definitions. The following words and terms, when
used in this subsection, shall have the following meanings, unless
the context clearly indicates otherwise.
(1) Account--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--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) Comptroller's agent--A third-party vendor with
whom the comptroller contracts to facilitate the exchange of information
with a financial institution.
(4) Data match--The process by which the comptroller
uses account holder information provided by a financial institution
to secure payment of a delinquent taxpayer's tax debt. A data match
begins when a delinquent taxpayer's case is created by the Enforcement
Division, includes the levy of funds from a delinquent taxpayer's
account, and ends 30 days after the delinquent taxpayer's case is
closed by the Enforcement Division.
(5) Delinquent taxpayer--A person who at the time of
a data match request under subsection (b) of this section is delinquent
in a tax or fee administered by the comptroller.
(6) Financial institution--
(A) A depository institution, as defined by Federal
Deposit Insurance Act (12 U.SC. §1813(c)), Section 3(c);
(B) a federal credit union or state credit union, as
those terms are defined by Federal Credit Union Act (12 U.S.C. §1752),
Section 101; or
(C) the agent of an entity described by subparagraph
(A) or (B) of this paragraph.
(7) Inquiry file--An electronic file sent by the comptroller
or the comptroller's agent to a financial institution that contains
a record of delinquent taxpayers.
(b) Exchange of information. Each calendar quarter,
a financial institution doing business in this state shall exchange
information with the comptroller or the comptroller's agent as provided
in this subsection. The comptroller and the comptroller's agent may
not ask a financial institution to exchange information more than
once each calendar quarter.
(1) Matched accounts method. No later than 45 days
after the date the comptroller or the comptroller's agent provides
the inquiry file to a financial institution, the financial institution
must submit to the comptroller or the comptroller's agent an electronic
file listing all of the account owner records of the accounts owned
at the financial institution by each delinquent taxpayer identified
in the inquiry file.
(2) Optional method of reporting: all accounts method.
In lieu of exchanging information using the matched accounts method,
a financial institution may submit to the comptroller or the comptroller's
agent an electronic file listing all of the financial institution's
account owner records for all open accounts. The comptroller or the
comptroller's agent will create an electronic file listing all account
owner records for the accounts owned at the financial institution
by delinquent taxpayers.
(3) Compatibility. The exchange of information shall
be performed in a manner that is compatible with the data processing
system of the financial institution.
(c) Notification of account holders. A financial institution
may not notify an account holder that the financial institution has
exchanged account holder information with the comptroller or the comptroller's
agent as provided in subsection (b) of this section.
(d) Confidentiality. 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. Information collected
from a financial institution pursuant to this section is available
for the collection of delinquent taxes only and is not available for
other debt collection activities undertaken by the state.
(e) Liability of financial institutions for disclosure
of information. 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.
(f) Due process. A statutory levy executed during a
data match is subject to the statutory procedures and due process
protections of Tax Code, §111.021 (Notice to Holders of and Levy
Upon Assets Belonging to Delinquent).
(g) Suit to enforce exchange of information. 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.
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