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REFERENCE TITLE: tax collection; data analytics services |
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State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
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SB 1540 |
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Introduced by Senator Leach
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AN ACT
Amending section 42‑1116.02, Arizona Revised Statutes; relating to taxation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-1116.02, Arizona Revised Statutes, is amended to read:
42-1116.02. Department of revenue tax fraud interdiction fund; data analytics services; uses
A. The department of revenue tax fraud interdiction fund is established consisting of civil penalties and fines collected pursuant to section 42-1125, subsections G, J, L, M and N and section 42‑1127, subsection B, paragraphs 5 and 6.
B. The director shall administer the fund. Subject to legislative appropriation, the director shall:
1. Use fifty percent of the monies in the fund to detect violations and enhance tax fraud analytics used to detect violations pursuant to section 42‑1127, subsection B.
2. Transfer fifty percent of the monies in the fund to the attorney general for prosecuting violations pursuant to section 42‑1127, subsection B.
C. The department may contract with a data analytics service provider to assist the department in detecting violations pursuant to sections 42-1108 and 42-1109 and section 42‑1127, subsection B. The following apply to a contract entered into pursuant to this subsection:
1. The contract May not be For a period of more than three years.
2. Services performed shall be by specific north American industry classification system sectors and tax classifications as designated by the director and shall include all taxpayers within the designated sectors and classifications.
3. Compensation for the data analytics services may be based on collections that are attributable to the data analytics service provider.
4. The department shall require data analytics service provider employees who are granted access to taxpayer information to meet the same security and bond requirements as employees of the department.
5. Data analytics service providers and employees may not retain or use any taxpayer information, whether anonymized or not, in any manner that is not specifically authorized by the department. The department shall expressly prohibit any action not specifically set out in the contract, including AGGREGATING, studying, transmitting, retaining or disseminating taxpayer information.
6. Data analytics service providers and employees shall maintain all information to which they are granted access on a confidential basis as prescribed by chapter 2, article 1 of this title. Any person who discloses any information obtained under this subsection is subject to section 42‑2004.