SB 32 — Revises provisions relating to the confidentiality and privilege of certain records and files of the Department of Taxation. (BDR 32-189)

(ReprintedSenate withBill amendmentsNo. adopted on April 29, 2019) SECOND REPRINT S.B.

3232–Committee SENATEon BILLRevenue NOand .Economic Development CHAPTER..........

32–COMMITTEE ON REVENUE AND ECONOMIC D EVELOPMENT (ON B EHALF OF THE D EPARTMENT OF TAXATION ) PREFILED N OVEMBER 16, 2018 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Revises provisions relating to the confidentiality and privilege of certain records and files of the Department of Taxation.

(BDR 32-189) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Under section 1, such records and files of the Department are Departmentconfidential concerningand privileged to the administrationsame andextent collectionsas ofthe taxes,records feesand andthefiles of the assessments.

(2) authorizes certain disclosures to any court in this State rather disclosuresthan only to federalcourts agencies,of statethis orState; local law enforcement agencies and local - *SB32_R2* – 2 – regulatory agencies be made in confidence;

and(3) (4)removes authorizesthe requirement that certain disclosures ofto federal agencies, state or local law enforcement agencies and local information relating to an application to operate a marijuana establishment or aas of person who is licensed to operate a marijuana establishment, including, without limitation, the identity of an applicant and any owner, officer or board member of an applicant, the methodology used to rank applicants for a license to operate a marSectionmarijuana 2establishment ofand this bill makes a conforming change to authorize the Departmentscore toassigned disclose information provided to theapplicants. Department by an applicant for a license, registration, permit or certificate related to medical marijuana, or an affiliate of such an applicant, when such disclosure is authorized by section 1.

Section 2 of this bill makes a conforming change to authorize the Department to disclose information provided to the Department by an applicant for a license, such an applicant, when such disclosure is authorized by section 1.r an affiliate of EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Except as otherwise provided in this section and NRS 239.0115 and 360.250, the records and files of the Department concerning the administration or collection of any tax, fee, - 80th Session (2019) – 2 – assessment or other amount required by law to be collected or the imposition of disciplinary action are confidential and privileged.

and (b) May not be required to produce any of the records or files for the inspection of any person or governmental entity or for use in any action or proceeding.

- *SB32_R2* – 3 – (c) Publication of statistics so classified as to prevent the identification of a particular business or document.

(d) Exchanges of information with the Internal Revenue Service in accordance with compacts made and provided for in such cases,cases,e or disclosure [in confidence] to any federal agency , state or local law enforcement agency or local regulatory agency that requests the information for the use of the agency in a federal , state or local prosecution or criminal , civil or regulatory investigation.

(e) Disclosure in confidence to the Governor or his or her agent in the exercise of the Governor’s general supervisory powers, or to any person authorized to audit the accounts of the Department in pursuance of an audit, or to the Attorney General or other legal representative of the State in connection with an action or proceeding relating to a taxpayer [,] or licensee, or to any agency of this or any other state charged with the administration or enforcement of laws relating to workers’ compensation, - 80th Session (2019) – 3 – unemployment compensation, public assistance, taxation, labor or gaming.

(g) Upon written request made by a public officer of a local government, disclosure of the name and address of a taxpayer or must set forth the social security number of the taxpayer or licensee aboutwho whichmust thefile request is made and contain a statementreturn signedwith by request is made to allow the properDepartment. authority to enforce a law to recover a debt or obligation owed to the local government.

The request must set forth the social security number of the taxpayer or licensee the proper authority of the local government certifying that they request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government.

(j) Disclosure of the identity of a person and the amount of tax assessed and penalties imposed against the person at any time after a - *SB32_R2* – 4 – determination, decision or order of the Executive Director or other officer of the Department imposing upon the person a penalty forforher fraud or intent to evade a tax imposed by law becomes final or is affirmed by the Nevada Tax Commission.

- 80th Session (2019) – 4 – (m) With respect to an application for a registration certificate to operate a medical marijuana establishment pursuant to chapter 453A of NRS or a license to operate a marijuana establishment pursuant to chapter 453D of NRS which was submitted on or after May 1, 2017, and regardless of whether the application was ultimately approved, disclosure of the following information:

(2) The contents of any tool used by the Department to evaluateevalua(3) anThe applicant;methodology used by the Department to score and rank applicants and any documentation or other evidence showing how that methodology was applied;

rankand applicants(4) The final ranking and anyscores documentationof oran otherapplicant, evidenceincluding, showingwithout howlimitation, the score assigned to each criterion in the application that methodologycomposes wasa applied;part of the total score of an applicant.

and without limitation, the score assigned to each criterion in theng, application that composes a part of the total score of an applicant.

The Executive Director may request from any other governmental agency or officer such information as the Executive Director deems necessary to carry out his or her duties with respect to the administration or collection of any tax, fee, assessment or other amount required by law to be collected [.] or the imposition of disciplinary action.

If the Executive Director obtains anyanyposition of confidential information pursuant to such a request, he or she shall - *SB32_R2* – 5 – maintain the confidentiality of that information in the same manner and to the same extent as provided by law for the agency or officer from whom the information was obtained.

(b) “Disciplinary action” means any suspension or revocation of a license, registration, permit or certificate issued by the - 80th Session (2019) – 5 – Department pursuant to this title or chapter 453A or 453D of NRS or any other disciplinary action against the holder of such a license, registration, permit or certificate.

(d) “Records” or “files” means any records and files related to an investigation or audit [,] or a disciplinary action, financial information, correspondence, advisory opinions, decisions of aaial hearing officer in an administrative hearing and any other inf[(b)]information (e)specifically “Taxpayer”related meansto a persontaxpayer who[.] paysor anylicensee. tax, fee,e.

[(b)] (e) “Taxpayer” means a person who pays any tax, fee, assessment or other amount required by law to the Department.

453A.700Sec. NR1.

2.

NRS 453A.700 is hereby amended to read as follows:

453A.700 1.

or (2) A person who has applied for or to whom the Division or itsapproval.nee designee has issued a registry identification card or letter of approval. Except as otherwise provided in NRS 239.0115 [,] and 360.255, the items of information described in this subsection are confidential, not subject to subpoena or discovery and not subject to inspection by the general public.

 Except as otherwise provided in NRS 239.0115 [,] and 360.255, the items of information described in this subsection are - *SB32_R2* – 6 – confidential, not subject to subpoena or discovery and not subject to inspection by the general public.

- 80th Session (2019) – 6 – (b) May release the name and other identifying information of a person to whom the Division or its designee has issued a registryaregistry identification card or letter of approval to:

(1) Authorized employees of the Division or its designee as necessa(2) Authorized employees of state and local law enforcement agencies, only as necessary to performverify officialthat dutiesa ofperson is the Division;lawful holder of a registry identification card or letter of approval issued to him or her pursuant to NRS 453A.220 or 453A.250.