HB-4290, As Passed Senate, December 17, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 4290

A bill to amend 1941 PA 122, entitled

"An act to establish the revenue collection duties of the

department of treasury; to prescribe its powers and duties as the

revenue collection agency of this state; to prescribe certain

powers and duties of the state treasurer; to establish the

collection duties of certain other state departments for money or

accounts owed to this state; to regulate the importation, stamping,

and disposition of certain tobacco products; to provide for the

transfer of powers and duties now vested in certain other state

boards, commissions, departments, and offices; to prescribe certain

duties of and require certain reports from the department of

treasury; to provide procedures for the payment, administration,

audit, assessment, levy of interests or penalties on, and appeals

of taxes and tax liability; to prescribe its powers and duties if

an agreement to act as agent for a city to administer, collect, and

enforce the city income tax act on behalf of a city is entered into

with any city; to provide an appropriation; to abolish the state

board of tax administration; to prescribe penalties and provide

remedies; and to declare the effect of this act,"

by amending section 3 (MCL 205.3), as amended by 2006 PA 615.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. Except as otherwise provided in this act, the

department shall have all the powers and perform the duties

formerly vested in a department, board, commission, or other

agency, in connection with taxes due to or claimed by this state

and in connection with unpaid accounts or money due to this state

or any of its departments, institutions, or agencies that may be

made payable to or collectible by the department created by this

act. The department has the power and authority incidental to the

performance of the following acts, duties, and services:

(a) The state treasurer or a duly appointed agent of the state

treasurer may examine the books, records, and papers touching the

matter at issue of any person or taxpayer subject to any tax,

unpaid account, or money the collection of which is charged to the

department. The state treasurer or a duly appointed agent of the

state treasurer may issue a subpoena requiring a person to appear

and be examined with reference to a matter within the scope of the

inquiry or investigation being conducted by the department and to

produce any books, records, or papers. The state treasurer or a

duly appointed agent, referee, or examiner of the state treasurer

may administer an oath to a witness in any matter before the

department. The department may invoke the aid of the circuit court

of this state in requiring the attendance and testimony of

witnesses and the producing of books, papers, and documents. The

circuit court of this state within the jurisdiction of which an

inquiry is carried on, in case of contumacy or refusal to obey a

subpoena, may issue an order requiring the person to appear before

the department and produce books and papers if so ordered and any

evidence touching the matter in question, and failure to obey the

order of the court may be punished by the court as a contempt. A

person shall not be excused from testifying or from producing any

books, papers, records, or memoranda in any investigation, or upon

any hearing when ordered to do so by the state treasurer, upon the

ground that the testimony or evidence, documentary or otherwise,

may tend to incriminate or subject him or her to a criminal

penalty, however, a person shall not be prosecuted or subjected to

any criminal penalty for or on account of any transaction made or

thing concerning which he or she may testify or produce evidence,

documentary or otherwise, before the department or its agent. A

person testifying is not exempt from prosecution and punishment for

perjury committed while testifying.

(b) After reasonable notice and public hearing, the department

may promulgate rules consistent with this act in accordance with

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

to 24.328, necessary to the enforcement of the provisions of tax

and other revenue measures that are administered by the department.

legislature on the subject of taxation, revenue, and the

administration of the laws in relation to taxation and revenue, and

the progress of the work of the department, including the

furnishing of reports, information, and other assistance as the

governor may require.

(d) The department may investigate and study all matters of

taxation and revenue as the basis of recommending to the governor

and the legislature those changes and alterations in the tax laws

of this state, as in the state treasurer's judgment may bring about

a more adequate and just system of state and local taxation.

(e) The department may formulate a standard procedure that

requires the departments, commissions, boards, institutions, and

the agencies of this state that collect taxes, fees, or accounts

for this state to report all sums of money due and uncollected and

those uncollected items as prescribed by law and by the state

treasurer. The procedure prescribed in this subdivision shall

include a standard practice for receiving, receipting,

safeguarding, and periodically reporting all state revenue

receipts, whether current, delinquent, penalty, interest, or

otherwise, and the amounts, kinds, and terms of items either

collected, compromised, or still outstanding, to be summarized,

studied, and reported upon as the state treasurer considers

advisable.

(f) The department may periodically issue bulletins that index

and explain current department interpretations of current state tax

laws. Beginning October 22, 2003, each bulletin or letter ruling

issued by the department on or after August 18, 2000 shall be

published and made available to the public in printed and

electronic formats. Beginning not later than 6 months after the

date of enactment of the amendatory act that added this sentence,

and not subject to section 6a, the department shall publish and

make available to the public in printed and electronic formats the

department's internal policy directives, audit standards, sampling

manual, cash basis sales tax audit overview, industrial processing

sales and use tax manual, contractors sales and use tax manual, and

other deductions sales and use tax manual. The department may