HOUSE BILL No. 5330


     October 23, 2001, Introduced by Reps. Cassis, Woronchak, Vear, Gosselin, Drolet, Richardville and Bob Brown and referred to the Committee on
Tax Policy.


        A bill to amend 1941 PA 122, entitled

   "An act to establish a revenue division of the department of
   treasury; to prescribe its powers and duties as the revenue col-
   lection agency of the state; to prescribe certain powers and
   duties of the state treasurer; to regulate the importation,
   stamping, and disposition of certain tobacco products; to create
   the position and to define the powers and duties of the state
   commissioner of revenue; 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 pro-
   vide procedures for the payment, administration, audit, assess-
   ment, 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 reme-
   dies; and to declare the effect of this act,"

   by amending section 3 (MCL 205.3), as amended by 1986 PA 58.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 3.  The commissioner shall have all the powers and

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      perform the duties formerly vested in  any  A department, board,



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      commission, or other agency, in connection with taxes due to or

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      claimed by  the  THIS state and in connection with unpaid

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      accounts or amounts due to  the  THIS state or any of its depart-

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      ments, institutions, or agencies  which  THAT may be made payable

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      to or collectible by the department created by this act.   , and

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      IN ADDITION, THE COMMISSIONER HAS the power and authority inci-

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      dental to the performance of ALL the following acts, duties, and

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      services:

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           (a) The commissioner or  any of the  A duly appointed

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       agents  AGENT of the commissioner may examine the books,

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      records, and papers touching the matter at issue of any person or

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      taxpayer subject to any tax, unpaid account, or amount the col-

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      lection of which is charged to the department.  The commissioner

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      or  any of the  A duly appointed  agents  AGENT of the commis-

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      sioner may issue a subpoena requiring a person to appear and be

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      examined with reference to a matter within the scope of the

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      inquiry or investigation being conducted by the department and to

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      produce any books, records, or papers.  The commissioner or  any

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      of the  A duly appointed  agents  AGENT,  referees
    REFEREE, or

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       examiners  EXAMINER of the commissioner, may administer an oath

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      to a witness in any matter before the department.  The department

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      may invoke the aid of the circuit court of this state in requir-

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      ing the attendance and testimony of witnesses and the producing

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      of books, papers, and documents.  The circuit court of  the  THIS

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      state within the jurisdiction of which an inquiry is carried on,

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      in case of contumacy or refusal to obey a subpoena, may issue an

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      order requiring the person to appear before the department and



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      produce books,  and  papers, AND DOCUMENTS if so ordered and any

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

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

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      person shall not be excused from testifying or from producing any

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

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      upon any hearing when ordered to do so by the commissioner, upon

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      the ground that the testimony or evidence, documentary or other-

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

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

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

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      or thing concerning which he or she may testify or produce evi-

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      dence, documentary or otherwise, before the  board  COMMISSIONER

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      or  its  HIS OR HER agent.  A person  so  testifying 
   shall  IS

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      not  be  exempt from prosecution and punishment for perjury com-

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      mitted while testifying.

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           (b) After reasonable notice and public hearing,  to  THE

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      COMMISSIONER MAY promulgate rules consistent with this act in

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      accordance with  Act No. 306 of the Public Acts of 1969, as

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      amended, being sections 24.201 to 24.328 of the Michigan Compiled

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      Laws  THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL

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      24.201 TO 24.328, as may be necessary to the enforcement of the

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      provisions of tax and other revenue measures  which  THAT are

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      administered by the commissioner.

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           (c)  Consult  THE COMMISSIONER MAY CONSULT with the governor

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      and the legislature  upon  ON the subject of taxation, revenue,

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      and the administration of the laws in relation to taxation and

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      revenue, and the progress of the work of the department,



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      including the furnishing of reports, information, and other

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      assistance as the governor may require.

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           (d)  Investigate  THE COMMISSIONER MAY INVESTIGATE and study

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      all matters of taxation and revenue as the basis of recommending

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      to the governor and the legislature those changes and alterations

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      in the tax laws of  the  THIS state,  as  THAT in the

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      commissioner's judgment may bring about a more adequate and just

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      system of state and local taxation.

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           (e)  Formulate  THE COMMISSIONER MAY FORMULATE a standard

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      procedure  whereby  THAT REQUIRES the departments, commissions,

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      boards, institutions, and the agencies of  the  THIS state

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       which  THAT collect taxes, fees, or accounts for  the  THIS

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      state  shall  TO report all sums of money due and uncollected and

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      those uncollected items  as may be  prescribed by law and by the

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      commissioner.  The procedure prescribed in this subdivision shall

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      include a standard practice for receiving, receipting, safeguard-

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      ing, and periodically reporting all state revenue receipts,

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      whether current, delinquent, penalty, interest, or otherwise, and

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      the amounts, kinds, and terms of items either collected, com-

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      promised, or still outstanding, to be summarized, studied, and

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      reported upon as the commissioner considers advisable.

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           (f) The  department  COMMISSIONER may periodically issue

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      bulletins that index and explain current department interpreta-

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      tions of current state tax laws.  A BULLETIN OR LETTER RULING

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      ISSUED BY THE COMMISSIONER SHALL BE PUBLISHED AND MADE AVAILABLE

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      TO THE PUBLIC IN PRINTED AND ELECTRONIC FORMATS. The department

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      may charge a reasonable fee for subscriptions to this service not



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      to exceed the cost of  printing  PUBLISHING.  The money received

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      from the sale of  such  A subscription shall revert to the

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      department and be placed in the taxation manual revolving fund.


















































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