42-1207. Financial institutions data match;
prohibited disclosure; civil liability; fee; definition
A. The department may enter into agreements with financial institutions that
conduct business in this state to develop and operate a data match system to assist the
department in the collection of delinquent taxes, penalties and interest. The data match
system shall use automated data exchange procedures to the maximum extent possible.
B. Any data exchanges between financial institutions and the department under an
agreement pursuant to subsection A shall occur quarterly. The data exchanges shall
include the name, address of record, social security number or other taxpayer
identification number and any other identifying information for each delinquent taxpayer
who maintains an account at the institution and who owes delinquent taxes as identified
by the department by name and social security number or other taxpayer identification
number.
C. The department or its agent may only disclose a person's financial record under
this section in order to enforce the collection of a person's delinquent tax obligation.
D. A department employee who knowingly or negligently discloses a person's
financial records in violation of subsection C is subject to civil liability in an amount
equal to the greater of either:
1. One thousand dollars for each act of unauthorized disclosure of a financial
record with respect to which the department employee is found liable.
2. The sum of the actual damages sustained by the plaintiff as a result of the
unauthorized disclosure and, in the case of a wilful disclosure or a disclosure that is
the result of gross negligence, punitive damages, including costs and attorney fees.
E. The department may pay a reasonable fee to a financial institution for
conducting a data match. The fee shall not exceed the actual costs incurred by the
financial institution.
F. For the purposes of this section, "financial institution" means state and
federally chartered banks, trust companies, federal and state savings and loan
associations, federal and state credit unions, consumer lenders, international banking
facilities and financial institution holding companies, insurance companies, benefit
associations, safe deposit companies, money market mutual funds and similar institutions
authorized to do business in this state and any party affiliated with these financial
institutions.
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