The Attorney General of Texas
October 11, 1978
JOHN L. HILL
Attorney General
able W. K. Harvey, Jr. Opinion No. H- 12 5 5
!ommissioner
‘exas Rehabilitation Commission Re: Authority of the Comptroller of
118 East Riverside Drive Public Accounts to implement a new
Austin, Texas 78704 system of issuing warrants in payment
of vouc.hers.
Dear Mr. Harvey:
You have asked our opinion on three questions relating to a new system
which was ,recently implemented by the Comptroller for the payment of
vouchers submitted to him by state agencies. Specifically you ask:
Does the Comptroller have authority to refuse. to pay a
claimant because the claim does not include a
“Comptroller’s Sales Tax Permit Number” or a
“Comptroller’s Vendor Number”?
The procedure requires state agencies to submit a unique numerical
identifier for each payee. This vendor identification number is based on the
tax identification number used by that payee. It includes a social security
number for individuals and a federal employer identification number for
corporations and partnerships.
The Comptroller informs us the system is designed to (1) assist in the
enforcement of article 4350, V.T.C.S., which prohibits the issuance of
warrants to persons indebted to the state, (2) permit more efficient and
expeditious preparation of state warrants and (3) provide a data base to
facilitate the assembly of financial and accounting information. A major
category of persons indebted to the state includes individuals and corpor-
ations who are delinquent in paying sales taxes due the state.
The Comptroller has several relevant sources of statutory authority.
Article 4344, V.T.C.S., provides in part:
Among other duties the Comptroller shalh
. . . .
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Honorable W. IS. Harvey, Jr. - Page 2 (R-1255)
3. Superintend the fiscal concerns of the State, as the
sole accounting officer thereof, and manage the same in the
manner required by law.
4. Require all accounts presented to him for settlement
not otherwise provided for by law to be made on forms
prescribed by him, all such accounts to be verified by
affidavit as to their correctness, and he may administer the
oath himself in any case in which he may deem it necessary.
. . . .
10. Examine and settle the accounts of all persons
indebted to the State and certify the amount or balance to
the Treasurer, and direct and superintend, .the collection of
all moneys due the State.
lL Audit the claims of all persons against the State in
cases where provision for the payment thereof has been
made by law, unless the audit of any such claim is otherwise
specially provided for.
Article 4355, V.T.C.S., provides in part:
AR claims and accounts against the State shall be
submitted on forms prescribed by the Comptroller.
Article 4344b, V.T.C.S., provides in part:
(2) The Comptroller of Public Accounts is authorized to
establish and operate a central electronic computing and
data processing center to be used to maintain the central
accounting records of the state, to prepare payrolls and
other warrants, to audit tax reports, and to perform such
other accounting and data processing activities as may be
economically and practically adapted to the use of this
equipment. In order to provide for the orderly and
economical use of this equipment the Comptroller is further
authorized to prescribe and revise claim forms, registers,
warrants, and other documents submitted in support of
payroll or other claims or to support tax or any other
payments to the state.
-See Attorney General Opinion H-245 (1974).
We believe these statutes provide the Comptroller with adequate authority to
require state agencies to include a vendor identification number on vouchers
submitted to him for payment.
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Honorable W. K. Harvey, Jr. - Page 3 (H-12551
You also ask:
Is this new system requiring the use of social security
numbers as a universal identifier in violation of Section 7 of
the Privacy Act of 1974 (P.L. 93-579)?
Section 7 of the Privacy Act (codified at 5 U.S.C. S 552a note) provides in
part:
(al(l) It shall be unlawful for any Federal, State or local
government agency to deny to any individual any right,
benefit, or privilege provided by law because of such
individual’s refusal to disclose his social security account
number.
While section 7 arguably might prohibit the use of the social security number, it
must be read in conjunction with section 1211 of the Tax Reform Act of 1976
(codified at 42 U.S.C. S 405(cX2XC)) which provides:
(i) It is the policy of the United States that any State (or
political subdivision thereof) may, in the administration of
any tax, general public assistance, driver’s license, or motor
vehicle registration law within its jurisdiction, utilize the
social security account numbers issued by the Secretary for
the purpose of establishing the identification of individuals
affected by such law, and may require any individual who is
or appears to be so affected to furnish to such State (or
political subdivision thereof) or any agency thereof having
administrative responsibility for the law involved, the social
security account number (or numbers, if he has more than
one such number) issued to him by the Secretary.
(ii) If and to the extent that any provision of Federal law
heretofore enacted is inconsistent with the policy set forth
in clause (il of this subparagraph, such provision shall, on and
after . . . [the date of the enactment of this subparagraph,]
be null, void, and of no effect.
Since the vendor identification number system is largely designed as a
program of collection of delinquent taxes we believe it is covered by the exemption
provided by section 1211. See Mayer, Privacy and the Social Security Number:
Section 1211of the Tax Reform Act of 1976, 6 Rutgers Journal of Computers and
the Law 221, 239-241 (1978); Privacy Protection Study Commission, Personal Privacy
in an Information Society 613 (19’77); H.R. Rep. No. 658, 94th Cong., 2nd Sess.,
reprinted in 119761U.S. Code Cong. & Ad. News 2897, 3821.
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Honorable W. K. Harvey, Jr. - Page 4 (H-1255)
Your final question is
Does the Comptroller of Public Accounts have the
authority to make a warrant payable to any other name or at
any other address than the one shown on the face of the
claim signed by the claimant and approved by the agency?
The Comptroller’s duty is to insure that any warrant is issued to the correct
person. Information you have furnished us suggests that the vendor identification
number system is contrary to this aim, while information submitted by the
Comptroller suggests the system promotes the aim. In either event, we believe the
question raises administrative rather than legal issues and is accordingly
inappropriate for consideration in the opinion process. We note, however, that the
Comptroller’s brief indicates that he stands ready to issue a warrant to the name
and address desired by the vendor when there is a dispute concerning the proper
name.
SUMMARY
The Comptroller is authorized to require vouchers submitted
to him by state agencies to include a vendor identification
number. The Tax Reform Act of 1976 specifically permits
the use of social security numbers in this type of vendor
identification system.
DAVID M. KENDALL, First Assistant
C. ROBERT HEATH, Chairman
Opinion Committee
jsn
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