I found my error and everything is working perfectly now. I did not initialize @ReturnValue to 0. When no error occurred, @ReturnValue remained NULL. When I tested...

I just missed it when I entered the code in my post. The OUTPUT keyword is there in my actual procedure.

I am leaning towards the following:

Proc1

CREATE Procedure Proc1 @Key1...

I see the error in my original post. All of the transactions segments (begin/commit/rollback) are in Proc1. There are NO commits/rollbacks in Proc2.

For example (I should have put...

Thanks Lynn. The code did exactly what I needed it to do.

Jack