Georgia 2023-2024 Regular Session

Georgia Senate Bill SB366 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		24 LC 50 0853S
2		-	Senate Bill 366
3		-	By: Senators Hufstetler of the 52nd, Tillery of the 19th, Dolezal of the 27th, Albers of the
4		-	56th, Still of the 48th and others
5		-	AS PASSED
	2	+	The House Committee on Ways and Means offers the following substitute to SB 366:
6	3		A BILL TO BE ENTITLED
7	4		AN ACT
8		-	To amend Title 28 of the Official Code of Georgia Annotated, relating to the General
9		-	1
	5	+	To amend Title 28 of the Official Code of Georgia Annotated, relating to the General1
10	6		Assembly, so as to revise provisions related to the adoption of general appropriations bills;2
11	7		to require the Governor's budget report to be provided to each member; to revise provisions3
12	8		for certain economic analyses; to revise the legislative review of taxation; to provide for4
13	9		annual meetings; to provide for related matters; to provide for a short title; to provide for an5
14	10		effective date; to repeal conflicting laws; and for other purposes.6
15	11		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
16	12		SECTION 1.8
17	13		This Act shall be known and may be cited as the "Tax Expenditures Transparency Act of9
18	14		2024."10
19	15		SECTION 2.11
20	16		Title 28 of the Official Code of Georgia Annotated, relating to the General Assembly, is12
21	17		amended by revising Code Section 28-5-4, relating to consideration of general appropriations13
22	18		bill, as follows:14
23		-	S. B. 366
	19	+	S. B. 366 (SUB)
24	20		- 1 - 24 LC 50 0853S
25		-	"28-5-4.
26		-	15
27		-	(a)
28		-	The general appropriations bill shall be referred by the Speaker to the Appropriations16
	21	+	"28-5-4.15
	22	+	(a) The general appropriations bill shall be referred by the Speaker to the Appropriations16
29	23		Committee of the House of Representatives. In the event such bill is reported out of the17
30	24		Appropriations Committee as 'do pass by substitute' or 'do pass as amended,' neither the18
31	25		committee of the whole nor the House of Representatives shall consider the bill until at19
32	26		least 24 hours after the substitute or the amendments, as the case may be, have been printed20
33	27		and placed on the desk of each member.21
34	28		(b) The general appropriations bill, upon its first reading in the Senate, shall be referred22
35	29		by the President of the Senate to the Appropriations Committee of the Senate. In the event23
36	30		such bill is reported out of the Appropriations Committee as 'do pass by substitute' or 'do24
37	31		pass as amended,' neither the committee of the whole nor the Senate shall consider the bill25
38	32		until at least 24 hours after the substitute or the amendments, as the case may be, have been26
39	33		printed and placed on the desk of each member.27
40	34		(c) Upon receipt of the Governor's budget report as provided for in Code Section 45-12-75,28
41	35		the House Budget and Research Office and Senate Budget and Evaluation Office shall29
42	36		make available to each member of such office's respective chamber the Governor's budget30
43	37		report, including:31
44	38		(1) A list of all then-existing revenue sources;32
45	39		(2) The net amount of revenue expected to be generated by each such revenue source and33
46	40		available for appropriation by the General Assembly in the fiscal year; and34
47	41		(3) A summary of the tax expenditure review provided to the General Assembly as part35
48	42		of the Governor's budget report pursuant to paragraph (8) of Code Section 45-12-75. 36
49	43		Such summary shall include, for each tax expenditure item, a brief description of the37
50	44		expenditure, the amount of tax revenue projected to be forgone in the fiscal year as a38
51	45		result of the expenditure, and a citation of the statutory or other legal authority for the39
52	46		expenditure."40
53		-	S. B. 366
	47	+	S. B. 366 (SUB)
54	48		- 2 - 24 LC 50 0853S
55		-	SECTION 3.
56		-	41
	49	+	SECTION 3.41
57	50		Said title is further amended by revising Code Section 28-5-41.1, relating to economic42
58	51		analysis of certain tax benefits of law or proposed law and analysis on performance and43
59	52		outcomes of Code Section 33-1-25, as follows:44
60	53		"28-5-41.1.45
61		-	(a) An economic analysis shall include, but not be limited to, a good faith estimate as a
62		-	46
	54	+	(a) An economic analysis shall include, but not be limited to, a good faith estimate as a46
63	55		result of the law or proposed law, on an annual basis for five years thereafter, of the47
64	56		following, on both a direct and indirect basis:48
65	57		(1) Net change in state revenue;49
66	58		(2) Net change in state expenditures, which shall include, but not be limited to, costs of50
67	59		administering the bill;51
68	60		(3) Net change in economic activity; and52
69	61		(4) If applicable, any net change in public benefit.53
70	62		(b)(a)(1) Each year, the Department of Audits and Accounts shall cause the completion54
71	63		of at least 12 economic analyses pursuant to this Code section to be determined as55
72	64		follows:56
73	65		(A) An analysis for any income tax credit or sales and use tax exemption that will57
74	66		sunset or be repealed by operation of law within two years from July 1 of the year58
75	67		during which the economic analyses are to be conducted and that have an expenditure59
76	68		of more than $20 million as reported in the most recent tax expenditure review, as60
77	69		provided for in paragraph (8) of Code Section 45-12-75. If more than 12 such credits61
78	70		or exemptions meet such criteria, then the first 12 that are set to sunset or be repealed62
79	71		shall be selected in chronological order; and63
80	72		(B) If the total number of analyses required by subparagraph (A) of this paragraph is64
81	73		fewer than 12, On or before May 1 of each year, the chairperson of the House65
82	74		Committee on Ways and Means and the chairperson of the Senate Finance Committee66
83	75		may each request up to five one-half of the remaining number of economic analyses,67
84		-	S. B. 366
	76	+	S. B. 366 (SUB)
85	77		- 3 - 24 LC 50 0853S
86	78		which requests shall be transmitted to the Department of Audits and Accounts by April68
87	79		15 of each year. In the event that the number of remaining economic analyses is an odd69
88	80		number, such number shall be increased by one, ensuring that each chairperson has an70
89	81		equal number of requests available.71
90	82		(2) The Department of Audits and Accounts shall post on its public website the list of72
91	83		analyses to be conducted each year and provide a mechanism for intended beneficiaries73
92	84		or representatives to provide information that may be beneficial to the analyses. The74
93	85		Department of Audits and Accounts shall share such information with the independent75
94	86		auditors conducting the relevant analysis, and the Department of Audits and Accounts76
95	87		and such independent auditors may use such information in such analysis.77
96	88		(3) The Department of Audits and Accounts shall contract with one or more independent78
97	89		auditors to complete all such analyses on or before December 1 November 15 of the year79
98	90		in which such analysis was required or requested. 80
99	91		(4) Each such request economic analysis shall be limited to one existing provision of law81
100	92		or proposed law and shall specify one particular exemption, exclusion, or deduction from82
101	93		the base of a tax; credit against a tax; deferral of a tax; a rebate of taxes paid; tax83
102	94		abatement; or preferential tax rate to be analyzed.84
103	95		(b) An economic analysis conducted pursuant to this Code section shall include the85
104	96		following:86
105	97		(1) An analysis considering whether the provision is accomplishing its stated or implied87
106	98		purpose, intent, or goal;88
107	99		(2) A good faith estimate, on an annual basis for the following five years, of the net89
108	100		changes to state revenue, state expenditures, and economic activity. When appropriate,90
109	101		the net changes shall include direct, indirect, and induced impacts;91
110	102		(3) A comparison to similar provisions provided by other states;92
111	103		(4) An assessment of the extent to which modifying or terminating the provision would93
112	104		affect the beneficiaries and the state economy;94
113		-	S. B. 366
	105	+	S. B. 366 (SUB)
114	106		- 4 - 24 LC 50 0853S
115	107		(5) If possible, a description of the ancillary impacts of the business activity attributable95
116	108		to the provision, which may include, but not be limited to, those on public safety,96
117	109		education, and infrastructure; and97
118	110		(6) Any recommendations for improving the state's return on investment from the98
119	111		provision being studied.99
120	112		(c) Copies of each completed economic analysis shall be provided to the House Budget100
121	113		and Research Office and the Senate Budget and Evaluation Office.101
122	114		(d) If a fiscal note is requested pursuant to Code Section 28-5-42 and a relevant economic102
123	115		analysis has been conducted within one year of such request, the Office of Planning and103
124	116		Budget may prepare a summary of such economic analysis and attach it with the requested104
125	117		fiscal note.105
126	118		(e) An economic analysis shall be conducted on the performance and outcomes of Code106
127	119		Section 33-1-25, which shall be completed by December 1, 2021."107
128	120		SECTION 4.108
129	121		Said title is further amended by revising Chapter 12, relating to legislative review of taxation,109
130	122		as follows:110
131	123		"CHAPTER 12111
132	124		28-12-1.112
133	125		On or before May 1, 2023, the House Ways and Means Committee and the Senate113
134	126		Committee on Finance shall jointly undertake a thorough review of any and all state tax114
135	127		credits, deductions, and exemptions. No later than December 1, 2023, said committees115
136	128		shall submit a report of their findings and recommendations to the presiding officers of116
137	129		their respective chambers. On or before January 31 of each year, the House Ways and117
138	130		Means Committee and the Senate Finance Committee shall meet to review all economic118
139	131		analyses completed pursuant to Code Section 28-5-41.1 in the prior year."119
140		-	S. B. 366
	132	+	S. B. 366 (SUB)
141	133		- 5 - 24 LC 50 0853S
142		-	SECTION 5.
143		-	120
	134	+	SECTION 5.120
144	135		This Act shall become effective on January 1, 2025.121
145	136		SECTION 6.122
146	137		All laws and parts of laws in conflict with this Act are repealed.123
147		-	S. B. 366
	138	+	S. B. 366 (SUB)
148	139		- 6 -