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