Texas 2009 - 81st Regular

Texas House Bill HB1402 Compare Versions

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1	1	81R8224 KLA-D
2	2	By: Villarreal H.B. No. 1402
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a periodic review of state and local taxes.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle B, Title 3, Government Code, is amended
10	10	by adding Chapter 320A to read as follows:
11	11	CHAPTER 320A. REVIEW OF STATE AND LOCAL TAXES
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 320A.001. DEFINITIONS. In this chapter:
14	14	(1) "Commission" means the select commission on
15	15	periodic tax review.
16	16	(2) "Committee" means the joint legislative tax review
17	17	committee.
18	18	[Sections 320A.002-320A.050 reserved for expansion]
19	19	SUBCHAPTER B. SCHEDULE FOR PERIODIC REVIEW OF STATE AND LOCAL TAXES
20	20	Sec. 320A.051. SELECT COMMISSION ON PERIODIC TAX REVIEW.
21	21	The select commission on periodic tax review is composed of:
22	22	(1) three members of the house of representatives,
23	23	appointed by the speaker of the house of representatives, one of
24	24	whom must be the individual selected under Section 320A.104(a) to
25	25	serve as the chair of the committee;
26	26	(2) three members of the senate, appointed by the
27	27	lieutenant governor;
28	28	(3) eight public members representing the geographic
29	29	and cultural diversity of this state, of which:
30	30	(A) four are appointed by the governor;
31	31	(B) two are appointed by the lieutenant governor;
32	32	and
33	33	(C) two are appointed by the speaker of the house
34	34	of representatives; and
35	35	(4) the comptroller.
36	36	Sec. 320A.052. TERMS. The members of the commission serve
37	37	two-year terms that expire December 31 of each even-numbered year.
38	38	Sec. 320A.053. VACANCY. If a vacancy occurs, the
39	39	individual who originally appointed the vacating member shall
40	40	appoint an individual to fill the vacancy for the remainder of the
41	41	unexpired term.
42	42	Sec. 320A.054. OFFICERS. (a) The speaker of the house of
43	43	representatives shall select one member of the commission appointed
44	44	under Section 320A.051(1) to serve as chair of the commission.
45	45	(b) The lieutenant governor shall select one member of the
46	46	commission appointed under Section 320A.051(2) to serve as vice
47	47	chair of the commission.
48	48	Sec. 320A.055. MEETINGS. The commission shall meet at the
49	49	call of the chair.
50	50	Sec. 320A.056. STAFF. On the commission's request:
51	51	(1) the committee shall provide committee staff to
52	52	assist the commission in performing the commission's duties; and
53	53	(2) the Legislative Budget Board, the Texas
54	54	Legislative Council, the office of the governor, the comptroller,
55	55	the senate, and the house of representatives shall provide other
56	56	staff necessary to assist in performing those duties.
57	57	Sec. 320A.057. COOPERATION BY OTHER STATE ENTITIES. The
58	58	commission may request the assistance of any state agency,
59	59	department, or office if the commission needs assistance to perform
60	60	the commission's duties. The agency, department, or office shall
61	61	provide the requested assistance.
62	62	Sec. 320A.058. EXPENSES. The operating expenses of the
63	63	commission shall be paid from available funds of the office of the
64	64	governor and the contingent expense funds of the senate and the
65	65	house of representatives, as agreed by those entities. The
66	66	commission members are entitled to reimbursement from those funds
67	67	for expenses incurred by the members in implementing this chapter.
68	68	Sec. 320A.059. DEVELOPMENT AND BIENNIAL MODIFICATION OF
69	69	STATE AND LOCAL TAX REVIEW SCHEDULE. (a) The commission shall:
70	70	(1) identify each state tax imposed in this state and
71	71	each type of local tax imposed in this state authorized by state
72	72	law;
73	73	(2) develop a state and local tax review schedule
74	74	under which each identified tax is reviewed once during each
75	75	12-year period; and
76	76	(3) specifically identify on the schedule:
77	77	(A) each of the taxes the committee must review
78	78	for purposes of the next report due under Section 320A.153;
79	79	(B) any tax described by Paragraph (A) the total
80	80	revenue of which did not exceed $10 million during the most recent
81	81	state fiscal biennium and that the commission recommends for an
82	82	abbreviated review by the committee; and
83	83	(C) the components of the review specified by
84	84	Section 320A.109 that the commission recommends are unnecessary
85	85	with respect to a tax recommended for an abbreviated review.
86	86	(b) In developing the schedule, the commission shall
87	87	schedule the taxes for review in the order in which the taxes were
88	88	enacted or authorized, except that the commission may schedule the
89	89	initial review of a tax that has an expiration date for any date the
90	90	commission determines is appropriate.
91	91	(c) The commission shall revise the schedule biennially
92	92	only to:
93	93	(1) add to the schedule a tax that was enacted or
94	94	authorized after the commission developed the most recent schedule;
95	95	(2) delete from the schedule a tax that was repealed
96	96	after the commission developed the most recent schedule;
97	97	(3) update the review dates of the taxes for which
98	98	reviews were conducted after the commission developed the most
99	99	recent schedule; and
100	100	(4) update the taxes identified under Subsection
101	101	(a)(3).
102	102	Sec. 320A.060. PUBLIC COMMENT. The commission shall
103	103	provide a process by which the public may comment on the state and
104	104	local tax review schedule under Section 320A.059. The commission
105	105	shall consider those comments in developing or revising the
106	106	schedule.
107	107	Sec. 320A.061. SCHEDULE PROVIDED TO COMMITTEE. Not later
108	108	than December 1 of each odd-numbered year, the commission shall
109	109	provide the state and local tax review schedule to the committee.
110	110	[Sections 320A.062-320A.100 reserved for expansion]
111	111	SUBCHAPTER C. CONDUCT OF REVIEW OF STATE AND LOCAL TAXES
112	112	Sec. 320A.101. JOINT LEGISLATIVE TAX REVIEW COMMITTEE. The
113	113	joint legislative tax review committee is composed of the
114	114	following:
115	115	(1) six members of the house of representatives,
116	116	appointed by the speaker of the house of representatives; and
117	117	(2) six members of the senate, appointed by the
118	118	lieutenant governor.
119	119	Sec. 320A.102. TERMS. The members of the committee serve
120	120	two-year terms that expire December 31 of each even-numbered year.
121	121	Sec. 320A.103. VACANCY. If a vacancy occurs, the
122	122	individual who originally appointed the vacating member shall
123	123	appoint an individual to fill the vacancy for the remainder of the
124	124	unexpired term.
125	125	Sec. 320A.104. OFFICERS. (a) The speaker of the house of
126	126	representatives shall select one member of the committee appointed
127	127	under Section 320A.101(1) to serve as chair of the committee.
128	128	(b) The lieutenant governor shall select one member of the
129	129	committee appointed under Section 320A.101(2) to serve as vice
130	130	chair of the committee.
131	131	Sec. 320A.105. MEETINGS. The committee shall meet at least
132	132	once each calendar quarter and at other times at the call of the
133	133	chair.
134	134	Sec. 320A.106. STAFF. (a) The committee may hire staff as
135	135	the committee determines necessary.
136	136	(b) On the committee's request, the Legislative Budget
137	137	Board, the Texas Legislative Council, the office of the governor,
138	138	the comptroller, the senate, and the house of representatives shall
139	139	provide other staff necessary for the committee to perform the
140	140	committee's duties.
141	141	Sec. 320A.107. COOPERATION BY OTHER STATE ENTITIES. The
142	142	committee may request the assistance of any state agency,
143	143	department, or office if the committee needs assistance to perform
144	144	the committee's duties. The agency, department, or office shall
145	145	provide the requested assistance.
146	146	Sec. 320A.108. EXPENSES. The operating expenses of the
147	147	committee shall be paid from available funds of the office of the
148	148	governor and the contingent expense funds of the senate and the
149	149	house of representatives, as agreed by those entities. The
150	150	committee members are entitled to reimbursement from those funds
151	151	for expenses incurred by the members in implementing this chapter.
152	152	Sec. 320A.109. PERIODIC REVIEW OF STATE AND LOCAL TAXES.
153	153	The committee shall periodically review each state tax imposed in
154	154	this state and each type of local tax imposed in this state
155	155	authorized by state law according to the state and local tax review
156	156	schedule provided by the commission under Section 320A.061. In
157	157	reviewing a tax, the committee shall:
158	158	(1) evaluate the impact of the tax and the
159	159	expenditures of the tax revenue on economic development in this
160	160	state;
161	161	(2) examine the relationship between:
162	162	(A) the tax and other revenue sources and the
163	163	revenue needs of the state government and local governments, with
164	164	particular consideration given to projected demographic trends in
165	165	this state; and
166	166	(B) the tax burden imposed on taxpayers,
167	167	categorized by household income level or business sector, as
168	168	applicable, and the benefits those taxpayers receive from
169	169	government expenditures in this state;
170	170	(3) develop recommendations for retaining or
171	171	repealing the tax or for amending a provision related to the tax;
172	172	and
173	173	(4) make recommendations for retaining, repealing, or
174	174	amending a credit, exemption, discount, exclusion, special
175	175	valuation, special accounting treatment, special rate, or special
176	176	method of reporting related to the tax.
177	177	[Sections 320A.110-320A.150 reserved for expansion]
178	178	SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAXES
179	179	Sec. 320A.151. PRELIMINARY REPORT. Not later than
180	180	September 1 of each even-numbered year, the committee shall provide
181	181	to the commission a preliminary report on the reviews of taxes
182	182	identified under Section 320A.059(a)(3)(A). The report must
183	183	include drafts of any proposed legislation needed to implement the
184	184	committee's recommendations.
185	185	Sec. 320A.152. COMMISSION REVIEW AND COMMENT. The
186	186	commission may review the preliminary report and proposed
187	187	legislation and submit comments to the committee. The commission
188	188	shall submit the comments not later than October 15 of each
189	189	even-numbered year.
190	190	Sec. 320A.153. FINAL REPORT. (a) The committee may modify
191	191	the preliminary report and proposed legislation provided to the
192	192	commission under Section 320A.151 in response to the commission's
193	193	comments.
194	194	(b) Not later than December 1 of each even-numbered year,
195	195	the committee shall provide to the governor and the presiding
196	196	officers of the senate finance committee and the house ways and
197	197	means committee a final report on the reviews of taxes identified
198	198	under Section 320A.059(a)(3)(A) and proposed legislation necessary
199	199	to implement the committee's recommendations. The committee shall
200	200	include with the final report any comments received from the
201	201	commission under Section 320A.152.
202	202	Sec. 320A.154. PUBLIC HEARING ON FINAL REPORT. The senate
203	203	finance committee and the house ways and means committee shall hold
204	204	a joint public hearing on the final report and proposed legislation
205	205	provided under Section 320A.153.
206	206	SECTION 2. The governor, the lieutenant governor, and the
207	207	speaker of the house of representatives shall appoint the initial
208	208	members of the joint legislative tax review committee not later
209	209	than September 1, 2009. The governor, the lieutenant governor, and
210	210	the speaker of the house of representatives shall appoint the
211	211	initial members of the select commission on periodic tax review not
212	212	later than October 1, 2009. Notwithstanding Sections 320A.052 and
213	213	320A.102, Government Code, as added by this Act, the terms of the
214	214	initial members of the commission and the committee expire December
215	215	31, 2010.
216	216	SECTION 3. Notwithstanding Section 320A.061, Government
217	217	Code, as added by this Act, the select commission on periodic tax
218	218	review shall submit the initial state and local tax review schedule
219	219	required by that section not later than January 15, 2010.
220	220	SECTION 4. The joint legislative tax review committee shall
221	221	submit:
222	222	(1) the initial preliminary report required by Section
223	223	320A.151, Government Code, as added by this Act, not later than
224	224	September 1, 2010; and
225	225	(2) the initial final report required by Section
226	226	320A.153, Government Code, as added by this Act, not later than
227	227	December 1, 2010.
228	228	SECTION 5. This Act takes effect immediately if it receives
229	229	a vote of two-thirds of all the members elected to each house, as
230	230	provided by Section 39, Article III, Texas Constitution. If this
231	231	Act does not receive the vote necessary for immediate effect, this
232	232	Act takes effect September 1, 2009.