81R8224 KLA-D
By: Villarreal H.B. No. 1402
A BILL TO BE ENTITLED
AN ACT
relating to a periodic review of state and local taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 3, Government Code, is amended
by adding Chapter 320A to read as follows:
CHAPTER 320A. REVIEW OF STATE AND LOCAL TAXES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 320A.001. DEFINITIONS. In this chapter:
(1) "Commission" means the select commission on
periodic tax review.
(2) "Committee" means the joint legislative tax review
committee.
[Sections 320A.002-320A.050 reserved for expansion]
SUBCHAPTER B. SCHEDULE FOR PERIODIC REVIEW OF STATE AND LOCAL TAXES
Sec. 320A.051. SELECT COMMISSION ON PERIODIC TAX REVIEW.
The select commission on periodic tax review is composed of:
(1) three members of the house of representatives,
appointed by the speaker of the house of representatives, one of
whom must be the individual selected under Section 320A.104(a) to
serve as the chair of the committee;
(2) three members of the senate, appointed by the
lieutenant governor;
(3) eight public members representing the geographic
and cultural diversity of this state, of which:
(A) four are appointed by the governor;
(B) two are appointed by the lieutenant governor;
and
(C) two are appointed by the speaker of the house
of representatives; and
(4) the comptroller.
Sec. 320A.052. TERMS. The members of the commission serve
two-year terms that expire December 31 of each even-numbered year.
Sec. 320A.053. VACANCY. If a vacancy occurs, the
individual who originally appointed the vacating member shall
appoint an individual to fill the vacancy for the remainder of the
unexpired term.
Sec. 320A.054. OFFICERS. (a) The speaker of the house of
representatives shall select one member of the commission appointed
under Section 320A.051(1) to serve as chair of the commission.
(b) The lieutenant governor shall select one member of the
commission appointed under Section 320A.051(2) to serve as vice
chair of the commission.
Sec. 320A.055. MEETINGS. The commission shall meet at the
call of the chair.
Sec. 320A.056. STAFF. On the commission's request:
(1) the committee shall provide committee staff to
assist the commission in performing the commission's duties; and
(2) the Legislative Budget Board, the Texas
Legislative Council, the office of the governor, the comptroller,
the senate, and the house of representatives shall provide other
staff necessary to assist in performing those duties.
Sec. 320A.057. COOPERATION BY OTHER STATE ENTITIES. The
commission may request the assistance of any state agency,
department, or office if the commission needs assistance to perform
the commission's duties. The agency, department, or office shall
provide the requested assistance.
Sec. 320A.058. EXPENSES. The operating expenses of the
commission shall be paid from available funds of the office of the
governor and the contingent expense funds of the senate and the
house of representatives, as agreed by those entities. The
commission members are entitled to reimbursement from those funds
for expenses incurred by the members in implementing this chapter.
Sec. 320A.059. DEVELOPMENT AND BIENNIAL MODIFICATION OF
STATE AND LOCAL TAX REVIEW SCHEDULE. (a) The commission shall:
(1) identify each state tax imposed in this state and
each type of local tax imposed in this state authorized by state
law;
(2) develop a state and local tax review schedule
under which each identified tax is reviewed once during each
12-year period; and
(3) specifically identify on the schedule:
(A) each of the taxes the committee must review
for purposes of the next report due under Section 320A.153;
(B) any tax described by Paragraph (A) the total
revenue of which did not exceed $10 million during the most recent
state fiscal biennium and that the commission recommends for an
abbreviated review by the committee; and
(C) the components of the review specified by
Section 320A.109 that the commission recommends are unnecessary
with respect to a tax recommended for an abbreviated review.
(b) In developing the schedule, the commission shall
schedule the taxes for review in the order in which the taxes were
enacted or authorized, except that the commission may schedule the
initial review of a tax that has an expiration date for any date the
commission determines is appropriate.
(c) The commission shall revise the schedule biennially
only to:
(1) add to the schedule a tax that was enacted or
authorized after the commission developed the most recent schedule;
(2) delete from the schedule a tax that was repealed
after the commission developed the most recent schedule;
(3) update the review dates of the taxes for which
reviews were conducted after the commission developed the most
recent schedule; and
(4) update the taxes identified under Subsection
(a)(3).
Sec. 320A.060. PUBLIC COMMENT. The commission shall
provide a process by which the public may comment on the state and
local tax review schedule under Section 320A.059. The commission
shall consider those comments in developing or revising the
schedule.
Sec. 320A.061. SCHEDULE PROVIDED TO COMMITTEE. Not later
than December 1 of each odd-numbered year, the commission shall
provide the state and local tax review schedule to the committee.
[Sections 320A.062-320A.100 reserved for expansion]
SUBCHAPTER C. CONDUCT OF REVIEW OF STATE AND LOCAL TAXES
Sec. 320A.101. JOINT LEGISLATIVE TAX REVIEW COMMITTEE. The
joint legislative tax review committee is composed of the
following:
(1) six members of the house of representatives,
appointed by the speaker of the house of representatives; and
(2) six members of the senate, appointed by the
lieutenant governor.
Sec. 320A.102. TERMS. The members of the committee serve
two-year terms that expire December 31 of each even-numbered year.
Sec. 320A.103. VACANCY. If a vacancy occurs, the
individual who originally appointed the vacating member shall
appoint an individual to fill the vacancy for the remainder of the
unexpired term.
Sec. 320A.104. OFFICERS. (a) The speaker of the house of
representatives shall select one member of the committee appointed
under Section 320A.101(1) to serve as chair of the committee.
(b) The lieutenant governor shall select one member of the
committee appointed under Section 320A.101(2) to serve as vice
chair of the committee.
Sec. 320A.105. MEETINGS. The committee shall meet at least
once each calendar quarter and at other times at the call of the
chair.
Sec. 320A.106. STAFF. (a) The committee may hire staff as
the committee determines necessary.
(b) On the committee's request, the Legislative Budget
Board, the Texas Legislative Council, the office of the governor,
the comptroller, the senate, and the house of representatives shall
provide other staff necessary for the committee to perform the
committee's duties.
Sec. 320A.107. COOPERATION BY OTHER STATE ENTITIES. The
committee may request the assistance of any state agency,
department, or office if the committee needs assistance to perform
the committee's duties. The agency, department, or office shall
provide the requested assistance.
Sec. 320A.108. EXPENSES. The operating expenses of the
committee shall be paid from available funds of the office of the
governor and the contingent expense funds of the senate and the
house of representatives, as agreed by those entities. The
committee members are entitled to reimbursement from those funds
for expenses incurred by the members in implementing this chapter.
Sec. 320A.109. PERIODIC REVIEW OF STATE AND LOCAL TAXES.
The committee shall periodically review each state tax imposed in
this state and each type of local tax imposed in this state
authorized by state law according to the state and local tax review
schedule provided by the commission under Section 320A.061. In
reviewing a tax, the committee shall:
(1) evaluate the impact of the tax and the
expenditures of the tax revenue on economic development in this
state;
(2) examine the relationship between:
(A) the tax and other revenue sources and the
revenue needs of the state government and local governments, with
particular consideration given to projected demographic trends in
this state; and
(B) the tax burden imposed on taxpayers,
categorized by household income level or business sector, as
applicable, and the benefits those taxpayers receive from
government expenditures in this state;
(3) develop recommendations for retaining or
repealing the tax or for amending a provision related to the tax;
and
(4) make recommendations for retaining, repealing, or
amending a credit, exemption, discount, exclusion, special
valuation, special accounting treatment, special rate, or special
method of reporting related to the tax.
[Sections 320A.110-320A.150 reserved for expansion]
SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAXES
Sec. 320A.151. PRELIMINARY REPORT. Not later than
September 1 of each even-numbered year, the committee shall provide
to the commission a preliminary report on the reviews of taxes
identified under Section 320A.059(a)(3)(A). The report must
include drafts of any proposed legislation needed to implement the
committee's recommendations.
Sec. 320A.152. COMMISSION REVIEW AND COMMENT. The
commission may review the preliminary report and proposed
legislation and submit comments to the committee. The commission
shall submit the comments not later than October 15 of each
even-numbered year.
Sec. 320A.153. FINAL REPORT. (a) The committee may modify
the preliminary report and proposed legislation provided to the
commission under Section 320A.151 in response to the commission's
comments.
(b) Not later than December 1 of each even-numbered year,
the committee shall provide to the governor and the presiding
officers of the senate finance committee and the house ways and
means committee a final report on the reviews of taxes identified
under Section 320A.059(a)(3)(A) and proposed legislation necessary
to implement the committee's recommendations. The committee shall
include with the final report any comments received from the
commission under Section 320A.152.
Sec. 320A.154. PUBLIC HEARING ON FINAL REPORT. The senate
finance committee and the house ways and means committee shall hold
a joint public hearing on the final report and proposed legislation
provided under Section 320A.153.
SECTION 2. The governor, the lieutenant governor, and the
speaker of the house of representatives shall appoint the initial
members of the joint legislative tax review committee not later
than September 1, 2009. The governor, the lieutenant governor, and
the speaker of the house of representatives shall appoint the
initial members of the select commission on periodic tax review not
later than October 1, 2009. Notwithstanding Sections 320A.052 and
320A.102, Government Code, as added by this Act, the terms of the
initial members of the commission and the committee expire December
31, 2010.
SECTION 3. Notwithstanding Section 320A.061, Government
Code, as added by this Act, the select commission on periodic tax
review shall submit the initial state and local tax review schedule
required by that section not later than January 15, 2010.
SECTION 4. The joint legislative tax review committee shall
submit:
(1) the initial preliminary report required by Section
320A.151, Government Code, as added by this Act, not later than
September 1, 2010; and
(2) the initial final report required by Section
320A.153, Government Code, as added by this Act, not later than
December 1, 2010.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.