By: Howard of Fort Bend H.B. No. 4274
A BILL TO BE ENTITLED
AN ACT
relating to the sale of certain goods and services by a political
subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 140, Local Government Code, is amended
by adding Section 140.009 to read as follows:
Sec. 140.009. SALE OF GOODS AND SERVICES ORDINARILY SOLD OR
PROVIDED BY PRIVATE BUSINESS. (a) A county, municipality, or other
political subdivision that sells a good or provides a service
ordinarily offered by a private business shall provide public
notice stating:
(1) the political subdivision's operating costs
associated with selling the good or providing the service,
including:
(A) the cost and depreciation of equipment;
(B) personnel costs;
(C) transportation costs;
(D) the cost of acquiring raw materials;
(E) manufacturing costs;
(F) toll road costs;
(G) utility costs;
(H) facility rental costs;
(I) internal and external audit costs;
(J) advertising and marketing costs;
(K) distribution costs;
(L) preventative maintenance costs;
(M) repair costs;
(N) cost of safety training;
(O) clothing and uniform costs;
(P) freight costs;
(Q) bad debt costs;
(R) billing costs;
(S) information technology support costs;
(T) administrative cost of invoices and payroll;
(U) overhead and production costs;
(V) cost of providing employee benefits;
(W) fuel costs; and
(X) costs necessary to manage risk, including
legal fees, insurance costs, and expenses related to workers'
compensation;
(2) benefits received by the political subdivision
resulting in lower operating costs for the political subdivision,
including any tax incentives or exemptions not available to a
private business, such as exemptions from a:
(A) fuel tax;
(B) excise tax;
(C) franchise and margins tax;
(D) sales tax on non-manufacturing equipment; or
(E) real and personal property tax; and
(3) an estimate of the profits to be realized from the
sale of goods or provision of services, which must be used to
provide the tax cut prescribed by Subsection (c).
(b) The chief financial officer of the political
subdivision shall certify that generally accepted accounting
principals were used in determining the information included in the
notice required under Subsection (a).
(c) In setting the annual budget, a political subdivision
shall specifically consider any profits realized from selling a
good or providing a service ordinarily offered by a private
business and shall lower taxes as necessary to return to the
subdivision's taxpayers the amount of those profits.
SECTION 2. This Act takes effect September 1, 2009.