By: Paxton, et al. (Senate Sponsor - Nelson) H.B. No. 464
(In the Senate - Received from the House May 18, 2009;
May 19, 2009, read first time and referred to Committee on Finance;
May 25, 2009, reported favorably by the following vote: Yeas 10,
Nays 1; May 25, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the preparation by the Legislative Budget Board of a
dynamic fiscal impact statement for certain bills and joint
resolutions affecting taxes and fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 314, Government Code, is amended by
adding Section 314.005 to read as follows:
Sec. 314.005. DYNAMIC FISCAL IMPACT STATEMENT ON TAX OR FEE
MEASURE. (a) The board shall prepare a dynamic fiscal impact
statement for each bill or joint resolution:
(1) that raises or lowers the rate or amount of a tax
or fee or proposes an amendment to the Texas Constitution that would
raise or lower the rate or amount of a tax or fee; and
(2) for which a fiscal note is prepared indicating a
positive or negative impact on revenue of at least $100 million
during a period not to exceed five years.
(b) The dynamic fiscal impact statement must, based on
dynamic scoring principles, project for the five-year period
beginning on the proposed effective date of the change in the rate
or amount of the tax or fee the estimated fiscal and economic
impacts of raising or lowering the rate or amount of the tax or fee
as proposed, including the impact on:
(1) tax or fee receipts; and
(2) the costs of the specific program, if any, that the
tax or fee is designed to directly support.
(c) In this section, "dynamic scoring principles" means a
method of estimating the pace of economic growth or the change in
the aggregate level of economic output and incomes, in response to a
change in the rate or amount of a tax or fee, that takes into
consideration factors including:
(1) the direct impact on tax or fee receipts and, if
the tax or fee is designed to directly support a specific program,
on program costs;
(2) the effects on incentives to work, save, invest,
and conduct economic affairs;
(3) the resulting change in the overall level of
economic activity;
(4) the impact of the resulting higher or lower level
of economic activity on tax or fee receipts and, if the tax or fee is
designed to directly support a specific program, on program costs;
and
(5) a calculation of the net impact of the legislation
proposing the change on the unified budget.
(d) The dynamic fiscal impact statement must be attached to
the bill or resolution immediately following the fiscal note
attached under Section 314.003.
(e) On the fifth anniversary of the effective date of a bill
that becomes law for which a dynamic fiscal impact statement was
prepared under this section, the comptroller shall prepare and
submit to the presiding officer of each house of the legislature a
report that assesses the accuracy of the relevant fiscal note
prepared for the bill and the accuracy of the relevant dynamic
fiscal impact statement prepared for the bill.
SECTION 2. Section 314.004(c), Government Code, is amended
to read as follows:
(c) The impact statement must be attached to the bill or
resolution immediately following:
(1) the fiscal note attached under Section 314.003; or
(2) if a dynamic fiscal impact statement is prepared
under Section 314.005, the dynamic fiscal impact statement.
SECTION 3. This Act takes effect September 1, 2009.
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