Texas 2015 - 84th Regular

Texas House Bill HB2378 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R2822 TJB-D
2	2	By: Dutton H.B. No. 2378
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a periodic review and expiration dates of state and
8	8	local tax preferences.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 3, Government Code, is amended
11	11	by adding Chapter 320A to read as follows:
12	12	CHAPTER 320A. REVIEW OF STATE AND LOCAL TAX PREFERENCES
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 320A.001. DEFINITIONS. In this chapter:
15	15	(1) "Commission" means the select commission on
16	16	periodic tax preference review.
17	17	(2) "Tax preference" means an abatement, credit,
18	18	discount, exclusion, exemption, limitation on appraised value,
19	19	refund, special valuation, special accounting treatment, special
20	20	appraisal method or provision, special rate, or special method of
21	21	reporting authorized by state law or the state constitution that
22	22	relates to a state or local tax imposed in this state.
23	23	SUBCHAPTER B. SELECT COMMISSION ON PERIODIC TAX PREFERENCE REVIEW
24	24	Sec. 320A.051. COMPOSITION OF COMMISSION. The select
25	25	commission on periodic tax preference review is composed of:
26	26	(1) five members of the house of representatives,
27	27	appointed by the speaker of the house of representatives;
28	28	(2) five members of the senate, appointed by the
29	29	lieutenant governor; and
30	30	(3) the comptroller.
31	31	Sec. 320A.052. TERMS. The members of the commission serve
32	32	two-year terms that expire December 31 of each even-numbered year.
33	33	Sec. 320A.053. VACANCY. If a vacancy occurs, the
34	34	individual who originally appointed the vacating member or the
35	35	individual's successor shall appoint an individual to fill the
36	36	vacancy for the remainder of the unexpired term.
37	37	Sec. 320A.054. OFFICERS. (a) The speaker of the house of
38	38	representatives shall select one member of the commission appointed
39	39	under Section 320A.051(1) to serve as chair of the commission.
40	40	(b) The lieutenant governor shall select one member of the
41	41	commission appointed under Section 320A.051(2) to serve as vice
42	42	chair of the commission.
43	43	Sec. 320A.055. MEETINGS. The commission shall meet at the
44	44	call of the chair.
45	45	Sec. 320A.056. STAFF. On the commission's request, the
46	46	Legislative Budget Board, the Texas Legislative Council, the office
47	47	of the governor, the comptroller, the senate, and the house of
48	48	representatives shall provide staff to assist the commission in
49	49	performing the commission's duties.
50	50	Sec. 320A.057. COOPERATION BY OTHER STATE ENTITIES. The
51	51	commission may request the assistance of any state agency,
52	52	department, or office if the commission needs assistance to perform
53	53	the commission's duties. The agency, department, or office shall
54	54	provide the requested assistance.
55	55	Sec. 320A.058. EXPENSES. The operating expenses of the
56	56	commission shall be paid from available funds of the office of the
57	57	governor and the contingent expense funds of the senate and the
58	58	house of representatives, as agreed by those entities. The
59	59	commission members are entitled to reimbursement from those funds
60	60	for expenses incurred by the members in implementing this chapter.
61	61	SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION
62	62	Sec. 320A.101. DEVELOPMENT AND BIENNIAL MODIFICATION OF
63	63	STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The commission
64	64	shall:
65	65	(1) identify each state tax preference and each type
66	66	of local tax preference;
67	67	(2) develop a state and local tax preference review
68	68	schedule under which each identified tax preference is reviewed
69	69	once during each six-year period; and
70	70	(3) specifically identify on the schedule:
71	71	(A) each of the tax preferences the commission
72	72	must review for purposes of the next report due under Section
73	73	320A.153;
74	74	(B) any tax preference described by Paragraph (A)
75	75	that reduces by less than one-fourth of one percent the total
76	76	revenue derived from the tax to which the tax preference applies and
77	77	that the commission recommends for an abbreviated review; and
78	78	(C) the components of the review specified by
79	79	Section 320A.104 that the commission recommends are unnecessary
80	80	with respect to a tax preference recommended for an abbreviated
81	81	review.
82	82	(b) In developing the schedule, the commission shall
83	83	schedule the tax preferences for review in the order in which the
84	84	tax preferences were enacted or authorized, except that the
85	85	commission may schedule the initial review of a tax preference that
86	86	has an expiration date for any date the commission determines is
87	87	appropriate.
88	88	(c) The commission shall revise the schedule biennially
89	89	only to:
90	90	(1) add to the schedule a tax preference that was
91	91	enacted or authorized after the commission developed the most
92	92	recent schedule;
93	93	(2) delete from the schedule a tax preference that was
94	94	repealed after the commission developed the most recent schedule;
95	95	(3) update the review dates of the tax preferences for
96	96	which reviews were conducted after the commission developed the
97	97	most recent schedule; and
98	98	(4) update the tax preferences identified under
99	99	Subsection (a)(3).
100	100	Sec. 320A.102. PUBLIC COMMENT. The commission shall
101	101	provide a process by which the public may comment on the state and
102	102	local tax preference review schedule under Section 320A.101. The
103	103	commission shall consider those comments in developing or revising
104	104	the schedule.
105	105	Sec. 320A.103. COMPLETION OF SCHEDULE. The state and local
106	106	tax preference review schedule must be completed not later than
107	107	December 1 of each odd-numbered year.
108	108	Sec. 320A.104. PERIODIC REVIEW OF STATE AND LOCAL TAX
109	109	PREFERENCES. The commission shall review each state tax preference
110	110	and each type of local tax preference according to the state and
111	111	local tax preference review schedule developed under Section
112	112	320A.101. In reviewing a tax preference, the commission shall:
113	113	(1) determine the intended purpose of the tax
114	114	preference; and
115	115	(2) evaluate:
116	116	(A) whether the tax preference accomplishes its
117	117	intended purpose;
118	118	(B) whether the intended purpose of the tax
119	119	preference could be accomplished through a more cost-effective
120	120	method; and
121	121	(C) the effect of the tax preference on economic
122	122	development in this state.
123	123	SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES
124	124	Sec. 320A.151. PRELIMINARY REPORT. Not later than
125	125	September 1 of each even-numbered year, the commission shall file a
126	126	preliminary report on the reviews of tax preferences identified
127	127	under Section 320A.101(a)(3)(A) with the senate finance committee
128	128	and the house ways and means committee. The report must include
129	129	drafts of any proposed legislation needed to implement the
130	130	commission's recommendations.
131	131	Sec. 320A.152. REVIEW AND COMMENT. The senate finance
132	132	committee and the house ways and means committee may review the
133	133	preliminary report and proposed legislation and submit comments to
134	134	the commission. Comments must be submitted not later than October
135	135	15 of each even-numbered year.
136	136	Sec. 320A.153. FINAL REPORT. (a) The commission may modify
137	137	the preliminary report and proposed legislation in response to the
138	138	comments received under Section 320A.152.
139	139	(b) Not later than December 1 of each even-numbered year,
140	140	the commission shall provide to the governor and the presiding
141	141	officers of the senate finance committee and the house ways and
142	142	means committee a final report on the reviews of tax preferences
143	143	identified under Section 320A.101(a)(3)(A) and proposed
144	144	legislation necessary to implement the commission's
145	145	recommendations.
146	146	Sec. 320A.154. PUBLIC HEARING ON FINAL REPORT. The senate
147	147	finance committee and the house ways and means committee shall hold
148	148	a joint public hearing on the final report and proposed legislation
149	149	provided under Section 320A.153.
150	150	SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES
151	151	Sec. 320A.201. EXPIRATION; REQUIRED STATEMENT. (a) A tax
152	152	preference included in a final report expires on the second
153	153	anniversary of the date the final report is submitted under Section
154	154	320A.153(b) unless reauthorized by law.
155	155	(b) Each tax preference enacted or reauthorized by an act of
156	156	the legislature that becomes law on or after September 1, 2016, must
157	157	state the expiration date of the preference and provide that the
158	158	preference expires on that date. The expiration date may not be
159	159	later than the sixth anniversary of the effective date of the law
160	160	enacting or reauthorizing the tax preference.
161	161	(c) A tax preference to which Subsection (b) applies that
162	162	does not include the provision required by that subsection expires
163	163	on the sixth anniversary of the effective date of the law enacting
164	164	or reauthorizing the preference.
165	165	SECTION 2. The lieutenant governor and the speaker of the
166	166	house of representatives shall appoint the initial members of the
167	167	select commission on periodic tax preference review not later than
168	168	January 5, 2016. Notwithstanding Section 320A.052, Government
169	169	Code, as added by this Act, the terms of the initial members of the
170	170	commission expire December 31, 2016.
171	171	SECTION 3. Notwithstanding Section 320A.103, Government
172	172	Code, as added by this Act, the select commission on periodic tax
173	173	preference review shall submit:
174	174	(1) the initial state and local tax preference review
175	175	schedule required by that section not later than January 15, 2016;
176	176	(2) the initial preliminary report required by Section
177	177	320A.151, Government Code, as added by this Act, not later than
178	178	September 1, 2016; and
179	179	(3) the initial final report required by Section
180	180	320A.153, Government Code, as added by this Act, not later than
181	181	December 1, 2016.
182	182	SECTION 4. This Act takes effect January 1, 2016, but only
183	183	if the constitutional amendment proposed by the 84th Legislature,
184	184	Regular Session, 2015, requiring the legislature to provide for a
185	185	periodic review of state and local tax preferences and providing
186	186	for the expiration of certain tax preferences six years after the
187	187	effective dates of the laws enacting or reauthorizing the
188	188	preferences, or at another time prescribed by the legislature,
189	189	unless reauthorized by law, is approved by the voters. If that
190	190	amendment is not approved by the voters, this Act has no effect.