Texas 2015 - 84th Regular

Texas Senate Bill SB868 Compare Versions

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

Old	New	Differences
1	1	84R9029 TJB-F
2	2	By: Ellis S.B. No. 868
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. DEFINITION. In this chapter, "tax
15	15	preference" means a credit, discount, exclusion, exemption,
16	16	refund, special valuation, special accounting treatment, special
17	17	rate, or special method of reporting authorized by state law that
18	18	relates to a state or local tax imposed in this state.
19	19	SUBCHAPTER B. SCHEDULE FOR PERIODIC REVIEW OF STATE AND LOCAL TAX
20	20	PREFERENCES
21	21	Sec. 320A.051. DEVELOPMENT AND BIENNIAL MODIFICATION OF
22	22	STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The
23	23	comptroller shall:
24	24	(1) identify each state tax preference and each type
25	25	of local tax preference;
26	26	(2) develop a state and local tax preference review
27	27	schedule under which each identified tax preference is reviewed
28	28	once during each six-year period; and
29	29	(3) specifically identify on the schedule each of the
30	30	tax preferences the Legislative Budget Board must review for
31	31	purposes of the next report due under Section 320A.151.
32	32	(b) Except as provided in Subsection (c), in developing the
33	33	schedule, the comptroller shall give priority to scheduling for
34	34	review the tax preferences that result in the greatest reduction in
35	35	revenue derived from the taxes to which the tax preferences relate.
36	36	(c) In developing the schedule, the comptroller may:
37	37	(1) schedule for review at the same time all tax
38	38	preferences authorized in the same chapter of the Tax Code; and
39	39	(2) schedule the initial review of a tax preference
40	40	that has an expiration date for any date the comptroller determines
41	41	is appropriate.
42	42	(d) The comptroller shall revise the schedule biennially
43	43	only to:
44	44	(1) add to the schedule a tax preference that was
45	45	enacted or authorized after the comptroller developed the most
46	46	recent schedule;
47	47	(2) delete from the schedule a tax preference that was
48	48	repealed or that expired after the comptroller developed the most
49	49	recent schedule;
50	50	(3) update the review dates of the tax preferences for
51	51	which reviews were conducted after the comptroller developed the
52	52	most recent schedule; and
53	53	(4) update the tax preferences identified under
54	54	Subsection (a)(3).
55	55	Sec. 320A.052. PUBLIC COMMENT. The comptroller shall
56	56	provide a process by which the public may comment on the state and
57	57	local tax preference review schedule under Section 320A.051. The
58	58	comptroller shall consider those comments in developing or revising
59	59	the schedule.
60	60	Sec. 320A.053. SCHEDULE PROVIDED TO LEGISLATIVE BUDGET
61	61	BOARD. Not later than December 1 of each odd-numbered year, the
62	62	comptroller shall provide the state and local tax preference review
63	63	schedule to the Legislative Budget Board.
64	64	SUBCHAPTER C. REVIEW OF STATE AND LOCAL TAX PREFERENCES
65	65	Sec. 320A.101. PERIODIC REVIEW OF TAX PREFERENCES. The
66	66	Legislative Budget Board shall periodically review each state tax
67	67	preference and each type of local tax preference according to the
68	68	state and local tax preference review schedule provided by the
69	69	comptroller under Section 320A.053. In reviewing a tax preference,
70	70	the board shall:
71	71	(1) summarize the legislative history of the tax
72	72	preference;
73	73	(2) estimate the amount of lost tax revenue
74	74	attributable to the tax preference during the preceding six-year
75	75	period, including the percent reduction in the tax revenue of the
76	76	related state or local tax, using amounts reported by the
77	77	comptroller under Section 403.014, if available;
78	78	(3) determine the effect of the tax preference on the
79	79	distribution of the tax burden by income class and industry or
80	80	business class during the preceding six-year period, using amounts
81	81	reported and data analyzed by the comptroller under Sections
82	82	403.014 and 403.0141, if available; and
83	83	(4) evaluate, for a tax preference that reduces by
84	84	more than one percent the total revenue of the related state or
85	85	local tax, the fiscal impact of the tax preference during the
86	86	preceding and following six-year periods, based on a cost-benefit
87	87	analysis of the general effects of the tax preference on the overall
88	88	state economy, including the effects on:
89	89	(A) job creation by industry sector;
90	90	(B) average wage by industry sector;
91	91	(C) gross state product by industry sector;
92	92	(D) business expenditures by industry sector;
93	93	and
94	94	(E) personal consumption by income class.
95	95	Sec. 320A.102. COOPERATION BY OTHER STATE ENTITIES. (a)
96	96	The Legislative Budget Board may request assistance from the
97	97	comptroller or any other state agency, department, or office if the
98	98	board needs assistance to perform the review required by Section
99	99	320A.101. The comptroller or other agency, department, or office
100	100	shall provide the requested assistance.
101	101	(b) Notwithstanding Section 111.006, Tax Code, or other
102	102	law, the comptroller shall provide to the Legislative Budget Board
103	103	complete electronic access to tax files maintained by the
104	104	comptroller, as the staff of the board determines necessary to
105	105	perform a review required by Section 320A.101. An employee of the
106	106	board that accesses tax files maintained by the comptroller is
107	107	subject to the same duties and requirements regarding
108	108	confidentiality as an employee of the comptroller who accesses the
109	109	files.
110	110	SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES
111	111	Sec. 320A.151. PRELIMINARY REPORT. Not later than
112	112	September 1 of each even-numbered year, the Legislative Budget
113	113	Board shall provide to the presiding officers of the senate finance
114	114	committee, or its successor, and the house ways and means
115	115	committee, or its successor, a preliminary report on the reviews of
116	116	tax preferences identified under Section 320A.051(a)(3). The
117	117	report must include drafts of any proposed legislation needed to
118	118	implement the board's recommendations.
119	119	Sec. 320A.152. FINAL REPORT. (a) The senate finance
120	120	committee, or its successor, and the house ways and means
121	121	committee, or its successor, shall review and may modify the
122	122	preliminary report and proposed legislation provided to the
123	123	committees under Section 320A.151.
124	124	(b) Not later than December 1 of each even-numbered year,
125	125	the senate finance committee, or its successor, and the house ways
126	126	and means committee, or its successor, shall provide to the
127	127	governor, the lieutenant governor, and the speaker of the house of
128	128	representatives a final report on the reviews of tax preferences
129	129	identified under Section 320A.051(a)(3). The final report must
130	130	include:
131	131	(1) as to each tax preference examined, a
132	132	recommendation to:
133	133	(A) continue the tax preference;
134	134	(B) amend a provision relating to the tax
135	135	preference; or
136	136	(C) repeal the tax preference;
137	137	(2) a complete explanation of each recommendation;
138	138	(3) proposed legislation necessary to implement the
139	139	findings of the final report; and
140	140	(4) a description of any deviations from the
141	141	preliminary report provided under Section 320A.151 that are made by
142	142	the final report, and a description of the reasons for each
143	143	deviation.
144	144	Sec. 320A.153. PUBLIC HEARING ON FINAL REPORT. The senate
145	145	finance committee, or its successor, and the house ways and means
146	146	committee, or its successor, shall hold a joint public hearing on
147	147	the final report and proposed legislation provided under Section
148	148	320A.152.
149	149	SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES
150	150	Sec. 320A.201. EXPIRATION; REQUIRED STATEMENT. (a) Each
151	151	tax preference enacted by the legislature that becomes law on or
152	152	after September 1, 2016:
153	153	(1) expires six years after the date the tax
154	154	preference takes effect, unless the legislature provides for an
155	155	earlier or later expiration date; and
156	156	(2) must include the following statement: "This tax
157	157	preference expires six years after its effective date unless the
158	158	legislature provides for an earlier or later expiration date."
159	159	(b) A tax preference to which Subsection (a) applies that
160	160	does not include the statement required by Subsection (a)(2)
161	161	expires as provided by Subsection (a)(1).
162	162	SECTION 2. The comptroller of public accounts shall submit
163	163	the initial state and local tax preference review schedule required
164	164	by Section 320A.053, Government Code, as added by this Act, not
165	165	later than January 15, 2016.
166	166	SECTION 3. The Legislative Budget Board shall submit the
167	167	initial preliminary report required by Section 320A.151,
168	168	Government Code, as added by this Act, not later than September 1,
169	169	2016.
170	170	SECTION 4. The senate finance committee and the house ways
171	171	and means committee shall submit the initial final report required
172	172	by Section 320A.152, Government Code, as added by this Act, not
173	173	later than December 1, 2016.
174	174	SECTION 5. This Act takes effect January 1, 2016, but only
175	175	if the constitutional amendment proposed by the 84th Legislature,
176	176	Regular Session, 2015, requiring the legislature to provide for a
177	177	periodic review of state and local tax preferences and providing
178	178	for the expiration of certain tax preferences six years after their
179	179	effective dates or at another time prescribed by the legislature is
180	180	approved by the voters. If that amendment is not approved by the
181	181	voters, this Act has no effect.