Texas 2019 - 86th Regular

Texas House Bill HB3968 Compare Versions

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1	1	By: Turner of Tarrant H.B. No. 3968
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to a periodic review and expiration dates of state and
7	7	local tax preferences.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle B, Title 3, Government Code, is amended
10	10	by adding Chapter 320A to read as follows:
11	11	CHAPTER 320A. REVIEW OF STATE AND LOCAL TAX PREFERENCES
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 320A.001. DEFINITION. In this chapter, "tax
14	14	preference" means a credit, discount, exclusion, exemption,
15	15	refund, special valuation, special accounting treatment, special
16	16	rate, or special method of reporting authorized by state law that
17	17	relates to a state or local tax imposed in this state.
18	18	SUBCHAPTER B. SCHEDULE FOR PERIODIC REVIEW OF STATE AND LOCAL TAX
19	19	PREFERENCES
20	20	Sec. 320A.051. DEVELOPMENT AND BIENNIAL MODIFICATION OF
21	21	STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The
22	22	comptroller shall:
23	23	(1) identify each state tax preference and each type
24	24	of local tax preference;
25	25	(2) develop a state and local tax preference review
26	26	schedule under which each identified tax preference is reviewed
27	27	once during each six-year period; and
28	28	(3) specifically identify on the schedule each of the
29	29	tax preferences the Legislative Budget Board must review for
30	30	purposes of the next report due under Section 320A.151.
31	31	(b) Except as provided in Subsection (c), in developing the
32	32	schedule, the comptroller shall give priority to scheduling for
33	33	review the tax preferences that result in the greatest reduction in
34	34	revenue derived from the taxes to which the tax preferences relate.
35	35	(c) In developing the schedule, the comptroller may:
36	36	(1) schedule for review at the same time all tax
37	37	preferences authorized in the same chapter of the Tax Code; and
38	38	(2) schedule the initial review of a tax preference
39	39	that has an expiration date for any date the comptroller determines
40	40	is appropriate.
41	41	(d) The comptroller shall revise the schedule biennially
42	42	only to:
43	43	(1) add to the schedule a tax preference that was
44	44	enacted or authorized after the comptroller developed the most
45	45	recent schedule;
46	46	(2) delete from the schedule a tax preference that was
47	47	repealed or that expired after the comptroller developed the most
48	48	recent schedule;
49	49	(3) update the review dates of the tax preferences for
50	50	which reviews were conducted after the comptroller developed the
51	51	most recent schedule; and
52	52	(4) update the tax preferences identified under
53	53	Subsection (a)(3).
54	54	Sec. 320A.052. PUBLIC COMMENT. The comptroller shall
55	55	provide a process by which the public may comment on the state and
56	56	local tax preference review schedule under Section 320A.051. The
57	57	comptroller shall consider those comments in developing or revising
58	58	the schedule.
59	59	Sec. 320A.053. SCHEDULE PROVIDED TO LEGISLATIVE BUDGET
60	60	BOARD. Not later than December 1 of each odd-numbered year, the
61	61	comptroller shall provide the state and local tax preference review
62	62	schedule to the Legislative Budget Board.
63	63	SUBCHAPTER C. CONDUCT OF REVIEW OF STATE AND LOCAL TAX PREFERENCES
64	64	Sec. 320A.101. PERIODIC REVIEW OF TAX PREFERENCES. The
65	65	Legislative Budget Board shall periodically review each state tax
66	66	preference and each type of local tax preference according to the
67	67	state and local tax preference review schedule provided by the
68	68	comptroller under Section 320A.053. In reviewing a tax preference,
69	69	the board shall:
70	70	(1) determine the intended purpose of the tax
71	71	preference; and
72	72	(2) evaluate:
73	73	(A) whether the tax preference accomplishes its
74	74	intended purpose;
75	75	(B) whether the tax preference is inefficient,
76	76	ineffective, or unnecessary, or the intended purpose of the tax
77	77	preference is a low priority for this state; and
78	78	(C) the effect of the tax preference on economic
79	79	development, the number of high-wage jobs, funding for public
80	80	services, the distribution of the tax burden by income class and
81	81	industry or business class, and total income by income class in this
82	82	state.
83	83	Sec. 320A.102. COOPERATION BY OTHER STATE ENTITIES. The
84	84	Legislative Budget Board may request assistance from the
85	85	comptroller or any other state agency, department, or office if the
86	86	board needs assistance to perform the review required by Section
87	87	320A.101. The comptroller or other agency, department, or office
88	88	shall provide the requested assistance.
89	89	SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES
90	90	Sec. 320A.151. PRELIMINARY REPORT. Not later than
91	91	September 1 of each even-numbered year, the Legislative Budget
92	92	Board shall provide to the presiding officers of the senate finance
93	93	committee, or its successor, and the house ways and means
94	94	committee, or its successor, a preliminary report on the reviews of
95	95	tax preferences identified under Section 320A.051(a)(3). The
96	96	report must include drafts of any proposed legislation needed to
97	97	implement the board's recommendations.
98	98	Sec. 320A.152. FINAL REPORT. (a) The senate finance
99	99	committee, or its successor, and the house ways and means
100	100	committee, or its successor, shall review and may modify the
101	101	preliminary report and proposed legislation provided to the
102	102	committees under Section 320A.151.
103	103	(b) Not later than December 1 of each even-numbered year,
104	104	the senate finance committee, or its successor, and the house ways
105	105	and means committee, or its successor, shall provide to the
106	106	governor, the lieutenant governor, and the speaker of the house of
107	107	representatives a final report on the reviews of tax preferences
108	108	identified under Section 320A.051(a)(3). The final report must
109	109	include:
110	110	(1) as to each tax preference examined, a
111	111	recommendation to:
112	112	(A) continue the tax preference;
113	113	(B) amend a provision relating to the tax
114	114	preference; or
115	115	(C) repeal the tax preference;
116	116	(2) a complete explanation of each recommendation;
117	117	(3) proposed legislation necessary to implement the
118	118	findings of the final report; and
119	119	(4) a description of any deviations from the
120	120	preliminary report provided under Section 320A.151 that are made by
121	121	the final report, and a description of the reasons for each
122	122	deviation.
123	123	Sec. 320A.153. PUBLIC HEARING ON FINAL REPORT. The senate
124	124	finance committee, or its successor, and the house ways and means
125	125	committee, or its successor, shall hold a joint public hearing on
126	126	the final report and proposed legislation provided under Section
127	127	320A.152.
128	128	SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES
129	129	Sec. 320A.201. EXPIRATION; REQUIRED STATEMENT. (a) Each
130	130	tax preference enacted by the legislature that becomes law on or
131	131	after September 1, 2020:
132	132	(1) expires six years after the date the tax
133	133	preference takes effect, unless the legislature provides for an
134	134	earlier or later expiration date; and
135	135	(2) must include the following statement: "This tax
136	136	preference expires six years after its effective date unless the
137	137	legislature provides for an earlier or later expiration date."
138	138	(b) A tax preference to which Subsection (a) applies that
139	139	does not include the statement required by Subsection (a)(2)
140	140	expires as provided by Subsection (a)(1).
141	141	SECTION 2. The comptroller of public accounts shall submit
142	142	the initial state and local tax preference review schedule required
143	143	by Section 320A.053, Government Code, as added by this Act, not
144	144	later than January 15, 2020.
145	145	SECTION 3. The Legislative Budget Board shall submit the
146	146	initial preliminary report required by Section 320A.151,
147	147	Government Code, as added by this Act, not later than September 1,
148	148	2020.
149	149	SECTION 4. The senate finance committee and the house ways
150	150	and means committee shall submit the initial final report required
151	151	by Section 320A.152, Government Code, as added by this Act, not
152	152	later than December 1, 2020.
153	153	SECTION 5. This Act takes effect January 1, 2020, but only
154	154	if the constitutional amendment proposed by the 86th Legislature,
155	155	Regular Session, 2019, requiring the legislature to provide for a
156	156	periodic review of state and local tax preferences and providing
157	157	for the expiration of certain tax preferences six years after their
158	158	effective dates or at another time prescribed by the legislature is
159	159	approved by the voters. If that amendment is not approved by the
160	160	voters, this Act has no effect.