Texas 2021 - 87th Regular

Texas House Bill HB3328 Compare Versions

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

Old	New	Differences
1	1	87R2330 SRA-F
2	2	By: Bernal H.B. No. 3328
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the 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.0001. 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.0051. 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 local
25	25	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 preliminary report required by Section
32	32	320A.0151.
33	33	(b) Except as provided by Subsection (c), in developing the
34	34	schedule, the comptroller shall give priority to scheduling for
35	35	review the tax preferences that result in the greatest reduction in
36	36	revenue derived from the taxes to which the tax preferences relate.
37	37	(c) In developing the schedule, the comptroller may
38	38	schedule:
39	39	(1) all tax preferences authorized in the same chapter
40	40	of the Tax Code for review at the same time; and
41	41	(2) the initial review of a tax preference that has an
42	42	expiration date for any date the comptroller determines is
43	43	appropriate.
44	44	(d) The comptroller shall revise the schedule biennially
45	45	only to:
46	46	(1) add to the schedule a tax preference that was
47	47	enacted or authorized after the comptroller developed the most
48	48	recent schedule;
49	49	(2) delete from the schedule a tax preference that was
50	50	repealed or that expired after the comptroller developed the most
51	51	recent schedule;
52	52	(3) update the review dates of the tax preferences for
53	53	which reviews were conducted after the comptroller developed the
54	54	most recent schedule; and
55	55	(4) update the tax preferences identified under
56	56	Subsection (a)(3).
57	57	Sec. 320A.0052. PUBLIC COMMENT. The comptroller shall
58	58	provide a process by which the public may comment on the state and
59	59	local tax preference review schedule under Section 320A.0051. The
60	60	comptroller shall consider those comments in developing or revising
61	61	the schedule.
62	62	Sec. 320A.0053. SCHEDULE PROVIDED TO LEGISLATIVE BUDGET
63	63	BOARD. Not later than December 1 of each odd-numbered year, the
64	64	comptroller shall provide the state and local tax preference review
65	65	schedule under Section 320A.0051 to the Legislative Budget Board.
66	66	SUBCHAPTER C. REVIEW OF STATE AND LOCAL TAX PREFERENCES
67	67	Sec. 320A.0101. PERIODIC REVIEW OF TAX PREFERENCES. The
68	68	Legislative Budget Board shall periodically review each state tax
69	69	preference and each local tax preference according to the state and
70	70	local tax preference review schedule the comptroller provides under
71	71	Section 320A.0053. In reviewing a tax preference, the board shall:
72	72	(1) determine the intended purpose of the tax
73	73	preference; and
74	74	(2) evaluate:
75	75	(A) whether the tax preference accomplishes its
76	76	intended purpose;
77	77	(B) whether the tax preference is inefficient,
78	78	ineffective, or unnecessary, or the intended purpose of the tax
79	79	preference is a low priority for this state; and
80	80	(C) the effect of the tax preference on economic
81	81	development, the number of high-wage jobs, funding for public
82	82	services, the distribution of the tax burden by income class and
83	83	industry or business class, and total income by income class in this
84	84	state.
85	85	Sec. 320A.0102. ADMINISTRATIVE SUPPORT. As requested by
86	86	the Legislative Budget Board, a state governmental entity shall
87	87	provide administrative support to the board as reasonable and
88	88	necessary for the board to perform the review required by Section
89	89	320A.0101.
90	90	SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES
91	91	Sec. 320A.0151. PRELIMINARY REPORT. Not later than
92	92	September 1 of each even-numbered year, the Legislative Budget
93	93	Board shall provide to the Senate Finance Committee, or its
94	94	successor, and the House Ways and Means Committee, or its
95	95	successor, a preliminary report on the reviews of tax preferences
96	96	conducted under Section 320A.0101. The report must include drafts
97	97	of any proposed legislation needed to implement the board's
98	98	recommendations.
99	99	Sec. 320A.0152. FINAL REPORT. The Senate Finance
100	100	Committee, or its successor, and the House Ways and Means
101	101	Committee, or its successor, shall review and may modify the
102	102	preliminary report and proposed legislation provided to the
103	103	committees under Section 320A.0151. Not later than December 1 of
104	104	each even-numbered year, the committees shall provide to the
105	105	governor, the lieutenant governor, and the speaker of the house of
106	106	representatives a final report on the reviews of tax preferences.
107	107	The final report must include:
108	108	(1) with respect to each tax preference examined, a
109	109	recommendation to:
110	110	(A) continue the tax preference;
111	111	(B) amend a provision relating to the tax
112	112	preference; or
113	113	(C) repeal the tax preference;
114	114	(2) a complete explanation of each recommendation
115	115	under Subdivision (1);
116	116	(3) proposed legislation necessary to implement the
117	117	findings of the final report; and
118	118	(4) a description of any changes to the preliminary
119	119	report that were made in the final report, including a description
120	120	of the reasons for each change.
121	121	Sec. 320A.0153. PUBLIC HEARING ON FINAL REPORT. The Senate
122	122	Finance Committee, or its successor, and the House Ways and Means
123	123	Committee, or its successor, shall hold a joint public hearing on
124	124	the final report and proposed legislation provided under Section
125	125	320A.0152.
126	126	SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES
127	127	Sec. 320A.0201. EXPIRATION; REQUIRED STATEMENT. (a) A tax
128	128	preference that becomes law on or after January 1, 2022, expires
129	129	six years after the date the tax preference takes effect, unless the
130	130	legislature provides for an earlier or later expiration date. The
131	131	law enacting a tax preference described by this subsection must
132	132	include the following statement: "This tax preference expires six
133	133	years after its effective date unless the legislature provides for
134	134	an earlier or later expiration date." A tax preference described by
135	135	this subsection that does not include the required statement
136	136	expires as provided by this subsection.
137	137	(b) A tax preference that became law before January 1, 2022,
138	138	and that remains in effect on that date expires January 1, 2028,
139	139	unless the legislature provides for an earlier or later expiration
140	140	date.
141	141	SECTION 2. (a) Notwithstanding Section 320A.0053,
142	142	Government Code, as added by this Act, the comptroller of public
143	143	accounts shall submit the initial state and local tax preference
144	144	review schedule required by that section not later than January 15,
145	145	2022.
146	146	(b) The Legislative Budget Board shall submit the initial
147	147	preliminary report required by Section 320A.0151, Government Code,
148	148	as added by this Act, not later than September 1, 2022.
149	149	(c) The Senate Finance Committee and the House Ways and
150	150	Means Committee shall submit the initial final report required by
151	151	Section 320A.0152, Government Code, as added by this Act, not later
152	152	than December 1, 2022.
153	153	SECTION 3. This Act takes effect January 1, 2022, but only
154	154	if the constitutional amendment proposed by the 87th Legislature,
155	155	Regular Session, 2021, 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 those tax preferences after six years, or at
158	158	another time prescribed by the legislature, is approved by the
159	159	voters. If that amendment is not approved by the voters, this Act
160	160	has no effect.