BILL ANALYSIS



C.S.H.B. 399
By: Uher
March 22, 1995
Committee Report (Substituted)


BACKGROUND

Chapter 11, Tax Code, provides for property tax exemptions. 
Currently, many of the smaller commercial fishing operations are
family owned and operated, using only one boat that is typically
less than 100 feet in length and is taxed as real and tangible
personal property.  With the inconsistent nature of commercial
fishing, the taxes imposed on these boats and related equipment can
cause a burden on the operation of these families' small business.

PURPOSE

This bill provides political subdivisions the option of exempting
commercial fishing boats not exceeding 100 feet in length and
related equipment from ad valorem taxes.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter B, Chapter 11, Tax Code, by adding
           Section 11.162 COMMERCIAL FISHING EQUIPMENT.

           (a)  The governing body of a political subdivision, may
           exempt from taxation a boat used in commercial fishing
           when the fish and other marine items are resold for
           human consumption.

           (b)  Exempts nets and other equipment used in connection
           with the fishing activities described in Subsection (a).

           (c)  Defines "boat" as a vessel that does not exceed 100
           feet in length.

SECTION 2. Amends Section 11.43(c), Tax Code to make conforming
           language change.

SECTION 3. Effective date: January 1, 1996, only if the
           accompanying constitutional amendment is approved by the
           voters.

SECTION 4. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

H.B. 399 provides the legislature by general law to provide for the
exemption, while C.S.H.B. 399 allows the governing body of each
political subdivision to decide for itself.







SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance to the rules and a public
hearing was held on February 28, 1995.  Without objection, H.B. 399
was left pending before the committee.

On March 7, 1995, the committee approved C.S.H.B. 399 by
Representative Craddick without objection.  By a record vote of 7
ayes, 0 nays, 0 present not voting and 4 absent, the committee
voted to report H.B. 399 as substituted to the House with the
recommendation that it do pass.  Representative Horn moved to
reconsider the vote. Without objection, the motion prevailed.  By
a record vote of 7 ayes, 1 nay, 0 present not voting and 3 absent,
the committee voted to report H.B. 399 as substituted to the House
with the recommendation that it do pass.

     Testimony received in favor of the bill:
           Pete V. Aparicio, representing himself
           Craig Wallis, representing himself
           Wilma Anderson, representing herself and the Texas
           Shrimp Assn.
           Muriel Tipps, representing herself
           Julius Collins, representing himself and the
           Brownsville-Pt. Isabel Shrimp         Producers Assn.
           Jim Sagnes, representing himself and Everett "Red"
           Sagnes
           Terry Ricks, representing himself
           Jannet Bardwell, representing herself
           Sandra Schweizer, representing himself

     Testimony received against the bill:
           J.M. Attaway, Jr., representing himself
           Kathryn Vermillion, representing herself and Aransas
           Pass ISD, City of Aransas    Pass
           Frank Battle, representing the Texas Assn. of School
           Boards
           George H. Moff, representing himself