BILL ANALYSIS



C.S.H.J.R. 35
By: Uher
March 22, 1995
Committee Report (Substituted)


BACKGROUND

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 its related equipment
can cause a burden on the operation of these families' small
businesses.

PURPOSE

This joint resolution proposes a constitutional amendment which
would allow political subdivisions the option to exempt from ad
valorem taxation commercial fishing boats and related property used
in commercial fishing.

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 Article VIII, Texas Constitution, by adding
           Section 19b which would allow the governing body of a
           political subdivision to exempt boats and other
           equipment used in commercial fishing from ad valorem
           taxation.  It also allows for the legislature to provide
           for the administration of the exemption, including
           providing additional qualifications and limitations.

SECTION 2. Election Date:  November 7, 1995; 
           Specifies ballot language as follows: "The
           constitutional amendment authorizing the governing body
           of a political subdivision to exempt from ad valorem
           taxation boats and other equipment used primarily in the
           commercial taking of fish, shrimp, shellfish, and other
           marine life."

COMPARISON OF ORIGINAL TO SUBSTITUTE

H.J.R. 35 provides the legislature by general law to provide for
the exemption, while C.S.H.J.R. 35 allows the governing body of
each political subdivision to decide for itself.  Ballot language
is changed accordingly.

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.J.R.
35 was left pending before the committee.

On March 7, 1995, the committee approved C.S.H.J.R. 35 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.J.R. 35 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.J.R. 35 as substituted to the House
with the recommendation that it do pass.

     Testimony received in favor of the resolution:
           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 resolution:
           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