Amend SB 645 by adding the following section to the bill,
appropriately numbered, and renumbering the existing sections of
the bill appropriately:
      SECTION ____.  Section 403.014, Government Code, is amended
to read as follows:
      Sec. 403.014.  REPORT ON EFFECT OF CERTAIN TAX PROVISIONS.
(a)  Before each regular session of the legislature, the
comptroller shall report to the legislature and the governor on the
effect, if it is possible to assess, of exemptions, discounts,
exclusions, special valuations, special accounting treatments,
special rates, and special methods of reporting relating to:
            (1)  sales, excise, and use tax under Chapter 151, Tax
Code;
            (2)  <, and exemptions from and special rates relating
to> franchise tax under Chapter 171, Tax Code;
            (3)  school district property taxes under Title 1, Tax
Code; and
            (4)  any other tax generating more than five percent of
state tax revenue in the prior fiscal year.
      (b)  The report must include:
            (1)  an analysis of each special provision that reduces
the amount of tax payable to include <and> an estimate of the loss
of revenue for a six-year period including the current fiscal
biennium and a citation of the statutory or legal authority for the
provision; and
            (2)  for provisions reducing revenue by more than one
percent of total revenue for a tax covered by this section, the
effect of each provision on the distribution of the tax burden by
income class and industry or business class, as appropriate.
      (c)  The report may include:
            (1)  an assessment of the intended purpose of the
provision and whether the provision is achieving that objective;
and
            (2)  a recommendation for retaining, eliminating, or
amending the provision.
      (d)  The report may be included in any other report made by
the comptroller.
      (e)  At the request of the chair of a committee of the senate
or house of representatives to which has been referred a bill or
resolution establishing, extending, or restricting an exemption,
discount, exclusion, special valuation, special accounting
treatment, special rate, or special method of reporting relating to
any state tax, the Legislative Budget Board with the assistance, as
requested, of the comptroller shall prepare a letter analysis of
the effect on the state's tax revenues that would result from the
passage of the bill or resolution.  The letter analysis shall
contain the same information as provided in Subsection (b), as
appropriate.
      (f) <(c)>  The comptroller and Legislative Budget Board may
request from any state officer or agency information necessary to
complete the report or letter analysis.  Each state officer or
agency shall cooperate with the comptroller and Legislative Budget
Board in providing information or analysis for the report or letter
analysis.