SRC-HRD S.B. 1778 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1778
By: Shapleigh
Finance
4-2-97
As Filed


DIGEST 

Currently, the comptroller is not required to report to the legislature
and governor prior to the legislative session regarding the overall
incidence of each state tax, nor is the Legislative Budget Board, during
session, required to prepare an incidence impact analysis of a bill or
resolution that would affect taxes by more than $20,000,000.  This bill
would require the comptroller, prior to session, and the Legislative
Budget Board, during session at the request of a committee chair, to
identify the impact of the current tax system and proposed changes through
"tax incidence analysis," which illustrates how current and proposed taxes
affect different segments of the Texas population. 

PURPOSE

As proposed, S.B. 1778 requires the comptroller to report to the
legislature and governor before each regular legislative session an
analysis on the overall incidence of state tax.  In addition, this bill
requires the Legislative Budget Board, at the request of a committee
chair, to prepare an incidence impact analysis of a bill or resolution
that would increase, decrease, or redistribute tax by more than
$20,000,000.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 403B, Government Code, by adding Section
403.0141, as follows: 

Sec. 403.0141.  REPORT ON INCIDENCE OF TAX.  Requires the comptroller,
before each regular session of the legislature, to report to the
legislature and the governor on the overall incidence of each state tax,
including but not limited to certain taxes.  Requires the analysis to
report on the distribution of the tax burden.  Requires the Legislative
Budget Board, with the assistance, as requested, of the comptroller, to
prepare an incidence impact analysis of the bill or resolution, 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 to change
the tax system which would increase, decrease, or redistribute tax by more
than $20,000,000.  Requires the analysis to report on the incidence impact
analysis under Subsections (a) and (b).  Set forth additional requirements
regarding the analysis. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.