By Hirschi                                      H.B. No. 1972

      75R6208 MRB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the requirement that the Sunset Advisory Commission

 1-3     review certain tax exemptions.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 325, Government Code, is amended by

 1-6     adding  Section 325.006 to read as follows:

 1-7           Sec. 325.006.  REVIEW OF TAX EXEMPTIONS.  (a)  During 1998

 1-8     and every 12th year after that year, the commission  shall identify

 1-9     each tax exemption that is granted by or under state law and that

1-10     relates to a sales tax, property tax, or franchise tax and shall:

1-11                 (1)  analyze each exemption to:

1-12                       (A)  identify the kinds of persons who benefit

1-13     from the exemption;

1-14                       (B)  determine the amount of tax revenue that is

1-15     not collected by the state or local governments as a result of the

1-16     exemption; and

1-17                       (C)  determine whether changes to the exemption,

1-18     including a repeal or expansion of the exemption, would be in the

1-19     public interest;

1-20                 (2)  gather other information about the exemption that

1-21     the commission considers relevant to a thorough analysis of the

1-22     exemption; and

1-23                 (3)  prepare a report that summarizes the information

1-24     gathered under this subsection.

 2-1           (b)  Before February 1 of the year following the year in

 2-2     which the report is prepared, the commission shall file the report

 2-3     with the lieutenant governor, the speaker of the house of

 2-4     representatives, and the presiding officer of the standing

 2-5     committee in the house and senate that has primary jurisdiction

 2-6     over matters affecting tax  revenue.

 2-7           SECTION 2.  This Act takes effect September 1, 1997.

 2-8           SECTION 3.  The importance of this legislation and the

 2-9     crowded condition of the calendars in both houses create an

2-10     emergency and an imperative public necessity that the

2-11     constitutional rule requiring bills to be read on three several

2-12     days in each house be suspended, and this rule is hereby suspended.