By Maxey                                        H.B. No. 2719

      75R7343 SMH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to a study of the state tax structure and tax laws and the

 1-3     repeal of certain tax laws.

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

 1-5           SECTION 1.  DEFINTION.  In this Act, "committee" means the

 1-6     Select Committee on Taxation.

 1-7           SECTION 2.  COMPOSITION OF COMMITTEE.  The committee is

 1-8     composed of:

 1-9                 (1)  the chairs of:

1-10                       (A)  the Senate Committee on Finance;

1-11                       (B)  the Senate Committee on Education;

1-12                       (C)  the Senate Committee on Economic

1-13     Development;

1-14                       (D)  the Senate Committee on State Affairs;

1-15                       (E)  the House Committee on Ways and Means;

1-16                       (F)  the House Committee on Appropriations;

1-17                       (G)  the House Committee on Public Education; and

1-18                       (H)  the House Committee on State Affairs;

1-19                 (2)  the member of each committee listed in Subdivision

1-20     (1) of this section who has the highest legislative seniority and

1-21     is not a member of the same political party as the chair of that

1-22     committee;

1-23                 (3)  two members of the senate appointed by the

1-24     lieutenant governor who are not described by Subdivision (1) or (2)

 2-1     of this section;

 2-2                 (4)  two members of the house of representatives

 2-3     appointed by the speaker of the house of representatives who are

 2-4     not described by Subdivision (1) or (2) of this section; and

 2-5                 (5)  two homeowners, two residential tenants, two small

 2-6     business owners, and two other representatives of business

 2-7     appointed jointly by the lieutenant governor and the speaker of the

 2-8     house of representatives.

 2-9           SECTION 3.  COMMITTEE CO-CHAIRS.  The lieutenant governor

2-10     shall designate one co-chair of the committee, and the speaker of

2-11     the house of representatives shall designate the other co-chair of

2-12     the committee.

2-13           SECTION 4.  MEETINGS.  The committee shall meet at the call

2-14     of the co-chairs of the committee.

2-15           SECTION 5.  STAFF.  The staff of the Legislative Budget Board

2-16     shall serve as the staff of the committee.

2-17           SECTION 6.  COOPERATION BY OTHER STATE OFFICERS AND AGENCIES.

2-18     Each state officer and the head of each state agency, department,

2-19     or institution shall ensure that the committee has access to any

2-20     documentation or agency personnel the committee requests.

2-21           SECTION 7.  REIMBURSEMENT FOR EXPENSES.  (a)  Each member of

2-22     the committee is entitled to reimbursement for actual and necessary

2-23     expenses incurred in performing the member's duties as provided by

2-24     the General Appropriations Act.

2-25           (b)  A member of the committee who is a member of the

2-26     legislature is entitled to reimbursement from money appropriated to

2-27     the house in which the member serves.

 3-1           (c)  A public member is entitled to reimbursement from money

 3-2     appropriated to the Texas Legislative Council.

 3-3           SECTION 8.  STUDY.  (a)  The committee shall conduct an

 3-4     in-depth and comprehensive review of the state's tax structure and

 3-5     taxation laws, including:

 3-6                 (1)  what types of taxes are and should be imposed by

 3-7     this state and what types of taxes are and should be imposed by

 3-8     local governments of this state;

 3-9                 (2)  the extent to which the state and local

3-10     governments  rely on each type of tax;

3-11                 (3)  how the burden of state and local taxation is

3-12     allocated among taxpayers;

3-13                 (4)  the portion of the income that a member of each

3-14     income group pays in taxes; and

3-15                 (5)  the overall progressivity or regressivity of the

3-16     state's tax structure.

3-17           (b)  In conducting the study, the committee shall consider

3-18     the tax structures of other states and the District of Columbia.

3-19           (c)  The committee may coordinate its study with another

3-20     legislative study.

3-21           SECTION 9.  REPORT.  (a)  Not earlier than November 15, 1998,

3-22     or later than December 1, 1998, the committee shall issue a report

3-23     stating its findings and recommending any necessary or desirable

3-24     statutory or constitutional amendments.

3-25           (b)  The report must be approved by a majority of the

3-26     membership of the committee.

3-27           (c)  A member of the committee who dissents from a finding or

 4-1     recommendation of the committee may attach a separate statement to

 4-2     the report.

 4-3           SECTION 10.  EXPIRATION.  The committee is abolished on the

 4-4     convening of the 76th Legislature, Regular Session.

 4-5           SECTION 11.  REPEALER.  The Tax Code is repealed.

 4-6           SECTION 12.  EFFECTIVE DATE; TRANSITION.  (a)  Except as

 4-7     provided by Subsection (b) of this section, this Act takes effect

 4-8     immediately.

 4-9           (b)  Section 11 of this Act takes effect January 1, 2000, but

4-10     only if the constitutional amendment proposed by the 75th

4-11     Legislature, Regular Session, 1997, to prohibit the state or a

4-12     political subdivision of the state from imposing a tax is approved

4-13     by the voters.  If that amendment is not approved by the voters,

4-14     that section of this Act has no effect.

4-15           (c)  As soon as practicable on or after the effective date of

4-16     this Act, the lieutenant governor and speaker of the house of

4-17     representatives shall:

4-18                 (1)  make appointments to the committee as provided by

4-19     this Act; and

4-20                 (2)  designate the co-chairs of the committee.

4-21           SECTION 13.  The importance of this legislation and the

4-22     crowded condition of the calendars in both houses create an

4-23     emergency and an imperative public necessity that the

4-24     constitutional rule requiring bills to be read on three several

4-25     days in each house be suspended, and this rule is hereby suspended,

4-26     and that this Act take effect and be in force according to its

4-27     terms, and it is so enacted.