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.