By Shapleigh                                           S.B. No. 859
         76R6975 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the comptroller's reports on the effect of certain tax
 1-3     provisions and on tax incidence.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 403.014(b), Government Code, is amended
 1-6     to read  as follows:
 1-7           (b)  The report must include:
 1-8                 (1)  an analysis of each special provision that reduces
 1-9     the amount of tax payable, to include an estimate of the loss of
1-10     revenue for a six-year period including the current fiscal biennium
1-11     and a citation of the statutory or legal authority for the
1-12     provision; and
1-13                 (2)  for provisions reducing revenue by more than one
1-14     percent of total revenue for a tax covered by this section:
1-15                       (A)[,]  the effect of each provision on the
1-16     distribution of the tax burden by income class and industry or
1-17     business class and by ethnic group, as appropriate; and
1-18                       (B)  the effect of each provision on total income
1-19     by income class and by ethnic group, as appropriate.
1-20           SECTION 2.  Section 403.0141(c), Government Code, is amended
1-21     to read as follows:
1-22           (c)  To the extent data is available, the incidence impact
1-23     analysis under Subsections (a) and (b):
1-24                 (1)  shall evaluate the tax burden:
 2-1                       (A)  on the overall income distribution, using a
 2-2     systemwide incidence measure or other appropriate measures of
 2-3     equality and inequality;  [and]
 2-4                       (B)  on income classes, including, at a minimum,
 2-5     quintiles of the income distribution, on renters and homeowners, on
 2-6     industry or business classes, as appropriate, and on various types
 2-7     of business organizations; and
 2-8                       (C)  on ethnic groups;
 2-9                 (2)  may evaluate the tax burden:
2-10                       (A)  by other appropriate taxpayer
2-11     characteristics, such as whether the taxpayer is a farmer, rancher,
2-12     retired elderly, or resident or nonresident of the state; and
2-13                       (B)  by distribution of impact on consumers,
2-14     labor, capital, and out-of-state persons and entities; [and]
2-15                 (3)  shall evaluate the effect of each tax on total
2-16     income by income group and by ethnic group; and
2-17                 (4)  shall:
2-18                       (A)  use the broadest measure of economic income
2-19     for which reliable data is available; and
2-20                       (B)  include a statement of the incidence
2-21     assumptions that were used in making the analysis.
2-22           SECTION 3.  This Act takes effect September 1, 1999.
2-23           SECTION 4.  The importance of this legislation and the
2-24     crowded condition of the calendars in both houses create an
2-25     emergency and an imperative public necessity that the
2-26     constitutional rule requiring bills to be read on three several
2-27     days in each house be suspended, and this rule is hereby suspended.