1-1     By:  Shapleigh                                         S.B. No. 859
 1-2           (In the Senate - Filed March 3, 1999; March 8, 1999, read
 1-3     first time and referred to Committee on Finance; April 29, 1999,
 1-4     reported adversely, with favorable Committee Substitute by the
 1-5     following vote:  Yeas 8, Nays 1; April 29, 1999, sent to printer.)
 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 859               By:  Barrientos
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the reports of the comptroller on the effect of certain
1-10     tax provisions and on tax incidence.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subsection (b), Section 403.014, Government Code,
1-13     is amended to read  as follows:
1-14           (b)  The report must include:
1-15                 (1)  an analysis of each special provision that reduces
1-16     the amount of tax payable, to include an estimate of the loss of
1-17     revenue for a six-year period including the current fiscal biennium
1-18     and a citation of the statutory or legal authority for the
1-19     provision; and
1-20                 (2)  for provisions reducing revenue by more than one
1-21     percent of total revenue for a tax covered by this section:
1-22                       (A)[,]  the effect of each provision on the
1-23     distribution of the tax burden by income class and industry or
1-24     business class, as appropriate; and
1-25                       (B)  the effect of each provision on total income
1-26     by income class.
1-27           SECTION 2.  Subsection (c), Section 403.0141, Government
1-28     Code, is amended to read as follows:
1-29           (c)  To the extent data is available, the incidence impact
1-30     analysis under Subsections (a) and (b):
1-31                 (1)  shall evaluate the tax burden:
1-32                       (A)  on the overall income distribution, using a
1-33     systemwide incidence measure or other appropriate measures of
1-34     equality and inequality; and
1-35                       (B)  on income classes, including, at a minimum,
1-36     quintiles of the income distribution, on renters and homeowners, on
1-37     industry or business classes, as appropriate, and on various types
1-38     of business organizations;
1-39                 (2)  may evaluate the tax burden:
1-40                       (A)  by other appropriate taxpayer
1-41     characteristics, such as whether the taxpayer is a farmer, rancher,
1-42     retired elderly, or resident or nonresident of the state; and
1-43                       (B)  by distribution of impact on consumers,
1-44     labor, capital, and out-of-state persons and entities; [and]
1-45                 (3)  shall evaluate the effect of each tax on total
1-46     income by income group; and
1-47                 (4)  shall:
1-48                       (A)  use the broadest measure of economic income
1-49     for which reliable data is available; and
1-50                       (B)  include a statement of the incidence
1-51     assumptions that were used in making the analysis.
1-52           SECTION 3.  This Act takes effect September 1, 1999.
1-53           SECTION 4.  The importance of this legislation and the
1-54     crowded condition of the calendars in both houses create an
1-55     emergency and an imperative public necessity that the
1-56     constitutional rule requiring bills to be read on three several
1-57     days in each house be suspended, and this rule is hereby suspended.
1-58                                  * * * * *