HBA-AMW H.J.R. 112 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 112
By: Moreno, Joe E.
Ways & Means
4/19/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, New York, Miami, and New Orleans are the only coffee exchange
ports in the United States. The Greater Houston Coffee Association is
attempting to make Harris County an exchange port for coffee on the New
York Board of Trade.  Current state law places an ad valorem tax on coffee
stored in Texas, but the New York Board of Trade will not consider the
Greater Houston Coffee Association's application unless coffee and cocoa
are exempted from ad valorem taxes.  Miami has experienced substantial
increases in coffee storage since it was designated as an exchange port.
Harris County, with its proximity to Mexico and other coffee producing
nations, may also experience a similar growth in coffee storage.
Designation as a coffee exchange port would increase coffee imports to
Texas and may spur development and create additional jobs in coffee-related
industries.  As proposed, House Joint Resolution 112 requires the
submission to the voters of a constitutional amendment authorizing the
legislature to exempt green coffee and raw cocoa held in Harris County from
ad valorem taxes. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this resolution
does not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Joint Resolution 112 amends the Texas Constitution to authorize the
legislature by general law to exempt from ad valorem taxation raw cocoa and
green coffee that is held in Harris County and to authorize the legislature
to impose additional requirements for qualification of this exemption. 

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held November 6, 2001.