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.