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A BILL TO BE ENTITLED
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AN ACT
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relating to the preparation by the Legislative Budget Board of a |
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dynamic fiscal impact statement for certain bills and joint |
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resolutions affecting taxes and fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 314, Government Code, is amended by |
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adding Section 314.005 to read as follows: |
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Sec. 314.005. DYNAMIC FISCAL IMPACT STATEMENT ON TAX OR FEE |
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MEASURE. (a) The board shall prepare a dynamic fiscal impact |
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statement for each bill or joint resolution: |
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(1) that raises or lowers the rate or amount of a tax |
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or fee or proposes an amendment to the Texas Constitution that would |
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raise or lower the rate or amount of a tax or fee; and |
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(2) for which a fiscal note is prepared indicating a |
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positive or negative impact on revenue of at least $100 million |
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during a period not to exceed five years. |
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(b) The dynamic fiscal impact statement must, based on |
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dynamic scoring principles, project for the five-year period |
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beginning on the proposed effective date of the change in the rate |
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or amount of the tax or fee the estimated fiscal and economic |
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impacts of raising or lowering the rate or amount of the tax or fee |
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as proposed, including the impact on: |
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(1) tax or fee receipts; and |
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(2) the costs of the specific program, if any, that the |
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tax or fee is designed to directly support. |
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(c) In this section, "dynamic scoring principles" means a |
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method of estimating the pace of economic growth or the change in |
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the aggregate level of economic output and incomes, in response to a |
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change in the rate or amount of a tax or fee, that takes into |
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consideration factors including: |
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(1) the direct impact on tax or fee receipts and, if |
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the tax or fee is designed to directly support a specific program, |
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on program costs; |
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(2) the effects on incentives to work, save, invest, |
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and conduct economic affairs; |
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(3) the resulting change in the overall level of |
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economic activity; |
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(4) the impact of the resulting higher or lower level |
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of economic activity on tax or fee receipts and, if the tax or fee is |
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designed to directly support a specific program, on program costs; |
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and |
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(5) a calculation of the net impact of the legislation |
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proposing the change on the unified budget. |
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(d) The dynamic fiscal impact statement must be attached to |
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the bill or resolution immediately following the fiscal note |
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attached under Section 314.003. |
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SECTION 2. Section 314.004(c), Government Code, is amended |
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to read as follows: |
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(c) The impact statement must be attached to the bill or |
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resolution immediately following: |
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(1) the fiscal note attached under Section 314.003; or |
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(2) if a dynamic fiscal impact statement is prepared |
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under Section 314.005, the dynamic fiscal impact statement. |
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SECTION 3. This Act takes effect September 1, 2007. |