By: Paxton H.B. No. 2786

A BILL TO BE ENTITLED

AN ACT

relating to the preparation of fiscal notes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Amend Chapter 314.004, Government Code as follows:

314.004. [DYNAMIC FISCAL IMPACT STATEMENT. (a) The board shall prepare for each bill or resolution that raises or lowers a tax or fee a dynamic fiscal impact statement.

(b) The dynamic fiscal impact statement must project cost estimates based on dynamic scoring principles for a five-year period that begins on the effective date of the bill or resolution.

(c) "Dynamic scoring principles" means a measurement of the pace of economic growth or estimating the change in the aggregate level of economic output and incomes using factors including:

(1) the direct impacts on program costs and tax receipts;

(2) the effects on incentives to work, save, invest and conduct economic affairs;

(3) the resulting change in the overall level of economic activity;

(4) the impact of the higher or lower level of economic activity on program costs and tax receipts; and

(5) a calculation of the net impact of the legislation on the unified budget.

(d) The dynamic fiscal impact statement must be attached to the bill or resolution immediately following the fiscal note attached under Section 314.003.

314.005.] EQUALIZED EDUCATION FUNDING IMPACT STATEMENT. (a) The board shall prepare for each bill or resolution that affects public education an equalized education funding impact statement.

(b) The [equalized education funding] impact statement must evaluate the effect of the bill or resolution on all state equalized funding requirements and policies.

(c) The [equalized education funding] impact statement must be attached to the bill or resolution immediately following [the latter of:

(1) the dynamic fiscal impact statement attached under Section 314.004, or

(2)] the fiscal note attached under Section 314.003.

SECTION 2. This Act takes effect September 1, 2007.