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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of certain goods and services by a political |
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subdivision. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.009 to read as follows: |
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Sec. 140.009. SALE OF GOODS AND SERVICES ORDINARILY SOLD OR |
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PROVIDED BY PRIVATE BUSINESS. (a) A county, municipality, or other |
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political subdivision that sells a good or provides a service |
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ordinarily offered by a private business shall provide public |
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notice stating: |
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(1) the political subdivision's operating costs |
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associated with selling the good or providing the service, |
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including: |
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(A) the cost and depreciation of equipment; |
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(B) personnel costs; |
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(C) transportation costs; |
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(D) the cost of acquiring raw materials; |
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(E) manufacturing costs; |
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(F) toll road costs; |
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(G) utility costs; |
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(H) facility rental costs; |
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(I) internal and external audit costs; |
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(J) advertising and marketing costs; |
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(K) distribution costs; |
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(L) preventative maintenance costs; |
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(M) repair costs; |
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(N) cost of safety training; |
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(O) clothing and uniform costs; |
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(P) freight costs; |
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(Q) bad debt costs; |
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(R) billing costs; |
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(S) information technology support costs; |
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(T) administrative cost of invoices and payroll; |
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(U) overhead and production costs; |
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(V) cost of providing employee benefits; |
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(W) fuel costs; and |
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(X) costs necessary to manage risk, including |
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legal fees, insurance costs, and expenses related to workers' |
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compensation; |
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(2) benefits received by the political subdivision |
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resulting in lower operating costs for the political subdivision, |
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including any tax incentives or exemptions not available to a |
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private business, such as exemptions from a: |
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(A) fuel tax; |
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(B) excise tax; |
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(C) franchise and margins tax; |
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(D) sales tax on non-manufacturing equipment; or |
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(E) real and personal property tax; and |
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(3) an estimate of the profits to be realized from the |
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sale of goods or provision of services, which must be used to |
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provide the tax cut prescribed by Subsection (c). |
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(b) The chief financial officer of the political |
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subdivision shall certify that generally accepted accounting |
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principals were used in determining the information included in the |
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notice required under Subsection (a). |
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(c) In setting the annual budget, a political subdivision |
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shall specifically consider any profits realized from selling a |
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good or providing a service ordinarily offered by a private |
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business and shall lower taxes as necessary to return to the |
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subdivision's taxpayers the amount of those profits. |
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SECTION 2. This Act takes effect September 1, 2009. |