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A BILL TO BE ENTITLED
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AN ACT
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relating to a periodic review and expiration dates of state and |
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local tax preferences. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 3, Government Code, is amended |
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by adding Chapter 320A to read as follows: |
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CHAPTER 320A. REVIEW OF STATE AND LOCAL TAX PREFERENCES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 320A.001. DEFINITIONS. In this chapter: |
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(1) "Commission" means the select commission on |
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periodic tax preference review. |
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(2) "Tax preference" means an abatement, credit, |
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discount, exclusion, exemption, limitation on appraised value, |
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refund, special valuation, special accounting treatment, special |
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appraisal method or provision, special rate, or special method of |
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reporting authorized by state law or the state constitution that |
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relates to a state or local tax imposed in this state. |
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SUBCHAPTER B. SELECT COMMISSION ON PERIODIC TAX PREFERENCE REVIEW |
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Sec. 320A.051. COMPOSITION OF COMMISSION. The select |
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commission on periodic tax preference review is composed of: |
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(1) five members of the house of representatives, |
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appointed by the speaker of the house of representatives; |
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(2) five members of the senate, appointed by the |
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lieutenant governor; and |
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(3) the comptroller. |
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Sec. 320A.052. TERMS. The members of the commission serve |
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two-year terms that expire December 31 of each even-numbered year. |
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Sec. 320A.053. VACANCY. If a vacancy occurs, the |
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individual who originally appointed the vacating member or the |
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individual's successor shall appoint an individual to fill the |
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vacancy for the remainder of the unexpired term. |
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Sec. 320A.054. OFFICERS. (a) The speaker of the house of |
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representatives shall select one member of the commission appointed |
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under Section 320A.051(1) to serve as chair of the commission. |
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(b) The lieutenant governor shall select one member of the |
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commission appointed under Section 320A.051(2) to serve as vice |
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chair of the commission. |
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Sec. 320A.055. MEETINGS. The commission shall meet at the |
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call of the chair. |
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Sec. 320A.056. STAFF. On the commission's request, the |
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Legislative Budget Board, the Texas Legislative Council, the office |
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of the governor, the comptroller, the senate, and the house of |
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representatives shall provide staff to assist the commission in |
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performing the commission's duties. |
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Sec. 320A.057. COOPERATION BY OTHER STATE ENTITIES. The |
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commission may request the assistance of any state agency, |
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department, or office if the commission needs assistance to perform |
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the commission's duties. The agency, department, or office shall |
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provide the requested assistance. |
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Sec. 320A.058. EXPENSES. The operating expenses of the |
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commission shall be paid from available funds of the office of the |
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governor and the contingent expense funds of the senate and the |
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house of representatives, as agreed by those entities. The |
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commission members are entitled to reimbursement from those funds |
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for expenses incurred by the members in implementing this chapter. |
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SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION |
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Sec. 320A.101. DEVELOPMENT AND BIENNIAL MODIFICATION OF |
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STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The commission |
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shall: |
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(1) identify each state tax preference and each type |
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of local tax preference; |
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(2) develop a state and local tax preference review |
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schedule under which each identified tax preference is reviewed |
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once during each six-year period; and |
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(3) specifically identify on the schedule: |
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(A) each of the tax preferences the commission |
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must review for purposes of the next report due under Section |
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320A.153; |
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(B) any tax preference described by Paragraph (A) |
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that reduces by less than one-fourth of one percent the total |
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revenue derived from the tax to which the tax preference applies and |
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that the commission recommends for an abbreviated review; and |
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(C) the components of the review specified by |
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Section 320A.104 that the commission recommends are unnecessary |
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with respect to a tax preference recommended for an abbreviated |
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review. |
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(b) In developing the schedule, the commission shall |
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schedule the tax preferences for review in the order in which the |
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tax preferences were enacted or authorized, except that the |
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commission may schedule the initial review of a tax preference that |
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has an expiration date for any date the commission determines is |
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appropriate. |
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(c) The commission shall revise the schedule biennially |
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only to: |
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(1) add to the schedule a tax preference that was |
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enacted or authorized after the commission developed the most |
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recent schedule; |
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(2) delete from the schedule a tax preference that was |
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repealed after the commission developed the most recent schedule; |
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(3) update the review dates of the tax preferences for |
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which reviews were conducted after the commission developed the |
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most recent schedule; and |
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(4) update the tax preferences identified under |
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Subsection (a)(3). |
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Sec. 320A.102. PUBLIC COMMENT. The commission shall |
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provide a process by which the public may comment on the state and |
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local tax preference review schedule under Section 320A.101. The |
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commission shall consider those comments in developing or revising |
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the schedule. |
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Sec. 320A.103. COMPLETION OF SCHEDULE. The state and local |
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tax preference review schedule must be completed not later than |
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December 1 of each odd-numbered year. |
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Sec. 320A.104. PERIODIC REVIEW OF STATE AND LOCAL TAX |
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PREFERENCES. The commission shall review each state tax preference |
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and each type of local tax preference according to the state and |
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local tax preference review schedule developed under Section |
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320A.101. In reviewing a tax preference, the commission shall: |
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(1) determine the intended purpose of the tax |
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preference; and |
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(2) evaluate: |
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(A) whether the tax preference accomplishes its |
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intended purpose; |
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(B) whether the intended purpose of the tax |
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preference could be accomplished through a more cost-effective |
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method; and |
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(C) the effect of the tax preference on economic |
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development in this state. |
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SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES |
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Sec. 320A.151. PRELIMINARY REPORT. Not later than |
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September 1 of each even-numbered year, the commission shall file a |
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preliminary report on the reviews of tax preferences identified |
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under Section 320A.101(a)(3)(A) with the senate finance committee |
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and the house ways and means committee. The report must include |
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drafts of any proposed legislation needed to implement the |
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commission's recommendations. |
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Sec. 320A.152. REVIEW AND COMMENT. The senate finance |
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committee and the house ways and means committee may review the |
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preliminary report and proposed legislation and submit comments to |
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the commission. Comments must be submitted not later than October |
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15 of each even-numbered year. |
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Sec. 320A.153. FINAL REPORT. (a) The commission may modify |
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the preliminary report and proposed legislation in response to the |
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comments received under Section 320A.152. |
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(b) Not later than December 1 of each even-numbered year, |
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the commission shall provide to the governor and the presiding |
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officers of the senate finance committee and the house ways and |
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means committee a final report on the reviews of tax preferences |
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identified under Section 320A.101(a)(3)(A) and proposed |
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legislation necessary to implement the commission's |
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recommendations. |
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Sec. 320A.154. PUBLIC HEARING ON FINAL REPORT. The senate |
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finance committee and the house ways and means committee shall hold |
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a joint public hearing on the final report and proposed legislation |
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provided under Section 320A.153. |
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SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES |
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Sec. 320A.201. EXPIRATION; REQUIRED STATEMENT. (a) A tax |
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preference included in a final report expires on the second |
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anniversary of the date the final report is submitted under Section |
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320A.153(b) unless reauthorized by law. |
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(b) Each tax preference enacted or reauthorized by an act of |
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the legislature that becomes law on or after September 1, 2016, must |
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state the expiration date of the preference and provide that the |
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preference expires on that date. The expiration date may not be |
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later than the sixth anniversary of the effective date of the law |
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enacting or reauthorizing the tax preference. |
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(c) A tax preference to which Subsection (b) applies that |
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does not include the provision required by that subsection expires |
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on the sixth anniversary of the effective date of the law enacting |
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or reauthorizing the preference. |
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SECTION 2. The lieutenant governor and the speaker of the |
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house of representatives shall appoint the initial members of the |
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select commission on periodic tax preference review not later than |
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January 5, 2016. Notwithstanding Section 320A.052, Government |
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Code, as added by this Act, the terms of the initial members of the |
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commission expire December 31, 2016. |
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SECTION 3. Notwithstanding Section 320A.103, Government |
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Code, as added by this Act, the select commission on periodic tax |
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preference review shall submit: |
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(1) the initial state and local tax preference review |
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schedule required by that section not later than January 15, 2016; |
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(2) the initial preliminary report required by Section |
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320A.151, Government Code, as added by this Act, not later than |
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September 1, 2016; and |
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(3) the initial final report required by Section |
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320A.153, Government Code, as added by this Act, not later than |
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December 1, 2016. |
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SECTION 4. This Act takes effect January 1, 2016, but only |
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if the constitutional amendment proposed by the 84th Legislature, |
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Regular Session, 2015, requiring the legislature to provide for a |
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periodic review of state and local tax preferences and providing |
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for the expiration of certain tax preferences six years after the |
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effective dates of the laws enacting or reauthorizing the |
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preferences, or at another time prescribed by the legislature, |
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unless reauthorized by law, is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |