HBA-RBT H.B. 3610 76(R) BILL ANALYSIS
Office of House Bill AnalysisH.B. 3610
By: Burnam
Ways & Means
4/16/1999
Introduced
BACKGROUND AND PURPOSE
A loophole in current state law allows the largest polluters in Texas to
pay the lowest fees per ton of pollution. The Texas Clean Air Act sets a
4,000 ton maximum for each pollutant in collecting fees. With the cap in
place, the state is losing much needed revenue to fund air monitoring and
other important duties carried out by the Texas Natural Resource
Conservation Commission (TNRCC). While EPA has described the existing
network of ozone monitors as "woefully inadequate," TNRCC has admitted
that the agency is unable to provide needed air quality monitors because of
a lack of funds.
H.B. 3610 helps the state address many of its policy objectives, including
avoiding federal sanctions for non-compliance with federal clean air
standards which may be placed on Dallas-Ft. Worth in 2005 and Houston in
2007 unless serious steps are taken to reduce and better model and monitor
air pollution in those areas. These sanctions include the loss of federal
highway funds and limits on permitting new facilities. This legislation
also provides an economic incentive to encourage reliance on clean,
Texas-based energy resources such as natural gas instead of western-based
coal sources.
RULEMAKING AUTHORITY
It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Title 2, Tax Code, by adding Subtitle L, as follows:
SUBTITLE L. POLLUTION TAXES
CHAPTER 251. EMISSIONS TAX
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 251.001. DEFINITIONS. Defines "emit" and "regulated pollutant."
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 251.021. TAX IMPOSED. Provides that a tax is imposed on each person
who owns or controls a facility, plant, or piece of equipment in this state
that emits at least 1,000 tons of one or more regulated pollutants in a
state fiscal year and is required to obtain a permit under Chapter 382
(Clean Air Act), Health and Safety Code. Provides that the tax imposed by
this chapter is in addition to any emissions fee, operating permit fee,
inspection fee, or other fee imposed by the Texas Natural Resource
Conservation Commission, any other state agency, or the federal government.
Sec. 251.022. RATE. Provides that the rate of the tax imposed by this
chapter is $100 for each ton of regulated pollutants emitted during a state
fiscal year from a facility, plant, or piece of equipment described by
Section 251.021, except that during the fiscal year that begins September
1, 1999, and ends August 31, 2000, it is $80, and during the fiscal year
that begins September 1, 2000, and ends August 31, 2001, it is $90.
Sec. 251.023. FORMS AND INFORMATION. Requires the comptroller to provide
forms and information to each person required to pay the tax imposed by
this chapter to assist the person in computing and paying the tax.
Sec. 251.024. PAYMENT OF TAX. Requires each person subject to the tax
imposed by this chapter to send to the comptroller the amount of tax due
under this chapter for the preceding state fiscal year by January 1 of each
year.
Sec. 251.025. REPORTS. Requires each person subject to the tax imposed
under this chapter to file with the comptroller a report by January 1 of
each year stating the amount of emissions of regulated pollutants during
the preceding state fiscal year from each facility, plant, and piece of
equipment described by Section 251.021 and any other information required
by the comptroller. Provides that the comptroller may require a person to
file an information report with the comptroller that contains any
information the comptroller requires to determine whether a person is
eligible for an exemption based on the emission of less than 1,000 tons of
regulated pollutants.
Sec. 251.026. RECORDS. Requires a person subject to the tax imposed by
this chapter to keep a complete record of the amount of emissions of
regulated pollutants during the preceding year and any other information
required by the comptroller.
Sec. 251.027. DISPUTE AS TO AMOUNT OF EMISSIONS. Authorizes the
comptroller to request that the Texas Natural Resources Conservation
Commission determine the actual level of emissions if there is a dispute as
to the amount of emissions of regulated pollutants.
SUBCHAPTER C. PENALTIES AND OFFENSES
Sec. 251.051. INTEREST ON DELINQUENT TAX. Establishes the interest for
delinquent tax.
Sec. 251.052. PENALTY. Provides that a person who fails to file a report
as required or does not pay the tax when due forfeits a penalty of 12
percent of the amount of delinquent tax, and an additional 12 percent is
forfeited if the report is not filed or the tax is not paid within 30 days.
Sec. 251.053. CRIMINAL PENALTY. Provides that a violation of this
chapter is a Class C misdemeanor.
SUBCHAPTER D. ALLOCATION AND USE
Sec. 251.071. ALLOCATION OF TAX REVENUE. Requires all of the revenue
from the tax imposed by this chapter to be deposited to the credit of the
available school fund.
Sec. 251.072. USE OF TAX REVENUE. Requires the available school fund
money received by a school district that is derived from the tax imposed by
this chapter to be used for the replacement of property tax revenue lost as
a result of the receipt of that money. Prohibits the State Board of
Education from setting aside for the state textbook fund money in the
available school fund that is derived from the tax imposed by this chapter.
SECTION 2. Amends Section 43.014, Education Code, by adding Subsection
(e), to require the comptroller, by August 1 of each year, to provide to
each school district a report that includes the total amount the district
received during the previous tax year from the available school fund that
was derived from the taxes imposed by Chapter 251, Tax Code, and an
estimate of the amount the district should receive during the district's
current tax year.
SECTION 3. Amends Section 26.012, Tax Code, by adding Subdivision (18), to
define "additional available school fund revenue."
SECTION 4. Amends Section 26.04, Tax Code, to require the designated
officer or employee of a school district to include in the required notice,
the amount of additional available school fund revenue anticipated by the
school district in computations under Section 26.046.
SECTION 5. Amends Chapter 26, Tax Code, by adding Section 26.046, as
follows:
Sec. 26.046. EFFECTIVE TAX RATE IN SCHOOL DISTRICT RECEIVING ADDITIONAL
AVAILABLE SCHOOL FUND REVENUE. Requires, in the first tax year in which a
school district recieves additional available school fund revenue for the
entire tax year, the officer or employee designated to make the
calculations provided by Section 26.04 to subtract from the school
district's rollback and effective tax rates the amount that, if applied to
the total taxable value submitted to the governing body, would impose an
amount equal to the amount of additional available school fund revenue the
district will receive during that tax year. Provides that in a tax year to
which this section applies, a reference to the district's effective or
rollback tax rate in specified sections refers to that rate as an adjusted
under this section.
SECTION 6. Amends Section 31.01, Tax Code, by adding Subsection (k), to
require, for a school district that receives available school fund revenue
that is derived from the taxes imposed by Chapter 251, the tax bill to
indicate the amount of additional ad valorem taxes, is any, that would have
been imposed on the property if additional ad valorem taxes had been
imposed in an amount equal to the amount of revenue estimated to be
received from that available school fund revenue for the year determined as
provided by Section 26.046.
SECTION 7. Amends Section 201.052(a), Tax Code, to set the rate of the tax
imposed by this chapter at six, rather than 7.5, percent.
SECTION 8. Effective date: January 1, 2001.
Effective date of Chapter 251, Tax Code, as added by this Act:
September 1, 2000.
Makes application of Chapter 251 to regulated
pollutants emitted during the
preceding fiscal year.
Effective date of Section 201.052, Tax Code: September 1, 2000.
Makes application of this Act prospective.
SECTION 9. Emergency clause.