HBA-TYH C.S.H.J.R. 12 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.J.R. 12
By: Culberson
State Affairs
5/10/1999
Committee Report (Substituted)

BACKGROUND AND PURPOSE 

Currently, state law requires a simple majority of votes in each chamber of
the legislature to pass a new tax, increase existing tax rates, or extend
the application of a tax.  As proposed, C.S.H.J.R. 12 requires the
submission to the voters of a constitutional amendment requiring a
two-thirds vote of each chamber of the legislature for the enactment of a
law that raises, creates, or extends the application of a state tax. 

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 Article VIII of the Texas Constitution by adding Section
25, as follows: 

Sec. 25.  (a)  Prohibits the legislature from enacting a law that provides
for a net increase in state revenue through the imposition of a state tax,
the increase of the rate of a state tax, or the extension of the
application of a state tax to a new class of persons, property,
transactions, or other items unless the law is approved by a vote of
two-thirds of the membership of each house.  
 
(b)  Provides that this section does not apply to a law for which the
comptroller has determined that, at the time the legislature votes, will
result in a net loss in state revenue or in no net change in state revenue. 

(c)  Provides that this section does not apply to the repeal or amendment
of an exemption or other exception expressly provided by statute on
September 1, 1999.  
 
(d)  Provides that this section does not apply to the imposition, increase,
or extension of a fee if the revenue from the fee is required to be used
for purposes related to the activity for which the fee is imposed.  

SECTION 2.  Requires this proposed constitutional amendment be submitted to
the voters at an election to be held November 2, 1999.  Sets forth the
required language for the ballot. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original bill in proposed Section 25(a),
Article VIII, Texas Constitution, by prohibiting the legislature from
enacting a law that provides for a net increase in state revenue through
the imposition of, the increase of the rate of, or the extension of the
application of a state tax unless the law is approved by a vote of
two-thirds of the membership of each house.  The original bill did not make
reference to the enactment of a law it only prohibited the imposition of,
the increase in rate of, and the extension of the application of a sate
tax. 

The substitute modifies the original bill in proposed Section 25, Article
VIII, Texas Constitution, by adding a new Subsection (b) to provide that
this section does not apply to a law for which the comptroller has
determined that, at the time the legislature votes, will result in a net
loss in state revenue or in no net change in state revenue, and by
redesignating the subsequent subsections. 

The substitute makes conforming changes in the proposed ballot language.