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.