The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
H. B. No. 24 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
| |
Cosponsors:
Representatives Adams, J., Hood, Scherer, Stebelton, Young
A BILL
To enact section 5703.95 of the Revised Code to
create a Tax Expenditure Review Committee for the
purpose of periodically reviewing existing and
proposed tax expenditures.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5703.95 of the Revised Code be
enacted to read as follows:
Sec. 5703.95. (A) As used in this section:
(1) "Tax expenditure" has the same meaning as in section
5703.48 of the Revised Code.
(2) "Tax expenditure bill" means a bill introduced in the
house of representatives or the senate that proposes to enact or
modify one or more tax expenditures.
(B) There is hereby created the tax expenditure review
committee, consisting of nine members, composed of the following:
(1) The chair and ranking minority member of the house of
representatives committee that deals primarily with tax
legislation;
(2) The chair and ranking minority member of the senate
committee that deals primarily with tax legislation;
(3) Two members of the house of representatives appointed by
the speaker of the house of representatives;
(4) Two members of the senate appointed by the president of
the senate;
(5) One member appointed by the governor.
The speaker of the house of representatives, the president of
the senate, and the governor shall make initial appointments to
the committee not later than thirty days following the effective
date of the enactment of this section. Thereafter, the terms of
the office shall be the same as the term of each general assembly.
Members may be reappointed, provided the member continues to meet
all other eligibility requirements. Vacancies shall be filled in
the manner provided for original appointments. Any member
appointed to fill a vacancy before the expiration of the term for
which the predecessor was appointed shall hold office as a member
for the remainder of that term. Appointed members of the committee
serve at the pleasure of the member's appointing authority and may
be removed only by the appointing authority.
(C) The tax expenditure review committee shall hold its first
meeting within ninety days after the effective date of the
enactment of this section. At the first meeting, the members shall
elect a chairperson. Thereafter, the committee shall meet at least
once during the first year of each fiscal biennium to review
existing tax expenditures pursuant to division (D) of this
section. The committee shall also meet at the call of the
chairperson to review proposed tax expenditures pursuant to
division (E) of this section. The committee is a public body for
the purposes of section 121.22 of the Revised Code.
A vacancy on the committee does not impair the right of the
other members to exercise all the functions of the committee. The
presence of a majority of the members of the committee constitutes
a quorum for the conduct of business of the committee. The
concurrence of at least a majority of the members of the committee
is necessary for any action to be taken by the committee.
The committee shall permit any person to present evidence or
testimony related to tax expenditures at a meeting of the
committee. Upon the committee's request, the department of
taxation, department of development, office of budget and
management, or other state agency shall provide any information in
its possession that the committee requires to perform its duties.
(D) The committee shall establish a schedule for review for
each tax expenditure so that each expenditure is reviewed at least
once every eight years. The schedule may provide for the review of
each tax expenditure in the order the expenditures were enacted or
modified, beginning with the least recently enacted or modified
tax expenditure. Alternatively, the review schedule may group tax
expenditures by the individuals or industries benefiting from the
expenditures, the objectives of each expenditure, or the policy
rationale of each expenditure. In its review, the committee shall
make recommendations as to whether each tax expenditure should be
continued without modification, modified, scheduled for further
review at a future date to consider repealing the expenditure, or
repealed outright. For each expenditure reviewed, the committee
may recommend accountability standards for the future review of
the expenditure. The committee may consider, when reviewing a tax
expenditure, any of the relevant factors in division (F) of this
section.
(E) Any tax expenditure bill shall include a statement
explaining the objectives of the tax expenditure or its
modification and the sponsor's intent in proposing the tax
expenditure or its modification. Before a tax expenditure bill may
be scheduled for a vote in any legislative committee, the bill
must be reviewed by the tax expenditure review committee. The
committee shall commence its review following the introduction of
the tax expenditure bill in the chamber in which the bill
originates. During the committee's review, the committee may
consider any of the relevant factors in division (F) of this
section. The committee shall issue copies of its review to each
member of the legislative committee to which the bill has been
referred upon the conclusion of the committee's review.
(F) In conducting reviews pursuant to division (D) or (E) of
this section, the committee may consider the following factors:
(1) The number and classes of persons, organizations,
businesses, or types of industries that would receive the direct
benefit or consequences of the tax expenditure;
(2) The fiscal impact of the tax expenditure on state and
local taxing authorities, including, in the case of a review under
division (D) of this section, any past fiscal effects and expected
future fiscal impacts of the tax expenditure in the following
eight-year period;
(3) Public policy objectives that might support the tax
expenditure. In researching such objectives, the committee may
consider the expenditure's legislative history, the tax
expenditure's sponsor's intent in proposing the tax expenditure,
the extent to which the tax expenditure encourages or would
encourage business growth or relocation into the state, promotes
or would promote growth or retention of high-wage jobs in the
state, or aids or would aid community stabilization.
(4) Whether the tax expenditure successfully accomplishes any
of the objectives identified in division (F)(3) of this section;
(5) Whether the objectives identified in division (F)(3) of
this section would or could have been accomplished successfully in
the absence of the tax expenditure or with less cost to the state
or local governments;
(6) Whether the objectives identified in division (F)(3) of
this section could have been accomplished successfully through a
program that requires legislative appropriations for funding;
(7) The extent to which the tax expenditure may provide
unintended benefits to an individual, organization, or industry
other than those the legislature or sponsor intended or creates an
unfair competitive advantage for its recipient with respect to
other businesses in the state;
(8) The extent to which terminating the tax expenditure may
have negative effects on taxpayers that currently benefit from the
tax expenditure;
(9) The extent to which the repeal of the tax expenditure may
have negative effects on the state's employment and economy;
(10) The feasibility of modifying the tax expenditure to
provide for adjustment or recapture of the proceeds of the tax
expenditure if the objectives of the tax expenditure are not
fulfilled by the recipient of the tax expenditure.
(G) The committee shall prepare a report of its
determinations under division (D) of this section and, not later
than the thirtieth day of June of each even-numbered year, provide
a copy of the report to the governor, the speaker of the house of
representatives, the president of the senate, the minority leader
of the house of representatives, and the minority leader of the
senate. The first report shall be submitted either in the year of
the effective date of this act or in the first even-numbered year
thereafter.
|
|